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    Casey Alexander • Compass Point Research & Trading, LLC

    Casey Alexander's questions to Barings BDC Inc (BBDC) leadership

    Casey Alexander's questions to Barings BDC Inc (BBDC) leadership • Q2 2025

    Question

    Casey Alexander questioned the modest pace of share repurchases given the stock's wide discount to NAV and asked about other measures to close the gap. He also asked if Barings is seeing a similar surge in August deal activity as other BDCs and how it would manage new deals with already high leverage.

    Answer

    President Matthew Freund explained that blackout periods, sometimes extended by strategic activities, have constrained their ability to repurchase shares but that it remains a core strategy. He expects the NAV gap to narrow as ROE improves. Regarding deal flow, he was skeptical of August being a record month but confirmed the pipeline is strong. He stated BBDC will continue to run leverage at the higher end of its range, supported by a balanced capital base and high-quality assets.

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    Casey Alexander's questions to Barings BDC Inc (BBDC) leadership • Q4 2024

    Question

    Casey Alexander questioned the outlook for fee and other income in 2025, given the cautious commentary on deal flow, and asked if a one-time event contributed to the strong fee income in Q4 2024.

    Answer

    President Matthew Freund projected that fee income would likely be 'flat to flat' in 2025, as a potential decrease in OID acceleration from fewer new deals could be offset by an increase in amendment and extension fees from the existing portfolio. He confirmed that a single transaction with a substantive fee made Q4 an outlier and recommended using a trailing four-quarter average for modeling purposes.

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    Casey Alexander's questions to Runway Growth Finance Corp (RWAY) leadership

    Casey Alexander's questions to Runway Growth Finance Corp (RWAY) leadership • Q2 2025

    Question

    Casey Alexander of Compass Point Research & Trading LLC questioned whether the quarter's new originations were shared with the BC Partners platform or taken entirely by the BDC.

    Answer

    CFO & COO Thomas Raterman clarified that the two new investments in the quarter, Auto Books and Swing, were held exclusively by the BDC. However, he noted that two subsequent-to-quarter-end deals were participations in larger transactions originated by the broader BC Partners platform, demonstrating the intended synergy.

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    Casey Alexander's questions to Runway Growth Finance Corp (RWAY) leadership • Q4 2024

    Question

    Casey Alexander of Compass Point Research & Trading inquired about the seemingly low volume of new originations early in the first quarter and asked for the percentage of the loan portfolio trading at its interest rate floors.

    Answer

    Chief Investment Officer Greg Greifeld explained that originations are typically back-loaded in a quarter and that current activity is not indicative of the final outcome. Chief Financial Officer Tom Raterman added that the majority of the loan book is trading at or above its interest rate floors, with newer deals at the floors and older deals above them.

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    Casey Alexander's questions to Hci Group Inc (HCI) leadership

    Casey Alexander's questions to Hci Group Inc (HCI) leadership • Q2 2025

    Question

    Casey Alexander of Compass Point Research & Trading, LLC sought clarification on whether the 25,000 depopulation approval was per entity or total, and inquired about emerging opportunities outside of Florida and how Exeo's technology would aid in that expansion.

    Answer

    CFO Mark Harmsworth confirmed the approval was for 25,000 policies for each of the three underwriting entities, for a total of 75,000. Chairman & CEO Paresh Patel expressed excitement about opportunities in other states, stating that Exeo's technology is key to identifying and capitalizing on them with a careful, multi-year approach. He emphasized that the technology continues to improve HCI's performance, independent of past legislative reforms.

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    Casey Alexander's questions to Hci Group Inc (HCI) leadership • Q1 2025

    Question

    Casey Alexander of Compass Point Research & Trading, LLC asked if the full spin-off of Exzeo was intended to resolve potential conflicts of interest with future clients. He also inquired if Exzeo's offering is a prepackaged or customized solution and how the company's convertible notes would be settled.

    Answer

    President of Exzeo Kevin Mitchell confirmed that eliminating conflicts of interest was a primary driver for the 100% spin-off to enable future growth. Chairman and CEO Paresh Patel clarified that Exzeo operates as a solution-based platform with a variable, per-policy fee model, rather than a customized software sale. CFO Mark Harmsworth stated the convertible notes would be settled with shares.

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    Casey Alexander's questions to Hci Group Inc (HCI) leadership • Q3 2024

    Question

    Casey Alexander noted that his intended questions had already been asked by the previous analyst, Mark Hughes.

    Answer

    As Casey Alexander's questions were preempted, there was no direct response from management. He deferred to the answers already provided to Mark Hughes, which covered topics including premium run-rates, ceded premiums, and holding company liquidity.

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    Casey Alexander's questions to Blue Owl Capital Corp (OBDC) leadership

    Casey Alexander's questions to Blue Owl Capital Corp (OBDC) leadership • Q2 2025

    Question

    Casey Alexander inquired about how Blue Owl plans to scale its new equipment leasing joint venture to a meaningful size for OBDC, given the typical characteristics of that market.

    Answer

    CEO Craig Packer clarified that the JV is an example of new opportunities rather than a future massive investment. He highlighted that 'chunky' opportunities exist, particularly in financing data centers and GPUs for investment-grade counterparties, which differ from traditional micro-ticket leasing. He also referenced the company's existing successful equipment financing business within its Wingspire JV.

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    Casey Alexander's questions to Blue Owl Capital Corp (OBDC) leadership • Q1 2025

    Question

    Casey Alexander inquired about opportunities to lower costs by rationalizing the liability structure inherited from the OBDE merger. He also asked for clarification on whether the supplemental dividend is calculated based on adjusted earnings or GAAP earnings.

    Answer

    CFO Jonathan Lamm confirmed that there are significant opportunities to optimize the inherited liabilities. He stated that the company has already begun this process by repricing certain facilities, a CLO, and repaying high-coupon OBDE notes at the first opportunity. He also clarified that the supplemental dividend is calculated based on adjusted net investment income, not GAAP figures.

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    Casey Alexander's questions to Blue Owl Capital Corp (OBDC) leadership • Q4 2024

    Question

    Casey Alexander congratulated the team on the seamless OBDE merger and asked two questions: first, how far along the portfolio is in recognizing the impact of Fed rate cuts, and second, about the current level of onboarding yields and what it would take for spreads to normalize.

    Answer

    CEO Craig Packer stated that as of quarter-end, a little over two-thirds (about 70%) of the portfolio had recognized the rate resets. He explained that new unitranche spreads are currently tight, around 475-500 basis points, due to moderate M&A activity and a strong syndicated loan market. However, he noted this still represents a significant premium over the syndicated market. Packer anticipates that an increase in M&A or a loosening of the syndicated market could allow spreads to widen.

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    Casey Alexander's questions to Blue Owl Capital Corp (OBDC) leadership • Q3 2024

    Question

    Casey Alexander inquired about the sustainable run rate for dividend and fee income for the upcoming quarters, noting a variance in his Q3 model.

    Answer

    CEO Craig Packer and CFO Jonathan Lamm clarified that income components can fluctuate. Packer explained that dividend income from certain investments was slightly down from Q2, and fee income from repayments normalized after an exceptionally high Q2. He guided that Q4 dividend income should be in a similar range, while prepayment fees will depend on market activity.

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    Casey Alexander's questions to FS KKR Capital Corp (FSK) leadership

    Casey Alexander's questions to FS KKR Capital Corp (FSK) leadership • Q2 2025

    Question

    Casey Alexander of Compass Point Research & Trading, LLC asked about the company's future dividend policy for 2026 and how it plans to manage a high level of new investment activity given its leverage targets.

    Answer

    Daniel Pietrzak, President & CIO, indicated that formal 2026 dividend guidance would come on the Q3 call but confirmed the policy will be 'NII led,' considering factors like the spread environment and debt refinancing costs. To manage new deal flow, he highlighted the JV's growth capacity and the high correlation between new originations and portfolio repayments, while stressing adherence to the target leverage band is paramount.

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    Casey Alexander's questions to FS KKR Capital Corp (FSK) leadership • Q1 2025

    Question

    Casey Alexander asked about the KKR macro group's view on recession odds, the potential for further portfolio yield compression, and whether loans spilling over from the broadly syndicated market carry lower yields.

    Answer

    Chief Investment Officer & Co-President Daniel Pietrzak relayed that KKR's macro team sees a recession as 'more likely than not,' though it could be muted. He acknowledged the potential for downward pressure on yields as the portfolio churns but emphasized a focus on risk-adjusted returns. Pietrzak also confirmed that while loans from the syndicated market can have lower spreads, private credit is increasingly valued for the lender relationship, not just for certainty of execution, and FSK is positioned to act if volatility increases.

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    Casey Alexander's questions to FS KKR Capital Corp (FSK) leadership • Q4 2024

    Question

    Casey Alexander from Compass Point Research & Trading asked for quantification of new originations that were delayed from Q4 2024 to Q1 2025, questioned the source of the building deal pipeline if M&A is delayed, and inquired if the MAVERICK sale was above or below its Q4 mark.

    Answer

    Chief Investment Officer Daniel Pietrzak stated that a handful of deals slipped into Q1, which would have generated an additional $0.02 to $0.03 in fee income. He clarified that while a major M&A wave might be slower to materialize due to policy uncertainty, the pipeline is still building and is busier than in 2023 and 2024. Regarding MAVERICK, Mr. Pietrzak confirmed the sale price was above the Q4 mark, consistent with the company's valuation methodology.

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    Casey Alexander's questions to FS KKR Capital Corp (FSK) leadership • Q3 2024

    Question

    Casey Alexander asked about the significant increase in Payment-In-Kind (PIK) income and its expected trend. He also inquired about the Board's expected approach to the 2025 dividend policy, considering potential rate compression and declining base rates.

    Answer

    Daniel Pietrzak, CIO, stated that roughly half of the PIK income is from intentionally structured junior debt in large, stable companies, while the rest relates to restructured businesses needing flexibility. Brian Gerson, Co-President, added that the PIK option is a strategic tool to support turnarounds. Regarding the dividend, Daniel Pietrzak and Michael Forman, CEO, reiterated that the Board takes a long-term view, setting the base dividend at $0.64, and noted that significant spillover income is available to support the total $0.70 distribution.

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    Casey Alexander's questions to Trinity Capital Inc (TRIN) leadership

    Casey Alexander's questions to Trinity Capital Inc (TRIN) leadership • Q2 2025

    Question

    Casey Alexander asked about the apparent contradiction between commentary on tariffs driving equipment finance demand and the quarter's origination mix, which was heavily skewed towards secured loans. He also requested clarification on the composition of the watchlist, specifically the split between companies needing capital versus those underperforming.

    Answer

    CEO Kyle Brown and COO Gerry Harder explained that the origination mix was a matter of timing, noting the equipment finance vertical had a strong quarter for commitments and its year-to-date deployment of 26% is in line with expectations. Chief Credit Officer Ron Cundich addressed the watchlist, stating it's a dynamic list and a combination of companies needing capital and those underperforming, which are often related issues.

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    Casey Alexander's questions to Trinity Capital Inc (TRIN) leadership • Q1 2025

    Question

    Casey Alexander asked for clarification on the 5% quarter-over-quarter drop in interest income despite being a net originator, the outlook for loan payoffs, and the specific impact of tariffs on the medical device portfolio.

    Answer

    CEO Kyle Brown attributed the income drop to the lagged effects of a prior rate cut and a significant decrease in early loan payoffs, which reduced fee income. He noted that payoffs have already returned to normal levels in Q2. Chief Credit Officer Ron Kundich and COO Gerald Harder added that a deep analysis found the tariff impact on the high-margin medical device portfolio to be 'low' as subcomponent costs are not a major factor.

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    Casey Alexander's questions to Trinity Capital Inc (TRIN) leadership • Q3 2024

    Question

    Casey Alexander questioned the sustainability of Trinity's rapid origination growth while maintaining credit quality and queried the strategy of using the ATM program so heavily for equity raises versus a syndicated offering.

    Answer

    COO Gerry Harder explained that the company's diversified vertical structure was designed for scalable growth without sacrificing credit quality. CEO Kyle Brown defended the ATM program as a more cost-effective (1% fee) and less disruptive method for raising equity compared to syndicated offerings (6-8% fee), highlighting the benefits for shareholders.

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    Casey Alexander's questions to Blackstone Secured Lending Fund (BXSL) leadership

    Casey Alexander's questions to Blackstone Secured Lending Fund (BXSL) leadership • Q2 2025

    Question

    Casey Alexander of Compass Point Research & Trading raised concerns about the trend of net realized/unrealized losses over the last four quarters and asked for an update on Medallia, the largest loan, which was marked down to 87% of par.

    Answer

    Co-CEO Brad Marshall stated that quarterly marks reflect a robust valuation process and that since inception, realized gains have exceeded losses. He confirmed Medallia is underperforming expectations, which is reflected in the mark. CFO Teddy Desloge added that overall portfolio health remains strong, with 11% EBITDA growth and minimal exposure to stressed assets.

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    Casey Alexander's questions to Blackstone Secured Lending Fund (BXSL) leadership • Q4 2024

    Question

    Casey Alexander inquired about the source of BXSL's strong Q4 origination volume, asking what percentage was derived from the existing Blackstone ecosystem versus new business, especially when other platforms reported slower activity.

    Answer

    Co-Chief Executive Officer Brad Marshall described the firm's origination capability as a "superpower," allowing them to proactively create deal flow even in slow M&A markets. He stated that over half of Q4 deals were sourced through incumbency or proactive outreach in key sectors like tech and healthcare, highlighting how scale can be a true advantage.

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    Casey Alexander's questions to Blackstone Secured Lending Fund (BXSL) leadership • Q3 2024

    Question

    Casey Alexander from Compass Point asked for a quantification of the potential earnings benefit from a normalized M&A environment and questioned why the high-quality portfolio doesn't operate at a higher leverage ratio.

    Answer

    Co-CEO Brad Marshall explained that a more active M&A market would allow for higher leverage and accelerated fee income from quicker loan turnover, suggesting a 20-25% turnover rate could be used for modeling. Regarding leverage, he emphasized that maintaining a conservative profile is crucial for preserving their strong credit ratings, which in turn drives down financing costs and maximizes long-term, loss-adjusted returns for investors.

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    Casey Alexander's questions to James River Group Holdings Ltd (JRVR) leadership

    Casey Alexander's questions to James River Group Holdings Ltd (JRVR) leadership • Q2 2025

    Question

    Casey Alexander from Compass Point Research & Trading LLC asked for clarity on the expense ratio, questioning if it would stabilize at 31% or if further reductions were possible into 2026. He also sought details on how the one-time and ongoing financial benefits from the company's redomiciling would be reflected in financial models.

    Answer

    Sarah Doran, Group CFO, clarified that while the expense ratio is expected to be around 31% for the current year, there is potential for further improvement in 2026. She explained the one-time $10-13 million redomicile benefit will materialize as a lower effective tax rate in Q4 2025, and the ongoing $3-6 million annual benefit will result from the tax rate aligning more closely with the U.S. statutory rate starting in 2026.

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    Casey Alexander's questions to James River Group Holdings Ltd (JRVR) leadership • Q1 2025

    Question

    Casey Alexander questioned the economic proposition of the Specialty Admitted segment, given its very low retained risk and minimal fee income, and asked about the company's future plans for the business, including the possibility of a complete runoff.

    Answer

    CEO Frank D'Orazio explained that the segment was intended to provide diversification without consuming significant capital but acknowledged the challenging market dynamics. He stated that the company is "constantly evaluating all of our businesses for scale and profitability where we believe we'll produce the best returns for shareholders," strongly implying that all strategic options, including a potential exit, remain under consideration.

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    Casey Alexander's questions to James River Group Holdings Ltd (JRVR) leadership • Q3 2024

    Question

    Casey Alexander sought details on the Gallatin Point conversion premium, the accounting for the Enstar deal cost, spending on the Fleming dispute, and the reasons for declining fees in the Specialty Admitted segment.

    Answer

    CFO Sarah Doran explained the Gallatin Point preferred shares have a 130% voluntary and 200% mandatory conversion premium. She stated the $52.8 million Enstar cost will be booked as an additional ceded premium in the quarter the deal closes, likely Q4, pending regulatory approval. She also noted legal fees for the Fleming dispute were under $1 million and that Specialty Admitted fees declined with lower gross written premiums, partly due to the workers' comp runoff.

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    Casey Alexander's questions to Ares Capital Corp (ARCC) leadership

    Casey Alexander's questions to Ares Capital Corp (ARCC) leadership • Q2 2025

    Question

    Casey Alexander of Compass Point Research & Trading, LLC questioned whether a significant increase in deal activity could lead to wider spreads or if market capacity would keep them tight. He also asked for clarification on the quarter-over-quarter increase in dividend income.

    Answer

    CEO Kort Schnabel suggested that while basic supply and demand could lead to wider spreads with more deal flow, the company is satisfied with the current risk-adjusted returns. Regarding dividend income, CEO Kort Schnabel and CFO & Treasurer Scott Lemm clarified that the increase was driven by a mix of recurring portfolio growth and approximately $10 million in non-recurring dividends from the equity co-investment portfolio.

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    Casey Alexander's questions to Ares Capital Corp (ARCC) leadership • Q1 2025

    Question

    Casey Alexander noted that Ares Capital sounds more optimistic than the industry consensus on M&A volume and asked about the company's playbook if origination volume slows, including how it would manage earnings against rising liability costs.

    Answer

    Incoming CEO Kort Schnabel pointed to a healthy deal backlog and historical ability to gain market share in volatile periods. He outlined several earnings management levers, including operating at the low end of their target leverage, potential for increased second-lien or Ivy Hill opportunities, and a significant spillover income buffer of $1.29 per share. CFO Scott Lem added that lower repayment rates in volatile markets also provide portfolio stability.

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    Casey Alexander's questions to Ares Capital Corp (ARCC) leadership • Q4 2024

    Question

    Casey Alexander asked what percentage of the recent 100 basis point decline in base rates had flowed through to the portfolio's yield by quarter-end. He also questioned if the significant ATM issuance and low leverage implied preparation for heightened deal activity.

    Answer

    CFO Scott Lem explained there is a lag effect, with Q4 results reflecting Q3 rate changes, and a similar impact from Q4's rate declines is expected in Q1. Then-CEO Robert DeVeer confirmed it was a 'fair assumption' that the company was building capacity for an anticipated high level of investment activity, noting they also take advantage of accretive equity issuance opportunities when the stock price is favorable.

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    Casey Alexander's questions to Ares Capital Corp (ARCC) leadership • Q3 2024

    Question

    Casey Alexander noted the significant reduction in second-lien exposure over the past three years and asked if this was a deliberate strategy or a reflection of market changes. He also asked for the breakdown between pure first-lien and unitranche loans and the typical yield premium for unitranche.

    Answer

    Co-President Kort Schnabel attributed the decline in second-lien exposure to a market-wide shift towards unitranche transactions, stating it was not an intentional strategic change for ARCC. CEO Robert Kipp DeVeer commented that defining a precise yield premium for unitranche versus first-lien is difficult as it's subjective.

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    Casey Alexander's questions to Topgolf Callaway Brands Corp (MODG) leadership

    Casey Alexander's questions to Topgolf Callaway Brands Corp (MODG) leadership • Q1 2025

    Question

    Casey Alexander questioned if strong Golf Equipment results were due to customers pulling orders forward ahead of tariffs and asked if Topgolf's value initiatives were also targeting the soft 3+ Bay events business.

    Answer

    President and CEO Chip Brewer stated they saw no evidence of customers front-running tariffs in the Golf Equipment segment. For Topgolf, CEO Artie Starrs clarified that the events business is being addressed with more localized sales flexibility rather than broad promotions. Brewer added that the events business is currently more sensitive to corporate confidence than to price.

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    Casey Alexander's questions to Topgolf Callaway Brands Corp (MODG) leadership • Q3 2024

    Question

    Casey Alexander asked about the impact of Topgolf's promotional efforts, questioning if they were more focused on the 1-2 bay consumer business. He also inquired how the reduced plan for 2025 venue openings would impact the outlook for Topgolf's adjusted free cash flow.

    Answer

    President and CEO Chip Brewer confirmed that promotions are almost entirely focused on the consumer (1-2 bay) side and are now being targeted more effectively at lapsed and new visitors using the new consumer data platform. Both Brewer and CFO Brian Lynch acknowledged that building fewer venues in 2025 will positively impact cash flow that year, but declined to provide specific 2025 guidance.

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    Casey Alexander's questions to Saratoga Investment Corp (SAR) leadership

    Casey Alexander's questions to Saratoga Investment Corp (SAR) leadership • Q4 2025

    Question

    Casey Alexander questioned the rationale for raising $32 million in equity while holding substantial cash. He also asked for details on the repayment of SBIC II debentures, the interest rate on new SBA debentures, the accounting for the annual excise tax, and the size of post-quarter-end deployments.

    Answer

    CEO Christian Oberbeck defended the equity raise as a long-term strategic decision to build a 'fortress balance sheet' and raise capital when it's available, not just when needed. CFO Henri Steenkamp confirmed the repayment of $44 million in SBIC II debentures at a ~6% rate, with new debentures costing around 5.25%. He explained the excise tax is recognized when definitive and that cash is excluded from assets for calculating management fees. He also disclosed $45 million in deployments since quarter-end.

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    Casey Alexander's questions to Saratoga Investment Corp (SAR) leadership • Q3 2025

    Question

    Casey Alexander questioned the impact of declining interest rates on portfolio yield, the potential to under-earn the dividend, the rationale for holding cash in SBIC II, and the logic behind selling equity while holding a large cash balance.

    Answer

    Executive Henri Steenkamp estimated that about two-thirds of the base rate decrease has been reflected in portfolio yields. CEO Christian Oberbeck stated the company does not anticipate under-earning its dividend, citing a strong pipeline and potential for increased M&A activity. Oberbeck also explained that holding cash in SBIC II currently creates a positive arbitrage and that the decision to sell equity was a long-term strategic move to raise permanent capital when the opportunity arose, independent of the short-term cash balance.

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    Casey Alexander's questions to Saratoga Investment Corp (SAR) leadership • Q1 2025

    Question

    Casey Alexander of Compass Point asked about competition from larger private credit platforms moving down-market, the terms of the new Live Oak facility versus the Encina facility, and the composition of the 'other income' line item.

    Answer

    Chief Investment Officer Michael Grisius stated that while they don't compete directly with large platforms for new deals, they are subject to them refinancing well-performing, late-cycle portfolio companies. Executive Henri Steenkamp detailed that the Live Oak facility has a similar cost structure to Encina but with tiered pricing, and that maintaining two facilities diversifies banking relationships despite the cost of carrying liquidity. He also clarified that 'other income' is mainly transactional from amendment and prepayment fees, which are lumpy but recurring in nature.

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    Casey Alexander's questions to Hercules Capital Inc (HTGC) leadership

    Casey Alexander's questions to Hercules Capital Inc (HTGC) leadership • Q1 2025

    Question

    Casey Alexander of Compass Point asked about the practice of waiving fees on internal refinancings and its impact on Q1 income, and whether to expect a similar dynamic in Q2.

    Answer

    CEO & CIO Scott Bluestein confirmed that Hercules typically waives prepayment penalties (but not back-end fees) when upsizing a loan for a performing portfolio company. He stated this, along with lower overall prepayments, reduced Q1 fee income. For Q2, he expressed high confidence that the $200-$250 million prepayment forecast is entirely from external sources, not internal refinancings.

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    Casey Alexander's questions to Hercules Capital Inc (HTGC) leadership • Q2 2024

    Question

    Casey Alexander of Compass Point Research & Trading, LLC questioned the strategy of repaying maturing notes with a higher-cost credit facility. He also asked if Hercules is becoming a "hybrid lender" by moving up-market and, in a follow-up, requested details on Chorus, the company placed on non-accrual.

    Answer

    CFO Seth Meyer addressed the debt repayment, confirming the use of credit facilities and an opportunistic approach to future refinancing, highlighting the new SBIC license. CEO Scott Bluestein agreed with the "hybrid lender" observation, detailing the company's evolution toward later-stage companies. Regarding Chorus, Bluestein explained the loan was impaired to a fair value of ~$32M and placed on non-accrual due to an expected principal loss and a shift from cash to PIK interest.

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    Casey Alexander's questions to RLI Corp (RLI) leadership

    Casey Alexander's questions to RLI Corp (RLI) leadership • Q1 2025

    Question

    Casey Alexander of Compass Point asked about the potential impact of tariffs on transportation and construction markets. He also questioned if RLI sees an opportunity in California's disrupted property market similar to the one it capitalized on in Florida.

    Answer

    COO Jenni Klobnak stated that RLI is prepared for tariff-related disruptions, drawing on experience from the COVID period. CEO Craig Kliethermes added that while short-term uncertainty could slow construction bidding, higher long-term costs also increase premiums, making the net effect relatively neutral. Regarding California, Mr. Kliethermes asserted that the business and regulatory environment is 'much different' and less inviting than Florida's was, a sentiment echoed by Ms. Klobnak, who cited difficulties in getting necessary rate approvals.

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    Casey Alexander's questions to RLI Corp (RLI) leadership • Q4 2024

    Question

    Casey Alexander from Compass Point questioned the accounting for the Prime investment, asking if the decline in its balance sheet value was due to an impairment. He also inquired about the equity portfolio's underperformance relative to the broader market.

    Answer

    CFO Todd Bryant confirmed there was no impairment of the Prime investment; the carrying value change was due to dividends paid and the recognition of Prime's other comprehensive income (OCI), which was impacted by bond market declines. Executive Aaron Diefenthaler explained that the equity portfolio's relative underperformance was driven by a minority portion of the allocation that is managed with a value orientation.

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    Casey Alexander's questions to SLR Investment Corp (SLRC) leadership

    Casey Alexander's questions to SLR Investment Corp (SLRC) leadership • Q4 2024

    Question

    Casey Alexander from Compass Point asked about the liability structure of the equipment finance portfolio, the nature of the ABL pipeline, and the strategic role of the SSLP for lower-yielding loans.

    Answer

    Co-CEO Bruce Spohler explained that the equipment finance portfolio is well-matched for the current inflationary environment and generates stable returns. He clarified the ABL pipeline consists primarily of individual loan opportunities rather than whole company acquisitions. He also confirmed the SSLP is actively utilized for lower-yielding cash flow loans to maintain portfolio optimization.

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    Casey Alexander's questions to MidCap Financial Investment Corp (MFIC) leadership

    Casey Alexander's questions to MidCap Financial Investment Corp (MFIC) leadership • Q4 2024

    Question

    Casey Alexander questioned why, given the company's substantial origination capacity and below-target leverage, the portfolio size wasn't increased more significantly during the quarter, suggesting it was a conscious decision.

    Answer

    CEO Tanner Powell responded that the deployment pace was a function of maintaining portfolio granularity and not over-indexing to a single quarter, rather than a deliberate decision to hold back. CFO Gregory Hunt added that the company has flexibility in its deployment strategy and is focused on ensuring it can comfortably cover the dividend while methodically levering up and redeploying capital.

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