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    Erik Zwick • Lucid Capital Markets

    Erik Zwick's questions to Gladstone Investment Corp (GAIN) leadership

    Erik Zwick's questions to Gladstone Investment Corp (GAIN) leadership • Q1 2026

    Question

    Erik Zwick asked about the recent increase in the yield on interest-bearing investments, the competitive environment for deal structures like interest rate floors, and the specific drivers behind the material fair value markup for ImageWorks.

    Answer

    CFO Taylor Ritchie explained the yield increase was primarily due to a one-time $1.5 million collection of past-due interest; excluding this, the yield was stable. She noted recent deals include 13.5% floors, protecting against SOFR decreases. President David Dullum added that Gladstone competes more with private equity on enterprise value rather than on debt structure, allowing them to maintain terms. He also stated the ImageWorks markup was driven by both higher EBITDA and an increased valuation multiple.

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    Erik Zwick's questions to Gladstone Investment Corp (GAIN) leadership • Q4 2025

    Question

    Erik Zwick of Lucid Capital Markets asked for elaboration on the 'cautiously optimistic' outlook for buyout activity, the rationale behind the Educators Resource dividend recapitalization, and a repeat of the current spillover income figure.

    Answer

    President Dave Dullum stated the optimism stems from a strong deal funnel with reasonably valued companies, while caution is warranted due to economic uncertainty and tariff impacts. He explained the Educators Resource recap was a strategic 'reinvestment decision' to provide liquidity to the management team and deploy more income-generating capital into a business they like. CFO Taylor Ritchie confirmed the fiscal year-end spillover income was $55.3 million, or $1.50 per share, which covers the regular monthly and the declared supplemental distributions.

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    Erik Zwick's questions to Eagle Point Credit Company Inc (ECC) leadership

    Erik Zwick's questions to Eagle Point Credit Company Inc (ECC) leadership • Q2 2025

    Question

    Erik Zwick from Lucid Capital Markets asked for details on the newly formed second CLO collateral manager partnership, including its structure and potential financial benefits. He also questioned the sensitivity of loan repayments to interest rates and the outlook for the repayment rate.

    Answer

    CEO Thomas Majewski explained the partnership strategy involves providing initial CLO equity capital to a new manager in exchange for a perpetual top-line revenue share, creating long-term value without incurring operating risk. He noted the second partnership is well-timed due to tighter pricing spreads for new managers. He also clarified that loan repayments are driven by credit spread sentiment and M&A activity, not interest rates, as the underlying loans are floating rate.

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    Erik Zwick's questions to Eagle Point Credit Company Inc (ECC) leadership • Q1 2025

    Question

    Erik Zwick asked about the slower pace of net capital deployment in April, the expected cash flows for the remainder of Q2, and the historical reasons for higher loan spreads post-GFC.

    Answer

    CEO Thomas Majewski explained that deployment slows during volatility as trading volume dries up, but activity is now resuming. He noted Q2 cash flows are front-loaded, with only a small amount more expected, but new investments will begin paying in Q3. He attributed higher post-GFC loan spreads to a fundamental shift in the CLO funding model, where wider AAA liability spreads now necessitate higher underlying loan spreads to make the arbitrage work.

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    Erik Zwick's questions to Eagle Point Credit Company Inc (ECC) leadership • Q4 2024

    Question

    Erik Zwick of Lucid Capital Markets asked for clarification on the timing and drivers of recurring cash flow, the factors behind the difference between the effective and expected portfolio yields, and the reasons for the recent improvements in portfolio characteristics.

    Answer

    Executives Kenneth Onorio and Thomas Majewski explained that recurring cash flows fluctuate quarterly due to the timing of payments, with most arriving early in the quarter and new CLOs often having a long first payment period. They clarified the yield difference is due to using amortized cost versus fair value as the calculation base. Majewski attributed portfolio improvements to a conscious strategy of rotating from CLO debt into CLO equity, actively resetting CLOs to extend their reinvestment periods, and locking in lower financing costs.

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    Erik Zwick's questions to Runway Growth Finance Corp (RWAY) leadership

    Erik Zwick's questions to Runway Growth Finance Corp (RWAY) leadership • Q2 2025

    Question

    Erik Zwick of Lucid Capital Markets LLC asked for an update on the CADMA JV, inquired which new product offerings were gaining traction, and questioned why venture M&A is recovering more slowly than in the middle market.

    Answer

    CIO Greg Greifeld stated the CADMA JV is ramping and expects more activity by year-end. CFO & COO Thomas Raterman noted that new products like revolvers and structured second liens are well-received, leveraging BC Partners' expertise. He explained that venture M&A is slower because portfolio companies see renewed organic growth potential, reducing their immediate desire for an exit.

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    Erik Zwick's questions to Runway Growth Finance Corp (RWAY) leadership • Q1 2025

    Question

    Erik Zwick of Hovde Group inquired about the noted slowdown in healthcare lending, the current composition of the investment pipeline, and recent activity within the company's joint venture.

    Answer

    Chief Financial Officer Tom Raterman clarified that the healthcare lending data reflects a cautious, industry-wide trend from PitchBook. Chief Investment Officer Greg Greifeld added that while healthcare remains a core vertical, the team is monitoring regulatory risks and has seen more interesting technology deals recently. Greifeld also noted the pipeline reflects a market where deals are taking longer to close, and Raterman confirmed the joint venture's activity is similarly muted due to this cautious credit approach.

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    Erik Zwick's questions to Runway Growth Finance Corp (RWAY) leadership • Q4 2024

    Question

    Erik Zwick of Lucid Capital Markets asked about the strategy for the equity portfolio, which has grown to 10% of total assets, whether the Gynesonics position drove the quarter's unrealized gain, and for an update on spillover income.

    Answer

    CFO Tom Raterman explained that the equity portfolio's size increased due to restructurings like Gynesonics and Snagajob, where equity was taken to protect value, and affirmed they are always looking to realize this value. He confirmed Gynesonics was the single largest driver of the unrealized gain. He also stated that the goal is to maintain at least one quarter's worth of spillover income and grow it over time.

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    Erik Zwick's questions to Capital Southwest Corp (CSWC) leadership

    Erik Zwick's questions to Capital Southwest Corp (CSWC) leadership • Q1 2026

    Question

    Erik Zwick from Lucid Capital Markets LLC asked for a breakdown of new versus add-on originations in the current quarter and questioned if the company's confidence in its dividend sustainability accounts for potential NII headwinds from falling interest rates.

    Answer

    CEO Michael Sarner stated that current quarter originations are heavily weighted towards new platforms, at approximately 75%. He also expressed confidence in maintaining the regular dividend, citing operational efficiencies, a strong UTI balance of $1.00 per share, and expected equity gains as buffers against potential rate declines. CFO Chris Rehberger added that funding growth with cost-effective SBIC debentures will also help support NII.

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    Erik Zwick's questions to Capital Southwest Corp (CSWC) leadership • Q4 2025

    Question

    Erik Zwick of Lucid Capital Markets inquired about the size and mix of the current deal pipeline, the eligibility of new deals for SBIC funding, the specific nature of the portfolio's consumer products exposure, and any updates on the potential private credit fund.

    Answer

    CEO Michael Sarner estimated the June quarter pipeline at $75-$100 million in new platforms and around $50 million in add-on activity. Executive Chris Rehberger added that new deals are eligible for SBIC funding, which will initially focus on reinvesting in SBIC I before funding SBIC II. Sarner described the consumer portfolio as diversified and focused on the value end of the market. He also mentioned a slight pause on the private credit fund initiative due to market uncertainty, particularly from international investors, but reiterated long-term commitment to the strategy.

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    Erik Zwick's questions to Capital Southwest Corp (CSWC) leadership • Q3 2025

    Question

    Erik Zwick of Lucid Capital Markets asked for quantification of recent spread compression in the market, whether increased competition was affecting deal structures, and for an update on the status of non-accrual loans and their potential for resolution.

    Answer

    Executive Chris Rehberger and CEO Bowen Diehl noted that market spreads compressed by 50-100 basis points about 6-9 months prior but have been relatively stable since. Rehberger confirmed they have not seen significant pressure on deal structures, with loan-to-values remaining consistent. An executive explained that one non-accrual was restructured in the December quarter and another in the current quarter, with these loans being the primary driver of NAV depreciation. Diehl added that restructurings involve converting debt to equity to allow for NAV recovery as the companies improve.

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    Erik Zwick's questions to Carlyle Secured Lending Inc (CGBD) leadership

    Erik Zwick's questions to Carlyle Secured Lending Inc (CGBD) leadership • Q2 2025

    Question

    Erik Zwick of Lucid Capital Markets LLC inquired about the drivers of the current tight spread environment and the potential for a return to historical norms. He also asked about management's view on the U.S. economic outlook, whether recent unrealized losses were company-specific, and the company's perspective on share buybacks given the stock's discount to NAV.

    Answer

    CEO Justin Plouffe attributed tight spreads to a combination of lower-than-hoped deal activity and a normalization from the unusually wide spreads of 2022-2023, expressing optimism for the second half of the year. CFO Tom Hennigan clarified that unrealized losses were primarily idiosyncratic and related to a handful of specific credits, not a broader market issue. Hennigan also noted that while management is discussing buybacks more frequently, the primary focus remains on growth, with no imminent buyback plan.

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    Erik Zwick's questions to SLR Investment Corp (SLRC) leadership

    Erik Zwick's questions to SLR Investment Corp (SLRC) leadership • Q2 2025

    Question

    Erik Zwick of Lucid Capital Markets LLC asked about the yield on new originations versus repayments, the strength of the deal pipeline for the third quarter, the competitive landscape for asset-based lending (ABL), and any concerning economic trends observed in specific sectors.

    Answer

    Co-CEO Bruce Spohler stated that new investments yielded approximately 11.8% on average, compared to exits at just over 10%. He described the Q3 pipeline as steady but not as robust as the record Q2. Chairman and Co-CEO Michael Gross and Co-CEO Bruce Spohler both emphasized the high barriers to entry in their ABL niche, noting they have not seen new entrants. Bruce Spohler added that while some stress is visible in cyclical sectors within the ABL portfolio, it is not significant, and the cash flow portfolio remains focused on non-cyclical industries.

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    Erik Zwick's questions to SLR Investment Corp (SLRC) leadership • Q1 2025

    Question

    Erik Zwick inquired about the composition of the investment pipeline across lending verticals, the current state of spreads compared to recent months, the characteristics of attractive cash flow deals, and the sustainability of the quarterly contribution from Kingsbridge.

    Answer

    Co-CEO Bruce Spohler explained that the pipeline is 75-80% weighted towards asset-based lending (ABL), which he described as an all-in return business with stable returns around 11-13%. He noted that attractive cash flow deals are typically tuck-in acquisitions for seasoned platforms. Regarding Kingsbridge, Spohler confirmed its strong performance but mentioned that the Q1 income was elevated by some onetime gains from asset sales.

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    Erik Zwick's questions to SLR Investment Corp (SLRC) leadership • Q4 2024

    Question

    Erik Zwick of Hovde Group inquired about the pipeline for acquiring specialty finance portfolios and teams, and asked about the structural dynamics and risk-adjusted returns in the sponsor finance market.

    Answer

    Co-CEO Bruce Spohler confirmed an active pipeline for portfolio acquisitions, noting that SLR has passed on some opportunities due to credit quality concerns. He added that in sponsor finance, both spreads and terms have stabilized at levels that are currently less attractive than the opportunities available in their ABL and other specialty finance strategies.

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    Erik Zwick's questions to Oxford Lane Capital Corp (OXLC) leadership

    Erik Zwick's questions to Oxford Lane Capital Corp (OXLC) leadership • Q1 2026

    Question

    Erik Zwick of Lucid Capital Markets LLC inquired about the comparative value of primary versus secondary CLO opportunities, the evaluation process for new and existing CLO managers, the expected timing of distributions from new CLOs, the reasons for recent unrealized depreciation, the company's competitive advantage from its unconstrained investment strategy, and any forward-looking economic concerns.

    Answer

    Managing Director Joe Kupka stated that both primary and secondary markets offer value, with a focus on creating Tier one profiles in primary markets and targeting lower-tier managers or reset opportunities in secondary. He also clarified that new CLOs would begin distributing in the following quarters. CEO Jonathan Cohen emphasized that their unconstrained mandate to invest across the entire CLO structure—including warehouses, primary, and secondary markets with various manager tiers—is a significant competitive advantage. Regarding unrealized depreciation, Kupka attributed it to general mark-to-market movements rather than specific deal issues.

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    Erik Zwick's questions to Oxford Lane Capital Corp (OXLC) leadership • Q1 2026

    Question

    Erik Zwick of Lucid Capital Markets LLC inquired about Oxford Lane's investment strategy, including the relative appeal of primary versus secondary CLO opportunities, the evaluation process for new managers, and the company's competitive advantage. He also asked about the timeline for distributions from new CLOs and the drivers behind the quarter's unrealized depreciation.

    Answer

    Managing Director Joe Kupka and CEO Jonathan Cohen explained that they find value in both primary and secondary markets, focusing on top-tier managers for primary issuance and seeking value in lower-tier managers or reset opportunities in the secondary. They noted that unrealized depreciation was a function of mark-to-market adjustments rather than specific asset issues, emphasizing their focus on total return. Cohen highlighted their unconstrained investment mandate across the full spectrum of CLO profiles as a key competitive advantage.

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    Erik Zwick's questions to Oxford Lane Capital Corp (OXLC) leadership • Q2 2025

    Question

    Erik Zwick inquired about Oxford Lane's investment activity, specifically the split between primary and secondary market purchases and their relative attractiveness. He also asked about the potential impact of a lower interest rate environment on the portfolio, the reasons for an increase in out-of-court restructurings over formal defaults, and the factors contributing to the quarter's unrealized depreciation.

    Answer

    Managing Director Joseph Kupka detailed the investment activity, noting it was primarily driven by new primary CLO investments ($270M) and warehouse investments ($180M), with about $90M in the secondary market. Executive Jonathan Cohen explained that while a lower rate environment won't meaningfully change their strategy, it should reduce U.S. syndicated loan default risk. Regarding restructurings, Mr. Kupka suggested companies are trying to delay payment defaults in anticipation of future rate cuts. Both executives attributed the unrealized depreciation to a complex interplay of GAAP accounting measures, including fair value changes and cash flows.

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    Erik Zwick's questions to Oxford Lane Capital Corp (OXLC) leadership • Q2 2025

    Question

    Erik Zwick asked for commentary on Oxford Lane's investment activity, including the split between primary and secondary markets, the potential impact of a lower interest rate environment, the reasons for an increase in out-of-court restructurings, and the factors behind the quarter's unrealized depreciation.

    Answer

    Managing Director Joseph Kupka detailed that new investments were primarily driven by primary market activity and warehouse conversions, with both primary and secondary markets remaining attractive. CEO Jonathan Cohen stated that lower interest rates would likely reduce loan default risks without significantly changing portfolio management strategy. Kupka attributed the rise in out-of-court restructurings to companies anticipating rate cuts and seeking to delay payment defaults. Regarding unrealized depreciation, Kupka explained it was a complex GAAP accounting measure reflecting fair value changes, cash flows, and cost basis adjustments.

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    Erik Zwick's questions to Cion Investment Corp (CION) leadership

    Erik Zwick's questions to Cion Investment Corp (CION) leadership • Q1 2025

    Question

    Erik Zwick of Hovde Group inquired about the investment in Anthem Sports & Entertainment, including its deal structure, business model transition, and recovery timeline. He also asked about broader trends in the healthcare and pharma portfolio, specifically the increased investment in Future Pak amidst depreciation in other sector holdings, and questioned the outlook for potential realized gains from the equity portfolio.

    Answer

    Gregg Bresner, President and Chief Investment Officer, explained that Anthem Sports is a club deal with a roughly 24-month transition period to an advertising-based revenue model. Regarding the portfolio, Bresner clarified that the increased Future Pak investment was for a large acquisition and that depreciation in other healthcare assets was due to mark-to-market comparisons, not structural industry issues. He stated that potential future realized gains could not be disclosed due to the private nature of the portfolio companies, though some are expected over time.

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    Erik Zwick's questions to Saratoga Investment Corp (SAR) leadership

    Erik Zwick's questions to Saratoga Investment Corp (SAR) leadership • Q4 2025

    Question

    Erik Zwick inquired about the composition of the strengthening deal pipeline, including the mix of new versus add-on opportunities and industry concentrations. He also asked about the ideal portfolio size, potential exposure to federal agency cuts, and the current level of spillover income.

    Answer

    Chief Investment Officer Michael Grisius stated that it's challenging to predict the pipeline mix due to market uncertainty but noted that business development efforts are showing positive results. He explained they don't target an 'ideal' portfolio size but see significant growth capacity and have no material exposure to government contract cuts. CEO Christian Oberbeck added that the lower-middle market provides a steady stream of opportunities from founder transitions. CFO Henri Steenkamp confirmed the spillover income stands at just over $3.00 per share.

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    Erik Zwick's questions to Saratoga Investment Corp (SAR) leadership • Q3 2025

    Question

    Erik Zwick inquired about the outlook for new investment growth versus the pace of repayments, the mechanics of calling SBIC debentures, and the strategy for realizing gains on equity investments.

    Answer

    CEO Christian Oberbeck, CIO Michael Grisius, and Executive Henri Steenkamp explained that repayments can be lumpy, citing the large Invita exit, but expressed long-term confidence in outpacing repayments with new originations from their strong pipeline. Steenkamp detailed the mechanics of calling SBIC debentures, noting the decision depends on reinvestment periods and interest rate arbitrage. Grisius clarified that equity gains are typically realized upon a company's sale, as Saratoga is a minority investor, and this strategy is a cornerstone for augmenting debt returns.

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    Erik Zwick's questions to Saratoga Investment Corp (SAR) leadership • Q2 2025

    Question

    Erik Zwick of Hovde Group inquired about the specific shortcomings of potential new investments that were passed on, the quantifiable impact of interest rate cuts on Net Investment Income (NII), the company's ability to manage through a recession if debt refinancing is difficult, and whether the recent increase in Payment-In-Kind (PIK) interest was recurring.

    Answer

    Chief Investment Officer Michael Grisius explained that investment rejections were due to unique, credit-specific issues like customer concentration, not a single common factor. Executive Henri Steenkamp quantified the NII impact of rate cuts at approximately $0.03 per share for every 25 basis point reduction, noting this is a static view that excludes mitigating actions like refinancing callable debt. Steenkamp also confirmed the company's ability to manage rate decreases due to the gradual reset of assets and significant dividend overearning. He clarified that the quarterly increase in PIK interest was non-recurring and primarily related to the resolved Knowland investment.

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    Erik Zwick's questions to Saratoga Investment Corp (SAR) leadership • Q1 2025

    Question

    Erik Zwick of Lucid Capital Markets asked for color on why no new investments were made, the expected timeline for value recovery from the Zollege and Pepper Palace restructurings, and how the new management teams for those companies were sourced.

    Answer

    Chief Investment Officer Michael Grisius attributed the lack of new deals to low market volume, Saratoga's rigorous underwriting standards, and significant pricing compression. Regarding the restructurings, he stated there are no fixed timelines for recovery, but they are constantly evaluating opportunities to maximize value. He detailed that the new management for Zollege is its original founder, while for Pepper Palace, it is an experienced turnaround specialist who is also investing personal capital into the business.

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