Financial Data and Key Metrics Changes - Total investment income for Q3 2025 was $37.3 million, a decrease of $2.7 million from Q2 2025, primarily due to a decline in interest income and fee income [10] - Net investment income (NII) for Q3 was $0.49 per share, down from $0.53 per share in Q2 2025 [11] - Adjusted NII was $0.50 per share in Q3, compared to $0.57 per share in Q2 2025 [12] - Total expenses for Q3 were $19.9 million, a decrease of $1.5 million from Q2 2025 [11] - Net asset value grew 2.7% to $711 million at quarter end, compared to $692.3 million as of June 30, 2025 [6] Business Line Data and Key Metrics Changes - Originations for Q3 included $69.7 million in first-lien securities and $4.7 million in equity investments, totaling $74.5 million [7] - The portfolio grew to $1.2 billion on a fair value basis as of September 30, 2025, equal to 102% of cost [7] - First-lien investments comprised 82% of the debt portfolio, while equity investments stood at $143.4 million, or 12% of the total portfolio [8] Market Data and Key Metrics Changes - M&A activity increased in Q3 compared to the first half of the year, with expectations for continued deal flow into Q4 [5] - The weighted average interest rate on outstanding debt was 4.9% as of September 30, 2025 [12] Company Strategy and Development Direction - The company focuses on investing in high-quality, lower-middle-market companies with resilient business models that generate recurring revenue [4] - The strategy includes supporting portfolio companies with growth capital and leveraging long-standing relationships with deal sponsors [5] - The company aims to preserve capital and generate attractive risk-adjusted returns for shareholders [9] Management's Comments on Operating Environment and Future Outlook - Management noted that market activity is expected to be relatively decent in Q4 2025, with strong expectations for originations [8] - The company has limited exposure to tariff impacts from China, with only 5% to 6% of the total portfolio affected [24] - There are no significant concerns regarding the impact of the government shutdown on portfolio companies [26] Other Important Information - Total dividends paid for Q3 amounted to $0.57 per share, including a supplemental dividend of $0.14 per share [5] - The board declared a total dividend of $0.50 per share for Q4, payable on December 29, 2025 [6] Q&A Session Summary Question: Market activity outlook for Q4 - Management indicated that deal flow has picked up and is expected to remain strong in Q4, with several add-on investments already made [17][18] Question: Deal terms and pricing - Management noted that pricing in the lower middle market has stabilized, with no significant changes in deal structures [19][20] Question: Exposure to tariff policy related to China - Management confirmed limited exposure to tariffs, with only two companies significantly affected, both performing well [24][25] Question: Impact of government shutdown - Management stated that exposure to government contracts is limited and not currently impacting portfolio companies [26][27]

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