Join High Dividend Opportunity Today! Sign Up For Premium Today! This video's transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed. Daniel Snyder: Hey, everyone. Daniel Snyder here from Seeking Alpha. Thank you so much for taking the time to join me for this webinar. Today, we are exploring for yield across the market, and none other than Will Barton from Hig ...

Financial Data and Key Metrics Changes - The company reported adjusted net investment income of $0.56 per share and adjusted net income of $0.64 per share for Q2 2025, with annualized returns on equity of 13.1% and 15.1% respectively [7] - Total investments decreased to $3.3 billion from $3.4 billion in the prior quarter due to net repayment activity [27] - The net asset value (NAV) per share increased to $17.17, up from $17.04 as of March 31 [12] Business Line Data and Key Metrics Changes - The company provided total commitments of $289 million and total fundings of $209 million across 13 new investments and four upsizes in Q2 [18] - Approximately 30% of commitments were sourced outside the sponsored channel, with the remaining 70% from traditional sponsor-backed finance [18] Market Data and Key Metrics Changes - The M&A market saw a 31% decline in loan volume in Q2 compared to Q1, marking the lowest levels since 2023 [13] - The company noted a significant reduction in exposure to older pre-2022 vintages, with only 29% of the portfolio by cost compared to 59% for public BDC sector averages [23] Company Strategy and Development Direction - The company anticipates a shift in focus from credit quality to dividend coverage as portfolio yields decline [10] - The management emphasized the importance of sourcing differentiated investment opportunities to maintain robust dividend coverage, which exceeded the base dividend by 22% in Q2 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism that credit issues are predominantly behind the company, with expectations of improved non-accruals and a focus on dividend coverage moving forward [10][68] - The company highlighted the need for a longer runway for portfolio company earnings to grow in the current economic environment [14] Other Important Information - The board approved a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.05 per share related to Q2 earnings [12] - The company maintained a strong balance sheet with approximately $1.1 billion of unfunded revolver capacity [28] Q&A Session Summary Question: How does the company manage portfolio diversification related to risk? - The CEO emphasized the importance of idiosyncratic underwriting and the company's strong track record in risk management [43][44] Question: What are the attractive investment themes currently? - The CEO mentioned a preference for off-the-run, non-sponsor investments, such as speculative pharma and asset-based lending, which tend to offer better returns [46][48] Question: How does the company view the impact of non-traded BDCs on loan spreads? - The CEO expressed concerns about the potential for lower ROEs in the sector due to increased competition and complacency among investors [53][60] Question: What is the outlook for non-sponsored transactions? - The company is generally positive about second-half activity, with a robust pipeline across both sponsor and non-sponsor activities [90] Question: What changes have been observed in terms and documentation for new investments? - The company has not seen changes in documentation standards or covenant packages over the last few quarters [92]