Dividend Outlook
Q: Is the $0.40 dividend sustainable?
A: Management is very comfortable with the $0.40 base dividend, supported by consistent excess spillover income and 17 consecutive periods of supplemental distributions, affirming their confidence in maintaining shareholder returns.

Deal Activity Outlook
Q: Will deal activity surge in 2025?
A: While remaining cautious, management noted that pending commitments of over $630 million indicate a potential pickup if market conditions improve, as they maintain a disciplined approach in a suboptimal environment.

Election Impact
Q: How will the election influence market moves?
A: They stressed that clarity on the election outcome is crucial—any disputed result could cause a temporary pause, but a clear winner would allow them to adapt swiftly, influencing capital deployment decisions.

Competitive Landscape
Q: What competition challenges do you face?
A: Management observes sporadic competitive pressures on deals, yet their unmatched 20-year track record and specialized teams in key sectors give them a significant advantage.

Tax Impact
Q: How do unrealized gains taxes affect you?
A: They expect any taxes on unrealized gains to impact them similarly to other investment firms, with their pass-through structure mitigating any disproportionate negative effects.

Regulatory Change
Q: Which regulatory change is most desired?
A: They would welcome adjustments to ineligible asset restrictions, viewing such a change as beneficial without fundamentally disrupting their business model.

Interest Rate Flexibility
Q: How long can companies delay borrowing decisions?
A: Management explained that many quality companies patiently wait for Fed rate cuts to secure more attractive financing terms, indicating a strategic timing approach amid rate uncertainty.

Sector Impact Post-Election
Q: Will election outcomes affect sectors differently?
A: They acknowledged that varying sectors might respond differently post-election but refrained from specifying which ones, emphasizing careful evaluation as events unfold.

AI Focus
Q: What is your approach to AI opportunities?
A: The team is selectively engaging in opportunities with AI elements, avoiding pure-play bets and taking a cautious stance similar to their historical view on nascent sectors like the battery market.

Deal Quality & Competition
Q: Why was Q3 deal volume lower?
A: The lower Q3 volume was due to a predominance of subscale, low-liquidity deals; management chose to wait out less quality opportunities and focus on portfolio deals with proven credit quality.

RIA Dividend Guidance Increase
Q: Why raise the RIA dividend guidance?
A: Strong portfolio performance and maturity justified a slight upward revision in RIA dividend guidance, reflecting improved results and confidence in sustained performance.

Performance Fee Upside
Q: Is there notable upside from performance fees?
A: While structural opportunities exist from performance fee components, management does not rely on them as a primary earnings driver, viewing them instead as a modest supplemental benefit.