Main Street Capital Corp (MAIN) 2024 Q1 法說會逐字稿

Greetings, and welcome to the Main Street Capital first-quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Main Street Capital 第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Zach Vaughan. Thank you, Zach, you may begin.

現在我很高興向大家介紹你們的主持人扎克·沃恩。謝謝你，扎克，你可以開始了。

Thank you, operator, and good morning, everyone. Thank you for joining us for Main Street Capital Corporation's first-quarter 2024 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 2024 年第一季財報電話會議。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 first-quarter financial and operating results. This document is available on the Investor Relations section of the company's website at mainstcapital.com. A replay of today's call will be available beginning an hour after the completion of the call and will remain available until May 17. Information on how to access the replay was included in yesterday's release.

Main Street 昨天下午發布了一份新聞稿，詳細介紹了該公司第一季的財務和營運業績。本文件可在公司網站 mainstcapital.com 的投資者關係部分取得。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 5 月 17 日。有關如何存取重播的資訊已包含在昨天的發布中。

We also advise you that this conference call is being broadcast live through the Internet and can be accessed on the company's home page. Please note that information reported on this call speaks only as of today, May 10, 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.

我們也通知您，本次電話會議正在透過網路進行現場直播，您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 5 月 10 日），因此，請注意，時間敏感的資訊在任何重播收聽或文字記錄閱讀時可能不再準確。

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.

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，包括但不限於本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。 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 DNII. DNII is net investment income, or NII, as determined in accordance with US Generally Accepted Accounting Principles or GAAP, excluding the impact of non-cash compensation expenses. Management believes that presenting DNII and the related per share amount are useful and appropriate supplemental disclosures for analyzing Main Street's financial performance since non-cash compensation expenses do not result in a net cash impact to Main Street 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.

在今天的電話會議上，管理階層將討論非公認會計準則財務指標，包括可分配淨投資收益（DNII）。DNII 是根據美國公認會計準則或 GAAP 確定的淨投資收入或 NII，不包括非現金補償費用的影響。管理層認為，提供 DNII 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 Main Street 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 財務指標的調整表。

Two additional key performance indicators that management will be discussing on this call are net asset value, or NAV, and return on equity, or ROE. 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. 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.

管理階層將在本次電話會議上討論的另外兩個關鍵績效指標是淨資產價值（NAV）和股本回報率（ROE）。資產淨值定義為總資產減去總負債，也以每股為基礎報告。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。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, and we hope that everyone is 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，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. We're also providing 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.

在今天的電話會議上，我將按照慣例提供有關本季業績的最新情況。我們還提供有關我們的資產管理活動的最新資訊、我們最近的股息聲明、我們對未來股息的預期、我們最近的投資活動和當前的投資管道，以及其他一些值得注意的更新。

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 second quarter of 2024, after which we'll be happy to take your questions.

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、資本結構和槓桿率以及我們對2024 年第二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 are pleased with our first-quarter results, which were highlighted by an annualized return on equity of 17.2% for the quarter, a new record for NAV per share and NII per share and DNII per share that significantly exceeded the dividends paid to our shareholders. In addition, our positive performance in the quarter increased our return on equity for the trailing 12-month period to an impressive 19.3%.

我們對第一季的業績感到滿意，該季度的年化股本回報率為 17.2%，每股 NAV、每股 NII 和 DNII 均創下新紀錄，遠超過支付給股東的股息。此外，本季的正面表現使我們過去 12 個月的股本回報率達到令人印象深刻的 19.3%。

Our DNII per share in the first quarter exceeded the monthly dividends paid to our shareholders by 54% and the total dividends paid to our shareholders by 9%, representing a significant level of dividend coverage. And this is after increasing the total dividends paid to our shareholders in the first quarter by 20% as compared to the same period of last year.

第一季每股DNII超過支付給股東的月股利54%，超過支付給股東的股利總額9%，股利覆蓋率很高。這是第一季向股東支付的股利總額比去年同期增加20%之後的結果。

We believe that these positive results demonstrate the continued and sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business, and the continued underlying strength and quality of our portfolio companies.

我們相信，這些積極的業績體現了我們整體平台的持續和可持續的實力、我們差異化和多元化投資策略的優勢、我們資產管理業務的獨特貢獻以及我們被投資公司持續的基礎實力和品質。

We are also very pleased that we generated growth in both our lower middle market and private loan investment portfolios and ended the quarter with attractive pipelines in both strategies, which we believe will be helpful as we work to maintain our positive momentum from the last few quarters into the future.

我們也非常高興的是，我們在中低端市場和私人貸款投資組合方面都實現了增長，並在本季度結束時在這兩種策略中都提供了有吸引力的渠道，我們相信這將有助於我們努力保持過去幾季的積極勢頭進入未來。

We remain encouraged by the continued favorable performance of our diversified lower middle market and private loan investment strategies and 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.

我們對多元化中低端市場和私人貸款投資策略的持續良好表現仍然感到鼓舞，並且仍然相信這些策略，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，將使我們能夠繼續交付未來為我們的股東帶來卓越的成果。

Additionally, with the continued support of our long-term lender relationships and the benefits of our January investment-grade debt offering, we continue to maintain strong liquidity, a conservative leverage profile, and more-than-adequate flexibility to fund our current prospects for growth in both our lower middle market and private loan investment strategies. These positive results, combined with our favorable outlook for the second quarter, resulted in our recommendations to our Board of Directors for our most recent dividend announcements, which I'll discuss in more detail later.

此外，在我們長期貸款人關係的持續支持以及一月份投資級債務發行的好處下，我們繼續保持強勁的流動性、保守的槓桿狀況以及足夠的靈活性，為我們當前的前景提供資金我們的中低端市場和私人貸款投資策略的成長。這些正面的業績，加上我們對第二季的樂觀前景，導致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 increased in the quarter primarily due to the impact of net fair value increases in our investment portfolio and our retention of excess NII above our total dividends paid, which Jesse will discuss in more detail.

我們的每股資產淨值在本季度有所增長，主要是由於我們的投資組合中淨公允價值增加的影響以及我們保留高於支付總股息的超額NII，傑西將對此進行更詳細的討論。

The continued favorable performance of the majority of our lower middle market portfolio companies resulted in another quarter of significant net fair value appreciation in the equity investments in the lower middle market portfolio, and we are excited about the follow-on investments we made in several of our high-performing lower middle market portfolio companies.

我們大多數中低階市場投資組合公司的持續良好表現導致中低端市場投資組合的股權投資又一個季度出現顯著的淨公允價值增值，我們對我們在幾個中低端市場進行的後續投資感到興奮我們的高績效中低端市場投資組合公司。

During the quarter, we supported three lower middle market portfolio companies in completing strategic acquisitions, each of which were funded by follow-on debt investments by Main Street for a total of $52 million of incremental debt investments in these portfolio companies. We expect that these follow-on investments will help drive additional fair value appreciation in these portfolio companies in future quarters in addition to the highly attractive interest income provided by these debt investments.

本季度，我們支持三個中低端市場的投資組合公司完成策略性收購，每項收購均由 Main Street 的後續債務投資提供資金，為這些投資組合公司提供了總計 5,200 萬美元的增量債務投資。我們預計，除了這些債務投資提供的極具吸引力的利息收入外，這些後續投資將有助於推動這些投資組合公司在未來幾季的公允價值進一步升值。

We've also seen increased interest from potential buyers in several of our lower middle market portfolio companies that could lead to favorable realizations over the next few quarters and which we believe highlights the strength and quality of our portfolio companies.

我們也看到潛在買家對我們的幾家中低端市場投資組合公司的興趣增加，這可能會在未來幾個季度帶來有利的實現，我們相信這凸顯了我們投資組合公司的實力和質量。

We are pleased with our investment activity in the first quarter. This activity included total lower middle market investments of $92 million, resulting in a net increase in lower middle market investments of $67 million after repayments and other investment activity.

我們對第一季的投資活動感到滿意。這項活動包括 9,200 萬美元的中低階市場投資總額，扣除還款和其他投資活動後，中低階市場投資淨增加 6,700 萬美元。

Our private loan investment activities in the quarter included new investments of $155 million and slightly moderated repayment activity as compared to the significant level of repayment activity experienced in the fourth quarter, resulting in a net increase in our private loan investments of $55 million. As a result of our favorable investment activity, our total investment portfolio grew by approximately 6% on a cost basis.

本季我們的私人貸款投資活動包括 1.55 億美元的新增投資，與第四季度的大幅還款活動相比，還款活動略有放緩，導致我們的私人貸款投資淨增加 5,500 萬美元。由於我們有利的投資活動，我們的總投資組合按成本計算增長了約 6%。

Given our conservative capital structure and strong liquidity position, we remain very well positioned to continue the growth of our investment portfolio over the next few quarters. We've also continued to produce positive results in our asset management business. The funds we advised through our external investment manager continued to experience favorable performance in the first quarter, resulting in significant incentive fee income for our asset management business for the sixth consecutive quarter and, together with our recurring base management fees, a significant contribution to our net investment income.

鑑於我們保守的資本結構和強勁的流動性狀況，我們仍處於有利位置，可以在未來幾季繼續投資組合的成長。我們的資產管理業務也持續取得正面成果。我們透過外部投資經理提供諮詢的基金在第一季繼續取得良好的業績，為我們的資產管理業務連續第六個季度帶來可觀的激勵費收入，加上我們的經常性基本管理費，為我們的資產管理業務做出了重大貢獻。

We also benefited from significant fair value appreciation in the external investment manager due to a combination of the continued increase in fee income, growth in assets under management, and broader market-based drivers. We remain excited about our plans for the external funds 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.

由於費用收入持續增加、管理資產成長以及更廣泛的市場驅動因素，我們也受益於外部投資管理公司公允價值的大幅升值。在執行我們的投資策略和其他策略舉措時，我們對所管理的外部基金的計劃仍然感到興奮，我們對這些基金的未來表現以及我們為每隻基金的投資者提供的有吸引力的回報感到樂觀。

We remain optimistic about our strategy for growing our asset management business within our internally managed structure and are actively working to increase the contributions from this unique benefit to our Main Street stakeholders.

我們對在內部管理結構內發展資產管理業務的策略保持樂觀，並積極努力增加這項獨特利益對我們主要利害關係人的貢獻。

As part of this growth strategy, we continue to focus on the near-term growth of our assets under management and the related additional recurring base management fee and incentive fee opportunities as we work to create additional value for both the investors in these funds and Main Street in the future.

作為這項成長策略的一部分，我們繼續關注所管理資產的近期成長以及相關的額外經常性基本管理費和激勵費機會，同時我們努力為這些基金和主要投資者創造額外價值未來的街道。

Based upon our results for the first 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 $0.30 per share payable in June, representing our 11th consecutive quarterly supplemental dividend and an increase to our regular monthly dividends for the third quarter of 2024 to $0.245 per share, our sixth increase to our monthly dividends over the last eight quarters.

根據我們第一季的業績，結合我們對每項主要投資策略和資產管理業務的良好前景，本週早些時候，我們的董事會宣佈在6 月份派發每股0.30 美元的補充股息，這是我們連續11 次派發股息。

The third-quarter regular monthly dividends are payable in each of July, August, and September and represent a 6.5% increase from the third quarter 2023. The supplemental dividend for June is a result of our strong performance in the first quarter and will result in total supplement dividends paid during the trailing 12-month period of $1.15 per share, representing an additional 41% paid to our shareholders in excess of our regular monthly dividends and a current total yield we are providing to our shareholders of over 8%.

第三季定期每月股利將於 7 月、8 月和 9 月支付，較 2023 年第三季增加 6.5%。6 月的補充股息是我們第一季強勁業績的結果，這將導致過去 12 個月期間支付的補充股息總額為每股 1.15 美元，相當於向股東支付的額外股息超出我們常規的 41%。提供給股東的每月股息和當前總收益率超過8%。

After multiple increases to our monthly dividend and the significant supplemental dividend paid in March, our DNII per share for the first quarter still exceeded our total dividends paid by $0.09 per share or 9%. 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 against the risks associated with the current general economic uncertainty and to further enhance the growth of our NAV per share.

在多次提高月度股息以及3月份支付的大量補充股息後，我們第一季的每股DNII仍超過我們支付的總股息每股0.09美元，即9%。我們很高興能夠為股東提供顯著的額外價值，同時仍然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，應對當前總體經濟不確定性相關的風險，並進一步促進增長我們的每股資產淨值。

We currently expect to recommend that our board continue to declare future supplemental dividends to the extent DNII significantly exceeds our regular monthly dividends paid in future quarters and we maintain a stable to positive NAV. Based upon our expectations for continued favorable performance in the second quarter, we currently anticipate proposing an additional supplemental dividend payable in September 2024.

我們目前預計建議我們的董事會繼續宣布未來的補充股息，直至 DNII 顯著超過我們未來季度支付的每月定期股息，並且我們保持穩定至正的資產淨值。基於我們對第二季持續良好業績的預期，我們目前預計提議於 2024 年 9 月支付額外補充股利。

Now, turning to our current investment pipeline. As of today, I would characterize our lower middle market investment pipeline as above average.

現在，轉向我們目前的投資管道。截至今天，我認為我們的中低階市場投資管道高於平均水準。

Consistent with our experience in prior periods of broad economic uncertainty, we believe that the unique and flexible financing solutions that we provide to our lower middle market companies and our owners and management teams and our differentiated long-term to permanent holding periods represent an even more attractive solution in the current environment. And we are confident in our expectations for strong lower middle market investment activity over the remainder of 2024.

與我們在之前廣泛的經濟不確定性時期的經驗相一致，我們相信，我們為中低端市場公司、我們的所有者和管理團隊提供的獨特而靈活的融資解決方案以及我們差異化的長期至永久持有期代表了更多的機會。我們對 2024 年剩餘時間內中低端市場投資活動的強勁預期充滿信心。

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

我們也對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帶來的顯著增長感到非常滿意。截至今天，我還將我們的私人貸款投資管道描述為高於平均水平。

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.

謝謝，德韋恩，大家早安。

As Dwayne highlighted in his remarks, we believe that our strong first-quarter financial results continue to demonstrate the strength of Main Street's platform, our differentiated investment approach, and our unique operating model. We are pleased to report that the overall operating performance for most of our portfolio companies continues to be positive, which contributed to our attractive first-quarter financial results.

正如 Dwayne 在演講中所強調的那樣，我們相信第一季強勁的財務業績繼續證明了 Main Street 平台的實力、我們差異化的投資方式以及我們獨特的營運模式。我們很高興地報告，我們大多數投資組合公司的整體經營業績仍然樂觀，這為我們第一季的財務表現帶來了吸引力。

Each quarter, we try to highlight key aspects of our differentiated investment strategy. This quarter, we'd like to revisit several reasons why we believe that our structure as a publicly traded BDC, with the significant benefits of permanent capital, is a great match with our focus on investing in both the debt and equity capital in lower middle market businesses.

每個季度，我們都會努力強調我們差異化投資策略的關鍵面向。本季度，我們想重新審視以下幾個原因：為什麼我們相信我們作為公開交易的 BDC 的結構具有永久資本的顯著優勢，與我們對中低端債務和股權資本投資的重點非常匹配市場企業。

First, on a new lower middle market investment side, we believe that our permanent capital structure allows us to be an ideal long-term to permanent partner for the owners of privately held businesses. One of the challenges of a typical limited term-specific private equity fund is that they cannot represent a long-term partnership solution for a retiring business owner or their management teams.

首先，在新的中低端市場投資方面，我們相信我們的永久資本結構使我們能夠成為私人企業所有者理想的長期到永久合作夥伴。典型的有限期限私募股權基金面臨的挑戰之一是它們無法為退休企業主或其管理團隊提供長期合作解決方案。

Our permanent capital structure and long-term to permanent investment strategy in the lower middle market allows us the flexibility to compete for new investments by providing significantly more beneficial structural consideration as opposed to relying solely on price to gain a competitive advantage. Ultimately, we believe this can generate highly attractive investment structures that more traditional private equity funds cannot provide.

我們的永久性資本結構和中低端市場的長期到永久性投資策略使我們能夠透過提供明顯更有利的結構性考慮來靈活地競爭新投資，而不是僅僅依靠價格來獲得競爭優勢。最終，我們相信這可以產生傳統私募股權基金無法提供的極具吸引力的投資結構。

In addition, our ability to be a long-term to permanent partner to the companies we invest in allows the long-term owners of these businesses and their management teams the ability to maintain the identity and independence of their companies while also achieving the best long-term outcomes for all of their company's stakeholders.

此外，我們有能力成為我們投資的公司的長期至永久合作夥伴，使這些企業的長期所有者及其管理團隊能夠保持其公司的身份和獨立性，同時實現最佳的長期利益- 公司所有利益相關者的長期成就。

Second, our long-term holding periods also helped generate a diversified portfolio of mature companies that typically have lower relative leverage since they've generally used free cash flow from operations to deleverage over time. As our companies deleverage, we work proactively with our portfolio company executives and individual equity owners to decide how they can generate the best returns for the equity owners of these businesses.

其次，我們的長期持有期也有助於形成成熟公司的多元化投資組合，這些公司通常具有較低的相對槓桿率，因為隨著時間的推移，它們通常使用來自營運的自由現金流來去槓桿化。隨著我們公司的去槓桿化，我們積極與投資組合公司高層和個人股權所有者合作，決定如何為這些企業的股權所有者創造最佳回報。

This tends to create three attractive opportunities for our high-performing lower middle market portfolio companies, the opportunity for long-term equity capital appreciation through the reinvestment of cash flows or through deleveraging, the opportunity to pay significant dividends to the shareholders of the business, and the opportunity to effectively take advantage of internal and external growth strategies and initiatives as they arise.

這往往為我們的高績效中低端市場投資組合公司創造三個有吸引力的機會，即透過現金流再投資或去槓桿化實現長期股權資本增值的機會，向企業股東支付大量股息的機會，以及有效利用內部和外部成長策略和舉措的機會。

In our more high-performing situations, we often see our portfolio executives and equity owners take advantage of multiple value creation opportunities. We are well aligned with our portfolio company operating partners to evaluate and pursue the best alternatives to create shareholder value since we share in the benefits of equity ownership with them.

在我們績效較高的情況下，我們經常看到我們的投資組合高階主管和股權所有者利用多種價值創造機會。我們與投資組合公司的營運夥伴保持一致，評估並尋求創造股東價值的最佳替代方案，因為我們與他們分享股權的好處。

Alternatively, should our portfolio company face difficult industry headwinds or other challenges since they have lower relative leverage profiles, they tend to be well positioned to work through any negative economic cycles as they arise, and they have the added benefit of a highly aligned partner in Main Street to help them work through a potential rough patch.

或者，如果我們的投資組合公司由於相對槓桿率較低而面臨艱難的行業逆風或其他挑戰，那麼它們往往能夠很好地應對任何出現的負面經濟週期，並且它們還擁有高度一致的合作夥伴的額外好處Main Street 幫助他們渡過潛在的困難時期。

The first quarter of 2024 represented another strong period for add-on investments for our lower middle market companies, whereby we supported five portfolio companies with additional capital for growth or recapitalization initiatives. Because of Main Street's strong capital availability and ability to provide both debt and equity capital to our portfolio companies, we are well situated to move quickly to support our portfolio companies, not only on the initial transaction but also when they identify growth initiatives.

2024 年第一季是我們中低端市場公司追加投資的另一個強勁時期，我們為五家投資組合公司提供了額外資本以實現成長或資本重組計劃。由於Main Street 擁有強大的資本可用性以及為我們的投資組合公司提供債務和股權資本的能力，我們處於有利地位，可以迅速採取行動支持我們的投資組合公司，不僅在初始交易中，而且在他們確定增長計劃時也提供支援。

Today, the environment for add-on acquisitions by our portfolio companies remain strong. We welcome the opportunity to make incremental investments in our most successful lower middle market companies as we strive to create long-term value for Main Street shareholders alongside the other equity owners at the portfolio companies.

如今，我們的投資組合公司進行附加收購的環境依然強勁。我們歡迎有機會對我們最成功的中低端市場公司進行增量投資，因為我們努力與投資組合公司的其他股權所有者一起為大眾股東創造長期價值。

Our lower middle market portfolio is currently comprised of 47 companies which have been in our portfolio for greater than five years, and 22 of which who have been in our portfolio for greater than a decade. We are excited about our partnerships with companies that have proven long-term track records at Main Street.

我們的中低階市場投資組合目前由 47 家公司組成，這些公司已在我們的投資組合中加入超過五年，其中 22 家公司在我們的投資組合中加入超過十年。我們很高興與那些在 Main Street 擁有長期業績記錄的公司建立合作夥伴關係。

A recent example of our supporting a seasoned portfolio company management team in executing their growth strategies took place when Main Street supported our portfolio company, Gulf Manufacturing, or GMI, in a highly strategic acquisition. We made our original investment in GMI over 16 years ago, and in the first quarter, Main Street was pleased to provide 100% of the cash needs for GMI to complete a strategic acquisition.

最近我們支援經驗豐富的投資組合公司管理團隊執行其成長策略的一個例子是，Main Street 支持我們的投資組合公司海灣製造公司 (Gulf Manufacturing) 或 GMI 進行一項高度策略性的收購。我們在 16 年前就對 GMI 進行了最初的投資，第一季度，Main Street 很高興為 GMI 完成策略性收購提供了 100% 的現金需求。

This acquisition provides the combined company and its owners, including management, the opportunity to benefit from the significant equity value creation opportunities produced through combined cross-selling prospects, economies of scale, and other synergies that are expected to exist from the larger combined platform.

此次收購為合併後的公司及其所有者（包括管理層）提供了機會，讓他們能夠從合併後的交叉銷售前景、規模經濟以及更大的合併平台中預計存在的其他協同效應所產生的重大股權價值創造機會中獲益。

GMI's acquisition is representative of the attractive opportunities we believe exist within our existing lower middle market portfolio to put incremental capital to work, supporting both internal and external growth initiatives at the portfolio company level. We believe our seasoned lower middle market portfolio will continue to provide attractive follow-on investment opportunities in the future.

GMI 的收購代表了我們認為現有中低端市場投資組合中存在的有吸引力的機會，可以將增量資本投入使用，支持投資組合公司層面的內部和外部成長計劃。我們相信，我們經驗豐富的中低端市場投資組合將在未來繼續提供有吸引力的後續投資機會。

Now, turning back to our lower middle market portfolio, the contributions from this portfolio continue to be well diversified with 49 of our 81 lower middle market companies with equity investments having appreciation at quarter-end and with 48 of these companies contributing to our dividend income over the last 12 months.

現在，回到我們的中低端市場投資組合，該投資組合的貢獻繼續多元化，我們81 家進行股權投資的中低端市場公司中有49 家在季度末升值，其中48 家公司為我們貢獻了股息收入過去 12 個月。

Additionally, more than half of our lower middle market companies experienced increases in their trailing 12-month EBITDA in the first quarter of this year when compared to the fourth quarter of last year, which we believe demonstrates the underlying strength of our lower middle market portfolio.

此外，與去年第四季相比，我們一半以上的中低階市場公司在今年第一季的過去 12 個月 EBITDA 有所成長，我們相信這證明了我們中低端市場投資組合的潛在實力。

Now, turning to the overall composition results from our investment portfolio. As of March 31, we continue to maintain a highly diversified portfolio with investments in 191 companies spanning across numerous industries and end markets. Our largest portfolio companies, excluding our external asset manager, represented only 3.5% of our total investment income for the trailing 12-month period and 3.5% of our total investment portfolio fair value at quarter-end. The majority of our portfolio investments represented less than 1% of our income and our assets.

現在，轉向我們投資組合的整體組成。截至 3 月 31 日，我們繼續保持高度多元化的投資組合，投資於眾多產業和終端市場的 191 家公司。我們最大的投資組合公司（不包括我們的外部資產管理公司）僅占我們過去 12 個月期間總投資收入的 3.5%，占我們季度末總投資組合公允價值的 3.5%。我們的大部分投資組合僅占我們收入和資產的不到 1%。

Our investment activity in the first quarter included total investments in our lower middle market portfolio of approximately $92 million which, after aggregate repayments on debt investments and return of invested equity capital, resulted in a net increase in our lower middle market portfolio of $67 million.

我們第一季的投資活動包括對中低端市場投資組合的總投資約 9,200 萬美元，在償還債務投資和投資股本資本返還後，我們對中低端市場投資組合的淨增長為 6,700 萬美元。

Driven by the capabilities and relationships of our private credit team, we also made $155 million in total private loan investments which, after aggregate investment activity, resulted in a net increase in our private loan portfolio of $55 million.

在我們私人信貸團隊的能力和關係的推動下，我們的私人貸款投資總額還達到了 1.55 億美元，在總投資活動之後，我們的私人貸款投資組合淨增加了 5,500 萬美元。

Finally, during the quarter, we had a continued net decrease in our middle market portfolio of $22 million. At the end of the first quarter, our lower middle market portfolio included investments in 81 companies, representing $2.4 billion of fair value, which is 28% above our cost basis.

最後，在本季度，我們的中間市場投資組合持續淨減少 2,200 萬美元。截至第一季末，我們的中低階市場投資組合包括對 81 家公司的投資，公允價值為 24 億美元，比我們的成本基礎高出 28%。

We had investments in 88 companies in our private loan portfolio, representing $1.5 billion of fair value. And in our middle market portfolio, we had investments in 22 companies, representing $239 million of fair value. The total investment portfolio at fair value at quarter-end was 115% of the related cost basis.

我們的私人貸款組合投資了 88 家公司，公平價值達 15 億美元。在我們的中間市場投資組合中，我們投資了 22 家公司，公允價值為 2.39 億美元。季末公允價值投資組合總額為相關成本基礎的115%。

In summary, Main Street's investment portfolio continues to perform at a high level and deliver on our long-term goals. Additional details on our investment portfolio at quarter-end are included in the press release that we issued yesterday.

總而言之，Main Street 的投資組合繼續保持高水準表現並實現我們的長期目標。有關我們季度末投資組合的更多詳細信息，請參閱我們昨天發布的新聞稿。

With that, I will 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 Dwayne's and David's comments, we are very pleased with our operating results for the first quarter.

謝謝你，大衛。為了呼應 Dwayne 和 David 的評論，我們對第一季的經營業績感到非常滿意。

Our total investment income for the first quarter was $131.6 million, increasing by $11.4 million, or 9.4%, over the first quarter of 2023 and by $2.3 million, or 1.8%, from the fourth quarter of 2023. Positive momentum we experienced during 2023 continued in the first quarter and resulted in strong levels of investment income, which we believe, as Dwayne and David touched on, demonstrates the continued strength of our differentiated investment and asset management strategies.

我們第一季的總投資收入為 1.316 億美元，比 2023 年第一季增加 1,140 萬美元，增幅 9.4%，比 2023 年第四季增加 230 萬美元，增幅 1.8%。我們在2023 年經歷的積極勢頭在第一季度得到延續，並帶來了強勁的投資收入水平，我們相信，正如Dwayne 和David 所談到的那樣，這表明了我們差異化投資和資產管理策略的持續優勢。

The first quarter included elevated levels of certain income considered less consistent or non-recurring in nature, which include dividends from our equity investments and accelerated prepayment, repricing, and other activity related to our debt investments.

第一季某些被認為不太一致或非經常性的收入水平有所提高，其中包括來自我們的股權投資的股息以及加速預付款、重新定價和與我們的債務投資相關的其他活動。

In the aggregate, these items totaled $7.5 million and were $2.1 million higher than the average of the prior four quarters, $2.2 million higher than the fourth quarter, and $1.8 million lower than the first quarter of 2023. Interest income increased by $6.7 million from a year ago and decreased $0.6 million from the fourth quarter. The increase over the prior year was driven primarily by increases in benchmark index rates and increased net investment activity.

這些項目總計 750 萬美元，比前四個季度的平均水平高出 210 萬美元，比第四季高出 220 萬美元，比 2023 年第一季低 180 萬美元。利息收入較去年同期增加 670 萬美元，較第四季減少 60 萬美元。較上年增長的主要原因是基準指數利率上升和淨投資活動增加。

The decrease from the fourth quarter was primarily driven by a decrease and accelerated OID income, partially offset by increased net investment activity. Dividend income decreased by $1.4 million, or 5.9%, when compared to a year ago, driven primarily by a $5.3 million decrease in less consistent or non-recurring dividends.

較第四季的下降主要是由於 OID 收入減少和加速，但部分被淨投資活動增加所抵消。與去年同期相比，股息收入減少了 140 萬美元，即 5.9%，主要是由於不太一致或非經常性股息減少了 530 萬美元。

The $3.9 million increase in dividends deemed recurring is a result of the continued underlying strength of the majority of our portfolio companies and the recurring benefits from our asset management business. Dividends decreased by $1 million, or 4.2%, from the fourth quarter and included a $1.7 million increase in dividends we characterize as less consistent or non-recurring in nature.

被視為經常性股息增加了 390 萬美元，這是我們大多數投資組合公司持續的潛在實力以及我們資產管理業務的經常性收益的結果。股息比第四季度減少了 100 萬美元，即 4.2%，其中包括我們認為本質上不太一致或非經常性的股息增加了 170 萬美元。

Fee income increased by $6.1 million from a year ago and $3.9 million from the fourth quarter. These increases were driven primarily from an increase in fees received from refinancing and prepayment of debt investments and fees related to higher portfolio investment activity.

費用收入較去年同期增加 610 萬美元，較第四季增加 390 萬美元。這些成長主要是由於債務投資再融資和預付費用以及與較高的證券投資活動相關的費用增加所致。

Pre-payment and other fee income considered nonrecurring increased $3.8 million from a year ago and by $2.1 million from the fourth quarter. Our operating expenses increased by $2.5 million from a year ago, largely driven by increases in interest expense and compensation-related expenses, partially offset by an increase in expenses allocated to the external investment manager.

預付款和其他非經常性費用收入較去年同期增加 380 萬美元，較第四季增加 210 萬美元。我們的營運費用比一年前增加了 250 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。

The ratio of our total operating expenses, excluding interest expense, as a percentage of our average total assets was 1.3% for the quarter on an annualized basis and continues to be among the lowest in our industry.

以年化計算，本季我們的總營運費用（不包括利息費用）佔平均總資產的比例為 1.3%，繼續處於行業最低水準。

Our external investment manager contributed $8.6 million to our net investment income during the first quarter, an increase of $0.5 million from a year ago and a decrease of $0.6 million from the fourth quarter. The manager earned $3.9 million in incentive fees during the quarter, increasing by $0.6 million over a year ago as a result of the positive performance of the assets under management. The manager ended the quarter with total assets under management of $1.5 billion.

第一季度，我們的外部投資經理為我們的淨投資收益貢獻了860萬美元，比去年同期增加了50萬美元，比第四季減少了60萬美元。由於所管理資產的積極表現，該管理人本季度獲得了 390 萬美元的獎勵費，較上年同期增加了 60 萬美元。該管理公司本季末管理的總資產為 15 億美元。

During the quarter, we recorded net fair value appreciation, including net realized losses and net unrealized appreciation, on the investment portfolio of $28.3 million. This increase was driven by net fair value appreciation in our lower middle market portfolio and in our external investment manager, partially offset by net fair value depreciation in our private loan portfolio.

本季度，我們的投資組合記錄了 2,830 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。這一增長是由我們的中低端市場投資組合和外部投資經理的淨公允價值升值所推動的，部分被我們私人貸款投資組合的淨公允價值貶值所抵消。

The net fair value appreciation on our lower middle market portfolio was driven by the continued positive performance of certain of our portfolio companies. The fair value appreciation in the external investment manager was a result of a combination of an increase in the fees generated by the manager, driven by continued strong performance of our asset management business and an increase in the valuation multiples of publicly traded peers which we use as one of the benchmarks for valuation purposes.

我們的中低階市場投資組合的淨公允價值升值是由我們的某些投資組合公司的持續積極績效所推動的。外部投資管理人的公允價值升值是由於我們的資產管理業務持續強勁的業績以及我們使用的公開交易同業的估值倍數增加所推動的管理人費用的增加。

The net fair value depreciation on our private loan portfolio was driven by the net impact of specific portfolio company underperformance, partially offset by the impact of decreases in market spreads. We recognized net realized losses in our private loan middle market and other portfolio of a combined $12.8 million in the quarter, which were related to long-standing underperforming investments.

我們私人貸款投資組合的淨公允價值貶值是由特定投資組合公司業績不佳的淨影響推動的，但部分被市場利差下降的影響所抵消。我們確認本季私人貸款中間市場和其他投資組合的淨實現損失總計 1,280 萬美元，這與長期表現不佳的投資有關。

The majority of the unrealized depreciation related to these investments was taken in prior periods and, as a result, the net impact of these realized losses in the quarter, after taking into account the accounting reversals of previously recognized unrealized depreciation, was a net fair value decrease of $1.2 million. We ended the first quarter with investments on non-accrual status comprising approximately 0.5% of the total investment portfolio at fair value and approximately 2% at cost.

與這些投資相關的大部分未實現折舊是在前期計算的，因此，在考慮了先前確認的未實現折舊的會計轉回後，本季度這些已實現虧損的淨影響是淨公允價值減少120 萬美元。第一季末，我們的非權責發生製投資以公允價值計算約佔總投資組合的 0.5%，以成本計算約佔 2%。

Net asset value, or NAV, increased by $0.34 per share over the fourth quarter and by $2.31 or 8.5%, when compared to a year ago, to a record NAV per share of $29.54 at the end of the first quarter. Our regulatory debt-to-equity leverage calculated as total debt excluding our SBIC debentures, divided by net asset value, was 0.7, and our regulatory asset coverage ratio was 2.4, and we're intentionally more conservative than our long-term target ranges of 0.8 times to 0.9 times and 2.1 times to 2.25 times.

第四季每股資產淨值 (NAV) 成長 0.34 美元，與去年同期相比成長 2.31 美元，即 8.5%，第一季末每股資產淨值達到創紀錄的 29.54 美元。我們的監理債務股本槓桿率以不包括 SBIC 債券的總負債除以資產淨值計算，為 0.7，我們的監理資產覆蓋率為 2.4，我們有意比我們的長期目標範圍更為保守0.8倍至0.9倍和2.1倍至2.25倍。

January of this year, we issued $350 million of unsecured notes maturing in March 2029 with a coupon rate of 6.95%. We utilized the proceeds to repay outstanding borrowings under our credit facilities. And on May 1 of this year, we repaid the $450 million due on our May 2024 notes at maturity through borrowings under our credit facilities. After giving effect to the investment in capital activity thus far this year, we continue to maintain strong liquidity, including cash and availability under our credit facilities of over $900 million.

今年 1 月，我們發行了 3.5 億美元無擔保票據，將於 2029 年 3 月到期，票面利率為 6.95%。我們利用所得款項來償還信貸額度下的未償借款。今年 5 月 1 日，我們透過信貸安排借款償還了 2024 年 5 月到期票據的 4.5 億美元。今年迄今資本活動投資生效後，我們繼續保持強勁的流動性，包括超過 9 億美元信貸額度下的現金和可用資金。

We continue to believe that our conservative leverage, strong liquidity, and continued access to capital are significant strengths that have proven to benefit us historically and have us well positioned for the future while allowing us to continue to execute our investment strategy. With this current level of liquidity, we currently 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.

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能力是重要的優勢，事實證明，這些優勢歷來使我們受益，並使我們為未來做好準備，同時使我們能夠繼續執行我們的投資策略。在目前的流動性水準下，我們目前預計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，我們預計槓桿率將在這一年中增加。

Coming back to our operating results. As a result of our strong performance for the quarter, our return on equity for the quarter was 17.2% on an annualized basis. DNII per share for the quarter of $1.11 exceeded the DNII per share for the first quarter of last year by $0.04 or 3.7% and was $0.01 or 0.9% lower than the record DNII per share for the fourth quarter.

回到我們的經營績效。由於我們本季的強勁表現，我們本季的年化股本回報率為 17.2%。本季每股 DNII 為 1.11 美元，比去年第一季每股 DNII 高出 0.04 美元，即 3.7%，比第四季創下的每股 DNII 紀錄低 0.01 美元，即 0.9%。

The combined impact of certain investment income considered less consistent and non-recurring in nature on a per share basis was $0.03 per share above the fourth quarter, $0.02 above the average of the last four quarters, and $0.03 below the same quarter a year ago.

某些被認為不太一致和非經常性的投資收益的綜合影響為每股比第四季度高 0.03 美元，比過去四個季度的平均水平高 0.02 美元，比去年同期低 0.03 美元。

Total dividends paid in the first quarter were $1.02 per share, including a supplemental dividend of $0.30 per share, an increase of 20% over the total dividends paid during the same period in the prior year. As Dwayne mentioned, given the strength of our operating results and the outlook for the rest of the year, our board approved a supplemental dividend of $0.30 per share payable in June 2024.

第一季支付的股息總額為每股1.02美元，其中補充股息為每股0.30美元，比去年同期支付的股息總額增加20%。正如 Dwayne 所提到的，鑑於我們強勁的經營業績和今年剩餘時間的前景，我們的董事會批准了 2024 年 6 月支付的每股 0.30 美元的補充股息。

With this supplemental dividend, total declared dividends for the second quarter were $1.02 per share, representing a 13% increase over the total dividends paid in the second quarter of last year. The board also approved an increase of our recurring monthly dividends to $0.245 per share or a total of $0.735 per share for the third quarter.

加上此補充股息，第二季宣派股息總額為每股1.02美元，比去年第二季支付的股利總額增加13%。董事會還批准將第三季經常性每月股息增加至每股 0.245 美元，即每股 0.735 美元。

As we look forward, given the strength of our underlying portfolio, we expect another strong top line and earnings quarter in the second quarter with expected DNII per share of at least $1.03 with the potential for upside driven by the level of dividend income and portfolio investment activities during the quarter.

展望未來，鑑於我們基礎投資組合的實力，我們預計第二季度將再次實現強勁的營收和盈利季度，預計每股DNII 至少為1.03 美元，並有可能在股息收入和投資組合投資水平的推動下上漲本季的活動。

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

現在，我將把電話轉回給接線員，以便我們回答任何問題。

(Operator Instructions) Bryce Rowe, B. Riley Securities.

（操作員指令）Bryce Rowe，B. Riley Securities。

Hey, Dwayne, wanted to maybe start on the comment Jesse made around using more debt to fund growth here in 2024. Maybe you could kind of help us think about that relative to where the regulatory leverage is now and where your target is. Do you expect to try to get back into that target range, or will you still run conservatively below that target range?

嘿，Dwayne，也許想從傑西關於 2024 年使用更多債務來為經濟成長提供資金的評論開始。也許你可以幫助我們考慮相對於現在的監管槓桿和你的目標。您是否希望嘗試回到該目標範圍，或仍會保守地低於該目標範圍？

Sure, Bryce. I'll give you a few comments there, and then I'll let Jesse remind everyone what our long-term target expectations are for leverage.

當然，布萊斯。我會給你們一些評論，然後我會讓傑西提醒大家我們對槓桿率的長期目標期望是什麼。

So I'd start off just saying we've been well below our targets for a while. That was really in anticipation of the May 1 of 2024 maturity that we just had that we repaid here over the last week or so. So we intentionally were being more conservative in advance of that because the markets, as you heard us say before, had been very uncertain, and we weren't sure what we would be able to accomplish from an unsecured IG issuance standpoint.

因此，我首先要說的是，我們已經遠低於目標一段時間了。這確實是我們在 2024 年 5 月 1 日到期的預期，我們剛剛在上週左右在這裡償還了這筆錢。因此，我們故意在此之前更加保守，因為正如您之前聽到我們所說的那樣，市場非常不確定，而且我們不確定從無擔保投資等級債券發行的角度來看我們能夠實現什麼目標。

So we had intentionally built more cushion, more conservatism in that ratio over the last 12 months or so than what we would have otherwise kind of executed on from a leverage and overall capital structure standpoint. But as you've heard us say in the past, we're always going to be more conservative in the space. We view our ability to generate best-in-class, best-in-industry ROE is fundamental.

因此，在過去 12 個月左右的時間裡，我們有意在該比率上建立了更多的緩衝、更保守的態度，而不是從槓桿和整體資本結構的角度來執行。但正如您過去聽我們說過的那樣，我們在這個領域總是會更加保守。我們認為，我們產生一流、業界最佳股本回報率的能力至關重要。

It's a different investment strategy. It's good underwriting. It's a long-term -- it's a permanent approach. So we really look at focusing on the fundamental investment strategies that we have to produce our return on equity and not use excessive leverage or financial engineering to get there.

這是一種不同的投資策略。這是很好的承保。這是一個長期的、永久的方法。因此，我們真正關注的是我們必須產生股本回報的基本投資策略，而不是使用過度的槓桿或金融工程來實現這一目標。

So we'll always be more conservative in the space, and we don't think anything would change there. That being said, because we have been in a more conservative position for a while, what Jesse is trying to indicate or message in his comments was that we will be moving from our current position toward our long-term targets over the next 12 months to 24 months as we continue to execute the growth of our investment portfolio.

因此，我們在這個領域總是會更加保守，我們認為那裡不會有任何改變。話雖這麼說，因為一段時間以來我們一直處於較為保守的立場，傑西在評論中試圖表明或傳達的信息是，我們將在未來 12 個月內從目前的立場轉向我們的長期目標24 個月內，我們將繼續執行投資組合的成長。

But maybe I'll let Jesse remind everybody what those long-term targets are.

但也許我會讓傑西提醒大家這些長期目標是什麼。

Sure. Thanks, Dwayne. And as I said on the call, our leverage targets are 0.8 times to 0.9 times. As a reminder, the way we define that, we exclude our SBIC debentures due to our attention there. And at the end of the quarter, we had moved closer to that, as you probably saw, Bryce, to 0.7 times. So we made the same comment in the last quarter. We made some movement closer to those targets, and we're still more conservative to those and would expect to continue to move closer to those.

當然。謝謝，德韋恩。正如我在電話會議上所說，我們的槓桿目標是 0.8 倍至 0.9 倍。提醒一下，我們的定義方式是排除我們的 SBIC 債券，因為我們對此的關注。在本季末，我們已經接近這個數字，正如你可能看到的那樣，布萊斯，達到了 0.7 倍。所以我們在上個季度也發表了同樣的評論。我們採取了一些行動來接近這些目標，但我們對這些目標仍然更加保守，並期望繼續接近這些目標。

All right. Maybe just on that same topic, looks like the SBA debentures outstanding went down. Did you all prepay some? Or was that just an existing maturity?

好的。也許就在同一主題上，SBA 未償債券似乎有所下降。你們都預付了一些嗎？還是這只是現有的成熟度？

Yeah, Bryce. Those are just activities in relation to existing maturities. So we had two tranches that we paid off, and we'll be in the process of requesting new debentures to replenish that capacity from the SBA. We started that process. It just takes a while for us to get through the process with the SBA, but that's in process. It's just a matter of time before we hopefully have access to the full [$350 million] again.

是的，布萊斯。這些只是與現有期限相關的活動。因此，我們已經還清了兩筆款項，我們將正在向 SBA 請求新的債券來補充這項能力。我們開始了這個過程。我們只需要一段時間就可以完成與 SBA 的流程，但一切都在進行中。我們希望再次獲得全額 [3.5 億美元]，這只是時間問題。

Okay. All right. And then I'll ask one more and maybe jump back in queue if others don't ask other questions. So in terms of kind of the non-recurring or less recurring income, especially on the fee side, is that more prepayment type of activity or amendment activity? Just help us think about that. And kind of curious, if it is prepayment type activity, what's driving that? Is that the tighter spreads that we've seen here recently giving opportunity for refinance opportunities for your borrowers?

好的。好的。然後我會再問一個問題，如果其他人不問其他問題，我可能會跳回隊列。那麼，就非經常性收入或較少經常性收入而言，特別是在費用方面，是更多的預付款類型活動還是修改活動？請幫助我們思考一下。有點好奇，如果是預付款類型的活動，那麼是什麼推動了它？我們最近看到的利差收窄是否為借款人提供了再融資機會？

Sure, Bryce. When you look at that metric we provide long-term, it would be a combination of each of the items that you referenced. Specifically in the first quarter, it was two repayments that occurred, and they had protections or benefits upon prepayment or repayment that allowed us to accelerate or not accelerate but to receive some additional benefits from a fee income standpoint.

當然，布萊斯。當您查看我們提供的長期指標時，它將是您引用的每個項目的組合。具體來說，在第一季度，發生了兩次還款，它們在預付款或還款時有保護或好處，使我們能夠加速或不加速，但從費用收入的角度來看，可以獲得一些額外的好處。

So I'd say the first quarter was a little abnormal. Obviously, you see it in the number there. But each quarter is going to -- there's going to be peaks and valleys in that number just based upon the normal investment repayment or pre-payment activities that happen across that broad portfolio.

所以我想說第一季有點不正常。顯然，您可以從那裡的數字中看到它。但每個季度，根據整個投資組合中發生的正常投資償還或預付款活動，這個數字將會出現高峰和低谷。

Okay. And those were in the private loan portfolio, Dwayne, or lower middle market?

好的。那些是在私人貸款組合中，Dwayne，還是中低端市場？

The two bigger ones that I'm referencing were both in the private loan portfolio.

我提到的兩個較大的項目都屬於私人貸款組合。

Robert Dodd, Raymond James.

羅伯特·多德，雷蒙德·詹姆斯。

Hi, everyone. On the dividend income from the portfolio companies, not the asset manager, it was down a little bit this quarter, which you did highlight, works out like a 5.9% yield on portfolio company equity, down from last year, but the same as first quarter 2022, I think, from your perspective. So I think Jesse said something about the vast majority are doing fine.

大家好。關於投資組合公司而非資產管理公司的股息收入，本季略有下降，您確實強調了這一點，結果顯示投資組合公司股權收益率為 5.9%，低於去年，但與第一季相同我想，從你的角度來看，2022 年季度。所以我認為傑西說過絕大多數人都做得很好。

Were there, at the margin, a couple of portfolio companies that are now deciding to reserve a little cash rather than distribute? Is that becoming an emerging theme in the portfolio? Or is it just one of those random things that happens?

是否有幾家投資組合公司現在決定保留一點現金而不是分配現金？這是否正在成為投資組合中的一個新興主題？或者這只是隨機發生的事情之一？

Thanks for the question, Robert. I'd say we pointed to or attribute more to just a random quarterly fluctuation. The companies that are contributing to our dividend income, it continues to be a broad group of people, just like it's been our broad group of companies, just like it's been in prior quarters. So we haven't seen the concentration increase materially. We haven't seen the composition of the companies that are contributing to that dividend income on a quarterly basis change materially.

謝謝你的提問，羅伯特。我想說，我們指出或更多地歸因於隨機的季度波動。為我們的股息收入做出貢獻的公司仍然是一個廣泛的群體，就像我們廣泛的公司群體一樣，就像前幾季一樣。所以我們還沒有看到濃度大幅增加。我們還沒有看到按季度貢獻股息收入的公司組成發生重大變化。

We do have, from time to time, the non-recurring stuff, which we always try to do our best to call that out. But if you look at the fundamental performance of the companies contributing to dividend income today versus what's been there the last couple of quarters, really over the last six or eight quarters, I wouldn't say that it's changed significantly. You just have fluctuations quarter to quarter to drive that dividend income.

我們確實時不時地會遇到一些非重複性的事情，我們總是盡力將其指出來。但如果你看看今天貢獻股息收入的公司的基本業績與過去幾個季度的情況相比，實際上是過去六個或八個季度的情況，我不會說它發生了重大變化。只需要透過季度的波動來推動股息收入。

Got it. Thank you. On the asset manager -- and I'm not talking about not this quarter, but kind of thematically of the next couple of year's maybe. Can you give us any indication if plans have developed about how you'd like to handle MSC or if there are other initiatives that you plan on undertaking? I mean, obviously, you have two private loan funds in there as well. Just any more color on what you think is going to go? The outlook for that really high return on risk-adjusted capital, if you will, business within Main over the next couple of years.

知道了。謝謝。關於資產管理公司——我不是說本季度，而是在討論未來幾年的主題。您是否已經制定了關於如何處理 MSC 的計劃，或者您是否計劃採取其他舉措？我的意思是，顯然，你那裡也有兩個私人貸款基金。您認為還會有更多顏色嗎？如果你願意的話，未來幾年 Main 業務的風險調整資本回報率將會非常高。

Sure, Robert. So similar to what you just said there, we view the asset management business for us to be extremely attractive. It's something that's very unique to Main Street in relation to other BDCs. It has been and continues to be a very large contributor to our return on equity and our recurring net investment income.

當然，羅伯特。與您剛才所說的類似，我們認為資產管理業務對我們極具吸引力。與其他 BDC 相比，這是 Main Street 的獨特之處。它一直並將繼續為我們的股本回報率和經常性投資收入做出巨大貢獻。

So it's something that we put a lot of value on. We find it highly attractive just like we think most of our stakeholders do. So when you look at that and you've heard us say this in the last couple of quarters, we have been and continue to be focused on trying to grow it.

所以這是我們非常重視的事情。我們發現它非常有吸引力，就像我們認為大多數利害關係人一樣。因此，當您看到這一點並在過去幾個季度聽到我們這麼說時，我們一直並將繼續致力於努力發展它。

And we can grow it a couple of ways. One is through the private loan activities that we've had, obviously, we're not planning to double the growth that there. Those -- the growth through those private loans will be very, very deliberate. And as a result, it will probably be more moderate.

我們可以透過幾種方式來種植它。一個是透過我們已經進行的私人貸款活動，顯然，我們不打算將那裡的成長翻倍。透過這些私人貸款實現的成長將是非常非常審慎的。結果，它可能會更加溫和。

Longer term, if we can find a solution that works for both us and for the shareholder of MSC Income Fund to grow that, we think that's the biggest opportunity, and we continue to look at different strategic initiatives or activities that we can take on front to allow us to both deliver really, really good returns for their shareholders, but also deliver additional benefits to Main Street through the growth of that entity of that fund.

從長遠來看，如果我們能夠找到一個對我們和 MSC 收入基金股東都有效的解決方案來實現成長，我們認為這是最大的機會，我們將繼續研究我們可以採取的不同策略舉措或活動讓我們既能為股東帶來真正非常好的回報，又能透過該基金實體的發展為大街帶來額外的利益。

I don't have anything today that I can share with you, but I think you would expect, just given the comments I just provided in our prior comments, that we continue to work on that. And we're hopeful that at some point in the future, we'll have a really good outcome for all parties.

今天我沒有什麼可以與你們分享的，但我想你們會期望，鑑於我剛剛在之前的評論中提供的評論，我們會繼續努力解決這個問題。我們希望在未來的某個時候，我們將為各方帶來真正好的結果。

Mark Hughes, Truist Securities.

馬克休斯，Truist 證券公司。

Yeah. Thank you. Good morning. Dwayne, you talked about the -- you're seeing more interest from several buyers. You also categorized your pipelines as above average compared to average last quarter. What the -- could you expand on that a little bit more uptick clearly in deal activity that you're seeing? Do you think that's a broader -- what's driving all that?

是的。謝謝。早安.德韋恩（Dwayne），您談到了——您看到一些買家對此更加感興趣。與上季的平均值相比，您還將管道分類為高於平均水平。您能詳細說明一下您所看到的交易活動的明顯上升嗎？你認為這是一個更廣泛的——是什麼推動了這一切？

Sure, Mark. Thanks. Thanks for the questions. I would say taking those two questions in reverse order, when you look at the activity both on the lower middle market side and the private loan side, we have seen a noticeable uptick on both sides. As you heard in our script and you saw in the numbers, we had really good investment activity in both strategies in the first quarter.

當然，馬克。謝謝。感謝您的提問。我想說的是，以相反的順序回答這兩個問題，當你觀察中低端市場和私人貸款方面的活動時，我們發現雙方都出現了明顯的上升。正如您在我們的腳本中聽到的以及在數字中看到的那樣，我們在第一季在這兩種策略上都進行了非常好的投資活動。

And as you took from my comments, the pipeline in both situations or both cases continues to be positive. I'm not sure if you just attribute that to the overall market kind of becoming more active or if it's something that we've done specifically. I think it's probably a combination of the two.

正如您從我的評論中得知的那樣，這兩種情況或兩種情況的管道仍然是積極的。我不確定你是否只是將其歸因於整體市場變得更加活躍，或者是否是我們專門做了一些事情。我認為這可能是兩者的結合。

I think more broadly, you probably heard other BDCs or other private equity, private debt investors, saying for the last couple of months that the market has become more active. We've definitely seen that on the front end of the funnel.

我認為更廣泛地說，您可能會聽到其他 BDC 或其他私募股權、私人債務投資者表示，過去幾個月市場變得更加活躍。我們肯定已經在漏斗的前端看到了這一點。

And I think we've seen or experienced more success here recently, both in the lower middle market and private loan strategies and having more success on opportunities, moving through the funnel, and resulting in actionable items that we get the opportunity to execute on. So nothing huge or significant. Just the market has improved, and we're doing a good job of capturing those opportunities.

我認為我們最近在中低端市場和私人貸款策略方面都看到或經歷了更多成功，並且在機會上取得了更多成功，穿過漏斗，並產生了我們有機會執行的可操作項目。所以沒什麼大的或重要的。只是市場有所改善，我們在抓住這些機會方面做得很好。

On your first question about the uptick in potential realizations, from time to time, we'll see that activity ebb and flow. It does not always mean that we get to an exit because there's a lot of things just like on our new investment activity, a lot of things have to go well in order for us and our portfolio company to get to a good outcome from an exit standpoint.

關於你關於潛在實現的上升的第一個問題，我們會不時看到這種活動的起伏。這並不總是意味著我們會退出，因為有很多事情就像我們的新投資活動一樣，很多事情必須進展順利才能讓我們和我們的投資組合公司從退出中獲得良好的結果立場。

But we have seen that increase, both in terms of at least one company where our partners in the business have an increased desire to seek liquidity, and then a couple of others where it's inbound activity, kind of unsolicited activity from third parties that has prompted some activity there.

但我們已經看到了這種成長，至少在一家公司方面，我們的業務合作夥伴越來越渴望尋求流動性，然後在其他幾家公司中，入境活動是第三方主動提供的活動，這促使我們的業務合作夥伴越來越渴望尋求流動性。

So we'll continue to execute on that, work to realize the best outcome for us and our partners in those lower middle market portfolio companies, and hope for a good outcome. If we don't exit, these -- the companies that we're referencing are all very strong, high-performing companies, and we'd be happy to continue to be invested in those companies long term.

因此，我們將繼續執行該計劃，努力為我們和中低端市場投資組合公司的合作夥伴實現最佳結果，並希望取得良好結果。如果我們不退出，我們所引用的這些公司都是非常強大、業績優異的公司，我們很樂意繼續長期投資這些公司。

Any observation about the kind of valuations? Are you seeing, perhaps, more attractive valuations that would prompt more realizations?

對這種估值有什麼觀察嗎？您是否看到更具吸引力的估值會促使更多的實現？

I don't know if I'd say there's a big change there. I mean, the market has gotten a little more heated or competitive. So overall, say today, valuations are probably a tick higher than they would have been 12 or 18 months ago. But I wouldn't say that there's anything that's materially different.

我不知道我是否會說那裡有很大的變化。我的意思是，市場變得更加激烈或競爭更加激烈。因此，總體而言，今天的估值可能比 12 或 18 個月前高出一點點。但我不會說有什麼本質上的不同。

I'll let David see if he has anything he wants to add. But it's a healthy market, it's a productive market, but not anything that we think is kind of a significant uptick. So David, I don't know if you'd add anything.

我會讓大衛看看他是否有什麼要補充的。但這是一個健康的市場，一個富有成效的市場，但我們認為沒有任何顯著的成長。大衛，我不知道你是否願意補充任何內容。

Yeah. Only thing I'd add is that if you look at the longer term for our size transactions, there has not been a material change in recent past. We did see some reluctance for sellers to come to market when interest rates picked up kind of more suddenly and there was concerns about the financing. So we saw some degradation in valuation multiples. Now, there's some normalcy in the new interest rate environment. It stabilized, but its back to historical norms for our lower middle market investment portfolio.

是的。我唯一要補充的是，如果你從長期來看我們的交易規模，你會發現最近並沒有發生重大變化。我們確實看到，當利率突然上升並且人們對融資感到擔憂時，賣家有些不願意進入市場。因此，我們看到估值倍數有所下降。現在，新的利率環境出現了一些常態。它穩定下來，但回到了我們中低端市場投資組合的歷史正常水平。

(Operator Instructions) Erik Zwick, Hovde Group.

（操作說明）Erik Zwick，Hovde Group。

Thanks. Good morning, everyone. First, just wanted to start on the second private loan fund, if you could just provide maybe an update on activity there in the first quarter. And then also I think you've previously indicated that you were targeting between $100 million and $300 million and curious if you've kind of narrowed that range or set a more kind of precise target? And then, ultimately, what factors do you consider in determining when to do the final closing. Is it just timing or size or changing market activity?

謝謝。大家，早安。首先，我只想啟動第二個私人貸款基金，如果您能提供第一季活動的最新情況的話。另外，我認為您之前曾表示您的目標在 1 億至 3 億美元之間，並且很好奇您是否縮小了該範圍或設定了更精確的目標？然後，最終，您在確定何時進行最終交割時會考慮哪些因素。只是時間、規模還是市場活動的變化？

Sure, Erik. Thanks for the question. When you look at the current activity in the first quarter, I'd say we didn't have a huge increase in equity commitments from LPs with some slight kind of moderate increase there but continue to have active dialogue with new investors about either joining the fund or existing investors about increasing their commitments. So we hope to continue to add on to that over the next year or so.

當然，埃里克。謝謝你的提問。當你看看第一季目前的活動時，我想說，我們的有限合夥人的股權承諾並沒有大幅增加，只是略有適度增加，但我們繼續與新投資者積極對話，討論是否加入基金或現有投資者增加其承諾。因此，我們希望在未來一年左右的時間內繼續增加這一點。

Just to give you a number, we're probably at about $80 million or just over $80 million of LP commitments in that second fund. When you look at the range we provided, which was $100 million to $300 million, as you indicated, today, I would say we're probably expecting to be somewhere closer to the $150 million would be more realistic. Unless we have significant success with some institutional investors coming in, it's unlikely we get to 300, but we still think it'll be larger than the first fund.

給你一個數字，第二支基金的有限合夥人承諾資金可能約為 8000 萬美元或略高於 8000 萬美元。當您查看我們提供的範圍（如您今天所指出的 1 億至 3 億美元）時，我會說我們可能期望接近 1.5 億美元會更現實。除非我們在一些機構投資者的加入上取得重大成功，否則我們不太可能達到 300 檔基金，但我們仍然認為它會比第一支基金更大。

And if we are successful in increasing it, when you put leverage on top of that, it is a nice increase to our asset management business long term. So we continue to be excited about the fund and continue to work on those fundraising activities. In terms of the timeline that you asked about, that's contractual. Like any other fund when we go out and we start the fundraising period or process, you typically set a date for how long that fundraising period will last. So we're no different.

如果我們成功地增加了它，當你在此基礎上增加槓桿時，這對我們的資產管理業務的長期成長來說是一個很好的成長。因此，我們繼續對該基金感到興奮，並繼續致力於這些籌款活動。就你問的時間表而言，這是合約規定的。與其他基金一樣，當我們開始籌款期或流程時，您通常會設定一個籌款期持續時間的日期。所以我們沒有什麼不同。

And when we set it, we set it for 18 months. So the fundraising process will continue for that 18-month duration. We started, I believe, in September of last year, off the top of my head, so it'll last through March of 2025, at least directionally. I think if that's not exactly right, that's pretty close to what the time period is.

當我們設定它時，我們設定了18個月。因此，籌款過程將持續 18 個月。我相信，我們從去年 9 月就開始了，所以它會持續到 2025 年 3 月，至少在定向上是如此。我認為，如果這不完全正確，那也非常接近那個時間段。

Thanks, Dwayne. That's very helpful. And second one for me. Just given the diversity -- industry diversity within your existing portfolios, as well as the current pipelines, there's still, I think, some degree of uncertainty over the economic trajectory and in which sectors or maybe industries are performing better or worse.

謝謝，德韋恩。這非常有幫助。對我來說第二個。考慮到現有投資組合中的多樣性——行業多樣性，以及當前的管道，我認為，經濟軌跡以及哪些部門或行業表現更好或更差仍然存在一定程度的不確定性。

I guess, are you able to see -- do you have kind of a glimpse through all of your activities of how the economy is underperforming, and are there any industries or sectors that you feel have kind of weakened and you're shying away from at this point at all?

我想，你是否能夠看到——透過你的所有活動，你是否對經濟表現不佳有所了解，是否有任何行業或部門你認為有所削弱並且你正在迴避此時此刻呢？

Sure, Erik. I would say there's not a change from what you've likely heard us say over the last 12 to 24 months. If I was to look at the industries and the portfolio companies that were invested in broadly, we have more companies today that are over-performing than are underperforming.

當然，埃里克。我想說的是，這與您在過去 12 到 24 個月中可能聽到的我們所說的話沒有任何變化。如果我廣泛觀察所投資的產業和投資組合公司，今天表現優異的公司比表現不佳的公司還多。

And if you look at the over-performance, I'd say the over-performance is pretty broad based if you look at it from an industrial or kind of a B2B standpoint or even businesses that are focused on the higher-end consumers from a demographic or from a customer base standpoint.

如果你看一下超額表現，我想說，如果你從工業或 B2B 的角度來看，甚至從專注於高端消費者的企業的角度來看，超額表現的基礎相當廣泛。角度來看。

We have been and continue to be risk-off or shy away from companies that are more focused on the consumer, particularly the lower-end of the consumer. I think you've probably heard this not just from BDC or investment firm calls over the last couple of quarters, but I think you're increasingly hearing it more broadly across the US economy, that the lower end of the consumer is being cost-conscious, he or she's trading down in terms of what they're buying, how much they're buying, et cetera.

我們一直並將繼續迴避風險或迴避那些更關心消費者，特別是低端消費者的公司。我想你可能不僅在過去幾個季度從BDC 或投資公司的電話中聽到過這一點，而且我認為你在整個美國經濟中越來越廣泛地聽到這樣的說法，即低端消費者正在付出成本－他或她有意識地在購買商品、購買數量等方面進行降價交易。

And we've definitely seen that. In the quarter, we had really good performance broadly across the portfolio. We did have a couple of companies that had significant underperformance. And as a result, we recognized meaningful, unrealized depreciation on those companies. And they were both businesses that have significant consumer exposure and I would say kind of broad, kind of lower end consumer exposure.

我們確實已經看到了這一點。在本季度，我們的整個投資組合都取得了非常好的表現。我們確實有幾家公司表現嚴重不佳。因此，我們認識到這些公司存在有意義的、未實現的折舊。他們都是擁有大量消費者曝光度的企業，我想說的是廣泛的、低階消費者曝光度。

So the risk we've been concerned about for the last couple of years, I think you're -- that's an area you've seen really start to impact things here the last three to six months or so. But other than that, I wouldn't really hit on anything else. But that has been a headwind here more recently.

因此，我們過去幾年一直擔心的風險，我認為，在過去三到六個月左右的時間裡，您已經看到這個領域真正開始影響這裡的事情。但除此之外，我真的不會想到其他事情。但最近這一直是個阻力。

Bryce Rowe, B. Riley Securities.

布萊斯‧羅 (Bryce Rowe)，B. 萊利證券 (Riley Securities)。

Told you I'll be back. Dwayne, maybe just a couple more for me. Can you talk about some of the yield dynamics within the three portfolios? You laid out in the press release, it looks like there was a bit of compression in the lower middle market in the private loan, just assuming that is reflective of where spreads have gone over the last three months or so.

告訴過你我會回來的。德韋恩，也許再給我幾個。您能談談這三個投資組合中的一些收益率動態嗎？您在新聞稿中指出，私人貸款的中低端市場似乎有一些壓縮，只是假設這反映了過去三個月左右的利差情況。

Sure, Bryce. Thanks for joining us again. Thanks for the follow-up question. I'll give some color on the lower middle market side, and then I've got Nick Meserve here with -- who leads our private credit group. I'll let him give some additional color on the private loan side.

當然，布萊斯。感謝您再次加入我們。感謝您的後續問題。我將介紹中低市場方面的情況，然後尼克·梅瑟夫（Nick Meserve）也在場，他領導我們的私人信貸小組。我會讓他在私人貸款方面提供一些額外的資訊。

On the lower middle market side, I wouldn't say that we've seen the interest rate environment, our ability to get good yields on new investments change. We're very disciplined, and we continue to be disciplined there and haven't really seen any impact. When you look at our lower middle market, rates change.

在中低階市場方面，我不會說我們已經看到利率環境以及我們在新投資中獲得良好收益的能力發生了變化。我們非常有紀律，我們繼續在那裡遵守紀律，但還沒有真正看到任何影響。當你觀察我們的中低端市場時，價格會改變。

If it is going down, it's more a result of our existing portfolio companies, particularly the ones that are performing really, really well. It's not uncommon for them to have an interest rate pricing grid in place. And as they perform, grow, de-lever, and move down that grid from a leverage standpoint, they'll see a benefit.

如果它下降，則更多是我們現有投資組合公司的結果，特別是那些表現非常非常好的公司。他們制定利率定價網格的情況並不少見。當他們表現、成長、去槓桿化並從槓桿的角度向下移動時，他們會看到好處。

So if you see some reduction in the rates on our lower middle market portfolio, it's really going to be that, which we -- obviously, we take a balanced approach. We think we've got some great companies, and we'd rather keep those companies in the portfolio longer term as opposed to have them exit. So we don't necessarily view that as a bad thing.

因此，如果您看到我們中低端市場投資組合的利率下降，那麼我們確實會採取平衡的方法。我們認為我們有一些很棒的公司，我們寧願將這些公司長期保留在投資組合中，而不是讓它們退出。所以我們不一定認為這是一件壞事。

On the private loan, private credit side, I do think, and you've probably heard this from others, I do think you're seeing some pressure there. The pressure is more -- in my opinion, more on the rate side, less on kind of structure and leverage. But I'll let Nick give some additional color there.

在私人貸款、私人信貸方面，我確實認為，你可能已經從其他人那裡聽說過這一點，我確實認為你看到了一些壓力。在我看來，壓力更大，更多的是利率方面的壓力，而不是結構和槓桿的壓力。但我會讓尼克給一些額外的顏色。

Yes, Bryce, I'd say we're probably back to '21, '22 spreads after kind of the spread widening of last year. And so, we're fully in, sort of between 50 and 75 basis points over the last six to nine months as the market has gotten a little more competitive and people are out there trying to put more money to work. I'd say it's more focused on spread so far and less on incremental debt leverage or deal terms.

是的，布萊斯，我想說，在去年利差擴大之後，我們可能又回到了 21、22 利差。因此，在過去六到九個月裡，隨著市場競爭變得更加激烈，人們試圖投入更多資金，我們完全處於 50 到 75 個基點之間。我想說的是，到目前為止，它更關注利差，而不是增量債務槓桿或交易條款。

Okay. All right. Yeah. I mean, I think that's pretty consistent with what we've heard throughout from the other BDCs. Maybe another one for Jesse. You guys have clearly outearned the dividend, even with the supplementals. Jesse, do you have a good, maybe an estimate of where spillover is sitting at this point?

好的。好的。是的。我的意思是，我認為這與我們從其他 BDC 聽到的情況非常一致。也許傑西還有另一份。即使有補充，你們顯然已經超過了股息。傑西，你對目前溢出的情況有一個好的估計嗎？

Yeah, Bryce. I think from memory, spillover was around $70 million, $80 million. I can pull that up for you and get it back to you.

是的，布萊斯。我記得，溢出效應大約是 7,000 萬美元、8,000 萬美元。我可以幫你把它拉出來然後還給你。

Okay. Okay. Then last one for me. It looked like non-accruals were down for the quarter on a cost basis. Any color there? Is it just normal ebbs and flows of non-accruals in and out of that bucket?

好的。好的。然後最後一張給我。以成本計算，本季的非應計費用似乎有所下降。那裡有什麼顏色嗎？這只是非應計費用進出該桶的正常潮起潮落嗎？

Yes. There's -- Bryce, on the non-accruals, nothing significant. We had one company that we had a realized loss on. Obviously, that company, when it was on non-accrual, it comes off non-accrual. And then we had one new addition, a small addition to the non-accrual, which is why you saw that stat go down when you look at it on a percentage basis.

是的。布萊斯，關於非應計費用，沒有什麼重要的。我們有一家公司已實現虧損。顯然，該公司在非應計利潤時，也不再是應計利潤。然後我們增加了一項新內容，即非應計項目的一小部分，這就是為什麼當您按百分比查看該統計數據時會看到該統計數據下降的原因。

Going back to Jesse's -- your question for Jesse. We're just under 90 -- I'm sorry. Just under $80 million of spillover. So right at a buck a share from a spillover income standpoint at the end of the quarter.

回到傑西的問題——你問傑西的問題。我們還不到 90 歲——對不起。外溢效應略低於 8000 萬美元。因此，從季度末溢出收入的角度來看，每股一美元是正確的。

This concludes our question-and-answer session. I'd like to turn the floor back over to management for closing comments.

我們的問答環節到此結束。我想將發言權交還給管理層以徵求結束意見。

We just want to say thank you again, everyone, for joining us this morning. And thank you for your continued long-term support of Main Street. And we look forward to talking to you again in early August after our second-quarter results.

我們只想再次感謝大家今天早上加入我們。並感謝您長期以來對 Main Street 的支持。我們期待在八月初第二季業績公佈後再次與您交談。

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，感謝您的參與。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。