Q2 2024 Logan Ridge Finance Corp Earnings Call
Speaker Change: Thank you.
Operator: Cooperation's second quarter and a June 30, 2024, earnings conference call. An earnings press release was distributed yesterday, August 8th, after the close of the market. A copy of the release, along with the supplemental earnings presentation, is available on the company's website at www.loganridgefinance.com in the Investor Resources section and should be reviewed in conjunction with the company's Form 10-Q filed with the SEC.
Speaker Change: Good morning, and welcome to Logan Ridge Finance Corporation's second quarter and a June 30, 2024, earnings conference call. An earnings press release was distributed yesterday, August 8.
Speaker Change: after the call, or forgive me, after the close of the market.
Speaker Change: A copy of the release along with the supplemental earnings presentation is available on the company's website at www.loganrichfinance.com in the Investor Resources section and should be reviewed in conjunction with the company's Form 10-Q filed with the SEC.
Operator: And as a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements, which 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 in the company's filings with the SEC.
Speaker Change: As a reminder, this conference call is being recorded for replay purposes.
Speaker Change: Please note that today's conference call may contain forward-looking statements which are not guarantees of future performance or results and involve a number of risks and uncertainties.
Speaker Change: Actual results may differ materially from those in the forward-looking statements as a result of a number of factors including those described in the company's filings with the SEC.
Operator: Seeking today's call will be Ted Goldthorpe, Chief Executive Officer, President, and Director of Logan Ridge Finance Corporation; Brandon Satoren, Chief Financial Officer, and Patrick Schafer, Chief Investment Officer. With that, I would now like to turn the call over to Ted Goldthorpe. Ted, please go ahead.
Speaker Change: Speaking today's call will be Ted Goldthorpe, Chief Executive Officer, President and Director of Logan Ridge Finance Corporation.
Speaker Change: chief financial officer, and Patrick Schafer, chief investment officer. With that, I'd now like to turn the call over to Ted Goldthorpe, chief executive officer of Logan Ridge Finance Corporation. Please go ahead, Ted.
Ted Goldthorpe: Good morning. Welcome to our second quarter 2024 earnings call. As mentioned, I am joined today by our Chief Financial Officer, Brandon Satoren, and our Chief Investment Officer, Patrick Schafer. Following my opening remarks, Patrick will provide additional details on our investment activity to date, and Brandon will walk through our financials. Before Patrick and Brandon provide more details on our portfolio and financials, I would like to discuss a few key highlights from the quarter.
Speaker Change: Good morning. Welcome to our second quarter 2024 earnings call. As mentioned, I am joined today by our Chief Financial Officer, Brandon Satoren, and our Chief Investment Officer, Patrick Schafer.
Speaker Change: Following my opening remarks, Patrick will provide additional details on our investment activity to date, and Brandon will walk through our financials.
Speaker Change: Before Patrick and Brandon provide more details on our portfolio and financials, I would like to discuss a few key highlights from the quarter.
Ted Goldthorpe: During the second quarter, we continued to make progress towards our strategy of reducing the company's exposure to the legacy equity portfolio and increasing the exposure to credits originated by the BC Partners credit platform. The benefits of this strategy resulted in a steady increase in our total investment income quarter over quarter. Second quarter, total investment income increased by $400,000 to $5.4 million from $5.0 million the previous quarter, and by $100,000 as compared to the same quarter last year.
Speaker Change: During the second quarter, we continue to make progress towards our strategy of reducing the company's exposure to the legacy equity portfolio and increase the exposure to credits originated by the BC Partners Credit Platform.
Speaker Change: The benefits of such strategy resulted in a steady increase in our total investment income quarter over quarter.
Speaker Change: Second quarter, total investment income increased by $400,000 to $5.4 million, $5.0 million the previous quarter, and by $100,000 as compared to the same quarter last year.
Ted Goldthorpe: Additionally, the underlying credit performance of our portfolio has remained strong, with no new investments being placed on non-approval status during the quarter. Furthermore, the strength of the company's financial position and the outlook on the long-term earnings power of the portfolio allowed the company to declare a third-quarter distribution of 33 cents per share. The dividend has almost doubled compared to the $0.18 per share distribution we declared in the first quarter of 2023 when we reintroduced our quarterly dividend, highlighting the company's successful turnaround story since we took over management back in July of 2021.
Speaker Change: Additionally, the underlying credit performance of our portfolio has remained strong with no new investments being placed on non-accrual status during the quarter.
Speaker Change: Furthermore, the strength of the company's financial position and the outlook for the long-term earnings power of the portfolio has allowed the company to declare a third quarter distribution of $0.33 per share.
Speaker Change: The dividend has almost doubled compared to the $0.18 per share distribution we declared in the first quarter of 2023 when we reintroduced in our quarterly dividend, highlighting the company's successful turnaround and story since we took over management back in July of 2021.
Ted Goldthorpe: Looking forward to the second half of 2024, we continue to see attractive opportunities in our portfolio and in our pipeline to deploy our available capital. New deal activity has picked up pace, and the syndicated markets have continued to remain open.
Speaker Change: Looking forward to the second half of 2024. We continue to see attractive opportunities in our portfolio.
Speaker Change: in our pipeline to deploy our available capital. New deal activity has picked up pace and the syndicated markets have continued to remain open. Aborers have continued to rely heavily on private capital providers for M&A activity, given the certainty they provide, resulting in tailwinds for our industry.
Ted Goldthorpe: Aborers have continued to rely heavily on private capital providers for M&A activity given the certainty they provide, resulting in tailwinds for our industry. Having said that, the combination of continued private credit capital raising and a more competitive syndicated market alternative has led to meaningful spread compression in certain parts of the private credit market. According to KBRE-DLD private data, private credit spreads for borrowers greater than $100 million of EBITDA and those between $50 and $100 million of EBITDA have both declined by approximately 75 basis points since the beginning of the year.
Speaker Change: Having said that, combination of continued private credit capital raising and a more competitive syndicated market alternative has led to meaningful spread compression in certain parts of the private credit market.
Ted Goldthorpe: That is compared to spread compression of approximately 50 basis points for our borrowers between 20 and 50 million in EBITDA and just over 25 basis points for borrowers with less than 20 million in EBITDA. We remain focused on increasing shareholder value through the diligent deployment of capital, continued rotation out of the legacy investment portfolio, and by leveraging and maximizing the earnings power of the company's balance sheet. With that, I will turn the call over to Patrick Schafer, our Chief Investment Officer. Thanks, chat is below, everyone.
Speaker Change: According to KBRE-DLD private data, private credit spreads for borrowers greater than 100 million of EBITDA and those between 50 and 100 million dollars of EBITDA have both declined by approximately 75 basis points since the beginning of the year.
Speaker Change: That is compared to spread compression of approximately 50 basis points for our borrowers between $20 and $59 a divot dot, and just over 25 basis points for borrowers with less than $20 a divot dot.
Speaker Change: We remain focused on increasing shareholder value through the diligent deployment of capital, continued rotation out of legacy investment portfolio, and by leveraging and maximizing the earnings power of the company's balance sheet. With that, I'll turn the call over to Patrick Schafer, our Chief Investment Officer.
Patrick Schafer: As of June 30, 2024, the fair value of Logan's portfolio was approximately $195.6 million, exposure to 61 portfolios. This compares the 62 portfolio companies with a fair value of approximately $200.1 million as of the prior quarter, and 62 portfolio companies with a fair value of $206.6 million as of June 30, 2020. During the quarter ended June 30, 2024, while our pipeline of new opportunities remains strong, we continue to be prudent and judicious on the deployment front, specifically coming off of a strong quarter of net deployments during the first quarter of 2021.
Patrick Schafer: Thanks, chat in the below, everyone.
Patrick Schafer: As of June 30, 2024, the fair value of Logan's portfolio was approximately $195.6 million with exposure to 61 portfolio companies.
Patrick Schafer: This compares the 62 portfolio companies with a fair value of approximately $200.1 million as of the prior quarter, and 62 portfolio companies with a fair value of $206.6 million as of June 30, 2023.
Patrick Schafer: During the quarter ended June 30th, 2024, while our pipeline of new opportunities remains strong, we continue to be prudent and judicious on the deployment front.
Patrick Schafer: Specifically, coming off of a strong quarter of net deployments during the first quarter of 2021. In the second quarter, we deployed approximately $1.5 million in new and existing investments, at approximately $5.6 million in repayments and sales, resulting in net repayments and sales of approximately $4.1 million for the quarter.
Patrick Schafer: In the second quarter, we deployed approximately $1.5 million in new and existing investments at approximately $5.6 million in repayments and sales, resulting in net repayments and sales of approximately $4.1 million for the quarter. Regarding portfolio composition, as of June 30, 2024, 59.4% of the company's investment portfolio, at fair value, was invested in assets originated by the BC Partners Credit Plan. As of June 30, 2024, our debt investment portfolio represented 80% of the total portfolio at fair value, with a weighted average annualized yield of approximately 11.4%, excluding income for non-accruals and collateralized loan applications.
Patrick Schafer: Regarding portfolio composition, as of June 30, 2024, 59.4% of the company's investment portfolio, at fair value, was invested in assets originated by the BC Partners Credit Platform.
Patrick Schafer: As of June 30, 2024, our debt investment portfolio represented 80% of the total portfolio at fair value, with a weighted average annualized yield of approximately 11.4%, excluding income for non-accruals and collateralized loan applications.
Patrick Schafer: This compares to a debt investment portfolio, which represented 80.8% of our total portfolio at fair value, with a weighted average annualized yield of approximately 11.4%, excluding income from non-accruals and collateralized loan obligations, as of the prior report, and 82.2%, with a weighted average annualized yield of approximately 10.8%, as of June 30th, 2000. Notably, while the weighted average annual ideal excluding income from non-approvals and collateralized loan obligations remained unchanged from the prior quarter, it increased by 60 basis points as compared to the prior year. As of June 30th, 2024.
Patrick Schafer: This compares to a debt investment portfolio, which represented 80.8% of our total portfolio at fair value, with a weighted average annualized yield of approximately 11.4%, excluding income from nonaccruals and collateralized loan obligations, as of the prior report.
Speaker Change: and 82.2% with a weighted average annualized yield of approximately 10.8% as of June 30th, 2023.
Speaker Change: Notably, while the weighted average annualized yield, excluding income from non-accruals and collateralized loan obligations, remained unchanged from the prior quarter, it increased by 60 basis points as compared to the prior year.
Patrick Schafer: 88.1% of our debt investment portfolio at fair value, with interest at a floating rate compared to 88.5% as of March 31, 2024, and 83.2% as of June 30, 2020. As of June 30, 2024, Frisley's debt represented 65.8% and 64% of our portfolio at cost and fair value, respectively. This compares to FirstLincoln debt representing 66.5% and 65.2% of our total portfolio on a cost and fair value basis, respectively, as of March 31, 2024.
Speaker Change: As of June 30, 2024, 88.1% of our debt investment portfolio had fair value, with bearing interest at a floating rate compared to 88.5% as of March 31, 2024, and 83.2% as of June 30, 2023.
Speaker Change: As of June 30, 2024, Frisley's debt represented 65.8% and 64% of our portfolio at cost and fair value respectively.
Speaker Change: This compares to person death represented, 66.5%.
Speaker Change: and 65.2% of our total portfolio.
Speaker Change: on a cost and fair value basis as of March 31st, 2024.
Speaker Change: and 66.1% and 66.8% of our total portfolio on a cost and fair value basis respectively as of June 30, 2023.
Patrick Schafer: The equity portfolio represents 15.2% and 19.0% of the portfolio on a cost and fair value basis, respectively, as of June 30, 2021. This compares to 15.2% and 18.2% of the total portfolio on a cost and fair value basis as of March 31st, 2021. Moving on to Nautical, as of June 30th, 2024, the company had four debt investments across three portfolio companies on non-accrual status with an aggregate amortized cost and fair value of $17.2 million and $10.1 million, respectively, or 8.5% and 5.2% of the investment portfolio at cost and fair value respectively.
Speaker Change: The equity portfolio represents 15.2% and 19.0% of the portfolio on a cost and fair value basis respectively as of June 30th, 2024.
Speaker Change: This compares the 15.2% and 18.2% of the total portfolio on a cost and fair value basis as of March 31st, 2020.
Speaker Change: Moving on to non-accrual status.
Speaker Change: and the June 30th, 2024.
Speaker Change: The company had four debt investments.
Speaker Change: across three portfolio companies on non-accrual status with an aggregate amortized cost and fair value 17.2 million and 10.1 million, respectively, or 8.5% and 5.2% of the investment portfolio at cost and fair value, respectively.
Patrick Schafer: This remains unchanged from the first quarter, which had four debt investments across three portfolio companies, with a cost and fair value of $17.2 million and $10.6 million, respectively, or 8.3% and 5.3% of the investment portfolio's cost and fair value, respectively.
Speaker Change: This remains unchanged from the first quarter, which had four debt investments across three portfolio companies.
Speaker Change: with a cost and fair value of $17.2 million and $10.6 million, respectively, or 8.3% and 5.3% of the investment portfolio's cost and fair value, respectively.
Brandon Satoren: And I'll turn the call over to Brandon.
Brandon Satoren: Thanks Patrick. Now, turning to our financial results for the quarter ended June 30th, 2024. When the border ended June 30, 2024, Logan generated $5.4 million of investment income, an increase of $0.4 million as compared to $5 million for the prior quarter. Total operating expenses for the second quarter increased by approximately $0.6 million to $4.6 million as compared to $4 million for the prior quarter. This was largely due to $0.3 million, or $0.10 per share, of certain non-recurring incremental professional fees and other expenses incurred in the quarter, as well as higher financing costs primarily as a result of higher average outskipping.
Speaker Change: And I'll turn the call over to Brandon.
Brandon Satoren: Thanks, Patrick. Turning to our financial results for the quarter ended June 30, 2024.
Brandon Satoren: For the quarter ended June 30, 2024, Logan generated $5.4 million of investment income, an increase of $0.4 million as compared to $5 million for the prior quarter.
Speaker Change: Total operating expenses for the second quarter increased by approximately $0.6 million to $4.6 million as compared to $4 million for the prior quarter.
Speaker Change: This was largely due to $0.3 million, or $0.10 per share, of certain non-recurring incremental professional fees and other expenses incurred in the quarter, as well as higher financing costs, primarily as a result of higher average outstanding debt.
Brandon Satoren: Our net investment income for the second quarter was $0.8 million or $0.28 cents per share, a decrease of $0.1 million from $0.9 million or $0.35 cents per share in the first quarter of 2024. Again, the decrease from the prior quarter was largely due to not occurring incremental professional fees during the quarter. Our net asset value as of June 30, 2024 was $88.7 million, representing a $1.5 million decrease as compared to the prior quarter net asset value of $90.2 million.
Speaker Change: Our net investment income for the second quarter was $0.8 million or $0.28 cents per share, a decrease of $0.1 million from $0.9 million, or $0.35 cents per share, in the first quarter of 2024.
Speaker Change: Again, the decrease from the prior quarter was largely due to not occurring incremental professional fees during the quarter.
Speaker Change: Our net asset value as of June 30th, 2024 was $88.7 million, representing a $1.5 million dollar decrease as compared to the prior quarter net asset value of $90.2 million.
Speaker Change: On a per share basis, Net Asset Value was $33.13 per share as of the second quarter, representing a $0.58 per share decrease as compared to $33.71.
Brandon Satoren: On a per share basis, net asset value was $33.13 per share as of the second quarter, representing a $0.58 per share decrease as compared to $33.71. The decrease in net asset value quarter-over-quarter was driven by net realized and unrealized losses on the portfolio of $1.3 million, as well as the company's quarterly dividend payment exceeding the company's net investment income by $0.1 million. Finally, at quarter end, the company had $4.3 million in cash and cash equivalents, as well as $21.9 million of unused borrowing capacity available for deployment in investments originated by the BC Partners Credit Platform. With that, I will turn the call back over to Jeff. Thank you, Brandon.
Speaker Change: as of March 31st, 2024.
Speaker Change: The decrease in net asset value quarter over quarter was driven by net realized and unrealized losses on the portfolio of $1.3 million, as well as the company's quarterly dividend payment exceeding the company's net investment income by $0.1 million.
Speaker Change: Finally, as a quarter-end, the company had $4.3 million in cash and cash equivalents, as well as $21.9 million of unused borrowing capacity available for deployment in investments originated by the BC Partners Credit Platform. With that, I will turn the call back over to Jack.
Ted Goldthorpe: Before we go to Q&A, I just want to say to our shareholders a big thank you for your continued support. This concludes our prepared remarks, and I'll now turn over the call to the operator for any questions.
Jack: Thank you, Brandon.
Jack: Before we go to Q&A, I just want to say to our shareholders a big thank you for your continued support. This concludes our prepared remarks and I'll now turn over the call to the operator for any questions.
Operator: As a reminder, if you'd like to ask a question, please press star and the number 1 on your telephone keypad. We'll pause for just a moment to compile the roster. And with that, we'll begin the question and answer session. Our first question comes from the line of Christopher Nolan from Lattinburg, Tallman.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question, please press star and the number 1 on your telephone keypad.
Speaker Change: We'll pause for just a moment to compile the roster.
Speaker Change: Thank you for watching!
Speaker Change: With that, we'll begin the question-and-answer session.
Speaker Change: Our first question comes from the line of Christopher Nola from Lattinburg, Tallman.
Christopher Nolan: The line is open. Hey guys, any sherry purchases in the quarter?
Christopher Nola: Hey guys, any sherry purchases in the quarter?
Ted Goldthorpe: Chris and Unfortunately, not unfortunately, we've been blacked out of time during the quarter, but we'll look to get that up and running as soon as we can.
Speaker Change: Chris, unfortunately not. We've been blacked out during the quarter, but we'll look to get that up and running as soon as we can, hopefully within the next couple weeks here.
Ted Goldthorpe: in the next couple of weeks. Sounds good. And then also, Strategically, I mean, aren't the stars beginning to align for a merger between Logan Ridge and the other BDC you run, given, you know, it looks like, you know, the thing is profitable, Logan Ridge is not profitable, no, dividend-paying, but the valuation discrepancy on a price-to-book basis between the two entities is still quite significant.
Christopher Nola: Sounds good. And then also...
Speaker Change: Strategically, I mean...
Speaker Change: Aren't the stars beginning to align for a merger between Logan Ridge and the other BDC you run, given, you know, it looks like, you know, the thing's profitable, Logan Ridge is not profitable, no, dividend paying, but the valuation discrepancy on a price-to-book basis between the two.
Speaker Change: entities is still quite significant.
Ted Goldthorpe: Yeah, thanks for asking that question. I mean, you know, it is something that we are obviously thinking about. And I'd also say, naturally, our portfolios are becoming more and more alike between both Logan and Portman, so I think your comment is pretty spot on. Hey, nice quarter. Thanks, guys.
Speaker Change: Yeah, thanks for asking that question. I mean, it is something that we are obviously thinking about. And I'd also say...
Speaker Change: Naturally, our portfolios are becoming more and more alike between both Logan and Portman, so I think your comment is pretty spot on.
Christopher Nolan: Okay, nice quarter, thanks guys.
Speaker Change: Okay, nice quarter. Thanks, guys.
Operator: Again, if you'd like to ask a question, please press star and the number 1 on your telephone keypad. Our next question comes from the line of Stephen Martin of Slater Capital Management. London's right again, guys.
Speaker Change: Thank you.
Speaker Change: Again, if you'd like to ask a question, please press star and the number 1 on your telephone keypad.
Speaker Change: Our next question comes from the line of Stephen Martin of Slater Capital Management.
Stephen Martin: Hi again, guys.
Speaker Change: All right.
Steven Martin: Thank you. Two questions, category: You had an unrealized loss.
Speaker Change: Back to the unrealized category, you had an unrealized loss.
Stephen Martin: Was it something specific, was it across the portfolio,
Patrick Schafer: It's generally speaking, one name is the bulk of it. American Clinical Solutions, the company has had a bit of a challenging year as sort of they are a cannabis and hemp testing business based in Florida. And the year has been a little bit challenging as Florida is working towards recreational legalization this year during the election. So a lot of companies are sort of pulling back on spending in this area as they kind of wait to see where everything shakes out with recreation.
Speaker Change: Yeah, it's generally speaking, one name is the bulk of it, American Clinical Solutions. The company has had like a bit of a challenging year as sort of they are a
Speaker Change: cannabis and hemp testing business based in Florida and the year has been a little bit challenging as Florida is working towards recreational legalization this year during the election so a lot of companies are sort of pulling back on
Speaker Change: , and I think we generally expect there to ultimately be a bounce back once the election kind of goes through and from everything we've understood.
Patrick Schafer: So, you know, I think we generally expect there to ultimately be a bounce back once the election kind of goes through and from everything we've understood. We think Recreation should pass, which is a huge benefit to the company, but even putting that aside, just kind of having it more... A more settled environment will help them, you know, and their customers sort of consistently spend. So that's kind of like the biggest one, and then there's the others.
Speaker Change: We think recreation should pass, which is a huge benefit to the company, but even putting that aside, just kind of having it more...
Speaker Change: A more settled environment will help them, you know, and their customers sort of more consistently spend.
Speaker Change: So that's kind of like the biggest one, and then the second one is a company called Avanti. It's a broadly syndicated loan, and that loan moved down a handful of points, and that was the driver. Again, we think that's mark-to-market as opposed to anything that's credit-driven.
Steven Martin: Gotcha. Um, The major topic, as always, is the equity portfolio, other than some slight changes in valuation, and the degree keeps improving. It doesn't look like there was any change in positions.
Speaker Change: Thank you.
Speaker Change: It doesn't look like there was any change in positions.
Patrick Schafer: No, it's just generally right. So, again, as we've kind of mentioned a couple of different times, I do think the M&A market in general over the course of the year will ultimately be a benefit for us here within Logan, as there are, you know, there are a number of portfolio companies that, you know, hopefully will be looking to exit themselves. So we're optimistic that sort of the market environment will be fairly conducive.
Speaker Change: No, that's generally right. So, again, as we've kind of mentioned a couple of different times,
Speaker Change: I do think the M&A market in general over the course of this year
Speaker Change: will ultimately be a benefit for us here within Logan as there are we know there are a number of portfolio companies
Speaker Change: that, you know, hopefully will be looking to exit themselves.
Speaker Change: So we're optimistic that sort of the market environment will be fairly conducive, fairly conducive. We did have one small exit.
Speaker Change: US Bio, where again, kind of similar to our playbook in a lot of other situations, we actually went directly to the
Speaker Change: directly to the owners and tried to get negotiated and I did it. It was a relatively small.
Speaker Change: number, I want to say it was about 500 grand or something. And we had it marked at 350, 400 grand, something like that.
Speaker Change: So that was relatively small, but again, kind of thematically, just given where the macro is right now, you know, we're able to sort of engage in those types of transactions where the last probably 18 to 24 months.
Speaker Change: It's been difficult to engage with owners of the company for things like that. So we are optimistic that.
Speaker Change: You know, we're on the, you know...
Speaker Change: You know, we're able to transact in a couple different of our equity portfolio companies and, you know, hopefully we can get those done by the end of the year.
Steven Martin: Yeah, there are only a couple that really matter. There are a whole bunch of little ones. And most of them, you know, having done some research on the bigger positions, most of them have been around for a while. I mean, they're not young, flashy transactions.
Speaker Change: Yeah, there are only a couple that really matter, there are a whole bunch of little ones and most of the, you know, having done some research on the bigger positions, most of them have been around for a while. I mean, they're not young transactions.
Patrick Schafer: No, that's right. You know, again, just going down the list of our largest ones, M3, which, obviously, is the largest that was acquired in 2019. So, again, just kind of think about a private equity schedule, you know, that's, you know, you're coming up on sort of five years of the whole period. And it's, as you can tell from our valuations, it's generally grown pretty nicely. So, and, you know, and the other largest one, which I think is Pergaflex, also, again, we've been in the name for quite some time, and it's been owned by the same sponsor for quite some time. So, yeah, you would likely think, from a whole period perspective, those folks would kind of be at the point where they probably would be monetizing their portfolios.
Speaker Change: No, that's right. You know, again, just going down the list of our of our largest ones
Speaker Change: and the degree with which I've seen is the largest.
Speaker Change: That was acquired in 2019. So again, you just got to think about a private equity schedule.
Speaker Change: you know, that's, you know, you're coming up on sort of five years of a whole period. And it's, as you can tell from our evaluations, it's generally grown pretty, pretty nicely. So, and, you know, and the other largest one, which I think is Pergaflex.
Speaker Change: Also, again, we've been in the name for quite some time, and it's been owned by the same sponsor for quite some time. So, yeah, you would likely think from a whole period perspective, those folks would kind of be at the point where they probably would be monetizing their portfolios.
Steven Martin: Yeah, just as a question, You know, having looked at it, I guess it's Gladstone who it is.
Speaker Change: Yeah, just as a question, you know, having looked at, I guess it's Gladstone, who is the other nth degree holder, they have their equity marked substantially higher than yours.
Speaker Change: And it looks like it moved up again this quarter. Can you comment on, you know, when I say substantially, it's 20-25% higher than what you have the same shares marked.
Patrick Schafer: Yeah, I think they actually marked their prices down this quarter, but it is still...
Speaker Change: Yeah, I think they actually marked their down this quarter, but it is still...
Speaker Change: you know, meaningfully higher than ours. I'll get the numbers a little bit wrong, but I think they're at like $2.99 a share and we're at $2.59 or something like that. But yeah, again, I think, you know, hopefully
Speaker Change: From our perspective, you know, we are relatively small owner Gladstone is a larger owner and you know, perhaps they have
Speaker Change: better information than we do, but we like to try and keep our equity evaluations at a pretty conservative mark until, you know, we have something real to substantiate from a valuation perspective.
Steven Martin: All right, thanks a lot. And, as the previous caller, I would urge you to get back on the share buyback route.
Speaker Change: Of course.
Speaker Change: Thank you, Steve.
Operator: Thank you. Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to Ted Goldthorpe for his closing remarks.
Speaker Change: Thank you.
Speaker Change: Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to Ted Goldthorpe for closing remarks.
Ted Goldthorpe: Thank you everyone for joining us today, and we look forward to speaking to you again in November. We will announce our third quarter of 2024 results. Hope everybody has a great end of the summer, and please reach out to us with any questions. Thanks.
Ted Goldthorpe: Thank you everyone for joining us today, and we look forward to speaking to you again in November when we announce our third quarter 2024 results. Hope everybody has a great end of the summer and please reach out to us with any questions. Thanks.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.
Speaker Change: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Patrick Schafer: We did have one small exit U.S. bio where, again, kind of similar to our playbook and a lot of other situations, we actually went directly to the owners and tried to negotiate, and I did it. It was a relatively small number; I want to say it was about 500 grand or something, and we had a market, 354 grand, something like that. So that was relatively small, but again, kind of thematically, just given where MAPRO is right now, you know, we're able to sort of engage in those types of transactions where, for the last probably 18 to 24 months, it's been difficult to engage with owners of the company for things like that.
Patrick Schafer: So we are optimistic that at You know, we're on the... You know, we're able to transact in a couple of different equity portfolio companies. And, you know, hopefully, we can get those done by the end of the year.