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Art Penn, Founder and Managing Partner, reported that JF Intermediate is performing well, with EBITDA well north of $50 million, and recently completed a successful debt refinancing. He clarified that PennantPark's debt position was refinanced out and that they are partnered with an independent sponsor on the remaining equity position.

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Art Penn, Founder and Managing Partner, reported that JF Intermediate is performing well, with EBITDA well north of $50 million, and recently completed a debt refinancing where PNNT's debt position was paid off. He confirmed that PNNT retains its equity position and is partnered with an independent sponsor.

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CEO Arthur Penn commented that while he couldn't discuss M&A, the By Light markup reflects strong company performance. CFO Richard Allorto and CEO Arthur Penn clarified that PNNT participated in the new Marketplace Events loan post-sale because it was an attractive opportunity in a company they knew well, and the loan is intended to ultimately reside in the joint venture.

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CEO Arthur Penn addressed the JV, stating that while 19% returns are hard to guarantee, upper-teens returns should be achievable, with target leverage around 2.0x-2.25x. He explained the amendment clarifies partner exit mechanics. CFO Richard Allorto clarified that partial non-accruals occur when enterprise value covers only a portion of a loan. Finally, Mr. Penn noted that a pickup in M&A should provide opportunities for equity realizations, particularly in positions with high fair value marks relative to cost.

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Art Penn, Founder and Managing Partner, confirmed the $32 million in ATM issuance occurred at an average price of $11.31 per share before "Liberation Day" as part of a strategy to build a "war chest" for anticipated deal flow. He acknowledged the deal flow was subsequently delayed but stated the company is now well-capitalized with its under-levered balance sheet and two JVs. He indicated that PFLT is now focused on deploying this capital, suggesting further ATM issuance is not an immediate priority.

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Arthur Penn, Chairman and CEO, explained that gains like the one from Marketplace Events increase spillover income, which is used to cushion the regular dividend rather than fund a special dividend, reinforcing their goal of a steady, stable payout. Regarding credit, he described current amendment activity as normal for a diversified portfolio of 159 companies and reported no abnormal credit migrations, highlighting the portfolio's conservative structure as a key risk mitigant.

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Chairman and CEO Arthur Penn explained that the current vintage is attractive due to strong credit quality in the core middle market, including average debt-to-EBITDA of 3.4x and loan-to-value of 38%. He noted that while spreads have tightened, covenant protections remain meaningful. Penn clarified the non-accrual decrease was due to the restructuring of one company, Dynata. CFO Richard Allorto added that the impact of ATM issuance on NAV was immaterial as shares were issued at or above NAV.

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CEO & Investment Committee Chair Edward Ross explained that Quest Software, a cybersecurity provider, underwent an LME transaction that improved the risk profile of Fidus's second lien security without any principal reduction, leading to the write-up. On the topic of sponsor priorities, Ross stated that while returning capital is a market theme, the significant dividend income Fidus received in Q1 and Q2 was episodic, driven by specific company refinancings and distributions, and should not be considered a recurring event.

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Executive Shelby Sherard explained that the new SBIC license provides flexibility and buys time, with plans to begin drawing on it in the first half of the next year. Executive Edward Ross described portfolio company performance as generally healthy but flattish, with some credit migration due to the high-interest-rate environment, though the overall portfolio remains sound. Regarding exits, Ross clarified that the company is not planning a large-scale sale of its equity portfolio but is well-positioned for episodic realizations as individual companies mature.

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Chairman, CEO & Co-CIO Phil Tseng explained that the new Private Financing Solutions (PFS) platform centralizes origination, enhancing deal flow. He noted that while the core investment process remains, it is now supplemented by HPS professionals, including on the investment committee and in restructuring efforts. Tseng assured that TCPC is a key strategic priority as the only publicly traded BDC on the PFS platform. He clarified the AutoAlert markdown was driven by lower market comps for similar companies, not a decline in its operational performance, which has improved since restructuring.

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Chairman, Co-CIO & CEO Philip Tseng explained the Job and Talent markup resulted from both the company's strong performance and the enhanced economics from a new preferred debt investment TCPC provided. CFO Erik Cuellar confirmed that TCPC is in the process of obtaining a second SBIC license, the maximum allowed, and stated that the process and timing have not been materially affected by recent administrative changes.

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President Philip Tseng reported that Amazon aggregators comprise 5.9% of the portfolio's fair value and expressed confidence in a path to successful outcomes through consolidation and improved capital structures. CFO Erik Cuellar explained the higher cost of debt was due to refinancing notes at higher rates and temporarily carrying extra cash, which should normalize. He also confirmed TCPC has $10 million in remaining SBA capacity and the ability to apply for a second license.

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CEO Craig Packer stated that he believes the vast majority of spread compression has already worked through the portfolio and expects spreads to be stable. President Logan Nicholson characterized the junior capital opportunity, like the Trucordia deal, as closer to a 'one-off' due to tight pricing in public markets. He emphasized that deal flow between the direct lending and BSL markets is balanced, with many names also moving from BSL to direct.

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CEO Craig Packer stated unequivocally that the ATM program will only be used to issue shares on a net basis above book value, ensuring it is always accretive to shareholders. President Logan Nicholson clarified that the large deals were new money transactions, including public-to-private LBOs like Catalent and Squarespace, not refinancings. Nicholson also reported that amendment activity was flat quarter-over-quarter with no material uptick in significant amendments.

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President & CIO Daniel Pietrzak explained their focus on the $50-$150M EBITDA range is strategic and that the JV's mark-to-market write-down was correlated with the same assets that impacted the parent BDC. He reiterated that the 2026 dividend will be NII-led, with concepts like a base and supplemental payout being considered in light of the current rate and spread environment.

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CFO Michael Testa noted that RIA deployment is ramping up, representing about 12% of new fundings. CEO Kyle Brown added that the RIA is a critical tool for managing leverage and driving accretive EPS growth, with the ultimate goal being accretive growth for investors. COO Gerry Harder addressed refinancing, explaining that while some rate-driven refinancing may occur, most prepayments happen when companies 'graduate' to lower-cost bank debt, an outcome Trinity views positively.

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CEO Kyle Brown attributed slight yield compression to rate changes and a strategic push into more mature, lower-risk sponsor finance deals, which improves portfolio diversification. Chief Credit Officer Ron Kundich confirmed that 78% of the portfolio is first lien. Kyle Brown also stated there has been no unusual uptick in revolver draws or liquidity requests from portfolio companies.

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CFO Michael Testa quantified the Q1 NAV impact from the convertible debt retirement at an estimated $0.27 per share. COO Gerry Harder and CEO Kyle Brown explained that their underwriting requires fintechs to have multiple bank partners and noted their ABL group often replaces banks, providing senior financing against receivables. Chief Credit Officer Ron Kundich clarified the Space Perspective non-accrual is a company-specific issue related to a small venture loan, not an industry-wide trend.

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CFO Michael Testa reported ~$41M was syndicated to off-balance sheet vehicles in Q3 and they are working on adding leverage. COO Gerry Harder attributed the improved credit rating to a mix of strong new originations and upgrades to existing portfolio companies. Multiple executives explained the European expansion uses the same underwriting rigor and will be supported by dedicated capital raised through the RIA.

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Amit Joshi, Treasurer and CFO, explained that the CLO refinancing was driven by accessing the market at a more attractive rate and the fact that the 2019 CLO was nearing the end of its investment period. CEO Michael Ewald attributed the robust origination to the resilience of the core middle market and a successful expansion of sponsor outreach. President Michael Boyle confirmed that these new first-lien loans are eligible to be moved into the company's joint ventures.

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Amit Joshi, Treasurer and SVP - Finance & CFO, clarified that the CLO refinancing was opportunistic, driven by even more attractive market pricing and the end of the 2019 CLO's investment period. CEO Michael Ewald attributed the high origination volume to the resilience of the core middle market and a successful expansion of sponsor outreach, resulting in a roughly 50/50 split between new and add-on deals. President Michael Boyle confirmed that the new first-lien loans are suitable for and could be moved into the joint ventures in the future.

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Amit Joshi, Treasurer and SVP - Finance & CFO, explained the CLO was refinanced because its investment period was ending and the company secured even more attractive pricing. CEO Michael Ewald attributed strong originations to sustained activity in the core middle market and a successful expansion of sponsor outreach. President Michael Boyle confirmed that the new first lien loans are eligible to be moved into the company's joint ventures in the future.

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CFO Amit Joshi stated the securitization was refinanced due to more attractive market pricing and the fact that the 2019 CLO was exiting its investment period. CEO Michael Ewald attributed robust originations to sustained activity in the core middle market and expanded sponsor outreach, noting a near 50/50 split between new and existing company deals. President Michael Boyle confirmed that new first-lien loans are eligible to be transferred to the JVs in the future.

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CFO Amit Joshi explained that the securitization was refinanced because they secured more attractive pricing on the new AAA tranche and the investment period for the 2019 CLO was ending. CEO Michael Ewald attributed strong originations to the resilience of the core middle market and a successful expansion of sponsor outreach, noting a roughly 50/50 split between new and existing company deals. President Michael Boyle confirmed that the new first-lien loans are eligible to be moved into the joint ventures in the future.

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President Michael Boyle acknowledged the back-weighted fundings but highlighted the stable 11.5% portfolio yield and new origination spreads of 540 basis points. Boyle also explained that two non-accrual investments, Atlas (Forming Machine) and Ambridge, were exited during the quarter through restructuring efforts, with recoveries north of $0.50 on the dollar, which was in line with prior marks. CEO Michael Ewald added that the new origination spread was down only about 10 basis points from the prior quarter.

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President Michael Boyle attributed the yield decline primarily to lower base rates and reduced dividend income from the aviation portfolio and joint ventures, not significant spread degradation. CEO Michael Ewald noted that spread compression has largely played out, with current spreads bifurcating by credit quality. He also explained that the U.S. private credit market offers better structural terms than Europe currently. Boyle added that the uptick in lower-rated investments was idiosyncratic and the realized gain came from the successful exit of a legacy investment, BlackBrush.

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CFO Ian Simmonds attributed the higher "other income" to miscellaneous exit fees and quantified prepayment fees at about 6 cents per share. CEO Joshua Easterly noted total exit-related fees were 11-13 cents per share and explained their accounting policy defers all upfront fees into OID, boosting NII upon repayment. Vice President Robert Stanley described the Lithium earn-out as an equity participation with an expected three-year realization timeline based on future cash flows.

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CFO Ian Simmonds and CEO Joshua Easterly explained that "other income" and prepayment fees, which are close cousins, totaled 11-13 cents per share, driven by miscellaneous exit fees. Easterly detailed their accounting policy of deferring all upfront fees into OID, which boosts NII upon repayment. President Robert Stanley described the Lithium earn-out as an equity participation in cash flows with an expected three-year duration to realize its value.

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President Bo Stanley stated they are working to sell the assets of IRG Sports and Entertainment to resolve the loan. CEO Joshua Easterly and CFO Ian Simmonds explained the lower cost of debt was driven by a favorable funding mix, including rolling off a matured unsecured note onto the revolver and issuing a new lower-spread bond. Regarding SRTs, Ian Simmonds suggested they are done for capital relief for banks, which could expand bank lending capacity on the margin but is unlikely to reduce pricing.

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CEO Joshua Easterly stated the First Citizens partnership is for equipment leasing and won't feed into TSLX's portfolio. He described non-sponsored deals as a mix of long-term relationships and transitory opportunities. On capital, he was firm that they will not raise permanent equity if they cannot deploy it at accretive ROEs, prioritizing shareholder returns over growth.

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CEO Joshua Easterly explained that the First Citizens equipment leasing partnership is not expected to feed into TSLX's corporate lending portfolio, but other platform opportunities could. He described non-sponsor deals as a mix of long-term relationships and more transitory, opportunistic financings. Critically, he affirmed they would not raise new equity unless they were confident they could deploy it at accretive, long-term ROEs, underscoring their disciplined, investor-first approach.

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President Henry Chung clarified that the valuation mark for Nuvera is in line with the expected restructuring outcome. CEO Jason Breaux added that a restructuring has not yet occurred on their books and offered to discuss specifics offline. Regarding workout strategies, Jason Breaux explained that the primary goal is capital preservation, utilizing various options from sponsor partnerships to sales or taking ownership. Henry Chung added that they take a longer-term view to maximize value rather than pursuing quick secondary sales. Finally, Henry Chung stated that 92% of the portfolio's fair value consists of Crescent-originated assets.

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CEO Jason Breaux stated one of the three new non-accruals was Crescent-originated. President Henry Chung confirmed Crescent leads the majority of watchlist deals and that about 20% of the watchlist by fair value are acquired assets. CFO Gerhard Lombard identified the restructuring of portfolio company CECO as the primary driver of the realized loss. Regarding spreads, Chung and Breaux explained that while the market sees deals below 500 bps, particularly for larger borrowers, they maintain pricing discipline. Chung also affirmed they will stick to their strategy of avoiding capital-intensive businesses despite tariff dynamics.

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CEO Jason Breaux explained that while CCAP is open to M&A, it prioritizes measured growth and benefits from the scale of the broader Crescent platform. CFO Gerhard Lombard attributed the unrealized losses primarily to four names, including the Logan JV and two nonaccrual assets. Lombard also clarified that the supplemental dividend was capped by a formula limiting the combined impact of the supplemental dividend and unrealized NAV changes over a two-quarter period.

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CEO Jason Breaux attributed the low PIK income to a disciplined focus on cash-yielding assets and avoidance of PIK-heavy structures like ARR loans. CFO Gerhard Lombard noted strong portfolio company fundamentals have also reduced the need for PIK amendments. President Henry Chung detailed the quarter's investment mix, and CEO Jason Breaux stated the Logan JV's performance is in line with expectations, with its CLO's reinvestment period ending in April 2025.

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CEO Tanner Powell stated that direct tariff exposure is in the 'single digits' and that the firm is more focused on second-order economic effects. Executive Chairman Howard Widra noted that amendment activity was flat quarter-over-quarter. Regarding buybacks, Mr. Widra explained that they are always weighed against other capital uses and become a higher hurdle at target leverage. He also mentioned that practical constraints like trading windows and volume limits impact the execution of repurchases.

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President Ted McNulty pointed to stable revolver utilization and an improved interest coverage ratio as signs of stability. CFO Gregory Hunt noted that over 60% of the net depreciation was from positions already on non-accrual. He also stated that CLOs are expected to be an important and favorable source of capital going forward, given their attractive pricing relative to unsecured debt.

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Executive Chairman Howard Widra stated that the company's policy remains to buy back stock when it is accretive compared to other capital uses, referencing a previous breakeven guideline of around 0.8x price-to-NAV. He suggested the stock's recent underperformance could be temporary as legacy fund shareholders ineligible to hold the stock exit their positions. He also noted that the company's trading window was closed for much of the quarter. Widra emphasized that the buyback decision is based on a long-term view of spreads and returns, not just daily market fluctuations.

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CFO Teddy Desloge detailed that the NAV decline was driven primarily by the reversal of unrealized gains on repayments and a mark-down on a single company, Medallia, due to competitive pressures. Co-CEO Brad Marshall explained that the value BXSL adds through the Blackstone network provides more opportunities for selective equity co-investments, which serve as a strategic tool to offset potential credit losses but will remain a small part of the portfolio.

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Co-CEO Brad Marshall explained that while the platform sees deals of all sizes, they have a bias towards larger companies, which they view as better businesses. He noted that while they were more active in the middle market this year, they might skew further upmarket in 2025 if the expected deal volume materializes with appropriate structures, as they passed on some larger deals this year due to leverage or documentation concerns.

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CEO Scott Bluestein reiterated that Hercules' debt is designed to supplement, not replace, equity capital. He emphasized that a key underwriting focus is ensuring a company's ability to continue raising equity, even if it's not simultaneous with their loan. Regarding company stage, he stated that it is still too early to consider shifting back into earlier-stage investments, a segment they have intentionally avoided in recent years, preferring to wait for more market stability before re-evaluating that part of the market.

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CEO & CIO Scott Bluestein reiterated that Hercules' debt supplements, not replaces, equity and that they focus on a company's ability to continue raising capital. He stated that while a medium-to-long-term opportunity may exist in earlier-stage companies, it is currently too early to re-enter that market segment, and they are waiting for more stability, validating their recent focus on later-stage deals.

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CEO Scott Bluestein explained his comment referred to a broad market trend where new investors are pushing back on high valuations from 2021-2022, putting pressure on existing investor syndicates to fund those companies. He noted unfunded commitments are trending down as companies let older, higher-rate commitments expire. He also confirmed the Palantir exit was the largest driver of realized equity gains in Q4, contributing approximately $15 million.

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CEO Scott Bluestein attributed the slight PIK increase to the competitive environment for later-stage deals, some borrowers opting for PIK, and selective use in certain transactions. Regarding yields, Bluestein explained the main driver of core yield compression is the mix shift from older, higher-yielding loans being prepaid and replaced by new, slightly lower-yielding loans. He expects minor continued degradation but no material decrease.

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CFO Christopher McKown attributed the yield decline to reference rate resets, the impact of new non-accruals (approx. 30 bps), and some spread compression, confirming the current yield is a 'decent run rate.' He clarified the JV's ROE is based on NII and subordinated note interest, and stated that an 11-12% ROE is achievable depending on the opportunity set.

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President Mathew Pendo clarified that the $1.2 million incentive fee waiver is discretionary and decided quarter-to-quarter, unlike the permanent base management fee reduction. CEO Armen Panossian addressed the credit questions, noting a recent positive development for nThrive, a longer execution timeline for Thrasio, and that the Pluralsight revolver is intended for business support, not paying coupons. Panossian also stated that while he expects strong covenants to hold in the middle market, the large-cap space has seen erosion, though increased deal flow could help restore some lender protections.

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President Gerald Michaud and CEO Robert Pomeroy explained that the overall portfolio yield is higher than the onboarding yield due to fees from prepayments, and the strategy has shifted to focus more on contractual yield rather than warrant upside. COO/CIO Daniel Devorsetz clarified the Soli Organics notice is part of an ongoing process and that consumer exposure is minimal. Pomeroy noted the main tariff impact was market uncertainty stalling M&A.

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COO & CIO Daniel Devorsetz attributed markdowns primarily to debt investments in companies facing fundraising challenges. President Jerry Michaud clarified Evelo Biosciences is now a recovery asset, while Devorsetz noted Swift Health Systems is still in an extended fundraise. Michaud discussed the life sciences outlook, balancing regulatory uncertainty with positive M&A and development trends. CFO Daniel Trolio and Devorsetz confirmed that onboarding yields remain in a normal range and end-of-term fees are stable, with interest rate floors mitigating some impact from falling rates.

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CFO Daniel Trolio confirmed that forecasts do account for earning back the incentive fee, projecting a gradual return to a full accrual by the end of 2025. He noted there is no specific target for spillover income. COO & CIO Daniel Devorsetz added that while index rate cuts have an effect, they have not seen significant spread compression on new deals and expect portfolio yields to remain a strength.

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Robert Pomeroy, Chairman and CEO, identified the lack of exit markets (M&A, IPOs) as the main challenge, which impacts VC funding willingness. He noted earlier-stage companies face more difficulty than later-stage ones. He also stated that Horizon is the sole lender in approximately 75% of its deals. Chief Financial Officer Daniel Trolio addressed earnings, stating that the run-rate is dependent on prepayment activity, which can fluctuate quarterly.

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Executive Edward Goldthorpe stated there have been few negative credit surprises recently, with most challenged assets being legacy positions from prior acquisitions. CIO Patrick Schafer estimated the BDC portfolio is weighted towards sponsored deals (approx. 60-40) for more consistent deal flow but that the firm is 'very actively engaged' in nearly all its investments, including workouts, as it holds very few broadly syndicated positions where its influence would be limited.

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Chief Financial Officer Brandon Satoren explained that leading up to the refinancing of its 2018-2 secured notes, the company deliberately held back on new investments and maintained higher cash levels and incremental capacity on its JPMorgan Chase & Co. credit facility. This was a prudent measure to ensure a smooth refinancing process, which temporarily suppressed investment activity and related income for the quarter.

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Chief Financial Officer Brandon Satoren explained that ahead of refinancing its secured notes, the company deliberately held back on new investments and maintained additional cash and borrowing capacity on its JPMorgan Chase & Co. credit facility. This was done to ensure a smooth refinancing process, which temporarily suppressed investment activity and related income for the quarter.

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Executive Sajal Srivastava explained the shift is driven by improving venture capital market conditions and the availability of high-quality companies, a significant change from the past seven quarters. He clarified that TPVG can fund substantial growth with cash on hand before leverage materially increases. Regarding FinTech, Srivastava noted that their portfolio companies are mature, venture growth-stage businesses that typically have multiple banking partners and credit facilities, mitigating dependency risk on any single institution.

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Executive Sajal Srivastava explained that TPVG's cautious approach mirrors that of its venture capital partners, focusing on quality companies that have recently raised capital rather than deploying capital for growth's sake. He noted that while the broader market is still recalibrating valuations, TPVG's portfolio is seeing a mix of flat, down, and up rounds, with signs of improving valuations and round sizes.

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Executive Robert Ladd estimated that up to 10% of the portfolio could be impacted by tariffs, depending on their final form, but stated it does not appear to be a material risk at this point. He also confirmed there was an additional markup of a 'few million dollars' on an equity position that was partially realized, noting its value continues to increase.

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Executive Robert Ladd explained that the lighter NII was not due to unusual factors but rather a lower SOFR rate, a minor increase in non-accruals, and lighter-than-expected investment activity. He noted that the declining SOFR curve was the primary driver impacting the earnings run rate. Ladd also clarified that the quarter's unrealized portfolio appreciation was predominantly driven by a single equity co-investment with a potential upcoming transaction.

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Co-CEO Douglas Goodwillie responded that leverage has remained consistent, with new investments averaging around 4x leverage. He explained that the primary change has been in pricing, not structure. Spreads on new deals have seen modest compression, moving from an average of 575 basis points in 2024 to around 550 basis points in Q1 2025, with closing fees also slightly lower. Mr. Goodwillie characterized this price movement as relatively muted compared to the upper middle and broadly syndicated markets.

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Executive Frank Karl provided details on the BSL portfolio, stating it consists of 22 names, has a duration north of three years, and that all but one investment were secondary market purchases. Co-CEO Douglas Goodwillie addressed credit trends, noting the portfolio is performing well with only a handful of names on the watch list and normal course amendment activity. He mentioned that the primary negative trend observed has been challenges to the consumer, which has impacted one or two portfolio companies.

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CEO Jeffrey Levin responded that repayment activity can be lumpy and advised looking at trends over a full year rather than a single quarter, stating there was no specific driver for the low Q4 number. On credit quality, Levin emphasized the portfolio's health, citing best-in-class non-accrual and PIK income statistics. He confirmed there were no significant negative trends in credit amendments and that the list of underperforming names remains 'quite narrow'.

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Chairman & Co-CEO Michael Gross stated that the entire platform participates in cash flow lending, maintaining relevance with sponsors in targeted industries like healthcare. He attributed the higher dividend income to the ABL and leasing portfolios, particularly the Webster acquisition, and considers it a sustainable run rate. He also clarified that new ABL hires are on the origination side and are employed at the specialty finance company level.

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Then-CEO Robert DeVeer clarified the Ivy Hill dividend included a one-time $10 million special dividend on top of a higher recurring base dividend reflecting the company's growth. He stated that exposure to government contracts is not significant. On lender control, he said they haven't seen unusual attempts to limit voting rights in performing situations and that ARCC maintains strict documentation standards.

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CEO Robert Kipp DeVeer acknowledged some pressure on fees alongside spreads but noted it was too early to call a definitive trend. An unnamed executive confirmed the specific non-accrual investment was fully exited. DeVeer also stated that inflation has moderated significantly over the past year to more normalized levels.

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Executive David B. Golub clarified that while deployment is platform-wide, GBDC was under-levered post-merger and aimed to increase assets. He emphasized focusing on the net funds growth of $368 million, which is a more normal figure, and noted that originations were heavily skewed towards repeat sponsors and borrowers, leveraging competitive advantages. Chief Financial Officer Christopher Ericson specified that the non-cash interest expense related to the swap was approximately $0.02 per share.

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David B. Golub, Executive, explained that Golub Capital has a long-standing tradition of periodically and voluntarily waiving fees. He stated that given the significant 'onetime noise' in the quarter's results, management felt it was appropriate to waive the incentive fee to support shareholder returns and maintain a positive investor experience, consistent with their long-term perspective as a manager.

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Executive Thomas Majewski expressed optimism for the upcoming year, anticipating a 'risk on' market that will create more opportunities for cost-saving resets and refinancings. He stated that NAV upside can be driven by discounted loans paying off at par and, most significantly, by crystallizing value through proactive management actions like resets, which improve the portfolio's value even if the market partially anticipates these actions.

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Executive Kenneth Kencel responded that the portfolio remains in very good shape with no new non-accruals. He characterized the moves on the watch list as a reflection of the company's proactive portfolio management approach, stating there were no broad trends or themes. He confirmed the issues with the downgraded names were company-specific and that the situations are being worked on to maximize shareholder value.

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John Kline, CEO, clarified that the primary strategy for reducing PIK exposure is to exit certain large, 100% PIK positions from prior vintages. He added that the company remains comfortable offering minor PIK options on new unitranche loans that are predominantly cash-pay, as the main goal is to reduce the concentration from older, fully PIK assets.

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