Financial Data and Key Metrics Changes - The company generated net investment income (NII) of $0.32 per share, compared to $0.28 per share in the previous quarter and $0.32 per share in the same quarter last year [21] - The net asset value (NAV) per share increased by 5% to $7.12, up from $6.75 at the end of the previous quarter [7][23] - The company achieved a debt investment portfolio yield of 18.6% for the quarter, compared to 15.9% for the same quarter last year [20][12] Business Line Data and Key Metrics Changes - The current portfolio stood at $603 million, with new originations totaling $15 million during the quarter [10][22] - The company funded three debt investments totaling $15 million in the third quarter [10] - The onboarding debt investment yield was 12.2%, consistent with historical levels [12] Market Data and Key Metrics Changes - The venture capital market saw approximately $81 billion invested in VC-backed companies in the third quarter, with significant investments in AI [15] - The exit markets opened further with approximately $75 billion of exit value driven primarily by tech IPOs [15] Company Strategy and Development Direction - The company announced a merger with Monroe Capital Corporation, expected to close in early 2026, which will significantly increase assets under management [5] - The merger aims to create a more coordinated effort and leverage economies of scale in venture lending [5][6] - The company plans to focus on originating larger venture loans to top early-stage and late-stage companies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong pipeline of larger venture debt transactions and high demand for venture debt capital [9][16] - The company expects to return to a growth trajectory historically experienced, supported by the merger with Monroe Capital [6][9] Other Important Information - The company raised $40 million through the issuance of 5.5% unsecured convertible notes due 2030, which will strengthen the balance sheet [8][18] - The company has a committed backlog of $119 million, down from $149 million at the end of the previous quarter [13] Q&A Session Summary Question: What do you expect the trend of early payoffs to be going forward? - Management expects early payoffs to revert to historical standards despite a higher rate in the recent quarter [26] Question: What is the credit quality of the new deals coming in? - Management indicated that they expect originations to exceed prepayments and are optimistic about the credit quality of new deals [28] Question: How sustainable is the current portfolio yield? - Management noted that the historical average portfolio yield is around 14.5% to 15%, which is more normalized compared to the current yield [32] Question: What is the plan for using the at-the-market program given the stock price is below book? - The company will evaluate its liquidity and capacity before utilizing the at-the-market program [39] Question: What is the target return on equity for new assets from the Monroe deal? - Management stated that they do not have a specific targeted return on equity but will stick to their high-yielding venture debt model [42]