Bo Stanley
About Bo Stanley
Robert (“Bo”) Stanley is President of Sixth Street Specialty Lending, Inc. (TSLX), a Partner at Sixth Street, and Co‑Head of Sixth Street Growth, focusing on software, payment systems, data infrastructure, and business services origination . He has served as President of TSLX since 2016 and was born in 1974 (tenure and birth year as disclosed) . Prior to Sixth Street, he held underwriting and origination roles at Wells Fargo Capital Finance from 2000–2011, providing specialized senior secured financing experience that informs his current execution and risk discipline . Company-level performance and TSR metrics are not attributed to individual executives in TSLX’s proxy; however, TSLX reported total 2024 dividends of $2.08/share and traded at a ~30.4% premium to year-end 2024 NAV as of March 31, 2025, reflecting investor appetite for the strategy .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Wells Fargo Capital Finance | Underwriting and origination roles | 2000–2011 | Built senior secured financing and credit underwriting expertise applicable to sponsor finance and growth lending |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sixth Street | Partner; Co‑Head, Sixth Street Growth | Not disclosed; current | Co-leads growth platform; informs sourcing, structure, and portfolio construction in software and services |
| Sixth Street/TSLX Investment Review Committee | Committee Member | Current | Member of the Adviser’s Investment Review Committee, helping determine investment decisions and sizing across the platform |
Board Service (TSLX)
- TSLX directorship: Not disclosed for Bo Stanley in the latest proxy; he is listed as President (executive officer), not a director .
- Committee roles: None disclosed (not a board member) .
- Dual-role governance context: TSLX’s Chairman is also the CEO (Joshua Easterly), and the Board does not have a designated Lead Independent Director; independence safeguards include executive sessions of Independent Directors and fully independent Audit, Compensation, and Nominating/Governance Committees .
Implication: As an executive officer (not a director), Bo’s independence is not a board issue; however, the CEO/Chair combination increases the importance of committee oversight and executive sessions for checks and balances .
Fixed Compensation
| Item | Disclosure |
|---|---|
| Direct TSLX cash compensation (salary/bonus) | None; TSLX has no employees, and executive officers do not receive direct compensation from TSLX |
| Reimbursement | TSLX reimburses the Adviser for a portion of compensation/overhead for operational and administrative personnel (e.g., CFO, CCO), not performance-based pay to Bo |
| Equity compensation plans at TSLX | None; TSLX does not have equity compensation plans |
Notes: Because TSLX is externally managed, executive compensation is paid by the Adviser (Sixth Street Specialty Lending Advisers, LLC) and not itemized by individual executive in the proxy .
Performance Compensation
TSLX’s externally managed structure means incentive alignment flows through the Adviser’s fee framework and partner economics (relevant to Bo as a Partner at Sixth Street).
| Component | Key Terms | Incentive Levers |
|---|---|---|
| Management Fee | 1.5% annually of average gross assets (quarterly in arrears); Adviser intends to waive fee above 1.0% on assets financed over 200% asset coverage (“Leverage Waiver”) | Incentivizes asset growth; waiver partially offsets leverage-driven fee escalation |
| NII Incentive Fee | Quarterly: 100% catch‑up over 1.5% hurdle until 17.5% of pre‑fee NII is reached at 1.82% for the quarter; 17.5% above 1.82% thereafter | Rewards sustained net investment income production and yield/fee generation |
| Capital Gains Incentive Fee | Annual: 17.5% of cumulative realized capital gains net of losses (post‑2014 vintage) | Rewards realized value creation and exits; accrues on unrealized gains but paid only on realization per Advisers Act |
| Adviser Profit Participation | Certain executive officers may receive a portion of Adviser profits (fees less expenses) via ownership/positions at the Adviser | Aligns Bo’s incentives with Adviser economics across AUM growth, NII, and realized gains |
Risk note: Because the NII fee is based on net assets, decreases in NAV can increase the likelihood of exceeding the quarterly hurdle; TSLX may pay incentive fees in a quarter with capital losses if NII exceeds the hurdle .
Equity Ownership & Alignment
| Metric | 3/28/2024 | 3/31/2025 |
|---|---|---|
| Beneficial ownership (shares) | 14,907 | 14,907 |
| Percent of outstanding | <0.1% | <0.1% |
| Shares pledged | 3,907 (indirect; pass‑through voting, no dispositive power) | 3,907 (indirect; pass‑through voting, no dispositive power) |
- Hedging/pledging policy: TSLX policy prohibits short sales and listed options; strongly discourages hedging; prohibits pledging or margin accounts, with exceptions allowed by Sixth Street Legal & Compliance if financial capacity is demonstrated .
- Alignment takeaways: Bo’s direct TSLX share ownership is small relative to outstanding shares; the disclosed pledge (by an indirect entity) is a monitoring point given general prohibitions subject to exceptions .
Employment Terms
- Employment agreement/severance/change‑in‑control: Not disclosed; TSLX states it does not compensate executive officers directly (no individual contracts or golden parachute terms presented) .
- Clawback, deferred comp, pensions, perquisites: Not disclosed at the TSLX level for executive officers given the external management model .
Additional Governance, Conflicts, and Policy Context
- Insider trading controls: Trades by directors/officers/employees of the Adviser must be pre‑cleared; short sales/derivatives prohibited; pledging discouraged and generally prohibited except via approved exceptions .
- Related-party/adviser conflicts: Advisory fee structure and co‑investment framework governed by SEC exemptive order; Investment Review Committee (including Bo) and Independent Directors (via “required majority”) provide process guardrails around allocations and co‑investments .
- Board oversight structure: Independent Directors chair key committees; executive sessions without management occur; CEO also serves as Chairman (no Lead Independent Director), placing weight on committee rigor .
Investment Implications
- Pay-for-performance alignment: As a Partner at the Adviser, Bo’s incentives are tied to Adviser economics (AUM/assets, NII generation, realizations), not TSLX salary/bonus—aligning him with portfolio yield, fee income, and realized gains, but also creating potential asset‑growth incentives mitigated by the Leverage Waiver and independent board oversight .
- Insider selling/pressure: No TSLX equity award vesting exists (no plans), reducing mechanical selling; disclosed pledge of 3,907 shares via an indirect entity is a modest potential liquidity flag within a policy framework that allows exceptions, warranting periodic monitoring .
- Retention risk: Compensation is determined by Sixth Street; while not disclosed at the individual level, Partner status and committee role suggest high integration into the platform, reducing near‑term flight risk but limiting investor visibility into guarantees or non-competes .
- Governance checks: CEO/Chair duality and lack of a Lead Independent Director elevate the importance of independent Audit/Comp/Nom‑Gov committees and the Risk Management Committee for oversight; current structure includes independent majorities and executive sessions .
- Trading signal context: TSLX’s premium to NAV and consistent dividends reflect strategy attractiveness; incentive fee mechanics (hurdle/catch‑up) support sustained NII, but investors should monitor NAV trends (which affect fee incidence) and any future exceptions under the insider trading policy (pledging/hedging) .