Acacia Research (ACTG) FY Conference Summary Company Overview - Acacia Research has transitioned from an intellectual property business to a value-based acquirer of companies, focusing on creating a diversified portfolio of assets [2][3] - The company has a book value of approximately $577 million, translating to about $6 per share, with $340 million in cash and public securities [4] Financial Performance - Acacia generated $222 million in revenue and $61 million in EBITDA, with $40 million of EBITDA related to its former intellectual property business [5] - The company operates with no debt, emphasizing a strong financial position [5] Investment Strategy - The management team, led by the CEO with a private equity background, focuses on acquiring undervalued businesses, particularly in contrarian sectors [6][8] - Acacia aims to improve the operational efficiency and profitability of acquired businesses, emphasizing hands-on management rather than passive ownership [10][11] - The company has seen a significant number of acquisition opportunities, evaluating 350 businesses last year and 280 so far this year, but remains selective [9][50] Recent Acquisitions - Acacia has made strategic acquisitions, including Benchmark Energy and Deflecto, to build a scaled oil and gas platform and diversify its portfolio [15][22] - The acquisition of Benchmark was based on identifying dislocation in the oil and gas market, focusing on cash flow generation rather than traditional valuation metrics [17][19] - Deflecto was acquired as a collection of three unrelated businesses, with plans to streamline operations and enhance value through cost-cutting and management alignment [22][24] Operational Focus - The company emphasizes operational improvements and continuous enhancement of acquired businesses, aiming to generate cash flow and increase margins [11][20] - Acacia's approach includes leveraging existing management expertise and operational partners to drive performance in acquired companies [8][26] Market Position and Future Outlook - Acacia is exploring opportunities in specialty lending and insurance, indicating a strategic focus on markets with limited capital flow [51][52] - The company is cautious about entering new markets, preferring to build around existing positions and leverage its team's expertise [54] - Acacia aims to unlock trapped value in its portfolio, with a long-term vision of growing into a formidable public holding company with multiple large businesses [42][43] Conclusion - Acacia Research is positioned as a value-oriented acquirer with a strong financial foundation and a clear strategy for operational improvement and growth through selective acquisitions [34][55]

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]

Oaktree Specialty Lending (OCSL) Q2 2025 Earnings Call May 01, 2025 11:00 AM ET Company Participants Clark Koury - Head - IRMatt Pendo - PresidentArmen Panossian - CEO & Co-CIOChristopher McKown - CFO & TreasurerMelissa Wedel - Vice President, U.S. Equities ResearchPaul Johnson - Vice President Conference Call Participants Finian O’Shea - Analyst Operator Welcome, and thank you for joining Oaktree Specialty Lending Corporation Second Fiscal Quarter twenty twenty five Conference Call. Today's conference call ...

S I X T H S T R E E T S P E C I A L EARNINGS PRESENTATION Quarter Ended March 31, 2025 T Y L E N D I N G DISCLAIMER AND FORWARD-LOOKING STATEMENT References in this presentation ("Presentation") to "TSLX," "we," "us," "our" and "the Company" refer to Sixth Street Specialty Lending, Inc. This Presentation includes forward-looking statements about TSLX that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, esti ...