Q2 2025 Portman Ridge Finance Corp Earnings Call
Speaker #1: Welcome to Portman Ridge Finance Corp's second quarter ended June 30, 2025 earnings conference call. An earnings press release was distributed yesterday, August 7, after market close.
Speaker #1: A copy the release along with an earnings presentation is available on the company's website at www.portmanridge.com. In the investor relations section, and should be reviewed in conjunction with the company's form 10-Q filed yesterday with the SEC.
Speaker #1: 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 risk and uncertainties.
Speaker #1: 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 #1: Portman Ridge Finance Corp assumes no obligation to update any such forward-looking statements unless required by law. Speaking on today's call will be Ted Goldthorpe.
Speaker #1: Chief Executive Officer President and Director of Portman Ridge Finance Corp. 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, Chief Executive Officer of Portman Ridge.
Speaker #1: Please go ahead, Ted.
Speaker #3: Good morning. And welcome to our second quarter 2025 earnings call. I'm joined today by our Chief Financial Officer, Brandon Satoren, and our Chief Investment Officer, Patrick Schafer.
Speaker #3: Following my opening remarks on the company performance and activities during the second quarter, Patrick will provide commentary on our investment portfolio and our markets.
Speaker #3: And Brandon will discuss our operating results and financial condition in greater detail. We continue to advance our strategic priorities in the second quarter generating net investment income of 4.6 million dollars or 50 cents per share compared with 4.3 million dollars or 47 cents per share in the prior quarter.
Speaker #3: Our focus remains on maintaining a high-quality portfolio and delivering long-term value to our areholders. Additionally, the recent completion of our merger with Logan Ridge Finance Corp marks a transformational milestone for the company.
Speaker #3: We are extremely proud to have completed this transaction and look forward to the greater scale and broader portfolio diversification and enhanced financial flexibility it will provide.
Speaker #3: We believe the newly combined company will drive improved operating efficiency and shareholder returns over time. Logan Ridge also delivered strong results for the second quarter generating net investment income of 1.2 million dollars or 47 cents per share up from 0.9 million or 35 cents per share in the first quarter 2025.
Speaker #3: The increase is driven by net deployment activity of 3.8 million dollars during the quarter and continued credit strength with no new investments on non-accrual at quarter end.
Speaker #3: To better reflect this next chapter and the strength of our advisor, we will also be changing our corporate name to BCP Investment Corp with the NASDAQ ticker BCIC in the following weeks.
Speaker #3: The new name highlights our affiliation with BC Partners, a global alternative investment platform with deep credit expertise and reinforces our commitment to building an industry-leading business development company.
Speaker #3: For the second quarter of 2025, the board of directors approved a based distribution of 47 cents share as well as a supplemental cash distribution of 2 cents per share of note, earlier this year we modified our dividend policy and introduced a stable-based distribution of 47 cents per share which is anticipated to be sustainable across market cycles.
Speaker #3: Looking forward, we are excited about the opportunities ahead for the combined company. We will seek to leverage the company's enhanced scale for further diversified portfolio cost savings due to overall operating expenses and improved stock trading liquidity to deliver compelling risk-adjusted returns and drive long-term value for our shareholders.
Speaker #3: We remain confident in our strategy and experience management team as we enter the back half of this year. With that being said, I will turn the call over to Patrick Schafer, our Chief Investment Officer for a review of our estment activity.
Speaker #4: Thanks, Ted. Activity in our core markets was partially constrained for the quarter due to the initial tariff announcements and subsequent revisions to the various levels.
Speaker #4: Having said that, deal volume did pick up meaningfully towards the end of the quarter and thus far during Q3, our pipeline and repayment activity has been fairly active.
Speaker #4: For the first time in a while, there appears to be a healthy mix of new LBO sale processes as well as refinancings and a syndicated markets appear to be open for the very large end of the middle market.
Speaker #4: While this last dynamic has limited direct impact on our franchise, it does point to overall healthy capital markets that should lay the groundwork for increased deal activity in the second half of the year.
Speaker #4: Turning now to slide six of our presentation, and sensitivity of our earnings to interest rates. As of June 30th, 2025, approximately 86.9% of our debt securities portfolio was based on a floating rate with a spread pegged to an interest rate index such as SOFR or prime rate, with substantially all of being linked to SOFR.
Speaker #4: As you can see from the chart, SOFR rates have slightly declined over the last two quarters impacting current quarter net investment income. Skipping down to slide 11, originations for the second quarter were at 10.9 million dollars and repayment and sales were 17.0 million dollars, resulting in net repayment and sales of approximately 6.1 million dollars.
Speaker #4: Overall yield on par value of the new investments during the quarter was 11.5%, slightly above the yield of the overall portfolio at 10.7% on par value.
Speaker #4: Our investment portfolio year-end remains highly diversified. We ended the second quarter with a debt investment portfolio when excluding our investments in COO funds, equities, and joint ventures.
Speaker #4: Spread across 69 different portfolio companies and 25 different industries with an average par balance of 2.6 million dollars. Turning to slide 12, in aggregate, we had six investments on non-accrual status at the end of the second quarter of 2025.
Speaker #4: Representing 2.1 and 4.8% of the company's investment portfolio at fair value and cost respectively. It is worth noting that for a subset of the non-accrual population, the company started during Q2 to recognize interest income on a cash basis, i.e., when cash payments are received.
Speaker #4: This compares to six investments on non-accrual status as of March 31, 2025, representing 2.6% and 4.7% of the company's investment portfolio at fair value and cost, respectively.
Speaker #4: On slide 13, excluding our non-accrual investments, we have an aggregate debt investment portfolio of 314.7 million dollars at fair value, which represents a blended price of 86.6% of par value and is 88.6% comprised of first-in loans at par value.
Speaker #4: Assuming a par recovery, our June 30th, 2025 fair values reflect a potential of 24 million dollars of incremental net value or a 14.6% increase to NAV.
Speaker #4: When applying an illustrative 10% default rate and 70% recovery rate, our debt portfolio would generate an incremental $1.51 per share of NAV or an 8.4% increase as it rotates.
Speaker #4: Finally, turning to slide 14, if you aggregate the last three acquired portfolios, we approached a combined $435 million of investments and have realized approximately 88% of these positions at a combined realized and unrealized mark of 100% of fair value at the time of closing the respective mergers.
Speaker #4: As in Q2 2025, we have fully exited the quired Oakhill portfolio and are down to a combined $20 million of the acquired HCAP and initial KCAP portfolios.
Speaker #4: I'll now turn it over to Brandon to further discuss our financial results for the period. Thanks, Patrick. For the quarter ended June 30, 2025, Portman Ridge generated $12.6 million of investment income.
Speaker #4: An increase of 0.5 million dollars compared to the 12.1 million dollars reported for the quarter ended March 31st, 2025. The increase in estment income from the prior quarter was primarily driven by the reversal of previously accrued but unpaid income from our investment in Sundance, which had a non-recurring negative impact to prior quarter earnings when it was placed on non-accrual.
Speaker #4: Additionally, I'm pleased to report that pick income has declined by approximately 20% quarter over quarter, which was also driven by a non-recurring item that inflated the company's pick income in the prior quarter.
Speaker #4: We remain focused on managing our non-cash income to a prudent level. For the quarter ended June 30th, 2025, total expenses were 8.1 million dollars, which represents a 0.3 million dollar increase or 3 cents per share as compared to 7.8 million dollars reported for prior quarter.
Speaker #4: The increase in expense compared to the prior quarter was driven by lower than anticipated tax expenses in the prior year that benefit of which was recognized in the prior quarter.
Speaker #4: Accordingly, our net investment income for the second quarter of 2025 was 4.6 million dollars or 50 cents per share, which constitutes an increase of 0.3 million dollars or 3 cents per share from 4.3 million dollars or 47 cents per share for the first quarter of 2025.
Speaker #4: Our net asset value as of June 30th, 2025 was 164.7 million dollars. Representing an 8.8 million dollar decrease as compared to the prior quarter net asset value of 173.5 million dollars.
Speaker #4: On a per-share basis, net asset value was 17 dollars and 89 cents per share as of June 30th, 2025, representing a 96 cent per share decrease as compared to 18 dollars and 85 cents per share as of March 31st, 2025.
Speaker #4: The decline in NAV was primarily driven by net realized and change in unrealized losses of 9.1 million dollars partially offset by the company's second quarter net investment income exceeding the distribution paid in May for the first quarter by 0.3 million dollars.
Speaker #4: As of June 30th, 2025, our gross and net leverage ratios were 1.6 times and 1.4 times respectively, compared to 1.5 and 1.3 times respectively in the prior quarter.
Speaker #4: Specifically, as of June 30th, 2025, we had 255.4 million dollars of borrowings outstanding with a current weighted average contractual interest rate of 6%. This compares to the same amount outstanding as of the prior quarter with a weighted average contractual interest rate of 5.9%.
Speaker #4: The company finished the quarter with 52.6 million dollars of available borrowing base capacity under the senior secure revolving credit facility. Subject to borrowing base restrictions.
Speaker #4: With that, I will turn the call back over to Ted.
Speaker #5: Thank you.
Speaker #1: Ahead of questions, I'd like to reemphasize how excited we are for the opportunities the newly combined company will create and our rebranding to BCP Investment Corp.
Speaker #1: Additionally, with a robust pipeline, prudent investment strategy, and increased scale, we believe we are well positioned to take advantage of the current market environment and will be able to deliver strong returns to our shareholders through the second half of 2025.
Speaker #1: Thank you in to all our shareholders for your ongoing support. This concludes our prepared remarks and I'll turn the call over for any questions.
Speaker #2: At this time, if you would like to ask a question, press star then the number one on your telephone keypad. To withdraw your question, simply press star one again.
Speaker #2: We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Christopher Nolan with Lattenberg. Please go ahead.
Speaker #6: Hey, guys. Brandon, were there any non-occurring items in the quarter?
Speaker #4: Outside of the other income that's broken out on the financial statements, there were no material items this quarter.
Speaker #6: Okay. And then, why was interest income higher quarter over quarter despite a smaller portfolio and a slight dip in yields?
Speaker #4: So it was largely driven by the net deployment we had in the prior quarter flowing through the current period.
Speaker #6: Okay. So.
Speaker #4: Yeah. Correct. It's just a ing impact of last quarter. We tended to have some more stuff come on. Sort like second half of February and into March.
Speaker #4: And so we n't get kind of a full quarter impact last quarter.
Speaker #6: I am all down with simple timing issues.
Speaker #4: Yeah. And Chris, we also had the so in the prior quarter, we had the Sundance one-time reversal of previously accrued income by about a half a million dollars.
Speaker #4: That impacted Q1 on an out-of-period basis that I highlighted in my script.
Speaker #6: Great. And then the realized loss is 15 mill. ProAir was 6 mill. What's the rest for?
Speaker #4: So the other half is Anthem, which we restructured this quarter.
Speaker #6: Great. And I guess final, is there a hard date when the trading symbol is going to switch over and name change is going to take effect?
Speaker #4: Not a final date, but it's in the next over the course of the next couple of weeks, we're going to we should have that complete candidly for us to the biggest delay is just building out the new website and whatnot under the new branding.
Speaker #4: But we should have that wrapped up here in the next couple of weeks and we will definitely announce the ticker change and the new website etc.
Speaker #4: at that time. We also didn't want do it in the middle of earnings because it does have some administrative implications when your name as of 6:30 was Portman Ridge.
Speaker #4: And your filing today under a different name.
Speaker #6: Got it. I guess final question is you guys serve are the go-to guys to buy broken BDCs. And given that there's a big maturity wall for the a lot the investment spreads for BDCs are going to be coming in, have you ys seen that more deal activity or shown to you more deals for merging with other BDCs?
Speaker #4: I would say I'll answer that question. I would say deal activity is definitely picked . Our M&A pipeline and things that we're looking at is probably at the highest it's been in a very long time.
Speaker #4: You know, I ink I'm not sure it has to do with the maturity wall. I think it has to do with you know, I think if you just look broadly at's happened across the space, I ink every single day scale becomes more important.
Speaker #4: And you know, I think that's driving a lot of internal conversations at firms about, you know, where they want to focus and where they want to scale.
Speaker #4: So I would say our M&A pipeline, and again, like M&A maybe happens, maybe doesn't, it's in my opinion, it's probably never been higher. So we're spending a lot of time you know at the end of the day, like we want our BDC to be much larger and you know we really benefited from support from a lot of great shareholders to get our merger done.
Speaker #4: And as we've told people, like you ow the hope would be that's the first or a step towards other steps to get to bigger scale.
Speaker #4: And so our pipeline is not just full of traditional BDCs, it's also full of closed-end funds, you know private non-traded BDCs and other type entities.
Speaker #4: So like I would say there's just a you ow there's been a bit of a lot winners and there's been a few winners and a couple of people who are having a hard time scaling and those are beginning to explore partnering with a bigger platform to help grow.
Speaker #4: So sorry, that was a very long answer.
Speaker #6: Yeah. No, no problem at all. I mean, it's all good stuff. I imagine the next steps will be renegotiating the bank revolver and you sort of you know edging towards at some point try to get an investment grade rating for the notes.
Speaker #6: I an, is that?
Speaker #4: Yeah. If ou look at I mean, if you look financing costs across the space, you ow, like the larger platforms, and I'm I'm not just describing BDC, but if ou're associated with a larger platform, there's a material difference in financing costs and you know we're in the cost of capital business and that all drops to the bottom line.
Speaker #4: So and that and obviously in an environment where you know spreads are coming down, you know and there's some there's some you ow headwinds on earnings, you know refinancing your debt at cheap rates, and the market right now is wide open, is is you know very important to driving earnings.
Speaker #6: Yeah. Okay. That's it for me. Thanks.
Speaker #4: Thanks, Chris.
Speaker #2: Your next question comes from the line of Eric Zwick with Lucid Capital Markets. Please go ahead.
Speaker #7: Good morning, everyone. your prepared remarks you sounded, hey, good ning. you sounded fairly optimistic about the, you know, opportunity for originations in the back half of the year noting some, you know, increased, LBO activity, you know, there up in the market.
Speaker #7: Just as you look at the pipeline today, I'm curious, you know, how it kind of breaks down in terms of maybe new and add-on opportunities, and how spreads are today versus maybe a quarter ago or the beginning of the year.
Speaker #4: Yeah. Why don't I go why don't I first? I would say, I mean, we're focused on two things in back half of this year, like what we are seeing a big uptick in refinancing activity.
Speaker #4: And you en't seen it roll through our arnings yet, but you will. and so like the, like our sponsor-based pipeline has increased dramatically over the last two or three months.
Speaker #4: And I'm sure ou've heard that from others. And on top of that, activity levels have picked up too. Like we're getting real realizations. I would say it's a pretty and Patrick can comment too.
Speaker #4: I think it's a pretty healthy mix of, it's been all refis for three years. For the first time, we're actually seeing some true sales.
Speaker #4: and but it's primarily refinancings. I would say spreads in my opinion really haven't come down that much the last quarter. and you know where we target the middle market, our spreads still seem to be, you know, 50 to 75 basis points higher than the very large, deals that are getting done.
Speaker #4: But the, you know, the syndicated markets are white hot right now. You know, deal price this week with no OID at very tight spreads.
Speaker #4: And again, we don't really compete with the indicated markets, but our industry broadly does. And that's obviously placing some pressure on spreads.
Speaker #4: But I would say, you know, you know, the other thing I just mentioned is, you know, we're a very cognitive simpler stock trades. We obviously have been unable to, buy back stock or do other things and, you know, we've we've been out there publicly, as part of this merger, saying that when we're kind of eligible to do it, you know, I think we'll be pretty aggressively buy back stock and not just through normal courseways.
Speaker #4: And I think it's, you ow, when you when you run the math on where spreads are today, versus us buying back stock or tendering for stock, you ow, obviously it makes a lot of sense for us to do consider both.
Speaker #4: So I think I think in the back half this year, you know, I mentioned refinancing activities up. That cash is not going to be just plowed into new lower-spreading loans.
Speaker #4: I think some of that money is going to be used to buy back stock. Yeah.
Speaker #7: Oh, go head, Patrick.
Speaker #4: Tended all the no, they tended all the high points. I just, just to make a couple of of notes there. You know, again, generally speaking, if we're doing kind of a refi type of an opportunity, you tend to get a little bit of a better spread because there is some, you ow, whether whether direct or perceived breakage cost, you know, between finding new lenders, you know, and kind of like dealing with a new credit agreement and a new lending group, etc.
Speaker #4: So, you tend to get a little bit of a premium, or at least a little bit less compression, if you are just kind of refining an existing deal.
Speaker #4: Our franchise, is more, is more weighted towards non-sponsor or non-traditional sponsor. Again, it's a little bit less competitive. You're going to get a little bit of better, you know, ability to kind of price and structure deals.
Speaker #4: So that that also helps, at ast our franchise in terms of kind of, you know, when sort of the the bigger deals and, you know, sponsors are kind of really leaning on lenders to to drive terms.
Speaker #4: you ow, we do get a little bit of insulation and protection from that.
Speaker #7: You know, I appreciate the additional commentary there. and with regard to Ted, your commentary about, you know, fairly strong appetite to to use the buyback, that that was 60 days from the closing.
Speaker #7: So I'd be kind mid-September, like September 15-ish or so when you could potentially get back into the market with the buyback. Is that correct?
Speaker #4: Yeah. So if we were to, so when ou do a merger process, there's a period of time we have to wait like cooling-off period till, you know, to like, you know, the dust settles kind of thing.
Speaker #4: And that takes you right towards the end of the third quarter. And then at that time, ou're running into things like blackouts and stuff.
Speaker #4: So we're ying as hard as we can to try and do something, to might slip a little bit until the blackout finishes. But, okay, but that timing is roughly right.
Speaker #4: It's a ittle later than that, but it's, you're not so far off.
Speaker #7: Got it. Thanks. and one, yeah, congrats on on getting, the deal closed. earlier this quarter, curious, do you have, are you able to share kind of a pro forma NAV, either as the the date that the, transaction closed or or end of July, anything you might have on hand there that you uld are?
Speaker #4: Yeah. Eric, so it's it's about, just north of 235 million dollars.
Speaker #7: Okay. Thanks. And with regard to that, the ments, about the potential, you know, benefit to NAV from the positions that ou currently hold that are, at a discount to par, like the potential for those to convert towards pars, they mature.
Speaker #7: any kind of commentary you could provide in terms of the, you know, potential timeframe? Like, what is the average remaining maturity on on that portion of of the book or just how to think about the, the opportunity and timeframe to to realize those potential benefits?
Speaker #4: Yeah. Eric, this is Patrick. I'll a couple of comments here. was to say it's it's not it's not all just maturity necessarily. We do have a handful of sort of liquid QCIP-type securities, that that do that do move around a bit.
Speaker #4: And so there is some, kind of, you ow, material NAV benefit potential from those names that, you know, frankly, you know, esn't doesn't necessarily take a maturity, to to to work through.
Speaker #4: I would say also kind of practically speaking, you know, over the course of a normal cycle, we give tendency a natural, maturity, duration of kind of about two and a half to three years.
Speaker #4: so that would kind of be like how we sort of look at things like that is is sort over a two and a half, -year period.
Speaker #4: you know, again, those kind of maybe a couple of different different ways to to get at it.
Speaker #7: That's helpful. And last one for me, just looking at the non-accrual book, it seems like there's still a lot of LME activity in space, you know, more limited on the kind of bankruptcy side. But I'm just curious about, as you look at our non-accrual book, the opportunity to potentially either restructure or resolve some of those, and potentially kind of move those back to accrual or maybe, you know, sell.
Speaker #7: How does it kind of the the resolution trajectory look at this point?
Speaker #4: Yeah. I I'd say, you ow, I'd say maybe let's call it like flat to slightly positive. In the sense of, you know, I I do think there are probably a couple of the smaller names on there that are just going to take kind of a very long time to work through.
Speaker #4: One of our bigger names, we kind of alluded to it on the call. but there has been sort of a, I call it a partial restructuring, not not full.
Speaker #4: But such that, you know, we are now, you know, receiving cash interest on the loan. However, kind of given, you know, all the puts and takes, you know, we still don't think it is, you know, we still struggle kind of getting to a full par recovery from, you know, kind of what we think about the business and enterprise value, etc.
Speaker #4: so kind of what we continue leave it on non-accrual. But we are recognizing the cash interest that we receive on the loan not recognizing, you know, any of the pick.
Speaker #4: And you know, I think our our suspicion is is that that situation will continue to improve versus not. and I'd say, you know, the the rest of them are you ow relatively flat to, ou know, I'd say, you ow, kind of increasing as there's other another large position that 've been working with the company on monetizing some non-core assets.
Speaker #4: to generate some kind of kind of paydowns there, which again, doesn't necessarily translate into you know turning that back on non-accrual, but but getting the money back and then redeploying it somewhere else, you know, has the exact same positive benefit.
Speaker #7: Thanks for taking my questions today.
Speaker #2: Your next question comes from the line of Stephen Martin with Slater Capital. Please go ahead.
Speaker #7: Morning, guys.
Speaker #8: Morning, Steve. Most of my questions have been asked and answered. When you look at the pro forma combined portfolio, recognizing that you know we sort of new what was in each, what's the most dramatic change going to be?
Speaker #8: Is it just the the is it the the Logan equity that Portman doesn't have a lot of equity and it'll end up getting diluted?
Speaker #8: You know, what is the nature of the difference in the portfolio going to ok like?
Speaker #4: Yeah. Good good question, Steve. I would say, yeah, very good question. I'll give ou like a a slightly bad answer in the sense of, you know, the reason why this made a lot of sense is the portfolios are you know pretty similar.
Speaker #4: And we have done a very good job of exiting a number of equity positions in Logan Ridge over the last 12 months. So, I would say, yes, I think if you look at the pro forma company, equity will look as a relatively small amount.
Speaker #4: I would say our joint ventures and seal equities will also look as a smaller amount if you kind of if ou're if you're looking at it from a Portman perspective.
Speaker #4: Logan Ridge had sort of less limited to no limited COO equity and less joint venture positions. So, I think when you kind of put it onto the balance sheet for 9/30, and you're looking at it from a Portman perspective, those numbers will be down a little bit.
Speaker #4: as I said, the total and kind of the debt will be will be up a bit as a as a percentage of total. I don't think it's dramatic candidly, but I say, again, if you if you kind of you know from a Portman pective, you know, I think the the mix of pure debt will will, you know, likely go up a ittle bit or or significantly.
Speaker #4: COO equity will go down. Joint venture will go down a little bit. I think the equity will go up a bit, but somewhat negligible.
Speaker #4: so it'll really be a relatively consistent, you know, SOI.
Speaker #7: Got it. Steve, I would just add, you know, that as of 6:30, the ighted average yield was 10.7% at Portman for Logan, it was 10.6% on a combined basis, it's 10.7%.
Speaker #7: But there's a, you ow, pretty material operating expense efficiencies that, you ys will all benefit from. It's going ward as well as, of course, the fee waivers, etc., that we've put in place that'll drive P&L going forward.
Speaker #7: And then over the longer term, we would look to rotate of the equity book. And all of the non-yielding names, that Logan Ridge has, and redeploy those, those proceeds into interest earning assets.
Speaker #7: Yeah. Originating money.
Speaker #8: Since there was a substantial overlap in names over the last two to three years, when you combine them, is there going to be a material difference in the number of different names in the portfolio?
Speaker #4: Again, we can talk about materiality. Probably not. I mean, again, if you're looking at it from a Portman perspective, there's 94, 96 unique borrowers that will maybe go up.
Speaker #4: by 10, to 15, names. so that obviously we are adding diversification. you know, I wouldn't say it is substantial. And I I would also say the names are pretty similar, but but depending on, you know, timing of when we did the individual names, one name might be a slightly higher percentage of Logan versus Portman that will kind of like normalize out when you when you add the two things together.
Speaker #4: You know, candidly, I think the biggest piece from our perspective that will move around when you put the two things together is we'll have a lot more flexibility around where we sort of put the names and the exposures between our different credit facilities.
Speaker #4: And where we can kind of get better borrowing capacity, you ow, again, all of our our different two different credit facilities have different industry concentrations, leverage concentrations, kind of things all that, all all like that.
Speaker #4: So, you ow, the ability for us now under one combined roof to be able to sort of, I'll call it, move around the asset positions within the credit facilities.
Speaker #4: You know, at least from our perspective is where, you know, we'll be able sort of, you know, unlock a lot of value you know from the SOI being put together.
Speaker #7: Got it. One last one. recognizing that you've gotten you would, you know, exited a number of the larger equity positions, any change on that you can talk about on what was left of the Logan Ridge equity?
Speaker #4: No, not a huge change. There are still a couple of small things that we're working on, you know, getting, you know, exiting, and moving around.
Speaker #4: I would say there's ably one or two of the of the larger ones, that are still sort of, you know, trying to work through their own processes.
Speaker #4: You know, we we don't have a lot of control in those in those instances. So we obviously kind of like push and prod, you ow, where we can.
Speaker #4: but I would say, you ow, there I I would not say that there is anything you know logical on the horizon, but but having said that, like for sure, the the macro environment and where kind of LBO environment, we think is trending over over the next, you know, six months, you know, I wouldn't be surprised if if if we, you know, see a bunch of ings that we're not expecting, you ow, smaller positions, but but, you know, volume-wise, you know, see more things that 're not expecting actually get get monetized and realized.
Speaker #7: Okay. Thanks a lot, guys.
Speaker #4: Thanks, Steve.
Speaker #2: That concludes our estion and answer session. I will now turn the call back over to Ted Goldthorpe for closing remarks.
Speaker #8: Thank you all for attending the call. As always, please reach out to us with any questions, which we're happy to discuss. We look forward to speaking to you in in November when we announce the third quarter of 2025 results.
Speaker #8: And I wish everybody a great end to their summer. Thank you so much.