Main Street Capital Corp (MAIN) 2023 Q4 法說會逐字稿

So the no Greetings and welcome to the Mainstreet Capital Corporation fourth quarter earnings conference call. At this time, all participants are in a listen only mode and a brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

歡迎大家參加 Mainstreet Capital Corporation 第四季財報電話會議。此時，所有參與者都處於僅聽模式，正式演示之後將進行簡短的問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, Zach Vaughan with Dennard Lascar Investor Relations. Thank you, Mr. Vaughan, you may begin.

現在我很高興向您介紹主持人，丹納德·拉斯卡投資者關係部門的紮克·沃恩。謝謝您，沃恩先生，您可以開始了。

Thank you, operator, and good morning, everyone. Thank you for joining us for Main Street Capital Corporation's Fourth Quarter 2023 earnings conference call. Joining me today with prepared comments are Dwayne Hyzak, Chief Executive Officer; David Magdol, President and Chief Investment Officer; and Jesse Morris, Chief Financial Officer and Chief Operating Officer. Also participating for the Q&A portion of the call is Nick Meserve, Managing Director and Head of Main Street's private credit investment group.

謝謝接線員，大家早安。感謝您參加 Main Street Capital Corporation 的 2023 年第四季財報電話會議。今天與我一起發表準備好的評論的是執行長 Dwayne Hyzak； David Magdol，總裁兼首席投資長；財務長兼營運長傑西莫里斯 (Jesse Morris)。Main Street 私人信貸投資集團董事總經理兼負責人 Nick Meserve 也參加了電話會議的問答部分。

Main Street issued a press release yesterday afternoon that details the company's fourth quarter and full year financial and operating results. This document is available on the Investor Relations section of the Company's website at Main ST. Capital.com. A replay of today's call will be available beginning one hour after the completion of the call and will remain available until March first. Information on how to access the replay was included in yesterday's release. We also advise you that this conference call is being broadcast live through the Internet and can be accessed on the company's homepage. Please note that information reported on this call speaks only as of today, February 23rd, 2024. And therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay listening or transcript reading Today's call will contain forward looking statements. Many of these forward-looking statements can be identified by the use of words such as anticipates, believes, expects, intends, will, should, may or similar expressions. These statements are based on management's estimates, assumptions and projections as of the date of this call, and there are no guarantees of future performance. Actual results may differ materially from the results expressed or implied in these statements 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, which can be found on the Company's website or at SEC.gov. Main Street assumes no obligation to update any of these statements unless required by law.

Main Street 昨天下午發布了一份新聞稿，詳細介紹了該公司第四季度和全年的財務和營運業績。本文件可在公司網站 Main ST 的投資者關係部分取得。Capital.com。今天的電話會議的重播將在電話會議結束一小時後開始提供，並將持續到 3 月 1 日。有關如何存取重播的資訊已包含在昨天的發布中。我們也通知您，本次電話會議正在透過網路進行現場直播，並且可以在公司主頁上觀看。請注意，本次電話會議報告的資訊僅截至今天（2024 年 2 月 23 日）。因此，建議您在重播或閱讀文字記錄時，時間敏感的資訊可能不再準確。今天的電話會議將包含前瞻性陳述。許多前瞻性陳述可以透過使用諸如預期、相信、期望、打算、將、應該、可能或類似表達等詞語來識別。這些陳述是基於管理層截至本次電話會議之日的估計、假設和預測，對未來績效不提供任何保證。由於風險、不確定性和其他因素，包括但不限於公司向美國證券交易委員會提交的文件中列出的因素，實際結果可能與這些聲明中明示或暗示的結果有重大差異。可在公司網站或SEC.gov 上找到。除非法律要求，否則 Main Street 不承擔更新任何這些聲明的義務。

During today's call, management will discuss non-GAAP financial measures, including distributable net investment income or DNIS. BNI is net investment income or NII, as determined in accordance with U.S. generally accepted accounting principles or GAAP. Excluding the impact of noncash compensation expenses, management believes that presenting DNI and the related per share amounts are useful and appropriate supplemental disclosures for analyzing Main Street's financial performance since non-cash compensation expenses do not result in net cash impact to Mainstreet upon settlement. Please refer to yesterday's press release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures through additional key performance indicators that Management will be discussing on this call are net in net asset value or NAV and return on equity or ROV. NAV is defined as total assets minus total liabilities and is also reported on a per-share basis. Main Street defines ROE as the net increase in net assets resulting from operations divided by the average quarterly total net assets.

在今天的電話會議上，管理層將討論非 GAAP 財務指標，包括可分配淨投資收益或 DNIS。BNI 是淨投資收入或 NII，根據美國公認會計原則或 GAAP 確定。排除非現金補償費用的影響，管理層認為，提供DNI 和相關每股金額對於分析Main Street 的財務業績是有用且適當的補充披露，因為非現金補償費用不會在結算時對Mainstreet 產生淨現金影響。請參閱昨天的新聞稿，以了解這些非GAAP 指標與最直接可比較的GAAP 財務指標的調節表，管理層將在本次電話會議上討論的其他關鍵績效指標包括淨資產值或NAV 和股本回報率或ROV 。資產淨值定義為總資產減去總負債，也是以每股為基礎報告的。Main Street 將 ROE 定義為營運產生的淨資產淨成長除以平均季度總淨資產。

Please note that certain information discussed on this call, including information related to portfolio companies, was derived from third-party sources and has not been independently verified.

請注意，本次電話會議中討論的某些資訊（包括與投資組合公司相關的資訊）來自第三方來源，未經獨立核實。

And now I'll turn the call over to Main Street's CEO, Dwayne Hyzak.

現在我將把電話轉給 Main Street 的執行長 Dwayne Hyzak。

Thanks, Zach. Good morning, everyone, and thank you for joining us. We appreciate your participation on this morning's call. We hope that everyone's doing well.

謝謝，扎克。大家早安，感謝您加入我們。我們感謝您參加今天早上的電話會議。我們希望每個人都一切順利。

On today's call, I will provide my usual updates regarding our performance in the quarter, while also providing a few updates on our performance for the full year also provide updates on our asset management activities, our recent dividend declarations, our expectations for dividends going forward. Our recent investment activities and current investment pipeline and several other noteworthy updates. Following my comments, David and Jesse will provide additional comments regarding our investment strategy, investment portfolio, financial results, capital structure and leverage and our expectations for the fourth quarter of 2024, after which we'll be happy to take your questions.

在今天的電話會議上，我將按照慣例提供有關本季度業績的最新信息，同時提供有關全年業績的一些最新信息，還提供有關我們的資產管理活動、最近的股息聲明、對未來股息的預期的最新資訊。我們最近的投資活動和目前的投資管道以及其他一些值得注意的更新。在我發表評論後，David 和Jesse 將就我們的投資策略、投資組合、財務表現、資本結構和槓桿以及我們對2024 年第四季的預期提供更多評論，之後我們將很樂意回答您的問題。

We're extremely pleased with our fourth quarter results, which closed another record year for us. Our fourth quarter performance resulted in a new quarterly record for ENI per share, ENI per share equal to our existing quarterly record that we achieved earlier this year. A new record for NAV per share for the sixth consecutive quarter and an annualized return on equity of approximately 23% for the quarter.

我們對第四季的業績非常滿意，這為我們又一個創紀錄的年份畫上了圓滿的句點。我們第四季的業績創造了每股 ENI 的新季度記錄，每股 ENI 等於我們今年稍早實現的現有季度記錄。每股資產淨值連續第六個季度創下新紀錄，本季年化股本回報率約為 23%。

Our performance in the fourth quarter continued our positive performance in the first three quarters of 2023 and resulted in new annual records for ENI per share and ENI per share and a return on equity of approximately 19% for the year. These positive results demonstrate the continued and sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the contributions of our asset management business and the continued underlying strength and quality of our portfolio companies. We are further pleased that we are able to generate these returns while intentionally maintain a conservative capital structure and we'll liquidity position during 2023. The continued positive momentum across our platform during 2023 allowed us to deliver significantly increased value to our shareholders with a 25% increase in the total dividends paid to our shareholders in 2023. Despite the significant increase, our D&I still exceeded the total dividends paid to our shareholders by over 17% in addition to these record-breaking results, with the continued support from our long-term lender relationships and the benefits of our recent investment grade debt offering in January, we entered the new year with a strong liquidity position and a conservative leverage profile and are excited about the prospects for significant growth in both our lower middle market and private loan investment strategies. We appreciate the hard work and efforts of the management teams and employees in our portfolio companies and continue to be encouraged by the favorable performance of the companies in our diversified, lower middle market and private loan investment strategies. We remain confident that these strategies, together with the benefits of our asset management business and our cost efficient operating structure will allow us to continue to deliver superior results for our shareholders in the future. These positive results, combined with our favorable outlook for the first quarter resulted in our recommendation to our Board of Directors for our most recent dividend announcements, which I'll discuss in more detail later.

我們第四季的業績延續了 2023 年前三季的積極表現，每股 ENI 和每股 ENI 均創下新的年度記錄，全年股本回報率約為 19%。這些積極成果體現了我們整體平台的持續和可持續實力、差異化和多元化投資策略的優勢、資產管理業務的貢獻以及被投資公司持續的基礎實力和品質。我們進一步感到高興的是，我們能夠在有意保持保守的資本結構的同時產生這些回報，並且我們將在 2023 年保持流動性頭寸。2023 年，我們平台上持續的積極勢頭使我們能夠為股東創造顯著增加的價值，2023 年支付給股東的股息總額增加了 25%。儘管成長顯著，但在我們長期貸方關係的持續支持以及我們最近投資級債務發行的好處下，除了這些破紀錄的業績外，我們的 D&I 仍然超過支付給股東的股息總額 17% 以上一月份，我們以強勁的流動性部位和保守的槓桿狀況進入了新的一年，並對中低端市場和私人貸款投資策略的顯著成長前景感到興奮。我們感謝投資組合公司的管理團隊和員工的辛勤工作和努力，並繼續為這些公司在我們的多元化、中低端市場和私人貸款投資策略中的良好表現而受到鼓舞。我們仍然相信，這些策略，加上我們資產管理業務的優勢和具有成本效益的營運結構，將使我們能夠在未來繼續為股東帶來卓越的績效。這些正面的業績，加上我們對第一季的樂觀前景，使我們向董事會推薦了最新的股息公告，我將在稍後詳細討論。

Our NAV per share increase in the quarter due to several factors, including the impact of the net fair value increases in our investment portfolio, the accretive impact of our equity issuances, our retention of the excess NI above our dividends paid the continued favorable performance of certain of our lower middle market portfolio companies resulted in strong dividend income contributions in another quarter of significant fair value appreciation in the equity investments in those portfolio companies.

我們本季每股資產淨值的成長歸因於多種因素，包括我們投資組合中淨公允價值增加的影響、我們股票發行的增值影響、我們保留高於股息的超額淨資產以及持續良好的業績我們的某些中低端市場投資組合公司在這些投資組合公司的股權投資公允價值大幅升值的另一個季度中帶來了強勁的股息收入貢獻。

As we look forward to the next few quarters. We remain excited about our expectations for our lower middle market portfolio companies and the opportunity for continued dividend income and additional fair value appreciation from this portfolio in the future.

正如我們期待接下來的幾季。我們對中低端市場投資組合公司的期望以及未來從該投資組合中獲得持續股息收入和額外公允價值升值的機會仍然感到興奮。

Our lower middle market investment activity in the fourth quarter returned to levels consistent with our normal expectations, with new investments of $92 million in the quarter, including investments totaling $68 million in two new portfolio companies and resulting a net increase of $66 million after repayments and other investment activity. Our private loan investment activities in the quarter included new investments of $160 million, which together with higher than expected repayment activity in the quarter resulted in a net decrease in our private loan investments of $113 million. We've also continued to produce attractive results for our asset management business. The funds we advised through our external investment manager continued to experience favorable performance in the fourth quarter, resulting in significant incentive fee income for asset management business for the fifth consecutive quarter. And together with our recurring base management fees, a significant contribution to our net investment income. We also benefited from significant fair value appreciation in the value of the external investment manager due to a combination of increased fee income growth in assets under management and broader market base drivers. We remain excited about our plans for the external fund that we manage as we execute our investment strategies and other strategic initiatives. And we are optimistic about the future performance of the funds and the attractive returns we are providing to the investors of each fund. We also remain optimistic about our strategy for growing our asset management business within our internally managed structure and increasing contributions from this unique benefit to our main street stakeholders.

第四季中低端市場投資活動恢復到與正常預期一致的水平，本季新增投資9,200 萬美元，其中對兩家新投資組合公司的投資總額為6,800 萬美元，在還款和還款後淨增加6,600 萬美元。其他投資活動。本季我們的私人貸款投資活動包括新增投資 1.6 億美元，加上本季高於預期的還款活動，導致我們的私人貸款投資淨減少 1.13 億美元。我們的資產管理業務也持續取得有吸引力的績效。我們透過外部投資經理代理的基金在第四季度繼續表現良好，導致資產管理業務連續第五個季度獲得可觀的激勵費收入。加上我們的經常性基本管理費，對我們的淨投資收入做出了重大貢獻。由於管理資產的費用收入成長和更廣泛的市場基礎驅動因素的結合，我們也受益於外部投資管理公司價值的顯著公允價值升值。我們對在執行投資策略和其他策略性舉措時管理的外部基金的計劃仍然感到興奮。我們對基金的未來表現以及我們為每個基金的投資者提供的有吸引力的回報感到樂觀。我們也對我們在內部管理結構內發展資產管理業務的策略保持樂觀，並增加這一獨特利益對我們主要街道利害關係人的貢獻。

As part of this growth strategy, we're happy to update with the we've made continued progress with the fundraising activities on our second private loan fund, and we'll look forward to the continued growth of this new fund over the next few quarters and the related additional recurring base management fees and incentive fee opportunities. Based upon our results for the fourth quarter, combined with our favorable outlook in each of our primary investment strategies and for our asset management business. Earlier this week, our Board declared a supplemental dividend of $0.3 per share payable in March, representing our 10th consecutive and largest to-date quarterly supplemental dividend. Our Board also declared regular monthly dividends for the second quarter of 2024 of $0.24 per share payable on each of April, May and June, representing a 6.7% increase from the second quarter of 2023. Supplemental dividend from March is a result of our strong performance in the fourth quarter, which resulted in DNII. per share, which exceeded our regular monthly dividends paid during the quarter by $0.42 per share or 59%. March 2024 supplemental dividend will result in a result in total supplemental dividends paid during the trailing 12 month period of $1 and $0.075 per share, representing an additional 39% paid to our shareholders in excess of our regular monthly dividends and implying a current total yield to our shareholders of approximately 9% after multiple increases to our monthly dividends during 2023 and a significant supplemental dividend paid in December. Our DNII. per share for the fourth quarter still exceeded our total dividends paid by $0.14 per share or 14%. We are pleased to be able to deliver the significant additional value to our shareholders while still conservatively retaining a portion of our excess earnings to support our capital structure and investment portfolio.

作為這項成長策略的一部分，我們很高興地更新我們第二隻私人貸款基金的籌款活動取得的持續進展，我們將期待這只新基金在未來幾年內持續增長季度以及相關的額外經常性基本管理費和獎勵費機會。基於我們第四季的業績，結合我們對每個主要投資策略和資產管理業務的樂觀前景。本週早些時候，我們的董事會宣布 3 月支付每股 0.3 美元的補充股息，這是我們連續第十次發放也是迄今為止最大的季度補充股息。我們的董事會還宣布 2024 年第二季的定期月度股息為每股 0.24 美元，將於 4 月、5 月和 6 月支付，較 2023 年第二季增加 6.7%。3 月份的補充股息是我們第四季度強勁業績的結果，這導致了 DNII。每股，比本季定期支付的每月股息高出每股 0.42 美元，即 59%。2024 年3 月的補充股息將導致過去12 個月期間支付的補充股息總額為每股1 美元和0.075 美元，這相當於向股東支付的額外股息超出我們每月定期股息的39%，這意味著目前的總收益率為在 2023 年多次增加每月股息並在 12 月支付大量補充股息後，我們的股東持有約 9% 的股份。我們的DNII。第四季每股仍超出我們支付的總股息每股 0.14 美元，即 14%。我們很高興能夠為股東提供顯著的附加價值，同時仍保守地保留部分超額收益以支持我們的資本結構和投資組合。

Against the risks associated with the current continued general economic uncertainty and to further enhance the growth of our NAV per share. As we've previously mentioned, we currently expect to recommend that our Board declared future supplemental dividends to the extent DNI significantly exceed our regular monthly dividends paid in future quarters, and we maintain a stable to positive NAV based upon our expectations for the continued favorable for performance in the first quarter. We currently anticipate proposing an additional supplemental dividend payable in June 2020.

應對當前持續的總體經濟不確定性相關的風險，並進一步提高我們每股資產淨值的成長。正如我們之前提到的，我們目前預計建議董事會宣布未來的補充股息，前提是DNI 顯著超過我們未來季度支付的每月定期股息，並且基於我們對持續有利的預期，我們維持穩定至正的資產淨值對於第一季的業績。我們目前預計提議於 2020 年 6 月支付額外補充股利。

For Now turning to our current investment pipeline. As of today, I'd characterize our lower middle market investment pipeline as average, despite the current broad economic uncertainty, we expect to continue to be active in our lower middle market strategy, consistent with our experience in prior periods of broad economic uncertainty. We believe that the unique and flexible financing solutions that we can provide to our lower middle market companies and their owners and management teams and are differentiated long term to permanent holding periods should be an even more attractive solution in the current environment and should result in very attractive investment opportunities. We are excited about these new investment opportunities, and we expect that our current pipeline will be helpful as we work to maintain our positive momentum from 2023 into the future.

現在轉向我們目前的投資管道。截至今天，我將我們的中低端市場投資管道描述為平均水平，儘管當前存在廣泛的經濟不確定性，但我們預計將繼續積極實施我們的中低端市場策略，這與我們在之前廣泛的經濟不確定時期的經驗一致。我們相信，我們可以為中低端市場公司及其所有者和管理團隊提供獨特而靈活的融資解決方案，並且從長期到永久持有期都有區別，這應該是當前環境下更具吸引力的解決方案，並且應該會帶來非常好的回報。有吸引力的投資機會。我們對這些新的投資機會感到興奮，我們預計目前的管道將有助於我們努力保持 2023 年至未來的積極勢頭。

We also continue to be very pleased with the performance of our private credit team and the results they have provided for our private loan portfolio and our asset management business and as of today, I would characterize our private loan investment pipeline as average.

我們也對我們的私人信貸團隊的表現以及他們為我們的私人貸款組合和資產管理業務提供的結果仍然感到非常滿意，截至今天，我將我們的私人貸款投資管道描述為平均水平。

With that, I will turn the call over to David.

這樣，我就把電話轉給大衛。

Thanks, Dwayne, and good morning, everyone. Each year end provides a good opportunity to look back at our history and highlight the results of our unique and diversified investment strategies and discuss how these strategies have enabled us to deliver attractive returns to our shareholders over an extended period of time. Since our IPO in 2007, we have increased our monthly dividends per share by 118% and we have declared cumulative total dividends to our shareholders of $40.56 per share or over 2.7 times our IPO price of $15 per share our total return to shareholders since our IPO calculated using our stock price as of yesterday's close and assuming reinvestment of all dividends received since our IPO was 11 times, money invested This compares very favorably to the 3.4 times money invested for the S&P 500 over the same period of time and is significantly higher when compared to other BDCs as we previously discussed, we believe that the primary drivers of our long-term success has been and will continue to be our focus on making both debt and equity investments in the underserved, lower middle market, supporting our private credit activities for the benefit of our stakeholders and for the clients of our asset management business, which also benefits our stakeholders, our internally managed structure, which allows us to maintain an industry-leading cost structure and a strong alignment of interest between our employees and our shareholders. As a result of our team's meaningful stock ownership, most notably uniquely, our lower middle market strategy provides attractive leverage points in income yields on our first-lien debt investments, while also creating a true partnership with the management teams and other equity owners of our portfolio companies through our flexible and highly aligned equity ownership structures. This approach provides significant downside protection through our first-lien debt investments and preferred equity positions while still providing the benefits of alignment and significant upside potential through these equity investments, which we make alongside our portfolio company management team partners increased long-term historical track record of investing in a lower middle market, coupled with our view that this market continues to be underserved, gives us confidence that we will be able to continue to find attractive new investment opportunities. And this primary area of investment focus for our business. Our ability to provide highly customized and differentiated capital solutions for the predominantly family-owned businesses that exist that exist in the lower middle market has been and continues to be a strong differentiator for us. In 2023, Main Street invested $301 million in our lower middle market strategy, $197 million of this capital was deployed in six new lower middle market platform companies with the remaining $104 million, predominantly representing follow-on investments in existing seasoned and well performing lower middle market companies. Consistent with our comments in prior quarters, these follow-on investments were made to support the growth strategies in some of our highest performing portfolio companies, which makes this aspect of our lower middle market investment activity, very exciting for us. Our follow-on investments are typically used to support multiple objectives, including acquisitions, product or geographic expansion opportunities and recapitalization transactions. Most importantly, these follow-on investments support proven management teams that we believe intrinsically pose less investment risks when compared to providing capital to new portfolio companies. Since we are significant equity owners in our lower middle market companies. We benefit from participating alongside the proven managers in these businesses as they strive to achieve meaningful equity value creation. As we've said in the past. As our lower middle market portfolio companies perform over time, they naturally deleverage with free cash flow generated from operations. This allows us along with our lower middle market portfolio management team partners to benefit from a larger portion of the portfolio companies' cash flow after debt service, which can be available for distributions to the equity owners. Given the strength and quality of our lower middle market portfolio and the long term holding period for many of our companies, we expect dividend income to continue to be a significant contributor to our results in 2024. Additionally, this deleveraging, coupled with the attractive overall strong underlying operating results of our lower middle market portfolio companies allowed us to achieve $72 million in net fair value appreciation in 2023 for the lower middle market portfolio. This benefit from our lower middle market equity investments is unique among BDCs with our fair value appreciation available to offset losses, which will naturally occur in our investment strategy. Given the fact that we are investing in non-investment grade asset classes, our unrealized equity appreciation also provides potential upside to Main Street's net asset value that the investment strategies of other BDCs simply do not have last important area I'd like to cover regarding our 2023 accomplishments are the impressive contributions that our private credit team delivered during the year. Our private credit team continued to execute on our strategy to dedicate significant resources towards growing the private loan segment of our business while deemphasizing our middle market portfolio, which, as a reminder, includes investments in larger syndicated loans, our purposeful and intentional strategic shift over the last six years to grow our private loan portfolio is primarily driven by our belief that an attractive and growing direct lending environment exists and that the private loan investments provide a very attractive risk-adjusted return profile for MainStreet and for the clients of our asset management business. During 2023, Main Street invested $507 million in our private loan strategy, while decreasing our middle market portfolio by 27% on a cost basis as a result of these investment activities during the year, our private loan portfolio represented 39% of our total investments at cost at year end, and our middle market portfolio declined by 300 basis points to represent only 8% of our total investments at cost. As Dwayne discussed earlier, our private loan capabilities also support our key strategic objective to continue to grow our asset management business. As of December 31st, we had investments in 190 companies spanning across more than 50 different industries for our largest portfolio companies, excluding the external investment manager, represented only 3.7% of our total investment income for the year and 3.5% of our total investment portfolio at fair value. At year end, majority of our portfolio investments represented less than 1% of our income and our assets.

謝謝，德韋恩，大家早安。每年年底都提供了一個很好的機會來回顧我們的歷史，突出我們獨特和多元化投資策略的成果，並討論這些策略如何使我們能夠在較長時間內為股東提供有吸引力的回報。自2007 年首次公開發行以來，我們的每月每股股息增加了118%，我們宣布向股東派發的累計股息總額為每股40.56 美元，是我們IPO 價格每股15 美元的2.7 倍以上，我們自首次公開募股以來股東總回報使用截至昨天收盤的股價計算，並假設將自IPO 以來收到的所有股息進行再投資，投資金額為11 倍，這與同期標準普爾500 指數投資金額的3.4 倍相比非常有利，並且在以下情況下顯著更高與我們之前討論的其他BDC 相比，我們相信，我們長期成功的主要驅動力一直並將繼續是我們專注於在服務不足的中低端市場進行債務和股權投資，支持我們的私人信貸活動為了我們的利益相關者和我們資產管理業務的客戶的利益，這也使我們的利益相關者受益，我們的內部管理結構使我們能夠保持行業領先的成本結構以及我們的員工和股東之間的利益緊密結合。由於我們團隊有意義的股權，最值得注意的是，我們的中低端市場策略為我們的第一留置權債務投資的收益收益率提供了有吸引力的槓桿點，同時也與我們的管理團隊和其他股權所有者建立了真正的合作夥伴關係。透過我們靈活且高度一致的股權結構來投資組合公司。這種方法透過我們的第一留置權債務投資和優先股權頭寸提供了顯著的下行保護，同時仍然透過這些股權投資提供了調整的好處和巨大的上行潛力，我們與投資組合公司管理團隊合作夥伴一起增加了長期歷史記錄投資中低端市場，加上我們認為該市場仍然服務不足，使我們有信心能夠繼續尋找有吸引力的新投資機會。這是我們業務的主要投資重點領域。我們為中低端市場中存在的以家族企業為主的企業提供高度客製化和差異化的資本解決方案的能力一直並將繼續成為我們的強大差異化因素。2023 年，Main Street 在我們的中低端市場策略上投資了3.01 億美元，其中1.97 億美元部署在六家新的中低端市場平台公司，其餘1.04 億美元主要代表對現有經驗豐富且表現良好的中低階市場的後續投資市場公司。與我們在前幾個季度的評論一致，這些後續投資是為了支持我們一些表現最好的投資組合公司的成長策略，這使得我們中低端市場投資活動的這一方面對我們來說非常令人興奮。我們的後續投資通常用於支援多個目標，包括收購、產品或地理擴張機會以及資本重組交易。最重要的是，這些後續投資支持經過驗證的管理團隊，我們認為與向新的投資組合公司提供資金相比，這些團隊本質上構成的投資風險較小。因為我們是中低端市場公司的重要股權所有者。我們受益於與這些業務中經驗豐富的管理者一起努力實現有意義的股權價值創造。正如我們過去所說的。隨著我們中低端市場投資組合公司隨著時間的推移表現良好，它們自然會利用營運產生的自由現金流來去槓桿化。這使我們與中低端市場投資組合管理團隊合作夥伴能夠從投資組合公司償債後現金流的大部分中受益，這些現金流可用於分配給股權所有者。鑑於我們中低階市場投資組合的實力和品質以及我們許多公司的長期持有期，我們預計股息收入將繼續成為我們 2024 年業績的重要貢獻者。此外，這種去槓桿化，加上我們中低階市場投資組合公司整體強勁的基本營運業績，使我們能夠在 2023 年為中低階市場投資組合實現 7,200 萬美元的淨公允價值增值。我們中低階市場股權投資帶來的這種好處在 BDC 中是獨一無二的，我們的公允價值升值可以抵消損失，這自然會出現在我們的投資策略中。鑑於我們投資的是非投資等級資產類別，我們未實現的股票升值也為主街資產淨值提供了潛在的上漲空間，而其他 BDC 的投資策略根本沒有我想介紹的最後一個重要領域我們2023 年的成就源自於我們的私人信貸團隊在這一年中所做的令人印象深刻的貢獻。我們的私人信貸團隊繼續執行我們的策略，投入大量資源來發展我們業務的私人貸款部門，同時淡化我們的中間市場投資組合，提醒一下，其中包括對較大銀團貸款的投資，我們有目的和有意的策略轉變過去六年來增長我們的私人貸款投資組合主要是因為我們相信存在一個有吸引力且不斷增長的直接貸款環境，並且私人貸款投資為MainStreet 和我們資產管理的客戶提供了非常有吸引力的風險調整回報狀況商業。2023 年期間，Main Street 在我們的私人貸款策略上投資了5.07 億美元，同時由於年內的這些投資活動，我們的中間市場投資組合按成本減少了27%，但我們的私人貸款組合占我們總投資的39%。截至年底，我們的中間市場投資組合下降了 300 個基點，僅占我們以成本計算的總投資的 8%。正如 Dwayne 先前所討論的，我們的私人貸款能力也支持我們繼續發展資產管理業務的關鍵策略目標。截至12月31日，我們對涵蓋50多個不同行業的190家公司進行了投資，其中最大的投資組合公司（不包括外部投資經理）僅占我們全年總投資收入的3.7%，占我們總投資組合的3.5%以公允價值計算。截至年底，我們的大部分投資組合僅占我們收入和資產的不到 1%。

Now turning to our investment activity. In the fourth quarter, we made total investments in our lower middle market portfolio of $92 million, including investments of $68 million in two new lower middle market portfolio companies, which after aggregate repayments on debt investments and return of invested equity capital and a decrease in cost cases due to a realized loss resulted in net increase in our lower middle market portfolio of 66 million. During the quarter, we also completed $160 million in total private loan investments, which after aggregate repayments and sales of debt investments and a decrease in cost basis due to a realized loss resulted in a net decrease in our private loan portfolio of $113 million.

現在轉向我們的投資活動。第四季度，我們對中低端市場投資組合的總投資為9,200 萬美元，其中包括對兩家新的中低端市場投資組合公司的投資6,800 萬美元，這是在債務投資和投資股本資本回報總額以及因已實現損失而導致的成本案例導致我們的中低端市場投資組合淨增加 6,600 萬美元。本季度，我們也完成了 1.6 億美元的私人貸款投資總額，在債務投資的總償還和出售以及因已實現損失導致成本基礎下降之後，我們的私人貸款投資組合淨減少了 1.13 億美元。

Finally, during the quarter, we had a net decrease in our middle market portfolio of 50 million as a result of our continued focus to deemphasize this strategy and portfolio at year end our lower middle market portfolio included investments in 80 companies representing $2.3 billion of fair value, which is 27% above our related cost basis. We had investments in 87 companies in our private loan portfolio, representing 1.5 billion of fair value in our middle market portfolio. We had investments in 23 companies representing $244 million of fair value. The total investment portfolio at fair value at year end was 15% above our related cost basis. Additional details in our investment portfolio at year end are included in the press release that we issued yesterday.

最後，在本季度，我們的中端市場投資組合淨減少了5,000 萬美元，這是由於我們在年底繼續專注於淡化這一策略和投資組合，我們的中低端市場投資組合包括對80 家公司的投資，價值23 億美元價值，比我們的相關成本基礎高出 27%。我們的私人貸款組合投資了 87 家公司，相當於我們的中間市場投資組合公允價值 15 億美元。我們對 23 家公司進行了投資，公允價值達 2.44 億美元。年末以公允價值計算的投資組合總額比我們的相關成本基礎高出 15%。我們年底投資組合的更多詳細資訊包含在我們昨天發布的新聞稿中。

With that, I'll turn the call over to Jesse to cover our financial results, capital structure, and liquidity position.

接下來，我將把電話轉給傑西，介紹我們的財務表現、資本結構和流動性狀況。

Thank you, David. To echo Duane's and David's comments, we are pleased with the operating results for the fourth quarter, which included a number of quarterly records and capped a year in which Main Street achieved records for net investment income, distribution, net investment income and net asset value each on a per share basis.

謝謝你，大衛。為了呼應杜安和大衛的評論，我們對第四季度的經營業績感到滿意，其中包括多項季度記錄，並限制了主街在淨投資收益、分配、淨投資收益和淨資產價值方面取得記錄的一年每個均以每股為基礎。

Our total investment income for the fourth quarter was $129.3 million, increasing by $15.4 million or 13.6% over the fourth quarter of 2022 and by $6.1 million or 4.9% from the third quarter of 2023. The positive momentum we experienced during the first three quarters continued in the fourth quarter and culminated in a year with strong levels of interest, dividend and fee income, which again demonstrated the continued strength of our differentiated investment and asset management strategies. The fourth quarter included elevated levels of certain income considered less consistent or nonrecurring in nature, including dividends from our equity investments, an accelerated prepayment repricing and other activity related to our debt investments in the aggregate these items totaled $5.3 million and were comparable to the average of the prior four quarters were 1.1 million higher than such items in the fourth quarter 2022 and $4.7 million higher than the third quarter of 2023. Interest income increased by 14.4 million from a year ago and $1.3 million over the third quarter. The increase over the prior year was driven primarily by increases in benchmark index rates, net investment activity and 2.3 million, an increase accelerated OID income. The increase over the third quarter was primarily driven by $3.1 million increase in accelerated OID income, partially offset by decreased levels of interest-bearing debt investments at quarter end as a result of elevated levels of repayments offsetting new and follow-on investments.

我們第四季的總投資收入為 1.293 億美元，比 2022 年第四季增加 1,540 萬美元，增幅 13.6%，比 2023 年第三季增加 610 萬美元，增幅 4.9%。前三季的積極勢頭在第四季度得到延續，並在這一年中實現了強勁的利息、股息和費用收入水平，這再次證明了我們差異化投資和資產管理策略的持續優勢。第四季度某些被認為不太一致或非經常性的收入水平有所提高，包括來自我們股權投資的股息、加速的預付款重新定價以及與我們的債務投資相關的其他活動，這些項目總計530萬美元，與平均水平相當前四個季度的此類項目比 2022 年第四季增加了 110 萬美元，比 2023 年第三季增加了 470 萬美元。利息收入較去年同期增加 1,440 萬美元，較第三季增加 130 萬美元。與前一年相比的成長主要是由基準指數利率、淨投資活動和 230 萬美元加速 OID 收入的成長所推動的。第三季的成長主要是由 OID 收入加速成長 310 萬美元推動的，但由於還款水準提高抵消了新的和後續投資，季度末有息債務投資水準下降，部分抵消了這一成長。

Dividend income increased by 1.4 million or 6.1% over a year ago. Including a 1.2 million decrease in unusual or nonrecurring dividends and increased by 2.6 million or 12.2% from the third quarter, including a $0.5 million increase in unusual or nonrecurring dividends. Increases and dividend income are a result of the continued underlying strength of our portfolio companies and the benefits from our asset management business fee income was comparable to year ago and increased by 2.2 million from the third quarter, driven by closing fees resulting from an increased investment activity in our lower middle market investment strategy and increased prepayment fees driven by repayment activity in our private loan portfolio. Prepayment and other fee income considered nonrecurring was comparable to year ago and increased by $1.2 million from the third quarter 2023. Our operating expenses increased by 1.2 million over the fourth quarter of 2020 to largely driven by increases in interest expense and compensation related expenses, partially offset by an increase in expenses allocated to the external investment manager. The ratio of our total operating expenses, excluding interest expense, as a percentage of our average total assets was 1.3% for both the quarter on an annualized basis and the year, it continues to be amongst the lowest in our industry. Our external investment manager contributed 9.2 million to our net investment income during the fourth quarter, an increase of $2.2 million from the same quarter a year ago, which resulted in a total of 33.4 million for the year, representing an increase of $11.1 million or 50% over the prior year. The manager earn 3.8 million in incentive fees during the quarter and 13.4 million for the year, increasing by $1.4 million and $10.9 million, respectively, over the same periods in the prior year as a result of the positive performance of the assets under management MANAGER ended the quarter with total assets under management of 1.5 billion. During the quarter, we recorded net fair value appreciation, including net realized losses and net unrealized appreciation on the investment portfolio of $48.2 million. This increase was driven by net appreciation across each of our investment strategies, largely driven by the continued positive performance of certain of our portfolio companies and the impact from changes in market rents. The increase in the fair value of our and external investment manager was a result of a combination of increases in the fees generated by the external investment manager and the valuation multiples of publicly traded peers, which we use as one of the benchmarks for valuation purposes, we ended the fourth quarter with investments on nonaccrual status comprising approximately 0.6% of the total investment portfolio at fair value and approximately 2.3% of costs. Net asset value or NAV, increased by $0.87 per share over the third quarter and by $2.34 or 8.7% when compared to a year ago to a record NAV per share of $29 and $0.22. At year end, our regulatory debt to equity leverage calculated as total debt, excluding our SBIC debentures divided by net asset value, was 0.59 and our regulatory asset cover coverage ratio was 2.69, both intentionally more conservative than our long-term target ranges of 0.8 to 0.9 times and 2.1 to 2.25 times. During the fourth quarter, we expanded our total commitments under the SPV facility from 255 million to $430 million and raised $38 million from equity issuances under our at-the-market program. In January of this year, we issued 350 million of unsecured notes with a coupon rate of 6.95% maturing in March 2029 and utilized the proceeds to repay outstanding borrowings under our credit facilities. We currently intend to fund the repayment of our May 2024 notes at maturity, primarily through borrowings under the credit facilities. After giving effect to the capital activities in 2023, the issuance of the March 2020 Note nine notes and the upcoming repayment of our May 2024 notes. We entered 2224 with strong liquidity, including cash and availability on our credit facilities in excess of 1 billion. We continue to believe that our conservative leverage, strong liquidity and continued access to capital are significant strengths that have us well positioned for the future and allow us to continue to execute our investment strategy and growth of our investment portfolio. With this current level of liquidity, we expect to fund our net new investment activity in 2024 through a greater proportion of debt financing. And as such, we would expect leverage to increase during the course of the year. However, we expect to continue to operate through the year and leverage levels more conservative than our long-term targets.

股息收入較上年同期增加140萬，成長6.1%。其中，非常規或非經常性股息減少 120 萬美元，較第三季增加 260 萬美元，即 12.2%，其中非常規或非經常性股息增加 50 萬美元。增加和股息收入是由於我們的投資組合公司持續的潛在實力，以及我們的資產管理業務的費用收入與去年同期相當，並且在投資增加帶來的結算費用的推動下，較第三季度增加了220萬我們的中低端市場投資策略的活動以及我們私人貸款組合中的還款活動推動的預付款費用增加。預付款項和其他被視為非經常性的費用收入與去年同期相當，比 2023 年第三季增加了 120 萬美元。我們的營運費用比 2020 年第四季增加了 120 萬美元，主要是由於利息費用和薪酬相關費用的增加，部分被分配給外部投資經理的費用增加所抵消。以年率計算，本季和全年的總營運費用（不包括利息費用）佔平均總資產的比例均為 1.3%，繼續處於行業最低水準。我們的外部投資經理在第四季度為我們的淨投資收入貢獻了 920 萬美元，比去年同期增加了 220 萬美元，導致全年總計 3,340 萬美元，增加了 1,110 萬美元或 50 % 較上年增加。由於所管理資產的積極表現，管理人本季度賺取了 380 萬美元的獎勵費，全年賺取了 1,340 萬美元的獎勵費，比上年同期分別增加了 140 萬美元和 1,090 萬美元。本季度管理總資產達15億。本季度，我們記錄了投資組合 4,820 萬美元的淨公允價值增值，包括已實現淨虧損和未實現淨增值。這一成長是由我們每項投資策略的淨增值所推動的，主要是由我們某些投資組合公司的持續積極績效以及市場租金變化的影響所推動的。我們和外部投資管理人的公允價值的增加是外部投資管理人產生的費用和公開交易同行的估值倍數（我們將其用作估值目的基準之一）相結合的結果，截至第四季度末，我們的非應計狀態投資約佔以公允價值計算的總投資組合的0.6%，約佔成本的2.3%。第三季每股淨資產價值 (NAV) 成長 0.87 美元，較去年同期成長 2.34 美元，或 8.7%，每股資產淨值創歷史新高，分別為 29 美元和 0.22 美元。截至年底，我們的監管債務股本槓桿率以總債務（不包括我們的SBIC 債券）除以資產淨值計算，為0.59，我們的監管資產覆蓋率為2.69，兩者都比我們0.8 的長期目標範圍更加保守。至0.9倍及2.1至2.25倍。第四季度，我們將 SPV 融資下的承諾總額從 2.55 億美元擴大到 4.3 億美元，並根據我們的市場計劃透過股票發行籌集了 3,800 萬美元。今年 1 月，我們發行了 3.5 億張無抵押票據，票面利率為 6.95%，將於 2029 年 3 月到期，並利用所得資金償還信貸額度下的未償還借款。我們目前打算主要透過信貸安排下的借款為 2024 年 5 月到期票據的償還提供資金。2023年資本活動生效後，發行2020年3月票據九張票據以及即將償還2024年5月票據。進入 2224 年時，我們的流動性強勁，包括現金和可用信貸額度超過 10 億。我們仍然相信，我們保守的槓桿率、強大的流動性和持續獲得資本的機會是我們的重要優勢，使我們能夠為未來做好準備，並使我們能夠繼續執行我們的投資策略和投資組合的成長。在目前的流動性水準下，我們預計將透過更大比例的債務融資為 2024 年的淨新投資活動提供資金。因此，我們預期槓桿率在年內將會增加。然而，我們預計今年將繼續運營，槓桿水平比我們的長期目標更保守。

Coming back to our operating results. As a result of our strong performance for the quarter and year, our return on equity for the fourth quarter was 22.9% on an annualized basis and 18.8% for the year. Eni per share for the quarter of $1.12 exceeded the DNII. per share for the fourth quarter last year by $0.09 or 8.7% and exceeded the DNII. per share for the third quarter by $0.08 or 7.7%. The combined impact of certain investment income considered less consistent or nonrecurring in nature on a per share basis was comparable to the average of last four quarters, $0.01 per share above the same quarter a year ago, and $0.06 per share above the third quarter.

回到我們的經營績效。由於我們本季和本年度的強勁表現，我們第四季的年化股本回報率為 22.9%，全年股本回報率為 18.8%。埃尼集團本季每股收益為 1.12 美元，超過了 DNII。去年第四季每股收益上漲了 0.09 美元，或 8.7%，超過了 DNII。第三季每股收益上漲 0.08 美元，成長 7.7%。某些被認為不太一致或非經常性的投資收益的綜合影響，按每股計算，與過去四個季度的平均水平相當，每股比去年同期高0.01 美元，比第三季度每股高0.06美元。

For the year. These items were $0.15 per share above 2022 levels. The NII per share for the quarter exceeded total regular monthly dividends per share paid to our shareholders in the fourth quarter by $0.415 per share or approximately 59%. Total dividends paid for the year were $3 $0.695 per share including $0.95 per share in supplemental dividends, an increase of 25% of our total dividends paid are in 2022. This week, our Board approved a supplemental dividend of $0.3 per share payable in March 2024. With a supplemental dividend total declared dividends for the first quarter of 2024 or $1.2 per share, representing a 4.1% increase over the total dividends paid in the fourth quarter of 2023 and a 20% increase of the total dividends paid in the first quarter of last year. As we look forward, given the strength of our underlying portfolio, we expect another strong top line and earnings quarter in the first quarter 2024 with expected D&I of at least $1.6 per share, with the potential upside driven by the level of dividend income and portfolio investment activities during the quarter and we would also expect that we would recommend to our Board that had declared another supplemental dividend in the second quarter.

今年。這些項目每股比 2022 年水準高出 0.15 美元。本季每股 NII 超出第四季度支付給股東的每股定期月度股息總額 0.415 美元，約 59%。本年度支付的股息總額為每股 3 美元 0.695 美元，其中包括每股 0.95 美元的補充股息，2022 年支付的股息總額增加了 25%。本週，我們的董事會批准了 2024 年 3 月支付的每股 0.3 美元的補充股息。加上補充股息，2024年第一季宣派股息總額為每股1.2美元，較2023年第四季支付的股息總額增加4.1%，較去年第一季支付的股息總額增加20%年。展望未來，鑑於我們基礎投資組合的實力，我們預計 2024 年第一季將再次實現強勁的營收和獲利季度，預計每股 D&I 至少為 1.6 美元，股息收入和投資組合水平將推動潛在的上行空間本季的投資活動，我們也預期我們會向已在第二季宣布另一次補充股利的董事會推薦。

With that, I will now turn the call back over to the operator, so we can take any questions.

現在，我將把電話轉回接線員，以便我們回答任何問題。

(Operator Instructions) Robert Dodd, Raymond James.

（操作員說明）羅伯特·多德，雷蒙德·詹姆斯。

Hi, guys. Congratulations on the quarter or the first question on the asset management business. And I mean the largest contributor to that is still MSC Income Fund. Can you give us any update on your thought process regarding that businesses don't control it, but in terms of how that might be a shareholders, thereby end up with liquidity. And because this is a question that I think you've discussed it before, one of the possibilities eventually could be a fee cut there in commensurate with connection with other things. Do you think that's a likely go unlikely event during 2020 for the fee structure and the financial relationship that could change? Or is that if anything happens on that front?

嗨，大家好。恭喜本季還是資產管理業務第一題。我的意思是最大的貢獻者仍然是 MSC 收入基金。您能否向我們提供有關您的思考過程的任何最新信息，即企業不控制它，但就如何成為股東，從而最終獲得流動性而言。因為我認為您之前已經討論過這個問題，所以最終的可能性之一可能是與其他事情相稱的費用削減。您認為 2020 年費用結構和財務關係可能會改變嗎？或是如果這方面發生什麼事的話？

Robert, I think thanks for the question. I would say on MSC Income Fund, like you've heard us say before, we're obviously the adviser there, but the Board of MSC Income Fund will have a huge part in determining what the outcome is there. We are encouraged by some of the more recent activity here in 2024 with several finally going public through three new IPOs. Obviously, that's that's an opportunity from a space or an industry standpoint that hasn't been there for the last couple of years. So it's very encouraging to see that activity. And we will be having conversations with the MSC Income Fund Board about that activity in our next Board meeting to contemplate what it may mean for MSC Income Fund to your point on fees, I do think that the market, as evidenced by these more recent IPOs, has been requiring a lower base management fee than what we currently charge for charge to MSC Income Fund.

羅伯特，我想謝謝你的提問。我想說的是，關於 MSC 收入基金，就像您之前聽我們說​​過的那樣，我們顯然是那裡的顧問，但 MSC 收入基金董事會將在決定結果方面發揮重要作用。我們對 2024 年最近發生的一些活動感到鼓舞，其中一些活動最終透過三項新的 IPO 上市。顯然，從空間或行業的角度來看，這是過去幾年從未出現過的機會。所以看到這項活動非常令人鼓舞。我們將在下一次董事會會議上與 MSC 收入基金董事會就該活動進行對話，以考慮這對 MSC 收入基金對費用意味著什麼，我確實認為市場，正如這些最近的 IPO 所證明的那樣，一直要求低於我們目前向MSC 收入基金收取的基本管理費。

I will remind you that the strategy for MSC Income Fund is consistent with Main Street took, and it includes a combination of private credit private loan activities. That is more consistent with what you see for most others in the BDC industry, but also includes a healthy amount of lower middle market investment activity that we think is more akin or more consistent with a private equity investment strategy that would warrant in the marketplace, a higher fee structure, both on the the base annual fee as well as the incentive fees. I think that the conclusion on the fee will be driven by our conversations with the MSC Income Fund board, what the market would tell us if there was a desire to seek an IPO or have another liquidity event, and then how we look at the overall composition of that portfolio today and what we think the composition would be going forward. Those are the drivers of what we think happens long term with the fee structure.

我要提醒大家的是，MSC收入基金的策略與Main Street的策略是一致的，它包括私人信用私人貸款活動的組合。這與您在BDC 行業中看到的大多數其他人的情況更加一致，但也包括大量的中低端市場投資活動，我們認為這些活動與市場上值得保證的私募股權投資策略更相似或更一致，更高的費用結構，包括基本年費和獎勵費。我認為有關費用的結論將取決於我們與 MSC 收入基金董事會的對話、市場會告訴我們是否有尋求 IPO 或再次發生流動性事件的願望，以及我們如何看待整體情況。今天該投資組合的構成以及我們認為未來的構成。這些都是我們認為長期收費結構的驅動因素。

Got it. I appreciate that color. Thank you. I'm changing tack completely. You mentioned the lower middle market pipeline as average. It is an election year. It's possible the White House could could. So it didn't pass the Senate House as it could could flip on that are currently tax.

知道了。我很欣賞那種顏色。謝謝。我正在徹底改變策略。您提到中低階市場的管道是平均的。今年是選舉年。白宮可能可以。因此它沒有在參議院獲得通過，因為它可能會改變目前的稅收政策。

I'll move the sunset in 25. I mean, any of that business, the Des Moines market because a lot of what you do there is assistant in tax planning option for for people looking to transition, do you think the it being an election year and potential tax law changes getting back to kind of have an effect on the lower middle market businesses, demand and pipeline in maybe in second half of the year?

我將在25號移動日落。我的意思是，任何一個業務，得梅因市場，因為你在那裡做的很多事情都是為尋求過渡的人提供稅務規劃選項的助理，你認為這是一個選舉年，潛在的稅法變化會回到可能會在下半年對中低階市場業務、需求和管道產生影響嗎？

Yes, Robert, I'd say it's always hard to predict what impacts activities in Washington, whether it's an election or your tax rate changes or other changes, it's really hard to predict what those activities are, what impact they'll have on lower middle market activity, we can make arguments for those types of activities, driving increased demand for individual owner operators and their families or partners that own a business could drive them to you to be more active or you have a stronger desire for a transaction that could also result in more and certainly in the marketplace and a view that if someone goes to market, they're not going to realize full valuation. So they may be compliant more compelled to have to wait until after an election or after any of those changes take place to see what the impact on the marketplaces. And as you've heard us say in the past, we do think that what we provide from a financing standpoint and a partnership standpoint to our lower middle market companies is very, very different. We think the solution it can and should be and in the past has been applicable to all types of markets, whether it's a very good productive market. If it's a market that's got more uncertainty, whether that's economic uncertainty, the tax rate change and certainly or political uncertainty. So we continue to be confident that our lower middle market strategy will be applicable in all those markets, but it's really hard to predict what happens in Washington and what impact that will have on overall deal flow activity and specifically deal flow activity in the lower middle market strategy. Dave and I covered a lot going on if you would add anything to that.

是的，羅伯特，我想說，總是很難預測什麼會影響華盛頓的活動，無論是選舉還是稅率變化或其他變化，真的很難預測這些活動是什麼，它們會對較低水平產生什麼影響中間市場活動，我們可以為這些類型的活動提出論據，推動對個體業主經營者及其家庭或擁有企業的合作夥伴的需求增加，可能會促使他們更加積極地進行交易，或者您對交易有更強烈的願望，可以當然，這也會導致市場上產生更多的結果，並產生一種觀點，即如果有人進入市場，他們將無法實現全部估值。因此，他們可能不得不等到選舉之後或發生任何這些變化之後才能看到對市場的影響。正如您過去聽到我們所說的那樣，我們確實認為，從融資的角度和合作夥伴的角度來看，我們為中低端市場公司提供的服務是非常非常不同的。我們認為這個解決方案可以而且應該並且在過去已經適用於所有類型的市場，無論它是一個非常好的生產力市場。如果這是一個存在更多不確定性的市場，無論是經濟不確定性、稅率變化，當然還是政治不確定性。因此，我們仍然相信我們的中低端市場策略將適用於所有這些市場，但很難預測華盛頓會發生什麼以及這將對整體交易流活動，特別是中低端市場的交易流活動產生什麼影響市場策略。戴夫和我介紹了很多正在發生的事情，如果你願意補充的話。

All I'd add is that, Robert, when we think about the landscape, it yet the election has an impact on outcomes. As does last year, we had rising interest rates and concerns about visibility towards that so we always have some various environmental issues that we're looking at any one moment in time. But I'd say that interest rates stabilizing a bit as they have probably has a positive impact at night, we are hoping will offset any concerns relative to election year.

我要補充的是，羅伯特，當我們考慮情況時，選舉會對結果產生影響。與去年一樣，我們的利率不斷上升，並且對利率的可見性感到擔憂，因此我們總是會隨時關註一些各種環境問題。但我想說，利率稍微穩定下來，因為它們可能會在夜間產生積極影響，我們希望能夠抵消與選舉年相關的任何擔憂。

Got it. Thank you for the color on that one more, if I could sneak 1.2 to that point with stabilizing interest rates. I mean, you indicated you're planning to take up leverage somewhat this year. I mean, you've been running at and cut intentionally low on still producing high returns. That is the indication that you expect leverage to go up as an indication of comfort that you feel better about the interest rate environment where the economy is or is there some other factor that drove that decision to maybe increase leverage a little bit from the low level currently?

知道了。如果我能在利率穩定的情況下把利率推到 1.2 的話，謝謝你再給我一個顏色。我的意思是，您表示今年計劃增加一些槓桿。我的意思是，你一直在運行並故意降低價格，但仍能產生高回報。這表明您預計槓桿率會上升，表明您對經濟所處的利率環境感覺更好，或者是否有其他因素促使您決定從低水平稍微提高槓桿率現在？

Sure. Robert, you as you've heard us say in the past week, we've always viewed our ability to produce shareholder returns is driven more based upon investment strategy and our approach to the marketplace and less on financial engineering through leverage so we've always wanted to and have always consistently maintained a very conservative, conservative leverage profile and a significant liquidity position. And we've we don't expect that to change going forward, whether that's in 2024. Anytime after that, we have been intentionally more conservative for the last 12 months or so. And that was really less driven by the overall economy or other kind of portfolio related issues and more based on the fact that we had in May of 2024 have a May of 2024 maturity, and we wanted to create maximum flexibility to deal with that. And obviously, we've dealt with that here in the first 1 to 2024 with a new unsecured debt issuance. I'd say that pressure is a lot less than it would have been over the last 12 months. So that would really be the driver for us taking leverage up some but still being conservative and still likely ending the year below our leverage targets kind of pace.

當然。羅伯特，正如您在過去一周聽到我們所說的那樣，我們一直認為我們產生股東回報的能力更多地取決於投資策略和我們的市場方法，而不是通過槓桿進行金融工程，因此我們一直希望並且始終堅持保持非常保守、保守的槓桿狀況和重要的流動性部位。我們預計這種情況未來不會改變，無論是在 2024 年。此後的任何時候，我們在過去 12 個月左右的時間裡都會有意地更加保守。這實際上較少受到整體經濟或其他類型的投資組合相關問題的驅動，更多的是基於我們在2024 年5 月擁有2024 年5 月的到期日這一事實，我們希望創造最大的靈活性來處理這一問題。顯然，我們已經在 2024 年的頭一年透過發行新的無擔保債務來解決這個問題。我想說，壓力比過去 12 個月小得多。因此，這確實是我們提高槓桿率的驅動力，但仍保持保守，並且在年底時仍可能低於我們的槓桿率目標。

Thank you.

謝謝。

Thank you.

謝謝。

Bryce Rowe, B. Riley.

布萊斯·羅，B.萊利。

Good morning. Dwayne, just maybe a follow-up to some of Robert's questioning around the external manager. Um, I know you all in the pretty recent past have have have run some tender tender processes to tried to give those particular shareholders some some liquidity have yet. Have you did you continue to do that here at the end of 2023?

早安.德韋恩（Dwayne），也許只是羅伯特對外部經理提出的一些質疑的後續。嗯，我知道你們最近都進行了一些招標程序，試圖為這些特定股東提供一些流動性。2023 年底你還繼續這樣做嗎？

Yes, I see to your point, we have introduced that over the last 12 months and continue to be active in providing liquidity options to the shareholders of MSC Income Fund. Those those liquidity options have been through the consistent quarterly redemption that is funded by the funds DRIP proceeds. And then we've added the Dutch auction that I think we're now in our we're executing our fourth iteration of that. So we think those those activities have been productive and we continue to think it's a good good activity for us. Prime provide additional liquidity options for those shareholders who have a heightened need or desire for liquidity. So that was the that was the intent or the goal behind those activities, and we think they've been successful or productive from our perspective.

是的，我明白你的觀點，我們在過去 12 個月中已經介紹了這一點，並將繼續積極為 MSC 收入基金的股東提供流動性選擇。這些流動性選擇是透過持續的季度贖回來實現的，贖回資金由 DRIP 收益基金提供資金。然後我們添加了荷蘭式拍賣，我認為我們現在正在執行第四次迭代。因此，我們認為這些活動很有成效，並且我們仍然認為這對我們來說是一項很好的活動。Prime 為那些對流動性有更高需求或渴望的股東提供額外的流動性選擇。這就是這些活動背後的意圖或目標，從我們的角度來看，我們認為它們是成功的或有成效的。

Okay. That's helpful. And then as we think about the valuation, obviously, you've seen a material increase in the external manager's valuation in 23 and even in the fourth quarter.

好的。這很有幫助。然後，當我們考慮估值時，顯然，您已經看到外部經理的估值在 23 年甚至第四季度出現了實質成長。

And in your prepared remarks, you talked about kind of a breakdown of increased assets under management, increased fee income and in market market based approach to that valuation, can you help us kind of think about what's what's driving the valuation of those three factors? What's what's the biggest biggest factor or is it or is it fairly well split between the three?

在您準備好的演講中，您談到了管理資產增加、費用收入增加以及基於市場的估值方法的細分，您能否幫助我們思考是什麼推動了這三個因素的估值？最大的因素是什麼，或者它是否在這三個因素之間很好地分配？

And I would say all three of those drivers are factors contributing to the increase in Q4. But if you were to go look at the publicly traded performance for asset managers. And I would say that in the fourth quarter there was a significant increase in those valuations and that would have been a significant contributor to the increase in our valuation in the fourth quarter. Just as a reminder, and we obviously don't use that as the only benchmark to drive our valuations. It's one of the inputs, but it is it is an input. So when you see those publicly traded peers increased significantly in value, we're going to we're going to see that come through our valuation.

我想說，這三個驅動因素都是導致第四季成長的因素。但如果你去看看資產管理公司的公開交易績效。我想說的是，在第四季度，這些估值顯著增加，這將是我們第四季估值增加的重要貢獻者。提醒一下，我們顯然不會將此作為推動估值的唯一基準。它是輸入之一，但它是輸入。因此，當你看到那些公開交易的同業的價值大幅增加時，我們將透過我們的估值看到這一點。

Got it. Okay. You mentioned continued kind of progress with private loan fund. Number two. Can you give us some numbers around around that progress?

知道了。好的。您提到民間借貸基金的持續進展。第二。您能給我們一些有關進展的數字嗎？

Sure. So the numbers at a year end, it was about $80 million of total LP equity commitments. So still not a huge number. But relative to where we were at this point in time on PLF. one, it is a significant increase and we continue to have what we think are very productive conversations with additional LP. So our goal is just to remind everyone is that we want that, that fund from an LP equity commitment standpoint to be somewhere between 103 hundred. As a reminder, 103 hundred million dollars of LP equity. As a reminder, PLF. one is just over 100. We hope to be something north of 150 or 200 with the max being 300 and and our activities over the next couple of quarters as we continue to you execute the fund raising activities for that fund, your they obviously would dictate how large we end up being from a from a LP equity commitment standpoint. And then just as a reminder, we think the marketplace will continue to allow kind of a one to one debt to equity leverage level. So if we successful at it, 150 million of equity, that's 300 million of assets. Obviously, if you go up to $300 million of equity than a 600 million of assets. But that's that have been the goal and intent and we're continuing to work on that as we as we move through the next couple of quarters.

當然。因此，年末的數字表明，有限合夥人股權承諾總額約為 8000 萬美元。所以仍然不是一個很大的數字。但相對於我們此時在 PLF 上的情況而言。第一，這是一個顯著的成長，我們繼續與其他 LP 進行我們認為非常富有成效的對話。因此，我們的目標只是提醒大家，從 LP 股權承諾的角度來看，我們希望該基金在 10,300 美元之間。提醒一下，103 億美元的 LP 股權。提醒一下，PLF。一個剛好超過100。我們希望能夠超過 150 或 200，最大為 300，並且我們在接下來的幾個季度中的活動，當我們繼續為該基金執行籌款活動時，他們顯然將決定我們最終的規模有多大從LP 股權承諾的角度來看。然後提醒一下，我們認為市場將繼續允許一對一的債務與權益槓桿水平。因此，如果我們成功的話，1.5 億股本，那就是 3 億資產。顯然，如果你的股本達到 3 億美元，那麼資產就超過 6 億美元。但這就是我們的目標和意圖，在接下來的幾個季度中，我們將繼續努力實現這一目標。

Got it. That's helpful. And then maybe last one for me. You all called out some nonaccrual levels. You're having come down quarter over quarter? And then also some of the realized exit activity in the lower middle market and private loan portfolios. Can you can you kind of I assume those kind of marry up together with lower nonaccruals being driven by some of that exit activity? If not, can you just help me think about that?

知道了。這很有幫助。然後也許是我的最後一個。你們都提出了一些非應計水準。你的業績逐季下降嗎？然後還有中低端市場和私人貸款組合中已實現的一些退出活動。我可以假設這些與較低的非應計費用是由某些退出活動所驅動的嗎？如果沒有的話，你能幫我想想嗎？

Sure. So maybe I'll give a couple of comments if Nick, who leads our private credit activities, if he wants to add on, he can add on here. So I would say of the EM, the nonaccrual activity, obviously, it's an improvement when you look at it quarter over quarter, I would say we're not super excited about it because it improved because of a realized loss in the quarter. So that most of that movement was driven by I think, has about a $15 million realized loss on a an investment that we restructured and it came off nonaccrual in the quarter and I think the repayment activity specifically on the private credit side, as you've heard us say in the past, we think we've got a very, very attractive high-quality portfolio. And despite the continued uncertainty in the marketplace. We just saw a number of names, some of which, frankly we hadn't even been in that long, 12 or 18 months. A number of things that had performed really, really well, that either went through an M&A transaction or just went out and refinanced us with a with a significantly lower cost of capital from that replacement lender. So it's kind of a good embedded. It shows the very high quality of our portfolio. But obviously you had elevated repayments, which which is not good from a from an interest income standpoint when we look at the portfolio going forward. But Nick, if you'd add anything to that in Brazil only I'd add there is most of those repayments really came in late in the quarter.

當然。因此，如果領導我們私人信貸活動的尼克想要補充的話，我可能會發表一些評論，他可以在這裡補充。因此，我想說的是，對於新興市場，即非應計活動，顯然，當你逐季度查看它時，這是一種改善，我想說我們對此並不感到非常興奮，因為它的改善是因為本季實現了虧損。因此，我認為，這一變動的大部分是由我們重組的一項投資實現了約1500 萬美元的已實現損失，並且在本季度實現了非應計損失，我認為特別是在私人信貸方面的還款活動，正如您所說的過去聽我們說過，我們認為我們擁有非常非常有吸引力的高品質投資組合。儘管市場持續存在不確定性。我們只看到了一些名字，坦白說，其中一些名字我們甚至沒有那麼長，12 或 18 個月。許多表現非常非常好的事情，要么通過併購交易，要么只是從替代貸方那裡以明顯較低的資本成本為我們提供再融資。所以這是一個很好的嵌入式。它顯示了我們產品組合的高品質。但顯然，你的還款金額增加了，當我們考慮未來的投資組合時，從利息收入的角度來看，這並不是一件好事。但是尼克，如果您要在巴西添加任何內容，我會補充說，大部分還款確實是在本季末支付的。

And so from a from a bridge perspective, we're where we wanted to be for the fourth quarter. And I'd say those names are names we've targeted to get repaid in 24 states move into kind of late December, early December versus the first or second quarter of '24. And so I think from a where we want to be. I think we need to spend some money here in the first quarter will be back to where we balance should be.

因此，從橋樑的角度來看，我們達到了第四季的預期目標。我想說的是，這些名字是我們的目標是在 24 個州獲得償還，時間大約是 12 月底、12 月初，而不是 24 年第一季或第二季。所以我從我們想要的地方思考。我認為我們需要在第一季在這裡花一些錢才能回到我們應有的平衡狀態。

Yes. I mean, I think we've heard on other BDC calls that the expectation is for increased activity from a prepayment perspective, a repayment perspective in 24. Do you all share that sentiment?

是的。我的意思是，我認為我們在 BDC 的其他電話中聽到，從預付款的角度和 24 月還款的角度來看，預期活動將會增加。大家也有同樣的感受嗎？

We do think if you look at our total repayments in the private loan port product, private loan side of the business for the first three quarters, we were, I'd say, Well, under average what you'd usually see the fourth quarter picked that up. And so for the year, we probably hit our average repayment level we've seen in the last decade, but we'd expect that to continue more than average level of basically a one-third repayment rate on an annual basis.

我們確實認為，如果你看看我們前三個季度的私人貸款端口產品、私人貸款業務方面的總還款額，我會說，嗯，低於你通常在第四季度看到的平均水平拿起那個。因此，今年，我們可能會達到過去十年的平均還款水平，但我們預計這一水平將繼續高於每年基本上三分之一還款率的平均水平。

Got it. Okay. Thanks for taking the questions. Appreciate it.

知道了。好的。感謝您提出問題。欣賞它。

Thanks, Bryce.

謝謝，布萊斯。

Mark Hughes, Truist Securities.

馬克休斯，Truist 證券公司。

Thank you good morning.

謝謝你早安。

Good morning, Mark.

早上好，馬克。

On the on the private loan portfolio, the assets were down in the quarter, more repayments. I think we've been talking about that. What's your feeling about the early 2024? Is that going to be back end through the positive territory?

就民間貸款組合而言，本季資產下降，還款增加。我想我們一直在談論這個。您對2024年初有何感想？這會是透過正面領域的後端嗎？

We appreciate the question, Marcus, and I think where we're at to date for the quarter, we'd be close to flat from Q3. So we're up for the first quarter, and we'd expect that to continue to grow and really be back to a a flat from Q3, up from Q3.

馬庫斯，我們感謝這個問題，我認為本季度迄今為止的情況，與第三季度相比將接近持平。因此，我們預計第一季將繼續成長，並真正恢復到與第三季持平的水平，高於第三季。

Very good. And then the other follow on investment activity. How are you seeing that trending? Is that a reasonable indicator of underlying economic health of that 10 to I'm sure it varies in terms of rationale, but are you seeing any trends there that are worth noting? And does that imply anything about the broader picture? Again, this is a follow on investment activity with your existing portfolio companies.

非常好。然後其他人跟進投資活動。您如何看待這種趨勢？這是衡量這 10 個經濟體基本健康狀況的合理指標嗎？我確信它的原理有所不同，但您是否看到其中有任何值得注意的趨勢？這是否意味著更廣闊的前景？同樣，這是對現有投資組合公司的後續投資活動。

Sure, Mark. When you look at our lower middle market portfolio, you've heard us say this, we have a number of companies in that portfolio that had been and continue to perform very, very, very well. When you look at some of those companies, they also have had an increased appetite to grow through acquisitions to supplement our compound their organic growth. So we've we had one portfolio company in the fourth quarter that was a meaningful follow-on probably news, 80 or 90% of the total follow-ons were in that one portfolio company that executed what we think is a highly attractive, very strategic acquisition.

當然，馬克。當您查看我們的中低端市場投資組合時，您會聽到我們這樣說，該投資組合中有許多公司的表現一直非常非常好。當你觀察其中一些公司時，你會發現他們也越來越有興趣透過收購來成長，以補充他們的有機成長。因此，我們在第四季度有一家投資組合公司，這可能是一個有意義的後續消息，所有後續事件中的80% 或90% 是在這家投資組合公司中，該公司執行了我們認為非常有吸引力、非常策略性收購。

If you look at the pipeline today, one of the things that and it makes us feel good about that investment pipeline is that we have a number of companies, multiple companies in the lower middle market portfolio. Again, most of them being in the upper end of our portfolio from a performance standpoint that are actively executing on on acquisition opportunities that would require additional debt financing for Mainstreet. We expect those to close in the in the fourth quarter. But obviously, there's a lot of pieces that have to come into place that we don't always control in order for that to happen. But we're encouraged by that activity. And if we're successful there, we think it'll benefit us significantly in Q1. But even more importantly, over the next 12 or 24 months as we really see the benefits of those acquisitions flow through the portfolio companies' results in our your fair value changes and hopefully additional dividend income in the future.

如果你看看今天的管道，讓我們對投資管道感到滿意的一件事是，我們在中低端市場投資組合中擁有許多公司、多家公司。同樣，從業績的角度來看，他們中的大多數人都處於我們投資組合的高端，他們正在積極執行收購機會，這將需要為 Mainstreet 提供額外的債務融資。我們預計這些將在第四季度完成。但顯然，為了實現這一目標，有很多我們並不總是能夠控制的部分必須到位。但我們對這項活動感到鼓舞。如果我們在那裡取得成功，我們認為這將使我們在第一季受益匪淺。但更重要的是，在接下來的12 或24 個月裡，我們確實看到這些收購的好處會透過投資組合公司的結果體現在我們的公允價值變化中，並希望在未來獲得額外的股息收入。

And then the external investment manager, you know, assuming things go as they have been and there's no material change, you described the 50% increase in the positive impact on NI, what's the what you have and line of sight on? Can you give us some sense of what the marginal effect is going to be here in 2024?

然後，外部投資經理，你知道，假設事情照常進行並且沒有重大變化，你描述了對 NI 的積極影響增加了 50%，你所擁有的和視線是什麼？能為我們介紹一下 2024 年的邊際效應嗎？

Morgan I may have missed it. I fully followed your question. Can you kind of give me a little more detail what your what's your what you're looking for?

摩根 我可能錯過了。我完全同意你的問題。您能給我更詳細的資訊嗎？您正在尋找什麼？

Yes, yes. Just the NII impact from the external investment manager, I think you said it was up, you know, the you went from 22 million to 33 million in 2023. If I heard that properly.

是的是的。只是外部投資經理對 NII 的影響，我想你說過，你知道，2023 年你從 2200 萬增加到 3300 萬。如果我沒聽錯的話。

Yes, I was just trying to get some sense of how you think that's going to trend in 2024.

是的，我只是想了解一下您對 2024 年趨勢的看法。

Sure. Thanks. Thanks, Mark. And I apologize I want to make sure I answered the question correctly on our side. If you look at 2023 as a whole and just give you kind of the highs and lows from a quarterly NII contribution standpoint, the low was just over $7.5 million. The high was 9.2 million, which that the high was in the was in the fourth quarter. The variability quarter to quarter is really driven by the incentive fees, probably not a big surprise. The base management fees, one of the reasons we find the asset management business so attractive as those base management fees, you don't really move much quarter to quarter. Obviously, as we as we grow additional clients and we grow additional AUM, you they will move over time. But quarter to quarter, they just don't move that much to the real driver. The real volatility is all driven by the incentive fees so that to the extent we continue to have favorable performance, you heard Jesse's of comments about our expectations at Main Street for the for the first quarter. As I said earlier, there's a lot of overlap between our portfolio and MSC Income Fund's portfolio. It's not it's not one or 100%, but you can apply a little bit of a read through from our results and our expectations to MSC Income Funds. And so given that we expect MSC Income Fund to continue to perform well and continue to generate positive contributions to us from an incentive fee standpoint, but the real productivity or growth year over year versus that $33 million number that you that you referenced is really going to be more dictated by the incentive fee coming off the performance of not just MSC Income Fund, but also the private loan funds that we manage and our ability to continue to produce positive results. There is going to it's going to really be the driver of that outcome.

當然。謝謝。謝謝，馬克。我很抱歉，我想確保我正確地回答了我們這邊的問題。如果你把 2023 年作為一個整體來看待，並從季度 NII 貢獻的角度來看高點和低點，那麼低點剛剛超過 750 萬美元。最高點為 920 萬，最高點出現在第四季。季度與季度之間的變化實際上是由激勵費用驅動的，這可能並不令人意外。基本管理費是我們發現資產管理業務如此有吸引力的原因之一，因為基本管理費實際上每季的變動並不大。顯然，隨著我們增加更多的客戶和增加更多的資產管理規模，他們會隨著時間的推移而移動。但每個季度，他們對真正的驅動力的影響並不大。真正的波動都是由激勵費用驅動的，因此，在我們繼續保持良好業績的範圍內，您聽到了傑西對我們對第一季主街預期的評論。正如我之前所說，我們的投資組合和 MSC 收入基金的投資組合之間有許多重疊之處。這不是 1 或 100%，但您可以稍微閱讀一下我們的結果以及我們對 MSC 收入基金的期望。因此，考慮到我們預計 MSC 收入基金將繼續表現良好，並從激勵費的角度繼續為我們做出積極貢獻，但與您提到的 3300 萬美元數字相比，實際生產力或同比增長確實在增加激勵費用不僅取決於MSC 收入基金的業績，還取決於我們管理的私人貸款基金以及我們持續產生正面成果的能力。它將真正成為這結果的驅動力。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

Eric Zwick. Hovde Group.

埃里克·茲威克。霍夫德集團。

Good morning, everyone. Just one question for me this morning. Given the fact that both the Fed and the futures market are projecting declines in short-term interest rates at some point during 2020 for obviously, the timing and magnitude remain up for debate. But wondering can you provide an update on your interest rate sensitivity, maybe in terms of the potential impact to DNII. per share for each 25 basis point reduction?

大家，早安。今天早上我只有一個問題。鑑於聯準會和期貨市場均預期短期利率將在 2020 年某個時候明顯下降，因此具體時間和幅度仍存在爭議。但想知道您能否提供有關您的利率敏感性的最新信息，也許是對 DNII 的潛在影響。每股每減少25個基點？

Sure.

當然。

Eric, thanks for the question, and thanks for joining us. This morning. And we like other, I think all the other BDCs that provide what we think is a pretty granular table, both in our SEC filings and in our investor presentation. So you'll you'll see that when we when we post all that later this morning. But in general, we have historically and continue to view our position to be a little less sensitive than other BDCs as purely attributable to the fact that our lower middle market strategy is predominantly fixed rate as opposed to floating, whereas most of the spaces, as you know, is 100%, if not 100%, close, 100% floating. So we do think we have a little bit less sensitivity. So we've not seen the same benefits that the space may have seen over the last 12 or 18 months. But if rates come down, we should we should see less of an impact going forward. But for your benefit if you look at our portfolio and our obligations as of 1231, 2023. So as of as of year end, a 25 basis point change would be just over $0.04 a year, I think it's about $0.045. So if you look at that and annualize it, you're going to get to $0.18 a year just remember that assumption is a very, very and your aggressive calculation because it assumes those rates change day one of the year. Obviously, given the curve, as you know, that wouldn't happen in practice, it also likely wouldn't happen at all. That will happen kind of on a core basis over the balance of the quarter and the year. So the impact will likely be lower than that. But that's the best way that we and I think the other BDCs have been able to deliver that interest rate sensitivity historically and continue that provid it today.

艾瑞克，謝謝你的提問，也謝謝你加入我們。今天早上。我們喜歡其他的，我認為所有其他的 BDC 都提供了我們認為非常精細的表格，無論是在我們的 SEC 文件中還是在我們的投資者演示中。所以當我們今天早上晚些時候發布所有這些內容時，您會看到這一點。但總的來說，我們歷來並繼續認為我們的立場比其他 BDC 稍微不那麼敏感，這純粹是因為我們的中低端市場策略主要是固定利率而不是浮動利率，而大多數空間，你知道，是100%，如果不是100%，接近，100%浮動。所以我們確實認為我們的敏感度有點低。因此，我們還沒有看到該領域在過去 12 或 18 個月中可能看到的相同的好處。但如果利率下降，我們應該會看到未來的影響較小。但為了您的利益，如果您查看我們截至 2023 年 1231 年的投資組合和義務。因此，截至年底，25 個基點的變化將每年略高於 0.04 美元，我認為約為 0.045 美元。因此，如果你看一下這一點並將其年化，你將得到每年0.18 美元，只需記住這個假設是一個非常非常激進的計算，因為它假設這些利率在一年中的第一天發生變化。顯然，正如您所知，考慮到曲線，這在實踐中不會發生，也可能根本不會發生。這將在本季度和年度剩餘時間的核心基礎上發生。因此，影響可能會低於這個數字。但這是我們和我認為其他 BDC 能夠在歷史上提供利率敏感性並在今天繼續提供的最佳方式。

Great. Thanks, Terry, and I appreciate the color that's all for me today.

偉大的。謝謝，特里，我很欣賞今天為我準備的顏色。

Thank you. Appreciate it.

謝謝。欣賞它。

That was the the the last question there. So again, we appreciate everyone's participation. Really appreciate the questions. We have responded to questions. So we appreciate that the individuals that they join and ask those questions, and we'll look forward to talking to everyone again, in May after our first quarter 2024 results were released.

這是最後一個問題。再次感謝大家的參與。真的很感謝這些問題。我們已經回答了問題。因此，我們感謝他們加入並提出這些問題的個人，我們期待在 5 月份 2024 年第一季業績發布後再次與大家交談。

And ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

女士們、先生們，感謝你們的參與。今天的電話會議到此結束。您可以斷開線路並度過美好的一天。