Financial Data and Key Metrics Changes - For Q2 2025, the company generated GAAP net investment income of $0.34 per share and core net investment income of $0.35 per share, which excludes estimated excise taxes [6] - Net asset value per share decreased by $0.04 during the quarter due to a reduction in spillover income [6] - The investment portfolio at fair value was $985.9 million, slightly down from $991 million in Q1 2025 [7] Business Line Data and Key Metrics Changes - The company invested $15.4 million in three new portfolio companies during the quarter and had $7.4 million in other investment activity at par [7] - Two full repayments totaled $21.7 million, with an additional $10.4 million of other repayments, all at par [7] - 98% of loans were secured, and 91% were priced at floating rates [8] Market Data and Key Metrics Changes - The company ended the quarter with loans to five portfolio companies on nonaccrual, comprising 6.8% of total cost and 3.8% of fair value, representing a decrease from the prior quarter [9] - The average loan per company was $9.2 million, with the largest overall investment at $21.2 million [8] Company Strategy and Development Direction - The company expects to see more equity realizations in the second half of the year, estimating $12 million in proceeds and approximately $10 million in gains [11] - The company plans to continue funding qualifying portfolio company investments through new leverage under the SBIC III license [9] Management's Comments on Operating Environment and Future Outlook - Management noted a meaningful pickup in investment activity and M&A activity, indicating a busy second half of the year [10] - The company anticipates being able to grow the portfolio despite expected repayments, with a robust pipeline of opportunities [30][41] Other Important Information - The company has paid $306 million in dividends since its IPO, representing $17.35 per share to an investor in the IPO [6] - The company has received a green light letter from the Small Business Administration for SBIC III, which is an important step in the process [9] Q&A Session Summary Question: How much spillover is there left over and what's the strategy in terms of increasing leverage to cover the dividend? - The company has just under $45 million of spillover to work off through the dividend, expecting it to be about $38 million next year [17] - Current leverage is about 0.9 on a regulatory test and total leverage for GAAP is about 1.7 times, with a target leverage of about one to one [19] Question: How is the pipeline looking for the remainder of the year and where are the opportunities? - The company has seen a significant increase in M&A activity and expects to continue growing the portfolio with a robust pipeline of actionable opportunities [28][30] Question: Any insight into potential resolutions or progress with the current non-accrual list? - The company is working through the non-accruals, all backed by private equity firms, and had no new non-accruals this quarter [31] Question: What is the level of confidence on realizing potential equity realizations this year? - The company has a high likelihood of realizing the forecasted equity realizations as the businesses are actively marketed and well-performing [36] Question: How much of the portfolio rated three or lower is the company seriously nervous about? - The company expects to receive all principal and associated income from the portfolio rated three or lower, indicating a positive outlook [39]