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    Corey Johnson • UBS

    Corey Johnson's questions to Capital Southwest Corp (CSWC) leadership

    Corey Johnson's questions to Capital Southwest Corp (CSWC) leadership • Q4 2025

    Question

    Corey Johnson of UBS, on behalf of Doug Harter, asked about the potential for spread compression due to increased competition for quality deals, the expected size of upcoming investment exits, and the reasons behind the recent increase in PIK (Payment-in-Kind) income.

    Answer

    CEO Michael Sarner explained that with capital chasing a narrower field of 'safe' industries, some spread compression is possible as lenders compete for these deals. He confirmed that subsequent to quarter-end, the company realized over $20 million in gains from two equity investment exits. Sarner also noted the PIK income increase was temporary, caused by a few companies electing a PIK toggle, and he expects the recurring PIK percentage to decline to the 5-6% range in the next quarter.

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    Corey Johnson's questions to Trinity Capital Inc (TRIN) leadership

    Corey Johnson's questions to Trinity Capital Inc (TRIN) leadership • Q1 2025

    Question

    Corey Johnson, on for Doug Harter, inquired about the reasons for the slower pace of new funding commitments in Q1 and whether this represented a new, more defensive trend.

    Answer

    CEO Kyle Brown explained the slowdown was a deliberate, defensive decision to assess macroeconomic changes, particularly tariffs, similar to their 'COVID playbook.' He clarified it is not a trend, stating the pipeline is robust and that they have identified new opportunities, particularly in U.S. manufacturing equipment finance, suggesting commitment levels will increase from Q1.

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    Corey Johnson's questions to Main Street Capital Corp (MAIN) leadership

    Corey Johnson's questions to Main Street Capital Corp (MAIN) leadership • Q4 2024

    Question

    Corey Johnson, on behalf of Douglas Harter at UBS, asked about the potential for increased competition in the lower middle market, particularly from other BDCs attempting to replicate Main Street's strategy.

    Answer

    Dwayne Hyzak (Executive) stated that Main Street has not seen a change in the competitive landscape from other BDCs in the lower middle market. He emphasized that their strategy requires a private equity-focused skill set, which is distinct from the credit-focused teams typical at most BDCs. He believes this difference in approach and expertise creates a significant barrier to entry, noting that past attempts by credit-focused firms to enter the space have not been successful.

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