Financial Data and Key Metrics Changes - Fundings for the last quarter totaled $126.6 million, with net originations at $103.1 million, while exits and prepayments declined to $23.5 million [3][4] - Interest income rose 14% to $23.8 million, driven by a 16.2% increase in average earning assets, although the weighted average portfolio yield declined by 30 basis points to 12.5% [3][8] - Net investment income for the period was $11.4 million, with net realized losses of $6.3 million related to the exit of FES Resources [4][8] - Total assets increased to $908 million, with net assets rising to $482 million, and NAV per share increased from $21.25 to $21.34 [9][10] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with first lien debt rising to 72% of the portfolio's fair value [4] - PIC income increased to $2 million, representing 8.4% of interest income, attributed to two recent investments [5] Market Data and Key Metrics Changes - The company experienced a significant increase in fair value of the investment portfolio by $63 million for the fiscal year, despite challenges faced [5][6] - The company maintained a conservative leverage position with net debt at 82.5% of NAV [7] Company Strategy and Development Direction - The company continues to focus on investing in growth-oriented lower middle market businesses, leveraging relationships with private equity sponsors [12][13] - The strategy includes providing attractive financing solutions to the private equity market, with expectations of continued growth in the lower middle market [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the lower middle market's resilience against spread erosion and leverage escalation [6] - The company is well-positioned for future growth, with a healthy pipeline of investment opportunities and a strong balance sheet [12] Other Important Information - Monthly distributions for November and December will be $0.15 per common share, with an annual run rate of $1.80 per share [10][11] - The company has refinanced its debt, enhancing financial flexibility and maturity profile [7][12] Q&A Session Summary Question: Update on the pipeline and mix of new versus add-on opportunities - The company is tracking approximately $100 million of potential volume, with a mix of new and follow-on acquisition opportunities [16][18] Question: Decline in portfolio yield - The decline was primarily due to lower base rates, with new deals still maintaining attractive spreads [21][22] Question: Consideration of share repurchases - The company is tempted to consider share repurchases given the current stock price and low leverage [30] Question: Dividend reduction rationale - The reduction was a proactive measure to maintain financial health amid potential rate compressions [34][36] Question: Outlook for elevated repayment activity - Management believes that while some repayments may continue, the maturity of investments and extended hold periods will mitigate risks [42][44] Question: Credit concerns in the portfolio - No new non-accruals were reported, and while some assets are being monitored, the overall credit position remains strong [45][46]

Financial Highlights - Adjusted Earnings per Share (EPS) was $0.64[7], while GAAP EPS was $0.44[7] - The company closed transactions exceeding $700 million[7] - New asset yields surpassed 10.5% in Q1 2025[7, 25] - Available liquidity stood at $1.3 billion as of March 31, 2025[7] - CCH funded assets reached $1 billion as of March 31, 2025[7] Portfolio and Pipeline - The company's 12-month pipeline is greater than $5.5 billion[18], diversified across Grid-Connected (GC) (30%)[19], Behind-the-Meter (BTM) (49%)[18], and Fuels, Transport, & Nature (FTN) (21%)[19] - Managed assets totaled $14.5 billion, with CCH assets at $1 billion[21] - The portfolio is diversified across Resi Solar (46%)[22], Public Sector (38%)[22], C&I (4%)[22], Community Solar (4%)[22], and Other (3%)[22] Guidance and Outlook - The company reaffirmed its guidance for a Compound Annual Growth Rate (CAGR) of 8-10% to Adjusted EPS in 2027, using a 2023 base year[8]