Financial Data and Key Metrics Changes - FSK generated net investment income of $0.62 per share and adjusted net investment income of $0.60 per share, compared to public guidance of approximately $0.64 and $0.62 per share respectively [8] - Net asset value per share declined 6.2% from $23.37 to $21.93 during the quarter [8] - Total investment income was $398 million for the second quarter, a decrease of $2 million compared to the first quarter [25] - Total expenses were $225 million during the second quarter, an increase of $12 million compared to the first quarter [26] Business Line Data and Key Metrics Changes - New investment activity remained strong with $3.4 billion of investments originated in 2025, of which $1.4 billion were originated during the second quarter [9] - Approximately 72% of new investments were focused on add-on financings to existing portfolio companies and long-term KKR relationships [21] - Non-accruals represented 5.3% of the portfolio on a cost basis and 3% on a fair value basis as of the end of the second quarter [22] Market Data and Key Metrics Changes - Global M&A volume is down close to 10% year over year, but the team evaluated more opportunities in Q2 than in any of the previous eight quarters [12] - Direct tariff exposure has declined and now falls within the low to mid single-digit range [13] Company Strategy and Development Direction - The company continues to focus on senior secured investments, with approximately 59% of the portfolio in first lien loans and 64% in senior secured debt as of June 30 [24] - The 2025 distribution strategy aims to provide shareholders with additional distributions from accumulated spillover income, with a total expected distribution of $2.80 per share [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for an increase in M&A activity later this year and into next year, despite current market volatility [12] - The company is focused on stabilizing operations and realizing meaningful cost efficiencies in response to headwinds from tariffs and softer consumer demand [19] Other Important Information - The weighted average yield on accruing debt investments was 10.6% as of June 30, a decrease of 20 basis points compared to the previous quarter [25] - The company plans to provide additional details regarding its 2026 dividend strategy on the third quarter earnings call [11] Q&A Session Summary Question: What are you seeing in terms of originations in the second half? - Management noted increased activity and deal count, with more deals evaluated in Q2 than in the previous eight quarters, indicating a busier environment [36] Question: Do you have any other companies on a watch list beyond the four mentioned? - Management indicated that approximately 7% of the portfolio is in risk ratings QAR bucket three and four, with some names showing positive momentum [39] Question: Can you explain the anticipated dividend from the joint venture for Q3? - The anticipated dividend for Q3 is lower due to the timing of certain ABF dividends, which tend to be lumpy [45] Question: What is the company's view on buybacks given the current portfolio conditions? - Management stated that they have historically been active in buybacks but will balance that with market opportunities and target leverage ratios [50] Question: Are there any themes leading to re-defaults in the portfolio? - Management clarified that each situation is unique, and while some companies are facing challenges, proactive restructuring efforts are ongoing [60] Question: How does the company plan to manage inflow and outflow of investments? - Management emphasized the correlation between new deal flow and repayments, indicating that they have levers to manage growth within their target leverage band [78] Question: What is the current status of spillover income? - Spillover income has been reduced to the mid-400 million range, with a target of aligning it to approximately two quarters' worth of dividends [100]

Group 1: Investment Announcement - Trinity Capital Inc. has committed $62.7 million in growth capital to Atmosphere TV, a streaming platform focused on businesses [1] - The investment aims to support Atmosphere's significant growth and innovation in the media landscape [3] Group 2: Company Overview - Atmosphere TV is a premier streaming platform tailored for high-traffic environments such as restaurants, bars, gyms, and airports, offering over 30 original and partner TV channels [2][5] - The platform utilizes proprietary content delivery technology to provide dynamic, audio-optional streaming content, enhancing customer experiences [2] Group 3: Leadership Insights - Ryan Thompson from Trinity Capital expressed excitement about partnering with Atmosphere during its growth phase [3] - Blake Sabatinelli, CEO of Atmosphere, highlighted Trinity Capital's expertise in scaling high-growth technology businesses as a key factor in their partnership [3] Group 4: Market Position and Recognition - Atmosphere has been recognized in Deloitte's 2023 Technology Fast 500, Fast Company's 2022 Most Innovative Companies, and Forbes' Next Billion Dollar Startups lists, indicating its strong market position [5]

Financial Data and Key Metrics Changes - The company reported a record annualized return on equity of 25.4% for the fourth quarter and a return on equity of 19.4% for the full year [10] - Total investment income for the fourth quarter was $140.4 million, an increase of $11.1 million or 8.6% year-over-year [28] - Net asset value (NAV) per share increased by $1.08 over the third quarter and by $2.45 or 8.4% year-over-year, reaching a record NAV per share of $31.65 [34] Business Line Data and Key Metrics Changes - The lower middle market portfolio included investments in 84 companies with a fair value of $2.5 billion, representing a 29% increase over the related cost basis [26] - The private loan portfolio had investments in 91 companies with a fair value of $1.9 billion, with the total investment portfolio at fair value being 16% above the related cost basis [27] - The company made total investments of $168 million in the lower middle market portfolio and $108 million in private loans during the fourth quarter [26][14] Market Data and Key Metrics Changes - The company experienced a net fair value appreciation of $80.8 million in the fourth quarter, driven by the lower middle market portfolio [33] - The private loan portfolio represented 46% of total investments at cost at year-end, while the middle market portfolio declined to less than 5% [25] Company Strategy and Development Direction - The company focuses on making both debt and equity investments in the underserved lower middle market, which is expected to continue providing attractive new investment opportunities [20] - The company plans to grow its asset management business, highlighted by the successful listing of the Embassy Income Fund on the New York Stock Exchange [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of portfolio companies to navigate economic uncertainties, including potential tariff impacts [41][44] - The company anticipates continued favorable performance in the first quarter of 2025, with expected distributable net investment income (DNII) of at least $1.05 per share [37] Other Important Information - The company declared a supplemental dividend of $0.30 per share payable in March, marking the fourteenth consecutive quarterly supplemental dividend [16] - The company expects to recommend future supplemental dividends if DNII significantly exceeds regular monthly dividends [17] Q&A Session Summary Question: Exposure to potential tariff issues - Management acknowledged that certain portfolio companies may be impacted by tariffs but emphasized the diversity of the portfolio as a mitigating factor [41][42] Question: Impact of potential capital gains tax changes on acquisition activity - Management noted that while M&A activity has been slower than expected, it is not primarily related to potential changes in capital gains tax rates [51][52] Question: Leverage and origination activity - Management indicated that the current under-levered position is due to less than expected investment activity and plans to increase leverage through net investment activity [56][58] Question: Competition from other BDCs moving down market - Management expressed confidence in the uniqueness of their lower middle market strategy and the strong performance of their portfolio, suggesting that competition may not significantly impact their position [82]