Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $16.6 million or $0.45 per share for Q1 2025, down from $20.5 million or $0.55 per share in Q4 2024, primarily due to lower base rates, the roll-off of one-time items, and reduced dividend income from the Logan JV [5][23][24] - The increase in loans on non-accrual rose to 3.5% of debt investments at cost and fair value, with four new names added, representing less than 1.2% of the total portfolio at fair value [6][12] Business Line Data and Key Metrics Changes - Gross deployment in Q1 totaled $105 million, with 98% in first lien investments, compared to approximately $78 million in exits, resulting in a net deployment of approximately $27 million [17] - The weighted average yield of income-producing securities at cost decreased by 50 basis points quarter over quarter to 10.4% [20] Market Data and Key Metrics Changes - The company noted a slowdown in M&A activity due to tariff announcements, leading to a backlog of deal activity [8] - The overall direct material exposure of the portfolio to tariffs is modest at 4%, with a focus on service businesses with low material costs [18] Company Strategy and Development Direction - The company continues to focus on first lien loans, which represent 91% of the portfolio at fair value, and aims to invest in non-cyclical industries [11] - The management emphasized a disciplined credit underwriting approach and capital preservation, particularly in light of market volatility [30] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current earnings reflect a near-term baseline, with potential tailwinds from asset-based facility repricing and rightsizing completed at the beginning of the quarter [6][7] - The company remains optimistic about its ability to weather potential volatility due to its diversified portfolio and strong relationships with private equity sponsors [20] Other Important Information - The company declared a regular dividend of $0.42 per share for Q2 2025, along with a special dividend related to undistributed taxable income [12][29] - The stockholders' equity was reported at $727 million, resulting in a net asset value per share of $19.62 [26] Q&A Session Summary Question: Regarding the new accruals this quarter, specifically New Era of Technology - Management clarified that the mark reflects the latest view on earnings outlook and that the company has not yet restructured [34][36] Question: What is Crescent's approach to resolving non-accrual situations? - Management stated that the primary goal is to preserve capital, and they consider various options including restructuring or selling the company [42][44] Question: Can you explain the significant decline in the Logan dividend? - Management explained that the decline was due to timing mismatches in cash distributions and the impact of overcollateralization tests within the CLO structure [50][56] Question: What percentage of the portfolio consists of Crescent-led deals? - Management indicated that about 8% of the total fair value consists of acquired assets, while 92% are loans originated by Crescent [46] Question: What is the sentiment towards the overall market and outlook for spreads? - Management noted significant inflows into non-traded BDCs, which are putting pressure on spreads, but they remain selective in their investment approach [78][82]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $16.6 million or $0.45 per share for Q1 2025, down from $20.5 million or $0.55 per share in Q4 2024, primarily due to lower base rates, the roll-off of one-time items, and reduced dividend income from the Logan JV [5][23][24] - The weighted average yield of income-producing securities at cost decreased by 50 basis points quarter over quarter to 10.4% [20] - GAAP earnings per share for Q1 2025 was $0.11, with stockholders' equity at $727 million, resulting in a net asset value (NAV) per share of $19.62 [26] Business Line Data and Key Metrics Changes - Gross deployment in Q1 totaled $105 million, with 98% in first lien investments, compared to approximately $78 million in exits, resulting in a net deployment of approximately $27 million [16][17] - The investment portfolio consists primarily of first lien loans, representing 91% of the portfolio at fair value, with a focus on non-cyclical industries [11] Market Data and Key Metrics Changes - The company noted a slowdown in M&A activity due to tariff announcements, leading to a wait-and-see approach from sponsors [7] - The overall direct material exposure of the portfolio to tariffs is modest at 4%, with most businesses serving domestic markets [18] Company Strategy and Development Direction - The company emphasizes a disciplined credit underwriting approach, capital preservation, and strong free cash flow generation to navigate market volatility [30] - The focus remains on high-quality assets and maintaining a stable NAV rather than chasing yield [82] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the market, noting that while there are attractive investment opportunities, the recent tariff announcements have created uncertainty [8][78] - The company anticipates potential near-term tailwinds from asset-based facility repricing and rightsizing completed at the beginning of the quarter [6] Other Important Information - The company declared a regular dividend of $0.42 per share for Q2 2025, along with a special dividend related to undistributed taxable income [12][29] - The weighted average loan-to-value across investments is 39%, indicating a conservative approach to leverage [11] Q&A Session Summary Question: Regarding the new accruals this quarter, does it reflect the restructuring recently announced for that company? - Management clarified that the company has not yet restructured and that the mark reflects the latest view on earnings outlook [34][37] Question: What is Crescent's overall approach to working toward a resolution for non-accruals? - The company prioritizes capital preservation and may consider various options, including restructuring or selling the company, depending on the situation [42][43] Question: How much of the portfolio consists of Crescent-led or originated deals? - Approximately 8% of the total fair value consists of acquired assets, while 92% are loans originated by Crescent [45] Question: Can you explain the significant sequential decline in the Logan dividend? - Management explained that the decline was due to timing mismatches in cash flows and the nature of the equity tranche, which can be volatile during the deleveraging period [48][54] Question: Were there any warning signs for the new non-accruals? - Management indicated that the non-accruals were previously on the watch list, and developments at the respective borrowers warranted the classification [59]

Capital Southwest (CSWC) Q4 2025 Earnings Call May 15, 2025 11:00 AM ET Speaker0 Thank you for joining today's Capital Southwest Fourth Quarter Fiscal Year twenty twenty five Earnings Call. Participating on the call today are Michael Sarner, Chief Executive Officer Chris Reberger, Chief Financial Officer Josh Weinstein, Chief Investment Officer and Amy Baker, Executive Vice President Accounting. I will now turn the call over to Amy Baker. Speaker1 Thank you. I would like to remind everyone that in the cours ...

Investcorp Credit Management BDC (ICMB) Q3 2025 Earnings Call May 14, 2025 10:00 AM ET Company Participants Walter Tsin - Principal & CFOSuhail Shaikh - President & CEOAndrew Muns - COOPaul Johnson - Vice PresidentChristopher Nolan - SVP - Equity Research Operator Good morning, ladies and gentlemen, and welcome to today's Investcorp Credit Management BDC's quarter ended 03/31/2025 earnings call. It is now my pleasure to turn the floor over to Walter Tin, CFO. Walter Tsin Thank you, operator. Welcome everyon ...

Blue Owl Capital Corporation (OBDC) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Company Participants Michael Mosticchio - Principal & Head of BDC Investor RelationsCraig Packer - Co-President & Chief Executive Officer of each of the Blue Owl BDCsLogan Nicholson - MD and President - Blue Owl BDCJonathan Lamm - MD and CFO & COO of Blue Owl BDCBrian Mckenna - Director - Equity ResearchMickey Schleien - MD - Equity ResearchMaxwell Fritscher - Equity Research Associate Conference Call Participants Casey Alexa ...

Blackstone Secured Lending Fund (BXSL) Q1 2025 Earnings Call May 07, 2025 09:30 AM ET Company Participants Justin Farshidi - PrincipalBrad Marshall - Trustee, Chairman & Co-CEOJonathan Bock - Co-Chief Executive OfficerCarlos Whitaker - PresidentTeddy Desloge - CFOMelissa Wedel - Vice President, Equity ResearchHeli Sheth - Equity Research AssociatePaul Johnson - Vice PresidentMaxwell Fritscher - Equity Research Associate Conference Call Participants Finian O'shea - Analyst Operator Thank you for standing by. ...

Blackstone Secured Lending Fund (BXSL) Q1 2025 Earnings Call May 07, 2025 09:30 AM ET Speaker0 Thank you for standing by. You are on hold for the Blackstone Secured Lending First Quarter twenty twenty five Earnings Call. At this time, we are gathering additional participants and should be underway shortly. We appreciate your patience and ask that you continue to hold. Good day, and welcome to the Blackstone Secured Lending First Quarter twenty twenty five Earnings Call. Today's call is being recorded. At th ...

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) per share was $0.39, corresponding to a return on equity of 10.4% [6] - Adjusted net income per share was $0.30, with a return on equity of 8%, including $0.09 per share of adjusted net realized and unrealized losses [6][20] - Net asset value (NAV) per share decreased by $0.09 to $15.04, primarily due to net unrealized and realized losses [20][24] - Debt to equity ratio remained stable at 1.16 times, with average net leverage at 1.17 times, within the targeted range [20][32] Business Line Data and Key Metrics Changes - Gross originations for the quarter were $298.9 million, with $159.5 million funded at close, reflecting a conservative approach to new investments [13] - The investment income yield was robust at 10.8%, despite a sequential decline of about 40 basis points [12][28] - The weighted average spread on new originations increased by 30 basis points compared to previous quarters [15][24] Market Data and Key Metrics Changes - The company experienced a challenging macro environment characterized by policy uncertainty and decreased consumer confidence [5][8] - The portfolio remains highly diversified, with 90% of investments in the highest performing internal rating categories [11][25] - Nonaccrual investments increased slightly to 70 basis points of total investments at fair value, with nine total nonaccrual investments [16][29] Company Strategy and Development Direction - The investment strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [3][36] - The company aims to navigate uncertainty by selectively looking for new loans and focusing on early detection and intervention for underperforming borrowers [8][39] - The management emphasizes the importance of maintaining a resilient strategy and preparing for multiple economic scenarios [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted that previous macroeconomic predictions have often proven incorrect, emphasizing the need for resilience and adaptability [34][35] - The company believes its portfolio is relatively insulated from direct impacts of tariffs and trade-related issues due to the nature of its borrowers [36][37] - Management is actively monitoring the portfolio for tariff-related risks and engaging with sponsors to mitigate potential vulnerabilities [38][39] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.3% based on NAV [19] - The company has a strong liquidity position with approximately $1.2 billion available from unrestricted cash and undrawn commitments [32] Q&A Session Summary Question: How should we think about the base payout going forward? - Management acknowledged the challenges of spread and base rate compression but expressed confidence in potential near-term levers to support the dividend [42][44] Question: Are repayments trending low, and what is the focus on defending names? - Management noted a significant deceleration in deal activity and emphasized a cautious approach to new investments while defending existing credits [50][51] Question: What is the status of the portfolio at risk for tariffs? - Management identified a small portion of the portfolio with potential exposure to tariffs but believes the impact will be manageable [55][66] Question: How is refinancing activity affecting the portfolio? - Management observed a shift from a borrower-friendly to a lender-friendly market, reducing concerns about significant refinancing activity in the near term [68][69] Question: Is there any noticeable trend in lender scale during recent market volatility? - Management indicated that the current environment plays to their strengths, with sponsors showing a preference for working with established lenders [70]

Blue Owl Capital Corporation (OBDC) Q4 2024 Earnings Call February 20, 2025 10:00 AM ET Company Participants Michael Mosticchio - Principal & Head of BDC Investor RelationsCraig W. Packer - Co-PresidentLogan Nicholson - MD and President - Blue Owl BDCJonathan Lamm - MD and CFO & COO of Blue Owl BDCMickey Schleien - MD - Equity ResearchPaul Johnson - Vice President Conference Call Participants Brian Mckenna - AnalystCasey Alexander - Senior Vice President & Research AnalystRobert Dodd - AnalystFinian O'shea ...