Financial Data and Key Metrics Changes - Q1 net investment income per share was $0.50, representing an annualized yield on book value of 11.3% [5] - Q1 earnings per share were $0.44, reflecting an annualized return on book value of 10% [5] - Net asset value per share decreased to $17.64, down $0.01 from the prior quarter [6] - Total investment income for Q1 was $66.8 million, down from $73.3 million in the previous quarter [19] - Net investment income for the quarter was $32.1 million, or $0.50 per share, compared to $33.6 million, or $0.52 per share, in the prior quarter [21] Business Line Data and Key Metrics Changes - Gross originations for Q1 were $277 million, down 31% year over year [7] - 51% of total fundings were made to new portfolio companies, while 49% were to existing companies [12] - 90% of investments were made into first lien structures, with 9% in subordinated debt and 1% in equity [13] - The weighted average yield of the investment portfolio at amortized cost and fair value was 11.5% [16] Market Data and Key Metrics Changes - Middle market direct lending volumes saw compression amid high competition, particularly in the upper and larger ends of the market [7] - Credit quality remained solid, with investments on non-accrual representing 1.4% of the total investment portfolio [9] - The weighted average interest rate on outstanding debt was 4.8%, down from 5.1% in the prior quarter [23] Company Strategy and Development Direction - The company remains focused on being disciplined capital providers and selective in underwriting new capital structures [7] - The investment strategy emphasizes high-quality interest income from middle market borrowers and stable credit performance [5] - The company aims to navigate potential economic challenges, including inflation and recessionary risks, by focusing on core middle market, asset-light businesses [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio and balance sheet's ability to navigate increasing volatility [25] - The company does not foresee the need to revisit its current dividend policy in the near term, given strong spillover income [44] - Management highlighted the importance of their experience in navigating multiple market cycles [11] Other Important Information - The Board declared a second quarter dividend of $0.42 per share, with an additional dividend of $0.03 per share [6] - The company has $823 million in total available liquidity, including $699 million of undrawn capacity on its revolving credit facility [24] Q&A Session Summary Question: Can you quantify the later fundings and lower interest income? - Management noted that new originations were backdated, but the yield across the portfolio remains stable at about 11.5% [28][30] Question: What drove the realized losses this quarter? - Management explained that two names were exited during the quarter, with restructuring teams optimizing value on the exit [34][36] Question: What is the posture on the ATM and stock buybacks? - Management indicated that the ATM is opportunistic and dependent on trading conditions, with stock buybacks evaluated against investment opportunities [40][42] Question: When should the full incentive fee kick back in? - Management expects stabilization from the second quarter onwards, with some nuances due to payment components [48]