Financial Data and Key Metrics Changes - Full year 2025 adjusted net investment income (NII) was $1.22 per share, down from $1.52 in 2024 [4] - Annualized NII return on equity (ROE) for the year was 12.3%, compared to 14.5% in 2024 [5] - Fourth quarter adjusted NII was $0.25 per share, down from $0.30 in the previous quarter and $0.36 in the fourth quarter of 2024 [5] - Net realized losses for the quarter were $73.9 million or $0.87 per share, with net unrealized losses of $66.5 million or $0.78 per share [17] - NAV declined 19% to $7.07 per share as of December 31, 2025, from $8.71 as of September 30, 2025 [6] Business Line Data and Key Metrics Changes - As of December 31, 2025, non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost, compared to 5.6% at fair market value and 14.4% at cost for the fourth quarter of 2024 [6] - The portfolio had a fair market value of $1.5 billion invested across 141 companies, with 92.4% in senior secured loans [11] - The average size of new investments in 2025 was $5.8 million, down from $11.7 million at the end of 2024 [12] Market Data and Key Metrics Changes - The weighted average effective yield of the portfolio was 11.1%, down from 11.5% in the previous quarter [12] - Paydowns in the fourth quarter were $80.7 million, compared to $140 million in the prior quarter [14] Company Strategy and Development Direction - The company aims to improve credit quality by resolving challenged credits and repositioning the portfolio for attractive returns [21] - The strategy includes deploying capital selectively into senior secured first lien loans and building a diversified portfolio to reduce concentration risk [22] - The company is leveraging BlackRock's resources to enhance investment capabilities and expand the pipeline of opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disappointing write-downs in the fourth quarter but emphasized active management of the investment portfolio [21] - The company is focused on improving credit quality and executing its investment strategy, which includes increasing first lien investments to 87.4% of the portfolio [22] - Management noted that the road to recovery for challenged investments is rarely linear and requires careful monitoring [29] Other Important Information - The board declared a first quarter dividend of $0.17 per share payable on March 31, 2026 [10] - The company repurchased 515,869 shares during the fourth quarter at a weighted average price of $5.84 per share [10] Q&A Session Summary Question: At what point does it make sense to take more aggressive overall strategic adjustments to the BDC? - Management believes the best path forward is to focus on improving credit quality and executing the current investment strategy, which includes increasing first lien loans and diversifying the portfolio [26] Question: How should investors view the trend of restructurings not sticking? - Management indicated that restructurings can vary in outcome and emphasized the importance of a robust process to manage challenged investments [30] Question: Was there a change in personnel or procedures that led to the recent NAV drawdowns? - Management confirmed that there were no changes to the valuation policy and that the recent write-downs were concentrated among a few specific investments [34]

Main Street Capital (NYSE:MAIN) Q4 2025 Earnings call February 27, 2026 10:00 AM ET Speaker6Greetings, welcome to the Main Street Capital fourth quarter earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Zach Vaughan. Tha ...

Financial Data and Key Metrics Changes - Trinity Capital achieved record net investment income of $144 million or $2.08 per share in 2025, with a 15% increase in Q4 net investment income to $40 million compared to the same quarter last year [3][4] - The company's net asset value (NAV) grew 10% quarter-over-quarter to a record $1.1 billion, and total assets under management (AUM) increased to over $2.8 billion, up 38% year-over-year [4][5] - The return on equity was reported at 15.3%, ranking among the highest in the Business Development Company (BDC) space [15] Business Line Data and Key Metrics Changes - The funding for the year reached a record $1.5 billion, with Q4 funding amounting to $435 million, representing a 21% increase from the previous year [6] - The breakdown of Q4 fundings included 27% to sponsor finance, 25% to equipment financing, 20% to life sciences, 15% to tech lending, and 13% to asset-backed lending [20] Market Data and Key Metrics Changes - The company maintained strong credit quality, with non-accruals at less than 1% of the portfolio at fair value, totaling $15.2 million [4][20] - Portfolio companies collectively raised over $7.8 billion in equity during 2025, indicating strong access to capital [20] Company Strategy and Development Direction - Trinity Capital is focused on expanding its managed funds business and has established several co-investment vehicles to enhance liquidity and income for shareholders [4][11] - The company is strategically diversifying its portfolio, particularly in the AI and software sectors, while maintaining a disciplined underwriting approach [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities, particularly in the context of current volatility, and emphasized the importance of maintaining liquidity [35][40] - The management team believes that the best days are still ahead for Trinity Capital, supported by a diversified pipeline and disciplined investment strategy [15][14] Other Important Information - The company transitioned to a monthly dividend of $0.17 per share starting January 2026, maintaining the same aggregate quarterly payout [15] - Trinity Capital's stock has delivered a cumulative total return of 109% since its IPO, outperforming both the peer average of 70% and the S&P 500's 82% [5] Q&A Session Summary Question: Opportunities in Software Loans - The management acknowledged the potential to take advantage of turmoil in the software sector and mentioned being opportunistic in converting some loans to equipment finance [23][25] Question: Portfolio Concerns - Management indicated a focus on industries with disruptive technology and strong capital backing, maintaining a cautious approach to sectors not receiving equity dollars [30][31] Question: Strategic Opportunities Amidst Volatility - Management confirmed the intention to remain opportunistic and leverage liquidity to capitalize on market dislocations [35][36] Question: Fund Management Business Growth - Management expressed optimism about the growth of the fund management business, anticipating increased interest from investors seeking diversification [40][41] Question: Portfolio Breakdown and Credit Quality - Management provided insights into the portfolio's performance, noting low non-accrual rates and the strength of existing portfolio companies raising capital [50][56]

Financial Data and Key Metrics Changes - Trinity Capital achieved record net investment income of $144 million or $2.08 per share in 2025, with a 15% increase in Q4 net investment income to $40 million compared to the previous year [3][4] - The company's net asset value (NAV) grew 10% quarter-over-quarter to a record $1.1 billion, and total assets under management (AUM) increased to over $2.8 billion, up 38% year-over-year [4][5] - The return on equity was reported at 15.3%, among the highest in the BDC space, with a weighted average effective portfolio yield of 15.2% [15][16] Business Line Data and Key Metrics Changes - The funding breakdown in Q4 was as follows: 27% to sponsor finance, 25% to equipment financing, 20% to life sciences, 15% to tech lending, and 13% to asset-backed lending [20] - The managed funds business saw significant growth, with several co-investment vehicles established, contributing approximately $3.1 million or $0.04 per share of incremental net investment income in Q4 [4][17] Market Data and Key Metrics Changes - The company maintained strong credit quality, with non-accruals at less than 1% of the portfolio at fair value, and over 99% of debt investments performing at fair value [4][19] - Portfolio companies collectively raised more than $7.8 billion in equity during 2025, indicating strong access to capital [20] Company Strategy and Development Direction - Trinity Capital is focused on building a diversified platform with five complementary verticals, including sponsor finance, equipment finance, tech lending, asset-based lending, and life sciences, to drive growth and value creation [13][14] - The company is strategically positioned to capitalize on opportunities in the market, particularly in the software sector, by being opportunistic in its lending practices [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market volatility, emphasizing the importance of maintaining liquidity to seize opportunities [35][40] - The management team believes that the best days are still ahead for Trinity Capital, supported by a diversified pipeline and disciplined underwriting [15][14] Other Important Information - The company transitioned to a monthly dividend of $0.17 per share starting January 2026, maintaining the same aggregate quarterly payout [15] - Estimated undistributed taxable income is approximately $69 million, or $0.84 per share, which will be reinvested for shareholder benefit [15] Q&A Session Summary Question: Opportunities in Software Loans - Management acknowledged the potential to capitalize on turmoil in the software sector, indicating a willingness to convert some loans to equipment finance loans for better risk-adjusted returns [23][25] Question: Portfolio Concerns - Management stated that they focus on industries with disruptive technology and strong capital backing, and they continue to adapt their investment philosophy based on market trends [30][31] Question: Strategic Opportunities Amid Volatility - Management confirmed that they are open to exploring strategic opportunities if market conditions remain favorable, emphasizing their strong liquidity position [35][36] Question: Fund Management Business Growth - Management noted increased interest and inflows into their fund management business, viewing current market volatility as an opportunity to differentiate from larger players [40][41] Question: Portfolio Breakdown and Credit Quality - Management provided insights into the portfolio's credit quality, noting that non-accruals remain low and that they are actively working with legacy borrowers facing challenges [50][51]

The company’s management believes adjusted net investment income, adjusted net investment income per share, adjusted net income, and adjusted net income per share are useful to investors as additional tools to evaluate ongoing results and trends and to review our performance without giving effect to the amortization or accretion resulting from the new cost basis of the investments acquired and accounted for under the acquisition method of accounting in accordance with ASC 805, one-time purchase or nonrecurr ...

Michael Gross: Thank you, Shiraz, and thank you to everyone for joining our earnings call this morning. We are pleased to report that SLR Investment Corp.'s fourth quarter results solidified a strong year for the company, showcasing another quarter of broad stability in our portfolio, slow but steady portfolio growth, and a shift to asset-based lending investments with primarily liquid current assets as collateral that are supported by actively monitored borrowing bases. For those who have been following us ...

Tom McDonald: I have had the privilege of connecting with many of our stakeholders following the leadership transition, and I look forward to continuing that dialogue in the weeks and months ahead. In the fourth quarter, BBDC delivered strong net investment income accompanied by excellent credit performance within the Barings-originated portion of the portfolio. Origination activity across the platform during the fourth quarter reflected continued success in our core strategies. Net deployment was influence ...

Barings BDC (NYSE:BBDC) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsCasey Alexander - Managing DirectorElizabeth Murray - CFOFinian O'Shea - DirectorJoe Mazzoli - Head of Investor RelationsMatt Freund - PresidentRobert Dodd - DirectorTom McDonnell - CEOOperatorAt this time, I'd like to welcome everyone to the Barings BDC, Inc. conference call for the quarter and year ended December 31st, 2025. All participants are in listen-only mode. A question and answer session will follow the ...

Core Insights - Business Development Companies (BDCs) are often overlooked by Wall Street but provide substantial dividends, making them attractive for investors seeking high yields [1] Group 1 - BDCs are characterized by their ability to deliver large and robust dividends, appealing to individual investors [1] - The focus on high-yield investment opportunities is emphasized, indicating a trend towards seeking better returns in the current market [1]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted net investment income (NII) per share was $0.36, consistent with the previous quarter, resulting in a return on equity (ROE) of 9.7% [11][22] - Net asset value (NAV) per share decreased to $14.81 from $14.89, primarily due to write-downs on a few watchlist names, partially offset by share repurchases [11][24] - The company repurchased $148 million of stock, the largest repurchase in its history, which was accretive to NAV per share by approximately $0.05 [10][24] Business Line Data and Key Metrics Changes - OBDC had fundings of $820 million against $1.4 billion of repayments, resulting in lower net leverage at 1.19 times [14][15] - The portfolio is broadly diversified across 30 industries, with average position sizes of approximately 40 basis points [16] - Revenue and EBITDA growth for borrowers in the software sector was 10% and 16% respectively in Q4, outpacing other sectors [17] Market Data and Key Metrics Changes - The company executed asset sales totaling $1.4 billion, including $400 million from OBDC, at book value and an average price of 99.7, which is a strong endorsement of its valuation process [8][9] - Interest coverage ratios remained healthy at approximately 2 times, with a non-accrual rate decreasing to 1.1% at fair value [18][19] Company Strategy and Development Direction - The company terminated the proposed merger with OBDC II and opted for a significant asset sale to provide liquidity to shareholders [6][7] - The focus remains on disciplined capital allocation, with a strategy of buy and hold lending, while also being opportunistic in asset sales [10][9] - The company aims to maintain a strong credit profile and has received a Moody's upgrade to Baa2, reflecting its solid portfolio and liability management [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's credit quality, stating that losses remain low and borrower fundamentals are strong [27][29] - The company anticipates that lower base rates and tighter spreads will impact future earnings, but does not expect broad-based credit issues [27][29] - Management highlighted the importance of maintaining a stable dividend while evaluating the impact of the current rate environment on earnings [29][90] Other Important Information - The board declared a first-quarter base dividend of $0.37, to be paid on April 15, 2026 [23] - The company has authorized a new share repurchase program of up to $300 million, replacing the previous $200 million plan [24] Q&A Session Summary Question: Is OBDC II halting redemptions permanently? - Management clarified that they are not halting redemptions but are accelerating them, returning 30% of capital at book value to investors [34][35] Question: What is the most accretive use of capital today? - Management indicated that they are evaluating both stock buybacks and capital deployment into the market, given the stock price is trading below book value [40][42] Question: What is the appetite for new software loan purchases? - Management expressed confidence in their ability to differentiate between resilient and vulnerable software businesses, indicating a cautious approach to new investments in the sector [68][70] Question: What was the weighted average spread of the assets sold? - The weighted average spread of the sold portfolio was just over 500 basis points, consistent with the broader portfolio [75] Question: How does the mark received compare with previous fair value marks? - Management stated that the assets were sold at their marks, which have been valued close to par, validating their valuation process [87][88]