Fidus Investment Corp (FDUS) 2026 Q1 法說會逐字稿

Good day, and welcome to the Fidus first quarter 2026 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 Fidus 2026 年第一季財報電話會議。(接線員指示) 請注意，本次活動將被錄音。

I would now like to turn the conference over to Jody Burfening. Please go ahead.

現在我想把會議交給 Jody Burfening。請開始。

Thank you, Debbie. And good morning, everyone, and thank you for joining us for Fidus Investment Corporation's first quarter 2026 earnings conference call. With me this morning are Ed Ross, Fidus Investment Corporation's Chairman and Chief Executive Officer; and Shelby Sherard, Chief Financial Officer.

謝謝你，Debbie。各位早安，感謝各位參加 Fidus Investment Corporation 2026 年第一季財報電話會議。今天早上與我一同出席的有 Fidus Investment Corporation 董事長兼執行長 Ed Ross，以及財務長 Shelby Sherard。

Fidus Investment Corporation issued a press release yesterday afternoon with the details of the company's quarterly financial results. A copy of the press release is available on the Investor Relations page of the company's website at fdus.com.

Fidus Investment Corporation 昨天下午發布新聞稿，說明公司本季財務結果的細節。新聞稿可於公司網站 fdus.com 的投資人關係頁面取得。

I'd also like to call your attention to the customary Safe Harbor disclosure regarding forward-looking information included on today's call. The conference call today will contain forward-looking statements, including statements regarding the goals, strategies, beliefs, future potential, operating results, and cash flows of Fidus Investment Corporation.

我也想提醒各位注意今天電話會議中關於前瞻性資訊的慣例性「安全港」揭露。今天的電話會議將包含前瞻性陳述，包括關於 Fidus Investment Corporation 的目標、策略、信念、未來潛力、營運結果與現金流的陳述。

Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, May 7, 2026. These statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties, and other factors, including, but not limited to, the factors set forth in the company's filings with the Securities and Exchange Commission. Fidus undertakes no obligation to update or revise any of these forward-looking statements.

儘管管理層認為截至今日（2026 年 5 月 7 日）基於估計、假設與預測，這些陳述屬合理。但這些陳述並非對未來績效的保證。具時效性的資訊在任何電話或網路重播時可能已不再準確。實際結果可能因風險、不確定性及其他因素而出現重大差異，包括但不限於公司向美國證券交易委員會提交文件中所載之因素。Fidus 不承擔更新或修訂任何前瞻性陳述之義務。

With that, I would now like to turn the call over to Ed. Good morning, Ed.

接下來，我想把電話會議交給 Ed。早安，Ed。

Good morning, Jody. And good morning, everyone. Welcome to our first quarter 2026 earnings conference call. In today's call, I'll start with a review of our first quarter performance in our portfolio at quarter end and then share with you our outlook for 2026. Shelby will cover the first quarter financial results and our liquidity position. After we have completed our prepared remarks, we'll be happy to take your questions.

早安，Jody。各位早安。歡迎參加我們 2026 年第一季財報電話會議。在今天的會議中，我將先回顧第一季表現以及季末投資組合狀況，接著與各位分享我們對 2026 年的展望。Shelby 將說明第一季財務結果與我們的流動性部位。在我們完成事先準備的發言後，我們很樂意回答各位的問題。

Fidus' first quarter results were extremely strong from an income statement perspective with an adjusted NII of $0.62 per share, our debt portfolio continued to over earn our base dividend of $0.43 per share and to support a payout of excess earnings to shareholders. Adjusted NII grew 14.8% to $23.7 million, reflecting a 13.1% increase in interest income on higher average income producing assets along with higher fee income than last year.

從損益表角度來看，Fidus 第一季的結果極為強勁，調整後 NII（淨投資收益）為每股 0.62 美元；我們的債務投資組合持續超出每股 0.43 美元的基本股利水準，並支持向股東配發超額盈餘。調整後 NII 成長 14.8% 至 2,370 萬美元，反映在平均生息資產增加帶動利息收入成長 13.1%，以及手續費收入高於去年。

We ended the quarter with estimated spillover income of $1.14 per share. Deal activity was relatively modest during the quarter, including M&A transactions completed by our portfolio companies. Overall, our portfolio remains healthy, characterized by niche market leaders with traits that provide long-term barriers to entry and that ensure their value proposition and competitive positioning.

本季結束時，我們的估計結轉收益（spillover income）為每股 1.14 美元。本季交易活動相對溫和，包括投資組合公司完成的併購（M&A）交易。整體而言，我們的投資組合仍維持健康，主要由利基市場領導者構成，具備可提供長期進入障礙的特質，並確保其價值主張與競爭定位。

Through our strict underwriting process, we ensure that we are selecting companies with proven resilient business models that generate recurring revenue and cash flow to service debt and to provide capital for growth. We remain focused on industries we know well in the lower middle market, leveraging our established relationships with deal sponsors.

透過嚴格的承作審查流程，我們確保所選擇的公司擁有經驗證、具韌性的商業模式，能產生經常性收入與現金流以償付債務並提供成長資本。我們仍專注於我們熟悉的低度中型市場（lower middle market）產業，並運用與交易贊助方既有的關係。

For the second quarter of 2026, the Board of Directors declared a total dividend of $0.62 per share, which consists of a base dividend of $0.43 per share and a supplemental dividend of $0.19 per share, equal to 100% of the surplus in adjusted NII over the base dividend from the prior quarter which will be payable on June 29, 2026, to stockholders of record as of June 16, 2026.

針對 2026 年第二季，董事會宣告每股合計股利 0.62 美元，其中包含每股 0.43 美元的基本股利與每股 0.19 美元的補充股利；補充股利相當於前一季調整後 NII 超過基本股利之剩餘部分的 100%，將於 2026 年 6 月 29 日支付給截至 2026 年 6 月 16 日為止的在冊股東。

Net asset value held steady at $742 million at quarter end or $19.55 per share. Originations in the first quarter amounted to $118.7 million, nearly all of which consisted of first lien debt investments in support of both M&A transactions and debt recapitalization.

季末淨資產價值維持在 7.42 億美元，或每股 19.55 美元。第一季新增投資（originations）為 1.187 億美元，幾乎全部為第一順位留置權（first lien）債務投資，用以支持併購交易與債務再資本化。

We also invested $1.8 million in equity securities of two new portfolio companies, consistent with our investment strategy of maintaining a portfolio that is structured to produce both high levels of current and recurring income and the potential for capital gains from monetizing equity investments. Subsequent to quarter end, we invested an additional $21.5 million in one new portfolio company.

我們亦對兩家新投資組合公司的股權證券投資 180 萬美元，符合我們的投資策略：維持一個同時能產生高水準、當期且經常性收益，並具備透過股權投資變現以取得資本利得潛力的投資組合結構。在季末之後，我們又對一家新的投資組合公司額外投資 2,150 萬美元。

Proceeds from repayments and realizations totaled $73.1 million for the first quarter, resulting from a mix of M&A and refinancing activity and we monetized equity investments in two portfolio companies, generating $3.9 million in realized gains. Offsetting these gains was a total of approximately $15 million in realized losses in connection with the conversion of Suited Connector's debt into equity.

第一季因償還與處分所取得的款項合計 7,310 萬美元，來源包含併購與再融資活動的組合；我們亦將兩家投資組合公司的股權投資變現，產生 390 萬美元的已實現收益。抵銷上述收益的是，因將 Suited Connector 的債務轉換為股權而產生合計約 1,500 萬美元的已實現損失。

Looking at net investment activity, which takes debt recapitalizations into an account, our portfolio grew by $46 million in Q1. First lien investments comprised 87% of the debt portfolio, reflecting the ongoing migration towards first lien securities. Combined with our $149.6 million equity portfolio, we ended the quarter with a portfolio totaling $1.4 billion on a fair value basis equal to 102.5% of cost.

就淨投資活動而言（將債務再資本化納入考量），我們的投資組合在第一季成長 4,600 萬美元。第一順位留置權投資占債務投資組合的 87%，反映持續朝第一順位留置權證券移轉的趨勢。加上我們 1.496 億美元的股權投資組合，我們在季末的投資組合以公允價值計合計 14 億美元，相當於成本的 102.5%。

Overall, the portfolio remains healthy from a credit quality perspective, supported by very solid underlying portfolio company performance. We ended the quarter with only one portfolio company on nonaccrual that accounted for less than 1% of the total portfolio on both a fair value and cost basis.

整體而言，從信用品質角度來看，投資組合仍維持健康，並由投資組合公司非常穩健的基本面表現所支撐。季末僅有一家投資組合公司列為停止計息（nonaccrual），其在公允價值與成本基礎下均占整體投資組合不到 1%。

Our portfolio remains well diversified by industry, consisting of a mix of manufacturing, distribution, and services company. In addition, we have a well-diversified group of software and IT services names within our portfolio that are exposed to both opportunities and risks associated with AI. This group represents about 32% of our total portfolio on a fair value basis. We haven't seen any negative impacts from AI on this portfolio.

我們的投資組合在產業別方面仍相當分散，涵蓋製造、流通與服務型公司。此外，我們的投資組合中亦包含一組分散良好的軟體與 IT 服務公司，這些公司同時面臨與 AI 相關的機會與風險。以公允價值計，該組別約占我們整體投資組合的 32%。我們尚未看到 AI 對此投資組合造成任何負面影響。

Importantly, nearly all of our debt investments in these companies are in highly structured first lien securities with at least two maintenance covenants in all portfolio companies, except for one, are backed by high-quality sponsors with proven track records in the space. The weighted average loan-to-value for this portfolio was approximately 42% this quarter, below our total portfolio weighted average loan-to-value of approximately 45% on a cost basis.

重要的是，我們在這些公司的幾乎所有債務投資皆為高度結構化的第一順位留置權證券；除一家公司外，所有投資組合公司至少設有兩項維持性財務契約（maintenance covenants），並由在該領域具備良好實績的高品質贊助方支持。本季該投資組合的加權平均貸款價值比（loan-to-value）約為 42%，低於我們整體投資組合以成本基礎計算約 45% 的加權平均貸款價值比。

In addition, the current contractual duration of our debt investments in this category is 2.2 years, enhancing our ability to manage any tougher situations we might encounter down the road. Equity investments in software and IT services company totaled $16.1 million or approximately 11% of our total equity portfolio on a fair value basis.

此外，此類別中我們債務投資目前的合約存續期間為 2.2 年，提升我們在未來可能遇到較棘手情況時的管理能力。軟體與 IT 服務公司的股權投資合計 1,610 萬美元，約占我們整體股權投資組合（以公允價值計）的 11%。

In closing, our portfolio remains well positioned to continue to generate adjusted NII in excess of our base dividend and to realize gains from monetizing equity investments. Although M&A activity is currently lackluster in light of the geopolitical uncertainties and associated market volatility, our pipeline of investment opportunities is decent in our long-standing relationships with deal sponsors and lower middle market expertise position us to identify high-quality companies that meet our rigorous underwriting standards for investment. We will, as always, manage the business for the long term, staying focused on our goals of preserving capital and generating attractive risk-adjusted returns for our shareholders.

最後，我們的投資組合仍處於良好定位，可持續產生超過基本股利的調整後淨投資收益（adjusted NII），並透過變現股權投資來實現收益。儘管在地緣政治不確定性及相關市場波動之下，目前併購（M&A）活動相對低迷，但憑藉我們與交易發起人長期建立的關係以及在中小型市場（lower middle market）的專業能力，我們的投資機會管線仍然不錯，使我們能夠辨識符合嚴格承銷標準、具高品質的公司進行投資。我們將一如既往以長期為導向經營業務，持續聚焦於保全資本並為股東創造具吸引力的風險調整後報酬。

Now I'll turn the call over to Shelby to provide details on our financial and operating results. Shelby?

現在我把電話交給 Shelby，請她說明我們的財務與營運成果細節。Shelby？

Thank you, Ed. And good morning, everyone. I'll review our first quarter results in more detail and close with comments on our liquidity position. Please note, I will be providing comparative commentary versus the prior quarter Q4 2025.

謝謝你，Ed。各位早安。我將更詳細地回顧我們第一季的結果，並在最後就我們的流動性部位發表評論。請注意，我將提供相較於上一季（2025 年第四季，Q4 2025）的比較說明。

Total investment income was $47.5 million for the three months ended March 31, a $5.4 million increase from Q4, primarily driven by a $1.4 million increase in interest income, driven by increased average debt investments outstanding and a $4.1 million increase in fee income due to a $6.9 million fee related to the refinancing of our debt investments in American AllWaste, partially offset by lower origination and prepayment fees from investment activity.

截至 3 月 31 日止三個月的總投資收入為 4,750 萬美元，較第四季增加 540 萬美元，主要來自利息收入增加 140 萬美元（受平均未償債務投資餘額增加帶動），以及手續費收入增加 410 萬美元（因 American AllWaste 債務投資再融資產生 690 萬美元手續費），但部分被投資活動帶來的較低承作（origination）與提前償還（prepayment）手續費所抵銷。

Total expenses, including tax provision were $22.9 million for the first quarter, a $0.4 million higher than Q4, primarily driven by a $0.4 million increase in interest expense related primarily to higher average debt balances outstanding, a $1.4 million increase in base management and income incentive fees given the increase in assets under management and higher fee income in Q1, a $0.9 million increase in G&A expenses.

第一季總費用（含所得稅提列）為 2,290 萬美元，較第四季增加 40 萬美元，主要因利息費用增加 40 萬美元（主要與平均未償債務餘額較高相關）、基礎管理費與收益激勵費增加 140 萬美元（因管理資產規模增加及第一季手續費收入較高），以及一般及行政（G&A）費用增加 90 萬美元。

G&A expenses were higher due to the write-off of unamortized deferred financing costs and incremental legal expenses related to our new registration statement and the timing of annual audit and tax compliance expenses incurred in Q1. These were offset by a $0.7 million decrease in the capital gains fee and a $1.8 million decrease in income tax provision related to the annual excise tax accrual in Q4.

G&A 費用較高，係因沖銷未攤銷的遞延融資成本、與我們新的註冊聲明相關的新增法律費用，以及年度審計與稅務遵循費用於第一季發生的時點所致。上述增加部分被資本利得費用減少 70 萬美元，以及所得稅提列減少 180 萬美元（與第四季年度消費稅〔excise tax〕應計相關）所抵銷。

Net investment income or NII for the three months ended March 31 was $0.65 per share versus $0.53 per share in Q4. Adjusted NII, which excludes any capital gains, incentive fee accruals or reversals attributable to realized and unrealized gains and losses on investments, was $0.62 per share in Q1 versus $0.52 in Q4.

截至 3 月 31 日止三個月的淨投資收益（NII）為每股 0.65 美元，第四季為每股 0.53 美元。調整後 NII（排除任何資本利得、以及因投資已實現與未實現損益所致之激勵費用應計或回轉）第一季為每股 0.62 美元，第四季為每股 0.52 美元。

For the three months ended March 31, we recognized approximately $12.2 million of net realized losses related to a $15.8 million realized loss on the exit of our debt investments in Suited Connector, taking this nonaccrual off our books, which was partially offset by a $3.9 million in realized gains on our equity investments in CIH Intermediate and Zonkd.

截至 3 月 31 日止三個月，我們認列約 1,220 萬美元的淨已實現損失，主要與退出 Suited Connector 的債務投資所產生 1,580 萬美元已實現損失相關，並將該筆非應計（nonaccrual）投資自帳上移除；部分則由我們在 CIH Intermediate 與 Zonkd 的股權投資已實現收益 390 萬美元所抵銷。

We ended the quarter with $682.2 million of debt outstanding, comprised of $260.5 million of SBA debentures, $325 million of unsecured notes, $85.2 million outstanding on the line of credit, and $11.6 million of secured borrowings. Our net debt-to-equity ratio as of March 31 was 0.9 times. Our statutory leverage, excluding exempt SBA debentures, was 0.6 times. The weighted average interest rate on our outstanding debt was 5.2% as of quarter end.

本季末我們的未償債務總額為 6.822 億美元，包含 2.605 億美元的 SBA 債券（debentures）、3.25 億美元的無擔保票據、信用額度（line of credit）動用 8,520 萬美元，以及 1,160 萬美元的擔保借款。截至 3 月 31 日，我們的淨負債對股東權益比率為 0.9 倍。我們的法定槓桿（不含豁免的 SBA 債券）為 0.6 倍。季末未償債務的加權平均利率為 5.2%。

Turning now to portfolio statistics. As of March 31, our total investment portfolio had a fair value of $1.4 billion. Our average portfolio company investment on a cost basis was $13.8 million, which excludes investments in seven portfolio companies that sold their operations or in the process of winding down. We have equity investments in approximately 85.6% of our portfolio companies with an average fully diluted equity ownership of 2%.

接著談投資組合統計。截至 3 月 31 日，我們整體投資組合的公允價值為 14 億美元。以成本基礎計算，我們對單一投資組合公司的平均投資金額為 1,380 萬美元；此數字不包含 7 家已出售營運或正處於結束營運流程中的投資組合公司之投資。我們在約 85.6% 的投資組合公司中持有股權投資，平均完全稀釋後（fully diluted）股權持有比例為 2%。

Weighted average effective yield on debt investments was 12.5% as of March 31, a slight decrease versus 12.6% at the end of Q4. The weighted average yield is computed using effective interest rates for debt investments at cost, including the accretion of original issue discount and loan origination fees, but excluding investments on nonaccrual, if any.

截至 3 月 31 日，債務投資的加權平均有效收益率為 12.5%，較第四季末的 12.6% 略為下降。加權平均收益率係以按成本計之債務投資有效利率計算，包含原始發行折價（original issue discount）的攤提增值（accretion）及貸款承作手續費，但不包含（如有）處於非應計（nonaccrual）的投資。

Now I'd like to discuss our available liquidity. As of March 31, our liquidity and capital resources included cash of $50.4 million, $139.9 million of availability on our line of credit, and $54 million of available SBA debentures, resulting in total liquidity of approximately $244.2 million.

接下來我想說明我們可用的流動性。截至 3 月 31 日，我們的流動性與資本資源包括 5,040 萬美元現金、信用額度可用額度 1.399 億美元，以及可用的 SBA 債券 5,400 萬美元，合計總流動性約 2.442 億美元。

Now I'll turn the call back to Ed for concluding comments.

現在我把電話交回給 Ed 作結語。

Thanks, Shelby. As always, I'd like to thank our team and the Board of Directors at Fidus for their dedication and hard work and our shareholders for their continued support. I will now turn the call over to Debbie for Q&A. Debbie?

謝謝，Shelby。一如往常，我要感謝 Fidus 的團隊與董事會成員的投入與辛勞，也感謝股東持續的支持。我現在把電話交給 Debbie 進行問答。Debbie？

(Operator Instructions) Christopher Nolan, Ladenburg Thalmann.

（接線員指示）Christopher Nolan，Ladenburg Thalmann。

Shelby, were there any nonrecurring items in the quarter? I might have missed in your comments.

Shelby，本季是否有任何一次性（nonrecurring）項目？我可能在你的說明中漏聽了。

No, we did incur a rather large fee that I'd characterize as more of a one-time fee. It was kind of about $6.97 million related to the American AllWaste debt refinancing. So that drove the fee income in Q1 and kind of the beat versus consensus.

沒有，不過我們確實產生了一筆相當大的費用，我會把它歸類為較偏一次性的費用。大約是 697 萬美元，與 American AllWaste 的債務再融資相關。因此帶動了第一季的手續費收入，也使得第一季相較市場共識預期出現超出（beat）。

Robert Dodd, Raymond James.

Robert Dodd，Raymond James。

Congratulations to Shelby and team for a really good quarter. A question about that American AllWaste fee. I mean, if I look, I mean, the position size is about just on $50 million now. And obviously, it was smaller than that before. A $6.9 million fee on a refinancing of a position, that size seems pretty high. Obviously, the first fee last quarter was marked well above cost. There was some oddities, differences in how the prior thing was structured.

恭喜 Shelby 與團隊交出非常好的季度表現。我有個關於 American AllWaste 那筆費用的問題。我的意思是，如果我看一下，目前部位規模大約接近 5,000 萬美元。而且顯然在此之前規模更小。就這樣規模的一個部位再融資，收取 690 萬美元的費用看起來相當高。顯然，上一季的第一筆費用在評價上就高於成本不少。先前的架構在設計上有一些特殊之處與差異。

Are there any other -- is it a normal asset that just happened to repay and generate a really good fee? Or was there something unusual about the structure of that asset? I'm just kind of trying to get a feel. Obviously, probably not going to happen every quarter, but can this kind of outsized refinancing fee happen again in different assets?

這是否只是一般資產剛好償還並產生非常好的費用？還是該資產的結構有什麼不尋常之處？我只是想掌握一下情況。顯然這可能不會每季都發生，但這種特別大的再融資費用，是否可能在其他資產上再次出現？

Sure. It's a great question, Robert. I think the -- could it happen again to a certain degree? To this magnitude, I mean, sure, anything's possible, but it's a pretty healthy fee, as you've highlighted. It is not the norm of every credit by any stretch of the imagination. We have a few other investments where we have fees that can be earned on the back end.

當然。Robert，這是個很好的問題。我認為——在某種程度上，是否可能再次發生？以這樣的規模而言，我是說，當然任何事都有可能，但如你所指出，這確實是一筆相當可觀的費用。這絕非每一筆授信（credit）的常態。我們還有少數其他投資，在到期或後端（back end）也可能賺取費用。

And what I would say in this case is, you know, obviously, American AllWaste has been in our portfolio for a while. There was a point in time where there was a need for capital on a relatively quick basis. We ended up being the source of that capital. So we priced that capital in accordance with what we thought the numbers should be, if you will.

我在這個情況下想說的是，你知道，很明顯，美國 AllWaste 已經在我們的投資組合裡一段時間了。曾經有一個時間點，需要在相對短的時間內取得資本。最後我們成為那筆資本的提供方。因此，我們依照我們認為合理的數字來為那筆資本定價。

So this is not like, okay, this is the business going forward or anything like that. It's just we are a solution provider. We ended up providing a solution that was needed, and we were paid accordingly for that solution, is the way I would think about it.

所以這不像是，好吧，這就是未來的業務走向或諸如此類。我們只是解決方案提供者。我們最後提供了所需要的解決方案，而我們也因此按該解決方案獲得相應報酬，我是這樣看待的。

Got it. Thank you. Not asking, but I wonder if that was COVID timing related, because obviously it was Zoom before that, so I appreciate that.

了解了。謝謝。我不是在追問，但我在想那是否與 COVID 的時間點有關，因為很明顯在那之前是用 Zoom，所以我很感謝。

Then just the more general, I mean, Ed, you characterized the pipeline as decent, but the market as kind of lackluster, which obviously is a theme across the space, not surprisingly with the number of macro uncertainties. I mean, do you -- would you characterize -- is that lackluster market is driven by these uncertainties, I mean, between oil, macro, et cetera. And do you need more -- do you think the market needs more certainty on that for the PE market in your segment to show a little bit more life?

接著更一般性地說，我是說，Ed，你把案源管線形容為還不錯，但市場有點疲弱；這顯然也是整個領域的共同主題，考量到宏觀不確定性之多，這也不令人意外。我的意思是，你會不會形容——這種疲弱的市場是由這些不確定性所驅動的？例如油價、宏觀環境等等。你是否認為，為了讓你們這個細分領域的私募市場更有活力，市場需要在這些方面有更多確定性？

Sure. Great question. Let me give you a little color on just what we've experienced in Q1 and whatnot. But as most people in this space felt deal flow is more modest in nature and when we believe largely due to seasonal patterns, and I'm talking about Q1. And then that was prior to the geopolitical conflict in the Middle East. And also at that time, general expectations were for an increase in both deal flow and investment activity throughout the year.

當然。好問題。我先補充一些我們在第一季以及相關情況的觀察。但如同這個領域的大多數人所感受到的，交易流量相對較為溫和；我們認為主要是季節性因素所致，我指的是第一季。而那是在中東地緣政治衝突之前。同時，在那個時間點，普遍預期全年交易流量與投資活動都會增加。

As we sit here today, we still have confidence in a pickup in activity, but the pace will be somewhat dependent upon a reduction in the current level of uncertainty that's in the world today. As we sit here today, there's quite a bit of pent-up demand in M&A, and that's a concept that we've -- not new, we've all heard.

以我們今天所處的情況來看，我們仍然有信心活動會回升，但步調在某種程度上將取決於當前全球不確定性程度的下降。以目前來看，併購市場存在相當多的被壓抑需求，這個概念我們——並不新，大家都聽過。

The good news from our perspective though is the fragmented nature of the lower middle market and its large overall size. This fact should continue to provide ample investment opportunities for us to pursue. No matter if M&A picks up or does not. We really like that aspect of the lower middle market. So there's still activity going on as we sit here today, but it's clearly not anything close to robust levels. And we do have investment opportunities with both existing portfolio companies as well as new investment opportunities. But again, more lackluster relative to robust times, if you will.

不過從我們的角度來看，好消息是下中型市場的高度分散性以及其整體規模龐大。這一點應能持續為我們提供充足的投資機會去追求。不論併購活動是否回升。我們非常喜歡下中型市場的這個特性。所以即便在今天仍有活動在進行，但顯然離強勁水準還差得遠。我們在既有投資組合公司以及新的投資機會上都有投資機會。但再說一次，相較於景氣熱絡的時期，確實更顯疲弱。

At the end of the day, we expect it to be an okay to decent originations quarter. We expect repayments actually to probably be on the lighter side. I'd say all that. A lot of things can change, a lot of deals that we think are going to close may not close, so who knows. But that would be our expectation as we sit here today as some decent growth this quarter in the portfolio but a little lighter on the repayment side overall. Hopefully, that gives you some (multiple speakers) --

總的來說，我們預期本季的案源會是尚可到不錯的一季。我們預期回收款項（repayments）可能會偏少。我會這麼說。很多事情都可能改變，很多我們以為會成交的案子也可能不會成交，所以誰知道呢。但以目前來看，我們的預期是本季投資組合會有一些不錯的成長，但整體回收端會稍微偏輕。希望這能給你一些（多位發言者）——

Yes, that is very helpful. And then just kind of -- following on the next part of that really is spreads. Obviously, your year portfolio yields down a tiny bit versus Q4. Obviously, the spreads kind of stable as well, I think. Looking forward, I mean, there has been -- there's talking in the marketplace is certainly the larger, more upmarket about spread expansion. But maybe that's impacted by the flows in the private perpetual vehicles.

是的，這非常有幫助。接著大概——延續下一部分其實就是利差（spreads）。很明顯，你們今年的投資組合收益率相較第四季小幅下降。利差看起來也大致穩定，我想。往前看，市場上確實有在談利差擴大，尤其是在更大型、更偏上游的市場。但也許這受到私募常續型載體（private perpetual vehicles）資金流向的影響。

I mean what are your thoughts on spreads in your end of the market? Do you think stability is more likely? Or do you think that's actually a prospect for the expansion in the smaller end of the market. And obviously, I would differentiate that between the overall market and maybe what you're seeing on the software side.

我的意思是，你對你們這一端市場的利差有什麼看法？你覺得更可能維持穩定嗎？還是你認為在較小型市場端其實有擴大的可能？當然，我會把整體市場與你們在軟體端所看到的情況區分開來。

Sure. Great question. We are seeing, what I would say, is wider spreads. But I'll also say, and this is where we like to play the most is for truly great assets, great operating companies. There continues to be a high level of competition, albeit slightly better pricing relative to prior to the conflict. But it's a situation where I think there is ample capital out there, and so there is competition but for the right assets,

當然。好問題。我們看到的是，我會說，利差更寬。但我也要說，而這也是我們最喜歡參與的地方：對於真正優質的資產、優秀的營運公司，競爭仍然非常激烈；儘管相較於衝突發生前，定價略有改善。

Obviously, we still think the spreads are extremely attractive and the terms are also remain very strong in the lower middle market in terms of covenants, security, what have you. So there is opportunities to increase spreads, but I would argue for great assets, the competition is still meaningful, if you will.

很明顯，我們仍然認為利差極具吸引力，而在下中型市場，條款也依然非常強勁，例如契約條款（covenants）、擔保（security）等等。所以確實有提高利差的機會，但我會主張，對於優質資產，競爭仍然相當顯著。

And again, congratulations on the quarter.

再次恭喜你們本季的表現。

Thanks, Robert. Good talking to you.

謝謝你，Robert。很高興和你交流。

(Operator Instructions) At this time, we have no further questions in the queue.

（接線員指示）目前提問佇列中沒有其他問題。

Okay. Well, thank you, Debbie.

好的。那麼，謝謝你，Debbie。

Yes, this concludes our question-and-answer session. I would like to turn the conference back over to Ed Ross for closing remarks.

好的，問答環節到此結束。我想把電話會議交回給 Ed Ross 作結語。

Well, thank you, Debbie. And thank you, everyone, for joining us this morning. We look forward to speaking with you on our second quarter call in early August. Have a great day and a great weekend.

好的，謝謝你，Debbie。也謝謝各位今天早上加入我們。我們期待在八月初的第二季電話會議上再與各位交流。祝各位有美好的一天與愉快的週末。

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議到此結束。感謝您參加今天的簡報。您現在可以掛線。