Financial Data and Key Metrics Changes - The company reported fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest in its history as a public company [4][6] - Management fees reached $1.1 billion, up 19% year-over-year, with a healthy growth of 16% excluding catch-up fees [4][5] - Total transaction and monitoring fees were $328 million, while capital markets fees were strong at $276 million, driven by private equity and infrastructure activities [5][6] - Adjusted net income was $1.3 billion, or $1.41 per share, reflecting an 8% increase year-over-year [7][8] Business Line Data and Key Metrics Changes - The insurance segment reported operating earnings of $305 million, with a run rate around $250 million [6] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [6] - Realized performance and investment income totaled $935 million within the asset management segment [7] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year-over-year [9] - The private equity and real asset business lines raised $16 billion of capital in the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][14] - There is a focus on raising third-party capital to grow Global Atlantic in a capital-efficient manner [13][14] - The company aims to achieve $4.50+ in fee-related earnings per share and $7+ in after-tax adjusted net income per share by 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundraising momentum and the ability to achieve 2026 guidance despite potential challenges in the monetization environment [24][26] - The company noted that the current monetization environment is constructive, with expectations for continued strong performance [26][34] - Management highlighted the importance of maintaining a conservative approach to capital deployment and portfolio construction [29][30] Other Important Information - The company has over $1 billion in monetization activity, indicating a healthy portfolio maturity [7][8] - There is a focus on cash outcomes in segment reporting, with a conservative approach to recognizing earnings [19][20] - The company expects to take a one-time charge related to the Asia Private Equity Fund, which will impact net realized performance income in Q4 [22][23] Q&A Session Summary Question: Can you summarize the international perspective regarding investor demand in Asia? - Management noted that investor demand for Asia continues to increase, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia [36][37] Question: What is the normalized level of ROE for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% as the insurance business matures and third-party capital contributions increase [42][55] Question: How do you see the capital markets business expanding from the GA side? - Management highlighted the potential for significant capital markets opportunities, estimating hundreds of millions of dollars annually as the business develops [60][61] Question: Can you elaborate on how changes in the insurance business enhance client partnerships? - Management emphasized that owning an insurance company provides a better understanding of client needs, allowing for improved service and competitive advantages [70]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record highs compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with adjusted non-compensation expenses of $37 million for the quarter, down from last year [7] - The adjusted tax rate for the first nine months was 4%, with a potential adjusted tax rate of 32% excluding stock-based compensation benefits [7][8] Business Line Data and Key Metrics Changes - The number of active engagements and overall pipeline reached record levels, with the European business up over 50% from last year [4] - The company has made significant investments, adding 25 senior bankers across various sectors and regions, representing 18% of the total partner base [5] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity and a substantial exit backlog building for 2026 [5] Company Strategy and Development Direction - The company is focused on scaling its operations and expanding client coverage in strategically active industries for both corporates and private equity [6] - The acquisition of Devon Park is expected to significantly enhance the company's capabilities and revenue potential, providing new capital relationships and sponsor clients [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scaling strategy and anticipated significant revenue growth from recent investments [6] - The company is seeing steady activity in its liability management business, with expectations for continued growth in 2026 [25] Other Important Information - The company returned an additional $12 million to equity holders in the third quarter, with year-to-date returns exceeding $157 million [8] - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management noted that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected in the coming months [12][14] Question: Recruiting environment and contributions from new hires - Of the 25 senior bankers added, nine are already contributing to revenue, with expectations for the remaining hires to add value in 2026 [15][16] Question: Restructuring activity and client engagement levels - The company is experiencing steady activity in its liability management business, with expectations for it to be a higher contributing business this year compared to last [25] Question: Contribution from the Devon Park acquisition - The Devon Park business is expected to be a significant contributor to overall revenue, similar to other business groups within the company [26][28]

Financial Data and Key Metrics Changes - The company reported a net income of PEN 456 million for the quarter, representing an 81% increase year-over-year, with a return on equity (ROE) of approximately 16% [9][16] - The accumulated ROE for the first nine months of 2025 stands at 17.4%, which would have been 18.3% excluding the one-off impact from Rutas de Lima [9][16] - Risk-adjusted net interest margin (NIM) improved by 60 basis points over the past quarter, with a current NIM of 3.8% [9][28] Business Line Data and Key Metrics Changes - Interbank's loan portfolio grew by over 5% year-over-year, with higher-yielding loans increasing by 7% year-over-year and 3% in the last quarter [21][39] - Interseguro reported strong performance in private annuities and life insurance, with retail premiums growing by 58% year-over-year [10][35] - Inteligo's assets under management reached new record highs, growing at a double-digit pace [7][32] Market Data and Key Metrics Changes - Peru's GDP growth was reported at 3.3% as of August, with projections for private investment growth at 6.5% by year-end [4][12] - Inflation in Peru remains low at around 1.7% for 2025, and the Peruvian sol has appreciated by approximately 10% this year [11][12] - The internal demand projection for 2025 has been revised upward to 5.1%, driven by solid growth in private investment and consumption [13][14] Company Strategy and Development Direction - The company aims for focused and profitable growth, emphasizing digital excellence and deepening primary client relationships through data-driven services [7][10] - There is a commitment to enhancing the payments ecosystem with PLIN and EasyPay, focusing on increasing transactional volumes and offering value-added services [23][25] - The company is investing in technology to improve user experience, cybersecurity, and AI capabilities, reflecting a strategic focus on long-term growth [20][36] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook due to international conditions and the pre-election period, but remains optimistic about Peru's economic stability and growth prospects [4][5] - The company is closely monitoring the Rutas de Lima situation, with current exposure representing less than 1% of the investment book [5][48] - Future growth is expected to be supported by strong consumer demand and liquidity from pension fund withdrawals, although short-term impacts may be negative [50][51] Other Important Information - The company has made significant progress in sustainability, with a sustainable loan portfolio exceeding $350 million [40][41] - The cost-to-income ratio at the IFS level stands at 37.7%, reflecting ongoing investments in strategic growth initiatives [20][39] Q&A Session Summary Question: Can you provide details about the impairment related to Rutas de Lima and its outlook? - The company has already reduced the value of its holdings in Rutas de Lima by 40%, and further clarity is expected by the end of the fourth quarter [45][48] Question: How will pension fund withdrawals impact retail growth? - Pension fund withdrawals may have a short-term negative impact on growth, but they will also provide liquidity that could benefit collections and funding [49][51] Question: What are the expectations for loan growth in 2025 and 2026? - The company expects to continue accelerating growth in credit cards and consumer finance, with a focus on gaining market share [56][59] Question: What is the outlook for corporate-level disbursements in 2026? - Corporate activity is expected to remain mild, with no large projects anticipated, primarily focusing on working capital replenishment and small CapEx [62][64]

Financial Data and Key Metrics Changes - The company reported fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest in its history as a public company [4][6] - Management fees reached $1.1 billion, up 19% year over year, with a healthy growth of 16% excluding catch-up fees [4][5] - Total transaction and monitoring fees were $328 million, while capital markets fees were strong at $276 million [5][6] - Adjusted net income was $1.3 billion, reflecting an 8% increase year over year [7][8] Business Line Data and Key Metrics Changes - Insurance segment operating earnings were $305 million, with a run rate around $250 million [6] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [6] - Realized performance and investment income totaled $935 million within the asset management segment [7] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year over year [9] - The private equity and real asset business lines raised $16 billion in capital during the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][14] - There is a focus on raising third-party capital to grow Global Atlantic in a capital-efficient manner [13][14] - The company aims to achieve $4.50+ in fee-related earnings per share and $78 in after-tax adjusted net income per share by 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current monetization environment and the potential for future earnings growth [26][34] - The company noted that while some private equity firms may face challenges, it has learned from past experiences and is well-positioned for future performance [28][29] - The outlook for credit fundamentals remains attractive, with expectations for continued strong fundraising [31][32] Other Important Information - The company has approximately $17 billion of embedded gains across its asset management and strategic holdings, indicating strong portfolio performance [24][25] - A one-time charge related to the Asia Private Equity Fund is expected in Q4, which will impact net realized performance income [22][23] Q&A Session Summary Question: Can you summarize your international perspective, particularly regarding Asia? - Management noted increasing investor demand for Asia, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia, and expects Asia to grow faster than the rest of KKR [36][37][39] Question: What is the normalized ROE trajectory for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% over time, driven by the maturation of the alts portfolio and third-party capital contributions [54][55] Question: How do you see the capital markets business expanding from the GA side? - Management highlighted the potential for substantial growth in the capital markets business, estimating hundreds of millions of dollars in annual opportunities from Global Atlantic [60][61] Question: Can you elaborate on how changes in the insurance business enhance client partnerships? - Management emphasized that owning an insurance company provides a better understanding of client needs, allowing for improved service and competitive advantages [70]

Financial Data and Key Metrics Changes - The company expects to grow EPS by $1-$2 in 2026, driven by cost actions and success from the EM pipeline, despite a potentially flattish demand environment [7][8] - Working capital has been a source of cash of $250 million in 2025, but a similar level is not expected for 2026 [37][38] - Free cash flow for 2026 is projected to be at least $700 million-$800 million, indicating a sustainable level of cash generation [38] Business Line Data and Key Metrics Changes - Engineered materials volumes were down 8% year-over-year, with standard-grade materials experiencing more significant declines compared to thermoplastic elastomers, which showed growth [19][30] - The company is focusing on cost savings in engineered materials, targeting $30 million-$50 million in additional savings, net of inflation [48][49] Market Data and Key Metrics Changes - Pricing pressure in the acetyl chain has been noted, particularly in Europe, while stabilization in pricing has been observed in China [17][18] - The company is experiencing a lower base of demand compared to historical levels, with no significant accelerated destocking across the board [34][35] Company Strategy and Development Direction - The company is prioritizing cash flow improvement, cost reductions, and top-line growth as key strategies moving into 2026 [7] - A focus on divestitures continues, with a commitment to $1 billion in divestitures by the end of 2027, with the recent Micromax transaction contributing significantly towards this goal [54][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EPS growth despite a challenging demand environment, emphasizing the resilience of the company [78] - The dialogue around anti-involution in China is increasing, with expectations that profitability of assets in China needs to improve [81] Other Important Information - The company recorded a significant impairment related to Zytel and nylon, driven by a reduction in market cap rather than cash flow projections [72] - The Lanaken enclosure is expected to yield $20 million-$30 million in productivity savings by 2027 [42] Q&A Session Summary Question: Early look at 2026 earnings control - Management indicated that priorities for 2026 include increasing cash flow, cost improvements, and driving top-line growth, with an expected EPS growth of $1-$2 [7] Question: EM pricing outlook - Management noted that there are still opportunities for price increases in standard-grade materials and new elements from the pipeline [10] Question: Operating rates in the acetyl chain - Management stated that the lowest-cost assets are running at full capacity, while other assets are flexibly operated based on demand [13][14] Question: Sequential pricing pressure in the acetyl chain - Pricing pressure has been observed in Europe, particularly in downstream products, while stabilization has occurred in China [17][18] Question: Volume decline in engineered materials - The decline is primarily in standard-grade materials, while thermoplastic elastomers have shown resilience [19][30] Question: Free cash flow expectations - Working capital has been a source of cash this year, but similar contributions are not expected in 2026, with a projected free cash flow of $700 million-$800 million [37][38] Question: Divestiture strategy - The company is committed to divesting non-core assets, with the Micromax transaction being a significant step towards the $1 billion target by 2027 [54][55] Question: Impact of European acetate tow closure - Management indicated that the closure will not have ripple effects across the acetates network [98]

Financial Data and Key Metrics Changes - The company reported record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24][26] - Debt to EBITDA ratio stands at 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - Liquids segment achieved record mainline volumes of approximately 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - Gas transmission experienced strong performance with favorable contracting outcomes and contributions from new projects [25] - Gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25][21] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on growth commitments [8][29] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][70] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][26] - Focus on brownfield projects that are capital efficient and strategically aligned with energy fundamentals [29][31] - The company is positioned to capitalize on the growing demand for natural gas and renewable energy projects [22][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26][31] - Positive rate settlements in gas distribution are expected to enhance revenue and support continued investment [21][26] - The company is optimistic about the future growth potential in the renewable energy sector, particularly in solar projects [22][97] Other Important Information - The company has sanctioned expansions in gas storage to meet increasing LNG-related demand, adding over 60 Bcf of new natural gas storage capacity [18][19] - The management team is focused on maintaining a disciplined capital allocation strategy while pursuing growth opportunities [28][29] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an increase in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand is driving the expedited timing for expanded egress to Canadian producers [48][49] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project backlog supporting growth [55][56] Question: Renewable energy portfolio - The company is well-positioned in the solar market, with strong customer demand and several projects in development [96][97]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record highs compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with non-compensation expenses totaling $37 million for the quarter, down from last year [7] - The company returned an additional $12 million to equity holders in the third quarter, with year-to-date returns exceeding $157 million [8] Business Line Data and Key Metrics Changes - The European business saw an increase of over 50% from the previous year, with a record number of active engagements and overall pipeline [4] - The company added 25 senior bankers across sectors and regions, representing 18% of the total partner base, which is expected to drive future revenue growth [5] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity as sponsors seek creative solutions for liquidity [5] Company Strategy and Development Direction - The company is focused on scaling its operations and expanding client coverage in strategically active industries, believing that these investments will lead to significant revenue growth [6] - The acquisition of Devon Park is seen as a game changer, providing new capabilities and expanding the addressable market [5][17] Management's Comments on Operating Environment and Future Outlook - Management noted a steady pace of activity in the liability management business, with expectations for continued growth in 2026 [25] - The company is optimistic about the contributions from the Devon Park acquisition and expects it to significantly impact revenue once fully integrated [27][28] Other Important Information - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management indicated that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected in the coming months [12][14] Question: Recruiting environment and future expectations - Of the 25 senior bankers added, nine are already contributing, with expectations for further contributions in 2026 [15][16] Question: Restructuring activity and client engagement - The company is experiencing steady activity in its liability management business, with no systemic issues observed despite some high-profile bankruptcies [25] Question: Contribution from Devon Park acquisition - The Devon Park business is expected to be a significant contributor to overall revenue, similar to other business lines [26][27]

Financial Data and Key Metrics Changes - Total company revenue was $572.8 million in Q3 2025, representing a 17% year-over-year growth compared to $489.6 million in Q3 2024 [3] - Adjusted EBITDA was $118.9 million in Q3 2025, a 17.1% increase from $101.6 million in the same quarter prior year [7] - Adjusted net income attributable to the company was $49.9 million, with adjusted earnings per share of $0.39, compared to $44.3 million and $0.37 in the prior year [8] Business Line Data and Key Metrics Changes - In the Occupational Health operating segment, total revenue was $526 million in Q3 2025, a 13.6% increase from the prior year [9] - Workers' compensation revenue was $343.5 million, up 15% year-over-year, with visits per day increasing 9.8% [9] - Employer services revenue increased by 11.9% to $173.2 million, with visits per day up 8.9% [9] Market Data and Key Metrics Changes - Total patient visits increased 9.2% in the quarter to more than 55,500 visits per day [3] - Workers' compensation visits per day increased 9.8%, while employer services visit volumes increased 8.9% relative to the prior year [4] - The company noted a strong correlation between workers' compensation volume and employment levels reported by the BLS, although recent data showed a lack of correlation [5] Company Strategy and Development Direction - The company finalized the integration and rebranding of the Nova Occupational Health Centers and opened additional centers, with plans for more by year-end [2] - The focus is on organic growth and capturing market share, particularly in the on-site health clinics segment, which reported a 123.8% revenue increase due to the acquisition of Pivot OnSite Innovations [11] - The company is shifting back to its core acquisition strategy after integrating Nova and Pivot, targeting smaller practices with one to five occupational health centers [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating no significant headwinds or obstacles anticipated for 2026 [33] - The company is focused on leveraging technology to improve customer engagement and operational efficiencies, which is seen as a competitive advantage [49][50] - Management expects a strong rate year in California and anticipates similar rate increases for employer services in line with inflation [66] Other Important Information - The company ended the quarter with a total debt balance of $1.61 billion and a cash balance of $50 million, with a net leverage ratio of 3.6x [17] - A cash dividend of $0.0625 per share was declared, payable on December 9, 2025 [21] - The company raised the low end of its 2025 revenue guidance from $2.13 billion to $2.145 billion [22] Q&A Session Summary Question: Any major headwinds or tailwinds for 2026? - Management sees no significant headwinds and remains bullish about the upcoming year [33] Question: What is driving the improvement in employer services volume? - The company has implemented various sales and marketing strategies, leveraging technology to enhance customer engagement and retention [37] Question: Can you elaborate on the decoupling of workers' comp visit volume from BLS data? - Management noted a lack of correlation over the past two years, which was previously strong, and is uncertain about the factors driving this change [46] Question: How stable is the labor force and cost environment? - The company reported stability in labor force statistics and turnover rates, with no significant changes in costs [54] Question: What are the rate expectations for 2026? - Management expects a strong rate year for workers' comp, particularly in California, and normal rate increases for employer services in line with inflation [66]

Financial Data and Key Metrics Changes - Brookdale achieved a consolidated occupancy of 81.8% for Q3 2025, marking an improvement of 290 basis points year-over-year and 170 basis points sequentially [29][30] - Adjusted EBITDA for Q3 increased by 20% year-over-year to $111.1 million, with year-to-date adjusted EBITDA up 22.5% [35][36] - The company generated positive adjusted free cash flow of $21.8 million in Q3, a 57% increase compared to the prior year [16][35] Business Line Data and Key Metrics Changes - The occupancy growth was driven by targeted initiatives, including the SWAT team approach, which reduced the number of communities below 70% occupancy from 143 in Q1 to 89 in Q3 [13][14] - Revenue per available room (Rev Par) increased by 5.9% year-over-year, supported by a 2.2% increase in revenue per occupied room [31][32] Market Data and Key Metrics Changes - The senior living industry is experiencing strong demand due to the aging baby boomer population, with the first baby boomers turning 80 in 2026 [11][12] - New construction starts in the senior living sector are at record lows, contributing to a future scarcity of available units [12][52] Company Strategy and Development Direction - The company is focused on five strategic priorities: improving operating performance, optimizing the real estate portfolio, reinvesting capital, reducing leverage, and elevating quality for residents and associates [17][19] - A new regional operating structure has been implemented to enhance operational excellence and accountability across the organization [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture opportunities in the senior living market, emphasizing the importance of operational focus and strategic pricing [44][49] - The company anticipates mid-teen percentage growth in adjusted EBITDA over the next several years, driven by improved occupancy and effective capital deployment [24][74] Other Important Information - Brookdale plans to hold an investor day in early 2026 to provide more details on strategic priorities and expected results [23] - The company is transitioning 55 communities leased from Ventas and expects to complete these transitions by year-end 2025 [27][39] Q&A Session Summary Question: What areas of opportunity have been identified within the Brookdale portfolio? - The CEO noted that a clear picture of opportunities is evolving, with a focus on driving the business rather than reacting to it [43][44] Question: How is the company balancing pricing focus versus occupancy? - The CEO emphasized a more offensive posture, focusing on operational excellence and strategic pricing to drive occupancy and NOI growth [44][49] Question: What is the rationale behind the new FFO disclosure? - The CFO explained that the FFO metric provides additional insight into the company's performance and value compared to other real estate companies [57][59] Question: How will the organizational changes impact G&A costs? - The CEO indicated that the changes are expected to result in a net zero impact on G&A costs while enhancing operational focus [61][62] Question: What are the plans for addressing upcoming debt maturities? - The CFO stated that the company plans to extend and refinance bank debt due in 2026, focusing on managing upcoming maturities effectively [70][71]

Financial Data and Key Metrics Changes - For the September quarter, the company's net investment income (NII) was $79.4 million, equating to $0.17 per common share, with a net asset value of $3 billion or $6.45 per common share [4] - The net debt to total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 80.8% of total debt plus preferred [4] - Monthly common shareholder distributions of $0.045 per share were announced for November, December, and January, totaling over $4.6 billion distributed since the IPO [4] Business Line Data and Key Metrics Changes - The company has increased its focus on first lien senior secured middle market loans, with the first lien mix rising by 701 basis points to 71.1% from June 2024 [5] - The second lien senior secured middle market loans mix decreased by 292 basis points to 13.5%, while subordinated structured notes decreased by 808 basis points to 0.3% [5][8] - Investments during the quarter included a new investment in The Ridge, a healthcare services provider, and follow-on investments in existing portfolio companies [8] Market Data and Key Metrics Changes - As of September 2025, the company held 92 portfolio companies across 32 different industries, with an aggregate fair value of $6.5 billion [7] - The middle market lending strategy represented 85% of investments at cost, an increase of 864 basis points from June 2024 [7] - The real estate property portfolio at National Property REIT Corp represented 14% of investments at cost, with an unlevered investment level gross cash IRR of 24% since inception [9] Company Strategy and Development Direction - The company is repositioning its business by rotating assets into first lien senior secured loans and focusing on companies with less than $50 million of EBITDA, where competition is lower [5][10] - Future asset sale proceeds are expected to be redeployed primarily into more first lien senior secured loans and selected equity-linked investments [10] - The company aims to enhance portfolio company operations and utilize a cost-efficient floating rate revolver [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted a strong recurring revenue profile, with interest income making up 97% of total investment income [10] - Non-accruals as a percentage of total assets stood at approximately 0.7% based on fair market value, indicating a focus on capital preservation [10] - The company is optimistic about the future, focusing on smaller companies in the lower middle market to achieve higher yields [21] Other Important Information - The company completed the institutional issuance of approximately $168 million in senior unsecured notes due 2030, primarily for refinancing existing indebtedness [12] - As of September, the combined balance sheet cash and undrawn revolving credit facility commitments stood at $1.5 billion, with $4.2 billion of unencumbered assets [12] - The weighted average cost of unsecured debt financing was 4.54% as of September 30, 2025 [13] Q&A Session Summary Question: Inquiry about equity-linked rotation and consumer finance holdings - Management indicated a preference for first lien and senior secured loans, with a focus on optimizing the portfolio by evaluating each investment based on foregone yield and IRR [16][19] - The company is actively rotating appreciated assets into more income-producing properties, particularly in real estate, while maintaining a thoughtful approach to asset sales [20][22] Question: Discussion on the Israeli bond and unsecured financing - Management confirmed that the Israeli bond issuance is a new channel and not a one-off, with plans to continue expanding their presence in diversified financing [29][30] - The company emphasized the importance of diversified funding sources to mitigate counterparty risk and maintain a strong credit profile [32][33]