Q4 2023 Blue Owl Capital Corp Earnings Call

February 22, 2024

It plays into the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded its now my pleasure to turn the call over to Dana Sclafani head of BDC Investor Relations for <unk>. Please go ahead Dana.

Thank you operator, good morning, everyone and welcome to Blue <unk> Capital Corporation's fourth quarter earnings call. Joining me. This morning are Chief Executive Officer, Craig Packer, and our Chief Financial Officer, and Chief Operating Officer, Jonathan Lamb as well as the Lexus Maggot, our Chief Credit Officer, and Logan Nicholson portfolio manager for Ob D C.

I'd like to remind our listeners that remarks made during today's call may contain forward looking statements, which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's control.

Actual results may differ materially from those in forward looking statements as a result of a number of factors, including those described in <unk> filings with the SEC.

The company assumes no obligation to update any forward looking statements.

Certain information discussed on this call and in our earnings materials, including information related to portfolio companies was derived from third party sources and has not been independently verified the company makes no such representation or warranty with respect to this information.

Oh Bdc's earnings release, 10-K, and supplemental earnings presentation are available on the Investor Relations section of our website at Blue Allo Capital Corporation Dot com with that I'll turn the call over to crack.

Thanks Dana.

Everyone and thank you all for joining us today.

We are very pleased to report another record quarter of earnings with continued excellent credit performance across the portfolio.

Hello, and welcome to the Blue Capital Corp, Q4, and fiscal year 2023 earnings call and webcast. If anyone should require operator assistance. Please press star zero on your telephone keypad, a question and answer session will follow the formal presentation.

Net investment income was 51 per share up <unk> <unk> from last quarter.

Our NII increased in each quarter of 2023, and we generated new record NII for the fourth consecutive quarter.

He replaces the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded its now my pleasure to turn the call over to Dana Sclafani, our head of BDC Investor Relations for blew out well. Please go ahead Dana.

In total we earned $1.93 of NII in 2023.

<unk> 52 cents or 37% year over year.

Our strong results throughout the year or the outcome of our emphasis on great credit selection and a proactive approach to liability management.

Thank you operator, good morning, everyone and welcome to Blue Arrow capital corporations fourth quarter earnings call. Joining me. This morning are Chief Executive Officer, Craig Packer, and our Chief Financial Officer, and Chief Operating Officer, Jonathan Lamb as long as the Lexus magnet, our Chief Credit Officer, and Logan Nicholson portfolio manager for Ob D C.

Results also benefited from the higher rate environment and continued strong economic conditions.

Based on these results our board has approved another <unk> <unk> increase in our base dividend to <unk> 37 per share.

This is our third <unk> increase since the fourth quarter of 2022.

This reflects our strong results to date and incorporates our expectations for the future trajectory of earnings.

Actual results may differ materially from those in forward looking statements as a result of a number of factors, including those described in Ob <unk> filings with the SEC.

And then more normalized rate environment.

In addition for the fourth quarter, our board declared a supplemental dividend of <unk> <unk>.

We instituted the supplemental dividend framework in the third quarter of 2022 to allow shareholders to participate in our earnings upside in a predictable manner and we are pleased to have paid 36 cents per share of supplemental dividends over these last six quarters, while also meaningfully growing.

The company assumes no obligation to update any forward looking statements.

The company makes no such representation or warranty with respect to this information.

Net asset value.

Bdc's earnings release, 10-K, and supplemental earnings presentation are available on the Investor Relations section of our website I blew out capital Corporation.

Going forward, we believe shareholders will continue to benefit from the supplemental dividend framework.

Net asset value per share increased to $15 45 up five from the third quarter. This represents the highest NAV per share since our inception in the second quarter in a row of record net asset value.

With that I'll turn the call over to crack.

Thanks, Dana good morning, everyone and thank you all for joining us today.

We're very pleased to report another record quarter of earnings with continued excellent credit performance across the portfolio.

As a result of strong earnings and continued NAV growth. We earned a record 13, 2% return on equity in the fourth quarter, resulting in an annual ROE of 12, 7% for the full year.

Net investment income was 51 per share up <unk> <unk> from last quarter.

Our NII increased in each quarter of 2023, and we generated new record NII for the fourth consecutive quarter.

This is right in line with the expectations, we set at our Investor day in May.

Looking at our borrowers results, we saw continued resilience across our portfolio of companies throughout 2023.

In total we earned $1 93 sets of NII in 2023.

We came into the year appropriately cautious and prepared for a more challenging economic environment.

52 cents or 37% year over year.

Our strong results throughout the year or the outcome of our emphasis on great credit selection and a proactive approach to liability management.

Over the last 12 months, our borrowers on average delivered low to mid single digit growth in both revenue and EBITDA each quarter.

We were proactive in cutting costs, and raising prices where appropriate to combat inflationary pressure at supply chain challenges. These initiatives contributed to the solid performance. We saw this year.

Results also benefited from the higher rate environment and continued strong economic conditions.

Based on these results our board has approved another two <unk> increase in our base dividend <unk> 37 per share.

Further we believe our borrowers are well positioned coming into 2024.

This is our third two cent increase since the fourth quarter of 2022.

Our largest sectors continued to be software insurance brokerage food and beverage and healthcare all of which serve diversified and durable end markets.

This reflects our strong results to date and incorporates our expectations for the future trajectory of earnings.

The weighted average EBITDA of our portfolio companies is over $200 million and we believe this scale provides strategic benefits and operational stability as many of our borrowers remain market leaders within their sectors.

And then more normalized rate environment.

In addition for the fourth quarter, our board declared a supplemental dividend of eight cents.

Looking forward, while markets are expecting rates to decline short term rates remained elevated and as.

As a result, we remained focused on potential portfolio company challenges.

We believe coverage levels will trough in the first half of 2024 at around one five to one six times interest coverage.

Got you.

Going forward, we believe shareholders will continue to benefit from the supplemental dividend framework.

We continue to have a small list of borrowers who we believe may see challenges in the months ahead, our underwriting and portfolio management teams are closely monitoring these situations and we believe any challenges ultimately will be manageable across our portfolio as a whole.

Net asset value per share increased to $15 45 up five from the third quarter. This represents the highest NAV per share since our inception in the second quarter in a row of record net asset value.

As a result of strong earnings and continued NAV growth, we earned a record 13.2% return on equity in the fourth quarter, resulting in an annual ROE of 12, 7% for the full year.

I would note we had a few borrowers migrate lower in our ratings scale, but overall the names on our watch list remains consistent.

Based on the visibility we have today and the strong positioning of our borrowers we expect that the vast majority of our portfolio companies will maintain solid coverage metrics and adequate liquidity throughout this period.

This is right in line with the expectations, we set at our Investor day in May.

Looking at our borrowers results, we saw continued resilience across our portfolio of companies throughout 2023.

While we added one very small position to nonaccrual in the quarter for a total of four names are nonaccrual rate remains low at one 1% of the fair value of the debt portfolio.

We came into the year appropriately cautious and prepared for a more challenging economic environment.

Over the last 12 months, our borrowers on average delivered low to mid single digit growth in both revenue and EBITDA each quarter.

Overall, a record year in 2023 demonstrates the resilience of our portfolio companies and the strength of our investment and portfolio management process.

With that I'll turn it over to Jonathan to provide more detail on our financial results.

Thanks, Craig.

Further we believe our borrowers are well positioned coming into 2024.

We ended the quarter with total portfolio investments of $12 7 billion outstanding debt of $7 1 billion and total net assets of $6 billion.

Our largest sectors continue to be software insurance brokerage food and beverage and health care, all of which serve diversified and durable end markets.

Our fourth quarter NAV per share was $15 45.

A <unk> <unk> increase from our third quarter NAV per share of $15 40.

Attributable to the continued over earning of our total dividends.

Looking forward, while markets are expecting rates to decline short term rates remain elevated and as a result, we remain focused on potential portfolio company challenges.

In terms of deployment, we continue to largely match originations with repayments to maintain a fully invested portfolio.

Repayments increased this quarter to $1 1 billion, which was matched by $1 billion of new investment fundings.

We believe coverage levels will trough in the first half of 2024 at around 1.5 to 1.6 times interest coverage.

This was a sizable increase compared to the roughly $390 million of repayments, we saw in the third quarter.

And is consistent with our belief that we will see an increase in repayments as the market environment continues to be more favorable for refinancings.

We ended the quarter with net leverage at 1.09 times down slightly from the prior quarter.

I would note we had a few borrowers migrate lower in our ratings scale, but overall the names on our watch list remains consistent.

This is largely reflective of the timing of repayments versus new originations in the quarter.

Turning to the income statement.

We earned a record 51 per share in the fourth quarter up from 49 per share in the prior quarter.

While we added one very small position to nonaccrual in the quarter for a total of four names are nonaccrual rate remains low at one 1% of the fair value of the debt portfolio.

The increase in NII was driven by roughly one 5% quarter over quarter increase of accelerated income driven by a pickup in repayments as well as modest increases in our dividend and interest income.

Overall, a record year in 2023 demonstrates the resilience of our portfolio companies and the strength of our investment and portfolio management process.

For the fourth quarter <unk> per share supplemental dividend will be paid on March 15 to shareholders of record on March one.

With that I'll turn it over to Jonathan to provide more detail on our financial results.

Thanks, Craig.

Reflecting the supplemental in the previously declared 35 regular dividend.

We ended the quarter with total portfolio investments of 12.7 billion outstanding debt of $7 $1 billion in total net assets of $6 billion.

Shareholders will receive total dividends of 43.

Which equates to an annualized dividend yield of over 11% based on our NAV per share for the fourth quarter.

Our fourth quarter NAV per share was $15 at 45 cents.

<unk> increase from our third quarter NAV per share of $15 40.

For the full year 2023, we paid a total of $1 59 per share in dividends an increase of 30.

Attributable to the continued over earning of our tools.

We're roughly 25% from the prior year.

The board also declared a first quarter regular dividend of 37.

Which will be paid on April 15.

To shareholders of record as of March 29.

Pro forma for our new increased regular dividend coverage remains robust at 138%.

We finished the year with 30.

A spillover income as a result of meaningful over earning of our dividends.

Inclusive of our supplemental dividends throughout 2023.

Turning to the balance sheet, we continue to proactively manage our liability structure to maximize returns to our shareholders.

In the fourth quarter, we increased our revolver capacity to $1 9 billion and <unk>.

To maintain a robust liquidity position, which increased to $2 1 billion.

This is well in excess of our unfunded commitments to our portfolio companies.

In January we Opportunistically raised $600 million.

A new five year unsecured notes.

A portion of the proceeds will be used to repay our $400 million unsecured notes that mature in April 2024.

Taken together these actions will modestly improve our overall cost of unsecured financing and increased our increase our total unsecured debt as a percentage of total debt to 61%.

Okay.

We continue to be very focused on maintaining a well ladder liability structure and lowering our financing costs.

The spread on this new issuance represents one of our tightest spreads to treasuries.

Further we were able to swap this new issuance at a rate of <unk>, plus 212 basis points.

Which when taken together with the maturity of the April 2024 notes is accretive to ROE for our shareholders and attractively priced relative to our current secured financing costs.

The BDC bond market continues to deepen and expand with new investors.

We are pleased to see investors recognition of <unk> high quality portfolio and continued performance, which allowed us to drive improved pricing for this issuance even in a higher rate environment.

As we have since inception, we continue to be proactive in addressing our financing needs.

Continuing to deepen our investor base and improve our liability costs.

With that I'll turn it back to Craig for closing comments.

Thanks, Jonathan.

To close I wanted to spend a minute on what we're seeing in the market today and what we expect for 2024.

We continued to see deal activity pick up in the fourth quarter.

As Jonathan noted, we had over $1 billion in both originations and repayments in obesity.

This nearly equates to the total activity we saw in the first three quarters combined.

Across our broader blue al direct lending platform, we deployed over $8 billion in the quarter, the highest quarterly level since 2021.

We continue to believe the scale of our platform is an advantage for obesity as our large origination effort allows us to efficiently match, our repayment and deployment activity each quarter.

In order to maintain a fully invested portfolio and to scale up deployments and quarters for repayment activity is higher.

We closed on several attractive new deals in the fourth quarter, including the $1 billion plus financings for pets at new relic and Iff's envoy all three of which Blue all served as lead arranger and administrative agent on.

We believe our role as administrative agent on these large deals demonstrates the private equity firms confidence in our platform and as importantly positions us to maintain frequent dialogue and to have the greatest influence on credit documentation in terms.

Further we continue to benefit from incumbency across our portfolio with significant add on activity for our current borrowers in the quarter.

As noted earlier repayments stepped up materially in the fourth quarter as we saw a more active market for refinancings and company exits.

We expect repayment activity to continue to revert to these higher more normalized levels, which could generate meaningful repayment income perrot BDC.

Looking forward, we expect to see increased mark to market activity throughout 2024.

Continuing to deepen our investor base and improve our liability costs.

We believe there are substantial pent up desire for private equity firms to return capital to Lps by exiting companies and increased clarity on the rate environment could drive more activity.

With that I'll turn it back to Craig for closing comments.

Thanks, Jonathan.

To close I wanted to spend a minute on what we're seeing in the market today and what we expect for 2024.

That said to date activity in the first quarter has been lighter.

Consistent with the typical seasonality, we see after many issuers seek to transact before year end.

We continued to see deal activity pick up in the fourth quarter.

As Jonathan noted, we had over $1 billion in both originations and repayments in obesity.

Reflecting this dynamic and with strengthening public and private markets, where you're seeing some pressure pressure on spreads across new investment opportunities.

This nearly equates to the total activity we saw in the first three quarters combined.

Across our broader blue our direct lending platform, we deployed over $8 billion in the quarter, the highest quarterly level since 2021.

However, we continue to see larger and larger companies doing direct deals the credit quality of some of the highest we've seen in our history.

And the structures and terms on new deals remain attractive.

We continue to believe the scale of our platform is an advantage for obesity as our large origination effort allows us to efficiently match, our repayment and deployment activity each quarter.

Finally on behalf of the entire <unk> management team.

To reiterate how pleased we are to have delivered another quarter of impressive results.

We are grateful to the investment and portfolio management teams, who continue to assess new opportunities carefully monitor our portfolio companies.

In order to maintain a fully invested portfolio and to scale up deployments and quarters for repayment activity is higher.

We closed on several attractive new deals in the fourth quarter, including the $1 billion plus financings for pets at new relic and Iff's envoy, all three of which Blue al serves as lead arranger and administrative agent on.

The financing team, who continues to optimize our liability structure.

And the entire corporate solutions group, who support the company's complex operations.

As a result of these efforts we delivered a total return of more than 40% to shareholders in 2023.

We once again delivered record NII and a record high NAV per share.

Ultimately, providing a 12, 7% ROE for the year to our shareholders.

We were also pleased to be able to raise our regular dividend, which we believe reflects our continued confidence in the portfolio.

Further we continue to benefit from incumbency across our portfolio with significant add on activity for our current borrowers in the quarter.

We are entering 2024 on strong footing and believe we are well positioned for the year to come.

As noted earlier repayments stepped up materially in the fourth quarter as we saw a more active market for refinancings and company exits.

With that thank you for your time today, and we will now open the line for questions.

Thank you, we'll now be conducting a question and answer session if you'd like a place in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he'd like to remove your question from the queue for participants using speaker equipment may be necessary to pick up your handset before.

We expect repayment activity to continue to revert to these higher more normalized levels, which could generate meaningful repayment income <unk>.

Looking forward, we expect to see increased market market activity throughout 2024.

We believe there are substantial pent up desire for private equity firms to return capital to Lps by exiting companies and increased clarity on the rate environment could drive more activity.

Press Star one one moment, please while we poll for questions.

Our first question is coming from Brian Mckenna from JMP. Your line is now live.

Okay, great. Good morning, everyone and so maybe just a question on credit quality to start.

That said to date activity in the first quarter has been lighter which is consistent with the typical seasonality we see after many issuers seek to transact before year end.

It was clearly in a very strong position today, but could you just provide any details on the one company you added to non accrual during the quarter and then is there any update on the other three companies just in terms of resolving knees and then.

Reflecting this dynamic and with strengthening public and private markets, where you're seeing some pressure pressure on spreads across new investment opportunities.

Rodney can you talk about the size of your portfolio management team today, how much is related head count crown over the last couple of years and then you know where is the team spending a lot of their time today just given.

However, we continue to see larger and larger companies doing direct deals the credit quality of some of the highest we've seen in our history.

The low level.

Non accruals today.

The structures and terms on new deals remain attractive.

Good morning, Brian you sounded like four questions in there.

Finally on behalf of the entire <unk> management team I want to reiterate how pleased we are to have delivered another quarter of impressive results.

Remind me.

First of all.

Look overall.

<unk> really pleased with the credit card credit quality of the portfolio I think it was pretty striking I think back a year ago rates rates as high as they were.

We're grateful to the investment and portfolio management teams, who continue to assess new opportunities carefully monitor our portfolio of companies.

The financing team, who continues to optimize our liability structure and.

Across the space I think there was a lot of concern about how direct lending credit quality will hold up and here, we are more than a year into this higher rate cycle and.

And the entire corporate solutions group, who support the company's complex operations.

As a result of these efforts we delivered a total return of more than 40% to shareholders in 2023.

We're really happy with credit quality across the board I would say the spaces are overall has also been really strong.

Really is a testimony to the quality of the companies that are coming into the direct lending space, which is high as is higher than it's ever been.

We once again delivered record NII and a record high NAV per share.

Ultimately, providing a 12, 7% ROE for the year to our shareholders.

We had a really de minimis position.

We were also pleased to be able to raise our regular dividend, which we believe reflects our continued confidence in the portfolio.

And a company.

Ideal image that was less than $50 million of exposure in Ob DC, we had.

We are entering 2024 on strong footing and believe we are well positioned for the year to come.

Some early small exposures in several.

All other funds.

With that thank you for your time today, and we will now open the line for questions.

And it was a business backed by private equity firms that we do a lot of business with and had some.

Thank you, we'll now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to move your question from the queue for participants using speaker equipment may be necessary to pick up your handset before.

Some operational challenges.

It just is in a position where we.

We felt it was.

Appropriate to put it on nonaccrual and were working through with the borrower and the.

Sponsors.

Our plan going forward.

So it's.

Pressing star one one moment, please while we poll for questions.

It's a credit specific issue.

That business and not reflective of any any greater credit issues.

Our first question is coming from Brian Mckenna from citizens JMP. Your line is now live.

Beyond that the other three names.

Okay, great. Good morning, everyone. So mainly just a question on credit quality to start.

Nothing to report.

In the case.

So it was clearly in a very strong position today, but could you just provide any details on the one company you added to non accrual during the quarter and then is there any update on the other three companies just in terms of resolving knees and then more broadly can you talk about the size of your portfolio management team today, how much is related head count crown over the last couple of years and then you know where is it.

Two of them I guess, one of them we've taken over the business the other two.

Work with the existing <unk>.

Sponsors and all.

I'll just call out one of the named CIBC, because I think it's interesting as a business that nonaccrual roster for several years now was significantly impacted by Covid as a travel oriented business.

He is spending a lot of their time today just given.

And.

The low level.

Non accruals today.

Sponsors that worked really diligently over the last four years to try to rehabilitate the company in light of changing travel.

Good morning, Brian you sounded like four questions in there.

Remind me.

First of all.

Patterns and the like and continue to own the business and support the business and we and the other lenders in the capital structure working with them.

Look overall.

<unk> really pleased with the credit portfolio credit quality of the portfolio I think it was pretty striking think back a year ago rates rates as high as they were.

You can see how that particular position March a very low price.

But.

I will say, we're hoping to do better.

Across the space I think there was a lot of concern about.

But it really is a testimony to.

On the credit quality will hold up and here, we are more than a year into this higher rate cycle.

How are the private equity firms work to avoid giving up the companies and thats very much central to our model.

We're really happy with credit quality across the board I would say the spaces are overall has also been really strong.

I think you asked about resources, we have added significantly to our to our portfolio management and workout resources.

Really is a testimony to the quality of the companies that are coming into the direct lending space, which is as high as it is higher than it's ever been.

Our investment team overall about 115 people Theres, probably about 15 of those 113 that are.

We had a really de minimis position.

Full time portfolio management and workout our approach work out here is some somehow sustainable growth. Some are different we have our existing underwriting team that stays involved in the credits even if they go into work out they know the company is the best.

And a company.

Ideal image that was less than $50 million of exposure in <unk>.

Similarly, small exposures and several other funds.

And it was a business backed by private equity firms that we do a lot of business with and had some.

And we think that connectivity and consistency is very valuable to maximize the recovery.

Some operational challenges.

It just is in a position where we.

Beyond our workout team wishes, which is more than enough size, we really use our whole team. My other firms have a different approach to a little more assertive pushing into the workout group if you will.

We felt it was.

Appropriate to put it on nonaccrual and were working through with our.

Sponsors.

I feel very comfortable that we obviously capacity.

Our plan going forward.

So it's.

There is a business that we took over during COVID-19.

It's a credit specific issue.

That business is not reflective of any any greater credit issues.

It's been restructured we own that business days anymore.

Anymore.

We.

But if you if you walk through the marks of our equity position.

Beyond that the other three names.

Nothing to report.

We'll see as a position, although we took a realized loss way back in 2020, if you take the combined value of our debt and equity in that company today, it's pretty much on top of what our original basis was in the business. When we first made the loan but haven't realized all that yet so I'm not I'm not.

In the case.

Two of them well I guess one of them.

Declaring victory, but I think its headed in a direction, where we'll be able to report at some point that we are already bearing victory.

It's again, a testimony to our ability to have a very long time horizon.

To take all of our business to work with the existing management team or supplement that with new management team.

To play for long term value creation, and I think that's that's core to being a scaled direct lending business that we are part of our value proposition is maximizing recovery.

Hopefully a great case study when we realize it on our ability to do that so Brian I think I got most of it I missed any I'll give you one more shot.

No that's great I appreciate all that color and I'll hop back back into the queue and congrats on another great quarter.

<unk>.

Thank you next question is coming from Casey Alexander from Compass Point. Your line is now live.

Yeah, Hi, good morning, and thank you for taking my questions.

Again everything.

Standard Brian's question sounded like four because everything is sort of interconnected.

Your discussion about some tighter spreads private equity.

Refinancings up private equity one to return money back.

And the fact that you guys work in the upper middle market.

Does that all combined to.

What seems like a little bit of the rejuvenation of the broadly syndicated loan market and is that contributing to some of the tighter spreads that you see in the upper middle market.

Good morning Casey.

I think thats right Greg.

Great work for our rejuvenation.

The.

The bank's willingness to commit to leveraged finance deals is completely a function of.

Theyre being a bid from buyers loans, primarily CLO CLO creation rebounded towards the end of last year and has been quite healthy this year and the strengthening of the syndicated markets is giving the banks confidence.

<unk> committed to deals in the market is quite good and so the banks are willing to commit distribute and the pricing in that market can.

Can be attractive for certain companies.

And so youre seeing I would say a more normalization of the mix of flows.

A normal market environment.

As a fully functioning public market in a fully functioning on private market.

Person team or supplement that with new management team.

The trend has been decidedly towards private market execution and direct lending execution.

To play for long term value creation, and I think thats thats core to being a scaled direct lending business that we are part of our value proposition is maximizing recovery Peel out with you hopefully a rate case study when we realize it on our ability to do that so Brian I think I got most of it I missed any I'll give you one more shot.

<unk>.

That trend.

Has been going on for certainly since the history of our business and our growth is track that trend.

But most normal market environments in most of our existence the public markets have been open.

Yes, no that's great I appreciate all that color and I'll hop back into the queue and congrats on another great quarter. Thank you.

Thanks to the water and the sponsors have been increasingly picking direct but in this environment, they've got choices, they're making those choices and I think that's a healthy market environment.

Thank you. Your next question is coming from Casey Alexander from Compass Point. Your line is now live.

It does contribute to some of the spread compression in the first half of last year pulp markets were shot in snow naturally direct lenders such as ourselves.

Yeah, Hi, good morning, and thank you for taking my questions.

Again everything.

And today markets are open and so there's.

I understand that Bryan's question sounded like four because everything is sort of interconnected.

Theres, a price chart, there and that could contribute to spread compression.

Your discussion about somewhat tighter spreads private equity.

To be to be forthright, I think spread compression also function of a really good economy.

Refinancings up private equity one to return money back.

That ratio will come down and just general health of the markets.

And the fact that you guys work in the upper middle market.

But the private credit has raised capital we have.

Does that all combined to.

Direct lenders are capital and so there is competition.

What seems like a little bit of a rejuvenation of the broadly syndicated loan market and is that contributing to some of the tighter spreads that you see any upper middle market.

So we're on the tight end of the range of spreads that we see in direct lending.

I think it's kind of trough, probably where it is now that is on the tighter end up where things are.

Good morning Casey.

So I think that pendulum.

That's great.

Will swing back and forth I'd like to talk about the secular and cyclical or secular trend is going to continue to be a direct lending there'll be cyclical periods of time, where it skews a little more to the public markets a little more to private markets right now I think it's a pre.

Work for our rejuvenation.

The.

The bank's willingness to commit to leverage stands fuels is completely a function of.

They are being a bit from buyers loans primarily.

Healthy balance.

Fuel creation rebounded towards the end of last year, and it's been quite healthy this year and the strengthening of the syndicated markets is giving the bank confidence.

And so youre seeing some spread tightening.

Okay. Thank you.

That's very helpful. My follow on question is.

To commence deals in the market is quite good and so the banks are willing to commit distribute and the pricing in that market.

Last two quarters, you've raised the base dividend a couple of times in the face of what is generally a consensus that as you mentioned that rates are going to normalize. Some so you got rates going one way and your your base dividend going the other way.

Can be attractive for certain companies.

And so youre seeing I would say a more normalization of the mix of flows.

A normal market environment.

What gives you the confidence that that youre going to be able to.

As a fully functioning public market in a fully functioning on private market.

Maintain and and and cover that adequately as.

The trend has been decidedly towards private market execution and direct lending execution.

As rates come down is it potential growth of the JV or the specialty finance verticals.

<unk>.

That trend has been going on for certainly since the history of our business.

Or is it expanding the leverage ratio somewhat kind of a modest ratio.

Growth is track that trend.

But most normal market environments in most of our existence the public markets have been open.

Now but.

Curious and Holistically, how you mix all of those things together to make sure that the board has confidence to raise the base dividend again.

Thanks to the water and CLC sponsors have been increasingly picking direct but in this environment, they've got choices, they're making those choices and I think that's a healthy market environment.

Sure so.

Thanks.

It does contribute to some of the spread compression in the first half of last year pulp markets were shot naturally direct lenders such as ourselves.

We've tried to be really thoughtful about about about our dividend.

Poland's back to no more than about a year and a half ago. When it was clear rate's gone up and we felt really confident that the portfolio.

The chart more than today pulp markets are open.

There is a price chart, there and that could contribute to spread compression.

For them to generate a really much higher step function higher level of income.

To be to be forthright I think spread compression is also a function of a really good economy.

And we thought about how to how do we what's the right way to share that with shareholders and we introduced this notion of a supplemental dividend.

Susan that rates are going to come down and just general health of the markets.

But the private credit has raised capital we have.

So shareholders, but had a very predictable understanding of how.

Other direct lenders are capital and so theres competition.

Our earnings and higher resort, all rates would flow through to them.

So we're on the tight end of the range of spreads that we've seen in direct lending.

Got that and you've got a lot of great feedback on that I think that mechanism has worked really well and so we had our base.

I think it's kind of trough, probably where it is now that is on the tide around where things are.

Dividend at that time.

So I think that pendulum.

<unk> 30 133 in the supplemental.

We will swing back and forth I like to talk about the secular and cyclical or secular trend is going to continue to be the direct lending there'll be cyclical periods of time, where it skews a little more to the public markets a little more to private markets right now I think.

<unk>.

What's happened since then is raised to stay higher for longer portfolio has gone extremely well and.

We generated record earnings record earnings orders are up and so.

Healthy balance.

What our shareholders have enjoyed is growing supplemental <unk>.

And so youre seeing some spread tightening.

<unk> that was more than adequate adequately covered.

Okay. Thank you.

That's very helpful. My follow on question is.

So we wanted to think hard.

Placement with that success, we wanted to think hard about do we have the balance right and we've looked at.

Last two quarters, you've raised the base dividend a couple of times in the face of what is generally a consensus that as you mentioned that rates are kind of normalized some so you got rates going one way and your your base dividend going the other way.

Our peers and <unk> payout ratios and we've got a lot of work around our portfolio and sensitized as you would expect us to.

As rates drop.

What gives you the confidence that that youre going to be able to.

And making some thoughtful assumptions about credit performance.

Do we do we have cushion.

Maintain and and and cover that adequately as.

To raise the dividend further.

We felt really comfortable that even in a low rate environment, and making some appropriate assumptions around credit quality that we have more than enough cushion to raise the dividend.

As rates come down is it potential growth of the JV or the specialty finance verticals.

Or is it expanding the leverage ratio somewhat kind of a modest ratio.

Additional two cents a share.

Right now but.

So we did that.

Im curious holistically, how you mix all of those things together to make sure that the board has confidence to raise the base dividend again.

Naturally.

It's not this isn't complicated we invest in floating rate assets if rates come down our earnings go down raise well earnings went up every shareholder to understand that.

Sure So I think that.

Fundamentals investing.

We've tried to be really thoughtful about about about our dividend.

<unk> is the only BDC like ours.

But what we would expect over time as rates come down we tend to look at the forward curve, we feel very comfortable will continue to earn our base dividend, but we're putting more of our dividend and the base and the supplemental will be lower if rates come down and I think thats.

One is back to about a year and a half ago. When it was clear rate's gone up and we felt really confident that the portfolio is not only performed it generate a really much higher step function higher level of income.

And we thought about how to how do we what's the right way to share that with shareholders and we are.

Cushing is that something else.

Just put up 51, a share we raised the base 37 cents a share there is plenty of cushion there and so we felt really comfortable so fundamentally answer your question. We looked at it Holistically, we're going to just keep doing exactly what we're doing we feel really confident in our portfolio, we don't need to change any levers.

Is this notion of a supplemental dividend.

So shareholders would have a very predictable understanding of how our.

Our earnings and hirings hurdle rates that flow through to them and we thought that and we got a lot of great feedback on that I think that mechanism has worked really well and so we had our base our base dividend at that time.

We will continue to do what we have said.

Stay in our target leverage range, so I would like to tweak that higher continue to invest in some of our <unk>.

AC $31 33.

Metal.

And.

Specialty finance verticals those are those are accretive, especially in a low rate environment.

Nothing since then as rates stayed higher for longer portfolio has gone extremely well.

Italy continued to deliver great credit performance and we feel good about the new dividend level.

We've generates terrific earnings record earnings for orders are up and so what you what our shareholders would enjoy as growing supplemental.

Thank you.

Yeah.

Thank you. Our next question today is coming from Erik Zwick from Hovde Group. Your line is now live.

And a base that was more than adequate adequately covered.

So we wanted to think hard.

Thanks, Good morning, everyone I wanted to start first with the question on the pipeline and I know in the prepared comments you mentioned that activity had been.

Complacent with that success, we wanted to think hard about do we have the balance right and we looked at.

Our peers in their payout ratios and we did a lot of work around our portfolio.

Seasonally slow to start, but but not out of the range of normal and just curious as you look at the pipeline today, what it looks like in terms of the mix of new versus add on opportunities and weather also youre seeing any.

Sensitized as you would expect us to.

As rates drop.

And making some thoughtful assumptions about credit performance do.

Commonalities and being kind of themes in terms of industries or type of companies that are in the pipeline to look attractive today.

Do we do we'd have cushion to to raise the dividend further.

Sure.

And we felt really comfortable that even in a.

It's a mix new opportunities add ons refinancings.

Low rate environment, and making some appropriate assumptions around credit quality that we have more than enough cushion to raise the dividends.

Thanks.

I would tell you that.

It's my hope.

An additional two cents a share and so we did that.

<unk> expectation.

Naturally.

<unk>.

It's not this isn't complicated we invest in floating rate assets if rates come down our earnings go down rates went up earnings went up every.

This year, we will see significant pickup in new buyouts.

Activity.

Remains moderate and I think that debt.

Shareholders understand that.

But that should pick up given generally a more stable rate environment that economy soft sub losses capital to deploy and there really.

Fundamentals investing.

BDC or suddenly BDC like ours.

But what we would expect over time as if rates come down we tend to look at the forward curve, we feel very comfortable continuing to earn our base dividend but.

How that pivot.

<unk> returned capital to their Lps and that should reflect itself in.

Selling companies resulted in new financings. So I was hopeful we might see that starting in the first quarter seeing some but I wouldn't say, it's lower surgeons, but some point. This year I think we will so it's a it's a healthy mix at some point I think there'll be more skewed to new buyout activity.

More of our dividend and the base and the supplemental will be lower rates come down and I think thats.

Cushing is that supplemental we just put up 51 cents a share we raised the base 30, some cents a share there is plenty of cushion there and so we felt really comfortable so fundamentally answer your question. We looked at it Holistically, we're going to just keep doing exactly what we're doing we feel really confident in our portfolio, we don't need to change.

There are some of those but it's not it's not I wouldn't call. It robust I would say, it's sort of a reasonable environment.

Expect to increase over time.

Any levers we.

We will continue to do what we have said Sam.

Thanks <unk>.

Just looking at the.

They are part of a leverage range. So I would like to sleep at higher continue to invest in some of our <unk>.

Common equity portfolio continues to grow in both dollar terms and as a percentage of total assets. How are you thinking about these investments in terms of the overall concentration and what is your inclination to realize some of the embedded gains in over what potential timeframe.

Specialty finance verticals those are those are accretive, especially in the lower rate environment, but fundamentally just continue to deliver great credit performance.

And we feel good about the new dividend level.

Sure. So look I think that for shareholders that are less familiar with our company.

Thank you.

Sure.

Thank you. Our next question today is coming from Erik Zwick from Hovde Group. Your line is now live.

<unk>.

While technically.

All of those investments are referring to our common equity investments.

Thanks, Good morning, everyone I wanted to start first with the question on the pipeline and I know in the prepared comments you mentioned that activity had been.

The vast majority of them are equity investments.

In specialty finance verticals.

Seasonally slow to start, but but not out of the range of normal and just curious as you look at the pipeline today.

We're essentially their portfolio companies for BDC, where.

Where the underlying assets are pools of typically first lien senior secured loans.

What it looks like in terms of the mix of new versus add on opportunities and whether also you are seeing any.

Commonalities in the kind of themes in terms of industry.

So the credit characteristics of the vast majority of our common equity more than more than half of it is.

An income stream to dividend stream of a diversified.

<unk> portfolio of loans.

Under written by management teams.

And companies with deep expertise in the domain that they are investing in.

So again for those of you renew or examples we inspire our asset based lending business.

<unk>, which is our life insurance settlements business average and was a real real and aircrafts.

Business. These are all essentially the portfolio of companies that have very diverse pools of assets that generate income.

And we are an equity owner, but we are getting an economic very consistent predictable and growing income stream that we think will generate.

Generally double digit Roes.

And we have the building each of these are very sort of patient methodical way and in addition to that income stream. If our teams do a good job. We also have asset and equity investment and asset value will be valuable to us valuable to others as we create enterprise value through our ownership stake in those businesses, we've grown that part of our.

Our portfolio continued to do so but it would be.

It would be sort of off off.

Key to think of that as a common equity investments from an accounting standpoint. It certainly is but from our standpoint, it's really support of assets that generate income to us in that as we invest more we will we will we will earn more <unk>.

No plans to realize on on any of that we do have a much smaller number of either equity co investments.

We have a couple of positions I mentioned, <unk> and they're going to go or we took over a business, but the combination of like what I'll call pure equity.

Like two or 3%, it's really de Minimis.

I think this has been a powerful return generator to build long term income and long term gain for <unk> and we will continue to do so, but I would urge shareholders to send an understanding of and become a way of it really happy with it.

We do our Investor day last year, we did a whole section on this.

All of that is still available on our website. So again if your newer.

So please.

Take a lesson, perhaps email us if you're not sure how to get hold of it honestly I think it will come our way.

But I would hope excited about what we're building and some of these specialty verticals.

That's a helpful explanation and last one for me.

Just looking at slide 13, there was about a $100 million increase in the.

Portfolio companies rated either four or five so I'm wondering if you could just talk a little bit about the recent developments that accompanies that drove the downgrade during the quarter.

Yes.

I alluded to this on the call our.

Our overall ranked percentage right at $3, five which for US is under performance.

Stayed the same but.

But I made a point to point out on the call that we did have an increase mix of those three for us in the four five category.

<unk>.

We don't put out individual ratings of disclosure on each name, but youll note.

We certainly we certainly have the companies on non accrual and so so those one of the movers was it not only the other was one of our more significant marks down list.

This quarter so.

I wouldn't.

What what I would offer you is at this point in the cycle, given where rates are we havent had expected and we mentioned in gallon. This call Ive mentioned it pretty consistently our earnings calls that we would expect to have your credit issues.

Given the magnitude of the rate move.

So couple of downgrades were reflective of credits that have been performing well below expectations combined with higher debt burden.

And pass off to them.

But what I would say is the fact that the three for us.

Grouping has stayed stable essentially that's our watch list because our losses has stayed stable, we're not adding new needs are concerned.

There is really just less than a handful of names that have been a concern for a year and that concern is growing as the.

There are credit problems faster and higher rate environment. So that's what that is I don't want to minimize it.

The areas of customer and by most I'm on with our workout team.

And hope that we can reverse course on couple of these but they are a concern, but youre talking about the overall portfolio one 7% of the portfolio in aggregate. So its a very small pool of a few names that we're going to continue to spend a lot of time on.

I appreciate the answer it's Greg Thanks for taking my questions Hey, great.

Great. Thank you.

Hi.

As a reminder, that star one to be placed in the question queue. Our next question is coming from Paul Johnson with <unk>. Your line is now live.

Yes. Good morning, Thanks for taking my questions.

Kind of looking just at on CN.

The income.

Going forward, obviously, it was a very active quarter for you guys, but.

Slower year.

Overall on a $16 million or so of fee income.

$13 billion portfolio I mean, do you think.

In the relatively near term maybe over this year and there is potential to generate some.

Fairly meaningful fee income there to offset some of the potential.

The client from rate.

Yeah.

This quarter, we had we had $1 billion itself on repayments.

Some a fair amount of.

Prepayment related income as we said.

Some of the driver of the earnings and I think that.

You can certainly expect relative to last year, where there was very muted activity and increase in for some of that fee income to represent.

And offset too.

So the rates depending on those rate moves will it be dollar for dollar.

Certainly we couldnt, we couldnt say, depending on the magnitude of those rate moves, but certainly a pickup in that activity will.

In overall activity will will mute or dampen.

The decline in income from rates.

I hope at some point I talked about a world, where there's real pick up in M&A activity and act in that role that would stand a reason that we would see meaningful pick up in and fees as well as accretion.

So I would expect it to happen this numbers and it's a little bit better this quarter, but it's been sort of a frustratingly low I expect it to happen at some point I don't want to not necessarily saying it will happen first quarter, either but at some point and a much more robust M&A environment it should pick up nicely.

Thanks, and I guess.

The.

The leveraged loan market starts to come back.

Theres more syndicated activity I mean, do you expect to potentially see.

Some of those deals that are in the pipeline today potentially flip over to the liquid markets.

We expect to see again, the public markets are wide open to that.

Something we have to wait and see it's already happened is happening now.

Our pipeline of deals we're looking at the sponsors are.

Activity, making choices about how they want to finance them and today. Despite wide open followed market. They continue to choose direct money for certain deals in the public market for certain deals.

As it has been in that it will be.

Ordinary course decision making.

We I would expect in this environment that we will get repaid from some companies that choose to refinance in the public markets. We've seen a little bit of that I expect will continue to see some of that particularly really high quality companies. Our portfolio has been there for a while and it performed delever.

And you can get a good execution.

I will generate some income from us.

Normal normal circle license, if you will I would expect us to continue to do that so I think it's just a normal a normalized market I think.

AD environment, a year ago, when it wasn't a normal environment everything was going direct.

We bought back.

<unk> cautions you not to assume that will stay that way per hour that was that was not a normal state of affairs as normal state of affairs, and and a healthy one and one that we can continue to have good success originating deals and getting repayments in keeping our portfolio of investments.

Thanks, I appreciate that.

And then.

Public valuations have been surprisingly strong last year and into this year and the growth.

Tech sector, I mean really the broader.

The public markets as a whole.

Yeah, I feel like that's maybe been a little bit contrary to the kind of what's going on in the private markets last year with the adjustment to higher peak rates.

I'm just curious how does that affect the companies in the upper middle market that you are looking at.

Today I mean.

Have you seen this kind of multiple expansion that we've had in the public markets or.

Im just curious to how that effects.

The market that you guys plan.

We.

We continue to see private or private equity firms.

How does tremendous amount of capital.

Tremendous amount of expertise I'm really a tremendous track record.

Many of the opportunities to deploy that capital generate great returns for their Lps private equity is a very.

<unk>.

It's a market that the institutional piece like like quite a bit has significant exposure to and have generated really terrific returns in excess of public markets often on over many many years.

Market, we choose to back we worked really closely with private equity firms.

And.

They are at.

Last year it wasn't quite as robust years, they would all like at some point that will pick up in Brazil.

But I just want to make one <unk>, which is an obvious one but I'll make it anyway. We are at on average lending at 40% loan to value where lenders.

We want to have a lot of equity cushion when I have.

The commitment from the private equity firms and foreign capital resources.

Their role is to ensure our valuation and whether they can get a great return on our role as the quite alone that we feel really confident in the downside scenario, we can get we can get repaid.

I think that part of the reason why you haven't seen as much private M&A resuming.

I think we're being patient so you see some what youre seeing they see the pulp market valuations are high and they are not losses all companies. Once they feel really confident that you can get the valuation that they observe that means everybody six months a year, they're doing that I think that's part of why M&A has slowed down.

But I.

I don't wanted to sound.

Or trying to value, but right now our call. Our problem is making sure. We're back in good companies with significant equity beneath us and that even evaluation comes down meaningfully we're going to be hard and I think that central so our underwriting thesis.

And we don't get distracted by.

Public market valuations that might be a barrel or.

Or even private market valuations some ideas.

Just goes for our downside analysis assume operational results are off value multiple or lower when we get our money back.

And that's that's how we look at.

Got it thanks for that Greg.

My question today.

Congrats on a good quarter.

Thank you next question is coming from Mickey <unk> from Ladenburg Thalmann. Your line is now live.

Yes, good morning, I apologize if my questions already been asked but I'm juggling multiple calls.

Craig.

You mentioned that the BSL market is normalizing.

Im interested in understanding how you see that impacting the spreads that you may be able to capture.

As the year progresses and going into next year.

Sure Mickey.

Did talk about this a bit.

My prepared remarks, I mentioned that we don't see spreads.

It's tightened because of the public markets have been open there are open air normalized normalizing their normal lives.

And so that's a price check that private equity firms to look at.

Generally it's a moderate environment and all the market is not a lot of capital Io market a lot of capital. So you see some spread compression.

<unk>.

Almost all of that has already taken effect.

Have a look at new deals.

I don't think you can go much higher than we are now on the tight end of historical ranges absolute returns on our lending remained very high because.

Current short term rates remain very high.

And so we do a unit tranche at five of yogurt.

Our base rates, we're still earning 11 plus percent.

But we all recognize that.

There's a good likelihood that in two years.

Lower <unk> over time by the way I think market share coming to grips with USAA.

How fast rates will come down and what that will look like.

Maybe there's a bit of a reconsideration, but we're assuming we look at the forward curve. So it's rather tighter level.

They are more on the annoying category than in the <unk>.

The returns work for us, we still get great returns.

And it's more just a baxter werent typical market.

Sponsors and companies picking between private.

Public markets, we continue to get a premium for private solutions and that premium is not only higher spread but.

But essentially.

You guys underwrite at we continue to offer premium, but I always like to remind clients and shareholders.

Got to think about on a relative basis.

You may not be earning as much but all the markets, we're still earning a nice premium and we earned premium in all market environments.

And will the relative premium should stay the same but the absolute return will move around based on market conditions. So hopefully that gives it a little bit of context.

It does I appreciate it thank you very much.

Thank you next question today is coming from Kenneth Lee from RBC capital market. Your line is now live.

Hey, good morning, Thanks for taking my question just to piggyback on the broadly syndicated loan questions.

Do you anticipate any kind of shift in either the sectors youre, focusing on or underwriting or perhaps the types of investments you could be making either within the capital structure of the size just given the normalization of the leveraged loan markets. Thanks.

We're really boring on this.

It's not for lack of a thought on our part.

We really like recession resistant sectors with very predictable earnings and.

Non cyclical parts of the market, we're not trying to time that common cycle, and we track private equity activity and so consistently where we find the best opportunities software insurance brokerage some parts of healthcare food and beverage services businesses distribution businesses. That's.

Our sweet spot.

Our most significant sectors for years, and we continue to see a lot of activity. Our software continues to be the best sector.

Have.

We offset several several funds dedicated software space, but it's the biggest single industry sector for many of our bonds.

Like that a lot.

Not going to deviate from that.

And so I think that should be reassuring to investors.

Seven year loans, even if we thought the economy might be really good for cyclicals for year or two.

We're not we're not willing to underwrite.

Our conditions for seven years, and so we think that that's the right approach so no change.

We lend to a lot of businesses that.

The underlying economic feature is a very predictable and recurring revenue stream.

Defining factor of our underwriting process.

You can find those types of businesses that serve a variety of end markets, depending what they do and that that's really what we seek out.

Yes.

Got you very helpful. There and wanted to.

One follow up if I may.

In terms of the new investments Wonder if you just give a little bit more color in terms of what you've been seeing in terms of terms and documentation on your investments and whether theres been any change just given the current landscape.

Overall terms and protections remained very strong for direct lending.

Underscore there is the protections that we get are significantly better than what's in the public markets.

That's fundamentally what we do we.

They are not only about the business and the returns, but the credit protections given the hour.

Significant exposure to the companies given the liquidity that we have we need to be in a position to protect ourselves.

And the solos.

Loans are simply don't have nearly the same credit for taxes, it's really pretty dramatically different in particular in areas around protecting our collateral.

Cash flow leakage.

And so we just we just get much better taxes fundamental you won't sacrifice that.

Will not.

It's there on the edge there.

Few things that can creep in when markets are as strong as they are now.

We will do selectively if the rest of our.

Credit protections and economics.

Or are appropriate.

I see.

Fundamentally the leverage on the deal on the value of the deals credit agreements are fundamentally consistent what we've been doing last seven or eight years no change you'll read about portability, Texas a couple of pieces that are craft in.

We do those very very small number of circumstances for really really high quality credits and the very reason why it's not reflective of overall market conditions, but you will see a couple of deals done in that matter.

And I think for the right price, we're willing to consider those markets willing to do it but nothing that would sacrifice our credit quality is fundamental.

To us and I feel really good about that for every loan that we do.

If not we won't do it.

Gotcha very helpful. There. Thanks again.

Thank you. Your next question is coming from Nashville Pritchard from true Securities. Your line is now live.

Good morning, I'm, calling in for Mark Hughes.

In the prepared remarks, you mentioned that the net leverage ratio ticked down, which we've seen for the last several quarters is there a specific range you had in mind for 'twenty four 'twenty five as investment activity, presumably starts ramping up.

The range of the same range, we've been at five.

$5 91 a quarter.

<unk>.

This quarter, we added $1 billion origination billing dollars prepayments.

We can't manage that leverage ratio with a scalpel it it's a little bit of just the concept yolo.

On the margin I prefer to be particular to hire.

But but.

But theres nothing deliberate about us trying to tweak it a bit lower I think it's just a function of you.

Hello.

And we.

We will try to optimize a little bit.

Our returns are actual revenue.

Putting up record returns rapid row record NII record apps.

So I think it should be reassuring that we can do all that and have leverage not be we're not stretching to do deals not stretching the max leverage detract lined out returns we can do it very comfortably.

It gives us a little bit of an hour or whatever.

Time to offset if there is a little bit of a rate reduction.

Yes, that's helpful and so you mentioned the industries that you find attractive but are there any particular industries in your portfolio that are having more credit issues than others.

We have very few credit issues. So theres no sectors are having more coverage and others, we have almost none.

I would say overall really consistent across the board low single digit revenue and EBITDA growth.

There was a couple of consumer facing businesses that are having a bit of a struggle. There's a couple of industrial businesses that were benefiting when supply chains.

We are loosening up but maybe maybe they are facing some.

Commodity price pressures or some supply chain challenges. So say every company is doing perfectly well you have a loss list.

But just note the matic.

Sure.

Comments I would make about areas of great weakness and I think that speaks to the broad strength of our portfolio.

Okay got it thank you.

Yeah.

Thank you we reached end of our question and answer session I would like to turn the floor back over to management for any further closing comments.

Thank you so much for everyone for joining we're really pleased with the quarter.

Any other questions.

Please reach out to engage with you and we look forward to seeing you and speaking with you again soon.

Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.

Q4 2023 Blue Owl Capital Corp Earnings Call

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