Nuveen Churchill Direct Lending Corp (NCDL) 2025 Q3 法說會逐字稿

Welcome to Nuveen Churchill Direct Lending Corp's third-quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.

歡迎參加 Nuveen Churchill Direct Lending Corp 2025 年第三季財報電話會議。（操作員說明）提醒各位，本次電話會議將會被錄音，以便重播。

I would like to turn the conference over to Robert Paun, Head of Investor Relations for NCDL. Robert, please go ahead.

我謹將會議交給 NCDL 投資者關係主管 Robert Paun 先生。羅伯特，請繼續。

Good morning, and welcome to Nuveen Churchill Direct Lending Corp's third-quarter 2025 earnings call. Today, I'm joined by NCDL's Chairman, President and CEO, Ken Kencel; and Chief Financial Officer, Shai Vichness. Following our prepared remarks, we will be available to take your questions.

早安，歡迎參加 Nuveen Churchill Direct Lending Corp 2025 年第三季財報電話會議。今天，我邀請到了 NCDL 的董事長、總裁兼執行長 Ken Kencel 和財務長 Shai Vichness。在我們發言結束後，我們將回答各位的問題。

Today's call may include forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections about the company, our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict.

今天的電話會議可能包含前瞻性陳述。此類聲明涉及已知和未知的風險、不確定性及其他因素，不應過度依賴。這些前瞻性陳述並非歷史事實，而是基於我們對公司、我們當前和未來的投資組合、我們的行業、我們的信念和意見以及我們的假設的當前預期、估計和預測。這些聲明並非對未來績效的保證，並且受到風險、不確定性和其他因素的影響，其中一些因素是我們無法控制且難以預測的。

Actual results may differ materially from those expressed or forecasted in the forward-looking statements. We ask that you refer to the company's most recent filings with the SEC for important risk factors. Any forward-looking statements made today do not guarantee future performance and undue reliance should not be placed on them. The company assumes no obligation to update any forward-looking statements at any time. Our earnings release, 10-Q, and supplemental earnings presentation are available on the Investor Relations section of our website at ncdl.com.

實際結果可能與前瞻性聲明中表達或預測的結果有重大差異。請您參考該公司最近向美國證券交易委員會提交的文件，以了解重要的風險因素。今天所作的任何前瞻性陳述均不保證未來的業績，不應過度依賴這些陳述。本公司不承擔在任何時候更新任何前瞻性聲明的義務。我們的獲利報告、10-Q 表格和補充獲利簡報可在我們網站 ncdl.com 的投資者關係部分查閱。

Now I would like to turn the call over to Ken.

現在我想把電話交給肯恩。

Thank you, Robert. Good morning, everyone, and thank you all for joining us today. Today, I will start by discussing our results for the third quarter. And then I'll discuss current market conditions, our origination activity, portfolio positioning, and our forward outlook. Following my comments, I will hand the call over to Shai for a more detailed discussion of our financial performance.

謝謝你，羅伯特。各位早安，感謝大家今天收看我們的節目。今天，我將首先討論我們第三季的業績。然後我將討論當前的市場狀況、我們的貸款發放活動、投資組合配置以及我們的未來展望。在我演講結束後，我將把電話交給 Shai，讓他更詳細地討論我們的財務表現。

This morning, we reported net investment income of $0.43 per share during the third quarter compared to $0.46 per share in the second quarter. Gross originations totaled approximately $29 million in the quarter compared to $48 million in the second quarter of this year. Similar to the prior quarter, the decline quarter over quarter was intentional as we continue to operate towards the higher end of our target leverage range.

今天早上，我們公佈了第三季每股淨投資收益為 0.43 美元，而第二季為每股 0.46 美元。本季貸款總額約 2,900 萬美元，而今年第二季為 4,800 萬美元。與上一季類似，本季環比下降是有意為之，因為我們繼續在目標槓桿率範圍的較高水平上運作。

As I will discuss later in my prepared remarks, the Churchill platform continued to see strong asset growth and new originations during the quarter. Our investment portfolio remains healthy, and our portfolio companies continue to perform well largely due to the strength of our Senior Loan Investments.

正如我稍後將在準備好的演講稿中討論的那樣，邱吉爾平台在本季度繼續保持強勁的資產成長和新業務拓展。我們的投資組合依然健康，投資組合公司持續表現良好，這主要歸功於我們高級貸款投資的強勁表現。

Net asset value was $17.85 per share as of September 30 compared to $17.92 per share as of June 30. The modest decline quarter over quarter was primarily due to a slight decrease in the fair value of certain underperforming portfolio companies.

截至9月30日，每股淨值為17.85美元，而截至6月30日，每股淨值為17.92美元。環比小幅下滑主要是因為某些業績不佳的投資組合公司的公允價值略有下降。

Turning to the current market environment. M&A activity continued its positive momentum in the third quarter, building on the rebound in market sentiment that began towards the end of the second quarter. Investment activity has now returned to a more normalized level, following the pause in activity after Liberation Day. Stabilizing market conditions and renewed sponsor confidence in the macro environment contributed to increased transaction execution.

轉而關注當前市場環境。第三季併購活動持續保持正面勢頭，延續了第二季末開始的市場情緒反彈動能。在解放日之後投資活動一度暫停，但目前已恢復到較正常的水平。市場環境趨於穩定，發起人對宏觀環境的信心恢復，這些因素共同促進了交易執行的增加。

During the third quarter, the Federal Reserve began an interest rate cut cycle with a 25-basis-point cut in September and another 25-basis-point cut in October, with further rate cuts anticipated but not guaranteed. Against this backdrop, with a predominantly floating rate portfolio, NCDL and other private credit funds are interest rate sensitive. Partially offsetting this dynamic, NCDL has the benefit of a floating rate debt capital structure as well as a lower interest burden for our portfolio companies. We believe the latter should drive growth dynamics as portfolio companies will have more capital and cash flow to reinvest into growth areas of their respective businesses.

第三季度，聯準會開始了降息週期，9 月降息 25 個基點，10 月再次降息 25 個基點，預計還會進一步降息，但不能保證。在此背景下，由於其投資組合主要為浮動利率，NCDL 和其他私人信貸基金對利率較為敏感。部分抵銷這種動態的是，NCDL 享有浮動利率債務資本結構的優勢，其投資組合公司享有較低的利息負擔。我們認為後者將推動成長動力，因為投資組合公司將擁有更多資本和現金流，可以再投資於各自業務的成長領域。

In addition, a lower interest rate environment typically encourages increased M&A activity due to lower financing costs for private equity-backed businesses. Despite the potential for further rate reductions, we continue to see an attractive risk-return profile for private credit and direct lending, especially on a relative basis compared to other fixed income asset classes.

此外，較低的利率環境通常會鼓勵併購活動增加，因為私募股權支持的企業融資成本較低。儘管利率可能進一步下調，但我們仍然認為私人信貸和直接貸款具有有吸引力的風險回報特徵，尤其是與其他固定收益資產類別相比。

We also witnessed significant market volatility in private credit funds, particularly BDC stock prices over the past several weeks, following significant media attention given to two large bankruptcies. We want to make it clear that NCDL and any other Churchill vehicles do not have any exposure to either of these two investments, Tricolor and First Brands.

過去幾週，由於兩起大型破產案受到媒體的廣泛關注，我們也目睹了私人信貸基金，特別是 BDC 股票價格的顯著市場波動。我們想明確指出，NCDL 和任何其他 Churchill 旗下公司都沒有持有 Tricolor 和 First Brands 這兩家公司的股份。

We also do not see any evidence of broad-based challenges across our portfolio. At Churchill, we focus on sponsor-backed businesses with significant equity cushions. And we have long-standing experience focusing on less cyclical, more defensive end markets that demonstrate resilience across market cycles.

我們也沒有發現投資組合中有任何普遍性挑戰的跡象。在邱吉爾，我們專注於擁有雄厚股權儲備的贊助商支持的企業。我們長期以來一直專注於週期性較小、防禦性較強的終端市場，這些市場在市場週期中展現出韌性。

As we continue to end the year strong and look towards 2026, we remain optimistic about the long-term prospects of the company given our positioning as a leader in the core middle market. Our longstanding performance track record, deep network of sponsor relationships, and extensive LP commitments across the broader Churchill platform, and we remain intensively focused on continuing to invest in high-quality assets and deliver attractive risk-adjusted returns to our shareholders.

隨著我們繼續保持強勁的業績勢頭，展望 2026 年，鑑於我們在核心中端市場的領導地位，我們對公司的長期前景仍然保持樂觀。憑藉我們長期的業績記錄、深厚的贊助商關係網絡以及在更廣泛的邱吉爾平台上的廣泛有限合夥人承諾，我們將繼續專注於投資高品質資產，並為我們的股東帶來具有吸引力的風險調整後回報。

Now turning to our investment activity. As I mentioned earlier, our pipeline for new deal flow started to increase and returned to a more normalized level in June of this year, following the temporary pause in April and May. During the third quarter, we continued to see an increase in transaction activity, particularly new deals for high-quality assets that are in resilient nontariff exposed sectors.

現在來談談我們的投資活動。正如我之前提到的，在經歷了 4 月和 5 月的暫時停滯之後，今年 6 月，我們的新交易量開始增加並恢復到較正常的水平。第三季度，我們繼續看到交易活動增加，特別是高品質資產的新交易，這些資產位於不受關稅影響的韌性行業。

At the Churchill platform level, the number of deals reviewed in the third quarter increased 22% from the second quarter of this year. And in the first nine months of 2025, Churchill closed or committed $9.4 billion across 265 transactions, driven by a record-setting first quarter and a resurgence of activity in the third quarter.

在邱吉爾平台層面，第三季審查的交易數量比今年第二季增加了 22%。2025 年前九個月，邱吉爾完成了 265 筆交易，總額達 94 億美元，這主要得益於創紀錄的第一季和第三季活動的復甦。

During the third quarter at NCDL, we continue to reduce allocation sizes to new deal flow, primarily due to the fact that we are operating at the high end of our target leverage range. With that said, we continue to benefit from attractive opportunities and activity at the Churchill platform level. Although the percentages of allocation to junior capital and equity were higher during the quarter, we remain focused on senior lending, which represents approximately 90% of the fair value of the overall portfolio.

在 NCDL 的第三季度，我們繼續減少對新交易流的分配規模，這主要是因為我們的營運槓桿率處於目標範圍的高端。儘管如此，我們仍然受益於邱吉爾平台層面的各種誘人機會和活動。儘管本季對次級資本和股權的配置比例有所上升，但我們仍專注於優先貸款，約佔整個投資組合公允價值的 90%。

We also remain focused on the traditional core middle market, benefiting from our differentiated sourcing and long-term track record. We continue to target companies with $10 million to $100 million of EBITDA, which we believe helps insulate us from the more aggressive structures and loosening terms prevalent in the upper middle market and broadly syndicated loan space. It is our view that risk-adjusted returns in this segment of the market remain among the most compelling in private credit, particularly for scaled, highly selective managers with deep private equity relationships. We see the core middle market as a durable opportunity to generate great long-term value and enhanced portfolio diversification for our investors.

我們也將繼續專注於傳統的核心中端市場，受益於我們差異化的採購方式和長期的良好業績記錄。我們繼續瞄準 EBITDA 在 1000 萬美元至 1 億美元之間的公司，我們認為這有助於我們免受中高端市場和廣泛銀團貸款領域中更激進的結構和更寬鬆的條款​​的影響。我們認為，該市場領域的風險調整後收益仍然是私募信貸領域最有吸引力的收益之一，特別是對於規模龐大、眼光獨到且與私募股權公司關係密切的基金經理而言。我們認為核心中端市場是一個持久的機會，可以為我們的投資者創造巨大的長期價值並增強投資組合的多元化。

In terms of our portfolio and credit quality, the continued strength of our portfolio reflects healthy overall performance from our borrowers as well as the quality of deal flow we've experienced over the last several years. In addition, our rigorous underwriting, high level of selectivity, and focus on diversification have been critical to minimizing losses and generating strong returns across multiple market cycles. That same discipline extends to today's shifting macro landscape.

就我們的投資組合和信貸品質而言，我們投資組合的持續強勁反映了借款人整體的良好表現，以及我們在過去幾年中所經歷的交易品質。此外，我們嚴格的承保、高度的篩選和對多元化的關注，對於在多個市場週期中最大限度地減少損失和產生強勁的回報至關重要。這種嚴謹的態度同樣適用於當今不斷變化的宏觀環境。

As of September 30, our weighted average internal risk rating was 4.2 versus an original rating of 4.0 for all of our investments at the time of origination, and our watch list remains at a very manageable level of approximately 7% of fair value. Credit fundamentals within the NCDL portfolio remains strong with portfolio company total net leverage of 5 times and interest coverage of 2.3 times on traditional middle market first lien loans. These metrics are a direct result of conservative structuring, and relatively low attachment points that we target when underwriting new transactions.

截至 9 月 30 日，我們的加權平均內部風險評級為 4.2，而我們所有投資在最初投資時的評級為 4.0，我們的觀察名單仍然保持在非常可控的水平，約為公允價值的 7%。NCDL 投資組合的信貸基本面依然強勁，投資組合公司的總淨槓桿率為 5 倍，傳統中端市場優先擔保貸款的利息覆蓋率為 2.3 倍。這些指標是保守結構和我們在承銷新交易時所設定的相對較低的附加點的直接結果。

NCDL had two new nonaccruals during the third quarter, which were relatively smaller positions in the portfolio. Despite the slight increase in nonaccruals this quarter, we believe our percentages continue to compare extremely well versus BDC industry averages. As of September 30, nonaccruals represent just 0.4% of our total investment portfolio on a fair value basis and 0.9% on a cost basis. We believe the strength of our platform, including experienced workout and portfolio management teams will continue to drive favorable results.

NCDL 在第三季新增了兩筆非應計投資，這兩筆投資在投資組合中的比例相對較小。儘管本季度非應計項目略有增加，但我們相信，與 BDC 行業平均水平相比，我們的百分比仍然非常優異。截至 9 月 30 日，非應計項目以公允價值計算僅占我們投資組合總額的 0.4%，以成本計算僅佔 0.9%。我們相信，我們平台的實力，包括經驗豐富的重組和投資組合管理團隊，將繼續帶來良好的績效。

Portfolio diversification remains a key focus of ours within our overall investment portfolio. This has been achieved with a continued high level of selectivity, facilitated by the significant proprietary deal flow our sourcing engine is able to generate from the breadth and depth of our PE relationships. As of September 30, we had 213 companies in our portfolio, and our top 10 portfolio companies represented less than 14% of the total fair value. This diversification is critical as we seek to maintain exceptional credit quality and originate additional attractive opportunities.

投資組合多元化仍然是我們整體投資組合中的一個重點。這得益於我們持續保持高度的選擇性，以及我們的資源引擎能夠從我們廣泛而深入的私募股權關係中產生大量的專有交易機會。截至 9 月 30 日，我們的投資組合中有 213 家公司，其中前 10 家投資組合公司的市值佔比不到總市值的 14%。這種多元化至關重要，因為我們力求保持卓越的信貸品質並創造更多有吸引力的投資機會。

From a forward-looking perspective, we continue to have an optimistic outlook for private credit based on significant tailwinds to our business. We are encouraged by the steady growth in our pipeline and the quality of businesses seeking financial solutions. Following a period of uncertainty and volatility in the markets driven by Liberation Day in which investment activity and deal flow came to a pause, we've experienced a resurgence of M&A activity leading to the buildup in our traditional middle market pipeline.

從前瞻性的角度來看，基於我們業務的許多利多因素，我們對私募信貸市場依然保持樂觀態度。我們對業務成長的穩步推進以及尋求金融解決方案的企業的品質感到鼓舞。在解放日引發的市場不確定性和波動性時期之後，投資活動和交易量一度停滯，但隨後併購活動復甦，導致我們傳統的中端市場項目儲備增加。

Additionally, we believe corporate management teams are now more focused on long-term strategic initiatives and investing in their businesses for sustained growth. This, coupled with an interest rate cut cycle, will lead to increasing deal flow and financing opportunities in 2026 in our view. We believe we remain well positioned due to our scale, our differentiated sourcing as an LP in over 325 private equity funds, and our nearly 20-year track record of investing across interest rate and economic cycles.

此外，我們認為企業管理團隊現在更加重視長期策略舉措，並投資於業務以實現持續成長。我們認為，這種情況，再加上降息週期，將導致 2026 年交易量和融資機會增加。我們相信，憑藉我們的規模、作為 325 多個私募股權基金的有限合夥人所擁有的差異化投資來源，以及近 20 年來在利率和經濟週期中投資的良好記錄，我們仍然處於有利地位。

And now I'll turn the call over to Shai to discuss our financial results in more detail.

現在我將把電話交給 Shai，讓他更詳細地討論我們的財務表現。

Thank you, Ken, and good afternoon, everyone. I will now review our third-quarter financial results in more detail. During the third quarter, NCDL reported net investment income of $0.43 per share compared to $0.46 per share in the second quarter of 2025. The decline was largely due to lower interest income driven in part by the two nonaccruals we added in the quarter.

謝謝你，肯，大家下午好。接下來，我將更詳細地回顧我們第三季的財務表現。第三季度，NCDL 報告每股淨投資收益為 0.43 美元，而 2025 年第二季為每股 0.46 美元。下降的主要原因是利息收入減少，部分原因是本季我們新增了兩個非應計項目。

Total investment income declined slightly quarter over quarter to $51.1 million in the third quarter compared to $53.1 million in the second quarter of this year. This was largely driven by the modest decline in the size of our investment portfolio and a modest decline in portfolio yields as a result of underlying loan contracts resetting to lower base rates. At September 30, our gross debt-to-equity ratio was 1.25 times compared to 1.26 times at June 30. Our net debt-to-equity ratio net of cash was 1.2 times compared to 1.21 times at June 30 of this year.

第三季總投資收益較上一季略有下降，為 5,110 萬美元，而今年第二季為 5,310 萬美元。這主要是由於我們的投資組合規模略有下降，以及由於基礎貸款合約重置為較低的基準利率而導致的投資組合收益率略有下降。截至 9 月 30 日，我們的總負債權益比率為 1.25 倍，而 6 月 30 日為 1.26 倍。扣除現金後的淨負債權益比率為 1.2 倍，而今年 6 月 30 日為 1.21 倍。

In October, we paid a regular dividend of $0.45 per share, which equates to an annualized yield of approximately 10% on our quarter-end net asset value per share. For the fourth quarter, we have declared a $0.45 per share quarterly dividend, which is consistent with prior quarters.

10 月份，我們派發了每股 0.45 美元的常規股息，以季度末每股淨值計算，年化收益率約為 10%。第四季度，我們宣布派發每股 0.45 美元的季度股息，與前幾季一致。

Our total GAAP net income in the third quarter was $0.38 per share compared to $0.32 per share in the second quarter of this year. Our third-quarter net income included $0.05 per share of net realized and unrealized losses primarily due to a decrease in the fair value of certain underperforming portfolio companies, partially offset by the realization of an equity investment in the gain.

我們第三季的GAAP淨收入為每股0.38美元，而今年第二季為每股0.32美元。第三季淨收入包括每股 0.05 美元的已實現和未實現淨虧損，主要原因是某些業績不佳的投資組合公司的公允價值下降，部分被股權投資收益的實現所抵消。

Our net asset value was $17.85 per share at the end of the third quarter compared to $17.92 per share at June 30. NCDL's investment portfolio had a fair value of $2 billion at September 30, consistent with the prior quarter. Gross originations totaled approximately $29 million and gross investment fundings totaled approximately $36 million compared to $48 million and $81 million of gross originations and gross investment fundings respectively in the second quarter of this year.

第三季末，我們的每股淨值為 17.85 美元，而 6 月 30 日為每股 17.92 美元。截至9月30日，NCDL的投資組合公允價值為20億美元，與上一季一致。貸款發放總額約 2,900 萬美元，投資總額約 3,600 萬美元，而今年第二季貸款發放總額和投資總額分別為 4,800 萬美元和 8,100 萬美元。

During the third quarter, repayments totaled 3%, which is lower than our long-range assumption of 5% per quarter. We had full repayments on four deals totaling $42 million and partial repayments for another $18 million.

第三季還款總額為 3%，低於我們每季 5% 的長期預期。我們有四筆交易的款項全部償還，總額達 4,200 萬美元；另有 1,800 萬美元的款項部分償還。

On a net basis, we saw a reduction in our funded investment portfolio of approximately $25 million. This reduction was intentional as we redeployed capital received from repayments with a view towards maintaining leverage at the upper end of our target range. As we look forward, we expect to continue to redeploy capital received in connection with repayments into traditional middle market transactions across the capital structure.

淨額來看，我們的投資組合減少了約 2,500 萬美元。此減持是有意為之，因為我們將償還款項所得的資金重新部署，以期將槓桿率維持在目標範圍的上限。展望未來，我們預計將繼續將償還款項所得的資金重新部署到資本結構中的傳統中端市場交易中。

At the end of the third quarter, our total investment portfolio consisted of 213 names compared to 207 names at the end of the second quarter. We continue to remain highly focused on portfolio diversification with the top 10 portfolio companies comprising only 13.6% of the fair value of the portfolio. Our largest exposure is only 1.6% of the total portfolio and our average position size remains at 0.5%. Diversification continues to be a key focus of ours within the investment portfolio.

第三季末，我們的投資組合共有 213 隻股票，而第二季末則有 207 隻股票。我們持續高度重視投資組合多元化，前 10 家投資組合公司僅佔投資組合公允價值的 13.6%。我們最大的持股僅佔總投資組合的 1.6%，平均持股規模維持在 0.5%。投資組合多元化仍然是我們關注的重點。

In terms of deployment and asset selection, our new originations during the quarter were weighted towards senior loans with $22 million out of the $29 million of gross originations deployed into this strategy. The balance was deployed into subordinated debt and equity during the quarter. Our focus on the traditional market segment will benefit NCDL shareholders, we believe, as we see meaningfully higher spreads and tighter documentation terms in the traditional middle market compared to the upper end of the middle and BSL markets.

在部署和資產選擇方面，本季我們新增的貸款主要以優先貸款為主，在 2,900 萬美元的總新增貸款額中，有 2,200 萬美元被用於該策略。本季度，剩餘資金全部投入次級債務和股權投資。我們相信，我們對傳統市場領域的關注將使 NCDL 股東受益，因為我們看到傳統中端市場的價差明顯高於中端市場和 BSL 市場的高端市場，且文件條款也更為嚴格。

Spreads on new investments during the quarter were slightly down from the prior two quarters, with the average spread on first lien loans at 470 basis points compared to 480 basis points in the first two quarters of the year. Our weighted average yield on debt and income-producing investments at cost declined to 9.9% at the end of the quarter compared to 10.1% at the end of the second quarter. This decrease in yield was primarily due to overall tightening of spreads in newly originated investments as well as lower base interest rates.

本季新投資的利差較前兩季略有下降，第一順位抵押貸款的平均利差為 470 個基點，而今年前兩季為 480 個基點。本季末，我們以成本計算的債務和收益型投資的加權平均收益率下降至 9.9%，而第二季末為 10.1%。收益率下降主要是由於新發放投資的利差整體收窄以及基準利率走低所致。

In terms of portfolio allocation, at the end of the third quarter, first lien loans represented approximately 90% of the total portfolio, while junior debt and equity comprised approximately 8% and 2%, respectively. Our allocation strategy remains unchanged as we continue to target 85% to 90% senior loans with the balance allocated to junior debt and equity.

就投資組合配置而言，截至第三季末，優先擔保貸款約佔總投資組合的 90%，而次級債務和股權分別約佔 8% 和 2%。我們的資金分配策略保持不變，我們將繼續以 85% 至 90% 的優先貸款為目標，其餘部分分配給次級債務和股權。

Turning to credit quality. We continue to be pleased with the health of our investment portfolio. Although we placed two smaller investments on nonaccrual status during the quarter, the overall performance of our portfolio companies continues to be strong. At the end of the third quarter, NCDL had three names on nonaccrual, representing just 0.4% on a fair value basis and 0.9% at cost. This compares to 0.2% on a fair value basis and 0.4% at cost at the end of the second quarter.

接下來關注信用品質。我們對投資組合的健康狀況依然感到滿意。儘管本季我們將兩項較小的投資置於非應計狀態，但我們投資組合公司的整體業績依然強勁。第三季末，NCDL 有三隻股票處於非應計狀態，以公允價值計算僅佔 0.4%，以成本計算僅佔 0.9%。相較之下，以公允價值計算的比例為 0.2%，以成本計算的比例為 0.4%（截至第二季末）。

Our weighted average internal risk rating was 4.2% at September 30, and our watch list consisting of names with an internal risk rating 6 or worse remains at a relatively low level of 7.3% at the end of the third quarter, in line with the prior quarter. And finally, our conservative approach to underwriting is highlighted by our weighted average net leverage across the portfolio of 5 times and interest coverage of 2.3 times at the end of the third quarter.

截至 9 月 30 日，我們的加權平均內部風險評級為 4.2%，而內部風險評級為 6 或更低的公司觀察名單在第三季末仍保持在相對較低的水平 7.3%，與上一季持平。最後，我們保守的承保方法體現在第三季末投資組合的加權平均淨槓桿率為 5 倍，利息保障倍數為 2.3 倍。

With respect to our capital structure, on the right-hand side of our balance sheet, our debt-to-equity ratio at September 30 is relatively unchanged quarter over quarter at 1.25 times compared to 1.26 times at June 30. And on a net basis was 1.2 times at September 30, net of our cash position at quarter end. As we spoke about on prior calls, our goal is to redeploy capital received from repayments and maintain leverage towards the upper end of our target range of 1 to 1.25 times debt to equity.

就我們的資本結構而言，在資產負債表的右側，截至 9 月 30 日，我們的債務權益比率與上一季相比基本保持不變，為 1.25 倍，而 6 月 30 日為 1.26 倍。截至 9 月 30 日，淨比率為 1.2 倍，已扣除季度末的現金部位。正如我們在先前的電話會議中談到的那樣，我們的目標是重新部署從償還款項中獲得的資金，並將槓桿率維持在目標範圍的上限，即債務權益比為 1 至 1.25 倍。

Lastly, as discussed, our focus for the near term is on optimizing the asset mix within the portfolio and actively reinvesting cash received from repayments and sales into high-quality assets.

最後，正如先前討論過的，我們近期的重點是優化投資組合中的資產組合，並將從償還和出售中獲得的現金積極再投資於高品質資產。

I'll now turn it back to Ken for closing remarks.

現在我把發言權交還給肯，請他作總結發言。

Thank you, Shai. In closing, we are pleased with our financial results and the performance of our portfolio during the third quarter. As we enter the last two months of the year and look towards 2026, NCDL remains well positioned with respect to our experienced investment team, high-quality diversified portfolio, and strong capital structure. And we continue to remain optimistic about the long-term future of the private credit markets and NCDL's long-term success based on the successful track record of the Churchill platform and operating across various market conditions and cycles.

謝謝你，莎伊。最後，我們對第三季的財務表現和投資組合表現感到滿意。隨著我們進入今年的最後兩個月並展望 2026 年，NCDL 憑藉經驗豐富的投資團隊、高品質的多元化投資組合和強大的資本結構，仍然處於有利地位。我們仍然對私人信貸市場的長期前景和 NCDL 的長期成功保持樂觀，這基於 Churchill 平台的成功業績記錄以及在各種市場條件和周期中的營運經驗。

Additionally, with NCDL's shares trading at a material discount to our net asset value, and around a 12% annualized yield, we continue to view the shares as an attractive investment opportunity. Thank you all for joining us today and your interest in NCDL.

此外，由於 NCDL 的股票交易價格較我們的淨資產值有較大折讓，且年化收益率約為 12%，我們仍然認為該股票是一個有吸引力的投資機會。感謝各位今天蒞臨指導，也感謝大家對NCDL的關注。

I will now turn the call over to the operator for Q&A.

現在我將把電話轉交給接線生進行問答環節。

(Operator Instructions) Brian McKenna, Citizens JMP.

（操作說明）布萊恩·麥肯納，市民 JMP。

Okay. Great. So just on the few nonaccruals in the portfolio today, I'm curious, when were these investments made? And I guess, looking back to the time of underwriting, what's changed relative to those initial expectations? And why did those assets ultimately underperform.

好的。偉大的。所以，就目前投資組合中少數非應計投資而言，我很好奇，這些投資是什麼時候進行的？我想，回顧承保時期，與最初的預期相比，發生了哪些變化？為什麼這些資產最終表現不佳？

Brian, it's Shai. So just a couple of things on the two new nonaccruals. So I think as we've spoken about in the past, just in terms of the names that are on the nonaccrual list and sort of trying to draw through lines in terms of themes, I would say, fairly difficult to do that just given the idiosyncratic nature of some of these and as they pop up.

布萊恩，我是沙伊。關於這兩項新的非應計項目，有幾點需要說明。所以我覺得，正如我們過去所討論過的，就那些在非累積名單上的名字而言，並試圖從主題方面找出一些線索，我認為這相當困難，因為其中一些名字具有獨特的性質，而且它們還會不斷出現。

And in terms of these two names that were placed on nonaccrual, you heard Ken speak about them on the call, just in terms of the size of the position is relatively small speaking to the sort of diversification points across the portfolio. Both of these positions were junior capital names that were placed on the nonaccrual list this quarter. One of them is in the automotive sort of market accessory segment. And the other one is in essentially the freight sector. So it's a training business and recruiting business for for truck drivers.

至於這兩個被列入非應計計劃的股票，你們在電話會議上也聽到了 Ken 的講話，就持倉規模而言，它們相對較小，這與投資組合的多元化有關。這兩個職位都是本季被列入非應計名單的初級資本公司。其中一家是汽車配件市場領域的公司。另一家公司則主要從事貨運業務。所以，這是一家為卡車司機提供培訓和招聘服務的公司。

So again, no real theme to draw in terms of the two new nonaccruals.

所以，就這兩個新的非應計項目而言，並沒有什麼真正的主題可以總結。

In terms of when the investments were made again, they have been in the portfolio for a couple of years now. So the decline and just sort of the trend, I would say, on the one hand, the overall freight reception and just sort of what we're seeing and we've had another nonaccrual and restructuring in the portfolio in the same industry. I would say that's sort of the theme there. And then the other one, it's really just a function of softness on the top line in terms of the performance there. And both of these investments were made actually in 2021.

至於這些投資何時再次進行，它們已經在投資組合中存在了幾年了。所以，一方面，我認為整體貨運量下降，另一方面，我們看到的情況是，同一產業的投資組合中又出現了另一個非應計項目和重組。我覺得這大概就是那裡的主題。而另一個問題，其實只是頂部線條的柔和程度對表現的影響。這兩項投資其實都是在 2021 年進行的。

So they've been around for quite a bit. and the decline got to a point now where we felt it was appropriate to place them on nonaccrual status.

所以它們已經存在相當長一段時間了。而它們的衰退已經到了我們認為應該將它們置於非累積狀態的地步。

Okay. That's helpful. And then just on the workout process more broadly, how long does it typically take to restructure a loan in the portfolio and then ultimately get to a resolution. And then can you just remind us what the historical recovery rates for your business look like?

好的。那很有幫助。那麼，就更廣泛的債務重組過程而言，重組投資組合中的貸款並最終達成解決方案通常需要多長時間？那麼，您能否簡單介紹一下貴公司的歷史恢復率情況？

Yes. I can come on both. So just in terms of the timing, it's obviously going to vary depending on the severity of the situation and sort of the engagement with the private equity sponsor and the ultimate prospects for recovery of the underlying business. So it's a tough one answer in terms of how long does it take. But clearly, it can be a few month process.

是的。兩個我都可以來。所以就時間安排而言，顯然會根據情況的嚴重程度、與私募股權贊助商的合作情況以及基礎業務最終復甦的前景而有所不同。所以，要回答需要多久這個問題，很難說清楚。但很顯然，這可能需要幾個月的時間。

It can take as long as a year to sort of work through the restructuring and then the timing to recovery is clearly going to be market and company-specific in terms of how well that takes. So it's sort of a tough one to vector in on a specific time line.

重組可能需要長達一年的時間才能完成，而復甦的時間顯然取決於市場和公司的具體情況，以及復甦的進展。所以很難確定具體的時間軸。

And then in terms of the recovery rates in the portfolio, again, they tend to vary depending on the situation and depending on our spot in the capital structure. So for senior loans. We have a number of instances where recoveries have been in excess of par. We have others where they've been in the 70s and 80s and others that have been lower for junior capital, I would say it tends to be a bit more binary right, the situation works out or it doesn't and we tend to be sort of in that fulcrum security where we're then riding the equity upside in the future. So again, it's going to be variable.

至於投資組合的回收率，同樣，它們往往會根據具體情況以及我們在資本結構中的位置而有所不同。所以，對於老人貸款來說也是如此。我們有好幾個案例，回收金額都超過了預期。我們還有一些公司，它們的估值在 70 到 80 之間，而其他公司，它們的估值則更低，屬於初級資本。我認為情況往往比較非此即彼，要嘛成功，要嘛失敗。我們往往處於一種平衡狀態，未來可以坐享股權上漲帶來的利益。所以，結果會因情況而異。

But obviously, recoveries, you'd expect them to be higher on senior loans than on junior capital.

但很顯然，優先貸款的回收率會高於次級貸款。

Got it. Great. And then just maybe one more for Ken here on the stock. So trading at 80% of NAV, leverage is at the upper end of the target. You already repurchased $100 million of stock.

知道了。偉大的。然後，或許可以再給肯補充一點關於股票的資訊。因此，以淨資產值的 80% 進行交易，槓桿率處於目標上限。你們已經回購了價值 1 億美元的股票。

But what else can you do? And I guess, what is the leadership team focused on in order to improve the valuation. And then I think the market is telling us that maybe you should think about cutting the dividend or reevaluating that. So I guess, why not reset the dividend a little bit especially given the two rate cuts we just got one at the end of September, 1 in October, and that would just put you in a position to comfortably cover the dividend, you'd likely create some incremental book value then maybe you have a little bit more capacity to buy back the stock at what I'm sure you think are really attractive levels.

但你還能做什麼呢？那麼，領導團隊為了提升公司估值，重點關注哪些面向呢？我認為市場正在告訴我們，或許你應該考慮削減股利或重新評估股利政策。所以我想，鑑於我們剛剛經歷了兩次降息（一次在九月底，一次在十月），為什麼不稍微調整一下股息呢？這樣一來，您就能輕鬆支付股息，可能會增加一些帳面價值，然後您或許就能以您認為非常有吸引力的價格回購股票。

Yes. No, look, from a business and an investment standpoint, the most important thing for us is to stay focused on continuing to originate and invest in high-quality assets. We've done that consistently over a 20-year period certainly more recently now with NCDL. We actually feel very, very good about the overall quality in our portfolio and the level of new dealer and investment activity. I will say from a from a pricing perspective, while we obviously saw spreads tighten, maybe not as dramatically as the BSL market over the last 12 to 18 months, things have, in terms of spread tightening, slowed down quite a bit.

是的。不，你看，從商業和投資的角度來看，對我們來說最重要的是繼續專注於開發和投資高品質資產。在過去的 20 年裡，我們一直堅持這樣做，尤其是在最近與 NCDL 合作之後。我們對投資組合的整體品質以及新經銷商和投資活動的水平感到非常滿意。從定價的角度來看，雖然我們顯然看到了價差收窄，但可能不像過去 12 到 18 個月的 BSL 市場那樣劇烈，但價差收窄的趨勢已經放緩了很多。

Spreads seem to have settled in at that kind of SOFR 450, 500 range, which has been good to see. But deal activity overall, the quality of the opportunities we're seeing to invest in, the level of M&A activity, all the fundamentals that we can control, we feel very good about those fundamentals right now.

價差似乎已經穩定在 SOFR 450、500 左右的區間，令人欣慰。但就整體交易活動、我們所看到的投資機會的品質、併購活動的水平以及所有我們能夠控制的基本面而言，我們目前對這些基本面感到非常滿意。

Deal activity quality of opportunities we're seeing, ability to stay highly selective, underlying pricing dynamics. So while obviously, base rates have come down and certainly albeit more slowly than expected, we would continue to see base rates we would expect to continue to see base rates come down. From a quality perspective, from a sourcing standpoint, all the fundamental dynamics we feel very good about, including the underlying portfolio quality.

交易活動品質、我們所看到的機會、維持高度選擇性的能力、潛在的定價動態。因此，雖然很明顯基準利率已經下降，而且下降速度肯定比預期的要慢，但我們預計基準利率將繼續下降。從品質角度、從採購角度來看，我們對所有基本動態都非常滿意，包括潛在的投資組合品質。

In terms of leverage, we have, Shai, I don't know if you want to speak I'm happy to speak to it. And I think we alluded to this on the last call and obviously, this earnings cycle and last, it's been a topic of conversation in terms of sort of where our earnings going across the industry. And as we commented last quarter, and I think we reinforced that this quarter, we felt good about our ability to continue to earn, again, within $0.01 or $0.02. Obviously, we underearned by $0.02 this quarter our dividend of $0.45. But again, within a range, and there were some reasons for that, including the two nonaccrual names that I alluded to in terms of reducing our earnings for this particular period.

沙伊，就我們擁有的籌碼而言，我不知道你是否想談談，我很樂意談談。我認為我們在上次電話會議上也提到了這一點，顯然，在本財報週期和上一個財報週期中，這都是關於整個行業盈利走向的討論話題。正如我們上個季度所提到的，而且我認為本季度我們也再次強調了這一點，我們對繼續盈利的能力充滿信心，預計盈利目標仍將控制在每股0.01美元或0.02美元的範圍內。顯然，本季我們的獲利比每股0.45美元的股利少了0.02美元。但同樣，這仍在預期範圍內，造成這種情況的原因有很多，包括我之前提到的兩家非應計公司，它們導致了我們本季的獲利下降。

But again, looking forward in the current base rate and spread environment, we continue to feel good about our ability to essentially earn plus or minus the $0.45, and that's something that we will continue to evaluate as we go forward. As I commented last quarter, we did talk about the fact that we do have spillover income from prior periods that provide one lever that we can pull in terms of continuing to maintain that dividend for the near term. But again, your points around what do we do going forward? Do we consider additional share buybacks, et cetera, are things that we absolutely talk about. I think when we think about that program, obviously, we did put in place the roughly $100 million program at the time of our IPO. We've since exhausted that.

但展望未來，在當前的基準利率和利差環境下，我們仍然對能夠賺取正負 0.45 美元的利潤感到樂觀，這也是我們未來將繼續評估的情況。正如我上個季度所評論的那樣，我們確實討論過這樣一個事實：我們確實有來自前期的溢出收入，這為我們在短期內繼續維持股息提供了一個槓桿。但是，您剛才提到的關於我們接下來該怎麼做的觀點呢？我們會考慮是否進行額外的股票回購等等，這些都是我們絕對會討論的事情。我認為，當我們回顧那個項目時，很顯然，我們在首次公開募股時確實啟動了大約 1 億美元的項目。我們已經用盡了所有辦法。

And really, our focus going forward is on growing the BDC, not continuing to reduce the amount of equity outstanding and reduce the share count. So again, these are all the things that we're thinking about, and we'll continue to eat them going forward. But as Ken said, we feel very good about the quality in the BDC, its ability to continue to generate earnings going forward, and that's really our focus. Yes. And certainly, I'd be remiss if I didn't say we're certainly looking at the share price relative to NAV, we certainly feel that the shares are undervalued.

實際上，我們未來的重點是發展 BDC，而不是繼續減少已發行股本和減少股份數量。所以，這些都是我們正在考慮的事情，我們以後也會繼續關注它們。但正如肯所說，我們對 BDC 的品質、其未來持續盈利的能力感到非常滿意，這才是我們真正的關注點。是的。當然，如果我不說我們確實在關注股價相對於淨資產值的情況，那就太失職了，我們確實認為這些股票被低估了。

We think there's a tremendous amount of value creation that continues to go on within the portfolio, the quality, the fundamentals, et cetera, we don't think are reflected in the share price.

我們認為該投資組合中持續存在著巨大的價值創造，其品質、基本面等等，我們認為都沒有反映在股價上。

Finian O'Shea, Wells Fargo Securities.

Finian O'Shea，富國證券。

Hey, everyone, good morning. question on the portfolio outlook. I think early in the remarks, you mentioned lighter allocation based on the being fully levered, seeing if that also implies a subdued repayment outlook?

大家好，早安。請問關於投資組合前景的問題。我認為您在演講初期提到，由於槓桿率很高，因此需要進行較少的資產配置，這是否也意味著償付前景較為疲軟？

Yes. Fin, it's Shai. Yes, so when we think about the repayments, I mean, what we saw in this most recent quarter, they were running at 3% relative to our long-range assumption of 5%. So again, I think that's really a function of essentially mix and really timing because as Ken alluded to, and we're seeing it every day just in terms of the level of deal activity across the platform, M&A has certainly picked up and sponsors are feeling good about transacting in the current environment. So our expectation is that, that repayment rate would continue close to our long-range assumption but the fact that it was at 3% this quarter, it was closer to 5% the prior quarter.

是的。芬恩，我是莎伊。是的，所以當我們考慮還款時，我的意思是，我們在最近一個季度看到，還款率相對於我們 5% 的長期假設為 3%。所以，我認為這實際上主要取決於組合和時機，因為正如 Ken 所暗示的那樣，而且我們每天都能從平台上的交易活動水平中看到這一點，併購活動肯定已經增加，發起人對在當前環境下進行交易感到滿意。因此，我們預計還款率將繼續接近我們的長期假設，但事實上本季為 3%，而上一季接近 5%。

So again, just the fact that we are in an environment where deal activity is picking up. We're not changing our view on repayments going forward. What we will do though is, again, be sort of dynamic about how we're investing out of the BDC. So to the extent that we get incremental repayments and we get those proceeds in, we'll look to redeploy them as quickly as possible into attractive investment opportunities, and that's what we've done and what we do. And that's one of the benefits, obviously, of being part of the broader platform.

所以，再說一遍，我們目前所處的環境正是交易活動日益活躍的時期。我們不會改變未來還款的看法。不過，我們接下來要做的是，在如何透過 BDC 進行投資方面，保持一定的彈性。因此，只要我們能收到分期償還的款項，並且能收到這些收益，我們就會盡快將這些資金重新投入到有吸引力的投資機會中，而這正是我們過去所做的，也是我們現在正在做的。顯然，這是成為更廣泛平台的一部分的好處之一。

We have access to that deal flow. And as we have capital available, we're going to deploy it into attractive transactions.

我們能夠接觸到這些交易機會。既然我們有可用資金，我們將把這些資金投入到有吸引力的交易中。

Yes. And I would just say, look, from our perspective, keeping the portfolio fully deployed is not a challenge at all for us right now relative to the deal flow platform-wide, we've obviously trying to maintain investment activity in every deal, so that we've got a position in every deal as we're making investments so that we can do the follow-on and make ourselves avail ourselves to the add-ons and other opportunities in those companies. So we want to be in them at the time of sourcing. But on an overall basis, I don't see any challenge whatsoever maintaining full investment at NCDL. And to the extent we have repayments increase for various reasons, there's been no challenge for us in terms of keeping it fully invested.

是的。我想說的是，從我們的角度來看，就整個平台的交易流而言，保持投資組合的充分部署對我們來說目前根本不是挑戰。我們顯然一直在努力維持對每筆交易的投資活動，以便在進行投資時，我們能夠參與到每筆交易中，從而進行後續投資，並抓住這些公司的附加投資和其他機會。所以我們希望在採購時就參與其中。但總體而言，我認為維持對 NCDL 的全部投資沒有任何挑戰。即使由於各種原因導致還款額增加，我們在保持資金全部投資方面也沒有遇到任何挑戰。

That's helpful. And just a follow-on -- piggybacking the dialogue with Brian on the stock price. Curious as to what you're hearing on -- just hit on, you have a pretty big and successful nontraded BDC. So you're very present in that market. How much of a thing is it I know it's very recent, of course, but with a lot of public BDCs trading where they are, do you feel a lot of retail shareholders in the wealth channel.

那很有幫助。最後再補充一點──藉著和布萊恩關於股價的對話。很好奇你聽到了什麼消息——順便說一句，你擁有一家規模相當大且非常成功的非上市商業發展公司。所以你在這個市場上的影響力非常大。我知道這件事發生的時間很短，當然，但是鑑於許多上市的商業發展公司（BDC）目前的交易價格，您是否覺得財富管理管道有很多散戶股東？

Is it either a discussion? Or is it perhaps should I buy the public on or any color you could give us on that?

這算是一種討論嗎？或者，我應該向公眾透露一些信息，或者您能否就此給我們一些建議？

Yes. We've certainly gotten that question a number of times because they're obviously looking at the tremendous discount in the public. So it's a good question, Fin. While it's come up, it hasn't been a major theme. But certainly, at an individual level, you look at the fact that the private BDC obviously issue shares at NAV and the public BDC is trading at a significant discount.

是的。我們確實多次被問到這個問題，因為他們顯然都在關注公眾所看到的巨額折扣。所以，芬恩，你問得好。雖然這個問題被提及過，但它並不是一個主要話題。但就個人而言，可以肯定的是，私人 BDC 顯然以淨資產值發行股票，而公開 BDC 的交易價格則有顯著折扣。

I think it just highlights the value proposition and the return dynamics and the opportunity in the public BDC, the fact that you can buy the public BDC, the publicly traded BDC at a 15% or 20% discount to NAV, I think just highlights what a great opportunity it is right now.

我認為這只是凸顯了公開交易的商業發展公司 (BDC) 的價值主張、回報動態和機會，你可以以淨資產值 (NAV) 15% 或 20% 的折扣購買公開交易的 BDC，我認為這恰恰凸顯了現在這是一個多麼好的機會。

And -- but we've gotten that question a handful of times. It hasn't been a huge amount of focus, but we've definitely been asked the question. And we try to be very straightforward on it, and that is that it is tremendous value at the current trading level. No question about it.

我們已經被問過好幾次這個問題了。雖然這個問題並沒有引起太多關注，但我們確實被問過這個問題。我們盡量直截了當地說明，那就是以目前的交易價格來看，它具有巨大的價值。毫無疑問。

Doug Harter, UBS.

道格·哈特，瑞銀集團。

This is Cory Johnson on for Doug. I know you spoke about the repayments. And long term, I guess you don't expect there to be much of a difference from your long-term assumptions. But over the next quarter or two, would you expect perhaps more elevated repayments and is perhaps the current government shutdown delaying some of the repayments that you might have been seeing in the last quarter or this coming quarter?

這裡是科里·約翰遜，替道格報道。我知道你們談過還款的事。從長遠來看，我想你不會期望與你的長期假設有太大的不同。但在接下來的一個或兩個季度裡，您是否預計還款額會更高？目前的政府停擺是否會延遲您在上個季度或即將到來的季度中可能看到的一些還款？

No, in fact, I would say there's an interesting dynamic. If if we were, which were not heavily invested in kind of broadly syndicated loans, that market is primarily a refinancing market. So as rates come down, you might see more pressure in either BDCs or funds that are really oriented toward that market. In our world, since we are much more heavily oriented towards traditional middle market, the primary driver of activity is new deals, right? So we get a refi when a company in our portfolio is refinanced because it's sold as opposed to going out and proactively refinancing itself.

不，實際上，我認為這裡存在著有趣的動態。如果我們沒有大量投資於廣泛的銀團貸款，那麼這個市場主要就是一個再融資市場。因此，隨著利率下降，您可能會看到商業發展公司或真正面向該市場的基金面臨更大的壓力。在我們這個世界裡，由於我們更加專注於傳統的中端市場，所以主要的驅動力是達成新的交易，對吧？所以，當我們投資組合中的公司因為被出售而進行再融資時，我們就會獲得再融資，而不是主動進行再融資。

So I would say in that regard, a solid level of new deal activity, we've already been seeing that consistently over the course of the year. So I would not expect to see any material change in kind of the trends we've been seeing around our repayments, again, primarily driven by new deal activity as opposed to suddenly seeing an acceleration as a result of being driven by reductions in underlying base rates. That's really not as big a factor for us. maybe as some other funds that are more focused on the BSL world.

所以在這方面，我認為，我們已經在今年持續看到穩定的新交易活動水準。因此，我預計我們目前看到的還款趨勢不會發生任何實質變化，這主要是由新的交易活動推動的，而不是由於基準利率下降而突然加速的。對我們來說，這真的不是什麼大問題。或許對一些更專注於BSL領域的其他基金來說，這才是最重要的因素。

Got it. And then just the last question. Are you seeing like any additional competition from perhaps tools coming down in market and playing a bit more in the core middle market or just any changes in the competition landscape recently?

知道了。最後還有一個問題。您是否注意到近期市場上出現了一些新的工具，在中端核心市場佔據了更大的份額，從而增加了競爭？或者說，競爭格局最近發生了哪些變化？

We really haven't. It's interesting. I get that question a lot. Institutional investors ask that we get this from new folks as well. The reality is that we're not seeing the private credit firms that are focusing historically more on BSL or those large $1 billion-plus transactions come down market nor are we seeing the new entrants really being able to step up and underwrite $400 million, $500 million, $600 million, $700 million, $800 million transactions, which we obviously can do.

我們真的沒有。很有意思。我常被問到這個問題。機構投資者要求我們也從新人那裡獲得這種資訊。現實情況是，我們既沒有看到那些歷來更專注於 BSL 或 10 億美元以上大額交易的私人信貸公司進入下行市場，也沒有看到新進入者真正能夠挺身而出，承銷 4 億美元、5 億美元、6 億美元、7 億美元、8 億美元的交易，而我們顯然有能力做到這一點。

So I think in that sense, we're relatively insulated from pressure from the top or even pressure from the bottom, right? The new entrants are primarily playing in that lower middle market where they can deliver a $50 million, $75 million solution.

所以我覺得從這個意義上講，我們相對來說不會受到來自上層甚至下層的壓力，對吧？新進業者主要在中低端市場競爭，他們可以提供價值 5000 萬美元到 7500 萬美元的解決方案。

And at the larger end, those folks to continue to focus on larger buyouts, refinancing activity, and playing as an alternative to an underwritten and syndicated DSL transaction. So we're operating, we think, in a relatively insulated part of the market where frankly relationships are driving that deal flow. And partnering with a lender like us or one of our peers is a very important decision for driving the underlying growth in the space.

而對於規模較大的投資者來說，他們將繼續專注於規模較大的收購、再融資活動，並作為承銷和銀團DSL交易的替代方案。所以我們認為，我們是在市場中一個相對封閉的領域運營，坦白說，人際關係才是推動交易的關鍵因素。與像我們這樣的貸款機構或我們的同行合作，對於推動該領域的基礎成長來說，是一個非常重要的決定。

So market timers or firms that are coming down for a period of time and then maybe bouncing back up into their core market, not as appealing to the private equity firms that are looking for long-term partners to finance those businesses be available to finance add-ons and really act as a financing partner for a more extended period of time. And I think that's where we really benefit. We've been in the core middle market now for 20 years. If you look at our top sponsor relationships, we've done dozens and dozens of deals with those firms. And as a result, they come back.

因此，那些擇時交易或股價下跌一段時間後可能反彈回核心市場的公司，對尋求長期合作夥伴為這些企業提供融資、為附加業務提供融資並真正作為更長期融資夥伴的私募股權公司來說，吸引力並不大。我認為這才是我們真正受益的地方。我們已在中端核心市場深耕20年。如果你看看我們與頂級贊助商的關係，你會發現我們已經與這些公司達成了數十項交易。因此，他們會回來。

They come back based on the relationship about based upon the history and it's much less likely that they're going to tap a firm that's really more of a large cap player, recognizing that those firms tend to come and go in the core middle market.

他們會根據過往關係再次合作，而且他們不太可能去接觸那些規模較大的公司，因為他們意識到這些公司在中端核心市場往往來來去去。

Arren Cyganovich, Truist Securities.

阿倫·西加諾維奇，Truist Securities。

Just touching on the health of the portfolio overall. Your nonaccruals ticked up, it's pretty modest. I think your costs are still below 1%. So it's obviously not a big challenge. Maybe you could just talk a little bit about the portfolio companies and how they're performing from maybe a revenue and EBITDA growth standpoint and how those trends are moving throughout the year.

簡單談談投資組合的整體健康狀況。您的非應計項目略有增加，但增幅不大。我認為你的成本仍然低於1%。所以這顯然不是什麼大挑戰。或許您可以稍微談談投資組合公司的情況，以及它們在收入和 EBITDA 成長方面的表現，以及這些趨勢在一年中的發展。

The story there has actually been very solid. Now remember, our overall criteria when we underwrite and invest is we are looking for market leaders we are looking for businesses that are in noncyclical industries. So we're typically not looking at restaurants and retail and oil and gas and chemicals and anything that has an underlying cyclical dynamic to it. We're also not investing in businesses that fundamentally don't have those underlying solid growth characteristics. So given that, given the world that we play in business services, health care services, software we've continued to see solid single-digit growth in both revenues and cash flow for our portfolio.

那裡的故事其實非常紮實。請記住，我們在承銷和投資時的整體標準是，我們尋找的是市場領導者，我們尋找的是非週期性產業的企業。所以我們通常不會關注餐飲、零售、石油天然氣、化學以及任何具有潛在週期性動態的行業。我們也不會投資那些本質上不具備穩健成長特徵的企業。鑑於我們所處的商業服務、醫療保健服務和軟體領域，我們的投資組合的收入和現金流都持續保持著穩健的個位數成長。

That's probably down a bit from where it was a couple of years ago. We were seeing numbers in the kind of 20% range. But still very respectable and very consistent. So we feel good about the underlying growth in the portfolio. And again, I think it's reflective of not just organic growth and the fundamentals of the businesses we finance, but also the fact that when we do a deal, the vast majority of those transactions the private equity firm that's acquiring the business has already come to the table with a plan to grow it either through geographic expansion, product expansion, smaller strategic M&A the large percentage of our portfolio, those are the types of businesses we're financing.

這大概比幾年前有所下降。我們看到的數字大約在 20% 左右。但依然非常值得尊敬，而且表現始終如一。因此，我們對投資組合的潛在成長感到滿意。而且，我認為這不僅反映了我們所投資企業的有機增長和基本面，還反映了這樣一個事實：當我們進行交易時，絕大多數情況下，收購企業的私募股權公司都已經制定了增長計劃，無論是通過地域擴張、產品擴張，還是通過較小的戰略併購——我們投資組合中的很大一部分，都是我們正在投資的企業類型。

And that's also reflected in the fact that in many cases, we're doing a delayed draw term loan to actually put in place a facility to finance that growth. So I think the nature of the space we play in and the types of companies that we finance is going to give you an ongoing kind of built-in growth rate in that kind of call it, 5% to 10% range. And then where you're getting even stronger growth economically overall you see numbers that are closer to 20%. But certainly, we feel very good right now that kind of core growth rate in that 5% to 10% range.

這一點也體現在，在許多情況下，我們正在進行延期提取的定期貸款，以便建立一個融資機制來支持這種成長。所以我認為，我們所處的領域以及我們所投資的公司的類型，將為你帶來持續的、內建的成長率，大概在 5% 到 10% 的範圍內。而在整體經濟成長較強勁的地區，你會看到接近 20% 的數字。但目前我們對5%到10%的核心成長率感到非常滿意。

Yes, I appreciate that. And I wouldn't expect that you'd have hot line make hotline growth rates? Just want to make sure that they're not deteriorating any notably. It sounds like everything is good there.

是的，我很感激。我並不認為熱線會提高熱線的成長率吧？只是想確認一下它們是否有明顯的損壞。聽起來那裡一切都很好。

No, I was just going to say maybe going I was just going to say that I think as I mentioned earlier, a lot of it gets to the types of businesses we are financing. We're typically not great fans of financing kind of static companies, if you will, where the credit metrics might look okay, but the fundamentals are it's not really a great business. It's okay. The numbers are all right. The coverage numbers look okay, but you're not seeing any real fundamental growth.

不，我只是想說，正如我之前提到的，很多時候都取決於我們投資的企業類型。我們通常不太喜歡為那種停滯不前的公司提供融資，如果可以這麼說的話，這類公司的信用指標可能看起來不錯，但從根本上來說，它並不是一個真正優秀的企業。沒關係。數字都沒問題。覆蓋率看起來還可以，但並沒有看到任何真正的基本面增長。

That's not typically the types of businesses that we would be all that excited about financing. So yes, all the credit metrics have to be there, but we want to be financing businesses that have solid underlying growth fundamentals. And I think that's reflected in our portfolio. .

通常情況下，我們不會很樂意為這類企業提供融資。所以，是的，所有信貸指標都必須到位，但我們希望為那些具有穩健成長基本面的企業提供融資。我認為這體現在我們的投資組合中。。

Yes. And maybe touching on the origination side. You mentioned deal pipelines pretty strong heading into the quarter. what's the mix of that? And maybe you could talk a little bit about the quality of what you're seeing come to you from the various sponsors.

是的。或許還可以談談起源方面。您提到本季交易管道非常強勁。具體構成是怎樣的？或許您可以談談您從各個贊助商看到的產品和服務的品質。

So I think that -- well, it's interesting. If you look at our deal activity, for example, July, August, even through September, we were actually setting records across the platform for deal activity, right? I don't think anyone would expect August to be a record month. Typically, that's a slower period of time, end of summer. But we were extraordinarily active.

所以我覺得——嗯，這很有意思。例如，如果您查看我們的交易活動，7 月、8 月，甚至 9 月，我們實際上在整個平台上都創下了交易活動的記錄，對吧？我想沒人會預料到八月會成為創紀錄的一個月。通常來說，這是一段比較清閒的時期，也就是夏末。但我們異常活躍。

In our case, we would see -- there were weeks where we were seeing three, four, five, six investment committee memos a week right? So we were actually scheduling additional meetings of the IC in order to keep up with the level of activity.

就我們而言，我們會看到——有些時候，我們一周會看到三、四、五、六份投資委員會備忘錄，對吧？因此，為了跟上工作進度，我們實際上安排了額外的 IC 會議。

So I think that's been surprising. We certainly expected that deal activity would begin to come back as you saw rates stabilize and begin to come down, and we certainly did see that. Liberation Day was a bit of a pause in those dynamics. But starting really in June and July and going on through the summer and early fall, the quality has been quite good. overall spreads have stabilized in that kind of 450 to 500 range.

所以我覺得很出乎意料。我們當然預期，隨著利率趨於穩定並開始下降，交易活動會開始恢復，而我們也確實看到了這一點。解放日讓這種動態局面暫時停頓了一下。但從六、七月份開始，一直到夏季和初秋，品質都相當不錯。整體價差穩定在450到500左右。

underlying fundamentals quite good given the pressure on private equity to drive some realizations, we've seen a fair amount of GP-led transactions. And we have our own views as to what GP-led transactions we like and don't like. I think we like to see if there is a GP-led deal, we like to see the private equity firm roll there, carry in continue to be significantly supportive of the credit and the transaction. So we do look at those.

鑑於私募股權面臨推動部分資產變現的壓力，基本面相當不錯，我們已經看到相當多的由普通合夥人主導的交易。我們對由普通合夥人主導的交易有自己的看法，也對我們不喜歡的交易有自己的看法。我認為我們很高興見到由普通合夥人主導的交易，我們很高興見私募股權公司繼續參與，繼續為信貸和交易提供重大支持。所以我們會關注這些。

But overall, the deal environment right now is quite good. We feel quite good about the quality. We feel quite good about the relative value. We're still getting in that 9% range for new transactions. So risk-adjusted returns, we think, very attractive relative to where they've been historically, and we still feel very good about the deal environment I didn't -- we haven't talked about it on your questions, but I mentioned it in the part of my prepared remarks, the reality is if you look at those situations like Tricolor, First Brands or even the more recent announcement on the, HPS transaction, the reality is that we see those as very idiosyncratic. Certainly in a number of those cases, there's elements of fraud.

但整體而言，目前的交易環境相當不錯。我們對產品品質非常滿意。我們對它的相對價值感到非常滿意。我們的新交易率仍保持在 9% 左右。因此，我們認為，風險調整後的收益相對於歷史水準而言非常有吸引力，而且我們仍然對交易環境感到非常樂觀。我沒有——我們沒有在你的問題中談到這一點，但我在我準備好的演講稿中提到了這一點，事實上，如果你看看像 Tricolor、First Brands 甚至最近宣布的 HPS 交易這樣的情況，事實上，我們認為這些都是非常特殊的案例。當然，在許多這類案件中，都存在著詐欺因素。

I'd also say -- and I was talking to an investor about this earlier in the week. If you look at the nature of those deals, they were essentially bulk purchases of assets in a portfolio. So that's a very different business than asset base but also just buying blocks of receivables or financing large blocks of receivables very, very different business than ours where we are financing one deal at a time, right, doing our diligence, doing our homework, fundamentally assessing the business the underlying structure, the underlying fundamentals.

我還要補充一點——我本週早些時候也和一位投資者談過這個問題。如果你仔細觀察這些交易的性質，你會發現它們本質上是對投資組合中資產的大量購買。所以這與資產基礎業務截然不同，而且購買應收帳款或為大量應收帳款融資也與我們的業務截然不同，我們一次只為一筆交易提供融資，對吧？我們會進行盡職調查，做好功課，從根本上評估業務、基礎結構和基本面。

So we're going to stay focused on traditional core middle market directly originated transactions in that $50 million to $100 million EBITDA range where we think the risk-adjusted returns are attractive. Structures have maintained a reasonable underlying dynamic, and that's where we're going to be. So we're not going to venture into some of these other more so areas of lending that have created some of the problems. And moreover, there's certainly no evidence in our portfolio today that those very isolated situations really have anything to do with the types of lending that we're doing today.

因此，我們將繼續專注於傳統核心中端市場直接發起的交易，EBITDA 在 5,000 萬美元到 1 億美元之間，我們認為在這個範圍內，風險調整後的回報很有吸引力。各種結構一直保持著合理的基本動態，而我們也將繼續保持這種動態。因此，我們不會涉足其他一些造成問題的貸款領域。而且，我們目前的投資組合中絕對沒有任何證據表明，這些非常孤立的情況與我們今天所進行的貸款類型有任何關係。

With no further questions at this time, I would like to turn the call back over to Ken for closing comments.

目前沒有其他問題，我想把電話交還給肯，請他做總結發言。

Great. Well, thank you all again for joining us. I appreciate your interest in the business. Obviously, we're very proud of our performance this quarter. We continue to stay focused on delivering excellent risk-adjusted returns for our investors.

偉大的。再次感謝各位的參與。感謝您對我們業務的關注。顯然，我們對本季的業績非常滿意。我們將繼續專注於為投資者帶來優異的風險調整後收益。

And that concludes the call, and appreciate you joining us today.

通話到此結束，感謝您今天參與我們的通話。

Thank you. This does conclude today's conference. You may disconnect at this time, and thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開連接了，感謝您的參與。