FS KKR Capital Corp (FSK) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to FS KKR Capital Corp's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded.

早安，女士們，先生們。歡迎參加 FS KKR Capital Corp 2023 年第三季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。

At this time, Robert Paun, Head of Investor Relations, will proceed with the introduction. Mr. Paun, you may begin.

以下由投資者關係主管Robert Paun進行介紹。潘先生，您可以開始了。

Thank you. Good morning, and welcome to FS KKR Capital Corp's Third Quarter 2023 Earnings Conference Call. Please note that FS KKR Capital Corp. may be referred to as FSK, the fund or the company throughout the call.

謝謝。早安，歡迎參加 FS KKR Capital Corp 的 2023 年第三季財報電話會議。請注意，FS KKR Capital Corp. 在整個電話會議中可能被稱為 FSK、基金或公司。

Today's conference call is being recorded, and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued yesterday. In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended September 30, 2023. A link to today's webcast and the presentation is available on the Investor Relations section of the company's website under Events and Presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited.

今天的電話會議正在錄音，電話會議的音訊重播將保留 30 天。重播訊息包含在 FSK 昨天發布的新聞稿中。此外，FSK 還在其網站上發布了一份演示文稿，其中包含截至2023 年9 月30 日的季度的投資組合和財務業績的補充財務信息。今天的網絡廣播和演示文稿的鏈接可在公司網站的投資者關係部分找到。網站上的「活動和演示」。請注意，此呼叫屬於 FSK 的財產。嚴禁以任何形式未經授權轉播本次通話。

Today's conference call includes forward-looking statements and are subject to risks and uncertainties that could affect FSK or the economy generally. We ask that you refer to FSK's most recent filings with the SEC for important factors and risks that could cause actual results or outcomes to differ materially from these statements. FSK does not undertake to update its forward-looking statements unless required to do so by law.

今天的電話會議包含前瞻性陳述，並受到可能影響 FSK 或整體經濟的風險和不確定性的影響。我們要求您參考 FSK 最近向 SEC 提交的文件，以了解可能導致實際結果或成果與這些聲明有重大差異的重要因素和風險。除非法律要求，否則 FSK 不承諾更新其前瞻性聲明。

In addition, this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures can be found in FSK's third quarter earnings release that was filed with the SEC on November 6, 2023. Non-GAAP information should be considered supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly named measures reported by other companies. To obtain copies of the company's latest SEC filings, please visit FSK's website.

此外，本次電話會議還將包括某些非公認會計準則財務指標。對於此類指標，可以在2023 年11 月6 日向SEC 提交的FSK 第三季度收益報告中找到與最直接可比較的GAAP 指標的對賬。非GAAP 信息本質上應被視為補充信息，不應孤立地考慮或作為根據 GAAP 編制的相關財務資訊的替代品。此外，這些非公認會計原則財務指標可能與其他公司報告的類似名稱的指標不同。若要取得該公司最新 SEC 備案文件的副本，請造訪 FSK 網站。

Speaking on today's call will be Michael Forman, Chief Executive Officer and Chairman; Dan Pietrzak, Chief Investment Officer and Co-President; Brian Gerson, Co-President; and Steven Lilly, Chief Financial Officer. Also joining us in the room are Co-Chief Operating Officers, Drew O'Toole and Ryan Wilson.

執行長兼董事長 Michael Forman 將在今天的電話會議上發言。 Dan Pietrzak，首席投資長兼聯合總裁；布萊恩‧格森，共同總裁；和財務長史蒂文·禮來（Steven Lilly）。與我們一同出席的還有聯合營運長德魯‧奧圖爾 (Drew O'Toole) 和瑞安‧威爾森 (Ryan Wilson)。

I will now turn the call over to Michael.

我現在將把電話轉給邁克爾。

Thank you, Robert, and good morning, everyone. I'd like to start by acknowledging the tragedy in the Middle East and the loss of innocent lives. Like so many of you, I was shocked by the invasion of Israel. To the many people who have had family, friends and loved ones impacted by these devastating and tragic events, our hearts go out to you.

謝謝羅伯特，大家早安。首先，我要承認中東發生的悲劇和無辜者的生命損失。和你們許多人一樣，我對以色列的入侵感到震驚。對於許多家人、朋友和親人受到這些毀滅性和悲劇事件影響的人們，我們的心與你們同在。

And now turning to FSK's results for the third quarter. Our financial and operating results showed continued strength as we exceed our earnings guidance and outearned our quarterly base and supplemental distribution. During the third quarter, we generated net investment income totaling $0.84 per share and adjusted net investment income totaling $0.80 per share as compared to our public guidance of approximately $0.79 and $0.76 per share, respectively.

現在轉向 FSK 第三季的業績。我們的財務和營運業績顯示出持續的強勁勢頭，我們超越了我們的獲利指導，並超過了我們的季度基數和補充分配。第三季度，我們產生的淨投資收益總計為每股 0.84 美元，調整後的淨投資收益總計為每股 0.80 美元，而我們的公開指引分別約為每股 0.79 美元和 0.76 美元。

Our net asset value per share at the end of the third quarter was $24.89, which is equal to our net asset value per share at the start of the year. During the third quarter, our net asset value per share increased by approximately 1%.

第三季末我們的每股淨值為24.89美元，與年初的每股淨值持平。第三季度，我們的每股資產淨值成長了約1%。

Based on our positive operating results, our Board has declared a fourth quarter regular quarterly distribution of $0.70 per share consisting of our base distribution of $0.64 per share and a supplemental distribution of $0.06 per share.

基於我們積極的經營業績，我們的董事會宣布第四季度定期季度分配為每股 0.70 美元，其中包括每股 0.64 美元的基本分配和每股 0.06 美元的補充分配。

As many of you will recall, in May of this year, we declared a series of 3 special distribution payments totaling $0.15 per share. The third $0.05 per share installment will be paid at the end of this month. Based on our continued strong performance, coupled with our positive earnings outlook, I'm pleased to announce that our special distribution will continue for the next 2 quarters, an amount totaling $0.10 per share.

你們中的許多人都記得，今年 5 月，我們宣布了一系列 3 次特別分配付款，總額為每股 0.15 美元。第三期每股 0.05 美元的分期付款將於本月底支付。基於我們持續強勁的業績，加上我們積極的獲利前景，我很高興地宣布，我們的特別分配將在接下來的兩個季度繼續進行，每股金額總計 0.10 美元。

Consistent with our corporate view of sharing additional earnings with our investors on a real-time basis, this special distribution will be paid in 2 equal installments of $0.05 per share in the first and second quarters of 2024, and will be on top of our quarterly base and supplemental distributions, which currently total $0.70 per share.

與我們與投資者即時分享額外收益的企業理念相一致，此次特別分配將在 2024 年第一季和第二季分兩次等額支付，每股 0.05 美元，並且將在我們的季度分配之上基本分配和補充分配，目前總計每股0.70 美元。

From a forward-looking perspective, we continue to be optimistic about the growth in the private credit sector which provide significant tailwinds for our industry. In general, our portfolio companies have been adjusting well to the higher interest rate environment as we have not seen significant increases in credit stress or defaults.

從前瞻性的角度來看，我們繼續對私人信貸行業的成長持樂觀態度，這為我們的行業提供了重要的推動力。總的來說，我們的投資組合公司一直在適應較高的利率環境，因為我們沒有看到信貸壓力或違約顯著增加。

FSK continues to generate strong earnings and has ample liquidity to take advantage of new, high-quality investments as well as to support our existing portfolio companies through add-on investments.

FSK 繼續產生強勁的收益，並擁有充足的流動性，可以利用新的高品質投資，並透過附加投資來支持我們現有的投資組合公司。

And with that, I'll turn the call over to Dan and the team to provide additional color on the market and the quarter.

接下來，我會將電話轉給 Dan 和團隊，以提供有關市場和本季的更多資訊。

Thank you, Michael. In the wake of continued inflationary pressure and higher for longer interest rates, private credit continues to be an attractive asset class due to its directly negotiated transactions, predominantly floating rate interest structures and significant issuer diversification. As a result of these and other positive attributes, private credit is continuing to become an increasing allocation for institutional investors.

謝謝你，麥可。在持續的通膨壓力和長期利率上升的情況下，私人信貸由於其直接協商交易、主要是浮動利率利率結構以及發行人的多元化，仍然是一種有吸引力的資產類別。由於這些和其他積極屬性，私人信貸繼續成為機構投資者越來越多的配置。

As we mentioned on last quarter's call, we have seen an increase in deal flow as M&A activity continues to ramp. In addition, there are recent signs that the syndicated markets are beginning to stabilize, with activity picking up in that part of the market as well. At the same time, we are seeing some pressure on spreads in the upper end of the middle market as spreads have tightened by 25 to 50 basis points during the quarter. With private equity funds holding more than $2 trillion of dry powder, we continue to believe sponsors will utilize private credit solutions to finance transactions.

正如我們在上季度的電話會議中提到的，隨著併購活動的持續增加，我們看到交易量增加。此外，最近有跡象顯示銀團市場開始穩定，該部分市場的活動也有所回升。同時，我們看到中階市場高端的利差面臨一些壓力，本季利差收窄了 25 至 50 個基點。由於私募股權基金持有超過 2 兆美元的乾粉，我們仍然相信贊助商將利用私人信貸解決方案為交易融資。

Turning to investment activity. During the third quarter, we originated $504 million of new investments. Over 65% of our investments were focused on add-on financings to existing portfolio companies and long-term KKR relationships. Our new investments combined with $386 million of net sales and repayments, when factoring in sales to our joint venture equated to a net portfolio increase of $118 million.

轉向投資活動。第三季度，我們發起了 5.04 億美元的新投資。我們超過 65% 的投資集中在現有投資組合公司的額外融資和長期 KKR 關係。我們的新投資加上 3.86 億美元的淨銷售額和還款，如果考慮到對我們合資企業的銷售額，投資組合淨增加 1.18 億美元。

In terms of recent deployment opportunities, 1 new investment of note is a partnership with PayPal. KKR Credit has agreed to purchase approximately EUR 40 billion of PayPal's consumer receivables originated in Europe. FSK has committed approximately EUR 80 million towards the transaction. Having the ability to work exclusively with a strategic partner like PayPal is a testament to the strength and maturity of KKR Credit's asset-based finance business.

就最近的部署機會而言，值得注意的一項新投資是與 PayPal 的合作夥伴關係。 KKR Credit 已同意購買 PayPal 源自歐洲的約 400 億歐元消費者應收帳款。 FSK 已承諾為此交易提供約 8,000 萬歐元。能夠與像 PayPal 這樣的策略合作夥伴獨家合作，證明了 KKR Credit 資產金融業務的實力和成熟度。

In terms of interest coverage, at the end of the third quarter, our portfolio companies had a median interest coverage of 1.5x. For clarity, this calculation uses base rates as of June 30, 2023, to align with portfolio company financials.

就利息覆蓋率而言，截至第三季末，我們投資組合公司的利息覆蓋率中位數為1.5倍。為清楚起見，此計算使用截至 2023 年 6 月 30 日的基本利率，以與投資組合公司的財務狀況保持一致。

While the higher rate environment has impacted certain companies, overall credit performance continues to be stronger than many market observers anticipated. As companies in the larger end of the private credit market have demonstrated their ability to pass along price increases while simultaneously navigating their labor and other input costs.

儘管利率上升的環境對某些公司產生了影響，但整體信貸表現仍然強於許多市場觀察家的預期。私人信貸市場較大端的公司已經證明了它們有能力轉嫁價格上漲，同時控制勞動力和其他投入成本。

Despite the challenging macro environment, we continue to see portfolio company revenue and earnings growth. We remain focused on large, high-quality borrowers with strong operating margins and deep equity cushions. The weighted average EBITDA of our portfolio companies was $212 million as of September 30, 2023. Additionally, our portfolio companies reported a weighted average year-over-year EBITDA growth rate of approximately 6% across companies in which we have invested in since April of 2018.

儘管宏觀環境充滿挑戰，我們仍然看到投資組合公司的收入和獲利成長。我們仍專注於擁有強勁營業利潤和深厚股本緩衝的大型優質借款人。截至2023 年9 月30 日，我們投資組合公司的加權平均EBITDA 為2.12 億美元。此外，我們的投資組合公司報告稱，自2023 年4 月以來我們投資的公司的加權平均EBITDA 成長率約為6 %。2018.

And with that, I'll turn the call over to Brian to discuss our portfolio in more detail.

接下來，我會將電話轉給布萊恩，更詳細地討論我們的投資組合。

Thanks, Dan. As of September 30, 2023, our investment portfolio had a fair value of $14.7 billion, consisting of 200 portfolio companies, this compares to a fair value of $14.8 billion and 195 portfolio companies as of June 30, 2023.

謝謝，丹。截至2023 年9 月30 日，我們的投資組合公允價值為147 億美元，由200 家投資組合公司組成，而截至2023 年6 月30 日，我們的投資組合公允價值為148 億美元，由195 家投資組合公司組成。

At the end of the third quarter, our 10 largest portfolio companies represented approximately 19.5% of the fair value of our portfolio, which is consistent with prior quarters. We continue to focus on senior secured investments as our portfolio consisted of approximately 60% first lien loans and 68% senior secured debts as of September 30.

截至第三季末，我們最大的 10 家投資組合公司約占我們投資組合公允價值的 19.5%，這與前幾季一致。我們繼續專注於優先擔保投資，因為截至 9 月 30 日，我們的投資組合由約 60% 的第一留置權貸款和 68% 的優先擔保債務組成。

In addition, our joint venture represented 9.6% of the fair value of our portfolio. As a result, when investors consider our entire portfolio, looking through to the investments in our joint venture then first lien loans total approximately 68% of our total portfolio and senior secured investments total approximately 76% of our portfolio as of September 30.

此外，我們的合資企業占我們投資組合公允價值的9.6%。因此，當投資者考慮我們的整個投資組合時，截至9 月30 日，首先查看我們合資企業的投資，然後第一留置權貸款總計約占我們投資組合總額的68%，高級擔保投資總計約佔我們投資組合的76%。

The weighted average yield on accruing debt investments was 12.2% as of September 30, 2023, compared to 12.1% as of June 30. As a reminder, the calculation of weighted average yield is adjusted to exclude the accretion associated with the merger with FSKR. Similar to recent quarters, the increase in our weighted average yield during the third quarter was primarily associated with the continued rise in base rates, including the effects of our investment activity during the third quarter as of September 30, 2023, approximately 86% of our total investment portfolio is comprised of investments originated either by KKR Credit or the FS/KKR Advisor.

截至2023 年9 月30 日，應計債務投資的加權平均收益率為12.2%，而截至6 月30 日為12.1%。需要提醒的是，加權平均收益率的計算進行了調整，以排除與FSKR合併相關的增量。與最近幾季類似，我們第三季加權平均收益率的成長主要與基準利率的持續上升有關，包括截至2023 年9 月30 日第三季我們投資活動的影響，約占我們投資活動的86 %。總投資組合由 KKR Credit 或 FS/KKR Advisor 發起的投資組成。

During the third quarter, excluding the impact of merger accounting, we experienced net portfolio appreciation on investments of approximately $23 million. During the quarter, we placed 1 debt investment on nonaccrual. The company is named Bowery Farming, and it is 1 of the largest vertical farming businesses in the U.S. Bowery has smaller position in our portfolio as the first lien loan has a cost basis of $52 million and a fair value of $13 million as of September 30.

在第三季度，排除合併會計的影響，我們的投資組合淨增值約為 2,300 萬美元。本季度，我們將 1 筆債務投資置於非應計利息上。該公司名為Bowery Farming，是美國最大的垂直農業企業之一。Bowery 在我們的投資組合中的地位較小，因為截至9 月30 日，第一筆留置權貸款的成本基礎為5200 萬美元，公允價值1300 萬美元。

We also received a $15 million pay down at par during the quarter. As of September 30, 2023, nonaccruals represented 4.8% of our portfolio on a cost basis and 2.4% on a fair value basis compared to 4.8% on a cost basis and 2.5% on a fair value basis as of June 30, 2023. We believe it is helpful to provide the market with information based on the assets originated by KKR Credit.

本季我們還收到了 1500 萬美元的按面付款。截至2023 年9 月30 日，非應計費用以成本計算占我們投資組合的4.8%，以公允價值計算佔2.4%，而截至2023 年6 月30 日，以成本計算的比例為4.8%，以公允價值計算為2.5%。相信向市場提供基於 KKR Credit 起源的資產的資訊是有幫助的。

As of the end of the third quarter, nonaccruals related to the 86% of our total portfolio, which has been originated by KKR Credit and the FS/KKR Advisor were 2.3% on a cost basis and 0.6% on a fair value basis. Additionally, since the start of the FS/KKR Advisor almost 6 years ago, the advisor has originated over $22 billion of investments and has experienced an annualized cost basis nonaccrual rates of less than 1%.

截至第三季末，與我們總投資組合 86%（由 KKR Credit 和 FS/KKR Advisor 發起）相關的非應計費用以成本計算為 2.3%，以公允價值計算為 0.6%。此外，自 FS/KKR Advisor 近 6 年前啟動以來，該顧問已發起超過 220 億美元的投資，年化成本基礎非應計利率低於 1%。

And with that, I'll turn the call over to Steven to go through our financial results.

接下來，我會將電話轉給史蒂文，讓他查看我們的財務表現。

Thanks, Brian. Our total investment income increased by $3 million quarter-over-quarter, to $465 million. The primary components of our total investment income during the quarter were as follows: Total interest income was $374 million, a decrease of $2 million quarter-over-quarter primarily driven by the $500 million in asset sales we mentioned last quarter.

謝謝，布萊恩。我們的總投資收入季增了 300 萬美元，達到 4.65 億美元。本季我們總投資收入的主要組成部分如下：總利息收入為 3.74 億美元，環比減少 200 萬美元，主要是由於我們上季度提到的 5 億美元資產出售所致。

Dividend and fee income totaled $91 million, an increase of $5 million quarter-over-quarter as our joint venture experienced approximately $3 million in onetime fees and dividends. Our total dividend and fee income during the quarter is summarized as follows: $58 million of recurring dividend income from our joint venture, other dividends from various portfolio companies totaling approximately $21 million during the quarter and fee income totaling approximately $12 million during the quarter.

股息和費用收入總計 9,100 萬美元，環比增加 500 萬美元，因為我們的合資企業經歷了約 300 萬美元的一次性費用和股息。我們本季的股利和費用收入總額總結如下：來自合資企業的經常性股利收入為5,800 萬美元，來自各投資組合公司的其他股利本季總計約2,100 萬美元，本季費用收入總計約1,200 萬美元。

Our interest expense totaled $117 million, a decrease of $1 million quarter-over-quarter due to the decline in net debt to equity from 113% at June 30 to 110% at September 30. Our weighted average cost of debt was 5.3% as of September 30. Management fees totaled $56 million and incentive fees totaled $47 million, both unchanged quarter-over-quarter. Other expenses totaled $11 million during the third quarter, a decrease of $1 million.

我們的利息支出總計1.17 億美元，環比減少100 萬美元，原因是淨債務股本比率從6 月30 日的113% 下降至9 月30 日的110%。 截至2019 年，我們的加權平均債務成本為5.3% 9 月 30 日。管理費總計 5,600 萬美元，獎勵費總計 4,700 萬美元，均較上季不變。第三季其他費用總計 1,100 萬美元，減少 100 萬美元。

The detailed bridge in our net asset value per share on a quarter-over-quarter basis is as follows: Our ending 2Q 2023 net asset value per share of $24.69 was increased by GAAP net investment income of $0.84 per share and was increased by $0.11 per share due to an increase in the overall value of our investment portfolio. Our net asset value per share was reduced by our $0.70 per share quarterly distribution and the $0.05 per share special distribution. The sum of these activities results in our September 30, 2023, net asset value per share of $24.89.

我們的每股淨資產價值環比的詳細情況如下： 2023 年第二季末每股淨資產價值為 24.69 美元，因 GAAP 淨投資收益每股 0.84 美元而增加，每股淨投資收益增加了 0.11 美元由於我們投資組合整體價值的增加而分享。我們的每股淨值因每股 0.70 美元的季度分配和每股 0.05 美元的特別分配而減少。這些活動的總和導致我們截至 2023 年 9 月 30 日的每股資產淨值為 24.89 美元。

From a forward-looking guidance perspective, we expect fourth quarter 2023 GAAP net investment income to approximate $0.74 per share, and we expect our adjusted net investment income to approximate $0.77 per share.

從前瞻性指引的角度來看，我們預計 2023 年第四季 GAAP 淨投資收益約為每股 0.74 美元，我們預計調整後的淨投資收益約為每股 0.77 美元。

Detailed fourth quarter guidance is as follows: Our recurring interest income on a GAAP basis is expected to approximate $377 million. We expect recurring dividend income associated with our joint venture to approximate $53 million. We expect other fee and dividend income to approximate $23 million as we expect normal course asset-based finance dividends to be incrementally lower in the fourth quarter.

第四季的詳細指引如下： 根據 GAAP 計算，我們的經常性利息收入預計約為 3.77 億美元。我們預計與合資企業相關的經常性股息收入約為 5300 萬美元。我們預計其他費用和股息收入約為 2,300 萬美元，因為我們預計第四季度基於正常資產的財務股息將逐步降低。

From an expense standpoint, we expect our management fees to approximate $56 million. We expect incentive fees to approximate $42 million. We expect our interest expense to approximate $117 million, and we expect our other G&A expenses to approximate $10 million.

從費用角度來看，我們預計管理費約為 5,600 萬美元。我們預計獎勵費用約為 4200 萬美元。我們預計利息支出約為 1.17 億美元，其他一般管理費用約為 1,000 萬美元。

During the fourth quarter, we expect our excise taxes will approximate $22 million. We expect the net effect of excise taxes to be partially offset by the accretion of our investments due to merger accounting, which is why our projected fourth quarter GAAP net investment income is $0.04 per share below our anticipated adjusted net investment income.

第四季度，我們預計消費稅將約為 2,200 萬美元。我們預計消費稅的淨影響將被合併會計導致的投資增加部分抵消，這就是為什麼我們預計第四季度 GAAP 淨投資收益比我們預期調整後淨投資收益每股低 0.04 美元。

Our gross and net debt to equity levels were 115% and 110%, respectively, at September 30, 2023, compared to 118% and 113% at June 30, 2023. At September 30, our available liquidity was $3.6 billion. Approximately 59% of our drawn balance sheet and 42% of our committed balance sheet was comprised of unsecured debt.

截至2023 年9 月30 日，我們的總負債與股本水準分別為115% 與110%，而2023 年6 月30 日為118% 與113%。截至9 月30 日，我們可用的流動資金為36億美元。我們提取的資產負債表中約 59% 的資產負債表和承諾資產負債表中約 42% 的資產由無擔保債務組成。

In October, we further enhanced our liquidity and debt maturity profile by closing an amendment to our senior secured revolving credit facility. The amendment provides for, among other things, an increase in total commitments to $4.67 billion and an extension of the maturity date to the fourth quarter of 2028. We were very pleased to complete this amendment as it is reflective both of the strength of the FSK platform as well as the long-term relationships we are fortunate to maintain with the investment community.

十月份，我們透過完成對優先擔保循環信貸安排的修訂，進一步增強了我們的流動性和債務到期狀況。除此之外，該修正案規定將承諾總額增加至 46.7 億美元，並將到期日延長至 2028 年第四季。我們很高興完成這項修正案，因為它反映了 FSK 的實力平台以及我們有幸與投資界維持的長期關係。

And with that, I'll turn the call back to Michael for a few closing remarks before we open the call for questions.

接下來，在我們開始提問之前，我會把電話轉回邁克爾，讓他做一些總結發言。

Thanks, Steven. In closing, we are pleased with our third quarter results and our year-to-date performance as our net asset value at the end of the third quarter was flat compared to the start of the year. Our adjusted net investment income in the quarter exceeded both our public guidance as well as our total dividend. Our underlying portfolio companies are performing well from a credit perspective, and we deployed capital into compelling new transactions.

謝謝，史蒂文。最後，我們對第三季業績和年初至今的業績感到滿意，因為第三季末的資產淨值與年初持平。我們本季調整後的淨投資收入超過了我們的公開指導以及總股息。從信用角度來看，我們的基礎投資組合公司表現良好，我們將資本部署到引人注目的新交易中。

With available liquidity of $3.6 billion and a strong balance sheet, we have ample capital to invest in attractive risk-adjusted opportunities we are seeing in the market. On behalf of the team, we thank you all for joining the call and for your continued support.

憑藉 36 億美元的可用流動性和強勁的資產負債表，我們有充足的資本來投資市場上有吸引力的風險調整機會。我們謹代表團隊感謝大家加入此電話會議並感謝大家的持續支持。

And with that, operator, we'd like to open the call for questions.

接線員，我們現在開始提問。

(Operator Instructions) Our first question comes from John Hecht with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 John Hecht。

One, as you guys talked -- again, I think it's kind of the second time where you talked about the pipeline activity increasing. I'm wondering if you can kind of describe -- I mean, we've heard of, I guess, some increase in M&A activity and maybe some LBO activity.

一，正如你們所說，我認為這是你們第二次談論管道活動增加。我想知道你是否可以描述一下——我的意思是，我想我們聽說過併購活動有所增加，也許還有一些槓桿收購活動。

I'm wondering, can you characterize the kind of sources of the pipeline? And then what's the competition around that pipeline? Is that shifting at all relative to the last 4 to 6 months as well?

我想知道，您能描述一下管道的來源類型嗎？那麼圍繞該管道的競爭是什麼？相對於過去 4 到 6 個月，這種情況是否也發生了變化？

John. I'd put it into a couple of different sort of buckets in terms of the pipeline activity. One of it's just been, we'll call it, sort of live processes, albeit that's probably still not maybe to the level that you would expect in any sort of normalized market, but a certain amount of green shoots there.

約翰。就管道活動而言，我會將其放入幾個不同類型的桶中。其中之一就是，我們稱之為實時流程，儘管這可能還沒有達到您在任何正常化市場中所期望的水平，但那裡已經出現了一定數量的萌芽。

And then some of it has also been, we'll call it, either early reads or companies that we know are kind of gearing up for a sales process as we get further into '24. So my sense is you're going to see the -- and we said this on the last call, it will take, I think, several quarters for us to kind of get through the system where things kind of actually fund. But I think you'll see the majority -- or at least where we're sitting today, the majority of that activity in kind of probably Q2 through Q4 of '24 in terms of additional kind of actual closed and funded deal flow.

然後，其中一些我們稱之為早期讀物，或者我們知道隨著我們進入 24 年，正在為銷售流程做準備的公司。所以我的感覺是，你會看到——我們在上次電話會議上說過，我認為我們需要幾個季度的時間才能完成實際資助的系統。但我認為你會看到大多數——或者至少我們今天坐的位置，大部分活動可能是在 24 年第二季度到第四季度，就額外類型的實際關閉和融資交易流而言。

In terms of competition, I'm assuming that means kind of who's kind of funding the deals. I do think the market is decently competitive right now. I think that's a little bit of the technical, there just hasn't been a lot of deals and people kind of want to do some and stay funded and get to their target leverage or sort of deployment numbers.

就競爭而言，我認為這意味著誰為交易提供資金。我確實認為現在市場競爭相當激烈。我認為這有點技術性，只是還沒有很多交易，人們想做一些並保持資金並達到他們的目標槓桿或部署數量。

But I think the quality of those deals remains very high and having the ability to earn kind of 12-plus percent on them for kind of good, large companies, 1L, sort of risk with good sized equity checks. We still feel quite constructive on the market opportunity.

但我認為這些交易的品質仍然非常高，對於那些優秀的大公司來說，有能力從這些交易中賺取 12% 以上的利潤，1L 的風險，以及規模較大的股權支票。我們對市場機會仍然很有建設性。

Okay. That's helpful. And then second question is maybe just could you give us an update on the asset-based financed pocket or pool and as well as the Credit Opportunities Partners. I just -- I know particularly in the asset-based finance, you've been particularly busy this year. I wonder, is that activity persisting?

好的。這很有幫助。第二個問題是，您能否向我們提供有關基於資產的融資口袋或資金池以及信貸機會合作夥伴的最新資訊。我只是──我知道，特別是在以資產為基礎的金融領域，你們今年特別忙。我想知道，這種活動是否持續存在？

Yes. I mean so on the asset-based finance side, it has been a very kind of busy time for us there. I think our platform is meaningfully build out with over 50 people dedicated to the space. We've got a fair amount of AUM dedicated to that space and the ability to kind of play up and down the capital structure, which I think is a real nice competitive advantage for us.

是的。我的意思是，在以資產為基礎的金融方面，對我們來說這是一段非常忙碌的時期。我認為我們的平台是有意義的，有超過 50 名致力於該領域的人員。我們有相當數量的資產管理規模專門用於該領域，並且有能力上下調整資本結構，我認為這對我們來說是一個真正很好的競爭優勢。

I think we always think about that market as having a lot of white space. We estimated sort of $5 trillion today, it's sort of on its way to $7 trillion. So that's sort of quite positive. But what's been going on with the regional banks has been a real sort of tailwind to that, either in allowing us to acquire asset portfolios or essentially fill the void from where they've taken a step back.

我認為我們總是認為這個市場有很多空白。我們今天估計約為 5 兆美元，即將達到 7 兆美元。所以這是非常積極的。但地區性銀行所發生的事情確實是一種順風，要麼讓我們能夠收購資產組合，要麼從本質上填補他們後退一步的空白。

So I think we've been quite happy with what we've seen there. I think on the joint venture, I think the team has done a good job of -- in seeing that sort of continue to grow in terms of assets. I think we've got quite a strong liability sort of structure there. I think we like the returns that is still being sort of put from that or sort of off of that joint venture. And it just has real size and my number might not be perfect here. But we'd be, I think, maybe the seventh largest BDC if we were on a stand-alone basis, just sort of our joint venture. So I think we like the size and scale we have there as well.

所以我認為我們對在那裡所看到的感到非常滿意。我認為在合資企業方面，我認為團隊做得很好——看到了資產的持續成長。我認為我們在那裡有相當強大的責任結構。我認為我們喜歡從該合資企業中獲得的回報。它只有實際尺寸，我的數字可能不完美。但我認為，如果我們是獨立的，只是我們的合資企業，我們可能會成為第七大 BDC。所以我認為我們也喜歡那裡的規模和規模。

Our next question comes from Casey Alexander with Compass Point Research & Trading.

我們的下一個問題來自 Compass Point Research & Trading 的 Casey Alexander。

Yes. Just 1 question, maybe 2. How to position Solera that was picking in the second quarter and was supposed to pick for 2 quarters, we've now moved into the fourth quarter. Has that 1 reverted now back to cash pay? And how is that company doing?

是的。只有 1 個問題，也許是 2 個問題。如何定位在第二節選秀並應該選秀 2 個季度的索萊拉，我們現在已經進入第四節了。 1 現在恢復現金支付了嗎？那家公司做得怎麼樣？

Casey, the position has reverted back to cash pay. It did that at the end of Q3, but you won't see the impact kind of really, we'll call it, come through the numbers. So that's why the pick income would have been sort of elevated in the quarter as it was in the second quarter.

凱西，該職位已恢復現金支付。它在第三季末做到了這一點，但你不會真正看到影響，我們稱之為，透過數字。這就是為什麼本季的選秀收入會像第二季一樣上升。

You will see that -- it'll move entirely to sort of cash pay and that was I think, almost 30% or odd of the sort of total sort of pick amount and the company performance is strong in our mind.

你會看到——它將完全轉向現金支付，我認為，幾乎佔總選秀金額的 30% 或奇數，而且我們認為公司業績強勁。

Yes, okay. Good, great. Secondly, are you willing to add some on-balance sheet exposure? I mean most of the exposure that you've added over the last several quarters has all gone to the JV. The JV is now at about 10%, and maybe you addressed this a little bit, but where can you grow the overall portfolio? Do you still have to go to the JV? Or can you add some to the on-balance sheet exposure?

是的，好的。好，太好了。其次，您是否願意增加一些表內風險敞口？我的意思是，過去幾季您增加的大部分風險都流向了合資企業。合資企業現在約為 10%，也許您稍微解決了這個問題，但您可以在哪裡擴展整體投資組合？還得去JV嗎？或者您可以在資產負債表內增加一些風險敞口嗎？

No. I think you should expect to see the on balance sheet number sort of grow as well. Just I think we did add $289 million to the joint venture this quarter. I don't think anything went to the joint venture sort of last quarter.

不，我認為您應該期望看到資產負債表上的數字也會有所增長。我認為本季我們確實為合資企業增加了 2.89 億美元。我認為上個季度沒有任何東西流向合資企業。

I think we're kind of well inside our target leverage number at FSK, I think we're pretty happy with what we see in terms of dry powder in the entity, including the revolver sort of extended. So I think you should expect to see, while still with inside that sort of target range, us kind of continuing to add assets on FSK's balance sheet as we sort of move forward.

我認為我們已經很好地達到了 FSK 的目標槓桿值，我認為我們對實體中的乾粉（包括左輪手槍類型的擴展）感到非常滿意。因此，我認為您應該期望看到，儘管仍處於這種目標範圍內，但隨著我們的前進，我們將繼續在 FSK 的資產負債表上增加資產。

Our next question comes from Kenneth Lee with RBC Capital Markets.

我們的下一個問題來自 RBC 資本市場的 Kenneth Lee。

In terms of the upper-middle market segment, wondering if you could just talk a little bit more about what you're seeing in terms of trends around covenants or terms for some of the more recent investments and whether you're seeing any change there?

就中高端市場而言，想知道您是否可以多談談您在契約趨勢或一些最近投資的條款方面所看到的情況，以及您是否看到了任何變化？

I think that sort of term, upper end of the middle market, has a pretty sort of broad definition, right? I think we're sort of talking to folks, that's probably more in the $100 million to $150 million of EBITDA. But I think in recent sort of quarters, it's even gone sort of beyond that as the syndicated loan market has been shut and private debt has really been, I think, the only game in town. I do think we started the year as an extremely, we'll call it, lender-friendly environment, I think we've probably come off that a bit and we mentioned about seeing a certain amount of spread compression.

我認為中端市場的高端這個術語有一個相當廣泛的定義，對嗎？我認為我們正在與人們交談，這可能更多地涉及 1 億至 1.5 億美元的 EBITDA。但我認為在最近幾個季度，情況甚至超出了這個範圍，因為銀團貸款市場已經關閉，而且我認為私人債務確實是城裡唯一的遊戲。我確實認為，今年伊始，我們的環境非常友好，我們稱之為貸款人友好型環境，我認為我們可能已經擺脫了這一點，我們提到了一定程度的利差壓縮。

That said, I think more and more companies continue to access private debt as a financing source, I think especially doing that in times of volatility and they're looking for certainty of sort of financing. But I think just a lot of folks are being sort of drawn to this market versus the broadly syndicated market.

也就是說，我認為越來越多的公司繼續將私人債務作為融資來源，我認為尤其是在波動時期這樣做，他們正在尋找某種融資的確定性。但我認為，與廣泛的銀團市場相比，很多人都被這個市場所吸引。

The broadly syndicated market is never going to go away. I think private debt just become kind of an equal sort of peer there. So I think we're still seeing very good structures. I think the market has had a good amount of discipline as it relates to some of the documentation, weaknesses that we may have seen in the broadly sort of syndicated market, but just a little bit tighter on pricing, as we mentioned in our prepared remarks.

廣泛的聯合市場永遠不會消失。我認為私人債務只是成為同等的同類債務。所以我認為我們仍然看到非常好的結構。我認為市場有很強的紀律性，因為它與我們在廣泛的銀團市場中可能看到的一些文件和弱點有關，但正如我們在準備好的評論中提到的那樣，在定價方面有點嚴格。

Got you. That's very helpful there. And then 1 follow-up, if I may. In terms of the supplemental distributions, wondering if you could just share some initial thoughts on visibility, confidence and the potential line of sight around supplementals for next year?

明白你了。這非常有幫助。如果可以的話，然後進行 1 次後續行動。就補充發行版而言，想知道您是否可以分享一些關於明年補充發行版的可見性、信心和潛在視線的初步想法？

Yes, and I'll start to this, and Steven Lilly might want to add to it. Obviously, we've had the sort of base in the supplemental, and then we had the $0.15 of special for 2023. I think that, that is a good story in our mind. We've told the market we were going to pay sort of additional earnings as they were sort of earned by sort of FSK. I think that will put roughly at $2.95 of sort of total dividends paid for the year, which I think is quite attractive for our investors and obviously a big sort of focus for ours.

是的，我將從這個開始，史蒂文·莉莉（Steven Lilly）可能想補充。顯然，我們在補充品中已經有了這樣的基礎，然後我們為 2023 年提供了 0.15 美元的特價。我認為，這是我們心目中的一個好故事。我們已經告訴市場，我們將支付一些額外的收入，因為它們是透過 FSK 賺取的。我認為今年支付的股息總額約為 2.95 美元，我認為這對我們的投資者來說相當有吸引力，顯然也是我們投資者關注的重點。

We feel confident to extend that special. That's the $0.10 that was mentioned in the prepared remarks. I think by definition, that means we feel confident about the supplemental as well kind of in the near term. And I think you should expect the base and supplemental to remain in the coming quarters.

我們有信心延續這項特別活動。這就是準備好的評論中提到的 0.10 美元。我認為根據定義，這意味著我們對短期內的補充也充滿信心。我認為您應該預期基礎和補充將在未來幾季保留。

Our next question comes from Ryan Lynch with KBW.

我們的下一個問題來自 KBW 的 Ryan Lynch。

I had several questions on kind of the transaction with the PayPal consumer loans. I know it's kind of a small transaction, but it's definitely interesting. So I guess, first off, how are those loans being placed on your balance sheet? I saw a small equity investment of $2 million, but are those loans going to be directly placed on your balance sheet? Or are they going to be in some sort of like SPV entity?

我對 PayPal 消費貸款交易的類型有幾個疑問。我知道這是一筆小交易，但絕對很有趣。所以我想，首先，這些貸款是如何計入你的資產負債表的？我看到一筆 200 萬美元的小額股權投資，但這些貸款會直接計入您的資產負債表嗎？或者他們會成為某種類似 SPV 的實體嗎？

Yes. And Ryan, happy to talk about that. I mean, I don't think it was actually a small investment, considering we're going to buy EUR 40 billion over the coming years. Obviously, this was a strategic transaction for both us and for PayPal. And there's a fair amount of, I think, public sort of statements out there that we can kind of point to.

是的。瑞安很高興談論這個。我的意思是，考慮到我們將在未來幾年購買 400 億歐元，我認為這實際上不是一筆小投資。顯然，這對我們和 PayPal 來說都是一項策略交易。我認為，我們可以指出相當多的公開聲明。

I think that said, the receivables are short, which is why that $40 billion (sic) [EUR 40 billion] number does seem high. The book will probably turn 6x per year. The EUR 80 million that's kind of mentioned in the script was FSK share of the overall sort of deal and the deal is the receivables are essentially going into an SPV, there's certain banks providing financing to that SPV and then FSK and the other KKR credit accounts are providing the remainder of the capital. That $2 million piece was just the initial funding, but you should expect it to ramp fully over the coming quarters.

我認為，話雖如此，應收帳款很短，這就是為什麼 400 億美元（原文如此）[400 億歐元]的數字看起來確實很高。這本書可能每年翻六倍。劇本中提到的8000 萬歐元是FSK 在整個交易中所佔的份額，該交易的應收帳款本質上進入了SPV，某些銀行向該SPV 提供融資，然後向FSK 和其他KKR 信用帳戶提供融資正在提供剩餘的資本。這 200 萬美元只是初始資金，但你應該預期它會在未來幾季全面增加。

Okay. And then -- so the $80 million that's going to FSK, that was kind of I was talking about, the smallish. Is that expected to grow over time? Or how do you kind of view your overall exposure to these loans? And maybe it's too early to tell.

好的。然後，我所說的 8000 萬美元將投入 FSK，規模較小。隨著時間的推移，這一數字預計會增長嗎？或者您如何看待這些貸款的整體風險？也許現在下結論還為時過早。

And then I guess also, what should we expect with sort of the -- it sounds like it turns over a lot, which would make sense. What are sort of the return expectation for these types of loans?

然後我也想，我們應該期待什麼——聽起來它翻了很多，這是有道理的。這些類型的貸款的回報預期是怎樣的？

Yes. I mean I think you should expect that number to be sort of the target at least for the near sort of medium term. It might very well sort of grow from there as the program continues to take off. I think like most things in our asset-based finance bucket, we view them as extremely attractive from, we'll call it, a downside protection basis, we think because these are either secured receivables or short-duration receivables, we have a great amount of confidence in the repayment profile. But that we're generally trying to do deals inside this strategy at kind of, let's call it, mid-teens plus, right?

是的。我的意思是，我認為你應該預期這個數字至少是近期中期的目標。隨著該計劃的不斷發展，它很可能會從那裡開始增長。我認為，就像我們基於資產的金融桶中的大多數東西一樣，我們認為它們極具吸引力，我們稱之為下行保護基礎，我們認為因為這些要么是有擔保的應收賬款，要么是短期應收帳款，所以我們有很大的優勢對還款狀況的信心。但我們通常會嘗試在這種策略中進行交易，我們稱之為，十幾歲以上，對嗎？

So view it as great diversification to a corporate credit book, well protected from when we think about sort of the downside and effectively return enhancing versus just regular way direct lending.

因此，將其視為企業信用帳簿的巨大多元化，當我們考慮某種負面影響時，它可以得到很好的保護，並且與常規直接貸款相比，可以有效提高回報。

Okay. And then 1 last 1 on it. Are these sort of loans that were previously going to -- I know it's Europe, so maybe it's not relevant, but I'm thinking you mentioned earlier that kind of the slowdown of regional banks sort of lending. Are these the types of loans that would fit into like regional bank, these consumer financing type loans that this is the reason that KKR is kind of stepping in to fill that void or where were these loans have previously been going...

好的。然後1最後1就可以了。我知道這是歐洲，所以可能不相關，但我想你之前提到過區域銀行貸款放緩。這些貸款類型是否適合區域銀行、這些消費者融資類型貸款，這就是 KKR 介入填補這一空白的原因，或者這些貸款以前流向何處...

Yes. That wouldn't have been the case for a transaction like this. I mean you don't have the same regional banking model in Europe that you have in the U.S. So that sort of concept is generally not the same. This was talked about a bunch on sort of the PayPal side. This was all funded on PayPal's balance sheet before this deal.

是的。對於這樣的交易，情況就不會如此。我的意思是，歐洲的區域銀行模式與美國不同，所以這種概念通常是不同的。 PayPal 方面對此進行了許多討論。在這筆交易之前，這筆資金全部由 PayPal 的資產負債表提供。

Okay. Got you. And then I just had 1 question outside of the PayPal discussion. You talked about a lot of companies and deals sort of gearing up now that will take a while to sort of incubate and could come to fruition maybe in the second quarter and beyond in 2024.

好的。明白你了。然後我在 PayPal 討論之外提出了 1 個問題。您談到許多公司和交易現在正在準備中，需要一段時間才能孵化，可能會在第二季甚至 2024 年以後實現。

I'm just curious, what sort of do you think assumptions that these companies are making in order for these deals to transact? And maybe said it differently, are these deals dependent on sort of rate cuts or stabilizing base rates? Or is the current environment if it just stays steady with rates stay where they are, the environment sort of stays stable, do you think that that's good enough to have these deals sort of come to fruition? Just from a high level, I know every deal is specific, but just kind of high level.

我只是很好奇，您認為這些公司為了進行這些交易而做了什麼樣的假設？也許換句話說，這些交易是否取決於降息或穩定基本利率？或者說，如果當前環境保持穩定，利率保持不變，環境保持穩定，您認為這足以讓這些交易取得成果嗎？就高水準而言，我知道每筆交易都是具體的，但只是高水準。

No, it's a fair question. I think just sort of stable will be, we'll call it, enough of a catalyst or market conditions to allow that to get done. I think you've had valuation mismatches for some time now between kind of the seller and sort of the buyer. I think those have, we'll call it started to narrow. I think, at least sort of our view is we're in an environment of higher rates for longer.

不，這是一個公平的問題。我認為，我們稱之為穩定，足以成為實現這一目標的催化劑或市場條件。我認為賣家和買家之間的估值不匹配已經有一段時間了。我認為這些已經，我們稱之為開始縮小。我認為，至少我們的觀點是，我們處於更高利率的環境中的時間更長。

And I don't think the inflation story is done, but I think it's become, we'll call it, much more manageable and sort of under control. And I do think you have the other sort of point out there. In the private equity community, I think there is a growing amount of pressure for realizations and money to be returned to LPs. And then there's also a lot of dry powder sort of sitting on the sidelines, right?

我不認為通貨膨脹的故事已經結束，但我認為它已經變得，我們稱之為，更容易管理，並且在某種程度上受到控制。我確實認為你還有其他觀點。在私募股權界，我認為變現和資金回饋給有限合夥人的壓力越來越大。然後還有很多乾粉坐在場邊，對嗎？

So that's why I think if we could just stay in a -- we'll call it a stable type kind of macro, which obviously is a lot going on, so maybe that will be sort of hard. But I think we stay there, that will be the catalyst to get that done. We'll get these deals come into market as we get through '24.

所以這就是為什麼我認為如果我們可以留在一個 - 我們稱之為穩定類型的宏，這顯然會發生很多事情，所以也許這會有點困難。但我認為我們會留在那裡，這將成為實現這一目標的催化劑。我們將在 24 年後將這些交易推向市場。

Our next question comes from Melissa Wedel with JPMorgan.

我們的下一個問題來自摩根大通的 Melissa Wedel。

I was hoping to follow up on a couple of the comments that were made, I believe, during the prepared remarks. One, speaking to the strength of the opportunity set in asset-based finance. But then I think Steven also mentioned expecting lower asset-based finance dividend income in 4Q. I was hoping we could just dig into that a little bit.

我相信，我希望跟進在準備好的發言中提出的一些評論。第一，談到資產融資機會的強度。但後來我認為史蒂文也提到預計第四季資產型金融股利收入將會下降。我希望我們能稍微深入研究一下。

Yes. It's a good and fair question. I would probably separate the 2 just for 1 second. I think the market opportunity or the investing opportunity is quite strong, it's systematic that we believe a lot in and this place that we've been kind of very sort of, we'll call it, focused on.

是的。這是一個很好且公平的問題。我可能會把兩者分開一秒鐘。我認為市場機會或投資機會非常強大，我們非常相信它是系統性的，我們一直非常關注這個地方，我們稱之為重點。

I think each of the deals is a little bit different. Sometimes the deals when deployed have to get to scale before they can start to pay a dividend. So you can have a certain, we'll call it, sort of timing mismatch. And then there's a handful of deals that we are looking to, we'll call it, do certain positive things on the liability or sort of financing side, which will kind of restart that process where dividends might be slower. But if I'd think about it more in terms of a timing mismatch that a permanent sort of point on the dividend side.

我認為每筆交易都略有不同。有時，部署後的交易必須先擴大規模，然後才能開始支付股息。所以你可能會遇到某種我們稱之為時間不匹配的情況。然後，我們正在尋求一些交易，我們稱之為，在負債或融資方面做某些積極的事情，這將在某種程度上重新啟動股息可能會放緩的過程。但如果我更多地從時間不匹配的角度來考慮，而不是股息方面的永久點。

Got it. That's helpful. I was also hoping we could touch on 1 portfolio company. I believe Gracent was on the nonaccrual list previously. It looks like it was removed and marked up back to par in 3Q. I was hoping we could just touch on that. Was that a restructuring? Do they -- get current. Could you give us some detail there?

知道了。這很有幫助。我還希望我們能夠接觸 1 家投資組合公司。我相信 Gracent 之前就已經在非應計清單上。看起來它已被刪除並在第三季度恢復到標準水平。我希望我們能談談這一點。那是重組嗎？他們是否了解最新情況？您能給我們一些細節嗎？

Yes. I mean it's been probably a multipronged restructuring over the last probably 24 months and Brian might want to sort of add to this. But I think we've reached what we call the next phase of that. This was a legacy advisor position that had sort of a meaningful amount of challenges. The business has kind of shrunk sort of materially. And I think there was some additional sort of capital put into it as it relates to this quarter as well, which kind of triggered it sort of going off that nonaccrual list, but it's a pretty small position at this point.

是的。我的意思是，在過去的 24 個月裡，這可能是多管齊下的重組，布萊恩可能想對此進行一些補充。但我認為我們已經到達了我們所說的下一階段。這是一個傳統的顧問職位，面臨相當多的挑戰。該業務已大幅萎縮。我認為還有一些額外的資本投入其中，因為它也與本季相關，這觸發了它脫離非應計清單，但目前它的部位相當小。

Our next question comes from Robert Dodd with Raymond James.

我們的下一個問題來自羅伯特·多德和雷蒙德·詹姆斯。

Going back to the ABS, the dividend income for Q4. Obviously, I mean Toorak or whatever the spreads call it these days. The dividend went down this quarter. Is any of the relatively lower, still very healthy, number of dividends from the asset-backed finance side connected to the real estate market, we can going obviously have exposure indirectly there. Or is there something else just something normally seasonal in Q4, and that's obviously, to your point then it's the timing issues and things like that. But is there a real estate back [effect to the] plan?

回到ABS，第四季的股息收入。顯然，我指的是 Toorak 或當今傳播中的任何名稱。本季度股息有所下降。如果來自與房地產市場相關的資產支持金融方面的股息數量相對較低但仍然非常健康，我們顯然可以在那裡間接敞口。或者第四季是否還有其他一些通常季節性的事情，很明顯，就你的觀點而言，那就是時間問題和類似的事情。但房地產計劃是否會受到影響？

And I mean I'll answer the question, but if I missed something, let me know because it was a little bit hard to hear a couple of points in there. I mean I think on the example of sort of Toorak, I mean Toorak, the underlying loan performance has been quite strong. And I think we've been sort of happy to see that. But like a lot of sort of asset classes out there right now, that would fall on to 1 where the cost of financing, so it generally has gone up more than the yields on the underlying loans. So that has had put some sort of, we'll call it, stress on net income or sort of ROE there.

我的意思是我會回答這個問題，但如果我錯過了什麼，請告訴我，因為聽清楚其中的幾點有點困難。我的意思是，我認為以 Toorak 為例，我的意思是 Toorak，潛在的貸款表現相當強勁。我認為我們很高興看到這一點。但就像現在的許多資產類別一樣，這將取決於融資成本，因此它的漲幅通常會超過基礎貸款的收益率。因此，這給淨收入或股本回報率帶來了某種壓力。

They do have the benefit of having been a very frequent issuer and having the ability to -- those deals revolve. So as loans repay, they can continue to add to those. But I think this goes a little bit to Melissa's question as we think about kind of forward financing some of those structures might kind of trap cash in the entities for sort of a longer period of time.

他們確實有一個好處，就是經常發行債券，並且有能力進行這些交易。因此，當貸款償還時，他們可以繼續增加貸款。但我認為這有點符合梅麗莎的問題，因為我們考慮的是某種遠期融資，其中一些結構可能會在較長一段時間內將現金困在實體中。

So I'd say it's not seasonal. We try to run that book as neutral as we can from sort of a rates perspective. But there'll be some amount of kind of refinancing risk there or sort of term out sort of point so that to be mindful of it.

所以我想說這不是季節性的。我們試圖從利率的角度盡可能保持中立。但會存在一定程度的再融資風險或某種期限，因此請注意這一點。

Understood. And that does answer the question for me. On -- 1 more, you talked about, obviously, there's a little bit of spread compression now. The syndicated market seems to be showing some signs of life, not all the way back yet by a long stretch. I mean what are your thoughts over the -- more conceptual over the next 12 months, call it. Is there a risk spreads in the private credit market that if the syndicated market comes back more aggressively, that puts meaningful spread compression risk in the private credit side. Given base rates are so high, you can obviously -- that could be handled without a problem. Does that create a dynamic where the spread compression risk is maybe elevated if the syndicated market comes back while base rates are very high.

明白了。這確實回答了我的問題。關於——還有一點，你談到，顯然，現在有一點點的價差壓縮。銀團市場似乎正在顯示出一些生命跡象，但還沒有完全恢復。我的意思是，您對未來 12 個月內更具概念性的想法有何看法。私人信貸市場是否有風險利差，如果銀團市場更積極回歸，這會為私人信貸帶來有意義的利差壓縮風險。鑑於基本利率如此之高，顯然可以——這可以毫無問題地處理。如果在基本利率非常高的情況下銀團市場回歸，這是否會產生一種動態，即利差壓縮風險可能會升高。

Yes. I mean, it's a very fair question. I don't think so. But I don't think so for a couple of reasons. I think there's a bit of a floor level to where this market sort of might very well get to. Now part of that is driven by a bunch of the pools of capital that sort of invest here might be sort of levered pools, but I think you're always going to have a certain amount of a gap between the private debt market and the syndicated market.

是的。我的意思是，這是一個非常公平的問題。我不這麼認為。但我不這麼認為，原因有幾個。我認為這個市場很可能會達到一定的水準。現在，其中一部分是由一堆資本池驅動的，這些資本池在這裡進行的投資可能是某種槓桿池，但我認為私人債務市場和銀團之間總是存在一定的差距。市場。

I think we've talked about this on some prior calls. I think if you looked at deals that were done, the beginning of kind of '22, the market spread was probably [575] kind of on average. I think that would have gapped out in the beginning part of this year to probably [675] on average.

我想我們在之前的幾次通話中已經討論過這個問題。我認為，如果你看看 22 年初已完成的交易，市價差平均可能為 [575] 種。我認為今年年初的平均數字可能會跳空至[675]。

And that's a pretty big move considering the benchmark also jumped almost 450-plus basis points and that's something just comparing that basis point number versus the floor that was in kind of the deals. So now I think you're back down to you're looking at deals today that are probably kind of [6 to 625.] But I think that's -- I think those are going to be range bound generally in there.

考慮到基準指數也上漲了近 450 個基點，而且這只是將基點數字與交易中的下限進行比較，這是一個相當大的變化。所以現在我認為你今天要考慮的交易可能是 [6 到 625]。但我認為 - 我認為這些交易通常會受到範圍限制。

And I think it will be somewhat subject to deal volumes, the desire for people sort of to deploy capital and that there's been maybe excess capital raise that's looking to get deployed quickly.

我認為這將在一定程度上受到交易量、人們部署資本的願望以及可能存在希望快速部署的超額融資的影響。

Our next question comes from Bryce Rowe with B. Riley.

我們的下一個問題來自 Bryce Rowe 和 B. Riley。

I wanted to start with some questions on just the nonaccrual bucket and some of the specific nonaccruals. I think last quarter, you talked about Wittur and NBG going through a restructuring or bankruptcy process. Can you provide us an update on those as you look at the kind of the nonaccrual list, not much change in either 1 of those from a fair value and cost perspective, at least within that nonaccrual category.

我想從一些關於非應計項目和一些特定非應計項目的問題開始。我想上個季度，您談到了 Wittur 和 NBG 正在經歷重組或破產程序。您能否向我們提供有關非應計清單類型的最新信息，從公允價值和成本角度來看，其中任何一項都沒有太大變化，至少在非應計類別中是如此。

Yes, happy to, Bryce, and Brian might want to add to these as well. But I think on the Wittur side, we announced on the last call, this kind of agreement reached as it relates to a restructuring, those processes take time. I think we do expect that to get done, hopefully, at some point in Q4, sort of early sort of Q1. But that's progressing along I think as we would expect, and I think we've been happy with what we've seen in terms of stable performance at the company level. I think the NBG process is pretty much complete. But anything you want to add, Brian?

是的，很高興，布萊斯和布萊恩可能也想添加這些內容。但我認為在威特方面，我們在最後一次電話會議上宣布，達成的此類協議涉及重組，這些過程需要時間。我認為我們確實希望在第四季度的某個時候（第一季的早期）完成這項任務。但我認為這正在取得進展，正如我們所期望的那樣，而且我認為我們對公司層面的穩定表現感到滿意。我認為 NBG 流程已基本完成。但你想補充什麼嗎，布萊恩？

Yes. On NBG, we restructured that business around their lighting fixtures business, which has historically been a relatively strong performer within their portfolio. That's really the basis of our investment going forward, working closely with the management team on optimizing results, working through costs, working through sales, all those sorts of things. So that's sort of gone through the restructuring. Now we're on the other side, and now it's going to come down to execution.

是的。對於 NBG，我們圍繞其照明燈具業務重組了該業務，該業務歷來在其投資組合中表現相對強勁。這確實是我們未來投資的基礎，與管理團隊密切合作，優化結果，處理成本，處理銷售，所有這些事情。這樣就完成了重組。現在我們已經到了另一邊，現在就要看執行了。

Okay. Okay. That's helpful. And then maybe 1 more on the nonaccruals. I mean Global Jet dominates the nonaccrual list. I think it's 60% plus of the nonaccruals fair value marked at a relatively high 75% to 80%. I mean, Dan, what would it take to get that account back to accrual status? Any kind of update you can provide there?

好的。好的。這很有幫助。然後也許還有 1 個非應計費用。我的意思是 Global Jet 在非應計費用清單中佔據主導地位。我認為這是非應計公允價值的 60% 以上，標記為相對較高的 75% 至 80%。我的意思是，丹，如何才能使該帳戶恢復到應計狀態？您可以在那裡提供任何類型的更新嗎？

Yes, I think you're spot on, on your numbers. I mean it is 40% of the cost number and I think it's 65% of the fair market value. We've talked about the name a couple of different points on the calls. I think the management team inside the company has done a very nice job. I think the underlying asset class, private jets has had a fair amount of tailwinds, no pun intended, on the other side of COVID. And remember, there -- it's a leasing business mainly, but a lending business as well. Their obligors are both high net worth, but also some of the larger kind of corporates in the world.

是的，我認為你的數字是正確的。我的意思是它是成本的 40%，我認為它是公平市場價值的 65%。我們在電話會議上多次討論過這個名字。我認為公司內部的管理團隊做得非常好。我認為，在新冠疫情的另一面，基礎資產類別——私人飛機——沒有雙關語的意思，有相當多的順風車。請記住，這主要是租賃業務，但也是貸款業務。它們的債務人都是高淨值企業，也是世界上一些規模較大的企業。

So the performance has been, I think, quite strong. We've actually taken a fair amount of cash dividends out of the company, and that's been a return of capital over the last handful of quarters. I think that's probably more likely the path forward for '24. But I don't think the book has a delinquency in it right now. So I think the question -- or the -- maybe the harder thing for that business has just been who their competition has been and what the available ROE has been. But again, I think they've done a really good job to get to where they are today.

所以我認為表現相當強。實際上，我們已經從公司拿走了相當多的現金股息，這是過去幾季的資本回報。我認為這更有可能是 24 世紀的前進道路。但我不認為這本書現在有缺陷。所以我認為問題——或者說——對於該企業來說，也許更困難的事情是誰，他們的競爭對手是誰，以及可用的股本回報率是多少。但我再次認為，他們做得非常好，才達到今天的水準。

Yes. And I'd just add, I think specifically, their ROE has improved significantly. Several years ago, it was sort of low single digits, now it's in the high single digits. Still would like it to be a little bit better, but it's certainly come a long way and we're pleased to see the performance of the book.

是的。我只想補充一點，我認為具體來說，他們的淨資產回報率有了顯著提高。幾年前，它是低個位數，現在是高個位數。仍然希望它能做得更好一點，但它確實已經取得了很大的進步，我們很高興看到這本書的表現。

Our next question comes from Erik Zwick with the Hovde Group.

我們的下一個問題來自 Hovde Group 的 Erik Zwick。

First question for me. Just curious about your thoughts on the outlook for the weighted average yield for the portfolio going forward, just given your comments about some spread compression for new originations and I guess, if interest rates stay kind of in this general range here is -- have we kind of seen, are we near the peak for this cycle? Or is there opportunity to realize a little bit more as some older vintages with lower yields and lower spreads kind of roll out and you replace them with new, I'm just curious on any thoughts there.

我的第一個問題。只是好奇您對未來投資組合加權平均收益率前景的看法，只是考慮到您對新產品的利差壓縮的評論，我想，如果利率保持在這個一般範圍內，我們有嗎有點看到了，我們是否已經接近這個週期的頂峰了？或者，隨著一些產量較低、價差較低的較舊年份酒的推出，你是否有機會意識到更多，然後你用新的葡萄酒取代它們，我只是對那裡的任何想法感到好奇。

Yes. I'm not sure, Erik. Your instinct is entirely wrong in terms of probably being kind of near a peak. I think kind of quarter-on-quarter, there's probably a little bit of, we'll call it, further upside, if you just like a kind of spot SOFR at June 30 and spot SOFR at kind of 9/30 and some of these loans have kind of reset periods that might be sort of 90 days. So it takes a little while for it to go through the system.

是的。我不確定，艾瑞克。你的直覺是完全錯誤的，因為你可能已經接近峰值了。我認為季度環比，如果您只是喜歡 6 月 30 日的現貨 SOFR 和 9/30 的現貨 SOFR 以及一些這些貸款有大約 90 天的重置期。所以它需要一點時間才能通過系統。

I think on the other side of that, maybe to the positive, you -- I think once we do start to see repayment, some of that could be on the lower-yielding stuff that was sort of maybe put on lower yielding sort of inside the confines of the book or maybe it gets refinanced for some of the companies that are highly performing.

我認為另一方面，也許是積極的，我認為一旦我們開始看到還款，其中一些可能會出現在低收益的東西上，這些東西可能會被放在低收益的內部。這本書的局限性性或可能會為一些表現出色的公司提供再融資。

But then I do think we're in this environment of rates higher for longer. I think that's got a great tailwind for income for FSK, which we're sort of quite happy about, but I'm not expecting, we'll call it, meaningful upticks from here as it relates to kind of short-term SOFR rates.

但我確實認為我們處於這種利率較高的環境中的時間更長。我認為這對 FSK 的收入有很大的推動作用，我們對此感到非常高興，但我並不期望（我們稱之為）從這裡開始有意義的上升，因為它與短期 SOFR 利率有關。

That's helpful. And then 1 last 1 for me, and I may have missed it in the prepared remarks. Can you update us on your current spillover position?

這很有幫助。然後 1 最後 1 對我來說，我可能在準備好的評論中錯過了它。您能否向我們介紹一下您目前的溢出狀況？

Yes. Steven, do you want to take that?

是的。史蒂文，你想接受這個嗎？

Yes, Erik, we're continuing to be north of 2.5 quarters' worth of dividends, which is 1 of -- we sort of hit that target, we've said on prior calls, which was the impetus for our special distribution that we started during -- earlier this year in 2023. And obviously, we just announced in conjunction with earnings that, that will continue for at least another 2 quarters during the first half of 2024. So pleased to have met that target. It's another we think of as a sort of a nice asset to have and then share that excess with shareholders.

是的，埃里克，我們繼續超過 2.5 個季度的股息，這是我們在之前的電話會議上說過的，我們有點達到了這個目標，這是我們特別分配的動力今年早些時候，即2023年開始。顯然，我們剛剛結合收益宣布，這種情況將在2024 年上半年至少再持續兩個季度。很高興實現了這一目標。我們認為這是另一個很好的資產，可以擁有並與股東分享多餘的資產。

Our next question comes from Mark Hughes with Truist.

我們的下一個問題來自 Truist 的 Mark Hughes。

Just 1 question. Any material change in the prospects to generate the fee income once the market loosens up. You've been holding the loans longer, you and everyone else. And presumably, the prepayment fees would be correspondingly lower. How sensitive is that income stream through the passage of time here?

只有 1 個問題。一旦市場放鬆，產生費用收入的前景發生任何重大變化。你和其他人持有貸款的時間都更長了。據推測，預付款費用也會相應降低。隨著時間的推移，收入流有多敏感？

I mean it's an interesting point, Mark. And one, I think clearly, origination volumes, I think, for us and the industry broadly have been sort of lower, right? I think you can see that in the fee income numbers that you see. But if you do look back kind of to the same quarter a year ago, I think your fee income was 2x or 2.5x the size of sort of where it is today.

我的意思是這是一個有趣的觀點，馬克。我清楚地認為，我認為，對於我們和整個產業來說，起始量有點低，對嗎？我想你可以從你看到的費用收入數字中看到這一點。但如果你回顧一年前的同一季度，我認為你的費用收入是今天的 2 倍或 2.5 倍。

So I do think that's a nice, let's call it, natural -- even if we do see a certain amount of repayments, those repayments could generate, depending on when the loan was put on, a certain amount of exit fees, but then the new deals will generate a certain amount of kind of new deal fees as well. And I don't think -- I think the current quarter was $12 million of fee income. I think that's lower than any kind of normal and historical sort of average. So there is a bit of balance there. I think it's a very good point.

所以我確實認為這是一件好事，讓我們稱之為自然——即使我們確實看到一定數量的還款，這些還款可能會產生一定數量的退出費用，具體​​取決於貸款的發放時間，但隨後新交易也會產生一定數量的新交易費用。我不認為——我認為當前季度的費用收入為 1200 萬美元。我認為這低於任何正常和歷史的平均水平。所以那裡有一點平衡。我認為這是一個非常好的觀點。

Our next question comes from Jordan Wathen with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的喬丹·沃森。

Can you just give us some context on the decision to keep Pure Fishing second lien on accrual last quarter? It looks like that June 30 mark might have been informed by some discussions about exiting that position at a loss.

您能否向我們介紹一下上個季度決定保留 Pure Fishing 第二留置權的背景？看起來 6 月 30 日關口可能是由一些關於虧損退出該頭寸的討論決定的。

And Jordan, just can you repeat the question because you faded out a bit at the end.

喬丹，你能重複這個問題嗎，因為你最後有點淡出。

Last quarter, you kept Pure Fishing second lien on accrual. It looks like this quarter, you exited that at a loss and that mark at June 30 may have been informed by discussions with the sponsor about exiting that position at a loss. So I'm just curious, basically, why did you keep that asset on accrual last quarter? Is there any...

上個季度，您保留了 Pure Fishing 的應計第二留置權。看起來這個季度，您虧損退出了該職位，而 6 月 30 日的這一標記可能是透過與保薦人討論虧損退出該頭寸而得知的。所以我基本上很好奇，為什麼上個季度你要保留該資產的應計資產？有沒有...

I think there's sort of 2 points there. So number one, you are correct. Probably most importantly, we have exited that position. I think that was in many ways, a good sort of outcome or a good result at the end of the day. And I think a bit of a testament to how we kind of risk manage the book.

我認為有兩點。所以第一，你是對的。也許最重要的是，我們已經退出了這個職位。我認為這在很多方面都是一個好的結果，或者說歸根結底是一個好的結果。我認為這本書有點證明了我們如何管理風險。

I think we were -- the asset continued to sort of pay cash. I do think the long-term prospects of that business will be, we'll call it, positive. I think it's got some real sort of brands kind of attached to it. I think those were the drivers of the kind of accrual points and then the drivers of the sale was just kind of prudent risk management. But it's in exited position now.

我認為我們－資產繼續支付現金。我確實認為該業務的長期前景將是積極的。我認為它有某種真正的品牌依附在它身上。我認為這些是累積積分的驅動因素，而銷售的驅動因素只是審慎的風險管理。但現在處於退出位置。

I'm showing no further questions at this time. I'd now like to turn it back to Dan Pietrzak for closing remarks.

我目前沒有提出任何進一步的問題。現在我想請 Dan Pietrzak 作結束語。

Well, thank you, everyone, for taking the time to join the call today. We're available for any follow-up points as needed, and we wish you and your families a happy and healthy holiday season. Thanks again.

好的，謝謝大家今天抽出時間參加電話會議。我們可以根據需要提供任何後續服務，並祝您和您的家人度過一個快樂健康的假期。再次感謝。

Thank you for your participation in today's conference. This concludes the program. You may now disconnect.

感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。