Financial Performance - Q2 2025 adjusted net investment income ("NII") was $0.32 per share, covering the dividend of $0.32 per share[15] - June 30, 2025 net asset value ("NAV") was $12.21 per share, compared to $12.45 per share as of March 31, 2025[15] - The company repurchased approximately $16 million of NMFC shares year-to-date, including $10 million in Q2 at a weighted average purchase price of $10.42 per share[15] - Total dividends paid to shareholders is approximately $1.4 billion since IPO[27] Portfolio Composition and Risk - Approximately 95% of the portfolio is rated green on the company's heatmap, indicating strong credit quality[15] - Nearly 80% of the portfolio is senior in nature, including First Lien, SLPs, and Net Lease assets[15] - Realized Total Net Loss Rate for NMFC since IPO is 1bp[19] - Top 10 portfolio companies represent $759.4 million, or 25.2%, of consolidated investments[67] Investment Activity - Gross originations for Q2 2025 were $122.2 million, while repayments were $141.4 million and sales were $13.7 million, resulting in net less sales originations of $(32.9) million[17, 55] Leverage and Liquidity - Statutory leverage ratio is 1.13x debt to equity as of June 30, 2025[16] - The company has $1,789 million in outstanding debt with a weighted average interest rate of 6.04%[53, 82]

Summary of TPG Conference Call Company Overview - **Company**: TPG (TPG) - **Industry**: Alternative Asset Management - **Assets Under Management**: Over $250 billion [2] Key Points and Arguments Leadership and Company Evolution - Todd Csisiski has been with TPG since its inception and has evolved from leading healthcare investments to becoming President, focusing on strategic growth and collaboration [3][5][6] - TPG emphasizes a culture of performance and collaboration, with a flat organizational structure that encourages participation from all professionals [11][12] Macro Environment and Portfolio Performance - The global economy has shown resilience despite volatility, with TPG's private equity revenue growth reported at 18% and EBITDA growth at 24%, significantly outperforming the S&P [15][16] - TPG focuses on secular growth areas and has maintained a cautious approach to macroeconomic conditions, which has contributed to strong portfolio performance [17][18] Capital Markets and Investment Pipeline - TPG remains active in capital markets, with a healthy pipeline of proprietary deals, particularly in private equity, credit, and real estate [20][22][24] - The firm has seen opportunities in distressed assets and is not heavily exposed to U.S. office markets, allowing for strategic investments [26][27] Geographic Focus and Investment Opportunities - TPG identifies compelling opportunities in Europe, particularly in technology, healthcare, and real estate sectors [29][30] - In Asia, TPG is focusing on Australia, India, and Southeast Asia, while being less active in China due to regulatory uncertainties [30][31] Exit Activity and Liquidity - TPG has been proactive in exit strategies, with 60% of private equity exits to strategic buyers, and has maintained good liquidity despite market volatility [38][39] - The firm has successfully executed multiple exits in 2023, indicating a strong liquidity position [39] Fundraising and Investor Relations - TPG expects to raise significantly more capital in 2025 compared to 2024, with strong interest in their flagship funds [45][46] - The firm is experiencing differentiated interest from investors due to its strategic approach and strong performance metrics [46][49] Credit and Structured Finance - TPG is optimistic about its credit business, particularly after the acquisition of Angelo Gordon, and is seeing strong demand for structured credit products [55][57] - The firm is focusing on cross-selling opportunities and expanding its credit offerings, which have seen significant growth since the acquisition [58] M&A Strategy - TPG is open to both organic and inorganic growth, with a focus on platform transactions that enhance existing capabilities [64][66] - The firm is actively exploring strategic partnerships, particularly in the insurance sector, to enhance its service offerings [68][70] Cultural Integration Post-Acquisition - The integration of Angelo Gordon has been successful, with a strong emphasis on collaboration and shared values between the two firms [60][62] Additional Important Insights - TPG's approach to investment is characterized by a focus on operational capabilities and strategic partnerships, which has led to unique deal sourcing opportunities [23][28] - The firm is positioning itself to capitalize on the growing demand for climate-related investments, reflecting a broader trend in the market [51][52]

Core Insights - Prospect Capital Corporation's President and COO, Grier Eliasek, emphasizes attractive opportunities in the lower and core middle-market for lenders seeking favorable deal terms and higher risk-adjusted returns [1][2] - The company focuses on underwriting strategies that target less cyclical industries and companies with resilient cash flows, while negotiating lower leverage multiples and tighter covenants to manage credit risk [2][3] Market Position - Prospect Capital is recognized as a market leader in the lower and core middle-market direct lending space, with a notable trend of significant capital being raised for direct lending at the upper end of the market [2][3] - The company has maintained financial ratio maintenance covenants in the lower and core middle-market, which have largely disappeared in the upper middle-market due to intense competition [3] Performance Metrics - Prospect Capital Corporation has achieved a realized gross annualized internal rate of return (IRR) of approximately 13%, based on total capital invested of about $11.8 billion and total proceeds from exited investments of approximately $14.9 billion [4]

Financial Data and Key Metrics Changes - For the quarter ended March 31, GAAP net investment income was $0.28 per share, and core net investment income was also $0.28 per share. Adjusted for additional shares issued, core NII would have been $0.30 per share [24] - As of March 31, NAV was $11.7 per share, down 2.4% from $11.34 per share last quarter [24] - The portfolio grew to $2.3 billion, up 7% from the prior quarter [18] Business Line Data and Key Metrics Changes - During the quarter, the company invested $293 million in three new and 54 existing portfolio companies at a weighted average yield of 9.9% [18] - The weighted average debt to EBITDA for new investments was 4.3 times, with an interest coverage of 2.3 times and a loan to value of 39% [10] - The portfolio remains highly diversified with 159 companies across 49 different industries, and the weighted average yield on debt investments was 10.5% [26] Market Data and Key Metrics Changes - Approximately 80% of originations came from existing borrowers, while 20% were from new platform investments [7] - The pricing on first lien term loans appears to have stabilized in the SERFR plus 500 to $5.50 range for high-quality assets [10] - The debt to equity ratio was 1.3 times as of March 31 [25] Company Strategy and Development Direction - The company focuses on the core middle market, providing strategic capital to borrowers in five key sectors: business services, consumer, government services and defense, healthcare, and software and technology [12] - The company aims to preserve capital while seeking investment opportunities in growing middle market companies with high free cash flow conversion [22] - The company has raised significant equity capital through its ATM program, totaling $163 million during the quarter [21] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company had a solid quarter and expects to ramp up portfolio activity in the coming months [6][7] - The management believes that the current vintage of core middle market loans is excellent, with strong credit quality and limited exposure to tariffs [11][12] - The company anticipates that the uncertainty surrounding tariffs needs to be resolved for M&A activity to pick up [34] Other Important Information - The company has taken significant steps to strengthen its balance sheet, increasing total leverage by $750 million over the last twelve months [18] - The company closed on a new $361 million securitization financing with a weighted average spread of 1.59% [19] - Nonaccruals represent only 2.2% of the portfolio at cost and 1.2% at market value, which improved to 1% at cost and 0.5% at market value after the quarter [14][27] Q&A Session Summary Question: On the equity raising during the quarter, was this a long-term capital build or an increase in pipeline activity? - Management indicated that the capital raised was to prepare for a robust 2025, despite a slowdown in activity due to recent market events [29] Question: What is necessary to unlock new M&A activity in the market? - Management stated that certainty in tariffs and a stable environment are needed to encourage decision-making and M&A activity [34] Question: How much of the activity with existing borrowers is repricing versus growth capital? - Management noted that most activity is from existing platforms growing, with repricing having ended due to market changes [40] Question: How does the company view tariff sensitivity for its portfolio versus larger businesses? - Management emphasized that most sectors in their portfolio are not significantly impacted by tariffs, with limited exposure [45] Question: How does the company plan to deploy additional equity into the senior loan fund? - Management expects to deploy excess capital within a six to twelve-month timeframe, depending on market conditions [52] Question: What are the long-term opportunities for growing the joint venture or adding partners? - Management expressed interest in potentially adding another JV partner over time, depending on finding the right fit [56]

Financial Data and Key Metrics Changes - The company reported net investment income of $32.4 million, a 29% increase compared to Q1 of the previous year [5] - Total investment income reached $65 million, marking a 30% increase year-over-year [15] - The effective yield on the portfolio was 15.3%, while the core yield was 14.1% [15] - The net asset value (NAV) grew to $833 million from $823 million at the end of the previous quarter, although NAV per share decreased from $13.35 to $13.05 [18] Business Line Data and Key Metrics Changes - The portfolio consisted of approximately 75% secured loans, 19% equipment financing, 4% equity, and 2% warrants [24] - Funding breakdown for Q1 included 38% to equipment financing, 29% to life sciences, 18% to sponsor finance, 10% to tech lending, and 5% to asset-based lending [25] - The credit quality remained strong, with approximately 99.1% of the portfolio performing on a fair value basis [26] Market Data and Key Metrics Changes - The company has $623 million in unfunded commitments, indicating a strong investment pipeline [13] - The largest industry exposure was finance and insurance at 16.9%, followed by medical devices at 12.3% [24] Company Strategy and Development Direction - The company is focused on building a resilient asset management business with five complementary business verticals [9] - An internally managed structure aligns the interests of employees and management with shareholders [10] - The company aims to capitalize on new opportunities in the private credit space, particularly in late-stage VC and lower middle market [11] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring macroeconomic conditions, including tariff impacts, and has found limited exposure among portfolio companies [6][23] - The company is optimistic about future growth, citing a strong investment pipeline and a recent investment-grade rating from Moody's [12][20] - Management emphasized the importance of credit quality and portfolio management in navigating market volatility [28] Other Important Information - The company raised $31 million from its equity ATM program and $4 million from its net debt ATM program during the quarter [20] - The company has no further debt obligations due until August 2026 following the repayment of convertible notes [19] Q&A Session Summary Question: Why did interest income drop despite a net increase in portfolio investments? - Management attributed the drop to the effects of prior rate cuts and a decrease in early repayments [30][31] Question: Will commitments increase in Q2? - Management indicated that while commitments were down in Q1 due to a defensive stance, they expect to see a robust pipeline and potential increases in commitments moving forward [44][46] Question: What is the impact of tariffs on the medical devices sector? - Management reported low tariff impact on the life sciences portfolio, with no alarming findings from their investigations [35][36] Question: How does the company view lower yields in the portfolio? - Management noted that the decrease in yield is primarily due to rate changes and a strategic shift towards more mature sponsor finance businesses [60] Question: How committed is the company to maintaining or increasing dividends? - Management expressed a strong commitment to maintaining and potentially increasing dividends, focusing on building NAV and ensuring coverage [70][72]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q1 2025 was $0.32 per share, covering the $0.32 per share dividend paid on March 31 [5] - Net asset value per share declined to $12.45, a decrease of $0.10 or 80 basis points, indicating stable credit performance [5][18] - Total investment income for the quarter was $86 million, a 5% decrease compared to the prior year [29] Business Line Data and Key Metrics Changes - The percentage of first lien assets is increasing while PIK income and second lien income are decreasing [6] - PIK interest income represented only 8% of total investment income, down from 10% in the previous quarter [30] - The average yield of NMFC's portfolio decreased to 10.7% due to lower yields on originations compared to repayments [25] Market Data and Key Metrics Changes - NMFC has only 2% exposure to sectors most at risk for tariffs, compared to 13% for peers [6] - The loan-to-value ratio stands at 43%, indicating a conservative lending approach [6][25] - The weighted average EBITDA of borrowers decreased to $170 million, reflecting the realization of larger companies during the quarter [25] Company Strategy and Development Direction - NMFC aims to continuously improve its portfolio and has a strategic imperative to decrease non-yielding equity positions [10][24] - The company is focused on sectors with low exposure to tariffs and is actively refinancing lending lines at lower rates [6][12] - A stock repurchase program has been authorized to buy back up to $47 million of NMFC shares, indicating confidence in the company's valuation [9] Management's Comments on Operating Environment and Future Outlook - The management noted a pause in M&A activity but sees direct lending as an attractive asset class with stable risk-adjusted returns [20] - The dividend protection program can provide up to $0.02 of extra dividend support per quarter if necessary [7] - Management expressed optimism about the ability to optimize financing and refinance higher-cost debt in the future [60][70] Other Important Information - The company has successfully raised a $15.4 billion private equity fund, one of the largest in the industry [9] - NMFC's non-accruals remain low at $38 million, or 1.2% of the portfolio [19] - The company has a diversified portfolio across 119 companies, with the top 10 single name issuers accounting for 26% of total fair value [26] Q&A Session Summary Question: Inquiry about Unitech's complicated capital structure - Management explained the complexity of Unitech's capital structure and provided details on cash invested and accrued PIK [37][38] Question: Future expectations for Unitech's income - Management indicated that income from Unitech is expected to remain stable moving forward [43] Question: Market outlook on spreads and pricing - Management noted that spreads and pricing have stabilized, with some incremental changes observed [51] Question: Dividend protection plan's sufficiency - Management expressed confidence in having sufficient levers to cover dividends despite potential rate declines [54][60] Question: Duration of the dividend protection program - The dividend protection program is in place for the full year of 2025 and 2026 [72]

Core Viewpoint - Nuveen Churchill Direct Lending (NCDL) is a notable player in the Business Development Company (BDC) sector, although less recognized compared to Blackstone Secured Lending Fund (BXSL) and Morgan Stanley Direct Lending Fund (MSDL) [1] Company Insights - NCDL is positioned as a viable investment option within the BDC landscape, emphasizing its potential for steady income through dividend investing [1] - The article highlights the author's extensive experience in M&A and business valuation, indicating a strong foundation for evaluating companies like NCDL [1] Investment Philosophy - The focus on dividend investing is presented as an accessible path to financial freedom, with the author sharing insights to help others navigate this investment strategy [1] - The article aims to demystify the process of dividend investing, making it more approachable for individuals seeking to build long-term wealth [1]

Group 1 - Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) is one of six Business Development Companies (BDCs) currently held in the portfolio alongside other high-quality names such as Morgan Stanley Direct Lending Fund (MSDL) [1] - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - Berzins has been involved in policy-level work, including the development of national State-Owned Enterprise (SOE) financing guidelines and frameworks for channeling private capital into affordable housing [1] - Berzins holds a CFA Charter and an ESG investing certificate, and has interned at the Chicago Board of Trade while residing in Latvia [1] - He is actively engaged in thought-leadership activities to support the development of pan-Baltic capital markets [1]

Financial Performance - The company's net investment income per share was $0.57 in Q4 2024, compared to $0.66 in Q3 2024[23] - Earnings per share was $0.58 in Q4 2024, compared to $0.60 in Q3 2024[23] - Net asset value per share was $20.81 as of Q4 2024, slightly down from $20.83 in Q3 2024[23] - The company declared dividends of $0.60 per share for Q4 2024, including a regular dividend of $0.50 and a special dividend of $0.10[23] Portfolio Composition and Activity - The total fair value of the portfolio was approximately $3.8 billion, invested in 208 portfolio companies across 33 industries[23] - The weighted average yield at amortized cost of debt investments was 10.4%[23] - The company committed $188.3 million to new investments during Q4 2024, resulting in a net funded portfolio increase of $143.7 million[23] - Approximately 100% of new investment commitments were in first lien senior secured loans[23] - 96.5% of the portfolio consists of first lien investments[16] - 99.6% of the portfolio consists of floating rate loans[16] Debt and Liquidity - The outstanding debt balance was $1,983.4 million, with 53% unsecured debt; the quarter-end debt-to-equity ratio was 1.08x[23] - The company had total liquidity of $1,035.2 million, including unrestricted cash and cash equivalents of $70.4 million and undrawn, committed debt capacity of $964.8 million[23]

Financial Data and Key Metrics Changes - Full year 2024 adjusted net investment income was $1.52 per share, down from $1.84 per share in 2023, with an annualized net investment income ROE of 14.5% [10] - Fourth quarter adjusted net investment income per share was flat at $0.36 compared to the previous quarter [11] - NAV per share decreased to $9.23 from $10.11, reflecting markdowns in the investment portfolio [11][12] - Non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter [11] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 154 companies, with 91.2% in senior secured loans [30] - The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% in the previous quarter [31] - New investments had a weighted average yield of 10.8%, while exited investments had a yield of 14% [32] Market Data and Key Metrics Changes - The overall M&A volumes remained below expectations, but there was a healthy flow of new investment opportunities [33][39] - The market is experiencing tighter spreads due to increased competition between private credit and traditional lending sources [41] Company Strategy and Development Direction - The company plans to focus on the core middle market with a proactive approach to sourcing and underwriting [24] - A highly diversified portfolio will be maintained, limiting exposure to specific industry subsectors [26] - The company will prioritize investing in first lien loans and deepen connections with the broader BlackRock platform for competitive advantage [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating challenges in 2024 and returning to historical above-market returns [10] - The company is focused on resolving credit issues with borrowers and sponsors, emphasizing that quick resolutions may not always yield the best results for shareholders [12][13] - The management team is confident in their ability to work through current challenges and return the portfolio to historical performance levels [29] Other Important Information - The Board decided to reduce the regular dividend to $0.25 per share for the first quarter, while also declaring a $0.04 special dividend [20][21] - The advisor agreed to waive one-third of the base management fee for three quarters beginning January 1, 2025 [22] Q&A Session Summary Question: Can you provide details on the spillover and target level for dividends? - The company has about $0.10 of carryover from the prior quarter and aims for a sustainable regular dividend level based on current earnings power [54][55] Question: Will there be any strategic changes due to the BlackRock HPS acquisition? - Management does not expect meaningful changes and emphasizes a focus on business as usual, while highlighting expanded resources from the acquisition [58][60] Question: What level of confidence is there regarding write-downs in the portfolio? - Management is focused on managing existing non-accruals and acknowledges that while there may be ongoing markdowns, they are largely centered around known assets [67][70] Question: What are the risks associated with the new non-accrual, Renovo? - The underlying issues are related to inflation and consumer appetite, but operational execution issues are also present, which are considered easier to address [74][75] Question: Is the management fee waiver related to the HPS acquisition timing? - Management clarified that the fee waiver is a thoughtful approach to acknowledge NAV decline and is not specifically timed with the HPS acquisition [79] Question: What steps are being taken to maintain investment grade rating ahead of the 2026 debt maturity? - The company is focused on maintaining its investment grade rating and plans to access capital markets closer to the maturity date [85][88]