Financial Data and Key Metrics Changes - Adjusted net investment income decreased to $39 million or $0.45 per share from $45 million or $0.54 per share in the previous quarter [5][22] - Net asset value declined to $16.75 per share from $17.63 in the prior quarter [5] - Investments on non-accrual status increased to 4.67% of fair market value and cost, compared to 3.95% in the first quarter [6] Business Line Data and Key Metrics Changes - The company committed $407 million of capital across 32 investments, compared to 13 investments totaling $198 million in the previous quarter [15] - The weighted average yield on new debt investments was 9.5%, slightly down from 9.6% in the prior quarter [16] - The portfolio's weighted average interest coverage declined to 1.8 times from 2.1 times in the previous quarter [17] Market Data and Key Metrics Changes - The median EBITDA of portfolio companies increased to approximately $158 million, up $16 million from the prior quarter [17] - The leverage in portfolio companies remained steady at 5.4 times, below overall middle market leverage levels [17] Company Strategy and Development Direction - The company is focusing on larger, more diversified businesses that can withstand uncertain times, emphasizing investments at the top of the capital structure [16][28] - The company is actively managing non-accrual investments and has taken steps to align interests with shareholders, including amending the incentive fee structure and purchasing shares [10][27] Management's Comments on Operating Environment and Future Outlook - The management noted significant uncertainty in the trade environment due to potential new tariffs and their impact on portfolio performance [28] - There is a cautious outlook on M&A activity, with expectations that many lenders will be more conservative in capital deployment [28] - The company believes it is well-positioned to navigate the current market environment and deliver attractive risk-adjusted returns to shareholders [29] Other Important Information - The company successfully issued new unsecured bonds to refinance existing bonds and amended its senior secured revolving credit facility, reducing interest rates [9][24] - The joint ventures currently hold $440 million of investments, generating attractive annualized ROEs of approximately 10.6% [25] Q&A Session Summary Question: Did the company lean into any liquid markets, structured finance, or syndicated loans in April? - The company was somewhat active but remained cautious due to unresolved tariff situations, experiencing a sell-off in high yield bonds and senior loans [32][33] Question: How successfully has the company been focusing on larger and diversified businesses? - The market conditions have been challenging, but there is a return of larger borrowers into the direct lending market, improving the pipeline for issuing direct loans [36][39] Question: What is the expected run rate for net investment income given the markdowns and changes in non-accruals? - The company is focused on working through non-accrual situations and expects repayments to remain significant despite market volatility [46][52] Question: Is the yield reflective of what the portfolio should generate going forward? - The decline in yield is attributed to reference rate declines and new non-accruals, but the current yield is considered a decent run rate [58][59] Question: What is the expected ROE for the joint ventures over time? - The company aims to achieve an ROE in the 11% to 12% range, depending on the opportunities available [62]

Financial Data and Key Metrics Changes - Adjusted net investment income decreased to $39 million or $0.45 per share from $45 million or $0.54 per share in the previous quarter [5][22] - Net asset value declined to $16.75 per share from $17.63 in the prior quarter [5] - Investments on non-accrual status increased to 4.67% of fair market value and cost, compared to 3.95% in the first quarter [6] Business Line Data and Key Metrics Changes - The company committed $407 million of capital across 32 investments, compared to 13 investments totaling $198 million in the previous quarter [15] - The weighted average yield on new debt investments was 9.5%, slightly down from 9.6% in the prior quarter [16] - The median EBITDA of portfolio companies increased to approximately $158 million, a $16 million increase from the prior quarter [17] Market Data and Key Metrics Changes - The leverage in portfolio companies remained steady at 5.4 times, below overall middle market leverage levels [17] - The portfolio's weighted average interest coverage declined to 1.8 times from 2.1 times in the previous quarter [17] - The JVs generated attractive annualized ROEs of approximately 10.6% in aggregate [25] Company Strategy and Development Direction - The company is focusing on larger, more diversified businesses to mitigate risks in the current environment [16][28] - There is a heightened focus on underwriting and risk evaluation due to potential impacts from tariffs and inflation [28] - The company aims to capitalize on opportunities during market volatility, leveraging its experience in capital solutions [28] Management's Comments on Operating Environment and Future Outlook - The management noted significant uncertainty surrounding the trade environment and its impact on M&A activity [27][28] - There is an expectation of cautious capital deployment among lenders due to the health of existing portfolio companies [28] - The company believes it is well-positioned to navigate the current market environment and deliver attractive risk-adjusted returns [28] Other Important Information - The company successfully issued new unsecured bonds to refinance existing bonds and amended its senior secured revolving credit facility, reducing interest rates [9][24] - The company has ample liquidity of approximately $1.1 billion, including $98 million in cash and $1 billion in undrawn capacity on credit facilities [24] Q&A Session Summary Question: Did the company lean into any liquid markets, structured finance, or syndicated loans in April? - The company was somewhat active but remained cautious due to unresolved tariff situations [32][33] Question: How successfully has the company been focusing on larger and diversified businesses? - The market conditions have been challenging, but there is a return of larger borrowers into the direct lending market [36][39] Question: Is the current yield reflective of what the portfolio should generate going forward? - The current yield is influenced by reference rate declines and markdowns from non-accruals, but it is considered a decent run rate [58][59] Question: Will repayment activity slow down during this period of volatility? - There is an expectation that repayments may slow down due to market volatility, but significant repayments are still anticipated [52][53] Question: What is the expected ROE for the joint ventures over time? - The company aims to achieve an ROE in the 11% to 12% range, depending on the opportunity set [62]

Financial Data and Key Metrics Changes - Adjusted net investment income decreased to $39 million or $0.45 per share from $45 million or $0.54 per share in the previous quarter [5] - Net asset value declined to $16.75 per share from $17.63 in the prior quarter [5] - Investments on non-accrual status increased to 4.67% of fair market value and cost, compared to 3.95% in the first quarter [6] Business Line Data and Key Metrics Changes - The company committed $407 million of capital across 32 investments, compared to 13 investments totaling $198 million in the previous quarter [15] - The weighted average yield on new debt investments was 9.5%, slightly down from 9.6% in the prior quarter [16] - The median EBITDA of portfolio companies increased to approximately $158 million, up $16 million from the prior quarter [16] Market Data and Key Metrics Changes - The leverage in portfolio companies remained steady at 5.4 times, below overall middle market leverage levels [16] - The portfolio's weighted average interest coverage declined to 1.8 times from 2.1 times in the previous quarter [16] - The joint ventures generated an attractive annualized ROE of approximately 10.6% [24] Company Strategy and Development Direction - The company is focusing on larger, more diversified businesses that can withstand uncertain times [16] - There is a heightened focus on underwriting and risk evaluation due to potential impacts from tariffs and inflation [28] - The company is actively seeking opportunities in capital solutions or rescue financing during periods of market volatility [28] Management's Comments on Operating Environment and Future Outlook - The management noted significant uncertainty surrounding the trade environment and its potential impact on portfolio performance [27] - There is an expectation of cautious capital deployment among lenders due to the current economic outlook [28] - The company believes it is well-positioned to navigate the current market environment and deliver attractive risk-adjusted returns to shareholders [29] Other Important Information - The company successfully issued new unsecured bonds to refinance existing bonds and amended its senior secured revolving credit facility, reducing interest rates [8] - The company has ample liquidity of approximately $1.1 billion, including $98 million in cash and $1 billion in undrawn capacity on credit facilities [23] Q&A Session Summary Question: Did the company lean into any liquid markets, structured finance, or syndicated loans in April? - The company was somewhat active but remained cautious due to unresolved tariff situations [32] Question: How successfully has the company been focusing on larger and diversified businesses? - The company noted that while larger borrowers were initially seeking better pricing in the broadly syndicated loan market, there has been a return of larger borrowers to the direct lending market [34][38] Question: Should the company expect any slowing of repayment activity during this period of volatility? - The management anticipates that repayments will remain significant but acknowledges that volatility may lead to a slowdown in the future [52] Question: Is the current yield reflective of what the portfolio should generate going forward? - The management indicated that the current yield is a decent run rate, influenced by reference rate declines and new non-accruals [59] Question: What is the expected ROE for the joint ventures over time? - The management believes achieving an ROE in the 11% to 12% range is achievable, depending on the opportunity set [62]

Financial Performance - Net Asset Value (NAV) per share decreased slightly from $17.16 at the end of Q4 2024 to $17.04 at the end of Q1 2025[11] - Net investment income per share remained stable at $0.62 for Q1 2025, consistent with Q4 2024[11] - Adjusted net investment income per share was $0.58 in Q1 2025[11] - The annualized Return on Equity (ROE) from Net Investment Income was 14.4% for Q1 2025[10, 11] - The annualized ROE from Adjusted Net Income was 8.3% for Q1 2025[10, 11] Portfolio Composition and Activity - The fair value of investments was $3.412 billion as of March 31, 2025[8, 12, 13] - The portfolio consisted of 115 companies with an average investment size of $29.7 million[10] - First-lien debt investments accounted for 93% of the portfolio[10, 12, 23, 24] - Floating rate investments represented 97% of the portfolio[10, 12] - New investment commitments totaled $154.4 million in Q1 2025[12, 19, 20, 21] - Net repayment activity was $132.9 million in Q1 2025[21] Liquidity and Capital Structure - The company had approximately $1.013 billion of undrawn capacity on its revolving credit facility[10, 41] - Available liquidity was 5.8x greater than unfunded investment commitments[41] - Leverage at quarter-end was 1.18x, within the target range of 0.90x – 1.25x[10, 11, 13]