Financial Data and Key Metrics Changes - The company reported core earnings per share of $0.50 for Q4 2025 and $2.01 for the full year, fully covering dividends and achieving a return on equity (ROE) exceeding 10% for both periods [6][18] - GAAP net income per share for Q4 2025 was $0.41, down from $0.57 in Q3 2025 and $0.55 in Q4 2024; for the full year, GAAP net income per share was $1.86, compared to $2.44 in 2024 [18] - The total portfolio at fair value increased to $29.5 billion at the end of Q4 2025, up from $28.7 billion in Q3 2025 and $26.7 billion a year ago [20][28] Business Line Data and Key Metrics Changes - The company achieved a record $15.8 billion in new investment commitments for 2025, with Q4 alone contributing over $5.8 billion, marking a 50% increase from Q4 2024 [10][26] - Non-sponsored originations grew by more than 50% during 2025, reflecting the company's focus on specialized industry verticals [10] - The average portfolio leverage decreased approximately a quarter turn of EBITDA from the prior year, while the average interest coverage ratio improved to 2.2 times [12][30] Market Data and Key Metrics Changes - The weighted average organic EBITDA growth rate of portfolio companies was more than three times that of GDP and more than double the growth rate of borrowers in the broadly syndicated loan market [11] - The company added over 100 new borrowers to its portfolio during 2025, a new record, and ended the year with a diversified portfolio of 603 borrowers [9][28] Company Strategy and Development Direction - The company emphasized its long-term competitive advantages, including team experience, market relationships, and rigorous credit standards, which are expected to support future performance [7] - The company plans to maintain its dividend despite market expectations for declines in short-term interest rates, supported by a strong balance sheet and growth opportunities from strategic investments [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a rebound in transaction activity in the second half of 2025, driven by macroeconomic stability and increased pressure on private equity firms [8] - The company expressed confidence in its ability to capitalize on market opportunities, particularly in the software sector, despite emerging risks from AI [58] Other Important Information - The company has over $6 billion in liquidity, including available cash, and a debt-to-equity ratio of 1.08 times, providing significant capacity for future investments [23][24] - The company has a taxable income spillover estimated at $988 million, or $1.03 per share, available for distribution to stockholders in 2026 [25] Q&A Session Questions and Answers Question: Concerns about AI's impact on software business performance - Management expressed confidence in their software portfolio, highlighting that they focus on foundational infrastructure software resistant to technology risk, including AI [39][41] Question: Characterization of the other half of investment commitments - Management noted that a significant portion of new originations supported add-on acquisitions for existing portfolio companies, with limited resurgence in dividend transactions [51][52] Question: Strategy to take advantage of market weakness - Management indicated excitement about potential opportunities during market dislocations, emphasizing their diversified capital base as a competitive advantage [57][58] Question: Why spreads have not widened despite market dislocation - Management explained that recent volatility was short-lived, and the private market tends to react more slowly to changes in the broadly syndicated market [74][75] Question: Will the company deploy its share repurchase program? - Management confirmed that share repurchases are always on the table and will be considered based on stock trading conditions [80]

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.41 for Q4 2025, down from $0.57 in the prior quarter and $0.55 in Q4 2024. For the full year, GAAP net income per share was $1.86, compared to $2.44 in 2024 [17] - Core earnings per share for Q4 2025 remained stable at $0.50, compared to $0.50 in the prior quarter but down from $0.55 a year ago. For the full year, core earnings per share were $2.01, down from $2.33 in 2024 [17] - The company generated a 10% core return on equity (ROE) for the year, consistent with historical averages [18] Business Line Data and Key Metrics Changes - The company achieved record gross originations of $15.8 billion in 2025, with Q4 originations exceeding $5.8 billion, a 50% increase from Q4 2024 [26] - New investment commitments accelerated in the second half of 2025, driven by M&A and LBO activities, with about half of new originations supporting M&A-driven transactions [26][27] - The portfolio at fair value increased to $29.5 billion, a 3% increase from the prior quarter and a 10% increase year-over-year [27] Market Data and Key Metrics Changes - The company added over 100 new borrowers in 2025, setting a new record, and ended the year with a diversified portfolio of 603 borrowers [27] - The weighted average organic EBITDA growth rate of portfolio companies was more than three times that of GDP, indicating strong performance relative to the broader economy [10] - Non-accruals at cost remained stable at 1.8%, consistent with prior levels and below historical averages [32] Company Strategy and Development Direction - The company emphasized its long-term competitive advantages, including team experience, market relationships, and rigorous credit standards, which are expected to support future performance [5] - The focus on specialized industry verticals, such as software and healthcare, has led to differentiated deal flow and a 50% increase in non-sponsored originations [9] - The company plans to maintain its dividend despite potential declines in short-term interest rates, supported by a strong balance sheet and spillover income [14][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic volatility and capitalize on market opportunities, particularly in the software sector [56] - The company is closely monitoring market conditions and believes it is well-positioned to benefit from any dislocations in the capital markets [56] - Management highlighted the importance of maintaining a diversified capital base to support consistent lending activities [34] Other Important Information - The company reported a total portfolio at fair value of $29.5 billion, with a net asset value of $14.3 billion, or $19.94 per share, reflecting a slight decrease from the previous quarter [19] - The company has a strong liquidity position, totaling over $6 billion, including available cash [23] - The first quarter 2026 dividend is set at $0.48 per share, payable on March 31, 2026 [24] Q&A Session Summary Question: Concerns about AI's impact on software business performance - Management expressed confidence in their software portfolio, emphasizing that they invest in foundational infrastructure software resistant to technology risk, including AI [38][40] Question: Characterization of deal flow and market conditions - Management noted that most deal flow consists of add-on acquisitions for existing portfolio companies, with limited resurgence in dividend transactions [50] Question: Market dislocation and spread widening - Management explained that recent market volatility did not lead to sustained spread widening, attributing this to the quick recovery of the broadly syndicated market [72][74] Question: Share repurchase program - Management confirmed that share repurchases are always considered based on stock trading levels, but no specific plans were disclosed [76]