Financial Data and Key Metrics Changes - For the quarter ended September 30, core net investment income was $0.15 per share compared to total distributions of $0.24 per share [5] - As of September 30, the NAV was $7.11 per share, down 3.4% from $7.36 per share in the prior quarter [13] - The debt to equity ratio was 1.6 times as of September 30 [13] Business Line Data and Key Metrics Changes - The portfolio totaled $1.3 billion, with $186 million invested in nine new and 54 existing portfolio companies during the quarter [11] - The weighted average yield on debt investments was 11% [14] - The median leverage ratio on debt securities was 4.5 times, and the median interest coverage ratio was 2 times [7][14] Market Data and Key Metrics Changes - The company noted a steady increase in transaction activity in the private middle market lending sector, which is expected to lead to higher loan origination volumes [6] - In the core middle market, pricing on high-quality first lien loans was several plus $475-$525 [7] Company Strategy and Development Direction - The company is focused on rotating out of equity positions and redeploying capital into interest-bearing debt investments to increase core net investment income [5] - The strategy includes maintaining the current dividend level in the near term due to a significant balance of undistributed spillover income [6] - The company aims to find investment opportunities in growing middle market companies with high free cash flow conversion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increase in transaction activity leading to opportunities for equity rotation and new income-producing investments [7] - The company remains committed to capital preservation and a disciplined investment approach, aiming for compelling risk-adjusted returns [12] - Management noted that the M&A market is starting to pick up, which could facilitate equity rotation [50] Other Important Information - The company has a significant balance of undistributed spillover income amounting to $48 million or $0.73 per share, which will be used to cover shortfalls in net investment income versus the dividend [6] - The PSLF joint venture portfolio totaled $1.3 billion, contributing significantly to core net investment income [11] Q&A Session Summary Question: Why not right-size the dividend today? - Management is constantly evaluating the dividend and has substantial spillover income that needs to be paid out, balancing equity rotation and dividend policy [19] Question: Any updates on realization events for equity positions? - Management noted increased activity and is hopeful for rotation opportunities, but nothing specific was announced [21] Question: What types of deals are being seen? - The company is seeing a mix of add-on delayed draw term loans and new platform deals, with a focus on existing companies performing well [42] Question: How does the company view dividend recaps? - Dividend recaps are approached cautiously, with a focus on alignment of interests and substantial equity beneath the company [47] Question: What are the trends in the private equity space? - Management indicated that the M&A market is starting to stabilize, which could lead to more equity rotation opportunities [50]

Financial Data and Key Metrics Changes - For the quarter ended September 30th, core net investment income was $0.28 per share, with GAAP net investment income also at $0.28 per share [5][16] - Net asset value (NAV) decreased by 1.2% to $10.83 per share from $10.96 per share in the previous quarter [16] - The debt to equity ratio was reported at 1.6 times, which was later reduced to 1.4 times after asset sales [16][17] Business Line Data and Key Metrics Changes - The portfolio grew to $2.8 billion, up from $2.4 billion in the prior quarter, indicating a strong increase in assets under management [12] - The weighted average yield on debt investments was 10.2%, with approximately 99% of the debt portfolio being floating rate [17] - The portfolio maintained a median leverage ratio of 4.5 times and a median interest coverage of 2 times [9][18] Market Data and Key Metrics Changes - The pricing on high-quality first lien term loans was reported at SOFR plus 475-525 basis points, with reasonable leverage and meaningful covenant protections [8][9] - The company noted a steady increase in transaction activity in the private middle market lending sector, which is expected to lead to higher loan origination volumes [8] Company Strategy and Development Direction - The company is focused on enhancing earnings power through scale, diversification, and disciplined capital deployment, as evidenced by a $250 million portfolio acquisition and the formation of a new joint venture [5][6] - The goal for the new joint venture, PSSL2, is to grow it to over $1 billion in assets, similar to existing joint ventures [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting opportunities for capital deployment in core middle market companies with lower leverage and higher spreads [8][11] - The company remains committed to delivering a stable dividend stream while preserving capital and creating long-term value for stakeholders [19] Other Important Information - The company has a strong credit quality track record, with a loss ratio on invested capital of only 11 basis points annually since inception [12] - The portfolio is well-diversified, comprising 164 companies across 50 industries, with a focus on sectors that are recession resilient [10][12] Q&A Session Summary Question: How did the portfolio acquisition come about? - The acquisition was part of a joint venture with a third party, involving assets that were well-known to the company, which originated a couple of years ago [21][22] Question: Are there more opportunities like the portfolio acquisition? - Management indicated that they are always looking for similar opportunities and emphasized the value of acquiring assets they are familiar with [21][22] Question: What impact did the government shutdown have on portfolio companies? - The company has minimal exposure to civilian government activities, focusing more on defense and intelligence, which were not impacted by the shutdown [24] Question: What is the expected NII contribution from the recent asset sales? - The NII contribution from the $250 million portfolio acquisition is expected to add about 1-2 cents per share for a full quarter [29] Question: How does the current leverage ratio cover the dividend? - Management believes that a leverage ratio of 1.5 should easily cover the dividend, even with potential reductions in SOFR [43] Question: What trends are being observed in the underlying portfolio companies? - The company is seeing double-digit revenue growth and single-digit EBITDA growth across its portfolio, with a healthy overall portfolio despite some choppier credits [46][47] Question: Is there any consideration for stock buybacks given the stock price is trading below book value? - The board considers all options, including buybacks, and acknowledges that the current stock price appears to be a good value [59]

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 debt to equity ratio was 1.3 times, indicating a diversified capital structure across multiple funding sources [24] Business Line Data and Key Metrics Changes - The portfolio grew to $2.3 billion, up 7% from the prior quarter, with $293 million invested in three new and 54 existing portfolio companies at a weighted average yield of 9.9% [17] - The weighted average debt to EBITDA ratio for new portfolio investments was 4.3 times, with an interest coverage of 2.3 times [9][11] - Nonaccruals represented 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 two nonaccruals were put back on accrual [14][25] Market Data and Key Metrics Changes - Approximately 80% of originations came from existing borrowers, while 20% were from new platform investments, indicating a strong focus on existing relationships [7] - The pricing on first lien term loans stabilized in the SERFR plus 500 to $5.50 range for high-quality assets [10] - The core middle market remains attractive, with lower leverage and higher spreads compared to the upper middle market [10][12] Company Strategy and Development Direction - The company aims to focus 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 has taken significant steps to strengthen its balance sheet and enhance liquidity, positioning itself to take advantage of market opportunities [8][21] - The strategy includes maintaining rigorous underwriting standards and being selective in pursuing new investments [8] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company had a solid quarter and expects originations to remain concentrated among existing portfolio companies [7] - The management anticipates that pricing will likely increase and leverage will moderate as buyers and lenders adjust to a new risk framework [8] - The company is optimistic about the upcoming vintage of loans, which is expected to be particularly attractive [8] Other Important Information - The company raised $163 million during the quarter through its ATM program, issuing 14.4 million shares at an average price of $11.33 per share [21] - The joint venture (JV) portfolio totaled $1.1 billion, with $60 million invested during the quarter at a weighted average yield of 9.8% [20] - The company has over $500 million of available capital, enhancing its ability to capitalize on market opportunities [21] 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 part of preparing 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 crucial for unlocking new M&A activity, with limited exposure to tariffs in their portfolio [33] Question: How much of the existing borrower activity is repricing versus growth capital? - Management noted that most activity is from existing platforms growing, with repricing having ended due to recent market changes [40] Question: How does the company view the equilibrium in the private credit market? - Management expressed that the focus on the core middle market remains strong, with larger players moving upmarket, creating more opportunities for the company [49]