Core Viewpoint - FS Credit Opportunities Corp. has announced monthly distributions for October, November, and December 2025, reinforcing its commitment to providing consistent income to shareholders [1][2]. Distribution Details - The monthly distribution amount is set at $0.0678 per share, payable on October 31, November 28, and December 31, 2025 [1][5]. - The ex-dates and record dates for the distributions are October 24, November 20, and December 23, 2025, respectively [5]. Financial Performance - The current annualized distribution yield is 11.3% based on the Fund's net asset value (NAV) and 11.8% based on market price as of September 30, 2025 [3]. - The Fund has maintained a fully covered monthly distribution by its net investment income throughout 2025 [3]. - Year-to-date total return on NAV is estimated at 9.5%, while the return on market price is estimated at 10.1% through September 30, 2025 [3]. Fund Overview - FS Credit Opportunities Corp. manages approximately $2.2 billion in assets, focusing on event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities [4].

Core Insights - Apollo has appointed Yasuo Kashiwagi as Head of Japan to enhance its role in providing flexible private capital solutions in the Japanese market [1][3] - The firm has been active in Asia Pacific for nearly two decades, with a dedicated Tokyo office established in 2019, and has expanded its local team to over 30 professionals [2][3] - The appointment of Kashiwagi is aimed at driving Apollo's strategic growth in Japan, focusing on deepening institutional and regulatory relationships [3][4] Company Strategy - Apollo's strategy in Japan is to provide tailored capital solutions that align with the long-term needs of institutions and corporates, particularly in light of Japan's demographic challenges [4] - The firm aims to build trusted relationships and deliver scalable, flexible capital to address urgent demands for retirement income solutions [4] - Kashiwagi's leadership is expected to enhance Apollo's integrated platform, which manages approximately $20 billion in assets in Japan, offering a full suite of investment strategies [4][5] Market Position - The Japanese market presents long-term structural trends that align with Apollo's strengths, as institutions increasingly seek private capital for financing and partnerships [4] - Apollo's recent activities in Japan include expanding its wealth management, credit, and hybrid businesses, as well as forming new partnerships to enhance lending and retirement offerings [4] - As of June 30, 2025, Apollo manages $840 billion in assets globally, indicating its significant presence and growth potential in the alternative asset management sector [5]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of $325 million, which is 1% below the same period last year, with adjusted pretax income of $56 million and adjusted EPS of $1.05, marking record Q1 adjusted net income and EPS [4][6][10] - Adjusted pretax margin improved to 17.3% from 16.8% year over year [10] - The effective tax rate for the first quarter was 16.5%, with expectations for the full year to remain around the same rate [10][12] Business Line Data and Key Metrics Changes - Revenues in Strategic Advisory increased modestly compared to the previous year, while revenues in Restructuring and PJT Park Hill decreased slightly year over year [6][14] - The company expects full year 2025 Strategic Advisory revenues to be significantly higher than 2024 levels, driven by anticipated closings of previously announced transactions [16][82] Market Data and Key Metrics Changes - The current environment is characterized by volatile capital markets, subdued M&A activity, and fragile business confidence, impacting overall market sentiment [5][19] - The number of announced M&A transactions declined by more than 15% compared to the previous year, despite a modest increase in the dollar value of global announced M&A [15][19] Company Strategy and Development Direction - The company remains committed to investing in its strategic advisory franchise to position itself for future opportunities, despite current market uncertainties [18] - The firm is experiencing elevated activity levels in liability management, with expectations to maintain performance consistent with last year's record results [13][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's outlook for the year, stating it remains substantially unchanged despite current economic uncertainties [19][81] - The company anticipates a potential increase in restructuring and liability management activity if economic pressures persist [13][30] Other Important Information - The company ended the quarter with $227 million in cash and no funded debt outstanding [11] - A dividend of $0.25 per share was approved, to be paid on June 18, 2025 [12] Q&A Session Summary Question: Thoughts on Strategic Advisory and partner productivity in a normalized environment - Management indicated that in a normalized environment, there could be a meaningful increase in partner productivity due to better network effects and franchise value [21][23] Question: Growth algorithm for restructuring business amid economic uncertainty - Management affirmed their commitment to the restructuring business, noting that they do not view themselves as capacity constrained and expect continued elevated activity levels [25][28] Question: Discussions with private equity regarding M&A and IPOs - Management noted a slowing of activity in the private equity space, particularly in capital return and IPOs, but emphasized ongoing interest in high-quality assets [35][37] Question: Impact of high yield market stress on liability management assignments - Management acknowledged that both liability management and bankruptcies are likely to increase in a risk-off environment, with more opportunities for restructuring [49][50] Question: Regulatory posture on M&A deals under the new administration - Management described the regulatory environment as mixed, with some confidence in moving forward with deals, but noted that large transactions are still being scrutinized [65][67] Question: Recruiting environment and potential for increased hiring - Management indicated that while demand for talent remains strong, the ability to attract individuals may improve as market conditions evolve [68][70]