Core Insights - The MSCI "2025 General Partner Survey" indicates that as capital becomes increasingly constrained, private equity, private credit, and infrastructure fund managers find it more challenging to meet the rising expectations of institutional investors [1] Fundraising Challenges - 60% of small General Partners (GPs) and 46% of large GPs identify fundraising difficulties as one of their top two challenges [1] - 30% of surveyed GPs attribute fundraising difficulties to a harsh market environment [1] Investment Opportunities - Over half of GPs believe that finding attractive investment opportunities has become increasingly difficult [1] - 47% of respondents cite declining deal quality as the primary reason for not securing suitable transactions [1] - 60% of respondents indicate that the diversification of regions and industries complicates due diligence processes [1] Data and Performance Management - One-third of GPs report a lack of access to reliable private asset data [1] - 26% of surveyed GPs express the need for better standardization, data integration, and customization in performance management [1] - Many GPs still rely on fragmented and manual data infrastructures, limiting business scalability [1] Investor Expectations and Reporting - 68% of large GPs and 52% of small GPs list managing investor expectations and reporting requirements as one of their top five challenges [1] - Key pressure points include: - Customized reporting: 41% of large GPs and 33% of small GPs highlight challenges arising from differing requirements across clients and jurisdictions [1] - Benchmarking difficulties: 40% of large GPs find it hard to select appropriate benchmarks, while 57% of small GPs face issues with the accuracy and credibility of reporting data [1] - Timely information transparency: 18% of large GPs and 17% of small GPs report difficulties in achieving timely updates and disclosures [1]

Core Viewpoint - Hyperscale Data, Inc. is transitioning to become a pure-play AI infrastructure company by divesting Ault Capital Group, expected to be completed by December 31, 2025 [1][6]. Group 1: Leadership Changes - Milton "Todd" Ault III will resign as Executive Chairman but remain a director after the divestiture [1][2]. - William Horne will continue as CEO and assume the role of Chairman of the Board, focusing on the company's transformation into a data center operator for high-performance computing services [3][4]. Group 2: Business Focus Post-Divestiture - After the divestiture, Hyperscale Data will solely operate data centers to support high-performance computing services, while potentially continuing Bitcoin mining [6]. - The company will continue to provide mission-critical products through ACG until the divestiture, including an AI software platform and services across various industries [6]. Group 3: Shareholder Information - The divestiture will involve a voluntary exchange of Series F Preferred Stock for shares of ACG, allowing stockholders to become shareholders of ACG upon completion [7].

Summary of Apollo Global Management (APO) Conference Call Company Overview - Apollo Global Management is one of the world's largest alternative investment managers with nearly $800 billion in assets under management [2] Macro Economic Insights - Recent months have shown a normalization of investor sentiment and a fading uncertainty regarding the trade war, which is reflected in market performance [5] - The market anticipates fewer interest rate cuts than previously expected, with a likelihood of higher rates persisting for an extended period [6][7] - Higher interest rates are generally favorable for credit markets, leading to a constructive outlook for Apollo's portfolio [8] Capital Solutions Business - Apollo has successfully built a capital solutions revenue stream, which is now a significant part of its business model [11] - The capital solutions business is expected to grow, with a target of achieving $1 billion in annual revenue within five years [14] - The business has shown stability with consistent revenue generation, having achieved over $100 million in revenue for ten consecutive quarters [14] Private Credit Expansion - Apollo views the private credit market as a vast opportunity, estimating it to be a $40 trillion marketplace, primarily in investment-grade and asset-backed financing [21] - The adoption of private credit is still in its early stages, with insurance companies being the most advanced adopters [22] Origination Strategy - Apollo has doubled its origination volume over the past few years, currently running at over $200 billion per year, with expectations to reach $275 billion in the next four to five years [26] - The origination strategy is supported by 16 platforms, which are crucial for driving growth and providing financing solutions [25][30] Fundraising Environment - The fundraising environment is evolving, with challenges in traditional institutional capital raising due to difficult exit conditions [31][34] - Apollo is focusing on expanding its global wealth opportunities and partnerships with traditional firms to access new markets [32] Private Wealth Strategies - Apollo has launched various strategies in the private wealth sector, raising $12 billion last year and continuing to see strong demand [40] - The firm is experimenting with different fund structures across various markets to optimize distribution [42] Annuity Sales Outlook - Annuity sales have tripled over the last five years, with Apollo being the number one writer of annuities [61] - The firm anticipates stable growth in annuity sales, supported by demographic trends and the increasing number of retirees [62] Spread-Related Earnings - Apollo expects mid-single-digit growth in spread-related earnings for the year, influenced by tight asset spreads and competitive pressures in the annuity market [66] - The pace of investments has been cautious, with a focus on deploying capital when favorable conditions arise [70] Conclusion - Apollo Global Management is well-positioned in the current economic environment, with a strong focus on capital solutions, private credit, and origination strategies, while navigating challenges in fundraising and market competition [8][31][66]

Financial Data and Key Metrics Changes - The company reported strong portfolio performance with positive NOI and EBITDA growth, indicating resilience in its financials [3][4] - The alternative credit business is valued at $40 billion, reflecting a robust position in the market [3] Business Line Data and Key Metrics Changes - Direct lending portfolios maintain a loan-to-value ratio of 42%, suggesting a strong backing by institutional equity [7][30] - The company has seen a 61% increase in deployment despite a 7% decline in US M&A volumes, showcasing effective management of capital [25][26] Market Data and Key Metrics Changes - Credit spreads have widened by 50 to 75 basis points post-Liberation Day, but the total return in direct lending remains attractive at around 10% [18][21] - The secondary market for private equity is experiencing significant growth, with an estimated $160 billion in secondary deployment last year, indicating a healthy demand for liquidity solutions [62] Company Strategy and Development Direction - The acquisition of GCP enhances the company's position in industrial real estate and digital infrastructure, aligning with its strategic roadmap for growth in Asia and data centers [57][58] - The company aims to double its asset-based finance business to $75-80 billion, focusing on sub-investment grade and investment grade opportunities [36][38] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about the economy, noting strong fundamentals despite concerns over inflation and economic growth [4][5] - The company maintains its five-year fee-related earnings growth guidance of 16% to 20%, reflecting confidence in its business model and market position [85][86] Other Important Information - The company emphasizes the importance of maintaining a balance between retail and institutional fundraising to ensure sustainable growth and performance [78][79] - Management highlights the educational efforts made to improve investor understanding of asset-based finance, which is crucial for market expansion [42][44] Q&A Session Summary Question: What are the biggest risks to the private credit market? - Management believes that private credit is one of the last places to see losses due to the high quality of borrowers and the structure of the market [8][9] Question: How is the integration of the GCP acquisition progressing? - The acquisition is on track to enhance the company's capabilities in industrial real estate and data centers, with significant growth potential identified [57][58] Question: How does the company manage the conflict between retail and institutional flows? - The company focuses on building investment capacity to ensure that it can meet the demands of both retail and institutional investors without compromising performance [78][79]

FORT LAUDERDALE, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- via IBN -- FAVO Capital, Inc. (OTC: FAVO), a publicly traded private credit firm specializing in merchant cash advances (MCAs) and revenue-based financing for underserved small and medium-sized businesses (SMBs), today announced the voluntary conversion of all outstanding Super Voting Series C Preferred Shares into common stock. The corporate governance action simplifies the Company’s capital structure and aligns voting rights more closely with public ...

Financial Data and Key Metrics Changes - The company declared and paid a $0.25 per share dividend in Q1 2025, representing an annualized dividend yield of 14.3% based on the closing share price on 05/06/2025 [4] - Adjusted net investment income was $4.2 million or $0.19 per share, down from $6.2 million or $0.29 per share in the previous quarter [16][17] - NAV decreased to $186.9 million or $8.63 per share from $191.8 million or $8.85 per share at the end of Q4 2024 [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $430.6 million, a decrease of $26.4 million from $457 million at the end of Q4 2024, consisting of debt and equity investments in 85 portfolio companies [12] - Investment income totaled $11.6 million in Q1 2025, down from $14 million in Q4 2024, primarily due to lower effective yield and a decrease in average invested assets [20] Market Data and Key Metrics Changes - Middle market direct lending volume in Q1 2025 was down 22% from Q4 2024 but up 16% year-over-year [12] - The weighted average effective yield on the portfolio's debt and equity investments was 9.2% at 03/31/2025, compared to 10.2% at 12/31/2024 [17] Company Strategy and Development Direction - The company focuses on maintaining asset quality and positioning the portfolio for long-term performance amid market volatility [4][8] - The strategy includes supporting existing portfolio companies and selectively deploying capital into recession-resistant industries [9][10] - The partnership with Wendell Group aims to drive value for shareholders while maintaining operational independence [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio and the ability to navigate near-term income volatility [27] - The company anticipates that net investment income will be shy of current dividend levels in the short run, relying on accumulated spillover income to support dividends [30] Other Important Information - The company ended the quarter with reduced balance sheet leverage, with a leverage ratio of 1.45 times debt to equity compared to 1.53 times at the end of 2024 [16] - Total expenses for Q1 2025 were $7.6 million, down from $8 million in Q4 2024, primarily due to a decline in interest expense [24] Q&A Session Summary Question: Sustainability of the dividend - Management is evaluating the dividend in light of current earnings and anticipates that net investment income will be shy of current dividend levels in the short run, using spillover income to support the dividend [29][30] Question: Stock buybacks - The company has historically not supported stock buybacks, focusing instead on maintaining leverage and supporting portfolio companies [31] Question: Fee waivers - Management clarified that they continue to support MRCC and have waived incentive fees in the current and prior quarters, indicating ongoing support [35][36] Question: SLF structure and future - Management is evaluating whether to continue allowing the SLF portfolio to run off or to deleverage it, expressing a lack of constructive outlook on this end of the market [38][39] Question: Strategic evolution post-partnership - The company will continue to evolve strategically to create value for shareholders, with ongoing evaluations of strategic opportunities [42][43]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated net investment income of $0.67 per share and adjusted net investment income of $0.65 per share, compared to public guidance of approximately $0.66 and $0.64 per share respectively [11] - The company ended the quarter with approximately $3.2 billion of available liquidity [11] - The net asset value per share decreased from $23.64 at the end of Q4 2024 to $23.37 at the end of Q1 2025 [30] Business Line Data and Key Metrics Changes - The company originated approximately $2 billion of new investments during the first quarter, with 45% focused on add-on financings to existing portfolio companies [18] - New investments included approximately 63% in first lien loans, 19% in asset-based finance, and 15% in capital calls to the joint venture [19] - The weighted average yield on accruing debt investments decreased to 10.8% as of March 31, down from 11% at the end of Q4 2024 [28] Market Data and Key Metrics Changes - Approximately 8% of the portfolio could have direct exposure to tariff policies, while low to mid single-digit exposure to DOGE is estimated [15] - Non-accruals represented 3.5% of the portfolio on a cost basis and 2.1% on a fair value basis, showing slight improvement from 3.7% and 2.2% respectively at the end of Q4 2024 [21] Company Strategy and Development Direction - The company aims to maintain a stable income for investors by keeping a consistent distribution strategy, with a declared second quarter distribution of $0.70 per share [11] - The focus remains on upper middle market companies with EBITDA between $50 million and $150 million, which are believed to have more resilience during challenging periods [20] - The company is actively managing exposure to tariffs and has exited two portfolio companies deemed to have higher risks related to tariffs [16] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the worsening economic outlook and increased volatility in debt and equity markets [8] - The expectation is that the macroeconomic environment will stabilize by early next year, providing clearer insights into interest rates and other economic drivers [10] - The management remains cautious about the potential for a recession but believes that the company is well-positioned to navigate the current uncertainties [49] Other Important Information - The company closed on its second middle market CLO, raising $380 million of low-cost secured debt [33] - The management team has amended the Morgan Stanley funding facility, reducing the spread and extending the maturity date [33] Q&A Session Summary Question: Timing of deployments and rate changes impact - Management noted that the origination number was satisfactory and that the decline in rates has mostly flowed through as of the end of Q1 [38][40] Question: Market share and competitive environment - Management indicated that they are gaining market share through diversified origination sources and strong sponsor relationships, although M&A activity has slowed [41][43] Question: Macro group insights on recession odds - The macro group sees a higher likelihood of a recession, albeit potentially muted, and is actively monitoring economic indicators [48] Question: Yield compression expectations - Management acknowledged the potential for additional yield compression as the portfolio churns, with new money yields expected to be lower than previous repayments [50][52] Question: Asset-based financing risks - Management highlighted that consumer-related risks in the asset-based finance portfolio are being monitored, with a focus on secured, high FICO score borrowers [62] Question: Interest coverage trends - Management explained that the lag effect in interest coverage metrics is due to the timing of rate changes and portfolio adjustments [84]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated net investment income of $0.67 per share and adjusted net investment income of $0.65 per share, slightly above public guidance of $0.66 and $0.64 per share respectively [11] - The total investment income decreased by $7 million quarter over quarter to $400 million, primarily due to two fewer days in the first quarter compared to the fourth quarter and the paydown of higher yielding investments [29] - The net asset value per share decreased from $23.64 at the end of Q4 2024 to $23.37 at the end of Q1 2025 [31] Business Line Data and Key Metrics Changes - The company originated approximately $2 billion in new investments during Q1 2025, with 45% focused on add-on financings to existing portfolio companies [19] - New investments included approximately 63% in first lien loans, 1% in other senior secured debt, 19% in asset-based finance, 15% in capital calls to the joint venture, and 2% in equity and other investments [20] - Non-accruals represented 3.5% of the portfolio on a cost basis and 2.1% on a fair value basis, showing slight improvement from 3.7% and 2.2% respectively at the end of Q4 2024 [22] Market Data and Key Metrics Changes - Approximately 8% of the portfolio could have direct exposure to tariff policies, with low to mid single-digit exposure to DOGE [14] - The weighted average yield on accruing debt investments decreased to 10.8% as of March 31, down from 11% at the end of Q4 2024 [29] - The portfolio companies reported a weighted average year-over-year EBITDA growth rate of approximately 10% [21] Company Strategy and Development Direction - The company aims to maintain a stable income for investors by keeping a healthy balance of spillover income during periods of higher interest rates [8] - The focus remains on investing in high-quality companies with strong defensive positions, particularly in the upper middle market [21] - The company is actively managing exposure to tariffs and has exited two portfolio companies deemed to have higher risks related to tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic outlook has worsened, with increased volatility in debt and equity markets and major geopolitical risks [7] - The expectation is that the macroeconomic environment will stabilize by early next year, providing clearer insights into interest rates and other economic drivers [9] - The company anticipates that the second quarter of 2025 GAAP net investment income will approximate $0.64 per share, with adjusted net investment income expected to be around $0.62 per share [32] Other Important Information - The company closed on its second middle market CLO, raising $380 million of low-cost secured debt [33] - As of March 31, 2025, the company had approximately $3.2 billion in available liquidity [34] Q&A Session Summary Question: Timing of deployments and rate changes impact - Management indicated that the origination number was satisfactory and that the declining rates have mostly flowed through as of the end of Q1 [38][39] Question: Pipeline activity and market share - Management noted that while the M&A market has slowed, they continue to benefit from a large existing book and diversified origination sources [41][42] Question: Macro group insights on recession odds - Management acknowledged that the chances of a recession are more likely than not, but it could be muted [46][48] Question: Yield compression expectations - Management confirmed that additional yield compression is expected as the portfolio churns, with new money yields lower than previous repayments [49][51] Question: Preferred leverage ranges - Management stated that the target leverage range remains unchanged, with a focus on diversified funding sources [60] Question: Asset-based financing risks - Management highlighted that consumer risk in the asset-based finance portfolio is small, with a focus on secured, higher FICO score risks [62] Question: Continued strength in ABF group - Management indicated that while ABF dividends may vary, there is continued strength in the joint venture's dividends [70] Question: Trends in portfolio leverage and interest coverage - Management explained that the divergence in trends is likely due to a lag effect in interest coverage calculations [82][84] Question: Deal activity in different market segments - Management suggested that larger company activity may be more muted due to reliance on a more active M&A market [87]

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, reflecting a 30% increase year-over-year [15] - The net asset value (NAV) grew to $833 million, up from $823 million at the end of the previous year [17] - The effective yield on the portfolio was 15.3%, while the core yield was 14.1% [15] - The NAV per share decreased to $13.05 from $13.35, primarily due to the early retirement of convertible notes [17][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] - In Q1, funding breakdown was 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 a strong investment pipeline with $623 million in unfunded commitments as of the end of Q1 [12] - The average internal credit rating for the portfolio stood at 2.9, indicating strong performance [26] - The company’s largest industry exposure is finance and insurance, representing 16.9% of the portfolio at cost [24] Company Strategy and Development Direction - The company is focused on building a resilient asset management business that can withstand market fluctuations [8] - The internally managed structure aligns the interests of management and shareholders, promoting growth and returns [9] - The company aims to capitalize on new opportunities in the private credit space, particularly in late-stage VC and lower middle market [10] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring macroeconomic conditions, including tariff impacts on portfolio companies, and has found limited exposure [6][22] - The company is committed to maintaining credit quality and has not seen an unusual uptick in requests for amendments or delayed payments [7] - Management expressed confidence in the ability to cover dividends and grow NAV, despite recent earnings fluctuations [71][72] Other Important Information - The company received a BAA3 investment grade rating from Moody's, which is expected to open access to cheaper capital [11][19] - The company raised $31 million from its equity ATM program at an average premium of 17% to NAV [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 [31][32] Question: What is the expectation for payoffs in the upcoming quarters? - Management indicated that normal payoffs have resumed and are expected to help with earnings [34] Question: What was found regarding tariff impacts on medical devices? - Management reported low tariff impact on the life sciences portfolio, with no alarming findings [36] Question: Why were commitments at a slower pace this quarter? - Management chose to slow originations to focus on portfolio health and assess the impact of tariffs [44] Question: How does the company view lower yields in the portfolio? - Management believes the lower yields are a result of rate changes and a shift towards more mature sponsor finance deals, which provide stability [60] Question: What is the current status of revolver draws or liquidity issues? - Management reported no uptick in requests for additional capital from borrowers [68] Question: How committed is the company to maintaining or increasing dividends? - Management is focused on covering and potentially increasing dividends, with plans to build NAV first [71][72]

FORT LAUDERDALE, Fla., May 06, 2025 (GLOBE NEWSWIRE) -- via IBN -- FAVO Capital, Inc. (OTC: FAVO), a rapidly growing private credit platform focused on revenue-based funding for small and medium- sized businesses (SMBs), today announced that it has secured an $8 million Series A Preferred equity investment from Stewards Investment Capital, a global asset manager with deep expertise in fintech and private credit. Vincent Napolitano, CEO of FAVO Capital said, "Stewards has been a trusted partner, and this fun ...