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    Arren Cyganovich • Truist Securities

    Arren Cyganovich's questions to MidCap Financial Investment Corp (MFIC) leadership

    Arren Cyganovich's questions to MidCap Financial Investment Corp (MFIC) leadership • Q2 2025

    Question

    Arren Cyganovich asked about investment expectations and pipeline activity for the second half of the year. He also questioned the recent increase in net leverage to 1.44x and inquired about the company's target leverage range.

    Answer

    President Ted McNulty noted that after a slow start to the year, the M&A pipeline is building, and he anticipates an active second half. Both McNulty and CEO Tanner Powell addressed leverage, explaining that the company intentionally operated at a slightly higher level in anticipation of the Merx paydown and that the pro forma leverage is within their target range, which is at the lower end of their stated capacity.

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    Arren Cyganovich's questions to PennantPark Floating Rate Capital Ltd (PFLT) leadership

    Arren Cyganovich's questions to PennantPark Floating Rate Capital Ltd (PFLT) leadership • Q3 2025

    Question

    Arren Cyganovich of Truist Securities asked for more detail on the expected timeline for PFLT's net investment income (NII) to fully cover its dividend. He also inquired about the underlying credit quality trends within the portfolio, specifically regarding metrics like EBITDA growth at the portfolio company level.

    Answer

    Art Penn, Founder and Managing Partner, outlined three primary levers for NII growth: 1) increasing leverage to the target of ~1.5x, 2) fully deploying capital in the existing PSSL (Kemper) JV, and 3) ramping up the new Hamilton Lane JV. He stated that these levers should enable PFLT to more than cover the dividend over time. On credit quality, Mr. Penn noted that portfolio company EBITDA is generally growing in the mid-to-upper single digits and that overall credit metrics, like low non-accruals and leverage, remain strong.

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    Arren Cyganovich's questions to Main Street Capital Corp (MAIN) leadership

    Arren Cyganovich's questions to Main Street Capital Corp (MAIN) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist Securities asked about the interplay between the below-average private loan pipeline and recent spread tightening, and also inquired about the company's funding strategy for its upcoming debt maturities.

    Answer

    Nick Meserve, MD of the Private Credit Investment Team, explained that softer M&A activity on the private equity side is the primary driver of the slower pipeline, and that reduced deal flow increases competition, leading to spread compression. Regarding debt maturities, CFO Ryan Nelson and CEO Dwayne Hyzak emphasized the company's 'ample liquidity' and strong capital structure, which allows them to be opportunistic and not forced into refinancing if market conditions are unfavorable. They plan to monitor the markets and potentially act to de-risk the upcoming maturities.

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    Arren Cyganovich's questions to Goldman Sachs BDC Inc (GSBD) leadership

    Arren Cyganovich's questions to Goldman Sachs BDC Inc (GSBD) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist asked about the company's below-target leverage, questioning the outlook for increasing it in the second half of the year and the sufficiency of the investment pipeline. He also requested more detail on the specific resolutions for non-accrual investments during the quarter.

    Answer

    Co-CEO David Miller explained that leverage should increase as deals that slipped from Q2 begin to fund and the new deal pipeline remains strong. Miller also detailed non-accrual changes, noting one new addition (Streamline Media), two restorations to accrual status (Bayside OpCo, Lithium), and one exit (Kawah), attributing the changes to improved performance and restructurings.

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    Arren Cyganovich's questions to Blue Owl Capital Corp (OBDC) leadership

    Arren Cyganovich's questions to Blue Owl Capital Corp (OBDC) leadership • Q2 2025

    Question

    Arren Cyganovich inquired about the drivers behind the optimistic outlook for a rebound in second-half deal activity and the company's target leverage range going forward.

    Answer

    CEO Craig Packer cited a noticeable pickup in sponsor engagement over the last 60 days, with potential for public-to-private deals, refinancings, and sponsor-to-sponsor sales. President Logan Nicholson addressed leverage, stating the recent reduction was intentional and the company is comfortable operating near the top end of its target range, around 1.15x to 1.20x.

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    Arren Cyganovich's questions to FS KKR Capital Corp (FSK) leadership

    Arren Cyganovich's questions to FS KKR Capital Corp (FSK) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist Financial Corporation inquired about the investment environment for the second half of 2025 and the company's watch list beyond the four newly designated non-accrual assets.

    Answer

    Daniel Pietrzak, President & Chief Investment Officer, acknowledged a challenging quarter but noted a significant increase in deal screening in Q2. He expressed cautious optimism for a pickup in M&A activity later in the year. Regarding the watch list, he pointed to assets in risk ratings 3 and 4 (approx. 7% of the portfolio) and highlighted ongoing concerns about the higher rate environment and its potential impact on certain sectors.

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    Arren Cyganovich's questions to Blackstone Secured Lending Fund (BXSL) leadership

    Arren Cyganovich's questions to Blackstone Secured Lending Fund (BXSL) leadership • Q2 2025

    Question

    Arren Cyganovich from Truist Securities asked for details on the types of deals in the pipeline, such as M&A versus refinancing, and which industries are seeing the most activity. He also requested the current spillover income.

    Answer

    CFO Teddy Desloge noted that recent activity was concentrated in incumbent portfolio companies, while Co-CEO Brad Marshall added that a significant shift towards new M&A is underway, with August expected to be the busiest month since 2021. Teddy Desloge also confirmed the spillover income was $1.86 per share.

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    Arren Cyganovich's questions to Sixth Street Specialty Lending Inc (TSLX) leadership

    Arren Cyganovich's questions to Sixth Street Specialty Lending Inc (TSLX) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist Securities, Inc. inquired about the firm's view on opening retirement vehicles to private assets and requested details on a new structured credit investment.

    Answer

    CEO Joshua Easterly expressed mixed feelings, supporting investor access but voicing concerns about fiduciary responsibility and investor protection in the retail channel. Regarding the investment, he explained that they opportunistically invest in structured credit portfolios of corporate loans, typically rated BB or BBB, which offer competitive risk-adjusted returns and that they actively trade in and out of this market.

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    Arren Cyganovich's questions to Sixth Street Specialty Lending Inc (TSLX) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist Securities asked for management's perspective on opening retirement vehicles to private assets and its potential market impact. He also requested details on a new structured credit investment made during the quarter.

    Answer

    CEO Joshua Easterly expressed mixed feelings, supporting retail access but voicing concern about misaligned incentives and the need for strong investor protections. He explained the structured credit investment was an opportunistic purchase of a rated security backed by corporate loans, a market they have entered and exited over the years to generate attractive risk-adjusted returns.

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    Arren Cyganovich's questions to Ares Capital Corp (ARCC) leadership

    Arren Cyganovich's questions to Ares Capital Corp (ARCC) leadership • Q2 2025

    Question

    Arren Cyganovich of Truist Financial Corporation asked if the strong deal activity seen in the upper middle market was broadening to the core and lower middle markets. He also followed up on the company's leverage, asking for the rationale behind operating at a lower level than peers.

    Answer

    CEO Kort Schnabel confirmed that deal activity is indeed broadening out across all market segments, which is a positive sign for momentum in the second half of the year. Regarding leverage, he reiterated that operating at the lower end of their stated 0.9x to 1.25x range provides significant flexibility to capitalize on future opportunities without needing to increase leverage to support earnings, as the dividend is already well-covered.

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