Sixth Street Specialty Lending Inc (TSLX) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Sixth Street Specialty Lending, Inc. Q1 2024 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Cami VanHorn, Head of Investor Relations. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 Sixth Street Specialty Lending, Inc. 2024 年第一季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給您的發言人、投資者關係主管 Cami VanHorn。請繼續。

Thank you. Before we begin today's call, I would like to remind our listeners that remarks made during the call may contain forward-looking statements. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Sixth Street Specialty Lending, Inc. filings with the Securities and Exchange Commission.

謝謝。在我們開始今天的電話會議之前，我想提醒我們的聽眾，電話會議期間的言論可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的其他陳述可能構成前瞻性陳述，不能保證未來業績或結果，並涉及許多風險和不確定性。由於多種因素的影響，實際結果可能與前瞻性陳述中的結果有重大差異，包括第六街專業貸款公司向美國證券交易委員會提交的文件中不時描述的因素。

The company assumes no obligation to update any such forward-looking statements. Yesterday, after the market closed, we issued our earnings press release for the first quarter ended March 31, 2024, and posted a presentation to the Investor Resources section of our website, www.sixthstreetspecialtylending.com. The presentation should be reviewed in conjunction with our Form 10-Q filed yesterday with the SEC. Sixth Street Specialty Lending, Inc.'s earnings release is also available on our website under the Investor Resources section. Unless noted otherwise, all performance figures mentioned in today's prepared remarks are as of and for the first quarter ended March 31, 2024.

該公司不承擔更新任何此類前瞻性陳述的義務。昨天，市場收盤後，我們發布了截至 2024 年 3 月 31 日的第一季財報新聞稿，並在我們網站 www.sixthstreetspecialtylending.com 的投資者資源部分發布了簡報。該演示文稿應與我們昨天向 SEC 提交的 10-Q 表格一起進行審查。 Sixth Street Specialty Lending, Inc. 的收益報告也可在我們網站的投資者資源部分找到。除非另有說明，今天準備好的評論中提到的所有業績數據均截至 2024 年 3 月 31 日的第一季。

As a reminder, this call is being recorded for replay purposes. I will now turn the call over to Joshua Easterly, Chief Executive Officer of Sixth Street Specialty Lending, Inc.

謹此提醒，本次通話將會被錄音以供重播。我現在將把電話轉給第六街專業貸款公司執行長約書亞‧伊斯特利 (Joshua Easterly)。

Good morning, everyone, and thank you for joining us. With us today are our President, Bo Stanley; and our CFO, Ian Simmonds. For our call today, I will review our first quarter highlights and pass it over to Bo to discuss activity in the portfolio. Ian will review our financial performance in more detail, and I will conclude with final remarks before opening the call to Q&A.

大家早安，感謝您加入我們。今天與我們在一起的有我們的總裁博·斯坦利 (Bo Stanley)；和我們的財務長伊恩·西蒙茲。在今天的電話會議中，我將回顧我們第一季的亮點，並將其轉交給 Bo 討論投資組合中的活動。伊恩將更詳細地審查我們的財務業績，我將在開始問答電話之前發表最後的評論。

After market closed yesterday, we reported first quarter adjusted net investment income of $0.58 per share or an annualized return on equity of 13.6% and adjusted net income of $0.52 per share or an annualized return on equity of 12.3%. As presented in our financial statements, our Q1 net investment income and net income per share, inclusive of the unwind of the noncash accrued capital gains incentive fee expense or $0.01 per share higher. The difference between this quarter's net investment income and net income was driven by $0.09 per share of net unrealized gains from the impact of tighter credit spreads on the valuation of our investments, $0.14 per share on net unrealized losses from portfolio company-specific events and $0.03 per share of unrealized losses from the reversal of prior period unrealized gains related to investment realizations and $0.03 per share of realized gains from investment sales.

昨天收盤後，我們報告第一季調整後淨投資收益為每股 0.58 美元，年化股本回報率為 13.6%，調整後淨收益為每股 0.52 美元，年化股本回報率為 12.3%。正如我們的財務報表所示，我們第一季的淨投資收入和每股淨收入，包括非現金應計資本利得激勵費用支出或每股更高 0.01 美元的解除。本季淨投資收入與淨利潤之間的差異是由於信用利差收緊對我們投資估值的影響而產生的每股0.09 美元的未實現淨收益、投資組合公司特定事件導致的未實現淨損失每股0.14 美元以及0.03 美元造成的。

With these results in mind, I'd like to start by circling back to two remarks I made on previous earnings calls in February. First, the BDC sector is at peak earnings. And second, the tail within portfolios is getting longer. On the first comment, we reported another strong quarter from an earnings perspective as net investment income continued to benefit from higher interest rates. Q1 was the first time in 8 quarters or since the start of the rate hiking cycle that we experienced a modest decline in the weighted average reference rate resets on debt and income-producing securities of 5 basis points.

考慮到這些結果，我想先回顧一下我在 2 月之前的財報電話會議上發表的兩句話。首先，BDC 產業正處於獲利高峰。其次，投資組合的尾部越來越長。在第一個評論中，我們從獲利角度報告了另一個強勁的季度，因為淨投資收入繼續受益於較高的利率。第一季是 8 個季度以來或自升息週期開始以來首次出現債務和創收證券加權平均參考利率重置小幅下降 5 個基點。

That said, the strength of the reset economic data and the higher for longer shape of the forward interest rate curve continues to support net investment income. Since our last earnings call, the forward curve has shifted towards higher for longer with year-end base rates estimated to be 4.9%, which is up from 4.2% as of our last earnings call in February. We anticipate the current environment will likely drive a dispersion between operating and GAAP earnings as higher base interest rates may ultimately lead to credit deterioration and potential for losses, as we previously talked about.

也就是說，重置經濟數據的強度以及遠期利率曲線較長形狀的走高繼續支撐淨投資收益。自從我們上次財報電話會議以來，遠期曲線已轉向更高的時間，年終基本利率估計為 4.9%，高於我們 2 月上次財報電話會議時的 4.2%。我們預計，當前的環境可能會導致營運收益和公認會計準則收益之間的差異，因為較高的基本利率可能最終導致信用惡化和潛在的損失，正如我們之前討論的那樣。

My second comment, we're adding a nuance of the view that this quarter, which is that the tail is growing on the margin. While we are seeing evidence of idiosyncratic credit issues arising from across the private credit sector. We remain optimistic about the ability for private credit portfolio to withstand the headwinds of today's macroeconomic environment for a couple of reasons. First and foremost, private credit managers underwrite investments with intent of holding net risk until maturity, given the largely illiquid nature of the asset class. For us, this means extremely thorough due diligence and bottoms-up analysis on every credit we undertake, coupled with active portfolio management to the life of the investment.

我的第二條評論是，我們添加了本季觀點的細微差別，即尾部在邊際上成長。儘管我們看到整個私人信貸部門出現特殊信貸問題的證據。我們對私人信貸投資組合抵禦當今宏觀經濟環境不利因素的能力保持樂觀，原因有幾個。首先也是最重要的是，考慮到資產類別基本上缺乏流動性，私人信貸管理者承保投資的目的是在到期前持有淨風險。對我們來說，這意味著對我們承擔的每筆信貸進行極其徹底的盡職調查和自下而上的分析，再加上對投資生命週期的積極投資組合管理。

And second, private credit managers have the ability to be selective in terms of sector exposure. We have demonstrated selectivity in our portfolio by avoiding cyclical businesses, staying away from certain industries and leaning into specific sector themes. This optionality differs from the public debt market, which are forced to hold a much broader range of sector exposures, including those that we have deliberately avoided. And it's important to note that both of these benefits to private credit are not given and ultimately rely upon active management.

其次，私人信貸管理者有能力對產業風險進行選擇性投資。我們透過避開週期性業務、遠離某些行業並傾向於特定行業主題，展示了投資組合的選擇性。這種選擇性與公共債務市場不同，公共債務市場被迫持有更廣泛的部門風險敞口，包括我們刻意避免的部門風險敞口。值得注意的是，私人信貸的這兩個好處都不是給予的，並且最終依賴主動管理。

Having the ability to determine when to invest as well to what to invest is a feature of our business model and a core principle of operating our business with the capital allocation discipline. Turning to our portfolio specifically. The difference between this quarter's net investment income and net income highlights our point on the growing tail. Individual portfolio company specific events resulted in a $0.14 per share net unutilized losses in Q1.

能夠決定何時投資以及投資什麼是我們商業模式的一個特點，也是按照資本配置原則運作我們業務的核心原則。具體談談我們的投資組合。本季淨投資收益與淨利潤之間的差異凸顯了我們對成長尾部的觀點。個別投資組合公司的特定事件導致第一季每股未利用淨虧損 0.14 美元。

A significant portion of this were $0.11 per share was related to the markdown in our investment in Astra Acquisition Corp. At quarter end, we had this investment on nonaccrual status, driven by continued underperformance of the company. While this is evidence that the tail is growing on the margin, we remain focused on the bigger picture, which is our ability to grow net asset value over the long term. Despite idiosyncratic issues as existed in our portfolio, we have consistently grown net asset value over the 12.5 years since we started this business representing -- represented by a 3.5% annualized NAV growth before special and supplemental dividends since inception.

其中很大一部分是每股 0.11 美元，與我們對 Astra Acquisition Corp 的投資減價有關。雖然這證明尾部正在邊際增長，但我們仍然關注更大的前景，即我們長期增長淨資產價值的能力。儘管我們的投資組合中存在一些特殊問題，但自我們開展這項業務以來的12.5 年裡，我們的淨資產價值一直在持續增長，自成立以來，不計特別股息和補充股息的年化資產淨值增長率為3.5%。

We feel confident in our ability to continue this growth in the future, which we believe will result in outperformance relative to the sector. Turning now to the broader portfolio. Credit quality remains strong with nonaccrual limited to 1.1% of the portfolio by fair value. Revenue and EBITDA growth continued for another consecutive quarter. several of our portfolio companies have started to see cost saving initiatives flow through the P&L, resulting in margin expansion and positive EBITDA trends.

我們對未來繼續這種成長的能力充滿信心，我們相信這將帶來相對於該行業的優異表現。現在轉向更廣泛的投資組合。信貸品質依然強勁，以公允價值計算，非應計費用僅限於投資組合的 1.1%。營收和 EBITDA 連續一個季度持續成長。我們的幾家投資組合公司已開始看到成本節約措施貫穿損益表中，從而實現利潤率擴張和積極的 EBITDA 趨勢。

All things considered, our underlying portfolio companies have shown resilience, which we believe will be reflective of our disciplined credit selection and effective portfolio management. Yesterday, our Board approved a base quarterly dividend of $0.46 per share to record -- to shareholders of record as of June 14, payable on June 28.

考慮到所有因素，我們的基礎投資組合公司表現出了韌性，我們相信這將反映我們嚴格的信貸選擇和有效的投資組合管理。昨天，我們的董事會批准向截至 6 月 14 日登記在冊的股東派發每股 0.46 美元的基本季度股息，並於 6 月 28 日支付。

Our Board also declared a supplemental dividend of $0.06 per share related to our Q1 earnings to shareholders of record as of May 31, payable on June 20. Our net asset value per share pro forma for the impact of the supplemental dividend that was declared yesterday at 17.11, and we estimate that our spillover income per share is approximately $1.06.

我們的董事會也宣布向截至5 月31 日記錄在案的股東派發每股0.06 美元的補充股息，該股息與我們第一季的獲利相關，將於6 月20 日支付。價值預計於昨天宣布的補充股息的影響為17.11，我們估計每股溢出收入約為 1.06 美元。

Before passing it to Bo, I would like to note that on March 26, Fitch Ratings Agency published their annual review for the BDC sector, and we are pleased to note that Sixth Street Specialty Lending's rating of BBB flat was revised with -- from a stable to a positive outlook. Of the 22 firms in their rated universe, TSLX is one of 2 BDCs to holder rating with a positive outlook from Fitch.

在將其傳遞給 Bo 之前，我想指出，3 月 26 日，惠譽評級機構發布了對 BDC 行業的年度審查，我們很高興地註意到，第六街專業貸款公司的 BBB 評級已從展望穩定至積極。在其評級範圍內的 22 家公司中，TSLX 是惠譽評級為持有者評級且前景樂觀的 2 家 BDC 之一。

With that, I'll now pass it over to Bo to discuss this quarter's investment activity.

現在，我將把它交給 Bo 來討論本季的投資活動。

Thanks, Josh. I'd like to start by sharing some observations on the broader market backdrop. In particular, the purpose and importance of direct lending in today's investing landscape. Through the first quarter of 2024, public and private debt markets welcomed an increase in demand for financing solutions after a historically low level of transaction volume in 2023.

謝謝，喬許。首先我想分享一些對更廣泛市場背景的觀察。特別是當今投資環境中直接貸款的目的和重要性。繼 2023 年交易量處於歷史低點之後，到 2024 年第一季度，公共和私人債務市場對融資解決方案的需求出現增長。

Access to the broadly syndicated market has improved, providing some borrowers with an option between public and private financing solutions. With both markets open for business, competition has generally increased compared to this time last year. However, we remain highly selective and where we transact to make certain we over earn our cost of capital.

進入廣泛的銀團市場的機會有所改善，為一些借款人提供了公共和私人融資解決方案之間的選擇。隨著兩個市場的開放，競爭與去年同期相比普遍加劇。然而，我們仍然高度選擇性地進行交易，以確保我們超額賺取資本成本。

Our omnichannel sourcing capabilities has contributed to a robust and building pipeline of opportunities that rely upon the structures and features available only in the private credit markets. We believe the current environment underscores the value proposition of private credit for borrowers looking for more than the cheapest cost of financing.

我們的全通路採購能力有助於建立強大的、正在建立的機會管道，這些機會依賴私人信貸市場獨有的結構和功能。我們認為，目前的環境凸顯了私人信貸對於尋求最便宜融資成本以外的借款人的價值主張。

Direct lending provides creative solutions, certainty in pricing, stability through market volatility and structural flexibility such as delayed draw features. All of these components differentiates the private credit markets from the BSL market and reinforce the importance of solutions we provide to the middle market companies.

直接貸款提供了創造性的解決方案、定價的確定性、市場波動帶來的穩定性以及延遲提款功能等結構靈活性。所有這些組成部分將私人信貸市場與 BSL 市場區分開來，並強化了我們為中間市場公司提供的解決方案的重要性。

Our investments in Equinox during the quarter highlights our differentiated capabilities as we stepped in to provide an alternative solution to accompany with a complicated capital structure. As part of the transaction, Sixth Street led an agency had a $1.2 billion first lien term loan and to a lesser degree, participated in a $575 million second lien term loan.

我們本季對 Equinox 的投資凸顯了我們的差異化能力，因為我們介入提供了替代方案來應對複雜的資本結構。作為交易的一部分，由第六街領導的機構獲得了 12 億美元的第一留置權定期貸款，並在較小程度上參與了 5.75 億美元的第二留置權定期貸款。

SLX committed $47.9 million and $2.1 million in these loans, respectively, in support of the company's refinancing of existing debt. This investment is also representative of the increase in opportunities we are seeing for companies with durable business models, looking to restructure their balance sheets. In most cases, the complexity of these transactions require a direct lender that is willing and able to structure and underwrite a creative solution.

SLX 分別承諾在這些貸款中提供 4,790 萬美元和 210 萬美元，以支持公司現有債務的再融資。這項投資也代表了我們看到的具有持久商業模式、尋求重組資產負債表的公司機會的增加。在大多數情況下，這些交易的複雜性需要直接貸款人願意並且能夠建立和承銷創造性的解決方案。

Given our extensive experience and dedicated resources across the Sixth Street platform, we are well positioned to lead these opportunities. Additionally, the level of competition is lower for these investments compared to more traditional loan structures, which has contributed to our busy start to the year from an investment perspective, which I'll pivot to now.

鑑於我們在第六街平台的豐富經驗和專用資源，我們有能力引領這些機會。此外，與更傳統的貸款結構相比，這些投資的競爭程度較低，這從投資的角度來看，這促成了我們今年的繁忙開局，我現在將轉向這一點。

In Q1, we provided total commitments of $264 million and total fundings of $163 million across the 9 new portfolio companies and upsizes to 5 existing investments. We experienced $109 million of repayments from threefold, 7 partial and 18 structured credit investment realizations, resulting in $54 million of net funding activity. It was another strong quarter for originations with 95% of total fundings in new investments with 5% supporting upsize to existing portfolio companies.

第一季度，我們為 9 家新投資組合公司提供了 2.64 億美元的總承諾和 1.63 億美元的資金總額，並將現有投資擴大到 5 家。我們從三倍、7 項部分和 18 項結構性信貸投資變現中獲得了 1.09 億美元的還款，從而產生了 5,400 萬美元的淨融資活動。對於新創公司來說，這是另一個強勁的季度，總資金的 95% 用於新投資，其中 5% 支持現有投資組合公司的規模擴大。

This quarter's funding is contributed to our diversified exposure to select industries with nine new investments across eight different industries. Consistent with our long-term approach of investing at the top of the capital structure, 95% of fundings this quarter were in first lien loans, bringing our total first lien exposure to 92% across the entire portfolio. We continue to benefit from the size and scale of Sixth Street capital base as we participated in several cross-platform deals, including our largest new commitment during the quarter, which supported the take private transaction of Alteryx.

本季的資金有助於我們對特定產業的多元化投資，在八個不同產業進行了九項新投資。與我們在資本結構頂層進行投資的長期方法一致，本季 95% 的資金來自第一留置權貸款，使我們整個投資組合的第一留置權曝險總額達到 92%。我們繼續受益於第六街資本基礎的規模和規模，因為我們參與了幾項跨平台交易，包括本季我們最大的新承諾，該承諾支持了 Alteryx 的私有化交易。

In March, Sixth Street (inaudible) closed on a senior secured credit facility as part of the $4.4 billion acquisition of Alteryx by Clearlake Capital and Insight Partners. Our close relationship with both sponsors, combined with our ability to commit to the deal and size were key to securing our leading role in the debt financing. Moving on to repayment activity. Our 2 largest exits during the quarter, (inaudible) Bill Highway were older vintage assets that were driven by refinancings. These investments generated a weighted average asset level gross IRR of 12.2% for SLX shareholders.

3 月，Sixth Street（聽不清楚）完成了一項優先擔保信貸融資，這是 Clearlake Capital 和 Insight Partners 以 44 億美元收購 Alteryx 的一部分。我們與兩家發起人的密切關係，加上我們對交易和規模的承諾能力，是確保我們在債務融資中發揮主導作用的關鍵。繼續進行還款活動。我們本季最大的兩次退出（聽不清楚）比爾高速公路是由再融資推動的較舊的老式資產。這些投資為 SLX 股東帶來了 12.2% 的加權平均資產水準總 IRR。

Beyond refinancing, another notable area of repayment activity during the quarter was in our structured credit portfolio. As a reminder, we purchased approximately $54 million of CLO liabilities at a significant discount to par during the market volatility that occurred in Q2 and Q3 of 2022. Rather than holding excess capital or deploying capital into investments that do not exceed our cost of capital, we leverage the experience across the Sixth Street platform to opportunistically invest in BBB and BB CLO liabilities that presented an efficient use of shareholder capital.

除了再融資之外，本季還款活動的另一個值得注意的領域是我們的結構化信貸投資組合。提醒一下，在2022 年第二季和第三季發生的市場波動期間，我們以大幅折扣購買了約5,400 萬美元的CLO 負債。的投資中，我們利用第六街平台的經驗，機會主義地投資於 BBB 和 BB CLO 負債，從而有效利用股東資本。

Since then, we have watched our investment thesis play out as we rotated out of approximately 85% of our CLO liability exposure today. We purchased those securities at a weighted average price of 88.5% with a 3-year discount margin of approximately $880 and exited at a weighted average of 98.5%, with a 3-year discount margin of approximately $535.

從那時起，我們就見證了我們的投資理論的發揮，因為我們今天輪換了大約 85% 的 CLO 負債曝險。我們以 88.5% 的加權平均價格購買這些證券，3 年折價幅度約為 880 美元，並以 98.5% 的加權平均價格退出，3 年折價幅度約為 535 美元。

For Q1, these exits resulted in approximately $0.02 per share of realized gains for SLX shareholders. We expect to continue rotating out of the structured credit portfolio to crystallize the returns we've generated and will opportunistically come back to this theme in moments where it presents an efficient use of capital, based on the return profile.

第一季度，這些退出為 SLX 股東帶來了每股約 0.02 美元的已實現收益。我們預計將繼續從結構性信貸投資組合中輪換，以具體化我們所產生的回報，並將根據回報情況，在資本有效利用的時刻機會性地回到這一主題。

From a portfolio yield perspective, our weighted average yield on debt and income-producing securities (inaudible) costs decreased slightly quarter-over-quarter from 14.2% to 14.0%. This decline reflects the combination of 10 basis points of spread compression from lower spreads on new investments and 5 basis points from the decline in reference rate resets.

從投資組合收益率的角度來看，我們的債務和創收證券（聽不清楚）成本的加權平均收益率較上季略有下降，從 14.2% 降至 14.0%。這一下降反映了新投資利差下降導致利差壓縮 10 個基點以及參考利率重置下降導致利差壓縮 5 個基點的綜合影響。

New investment spreads were lower in Q1, largely driven by roughly 2/3 of our fundings, including an upside is falling into what we call our lane 1 bucket. Lane 1 has extra(inaudible) been about 65% of our total investment activity and generally includes regular way financing to sponsor-backed companies. In Q1, this includes investments into high-quality companies such as Alteryx and Clearance Technologies, which are scaled businesses with attractive financial profiles.

第一季的新投資利差較低，主要是由我們大約 2/3 的資金推動的，其中包括我們所說的第一通道投資。 Lane 1 額外（聽不清楚）占我們總投資活動的 65% 左右，通常包括對贊助商支持的公司的常規融資。第一季度，這包括對 Alteryx 和 Clearance Technologies 等優質公司的投資，這些公司規模宏大，財務狀況具有吸引力。

The other 1/3 of our funding activity was in more complex lane 2 bucket, which typically includes higher yielding assets represented by our investment in Equinox during the quarter. As an illustration of the difference in yields, our new Q1 investments in Lane 1 had a weighted average yield at amortized cost of 11.3% compared to 14.0% for our investments and Lane 2 assets.

我們另外 1/3 的融資活動位於更複雜的第 2 通道，其中通常包括以本季我們對 Equinox 的投資為代表的更高收益資產。作為收益率差異的一個例證，我們第一季在第1 泳道的新投資的加權平均收益率（以攤餘成本計算）為11.3%，而我們的投資和第2 泳道資產的加權平均收益率為14.0%。

On a consolidated basis, the weighted average yield at amortized cost of new investments, including upsizes for Q1 was 12.2% compared to a yield of 14% on fully exited investments. Moving on to the portfolio composition and credit stats. Across our core borrowers for whom these metrics are relevant, we continue to have conservative weighted average attach and detach points of 0.7x and 4.9x, respectively, and our weighted average interest coverage remains constant at 2.0x.

綜合來看，新投資（包括第一季擴大規模）的攤餘成本加權平均收益率為 12.2%，而完全退出投資的收益率為 14%。繼續討論投資組合構成和信用統計。對於與這些指標相關的核心借款人，我們繼續保持保守的加權平均附加​​點和分離點，分別為 0.7 倍和 4.9 倍，而我們的加權平均利息覆蓋率保持穩定在 2.0 倍。

As a reminder, interest coverage assumes we apply reference rates at the end of the quarter to steady-state borrower EBITDA. As of Q1 2024, the weighted average revenue and EBITDA of our core portfolio companies was $275.5 million and $92.5 million, respectively. Finally, the performance rating of our portfolio continues to be strong with a weighted average rating of 1.15 on a scale of 1 to 5, with 1 being the strongest, representing an improvement from last quarter's rating of 1.16, driven by growth in the portfolio from new investments.

提醒一下，利息覆蓋率假設我們在季度末對穩態借款人 EBITDA 應用參考利率。截至 2024 年第一季度，我們核心投資組合公司的加權平均收入和 EBITDA 分別為 2.755 億美元和 9,250 萬美元。最後，我們投資組合的績效評級繼續保持強勁，加權平均評級為 1.15（從 1 到 5 的等級），其中 1 為最強，較上季度的 1.16 評級有所改善，這得益於投資組合的增長新投資。

As Josh mentioned earlier, we added one new company (inaudible) Acquisition Corp. to nonaccrual status at the end of the quarter resulting in two portfolio companies on nonaccrual across the entire portfolio. With that, I'd like to turn it over to my partner, Ian, to cover our financial performance in more detail.

正如喬許先前所提到的，我們在本季結束時將一家新公司（聽不清楚）Acquisition Corp. 加入非應計狀態，從而導致整個投資組合中的兩家投資組合公司處於非應計狀態。接下來，我想將其交給我的合作夥伴 Ian，以更詳細地介紹我們的財務表現。

Thank you, Bo. For Q1, we generated adjusted net investment income per share of $0.58 and adjusted net income per share of $0.52. Total investments were $3.4 billion, up 3% from the prior quarter as a result of net funding activity. Total principal debt outstanding at quarter end was $1.9 billion and net assets were $1.6 billion or $17.17 per share prior to the impact of the supplemental dividend that was declared yesterday.

謝謝你，博。第一季度，我們的調整後每股淨投資收益為 0.58 美元，調整後每股淨收益為 0.52 美元。由於淨融資活動，總投資額為 34 億美元，較上一季成長 3%。截至季末，未償還本金總額為 19 億美元，在昨天宣布的補充股息影響之前，淨資產為 16 億美元，即每股 17.17 美元。

Since the start of the rate hiking cycle, 2 years ago, we have successfully grown net asset value per share by 5.6% from a trough of $16.27 in Q2 of 2022 to $17.17 as at quarter end. Additionally, net asset value per share is now back above the pre rate hike level of $16.88 as of March 31, 2022, and is $0.01 below our historical high of $17.18.

自兩年前升息週期開始以來，我們已成功將每股資產淨值從 2022 年第二季的 16.27 美元低點增長到季度末的 17.17 美元，增長了 5.6%。此外，截至 2022 年 3 月 31 日，每股淨值現已回到升息前 16.88 美元的水平，比歷史高點 17.18 美元低 0.01 美元。

It has been a very busy year -- start to the year as we completed several capital markets transactions, including a bond offering, an equity raise and a revolving credit facility extension. Starting off in early January, we improved our funding mix and liquidity profile through a $350 million long 5-year bond offering.

這是非常忙碌的一年——年初我們完成了幾項資本市場交易，包括債券發行、股權融資和循環信貸延期。從 1 月初開始，我們透過發行 3.5 億美元的 5 年期長期債券改善了我們的融資組合和流動性狀況。

In March, we executed a small equity raise to take advantage of attractive new investment opportunities while remaining below the top end of our target leverage range of 1.25x debt to equity. Consistent with the framework we've outlined in the past, we issued equity above net asset value and deployed the new capital raised into assets generating estimated returns that exceed our calculated cost of capital.

3 月份，我們進行了小額股權融資，以利用有吸引力的新投資機會，同時保持低於 1.25 倍債務股本目標槓桿範圍的上限。與我們過去概述的框架一致，我們發行了高於資產淨值的股票，並將籌集的新資本部署到產生超過我們計算的資本成本的預期回報的資產中。

We'll spend a moment to walk through this math, starting with the assumption that our cost of equity is 9%, which was sourced from Bloomberg. Based on this assumption, we can back into the required return on new assets by applying the cost structure of our business, including the marginal cost of leverage, fees, estimated credit losses and other expenses to our unit economics model. This calculation results in a 10.6% return on assets, inclusive of credit losses required to generate a 9% return on equity.

我們將花一些時間來進行這個數學計算，首先假設我們的股本成本為 9%，該數據來自彭博社。基於這個假設，我們可以透過應用我們業務的成本結構（包括槓桿邊際成本、費用、估計信用損失和我們單位經濟模型的其他費用）來回歸新資產所需的回報。這項計算得出的資產回報率為 10.6%，其中包括產生 9% 股本回報率所需的信貸損失。

In our case, we deployed the new equity capital into investments with an average asset level yield of 12% to 13.5%, depending on the assumed weighted average life, resulting in an estimated ROE range of approximately 11.5% to 14% for the capital deployed, well above our estimated equity cost of capital.

在我們的案例中，我們將新的股權資本部署到平均資產水準收益率為12% 至13.5% 的投資中，取決於假設的加權平均壽命，因此所部署資本的估計ROE 範圍約為11.5%至14% ，遠高於我們估計的股權資本成本。

Shareholder returns continue to be our priority, and we strongly believe that our ability to access additional equity capital allows us to generate attractive risk-adjusted returns for our investors. Post quarter end, we further enhanced our debt maturity profile by closing an amendment to our revolving credit facility. With the ongoing support of our bank group, we amended our $1.7 billion secured credit facility, including extending the final maturity on $1.5 billion of these commitments through April 2029.

股東回報仍然是我們的首要任務，我們堅信，我們獲得額外股本的能力使我們能夠為投資者創造有吸引力的風險調整回報。季度末後，我們透過完成循環信貸安排的修訂進一步改善了我們的債務到期狀況。在我們銀行集團的持續支持下，我們修改了 17 億美元的擔保信貸安排，包括將其中 15 億美元的最終期限延長至 2029 年 4 月。

We are pleased with this outcome of this transaction as we successfully converted a legacy not extending lender to extending status and accepted an incremental commitment from an existing lender. There were no new non-extending lenders as part of this amendment, and we maintain the existing pricing and terms on the facility. The combination of the January bond issuance and the closing of the amendment to our credit facility extended the weighted average maturity on our liabilities to 4 years, which compares to an average remaining life of investments funded by debt of approximately 2.5 years.

我們對此交易的結果感到滿意，因為我們成功地將未延期的貸款人轉變為延期狀態，並接受了現有貸款人的增量承諾。作為本次修訂的一部分，沒有新的非延期貸款人，我們維持該設施的現有定價和條款。 1 月債券發行和信貸安排修訂結束相結合，將我們負債的加權平均期限延長至 4 年，而債務融資投資的平均剩餘期限約為 2.5 年。

This element is important to our asset liability matching principle of maintaining a weighted average duration on our liabilities that meaningfully exceeds the weighted average life of our assets funded by debt. All 3 of our capital markets transactions bolstered our balance sheet by enhancing our liquidity profile.

這項要素對於我們的資產負債匹配原則非常重要，即維持負債的加權平均期限，使其明顯超過債務資助的資產的加權平均期限。我們的所有 3 項資本市場交易都透過增強我們的流動性狀況來支撐我們的資產負債表。

As of March 31, we had $1.1 billion of unfunded revolver capacity against $260 million of unfunded portfolio company commitments eligible to be drawn. In terms of capital positioning, our ending debt-to-equity ratio from the balance sheet decreased quarter-over-quarter from 1.19x to 1.14x. The decrease was driven by the equity raise in February combined with repayment activity, which was partially offset by portfolio growth from new investments.

截至 3 月 31 日，我們擁有 11 億美元的無資金支持的循環能力，而有資格提取的 2.6 億美元的無資金支持的投資組合公司承諾。在資本配置方面，我們的資產負債表期末負債股本比率較上季從 1.19 倍下降至 1.14 倍。這一下降是由 2 月的股權融資和還款活動推動的，但新投資組合的成長部分抵消了下降。

As for upcoming maturities, we have reserved for the $347.5 million of 2024 notes due in November under our revolving credit facility. After adjusting our unfunded revolver capacity as of quarter end for the repayment of the 2024 notes, we continue to have ample liquidity of $764 million, representing 2.9x the amount of our unfunded commitments eligible to be drawn. Additionally, the repayment of 2024 notes will have an economic impact in 2025 as the implied funding mix shift will lower our weighted average cost of debt.

至於即將到期的票據，我們已根據循環信貸安排預留了 11 月到期的 3.475 億美元 2024 年票據。在調整截至季末償還 2024 年票據的無資金準備循環能力後，我們仍然擁有 7.64 億美元的充足流動性，相當於我們有資格提取的無資金準備承諾金額的 2.9 倍。此外，2024 年票據的償還將對 2025 年的經濟產生影響，因為隱含的融資組合轉變將降低我們的加權平均債務成本。

Pivoting to our presentation materials, Slide 8 contains this quarter's NAV bridge. In addition to the items, Josh walked through earlier, the equity raise resulted in $0.14 per share uplift to NAV in Q1. Moving on to our operating results detailed on Slide 9, we generated $117.8 million of total investment income for the quarter, down 1.5% compared to $119.5 million in the prior quarter.

轉向我們的簡報材料，幻燈片 8 包含本季的 NAV 橋。除了這些項目之外，喬許早些時候還介紹過，此次股權融資導致第一季每股資產淨值提高了 0.14 美元。接下來是投影片 9 中詳細介紹的營運業績，我們本季的總投資收入為 1.178 億美元，比上一季的 1.195 億美元下降了 1.5%。

Interest and dividend income was $112.1 million, down slightly from the prior quarter, driven by the marginal decline in interest rates off of peak levels experienced in Q4. Other fees representing prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns, were lower at $1.5 million compared to $3.5 million in Q4, driven by lower coal protection from payoffs of older vintage assets during the quarter.

利息和股息收入為 1.121 億美元，較上一季略有下降，原因是利率較第四季的峰值水準小幅下降。其他費用（包括預付款費用和計劃外還款預付費用的加速攤銷）下降至 150 萬美元，而第四季為 350 萬美元，原因是本季舊資產償付帶來的煤炭保護較低。

Other income was $4.3 million compared to $3.9 million in the prior quarter. Net expenses, excluding the impact of a noncash reversal related to unwind of capital gains incentive fees were $65.4 million, up slightly from $65 million in the prior quarter. Our weighted average interest rate on average debt outstanding decreased from 7.8% to 7.6%, driven by the marginal decline in reference rates.

其他收入為 430 萬美元，上一季為 390 萬美元。淨支出（不包括與資本利得激勵費用解除相關的非現金逆轉的影響）為 6,540 萬美元，略高於上一季的 6,500 萬美元。由於參考利率邊際下降，我們的平均未償債務加權平均利率從 7.8% 下降至 7.6%。

Before passing it back to Josh, I wanted to circle back to our ROE metrics. In Q1, we generated an annualized ROE based on adjusted net investment income of 13.6% and an annualized ROE based on adjusted net income of 12.3%. This compares to our target return on equity on net investment income of 13.4% to 14.2% for the full year, as articulated during our Q4 earnings call, and we maintain this outlook heading into the rest of 2024. With that, I will turn it back to Josh for concluding remarks.

在將其傳回給 Josh 之前，我想回顧一下我們的 ROE 指標。第一季度，我們基於調整後淨投資收益的年化淨資產收益率為 13.6%，基於調整後淨收益的年化淨資產收益率為 12.3%。相較之下，我們在第四季度財報電話會議上闡明的全年淨投資收益股本回報率目標為 13.4% 至 14.2%，我們在 2024 年剩餘時間裡維持這一前景。

Thank you, Ian. I'd like to close our prepared remarks here by encouraging our shareholders to participate and vote for upcoming annual and special meetings on May 23. Consistent with previous years, we are seeking shareholder approval to issue shares below net asset value, effective for the upcoming 12 months. To be clear, to date, we have never issued shares below net asset value under prior shareholder authorization granted to us for each of the past 7 years. We have no current plans to do so.

謝謝你，伊恩。我想在此結束我們準備好的發言，鼓勵我們的股東參加5 月23 日即將舉行的年度會議和特別會議並為其投票。對即將到來的年度會議和特別會議有效12個月。需要明確的是，迄今為止，在過去 7 年中，我們每年在獲得股東事先授權的情況下從未發行過低於資產淨值的股票。我們目前沒有這樣做的計劃。

We merely view this authorization as an important tool for value creation and financial flexibility and periods of market volatility. As evidenced by the last 10-plus years since our initial public offering, our bar for raising equity is high. We've only raised equity when trading above net asset value on a very disciplined basis. So we would only exercise this authorization to issue shares below net asset value as there are sufficiently high risk-adjusted return opportunities that would ultimately be accretive to our shareholders through overreading our cost of capital in any associated dilution.

我們只是將這項授權視為價值創造和財務靈活性以及市場波動時期的重要工具。自從我們首次公開募股以來的過去十多年來，我們籌集股本的門檻很高。我們只有在交易高於淨資產價值時才會在非常嚴格的基礎上籌集股本。因此，我們只會行使這項授權來發行低於資產淨值的股票，因為有足夠高的風險調整回報機會，這些機會最終將透過在任何相關稀釋中過度解讀我們的資本成本來為我們的股東帶來增值。

If anyone has questions on this topic, please don't hesitate to reach out to us. We have also provided a presentation which walks through this analysis in the Investor Resources section of our website. We hope you find the supplemental information helpful as a way of providing a clear rationale for providing the company and this access to this important tool.

如果有人對此主題有疑問，請隨時與我們聯繫。我們也在網站的投資者資源部分提供了一個演示文稿，詳細介紹了這項分析。我們希望您發現補充資訊對您有所幫助，因為它可以為向公司提供以及訪問這一重要工具的途徑提供清晰的理由。

As a final comment for today's call, I wanted to share my thoughts on the recent press focus on the perceived systemic risk in private credit. I would suspect that this narrative largely comes from participants that have lost market share and the associated fee streams from the growth of private credit. Clearly, private credit has been a disruptive force to the incumbent business model in the noninvestment grade, corporate credit space, which is banks acting as an intermediary, which we have called the moving business, sitting between issuers and ultimate holders of risk in collecting an economic rent.

作為今天電話會議的最後評論，我想分享我對最近媒體關注的私人信貸系統性風險的看法。我懷疑這種說法主要來自那些因私人信貸成長而失去市場份額和相關費用流的參與者。顯然，私人信貸已經成為非投資級企業信貸領域現有商業模式的顛覆性力量，即銀行充當中介機構，我們稱之為行動業務，位於發行人與最終風險持有者之間，以收取風險。經濟租金。

Private credit is no doubt disruptive to this model. The criticism of private credit is that it's taking more risk on the asset side. However, the historical data doesn't support this argument. According to Cliffwater Direct Lending Index, Direct lending has had annualized losses in line with JPM Leveraged Loan Index and significantly less than the high yield over the past 1, 5, 10 and 20 years.

私人信貸無疑對這種模式具有顛覆性。對私人信貸的批評是，它在資產方面承擔了更多的風險。然而，歷史數據並不支持這個論點。根據Cliffwater直接貸款指數，直接貸款的年化損失與JPM槓桿貸款指數一致，且明顯低於過去1年、5年、10年及20年的高收益率。

In addition, any systemic risk must be in the context of a business model -- of the business model, and we believe private credit has a superior business model. Unlike banks, where the business model is winning long and funding short private credit is match funded. As students of all types of models and financial services, the tail risk typically comes from liquidity issues and in its core, a poor asset liability matching model. This was apparent in the regional banking crisis.

此外，任何系統性風險都必須存在於商業模式的背景下——商業模式的背景下，我們相信私人信貸擁有更優越的商業模式。與銀行不同的是，銀行的商業模式是贏得多頭並為空頭提供資金，私人信貸是匹配資金。作為所有類型模型和金融服務的學生，尾部風險通常來自流動性問題，其核心是不良的資產負債匹配模型。這在地區銀行危機中表現得尤為明顯。

Furthermore, unlike banks, we have some protection through the FDIC program, a taxpayer put doesn't exist for private credit vehicles. And finally, we can't ignore the differences in capitalization. Risk-bearing capital inside banks is somewhere between 9% to 12% versus private credit between 25% and 50%. That being said, we are sure there will be dispersion and results in private credit. Dispersion, however, shouldn't be conflated with the systemic risk. With that, thank you for the time today. Operator, please open up the line for questions.

此外，與銀行不同的是，我們透過 FDIC 計劃獲得了一些保護，私人信貸工具不存在納稅人看跌期權。最後，我們不能忽視大小寫的差異。銀行內部的風險資本在 9% 到 12% 之間，而私人信貸的風險資本在 25% 到 50% 之間。話雖如此，我們確信私人信貸將會出現分散和結果。然而，分散性不應與系統性風險混為一談。至此，謝謝您今天的時間。接線員，請開通提問線。

(Operator Instructions) And our first question will come from Brian McKenna of Citizens JMP.

（操作員說明）我們的第一個問題將來自 Citizens JMP 的 Brian McKenna。

My first question is on the trajectory of adjusted NII. It stepped down $2.5 million sequentially in the quarter. So what was the biggest driver of that? I know you added one company to nonaccrual status during the period. So does that contribute to the step down at all? And then how much did tighter spreads impacted on a per share basis? And I'm just trying to get a sense of a good jumping off point for NII in 2Q and beyond.

我的第一個問題是關於調整後的NII的軌跡。該公司本季連續削減了 250 萬美元。那麼最大的推動因素是什麼呢？我知道您在此期間將一家公司添加到非應計狀態。那麼這是否會導致下台呢？那麼利差收緊對每股的影響有多大？我只是想了解第二季及以後 NII 的良好起點。

Yes. Great. Thanks, It's a good question. So the non-pool was as at the end of the quarter, so it had very little to no impact on NII. And I think the drivers of NII (inaudible) a small impact, I would call it 3 things. One is Base rates were down 5 basis points of small amount quarter-over-quarter. So the curve -- although the curve is up and it's higher for longer, the curve was downward sloping. So that's a piece of it. Spreads had a very small impact as well.

是的。偉大的。謝謝，這是個好問題。因此，非池化是截至本季末的情況，因此對 NII 的影響很小甚至沒有。我認為 NII 的驅動程式（聽不清楚）影響很小，我稱之為三件事。一是基本利率季減 5 個基點。因此，曲線——儘管曲線是向上的，並且較高的時間更長，但曲線是向下傾斜的。這就是其中的一部分。價差的影響也非常小。

So yield and advertise investments went from, I think, it was down 20 basis points quarter-over-quarter, in which 5 of that was base rate -- impact of base rate. So 15 basis points. And then the rest was just kind of episodic fees, which I think again laid out. So when we think about our business, I think we still feel very comfortable with our guidance on adjusted NII for the year, which was, Ian.

因此，我認為，收益率和廣告投資環比下降了 20 個基點，其中 5 個基點是基本利率——基本利率的影響。所以15個基點。然後剩下的只是一些偶發性費用，我想這又被列出來了。因此，當我們考慮我們的業務時，我認為我們仍然對今年調整後的 NII 指導感到非常滿意，即 Ian。

That was the 13.4% NII.

那是 13.4% 的 NII。

(inaudible) NII was 2.27% million. So I think we still feel very comfortable with that.

（聽不清楚）NII 為 2.27% 百萬。所以我認為我們對此仍然感到很舒服。

Yes. Okay. Got it. And then maybe just a follow-up. So spreads have clearly tightened here over the past several months. And if I look at new floating rate commitments in the quarter, spreads declined about 100 bps on average from the fourth quarter. So I guess my question is bigger picture around originations and just with spreads where they are in more liquidity broadly in both public and private credit markets. How are you making sure you're getting the right economics for the risk you're taking today, specifically as we move further into the current cycle?

是的。好的。知道了。然後也許只是後續行動。因此，過去幾個月利差明顯收緊。如果我看看本季新的浮動利率承諾，利差較第四季平均下降約 100 個基點。所以我想我的問題是關於起源和利差的更大的圖景，它們在公共和私人信貸市場上都具有更大的流動性。您如何確保針對您今天所承擔的風險獲得正確的經濟效益，特別是當我們進一步進入當前週期時？

Yes. Again, I think these are really good questions. I think the easiest way to see the economic value of what we're providing to shareholders is actually -- you see the equity raise this quarter. So yields this quarter, I think we went through the math clearly, but yields this quarter were somewhere between yield average life 11.5% and 14% on an average life basis with the swap curve. And that will bring ROEs similar into that range compared to our cost of equity of 9%.

是的。再說一次，我認為這些都是很好的問題。我認為了解我們為股東提供的經濟價值的最簡單方法實際上是——你會看到本季的股本籌集。因此，我認為我們清楚地計算了本季的殖利率，但根據掉期曲線的平均壽命，本季的殖利率介於 11.5% 和 14% 之間。與我們 9% 的股本成本相比，這將使 ROE 接近該範圍。

So even in this spread type environment, you've seen -- you're seeing, I think, value to our shareholders vis-a-vis cost of equity. Look, we were clear, I think the good news for our top shareholders is we were one of the few public BDCs that had capital available to invest in the last vintage. And most definitely, because of that, we're going to have a portfolio that kind of over earns. But even in this most recent quarter vintage, we are -- we have the ability to significantly overearn cost of capital and provide value to our shareholders.

因此，即使在這種利差類型的環境中，我認為，您也看到了相對於股本成本而言，我們股東的價值。聽著，我們很清楚，我認為對我們的頂級股東來說，好消息是我們是上個年份少數擁有可用於投資的資本的公共 BDC 之一。最肯定的是，正因為如此，我們將擁有一個超額收益的投資組合。但即使在最近一個季度，我們也有能力大幅超額賺取資本成本，並為股東提供價值。

Yes. Okay. I'll leave it there.

是的。好的。我會把它留在那裡。

Let me round up the point, I think it's helpful. Just because spreads have declined doesn't mean that we're not providing significant value to our shareholders. You could clearly see that even in this quarter's vintage given our cost of equity.

讓我總結一下這一點，我認為這很有幫助。利差下降並不代表我們沒有為股東提供重大價值。考慮到我們的股本成本，即使在本季度的年份中，您也可以清楚地看到這一點。

Our next question will be coming from Maxwell Fritscher of Truist.

我們的下一個問題將來自 Truist 的 Maxwell Fritscher。

I'm calling in for Mark Hughes. Kind of along the lines of Brian's question. With this higher competition, more capital being provided, are you seeing any companies becoming more comfortable with increasing their M&A activity? And if so, how do you see this shaking out throughout the year?

我要找馬克·休斯。有點像布萊恩的問題。隨著競爭的加劇和資本的增加，您是否看到任何公司對增加併購活動變得更加滿意？如果是這樣，您如何看待這一整年的變化？

Yes. Look, I would say -- as the force -- I would expect activity levels generally to be up. So I don't think we saw a little bit of that in Q1, when you look at Alteryx, for example, which was a take private you saw (inaudible) Co, which was an -- M&A, which was a portfolio company, which was a strategic investor owned by a sponsor buying an another strategic asset. So you saw a little bit of that this quarter. I think as volatility in the rates markets subside, and as rates come down a little bit, I think you'll see more activity.

是的。聽著，我想說——作為力量——我預期活動水準普遍會上升。所以我認為我們在第一季沒有看到一點這樣的情況，例如，當你看Alteryx 時，你看到的是（聽不清楚）公司的私有化，這是一家併購公司，這是一家投資組合公司，這是一個由贊助商擁有的策略投資者購買另一項策略資產。所以你在本季看到了一些這樣的情況。我認為，隨著利率市場波動的消退以及利率的略微下降，我認為您會看到更多的活動。

I think that more activity will have to impact our business. One is, it will hopefully increase portfolio churn on the margin, which will drive additional economics that we haven't seen. It's kind of dried up that's been historic driver of our return on equity. But I think you -- if you see activity levels, you'll see that portfolio churn, which will drive through economics for our business. And then there will obviously be more activity on the front end of things to do. So Bo, anything to add there?

我認為更多的活動將會影響我們的業務。一是，它有望增加邊際投資組合的流失，這將推動我們未曾見過的額外經濟成長。這是我們股本報酬率的歷史性推動因素，現在已經枯竭了。但我認為，如果你看到活動水平，你會看到投資組合的變動，這將推動我們業務的經濟發展。然後顯然前端會有更多的活動要做。 Bo，有什麼要補充的嗎？

No, I expect to see M&A activity continue to strengthen after a pretty anemic couple of years, both because of better financing costs but also because equity valuations are coming. There's more parity between buyers and sellers. Public equity markets have strengthened. And also a lot of businesses have grown into some of their valuations. So you're going to see better assets come to market over the next few quarters, and we're starting to see that in our pipeline today.

不，我預計併購活動在經歷了相當低迷的幾年後將繼續加強，這不僅是因為融資成本改善，也是因為股權估值即將到來。買家和賣家之間的平等程度較高。公共股票市場有所走強。而且許多企業的估值也已經達到了一定水準。因此，您將在接下來的幾個季度看到更好的資產進入市場，而我們今天開始在我們的管道中看到這一點。

That's very helpful. And Josh, you mentioned last quarter, and correct me if I misunderstood, but you're hopeful for more opportunities in '24 to strategically invest in good companies with bad balance sheets. Any developments on this front thus far?

這非常有幫助。喬希，你在上個季度提到過，如果我誤解了，請糾正我，但你希望在 24 年有更多機會對資產負債表不佳的好公司進行策略性投資。到目前為止這方面有進展嗎？

We even asked you to ask that question, let me ask to ask that question. That Equinox is a pretty good example of that. Equinox is a portfolio company of two strong sponsors related (inaudible) partners. It was a company that was obviously COVID-impacted, but it's one of the premier companies in the fitness space. It really only has one competitor and is a great company with a great brand and great user economics, but obviously COVID happened and (inaudible) business and balance sheet got complicated.

我們甚至要求你問這個問題，讓我問這個問題。春分就是一個很好的例子。 Equinox 是一家由兩個強大的贊助商相關（聽不清楚）合作夥伴組成的投資組合公司。這家公司顯然受到了新冠疫情的影響，但它是健身領域最領先的公司之一。它實際上只有一個競爭對手，是一家偉大的公司，擁有偉大的品牌和出色的用戶經濟效益，但顯然新冠疫情發生了，（聽不清楚）業務和資產負債表變得複雜。

And so we led a $1.2 billion senior secured first lien facility in connection with the new settling facilities by the sponsor and others to refinance that probably to the loan capital structure. We held roughly half of the investment. And so we were let we partnered with (inaudible) and so that was a business, an opportunity that we're super excited about. And then it was complicated with our private equity due diligence. And will come right in the middle of good company, bad balance sheet that needed (inaudible) complicated, but we really like both the sponsors in that business. we're big stewards of that business and supportive and the management team (inaudible).

因此，我們主導了一項 12 億美元的高級擔保第一留置權融資，該融資與贊助商和其他人提供的新結算融資有關，以便為貸款資本結構提供再融資。我們持有大約一半的投資。所以我們被允許合作（聽不清楚），所以這是一項業務，一個我們非常興奮的機會。然後我們的私募股權盡職調查就變得複雜了。並將出現在好公司的中間，糟糕的資產負債表需要（聽不清楚）複雜，但我們真的很喜歡該業務的贊助商。我們是該業務的大管家，並提供支援和管理團隊（聽不清楚）。

So we're excited. We think we're going to be -- given the rate environment and the higher prolonger narrative, there's going to be many of those same situations that, I think, go right in our wheelhouse, where we're going to have to provide capital -- where we have an opportunity to provide capital to generate stronger adjusted returns for our shareholders.

所以我們很興奮。我們認為，考慮到利率環境和更高的長期敘述，我認為，將會有許多相同的情況發生在我們的駕駛室中，我們將不得不提供資本——我們有機會提供資本，為股東創造更強勁的調整後回報。

Our next question will be coming from Finian O'Shea of WFS.

我們的下一個問題將來自 WFS 的 Finian O'Shea。

Josh, on your sort of the segueing there, but on your opening comments on the firming of the rate curve and the expected dispersion we'll see -- is that happening in real time, say, in response to the rate curve? Are you seeing reorgs or LMEs and so forth and on the -- in private credit. And on the flip side, should that translate to a more abundant deployment opportunity?

喬什，關於你在那裡的爭論，但是關於你對利率曲線的堅挺和我們將看到的預期分散的開場評論——這是否是實時發生的，比如說，對利率曲線的反應？您是否看到私人信貸領域的重組或倫敦金屬交易所等？另一方面，這是否會轉化為更豐富的部署機會？

Let me hear (inaudible) I think hopefully you're on the West, but we're kind of just waiting on there, (technical difficulty) your question. So I think our theme has been that higher longer is kind of the two (technical difficulty), the first (inaudible) is companies are going -- some companies are going to have problems in that environment, both due to demand, we should monitor (technical difficulty) demand for the products and services.

讓我聽聽（聽不清楚）我希望您在西方，但我們只是在那裡等待（技術難度）您的問題。因此，我認為我們的主題是，兩者中的一種（技術難度）更高，更長，第一個（聽不清楚）是公司正在發展- 一些公司在這種環境中會遇到問題，這都是由於需求，我們應該監控（技術難度）對產品和服務的需求。

The second is their balance sheet and their cost of increasing most definitely their interest costs. And so there is most definitely going to be issues. Hopefully, I think in general, those -- and that will cause dispersions between -- and net income and to economic return. And we've seen that a little bit on that margin. (inaudible), we put it out there like nonequivalent well for us at fair value 1.1% anthology, which is we (technical difficulty), we put out on accrual, we took the work down.

第二個是他們的資產負債表和增加利息成本的成本。所以一定會出現問題。我認為總的來說，希望這些——這將導致——淨收入和經濟回報之間的差異。我們已經看到了一點點。 （聽不清楚），我們以公允價值1.1% 的選集將其放在那兒，這對我們來說是非等價的，這就是我們（技術難度），我們以應計制形式推出，我們把工作記了下來。

That is still paying cash, by the way. That will still pay cash, I think the maturity that will be the cash-on-cash returns are like in the 30s on compared to fair value. That should be a tailwind on net asset value as we're taking that into an amortized costs. But there are real tales that pop up to be (technical difficulty) manageable for the industry. And given how much capital the industry holds, it shouldn't create any existential risk for the industry. On the (technical difficulty) provide a great opportunity for those who can deploy capital into those companies that help facilitate those LMEs or those restructurings like Equinox.

順便說一句，這仍然是支付現金。這仍然會支付現金，我認為與公允價值相比，現金回報的期限大約是 30 多歲。這應該是資產淨值的推動因素，因為我們將其計入攤銷成本。但也有一些真實的故事出現，該行業（技術難度）是可以管理的。考慮到該行業擁有多少資本，它不應該給該行業帶來任何生存風險。在（技術難度）上，為那些能夠將資本部署到有助於促進 LME 或 Equinox 等重組的公司的人提供了絕佳的機會。

So I think its a doublet, I think in the (inaudible) you were good on credit, which we think we are and that we -- you have capital deployed either because the market trusts you where you can raise more capital, which they historically have or you have excess balance sheet plus you have the requisite skill set to actually execute those transactions, which we most definitely have, which will create good deployment opportunities. And so that's the Goldilocks, we think we're in that.

所以我認為這是一個雙重因素，我認為（聽不清楚）你的信用良好，我們認為我們是這樣的，而且我們——你部署了資本，因為市場信任你，你可以籌集更多的資本，他們在歷史上是這樣的擁有或您擁有過剩的資產負債表，加上您擁有實際執行這些交易所需的技能，我們絕對擁有這些技能，這將創造良好的部署機會。這就是金髮姑娘，我們認為我們屬於其中。

We think we have all those pieces of the (inaudible) -- but we think it's going to be a really interesting environment for the next couple of years given higher for longer. it's going to -- and capital is allocated in some ways given low rates that this will be a good opportunity to participate in the opportunity set. But I think you need capital, which a lot of the industry doesn't have given more trades, you need the requisite skill set and then you need a clean portfolio.

我們認為我們已經擁有了（聽不清楚）的所有這些部分，但我們認為未來幾年這將是一個非常有趣的環境，並且會持續更長的時間。鑑於利率較低，資本會以某種方式分配，這將是參與機會集的好機會。但我認為你需要資本，而許多行業並沒有提供更多的交易，你需​​要必要的技能組合，然後你需要一個乾淨的投資組合。

Very good. And a follow-up, the -- looks like the last-out leverage has been somewhat declining the last handful of quarters at least. You're seeing if this is market-related or portfolio-related are you managing it down and if we should expect that to continue and what it means for returns?

非常好。後續的情況是，至少在過去幾個季度裡，最後的槓桿率似乎有所下降。您正在查看這是否與市場相關或與投資組合相關，您是否正在對其進行管理，我們是否應該期望這種情況繼續下去，這對回報意味著什麼？

Yes. Look, what I would say is -- we have -- we think on the margin, there are opportunities that today is in larger companies, larger capital structure. And those companies, given how big those credit facilities are, it's hard to club together somebody taking a first our revolver. And so by number, my guess is that's going down given what we think the opportunity set is. But that will kind of go up and down. That's a combination of, I think, two things. One is the large capital structure and the second thing is banks are still capital constrained. And we see that with a lot of our bank partners are (inaudible). So it doesn't have a huge (inaudible) have a huge impact on economic returns. But it's really those two things, which is where we see the opportunity that is and how big they're positioned.

是的。聽著，我想說的是──我們有──我們認為，在邊際上，今天在更大的公司、更大的資本結構中存在著機會。而這些公司，考慮到這些信貸額度有多大，很難將某人聯合起來搶走我們的第一把左輪手槍。因此，從數字來看，我的猜測是，考慮到我們認為的機會集，這一數字正在下降。但這會有所上升和下降。我認為這是兩件事的結合。一是資本結構龐大，二是銀行資本仍緊張。我們看到我們的許多銀行合作夥伴都是（聽不清楚）。所以它不會對經濟回報產生巨大的（聽不清楚）巨大的影響。但實際上是這兩件事，這就是我們看到的機會以及它們的定位有多大。

And our next question will be coming from Robert Dodd of Raymond James.

我們的下一個問題將來自雷蒙德·詹姆斯的羅伯特·多德。

Hope you can hear me okay. On the comment Josh you made, the tails going to get fatter. I mean the longer rates stay up, obviously, it's going to get longer and I mean -- but look, your portfolio pick went up a little bit sequentially. It looks like that was mainly new investments, though, our unfunded commitments ticked up again, it looks like it's making new investments, but it's hard to tell. Can you give us any color on are you seeing incremental revolver draws more broadly? I mean, obviously, there's a couple of assets, right? Astra, for example, you just put on (inaudible) having some you have some credit issues. But are there any emerging signs in the portfolio that this hire for longer is starting to create pressure in terms of liquidity and liquidity leads?

希望你能聽到我的聲音。根據你對喬希的評論，尾巴會變得更胖。我的意思是，利率維持的時間越長，顯然，它會變得更長，我的意思是——但是看，你的投資組合選擇依次上升了一點。看起來這主要是新投資，不過，我們無資金的承諾再次增加，看起來像是正在進行新投資，但這很難說。您能否告訴我們您是否看到增量左輪手槍得到更廣泛的應用？我的意思是，顯然，有一些資產，對吧？例如，阿斯特拉（Astra），你只需穿上（聽不清楚）有一些你有一些信用問題。但投資組合中是否有任何新的跡象表明，這種長期聘用開始對流動性和流動性領先造成壓力？

No. And just coverage would actually flatten out the increase. Earnings, I think on a same-store basis grew about 10% quarter-over-quarter. Revenues grew by about 5%. I think the -- the answer is no. I think the -- I think some of the unfunded commitment increased quarter-over-quarter was all tariff-setting where they're going to be -- with going through a process to -- with a (inaudible) with the bond orders to call those bonds in. But no, broadly speaking, we don't haven't seen that pressure. And then obviously, from a (inaudible) perspective, we reserve from funding commitments in that close to 3x post bond maturity of liquidity for unfunded commitment. So how does the in stress, like broad-based stress, interest coverage was kind of bottomed out as on the rise, given the earnings growth plus the combination of the forward curve, although higher for longer, it's still declining. So no.

不會。我認為同店獲利季增約 10%。收入成長約5%。我認為答案是否定的。我認為，一些無資金支持的承諾逐季度增加，都是關稅設定，他們將通過一個程序（聽不清楚）債券訂單來確定關稅。看到這種壓力。然後顯然，從（聽不清楚）的角度來看，我們為無融資承諾保留了接近 3 倍債券到期後流動性的融資承諾。那麼，考慮到獲利成長加上遠期曲線的組合，與廣泛壓力一樣，利息覆蓋率是如何觸底反彈的，雖然在較長時間內較高，但仍在下降。所以不行。

Second one, if I can. On the other fee income, obviously, it was low again this quarter, not a huge surprise. But if we go higher for longer, if there's less activity there, are we in -- do you think there's a risk that in relatively prolonged period of lower other fee income from the portfolio given, obviously, the less activity, the older the assets get -- the older they get, the less fee income they generate if they do anything anyway. So is there a little bit of a low cycle here that could progress all the way through '24, maybe even 25% until the portfolio gets recycled? Or is it just transitory?

第二個，如果可以的話。顯然，其他費用收入本季再次較低，這並不令人意外。但是，如果我們價格走高的時間更長，如果那裡的活動較少，那麼您認為在相對較長的時期內，投資組合的其他費用收入較低，顯然，活動越少，資產越老，我們是否有這樣的風險？那麼這裡是否存在一點低週期，可能會持續到 24 年，甚至可能達到 25%，直到投資組合被回收？還是這只是暫時的？

Yes. I think it's a great question. Hard to model. What I would say is I think there's us in the industry. First, historically, we've had more of the type of income I think -- so I think we can agree on that. So -- but the question is, is it -- how does that impact us? I think when you look at our portfolio, unlike the rest of the industry, we were actually able to deploy post rate hiking cycle. And so we have more business in '22 and '23. And so that was a higher spread environment.

是的。我認為這是一個很好的問題。很難建模。我想說的是，我認為這個行業有我們。首先，從歷史上看，我們擁有更多我認為的那種收入——所以我認為我們可以在這一點上達成一致。那麼——但問題是——這對我們有何影響？我認為，當你看到我們的投資組合時，與行業其他公司不同的是，我們實際上能夠部署加息後週期。因此，我們在 22 年和 23 年有更多業務。所以這是一個更高傳播的環境。

So I think you're going to -- either one of the two things will happen is, one is we'll hold those assets for longer, which would overearn at churn, we can all agree spreads coming in a little bit, which will create income. So we have 43% of the of the portfolio was invested in the second half of 2022. So I think we were -- given how we manage the business and how focused we've been on being good allocators of capital, the market has rewarded us with the ability to give us more capital, which allow us to view this vicious cycle. It allow us to invest in '22-'23 vintage in a higher spread environment, which my guess will at some point churn. I think you have to split out between the industry and us, and we just have more '22, '23 vintage, and we all agree (inaudible).

所以我認為你會 - 兩件事中的任何一件都會發生，一是我們將持有這些資產更長時間，這將在流失時獲得超額收益，我們都同意利差會小一點，這將創造收入。因此，我們 43% 的投資組合是在 2022 年下半年進行投資的。我們更多的資本，這讓我們能夠看到這個惡性循環。它使我們能夠在更高的價差環境中投資 '22-'23 年份，我的猜測在某些時候會發生變化。我認為你必須在行業和我們之間進行區分，我們只是有更多 '22、'23 年份的葡萄酒，我們都同意（聽不清楚）。

Our next question will be coming from Erik Zwick of Hovde Gr Group.

我們的下一個問題將來自 Hovde Gr Group 的 Erik Zwick。

First question is maybe a 2-part question. Bo noted that competition you guys have talked about it in subsequent answer, so the competition has increased since last year. And I'm curious if that is manifesting primarily just in compressed spreads and on the pricing side? Or if you're seeing anything on the structure side as well. So that's the first question. And I guess the second would be one your slides, you note that the for your portfolio, the weighted average number of covenants per credit agreement is 1.8%. I'm curious if that has changed over time or if that's been pretty consistent as well.

第一個問題可能由兩個部分組成。 Bo指出，競爭你們在後面的回答中已經談到了，所以從去年開始競爭就增加了。我很好奇這是否主要體現在壓縮的價差和定價方面？或者如果您在結構方面也看到了任何東西。這是第一個問題。我想第二張是你的投影片，你注意到，對於你的投資組合，每個信用協議的加權平均契約數是 1.8%。我很好奇這種情況是否隨著時間的推移而改變，或者是否一直保持一致。

It doesn't -- it most definitely will lead on the margin into the document. Documents are so better than relative well documents. But it doesn't just stop at the door of spreads. So but we still feel comfortable with the overall package. And then I would say there is a little bit of a tale of 2 cities. We look at seeing the opportunity set up market.

它不會——它肯定會在文件的邊緣出現。文件比相對完善的文檔好得多。但它不僅止於利差之門。但我們仍然對整體方案感到滿意。然後我想說有一個關於兩個城市的故事。我們著眼於市場建立的機會。

And on upmarket, there is those documents, there might be a few or less financial covenants. And so -- but that is a -- we're making a choice between the trade-off between credit quality side of the company and protections. And we think the relative value is still very good there. Just to size it up. Not everybody -- there's a handful of people who you write $500 million check. there's a lot of people that can write $40 million to $50 million check. And so in this moment in time, it always won't be that case. We've moved up market. You can see that in our underlying EBITDA -- average EBITDA portfolio company that's that fine metric. I think it's gone from $35 million a couple of years ago to 90%, Ian what's the average now?

在高端市場，有這些文件，可能有一些或更少的財務契約。所以——但這是——我們正在公司的信用品質方面和保護之間進行權衡。我們認為那裡的相對價值仍然非常好。只是為了調整大小。不是每個人——只有少數人會被你開出 5 億美元的支票。有很多人可以開出 4000 萬至 5000 萬美元的支票。所以在這個時刻，情況永遠不會是這樣。我們已經提升了市場。您可以在我們的基本 EBITDA（平均 EBITDA 投資組合公司）中看到，這是一個很好的指標。我想它已經從幾年前的 3500 萬美元上升到了 90%，伊恩，現在的平均水平是多少？

It's over 90%.

已經超過90%了。

Over 90%. So anything to add there, Bo?

超過90%。那還有什麼要補充的嗎，Bo？

The only thing I would add is we continue to only invest in situations where we have control or influence on the documentation. And with competition, you're going to see with your documentation, but we still have -- we still control that and tend to only play in situations where we believe the document still have the protections that we need as investors. So we have seen losing of terms certainly from 18 to 24 months ago when docs get really tight, but they're still adequate to protect our capital.

我唯一要補充的是，我們繼續只投資於我們能夠控製或影響文件的情況。在競爭中，你會看到你的文件，但我們仍然控制著這一點，並且往往只在我們相信該文件仍然具有我們作為投資者所需的保護的情況下發揮作用。因此，從 18 到 24 個月前，當文件變得非常緊張時，我們肯定會看到條款的損失，但它們仍然足以保護我們的資本。

I appreciate the detailed commentary there. And I guess just the only remaining question for me. And you just noted the ability to write large checks and if I look at Slide 6 and average investment size in your portfolio. If I look at it, excluding the structured credit investments, it's actually down a little bit year-over-year. However, if the then includes the structured credit, it's up year-over-year. So just curious about the kind of the divergence there and what's transpired on the structured credit side over the past year or so?

我很欣賞那裡的詳細評論。我想這對我來說是唯一剩下的問題了。您剛剛提到了開大支票的能力，如果我看一下投影片 6 和您投資組合中的平均投資規模。如果我看一下，不包括結構性信貸投資，它實際上比去年同期下降了一點。然而，如果包括結構性信貸，則同比增長。那麼只是對過去一年左右的結構性信貸方面發生的分歧以及結構性信貸方面發生的情況感到好奇嗎？

Yes. The divergence as we've increased diversity in our portfolio for sure, over time. And our capital base is relatively fixed in SLX. And so in participating in larger deals across the platform, but our capital base is relatively fixed in Natural (inaudible) we've been focused on increasing diversity. So I hope -- I think I got that question.

是的。隨著時間的推移，我們肯定會增加投資組合的多樣性，從而產生分歧。而且我們的資本基礎相對固定在SLX。因此，在參與整個平台上的較大交易時，但我們的資本基礎相對固定在自然（聽不清楚）中，我們一直專注於增加多樣性。所以我希望——我想我得到了這個問題。

Our next question will be coming from Melissa Wedel of JPMorgan.

我們的下一個問題將來自摩根大通的梅麗莎·韋德爾。

Most of my questions have already been answered, but I wanted to follow up on your comment, Josh, about the opportunity set right now. You're seeing it really with the larger companies and bigger capital structures. Based on Ian's comments, it seems a very detailed analysis of what the return threshold is for new investments and where you were able to source -- what you're able to source in the first quarter. Certainly, it looks like you're able to clear that threshold by a couple of hundred basis points, at least in the first quarter.

我的大部分問題已經得到解答，但喬希，我想跟進您對當前機會集的評論。你在更大的公司和更大的資本結構中確實看到了這一點。根據伊恩的評論，這似乎是對新投資的回報門檻以及您能夠在哪裡採購的非常詳細的分析 - 您在第一季能夠採購什麼。當然，看起來你能夠將這個門檻提高幾百個基點，至少在第一季是如此。

But as competition increases, I guess the question is, do you see the opportunity set evolving more in the more complex deals? And you talked about a couple of those that you got done in the first quarter. Is that where the economics are? Is that where we should think about you being involved primarily in the next few quarters?

但隨著競爭的加劇，我想問題是，您是否認為在更複雜的交易中機會集會發生更多變化？您談到了第一季完成的一些工作。這就是經濟所在嗎？這是我們應該考慮您在接下來的幾季主要參與的地方嗎？

Let me tell you the power. I think this is at the heart of our platform. I think this is and now part of how we think about this, investing in how we (inaudible). So I mean I may go down around a hole and then you can pull me up for a second. So (inaudible) I think people know $77 billion or $75-plus (inaudible) Management. 600-plus employees. We have people sitting across industries and verticals and focus on the companies all types in all parts of their life cycle. And that includes by sector, by size and then by we're there on the life cycle from growth restructuring.

讓我告訴你力量。我認為這是我們平台的核心。我認為這是我們現在思考這個問題的一部分，投資我們的方式（聽不清楚）。所以我的意思是我可能會繞著一個洞下去，然後你可以把我拉起來。所以（聽不清楚）我認為人們了解 770 億美元或 75 美元以上（聽不清楚）的管理。 600多名員工。我們的人員來自各個行業和垂直領域，專注於所有類型的公司的生命週期的各個部分。這包括按部門、按規模，然後按我們所處的增長重組的生命週期。

And the power of our platform is that we can go between on a relative value. So between all those factors, from size of the company, to where they are on their life cycle to what sectors we think are interesting. And at some point, sectors are throwing out for no reason, and we think they're interesting and we can deploy capital there. Think of that as energy, which our returns have been very good. At one part, it was retail consumer. And then software, we have a differentiated view. And so we're really a relative value fire across a big top of the funnel. That is our business model.

我們平台的力量在於我們可以在相對價值之間進行交易。因此，在所有這些因素之間，從公司規模，到它們處於生命週期的哪個階段，再到我們認為感興趣的領域。在某些時候，某些行業會無緣無故地拋棄，我們認為它們很有趣，我們可以在那裡部署資本。將其視為能源，我們的回報非常好。一方面是零售消費者。然後是軟體，我們有差異化的觀點。因此，我們確實是漏斗頂部的相對價值之火。這就是我們的商業模式。

And so the answer is I don't know the difficult part of capitalism -- capital that was working is when there's excess returns capital flow. And so you kind of have to keep checking and diving through the opportunity set, that is the power of the business. And so it might be retail -- for 6 months or 9 months, it might be software as a services. It might be industrial. It might be energy. It might be a small cap. It might be a large cap. The power of the platform that what we're delivering to investors is our ability to cross those opportunities that where we have a closer to a platform where we can collaborate, where we can deliver that to people.

所以答案是我不知道資本主義的困難部分——資本在有超額回報的情況下發揮作用。因此，你必須不斷檢查和深入研究機會集，這就是業務的力量。因此，它可能是零售的——在 6 個月或 9 個月內，它可能是軟體即​​服務。可能是工業用的。這可能是能量。它可能是一個小盤。這可能是一個大帽子。我們提供給投資者的平台的力量在於我們有能力抓住這些機會，我們可以更接近一個可以合作的平台，我們可以將這些機會提供給人們。

And so that is what we have built for people. That's what we'll continue to lean on and so I know across environments, across opportunities that we're just not a (inaudible) business, and that is where the durability of the returns that come from.

這就是我們為人們打造的。這就是我們將繼續依賴的東西，所以我知道，在各種環境、各種機會中，我們只是不是一家（聽不清楚）企業，而這就是回報的持久性的來源。

Okay. I appreciate that overview and reviewing of the opportunistic nature of what you guys are able to do. Maybe I should have rephrased my question a little bit just in terms of really sort of the pipeline on complicated investments and that idea of the good company, that balance sheet and a higher for longer impairment or you expecting more of that.

好的。我很欣賞你們所做的事情的機會主義性質的概述和回顧。也許我應該稍微重新表述我的問題，只是根據複雜投資的真正流程以及好公司的想法，資產負債表以及長期減值或您期望更多的更高的資產負債表。

I would hope so. I mean, I look at my macro view is it's difficult for the set to pivot. We've been saying this for a long time if that hasn't pivoted and that's going to cause stress and capital structures. And so my hope is that will be -- that like Equinox, that will be interesting. We did a depth in Q1, which is public for $0.99, which is a retail business. That liquidation is going very well. And so we like the opportunity that my hope that is kind of right into the -- that's trying to go now of the platform.

我希望如此。我的意思是，我的宏觀觀點是，設定很難發生轉變。我們已經這麼說了很久了，如果這種情況沒有轉變，就會造成壓力和資本結構。所以我希望這會像 Equinox 一樣，會很有趣。我們在第一季做了深度，公開的價格是0.99美元，是零售業務。清算進展順利。因此，我們喜歡這個機會，我希望這是一個現在嘗試進入該平台的機會。

You got me all excited about what the platform delivers for value-add. So sorry, I had to go down the rabbit hole.

你讓我對這個平台提供的加值服務感到非常興奮。很抱歉，我必須掉進兔子洞。

And our next question will be coming from Bryce Rowe of B. Riley.

我們的下一個問題將來自 B. Riley 的 Bryce Rowe。

Wanted to maybe just continue on this theme of churn within the portfolio and just churn generally within the industry. You all have clearly focused on putting money to work in '22 and '23 vintages and addressing any kind of maturities that we -- that you have in '24 and '25 and those are now kind of more limited. So if you could kind of talk about or size up the opportunity from an origination perspective versus what we might see from a repayment perspective within the portfolio and what that might mean for kind of net portfolio growth as we look forward.

希望也許只是繼續投資組合中的流失主題，並在產業內普遍流失。你們所有人顯然都專注於在'22和'23年份投入資金，並解決我們在'24和'25年份的任何類型的到期問題，而這些現在更加有限。因此，如果您可以從發起角度談論或評估機會，與我們從投資組合內的償還角度可能看到的機會，以及這對我們未來的投資組合淨增長可能意味著什麼。

I would -- on the margin, I would think net portfolio growth is again hard because we're very kind of opportunities that driven. But I would say, on the margin, payments will increase because of our vintage of '22 and '23 -- and I would say on the margin, I would expect our balance sheet to remain stable and not grow as significantly as it did in the last 18 months. That would be my get look -- we want to lean in environments where there's really, really high risk-adjusted returns. We could agree that with '22, '23 and grow the balance sheet, and not everybody could do that given their access to capital. We did that. And then which will mean that portfolio term will increase on a gross basis. On that basis, the opportunity is that it's going to be marginally less. And so I think that means that our balance sheet will be relatively stable, maybe slightly growing, but it's not going to grow as the ended on a lasting few months.

我認為，在邊際上，我認為投資組合淨成長再次變得困難，因為我們是由機會驅動的。但我想說，從邊際角度來看，由於我們的22 年和23 年年份，付款將會增加——而且我想說，從邊際角度來看，我預計我們的資產負債表將保持穩定，不會像20 世紀那樣大幅成長。這就是我的看法——我們希望依靠風險調整後回報率非常非常高的環境。我們可以同意「22」、「23」並擴大資產負債表，但並不是每個人都能在獲得資本的情況下做到這一點。我們做到了。這將意味著投資組合期限將在總體基礎上增加。在此基礎上，機會會稍微減少。因此，我認為這意味著我們的資產負債表將相對穩定，也許會略有成長，但不會像最後幾個月那樣成長。

And then maybe one more for me on the capital structure. I mean you've been opportunistic in terms of raising both debt and equity. As you -- and you've talked about kind of having prefunded the '24 notes. Do you think about layering in another -- I guess, another round of notes, given how open debt capital markets are today, just giving yourself that much more liquidity or available liquidity as we think about capital structure.

然後也許我還要再講一個關於資本結構的問題。我的意思是，你在籌集債務和股本方面一直是機會主義的。正如您所說，您已經談到了為 24 小時票據預先提供資金。考慮到當今債務資本市場的開放程度，您是否考慮分層 - 我猜，另一輪票據，只是在我們考慮資本結構時為自己提供更多的流動性或可用流動性。

Yes. I think we talked about this a little bit. I think it's a good question. I actually think on the margin we hold 2 months liquidity today. So if you kind of think about -- if you look at the post (inaudible) of the '24 notes. We have about $750 million of liquidity. And we can't give it or the constraints debt-to-equity, which a range of 0.9 to 1.25. We can't really use that liquidity. If you don't think we're growing the net asset value of the business through new equity raises. And so if we were to -- our choices would be to give back unfunded commitments to banks, which I don't think we want to do because that's a low cost of capital if we were to raise more bonds. I just -- I don't see -- we have -- and that liquidity, I think, is very valuable and it's really good insurance but it's limited, given the constraint of our 1.25 debt-to-equity and how our capital looks today.

是的。我想我們已經討論過這個問題了。我認為這是一個好問題。事實上，我認為我們今天持有兩個月的流動性。因此，如果您想一想，如果您查看 24 小時筆記的帖子（聽不清楚）。我們擁有約 7.5 億美元的流動資金。我們不能給出它或債務股本比的限制，其範圍為 0.9 到 1.25。我們無法真正利用這種流動性。如果您認為我們沒有透過新的股權融資來增加企業的資產淨值。因此，如果我們要這樣做，我們的選擇將是向銀行返還無資金支持的承諾，我認為我們不想這樣做，因為如果我們要籌集更多債券，資本成本很低。我只是 - 我不明白 - 我們有 - 我認為流動性非常有價值，它確實是很好的保險，但考慮到我們 1.25 債務股本比的限制以及我們的資本狀況，流動性是有限的今天。

So I don't see us and have an economic cost to shareholders. So I don't see us doing a bond deal unless we think we can grow growth assets, which will require us to grow through an equity raise because we just have a whole into trait that's an economic cost to shareholders.

所以我不認為我們會為股東帶來經濟成本。因此，我不認為我們會進行債券交易，除非我們認為我們可以增加成長型資產，這將要求我們透過股權融資來實現成長，因為我們的整體特徵是股東的經濟成本。

And I'm showing no further questions. I would now like to turn the conference back to Josh for closing remarks.

我沒有再提出任何問題。現在我想請喬希（Josh）發表閉幕詞。

Look, I appreciate the time as people are heading into summer and the weather is turning. I know people get to spend that with their family and enjoy your summer will obviously be back in contact at time for August. Please vote in our shareholder meeting. It's a democratic process as well as those different product processes are really, really important. But thank you for your time, and we're always around to answer questions. And I thought today's questions were really, really good. So thanks for the analyst community for putting in the work.

看，我很欣賞人們即將進入夏季、天氣正在轉變的時光。我知道人們可以和家人一起度過這個夏天，享受夏天，​​顯然他們會在八月的時候恢復聯繫。請在我們的股東大會上投票。這是一個民主的過程，而那些不同的產品過程也非常非常重要。但感謝您抽出寶貴的時間，我們隨時樂意解答您的問題。我認為今天的問題非常非常好。因此，感謝分析師社群所做的工作。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。