Blue Owl Capital Inc. (NYSE:OWL) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the market. A caller asked for Cramer’s opinion on the stock, and he replied: Okay, Blue Owl, if you want to own in that world, that private equity, private credit world, I have to suggest you to buy Blackstone. It yields 5%. It’s better run. I think you just go with Blackstone and you’ll do better. A laptop and a computer monitor display a detailed stock market technical analys ...

So where do we stand now. You've warned about underwriting. How poor does it look.Sure. So I think what we're starting to see is just a normalization in the space for far too long. There was lax underwriting standards in direct lending and with too much leverage put on companies that really didn't need that much leverage on them.What we're seeing is not really a crisis, though. What we're seeing is, is a cooling in this market. And what we're seeing is a move in default rates from low single digits, call it ...

Ares Management Corp (NYSE:ARES) is one of the 10 best financial stocks with highest upside potential. During a presentation at the RBC Capital Markets’ Global Financial Institutions Conference on March 11, Michael Arougheti, CEO of Ares Management Corp (NYSE:ARES), discussed the company’s strategic positioning and market outlook. According to Arougheti, 25% of Ares’ growth history has resulted from acquisitions. The company focuses on growth opportunities in areas of competitive advantage and allows fo ...

Financial Data and Key Metrics Changes - BXSL reported a net investment income (NII) of $0.80 per share, representing an 11.8% annualized return on equity, primarily from interest income [7] - The distribution of $0.77 per share was 104% covered by NII, yielding an 11.4% annualized distribution yield on NAV [7] - The net return for the year was 9.6%, outperforming the leveraged loan market by 360 basis points [7] - The net asset value (NAV) per share decreased to $26.92 from $27.15 in the previous quarter, impacted by net unrealized losses [20][21] Business Line Data and Key Metrics Changes - BXSL's portfolio increased to 316 companies across 40 industries, with 13 new credits funded and 15 add-ons completed [8] - The average loan-to-value (LTV) at underwriting was 41%, with an average spread near 500 basis points [8] - The portfolio's top 90% of companies grew EBITDA by 9% over the past 12 months, with interest coverage ratios over two times [10] Market Data and Key Metrics Changes - The U.S. leveraged finance market is approximately $5 trillion, with the institutional non-BDC channel being about $1.5 trillion [30] - BXSL's repayment activity increased, with a repayment rate of 15% of the portfolio at fair value, up from 13% in the prior quarter [23] - The company is tracking over $550 million of potential repayments for the first half of the year, which could enhance balance sheet capacity [23] Company Strategy and Development Direction - The company is focused on capital expenditure build-out in AI and digital infrastructure, which is expected to support growth across multiple sectors [6] - BXSL aims to maintain a defensive investment strategy by focusing on first lien, larger, private equity-owned businesses [17] - The company is considering various capital allocation options, including share repurchases, reinvestment in new loans, and deleveraging [35][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic environment, citing resilient corporate earnings growth and strong consumer demand [5] - The company anticipates continued robust capital inflows into private credit strategies, particularly from institutional channels [6] - Management noted that while there are external concerns regarding credit market bubbles, the fundamentals of their portfolio remain strong [10] Other Important Information - BXSL's board approved a discretionary share repurchase plan for up to $250 million of outstanding common shares [24] - The company reported a diverse liability profile, with an all-in cost of debt for the fourth quarter at 4.93%, down from 5.24% [26] - Non-accruals in the fourth quarter were 0.6% at cost and 0.5% at fair market value, indicating stable portfolio performance [22] Q&A Session Summary Question: Impact of potential slowdown in non-traded channel - Management acknowledged the importance of institutional capital and expressed confidence in remaining active in the market despite potential headwinds [30][32] Question: Considerations for share repurchase versus special dividends - Management highlighted the options available for cash proceeds, including reinvestment, share buybacks, and deleveraging, while noting the high dividend yield [35] Question: Effects of retail fundraising flows on market pricing - Management indicated that the overall credit market remains healthy, with capital available and no immediate signs of spread widening [41][42] Question: Future software exposure in the portfolio - Management noted ongoing investment opportunities in AI infrastructure and indicated a focus on maintaining or growing software exposure where it aligns with strategic themes [46] Question: Sponsor conversations and market activity - Management reported that sponsors are cautious but expect continued M&A activity due to favorable economic conditions [51] Question: Unrealized depreciation and its drivers - Management confirmed that unrealized losses were concentrated in a few positions, with overall portfolio fundamentals remaining stable [70][72]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 was $0.52 per share, with an annualized operating return on equity of 12% [6] - Full year 2025 adjusted net investment income per share was $2.18, representing an operating return on equity of 12.7% [8] - Net asset value per share at year-end was $16.98, down from $17.11 in Q3 and $17.09 at year-end 2024 [22] Business Line Data and Key Metrics Changes - In Q4, 97% of investments were in first lien loans, indicating a focus on the top of the capital structure [29] - Total commitments in Q4 were $242 million, with total fundings of $197 million across five new portfolio companies [28] - Weighted average yield on debt and income-producing securities decreased from 11.7% to 11.3% quarter-over-quarter [30] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) within the portfolio was approximately 41%, stable year-over-year [16] - LTM revenue growth rate for core portfolio companies was approximately 9%, with EBITDA growth at approximately 12% [17] - The portfolio's exposure to enterprise software was approximately 40% by fair value, with consistent credit statistics [19] Company Strategy and Development Direction - The company emphasizes a thematic investment approach, focusing on durable business models and the impact of AI on the market [10][12] - The formation of a joint venture, Structured Credit Partners, aims to invest in newly issued broadly syndicated loan CLOs, enhancing diversification and investment flexibility [40] - The company is positioned to capitalize on market dislocations and has significant liquidity to support investment activities [21][46] Management's Comments on Operating Environment and Future Outlook - Management believes the market is in the early stages of a gradual rebalancing, with capital reallocating towards managers who can consistently earn their cost of capital [46] - The anticipated returns from the newly established joint venture are expected to support the earnings profile [42] - The company expects to target a return on equity on net investment income for 2026 of 11%-11.5% [42] Other Important Information - The company reported a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.01 per share [23] - Total repayments in Q4 were $235 million, contributing to the highest annual repayment activity since inception [31] - The company maintains a disciplined approach to credit selection, focusing on businesses with robust unit economics [26] Q&A Session Summary Question: How much of the portfolio has turned over since 2022? - The company has about 20%-25% of NAV from pre-2022 vintages, with the majority of the portfolio originated in 2023 and 2024 [49] Question: How do you see the deployment environment evolving with AI? - The company is thematic investors and is rotating capital to businesses that will benefit from AI, focusing on those with strong moats [52][54] Question: Will the joint venture focus on BSL CLOs? - The joint venture will primarily involve broadly syndicated loans, with no management fees at the CLO or joint venture level, enhancing shareholder returns [58] Question: What is the impact of unrealized losses on the portfolio? - Unrealized losses were driven by credit spread reversals and specific portfolio company events, with a minor impact on NAV [72] Question: What is the current state of the investment pipeline? - The company has had good activity in Q4 and is encouraged by the pipeline, particularly if market dislocations continue [71]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 was $0.52 per share, with an annualized operating return on equity of 12% [6] - Full year 2025 adjusted net investment income per share was $2.18, representing an operating return on equity of 12.7% [8] - The company reported a net income per share of $0.32 for Q4 and $1.81 for the full year [35] Business Line Data and Key Metrics Changes - In Q4, 97% of investments were in first lien loans, indicating a focus on the top of the capital structure [29] - Total commitments in Q4 amounted to $242 million, with total fundings of $197 million across five new portfolio companies [28] - The weighted average yield on debt and income-producing securities at amortized cost decreased from 11.7% to 11.3% quarter-over-quarter [30] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) within the portfolio was approximately 41%, remaining stable year-over-year [16] - The portfolio companies demonstrated LTM revenue and earnings growth rates of approximately 9% and 12%, respectively [17] - The company’s exposure to enterprise software comprises approximately 40% of the total portfolio by fair value [19] Company Strategy and Development Direction - The company emphasizes a thematic investment approach, focusing on durable business models and the impact of AI on the market [10][12] - The formation of a joint venture, Structured Credit Partners, aims to invest in broadly syndicated loan CLOs, enhancing diversification and investment flexibility [40] - The company is positioned to capitalize on market dislocations and has significant liquidity to support investment activities [21][46] Management's Comments on Operating Environment and Future Outlook - Management believes the market is in the early stages of a gradual rebalancing of capital, with opportunities arising from market volatility [45] - The anticipated returns from the newly established joint venture are expected to support the earnings profile [42] - The company expects to target a return on equity on net investment income for 2026 of 11%-11.5% [42] Other Important Information - The company declared a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.01 per share [23] - The net asset value per share at year-end was $16.98, down from $17.11 in Q3 [22] - The company maintains a disciplined credit selection process, with a focus on businesses with robust unit economics [26] Q&A Session Summary Question: How much of the portfolio has turned over since 2022? - The company has about 20%-25% of NAV from pre-2022 vintages, with the majority of the portfolio originated in 2023 and 2024 [49] Question: How do you see the deployment environment evolving with AI? - The company is thematic investors and is rotating capital to businesses that will benefit from AI, focusing on those with strong moats [52][54] Question: Will the joint venture focus on BSL CLOs? - The joint venture will primarily involve broadly syndicated loans, with no management fees at the CLO or joint venture level, enhancing shareholder returns [58] Question: What is the current investment pipeline and its impact from public software space disruptions? - The company has had many conversations with sponsors and is well-positioned to take advantage of any dislocation in the market [70] Question: What was driving the unrealized losses in the portfolio? - Unrealized losses were driven by credit spread impacts and specific reversals from portfolio companies [72]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.52 per share, exceeding the base dividend of $0.46 per share, resulting in a base dividend coverage of 113% [5][6] - Full year 2025 adjusted net investment income per share was $2.18, representing an operating return on equity of 12.7%, exceeding the top end of guidance [7][8] - Reported net asset value per share at year-end was $16.98, down from $17.11 in Q3 and $17.09 at year-end 2024 [20][34] Business Line Data and Key Metrics Changes - In Q4, 97% of investments were in first lien loans, indicating a commitment to investing at the top of the capital structure [27] - Total commitments in Q4 were $242 million, with total fundings of $197 million across five new portfolio companies and upsizes to four existing investments [26] - The weighted average yield on debt and income-producing securities at amortized cost decreased from 11.7% to 11.3% quarter-over-quarter [28] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) within the portfolio was approximately 41%, remaining stable year-over-year [15] - The core portfolio companies demonstrated LTM revenue and earnings growth rates of approximately 9% and 12%, respectively [16][17] - The company’s liquidity represented approximately 33% of total assets, with nearly 6 times coverage on unfunded commitments [18][19] Company Strategy and Development Direction - The company is focused on maintaining a disciplined investment strategy, particularly in a tighter spread environment, and aims to capitalize on market volatility [24][25] - The establishment of a joint venture, Structured Credit Partners, aims to invest in newly issued broadly syndicated loan CLOs, enhancing diversification and expanding investment flexibility [40][41] - The company emphasizes a thematic investment approach, rotating capital to businesses with strong moats that can benefit from technological advancements, particularly in AI [50][52] Management's Comments on Operating Environment and Future Outlook - Management believes the investment environment for 2026 will be characterized by an imbalance between the supply of private capital and the demand for financing, leading to sustained competition and tight spreads [24] - The company anticipates a gradual market-correcting rebalancing as capital migrates towards managers that can consistently earn their cost of capital [44] - Management expressed confidence in the resilience of the portfolio and the ability to generate differentiated risk-adjusted returns during periods of market instability [46] Other Important Information - The company reported total investment income of $108.2 million for Q4, slightly down from $109.4 million in the prior quarter [38] - The company’s average debt-to-equity ratio was 1.17x for the full year 2025, down from 1.19x in 2024 [35] - The company has a spillover income of $1.21 per share at year-end, which will be monitored closely as part of the distribution strategy [42] Q&A Session Summary Question: How much of the portfolio has turned over since 2022? - The company indicated that about 20%-25% of NAV is from pre-2022 vintages, with the majority of the portfolio originated post the rate hiking cycle in 2023 and 2024 [48] Question: How does the company see the deployment environment evolving with AI? - The company views itself as thematic investors, rotating capital to businesses that will benefit from AI advancements, focusing on those with strong moats [50][52] Question: Will the joint venture focus on BSL CLOs? - The joint venture will primarily involve broadly syndicated loans, with no management fees at the CLO or joint venture level, enhancing returns for shareholders [56][57] Question: What is the impact of unrealized losses on the portfolio? - Unrealized losses were primarily driven by credit spread impacts and specific reversals from portfolio companies, with a noted impact from a restructuring at IRG [73] Question: What is the company's outlook on spreads for new investments? - The company has seen stable spreads throughout 2025 and anticipates this stability to continue into 2026, with hopes for widening as capital reallocates in the sector [80]

Summary of Blackstone Secured Lending Fund Conference Call Company Overview - **Company**: Blackstone Secured Lending Fund (NYSE: BXSL) - **Date**: February 10, 2026 Key Industry Insights - **Macro Environment**: The broader economy is resilient with strong corporate earnings and consumer spending. Q3 GDP growth is accelerating, and default rates in private credit declined by approximately 30% in 2025, indicating a healthy economic backdrop [3][4] - **Direct Lending Activity**: There was a significant increase in direct lending activity, up over 50% quarter-over-quarter, suggesting a recovering deal environment [3][4] Financial Performance and Strategy - **Leverage and Liquidity**: The company maintains a leverage profile of approximately 1.15 times average fund leverage, with an ending leverage of about 1.2 times and $2.5 billion in liquidity. The focus is on utilizing liquidity measures and additional leverage as the deal environment improves [5][6] - **Dividend Considerations**: The management emphasizes the importance of aligning the cost of capital with the ability to generate attractive investments. They are cautious about dividend resets, especially in light of recent peer actions [8][9] Software Sector Insights - **Software Exposure**: Software accounts for about 20% of direct lending volume and BDC portfolios. The company has approximately $4.5 billion in enterprise value in software investments, with a loan-to-value ratio of 37% [10][11] - **AI Disruption Risks**: The management is actively assessing AI disruption risks in software portfolios, focusing on understanding and mitigating these risks through diversified investments [12][16] Market Dynamics - **Valuation and Recovery**: The median Price-to-Book value for BDCs is around 0.8, indicating a high probability of attractive returns in the future. The management believes that the market will eventually recognize the value, leading to a recovery [20][21] - **Redemptions and Liquidity**: Despite elevated redemptions in the private BDC sector, there was still net growth in the fourth quarter, indicating strong interest in excess returns. The industry maintains a high degree of liquidity, with approximately $70 billion available [22][23][24] Competitive Landscape - **Manager Differentiation**: The management notes that while there are many new entrants in the BDC space, the majority of capital is raised by a small group of firms with significant institutional presence. This creates opportunities for those firms to capitalize on the market [25][27] Risk Factors - **Excluding Credit Risks**: Investors should pay attention to liquidity and the correlation between book value degradation and time spent below book value. High expense ratios can also impact returns negatively [33][34] Future Outlook - **Spreads and Market Conditions**: Spreads remain tight, but there is potential for widening due to economic fears. The management expects stability in spreads unless significant market fear arises [29][30] - **Legislative Changes**: The management is optimistic about potential legislative changes that could enhance institutional investment in BDCs, improving transparency and market dynamics [31][32] Conclusion - The Blackstone Secured Lending Fund is navigating a resilient macroeconomic environment with a focus on strategic investments, particularly in software and private credit. The management is cautious yet optimistic about future growth and recovery in the BDC market, emphasizing the importance of liquidity, risk management, and alignment of capital costs with investment returns.

Strategic Partnership - TPG and Jackson have established a long-term strategic investment management partnership [2, 12] - TPG will manage select general account assets of Jackson's subsidiaries [4] - TPG will invest $500 million in Jackson common stock, representing approximately 65% pro forma ownership [13] - Jackson will receive $150 million of TPG common stock [13] Investment Management Agreement (IMA) - TPG and Jackson will enter into a long duration, auto-renewing investment management agreement [13] - The minimum allocation is $12 billion, with a path to scale to at least $20 billion over time [13] - The initial focus will be on Investment Grade Asset Based Finance (IG ABF) and Direct Lending [13] - A minimum fee of 50 bps is applicable throughout the life of the partnership [17, 21] TPG Credit Expansion - The partnership more than doubles TPG's insurance commitments with 100% fee-paying capital [19] - TPG expects to raise approximately $20 billion of credit capital in 2025 [39] - Total TPG Credit AUM has grown 44% since the end of 2023 [39]

Financial Data and Key Metrics Changes - Blue Owl Capital Corporation reported adjusted net investment income (NII) per share of $0.36, down from $0.40 in the previous quarter, reflecting lower non-recurring income [5][19] - The net asset value (NAV) per share was $14.89, a decline of $0.14 from the prior quarter, but has increased over 4% since inception [6][19] - Total portfolio investments exceeded $17 billion, with total net assets nearing $8 billion and outstanding debt approximately $9.5 billion [19] Business Line Data and Key Metrics Changes - The company saw originations of $1.3 billion and fundings of $1.1 billion during the quarter, with repayments at $797 million, resulting in a net leverage of 1.22 times [11][19] - Approximately 40% of the originations were add-ons, indicating strong support for existing borrowers [11] - The average hold size for new direct lending deals increased from $200 million in 2021 to roughly $350 million in 2025 [12] Market Data and Key Metrics Changes - The average revenue and EBITDA of portfolio companies grew to over $1 billion and $229 million, respectively, nearly double the levels from four years ago [14] - The non-accrual rate remained low at 1.3%, consistent with historical averages, despite a slight increase due to the addition of a watchlist position [13] Company Strategy and Development Direction - The merger with OBDC II is expected to create significant value for shareholders, adding nearly $1 billion in net assets and enhancing the portfolio's scale and diversity [10][17] - The company focuses on direct lending, primarily making senior-secured loans, which allows for better control and transparency in credit assessments [9] - The strategy emphasizes larger, recession-resistant businesses, avoiding more cyclical sectors like energy and retail [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's strength, citing solid fundamentals and disciplined underwriting practices [25] - The company anticipates that earnings and dividends will adjust in response to declining base rates, but remains focused on maintaining a sustainable dividend policy [24][39] - There are expectations for a potential normalization of spreads in the direct lending market, which could enhance returns [72] Other Important Information - The board declared a fourth-quarter base dividend of $0.37, to be paid on January 15, 2026 [19] - The company has a robust liquidity position with over $3 billion in cash and capacity on facilities, exceeding unfunded commitments [20] Q&A Session Summary Question: What is driving the higher non-accruals in OBDC II? - Management explained that the higher non-accrual rates are due to larger names in OBDC II, which operates under lower leverage constraints, but the impact on overall credit statistics is minimal [27][28] Question: What steps are being taken to improve stock valuation? - Management highlighted ongoing efforts to simplify the BDC portfolio and noted that the stock is yielding over 11%, which is not aligned with performance [31][33] Question: What are the expectations for rate cuts and their impact on dividends? - Management indicated that they do not predict rates but will adjust dividends based on the portfolio's earnings power in a lower rate environment [38][39] Question: How will the merger affect ROE accretion? - Management expects to achieve most operational synergies quickly post-merger, with capital structure-related synergies anticipated in 2026 [86] Question: What is the outlook for originations and M&A activity? - Management noted a significant pickup in activity levels, particularly in sell-side M&A opportunities, which typically yield greater upfront fees [47]