Core Insights - Blue Owl Capital Corporation (OBDC) is a business development company focused on upper middle-market businesses, primarily investing in senior secured loans for portfolio stability. The company's shares have decreased by 12.9% year to date, compared to a 19.4% decline in the industry [1][8]. Valuation and Earnings Estimates - Blue Owl Capital has a market capitalization of approximately $5.4 billion and trades at a forward P/E ratio of 8.03X, which is below the industry average of 8.88X, suggesting potential undervaluation [2]. - The Zacks Consensus Estimate for Blue Owl Capital's 2026 earnings is $1.36 per share, with revenues estimated at $1.7 billion. The company has beaten earnings estimates in two of the last four quarters [4]. Financial Performance - The company reported a 15.9% year-over-year growth in investment income for 2025, driven by higher interest income and portfolio expansion. As of December 31, 2025, OBDC had 234 portfolio companies [8][11]. - OBDC offers an attractive dividend yield of around 13.7%, significantly higher than the industry average of 1.9%. The company declared a first-quarter 2026 dividend of 37 cents per share and authorized a share repurchase program of up to $300 million [12]. Strategic Moves - Blue Owl Capital has scaled its platform through strategic transactions, including the combination with Dyal Capital Partners and Owl Rock Capital. The company executed a $1.4 billion secondary sale of assets in early 2026 to enhance liquidity and support investor distributions [10]. Debt and Expenses - OBDC carries a long-term debt load of $9.3 billion, with a debt-to-capital ratio of 55.7%, exceeding the industry average of 50.9%. The company's expenses increased by 23.1% year over year in 2025, which may pressure profit margins [14].

Core Viewpoint - Priority Income Fund, Inc. has declared monthly cash distributions for common shareholders for March, April, and May 2026, with an annualized total cash distribution of $0.70000 per share, reflecting a 16.6% annualized rate based on the net asset value as of February 28, 2026 [1][2]. Distribution Details - The monthly cash distribution amounts to $0.05833 per share, equating to $0.17499 on a quarterly basis, with specific record and payment dates outlined for each month [3]. - The declared distributions represent the 147th, 148th, and 149th consecutive monthly distributions paid by the Fund, totaling cumulative cash distributions of $17.163224 per common share since inception in January 2014 through May 2026 [3]. Tax Treatment - Distributions will first be treated as a distribution of taxable investment company income undistributed from the prior year, followed by current year taxable income, without affecting tax reporting to shareholders [4]. Company Overview - Priority Income Fund, Inc. is a registered closed-end fund focused on acquiring and growing an investment portfolio primarily consisting of senior secured loans or collateralized loan obligations (CLOs), typically involving floating interest rates and first liens on borrower assets [5]. - The Fund is managed by Priority Senior Secured Income Management, LLC, which comprises a team of investment professionals from Prospect Capital Management L.P. [5]. Management Background - Prospect Capital Management L.P. is an SEC-registered investment adviser with over 30 years of experience in managing high-yielding debt and equity investments, currently managing $7.2 billion in regulatory assets as of December 31, 2025 [6].

Company Overview - FS KKR Capital Corp. is a business development company that specializes in debt investments for U.S. middle market firms, focusing on providing tailored credit solutions through senior secured loans and subordinated debt [5][8] - The company reported a revenue of $113 million and a net income of $11 million for the trailing twelve months (TTM) [4] - The dividend yield stands at 25%, with the stock price at $9.99 as of the last trading day [4] Recent Developments - Diameter Capital Partners initiated a new position in FS KKR Capital Corp., acquiring 2,272,393 shares valued at approximately $33.65 million during the fourth quarter [1][2] - This new stake represents 3.8% of Diameter's reportable assets under management (AUM) as of December 31, 2025 [7] - FS KKR Capital's stock has decreased by 51% over the past year, significantly underperforming the S&P 500, which has increased by about 16% in the same period [7] Financial Insights - The net investment income for FS KKR Capital was reported at $0.48 per share last quarter, sufficient to cover its dividend, although earnings have swung to a loss and net asset value (NAV) has decreased to $20.89 [9] - The gap between the NAV and the stock price being under $10 indicates potential market mispricing [9] Market Context - The investment by Diameter Capital Partners is notable as it targets the private credit sector, which is currently out of favor [9][10] - The strategy of investing in FS KKR Capital aligns with a pattern of capital structure plays, where the downside is linked to credit quality and the upside is derived from income and potential mean reversion [10]

Core Viewpoint - Chicago Atlantic BDC's strategy is positioned to withstand current pressures in private credit markets, emphasizing its differentiated exposure and underwriting approach, which limits risks associated with software, receivables factoring, and recent fraud cases in syndicated facilities [1] Financial Performance - The company announced a quarterly dividend of $0.34 per share, maintaining this rate for six consecutive quarters, with total dividends for 2025 amounting to $1.36 per share [2] - Net investment income (NII) for Q4 2025 was reported at $0.36 per share, with a full-year NII of $1.45 per share, showcasing the company's ability to generate attractive returns while focusing on downside protection through senior secured lending [5] - Net expenses increased to $5.9 million from $5.6 million in the prior quarter, leading to a decrease in NII from $9.5 million ($0.42 per share) in Q3 to $8.3 million ($0.36 per share) in Q4 [3] Investment Metrics - Gross investment income for Q4 totaled $14.2 million, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [4] - The weighted average yield on debt investments was 15.8%, significantly higher than the average public BDC yield of 10.8% [8] - 99.5% of the portfolio is senior secured, contrasting with an average of 24.9% exposure to subordinated debt and equity among other BDCs [8] Portfolio and Investment Strategy - As of December 31, 2025, the company had 39 portfolio company investments, with 25% allocated to non-cannabis sectors [6] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with a third-party valuation provider used for quarterly valuations [6] - The company funded $31.7 million in new debt investments during Q4 across seven portfolio companies, with 100% being senior secured [9] Market Outlook and Opportunities - Management noted improving momentum in cannabis policy and deal activity, which could enhance lending opportunities, particularly with the administration's commitment to reclassifying cannabis [13] - The pipeline for potential debt transactions totaled approximately $732 million, with $616 million in cannabis opportunities and $116 million in non-cannabis opportunities [14] - Consolidation activity is increasing in various states, reflecting a more favorable environment for mergers and acquisitions in the cannabis sector [15]

Fourth Quarter 2025 Earnings Presentation Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) March 19, 2026 CONFIDENTIAL | Chicago Atlantic BDC, Inc. Disclaimers and Forward-Looking Statements The information contained in this presentation should be viewed in conjunction with the earnings conference call of Chicago Atlantic BDC, Inc. (the "Company") (Nasdaq: LIEN) held on March 19, 2026, and the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The information contained herein may not be use ...

Core Insights - CION Investment Corp. is experiencing challenges with credit performance and declining book value, leading to a reassessment of its risk-reward profile [1][9] - Recent earnings results indicate a decline in income generation, with total investment income down 7.1% year over year [5][9] Company Overview - CION is a non-diversified closed-end investment company regulated as a Business Development Company, focusing on current income and modest capital appreciation through senior secured lending to U.S. middle-market companies [2] - The investment portfolio primarily targets first-lien loans (80.8%), with smaller allocations to equity (18.5%), structured products (0.3%), and unsecured debt (0.4%) [3] Sector Exposure - As of December 31, 2025, the largest sector exposures in CION's portfolio include Services (14.7%), Healthcare & Pharmaceuticals (11.3%), Retail (11%), Energy (8.6%), and Media (7.2%) [4] Financial Performance - In Q4 2025, CION reported net investment income of $0.35 per share, unchanged from the previous year, while total investment income was $53.8 million, a decrease of 7.1% year over year [5] - For the full year 2025, net investment income was $1.78 per share, below the consensus estimate of $1.81, with a total decline of 2.9% year over year to $93 million [6] Net Asset Value (NAV) - The NAV per share decreased to $13.76 in Q4 2025, down 10.8% from $15.43 in the previous year, primarily due to mark-to-market adjustments in the equity portfolio [7] Credit Trends - Non-accruals increased to 4.32% of the total investment portfolio in Q4 2025, up from 4.08% in Q3 2025, indicating rising credit risk [8][9] - Management noted tariff-related pressures affecting cash flows and valuations, which could further impact the portfolio [10] Investment Outlook - CION's origination outlook is supported by an improving M&A environment, with new investment commitments of $255 million in 2025 expected to rise as deal activity improves [11] - Private credit conditions remain competitive, with tighter spreads and elevated leverage, which may affect near-term portfolio expansion [12] Market Performance - CION's shares have declined by 38.4% over the past year, underperforming peers such as Ares Capital and Main Street Capital [13] - Earnings estimates for 2026 have been revised downward, reflecting market hesitance and limiting near-term catalysts [13]

Group 1: Oil Market Dynamics - Oil prices are currently above $100 a barrel, influenced by ongoing tensions related to the Iran war and fears of supply disruptions, particularly with oil flows through the Strait of Hormuz down 97% from normal levels [1][3] - The rise in oil prices is contributing to inflation concerns, which is reflected in the performance of gold prices, heading for a second weekly loss [1][3] Group 2: Business Development Companies (BDCs) Overview - BDCs are currently offering high yields, with some yielding up to 15.6%, but face challenges due to recession fears, rising oil prices, and uncertainties from the Federal Reserve [1][2] - The sector is experiencing increased scrutiny due to fears surrounding private credit, particularly after the bankruptcy of First Brands, leading to asset sell-offs and limited investor withdrawals by major firms like BlackRock and Blackstone [1][2] Group 3: Individual BDC Performance - Gladstone Investment (GAIN) has a yield of 11.0% and focuses on lower-middle-market companies, showing resilience with no exposure to software sectors, and a net asset value increase from $12.99 to $14.95 per share [1][2] - SLR Investment Corp (SLRC) yields 11.1% and specializes in senior secured loans, maintaining low exposure to the tech sector and a diverse portfolio of 880 holdings across 110 industries [2] - Goldman Sachs BDC (GSBD) offers a yield of 15.6% but trades at a 28% discount to net asset value due to a significant reduction in its core payout and high exposure to the tech industry, which it is actively managing by exiting high-risk investments [2] - PennantPark Floating Rate Capital (PFLT) has a yield of 15.2% but faces challenges with net investment income falling short of dividend payouts, leading to a 23% discount to net asset value [2]

Core Insights - Stellus Capital Investment reported a fourth-quarter investment portfolio at fair value of $1.01 billion across 115 companies, with no change from the previous quarter [1][6] - The company generated GAAP net investment income of $0.29 per share and total realized income of $0.48 per share, which includes $5.5 million in equity gains [3][7] - The net asset value (NAV) per share declined by $0.23 due to dividend payments exceeding earnings and net realized losses [2][7] Investment Activity - During the fourth quarter, Stellus invested $34.1 million in four new portfolio companies and had $18 million in other investment activities [1] - The company received repayments totaling $37.9 million from four full repayments, $7 million from five equity realizations, and $9.1 million in other repayments [1] Portfolio Quality - 99% of loans in the portfolio are secured, and 92% are floating rate loans, with an average loan size of $8.8 million [6][8] - Asset quality was described as "slightly better than planned," with 81% of the portfolio rated one or two, while 19% rated three or below [8] Software and AI Exposure - Stellus has limited exposure to the software and AI sectors, with only 6.8% of the loan portfolio related to industry-specific tech-enabled solutions [9][10] - Management expressed confidence that AI would not materially negatively impact recovery values for these loans [10] Future Outlook - The company expects to maintain its portfolio size at approximately $996 million through the first quarter of 2026, with anticipated equity realizations of about $2 million [11] - Stellus declared a first-quarter dividend of $0.34 per share and plans to maintain this level for the second quarter, subject to board approval [12] Management Changes and Share Repurchase - Stellus's external manager is set to be acquired by Ridgepost Capital, with the transaction expected to close in mid-2026 [5][15] - The board authorized a $20 million share repurchase program, citing the stock's trading at a 30% discount to NAV [5][16]

FS KKR Capital Corp. ( N Y S E : F S K ) I n v e s t o r P r e s e n t a t i o n March 2026 All information is as of December 31, 2025 unless otherwise noted FS KKR ADVISOR & MARKET OVERVIEW FS/KKR Advisor: Overview | | Size & Scale | | | | --- | --- | --- | --- | | ~$14 billion AUM publicly | FSK has direct involvement | Incumbency from large | | | traded BDC within | of ~250 professionals and | portfolio of 2,700+ issuers | ~$11 billion diversified | | $288 billion KKR Credit | ~120 investment | across KK ...

Financial Data and Key Metrics Changes - Net Investment Income decreased to $0.20 per share from $0.22 per share in the prior quarter, primarily due to a lower net interest margin resulting from higher interest rates on new unsecured notes [4] - Net Asset Value per share declined to $9.19 from $10.17, attributed to markdowns of non-performing loans [4][12] - Total investment income decreased approximately 11% to $9.4 million, driven by a decrease in non-recurring dividend fees and certain interest income [15] Business Line Data and Key Metrics Changes - The loan portfolio remained stable, with one loan placed on non-accrual status and one loan returned to accrual status during the quarter [12][17] - The weighted average performing investment income yield increased modestly to 13.5%, up about 0.2% quarter-over-quarter, primarily due to increased yields on structured finance securities [18] Market Data and Key Metrics Changes - The regulatory asset coverage ratio decreased to 156%, down one percentage point from the prior quarter [13] - The macroeconomic environment remains uncertain, with potential for further interest rate cuts impacting the floating rate loan portfolio [7][16] Company Strategy and Development Direction - The company is focused on preserving capital and strengthening its balance sheet by extending debt maturities and reducing overall debt, with the earliest maturity now in 2028 [19] - Efforts to monetize the equity investment in Fansteel are ongoing, with a fair value of approximately $79.4 million [5][11] - The company aims to maintain a diversified loan portfolio, avoiding highly cyclical industries and focusing on senior secured loans [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the credit portfolio despite the uncertain macroeconomic environment [5][19] - The company anticipates further net interest margin compression due to lower reference rates following recent Fed rate cuts [16] - Management remains committed to increasing Net Investment Income over the long term while navigating the current economic landscape [19][20] Other Important Information - The company successfully reduced its total debt balance by $18.8 million during the quarter [9] - A new credit facility with Natixis was established, maturing in 2031, which strengthens the balance sheet [14] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries [21][22]