Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [15][16] - As of June 30, 2025, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31, 2025 [16] Business Line Data and Key Metrics Changes - The company recorded an unrealized gain on investments of $500,000 and a modest net realized loss of $70,000 during the quarter [15] - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30, down from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] Market Data and Key Metrics Changes - The CLO market remained resilient during a period of macro uncertainty and has since rebounded, with loan fundamentals remaining strong [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June 30, 2025, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [39] Company Strategy and Development Direction - The company emphasizes a data-driven investment approach utilizing machine learning technology and proprietary algorithms to maintain agility and seek relative value in the CLO space [8][9] - The portfolio is diversified across 52 unique CLO positions managed by 31 distinct CLO manager platforms, with no significant concentration in any single CLO [11][12] - The company plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [19] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions already successfully reset or refinanced in Q3 [34] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans for similar distributions in the following months, representing an annualized dividend yield of approximately 14.7% [17] Q&A Session Summary Question: Inquiry about recurring cash flow for comparative purposes - Management confirmed that recurring cash flow for Q1 was $7.7 million [21][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time and will be utilized opportunistically based on investment opportunities and cost of leverage [22][24] Question: Composition of current pipeline regarding primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the primary market currently presents interesting opportunities, while the secondary market has provided better relative value recently [25][29] Question: Quantification of opportunities for resets and refinancings within the portfolio - Management expects refinancing and reset activity to continue, with five minority positions already reset or refinanced in Q3 [33][34] Question: NAV reaction to the credit environment after the sell-off in April - Management noted that NAV increased post-sell-off due to strong loan fundamentals and significant refinancing activity [38][39]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [16][18] - As of June 30, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31 [17] Business Line Data and Key Metrics Changes - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30 from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] - The company maintained a diversified portfolio with 52 unique CLO positions managed by 31 distinct CLO manager platforms, consisting of approximately 1,800 unique loans across over 30 industry sectors [12][13] Market Data and Key Metrics Changes - The CLO market showed resilience during macroeconomic uncertainty, with loan fundamentals remaining strong and managers adapting quickly to market conditions [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [40] Company Strategy and Development Direction - The company emphasized its data-driven investment approach, utilizing machine learning and proprietary algorithms to maintain a competitive edge in the CLO market [9][10] - The management plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities, with a focus on both primary and secondary market opportunities [10][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [20] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions successfully reset or refinanced in Q3 [35] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans to continue this distribution in August, September, and October, representing an annualized dividend yield of approximately 14.7% [18] Q&A Session Summary Question: Recurring cash flow comparison with the prior quarter - Management confirmed that recurring cash flow for Q1 was $7.7 million, similar to the current quarter's level [22][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time, and they evaluate investment opportunities daily, considering the cost of leverage compared to expected returns [23][24] Question: Composition of current pipeline in terms of primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the relative value of opportunities drives their decisions, noting interesting opportunities in the primary market while the secondary market has provided better relative value recently [25][28] Question: Quantifying opportunities for resets and refinancings - Management expects refinancing and reset activity to continue, with five minority positions successfully reset or refinanced in Q3 [35] Question: NAV reaction to the credit environment post-sell off - Management noted that NAV increased post-sell off due to strong loan technicals and significant refinancing activity, with credit fundamentals remaining stable [39]

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Strategic Divestments - StoneCo divested Linx and related assets to TOTVS for an enterprise value of R$305 billion and a total value of R$341 billion[12] - SimplesVet was divested to PetLove for an enterprise value of R$140 million and a total value of R$155 million[12] - The value captured from divestments represents approximately 25% of StoneCo's market capitalization, while the divested assets accounted for less than 5% of the company's adjusted net income[11, 14] Financial Performance (2Q25) - StoneCo's adjusted basic EPS for continuing operations increased by 409% year-over-year[20, 45] - Adjusted net income from continuing operations increased by 237% year-over-year to R$5981 million[20, 39] - Total revenue and income from continuing operations grew by 202% year-over-year to R$35009 million[34, 39] - Adjusted gross profit from continuing operations increased by 139% year-over-year to R$15615 million[39] Business Segments - MSMB (Micro, Small, and Medium Businesses) payments client base increased by 64% year-over-year[26] - MSMB TPV (Total Payment Volume) increased by 12% year-over-year[26] - Retail deposits increased by 36% year-over-year[28] - Credit portfolio increased by 25% quarter-over-quarter[30] Guidance Update - StoneCo updated its 2025 adjusted gross profit guidance to > R$6375 billion, reflecting a 145% year-over-year increase[17] - The company updated its 2025 adjusted basic EPS guidance to > R$96 per share, representing a 32% year-over-year increase[17] Future Outlook (2027 Guidance) - StoneCo projects MSMB TPV to exceed R$670 billion by 2027, with a CAGR of +14%[46] - The company anticipates retail deposits to surpass R$140 billion by 2027, with a CAGR of +17%[46] - StoneCo expects its credit portfolio to exceed R$55 billion by 2027, with a CAGR of +66%[46] - The company forecasts adjusted gross profit to exceed R$102 billion by 2027, with a CAGR of +18%[46] - StoneCo projects adjusted basic EPS to exceed R$150 per share by 2027, with a CAGR of +27%[46]

Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $15 million and after-tax distributable earnings of $268 million, or $0.69 per share of Class A common stock, reflecting a 30% year-over-year increase in after-tax distributable earnings [4][29]. - Total assets under management (AUM) increased by 14% year-over-year to $261 billion, driven by $36 billion of capital raised and $21 billion of value creation [27]. - Fee-earning AUM rose by 7% year-over-year to $146 billion as of June 30, 2025 [27]. Business Line Data and Key Metrics Changes - Fundraising grew nearly 80% year-over-year to $11.3 billion, with $5.4 billion coming from the credit platform, marking the second highest fundraising quarter in TPG's history [6][32]. - Deployment increased by 36% year-over-year to over $10 billion, with significant investments in various sectors including technology and sustainable agriculture [15][17]. - Realizations totaled $6.5 billion during the quarter, with notable exits from several companies [21][22]. Market Data and Key Metrics Changes - The company experienced strong early support for its second GP Solutions Fund, which is expected to be significantly larger than its predecessor [10]. - Insurance contributed nearly 30% of the credit capital raised in the second quarter, indicating a growing focus on this market segment [13]. - The company is actively expanding its investor base outside of North America, particularly in the Middle East, Asia, and Latin America [9]. Company Strategy and Development Direction - TPG is focused on scaling its credit businesses and preparing for the launch of new private equity funds, with a strong emphasis on innovation and product development [26]. - The company aims to deepen relationships with existing clients while establishing new partnerships, particularly in the insurance sector [14][55]. - TPG is entering the back half of the year with significant strength across its platforms, expecting to continue delivering outstanding results for clients and shareholders [25]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the private equity asset class as a return driver for institutional accounts, despite broader market challenges [44]. - The company anticipates a breakout year in 2025 for credit fundraising, driven by strong demand and a robust pipeline [13][32]. - Management highlighted the importance of maintaining a focus on fee-related earnings growth while exploring strategic partnerships in the insurance sector [54]. Other Important Information - TPG completed the acquisition of PepperTree, which is expected to enhance its digital infrastructure strategy [6]. - The company ended the quarter with record dry powder of $63 billion, representing 43% of fee-earning AUM [20]. - TPG's real estate portfolio appreciated approximately 3% in the second quarter and 14% over the last twelve months, indicating strong performance in this segment [31]. Q&A Session Summary Question: Insights on Private Equity Cycle - Management noted that TPG's performance differs from broader market trends, with strong growth in private equity driven by effective fund management and intentional portfolio composition [44][46]. Question: Insurance Strategy - Management emphasized the importance of maintaining FRE centricity and being cautious about assuming liabilities in insurance transactions, focusing on partnerships to enhance distribution capabilities [52][54]. Question: Fund Size Expectations - Management indicated that the first close of $9 billion reflects strong re-ups from existing LPs, with expectations for continued growth in fund sizes [60][63]. Question: Deployment Opportunities - Management expressed optimism about deployment opportunities across various business lines, anticipating an acceleration in the second half of the year [68][70]. Question: Capital Markets Growth - Management highlighted the ongoing build-out of capital markets capabilities, which are expected to grow in correlation with the firm's overall growth and transactional activity [76][80]. Question: Retail Opportunity and TPOP Expansion - Management discussed plans to broaden distribution for TPOP and the development of new products across various asset classes, including credit and real estate [84][87].

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Summary of Key Points from Morgan Stanley Research on Asia Macro Strategy Themes for 2H25 Industry Overview - The report focuses on the Asia Pacific (APAC) credit market and its dynamics, particularly in relation to USD and local currency (LC) funding strategies [2][6][133]. Core Insights 1. **USD Weakness and Economic Growth** - The USD is expected to continue weakening, with the US economy projected to grow at a pace similar to the rest of the world, ending years of outperformance [6][8]. 2. **Yield Dynamics** - The narrowing yield advantage of the USD is anticipated as the Federal Reserve lowers rates, which may erode USD's yield support [10][12]. 3. **Increased Hedging of USD Assets** - There is a potential increase in hedging of USD assets among global investors, particularly in Asia, where nearly half of European asset holdings in the US are FX-unhedged [15][17]. 4. **AXJ Economies and USD Holdings** - All AXJ economies, except China and India, have increased their holdings of US portfolio assets, with foreign currency deposits in AXJ economies ballooning to $3.7 trillion [20][24][22]. 5. **Impact of Global Trade Slowdown** - A broad slowdown in Asia's growth is noted, particularly affecting export-oriented economies, leading to narrowing current account surpluses for most trade-exposed economies [36][38]. 6. **Monetary Policy and Inflation** - Inflation remains low and within central bank targets for almost all Asia economies, providing room for potential monetary easing [40][42]. 7. **Asia Credit Market Dynamics** - The Asia credit market is characterized by high sector and issuer concentration risks, particularly with a significant exposure to China [87][98]. The report emphasizes the need for diversification to improve risk-adjusted returns [83][96]. 8. **Future Paths for Asia Credit** - Four potential paths for expanding the Asia credit benchmark are proposed, including incorporating Japan and Australia & New Zealand USD offshore bonds, which could enhance diversification and improve risk-adjusted returns [110][114]. 9. **Medium-Term Implications** - Japan and Australia & New Zealand bonds are expected to become core holdings for Asia credit investors, with a projected decline in risk premiums for these credits [119][120]. 10. **Importance of the Banking Sector** - The banking sector's weight in the Asia credit benchmark is expected to increase, necessitating greater awareness of changes in banking regulations and capital requirements [120][125]. Additional Important Insights - **Diversification Strategies** - The report suggests that Asia credit investors should set limits on issuer, sector, and economy weights in their portfolios to avoid concentration risks [132]. - **Projected Growth of APAC Credit Market** - The APAC credit market is projected to grow to $2.1 trillion by 2027, driven by nominal GDP growth and a shift towards USD funding [141][148]. - **Investor Sentiment** - A significant portion of Asia credit investors are considering Japan and Australia credit as core holdings, indicating a shift in investment strategies [179][181]. This summary encapsulates the key themes and insights from the Morgan Stanley Research report, highlighting the dynamics of the Asia credit market and the implications for investors in the region.

Australia’s corporate watchdog is scrutinizing private credit manager Metrics Credit Partners, people familiar said. Read today's Australia Briefing by @ainsley_thomson for your daily dose of the best of Bloomberg. https://t.co/qyR7XSicYo ...

Australia’s corporate watchdog is scrutinizing private credit manager Metrics Credit Partners because of concerns over loan valuations and governance practices that have emerged as part of a broader industry probe, sources say https://t.co/7MpNeDBVi5 ...

Senator Elizabeth Warren asked Treasury Secretary Scott Bessent and various ratings agencies for more information on risks posed by the $1.7 trillion private-credit industry https://t.co/FJs48bfES9 ...