Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Saratoga Investment Corp's 2024 fiscal first quarter financial results conference call. Please note that today's call is being recorded. During today's presentation, all parties will be in a listen-only mode. Following management's prepared remarks, we will open the line for questions. At this time, I would like to turn the call over to Saratoga Investment Corp's Chief Financial and Chief Compliance Officer, Mr. Henri Steenkamp. Please, sir, please go ahead. Thank you. I would like to welcome everyone to Saratoga Investment Corp.'s 2024 fiscal first quarter earnings conference call. Today's conference call includes forward-looking statements and projections. We ask you to refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these forward-looking statements and projections. We do not undertake to update our forward-looking statements unless required to do so by law. Today, we will be referencing a presentation during our call. You can find our fiscal first quarter 2024 shareholder presentation in the Events and Presentation section of our Investor Relations website. A link to our IR page is in the earnings press release distributed last night. A replay of this conference call will also be available. Please refer to our earnings press release for details. I would now like to turn the call over to our Chairman and Chief Executive Officer, Christian Oberbeck, who will be making a few introductory remarks. Thank you, Henri, and welcome everyone. Saratoga's 10% and 104% increases in adjusted net investment income per share as compared to last quarter and last year's first quarter, respectively, outpaced our recent and significant dividend increases and reflects growth in AUM and margin improvement from rising rates on our largely floating rate assets, in contrast to the largely fixed rates paid on our financing liabilities. Higher and rising interest rates and a general contraction of available credit are producing higher margins on our portfolio, and importantly, an abundant flow of attractive investment opportunities from high-quality sponsors at increasingly improving pricing, terms, and absolute rates. We believe Saratoga continues to be well positioned for potential future economic opportunities and challenges. Saratoga's credit structure, with largely interest-only, covenant-free, long-duration debt, incorporating maturities primarily 2-10 years out, positions us well, particularly well, for a rising and potentially higher for longer interest rate environment, coupled with market volatility. Most importantly, at the foundation of our performance is the high-quality nature and resilience of our approximately $1.1 billion portfolio, marked down just 0.9% overall. Our core BDC portfolio, excluding our CLO and JV, is up 1.3% versus cost, reflecting the strength of our underwriting and our solid, growing portfolio companies and sponsors in well-selected industry segments. This quarter's unrealized depreciation of $16.3 million reflects the interest rate, market, and economic volatility in the current environment across our diverse assets, including both our core and broadly syndicated loan portfolios, with approximately 2/3 of the markdown in this BSL, or broadly syndicated loans, space. As an example of the volatility in our markets, the unrealized reported losses in the BSL portfolio would be nearly one-third recovered if that portfolio were marked as of today. Our portfolio strength is further manifested in our many key performance indicators this past quarter, including, first, following sequential quarterly adjusted NII per share increases of 33% in Q3 and 27% in Q4, adjusted NII increased another 10% in Q1, almost doubling from $0.58 to $1.08 per share over the last three quarters. Second, current assets under management grew to approximately $1.1 billion. Third, dividend increases to $0.70 per share, up 32% from $0.53 per share in Q1 last year, up 1.4% from $0.69 per share last quarter, over-earned by 54% as compared to this quarter's $1.08 per share adjusted NII. Fourth, $77.5 million in long-term, fixed-rate, callable capital recently raised in volatile markets to support record growth while maintaining our BBB+ investment grade rating. While being increasingly discerning in terms of new commitments in the current environment, this quarter demonstrates our robust pipeline. We originated seven new portfolio company investments in this fiscal quarter and 20 follow-on investments in existing portfolio companies we know well with strong business models and balance sheets. Originations this quarter totaled $140 million, with $11 million of repayments and amortization. Our credit quality for this quarter remained high at 96.5% of credits rated in our highest category, with still only one credit on nonaccrual. With 85% of our investments at quarter end in First Lien debt and generally supported by strong enterprise values and balance sheets in industries that have historically performed well in stress situations, we believe our portfolio and leverage is well structured for future economic conditions and uncertainty. Saratoga's annualized first quarter dividend of $0.70 per share and adjusted net investment income of $1.08 per share imply a 10.2% dividend yield and a 15.7% earnings yield based on its recent stock price of $27.43 per share on July 7th, 2023. The overearning of the dividend by $0.38 this quarter, or $1.52 annualized per share, increases NAV, supports the increased dividend level and growth, and provides a cushion against adverse events. To summarize the past quarter on slide two. First, we continued to strengthen our financial foundation this quarter, as indicated by our strong Q1 portfolio performance and credit quality, both this quarter and life to date since Saratoga took over the management of the BDC. Second, our assets under management increased to approximately $1.1 billion this quarter, a record level. Third, in volatile economic conditions, such as we are currently experiencing, balance sheet strength, liquidity, and NAV preservation remain paramount for us. Our capital structure at year-end was strong. $337.5 million of mark-to-market equity, supporting $571 million of long-term, covenant-free, non-SBIC debt, $202 million of long-term, covenant-free SBIC debentures, and $35 million of long-term revolving borrowings. Our total committed undrawn lending and discretionary funding facilities outstanding to existing portfolio companies are $143 million, with $84 million committed and $59 million discretionary. Our debt maturity schedule ranges primarily from 2-10 years out, providing a solid credit structure at a fixed cost and with favorable terms, positioning us well for both a rising rate environment or should overall economic challenges arise. At quarter end, we had $231 million of investment capacity available to support our portfolio companies, with $148 million available through our newly approved SBIC III fund, $30 million from our expanded revolving facility, and $53 million in cash. Based on our overall performance and liquidity, the board of directors most recently declared quarterly dividend of $0.70 per share, which was paid on June 29th, 2023, was our largest quarterly dividend ever. Saratoga Investment's first quarter demonstrated strong performance in our key performance indicators as compared to the quarters ended May 31st, 2022, and February 28th, 2023. Our adjusted NII is $12.8 million this quarter, up 101% from last year and up 11% from last quarter. Our adjusted NII per share was $1.08 this quarter, up 104% from $0.53 last year and up 10% from $0.98 last quarter. Latest 12 months return on equity is 7.2%, up from 6.9% last year and unchanged from 7.2% last quarter, beating the industry average of 1.5%. Our NII per share is $28.48, down 0.7% from $28.69 last year and down 2.4% from $29.18 last quarter, substantially ahead of the latest 12 months industry average of negative 7.3%. Henri will provide more detail later. As you can see on slide three, our assets under management have steadily and consistently risen since we took over the BDC almost 13 years ago. The quality of our credits remains high, with only one credit on non-accrual, the same as last quarter. Our management team is working diligently to continue this positive trend as we deploy our available capital into our growing pipeline, while at the same time being appropriately cautious in this volatile and evolving credit environment. With that, I would like to now turn the call back over to Henri to review our financial results, as well as the composition and performance of our portfolio. Thank you, Chris. Slide four highlights our key performance metrics for the fiscal first quarter ended May 31, 2023, most of which Chris already highlighted. Of note, across the three quarters shown on the slide, weighted average common shares outstanding were relatively unchanged, per share numbers are comparable. Adjusted NII increased significantly this quarter, up 85.4% from last year and up 7.2% from last quarter, primarily from, first, the impact of higher interest rates, both base rates and spreads, with a weighted average current coupon on non-CLO BDC investments increasing from 8.5% to 12.7% year-over-year, from 12.1% last quarter. Second, average non-CLO BDC assets increasing by 22.2% year-over-year by 5.7% since last quarter. Third, other income this quarter, including both the structuring and advisory fees generated from the higher level of Q1 originations, as well as a $1.8 million dividend received from the Saratoga Joint Venture. This was partially offset by increased Base and Incentive Management Fees generated from higher AUM and earnings, and increased interest expense resulting from the various new notes and SBA Debentures issued during the past quarter and year. Adjusted NII yield was 15.0%. This yield is up from 13.6% last quarter and 7.3% last year. Total expenses this quarter, excluding interest and debt financing expenses, Base Management and Incentive Fees, and income and excise taxes, increased from $2.0 million to $2.3 million as compared to last year's Q1 and remained unchanged from Q4. This represented 0.8% of average total assets on an annualized basis, down from 0.9% at Q1 last year, and unchanged from last quarter. We have again added the KPI Slides 27-30 in the appendix at the end of the presentation, that shows our income statement and balance sheet metrics for the past nine quarters, and the upward trends we have maintained, including a 52% increase in net interest margin over the past year. Moving on to Slide five, NAV was $337.5 million as of this quarter end, a $9.5 million decrease from last quarter, and a $7.7 million decrease from the same quarter last year. This quarter, the main drivers were $16 million of net investment income, offset by $16.3 million of net realized and unrealized losses, and $8.2 million of dividends declared. In addition, during Q1, $1.1 million of stock dividend distributions were made through the company's DRIP plan, offset by $2.2 million of shares repurchased at an average price of $24.36. This chart also includes our historical NAV per share, which highlights how this important metric has increased 16 of the past 21 quarters. Over the long term, our net asset value has steadily increased since 2011, and this growth has been accretive, as demonstrated by the consistent increase in NAV per share. We continue to benefit from our history of consistent, realized, and unrealized gains. On Slide six, you will see a simple reconciliation of the major changes in adjusted NII and NAV per share on a sequential quarterly basis. Starting at the top, the primary driver of the $0.10 increase in adjusted NII is the $0.15 increase in non-CLO net interest income. While on the lower half of the slide, NAV per share decreased by $0.70, primarily due to the $0.69 dividend recognized in the quarter, with GAAP NII and unrealized depreciation, basically offsetting each other. Slide nine outlines the dry powder available to us as of quarter end, which totaled $231.2 million. This was spread between our available cash, undrawn SBA Debentures, and undrawn secured credit facility. This quarter end level of available liquidity allows us to grow our assets by an additional 21% without the need for external financing, with $53 million of pro forma quarter end cash available, and thus fully accretive to NII when deployed, and $148 million of available SBA Debentures with its low-cost pricing, also very accretive. We remain pleased with our available liquidity and leverage position, including our access to diverse sources of both public and private liquidity, and especially taking into account the overall conservative nature of our balance sheet. The fact that almost all our debt is long-term in nature, with almost no non-SBIC debt maturing within the next two years. Importantly, that almost all our debt is fixed rate in this rising rate environment. Our debt is structured in such a way that we have no BDC covenants that can be stressed, and with available call options in the next two years on the debt with higher coupons, important during such volatile times. I would like to move on to Slides eight through 12 and review the composition and yield of our investment portfolio. Slide eight highlights that we now have $1.1 billion of AUM at fair value, and this is invested in 56 portfolio companies, up by seven from last quarter, one CLO fund and one joint venture. Our First Lien percentage is 85% of total investments, of which 29% is in First Lien Last Out positions. On Slide nine, you can see how the yield on our core BDC assets, excluding our CLO, has changed over time, especially this past year. This quarter, our core BDC yield is up another 60 basis points to 12.7%. The full impact of the rising rate environment through today is still not yet fully reflected in our earnings, as you will see on the next slide. The CLO yield decreased further to 6.5% from 7.4% last quarter, reflecting current market performance. The CLO is performing and current. Slide 10 shows how at the end of Q1, the average three-month SOFR used in our portfolio was 498 basis points, versus at quarter end, when three-month SOFR closed at 529 basis points, and versus today at approximately 528 basis points. Despite the small decrease recently, with 99% of our interest earning assets using variable rates, earnings will continue to benefit from these higher rate levels in Q2 and Q3, while all but $35 million of our borrowing is fixed rate and will not be impacted by these increases in base rates. There is uncertainty about the future of rates, we stand to continue to gain as rates rise. That said, there will be a lag in the effect this dynamic has on our earnings due to timing of rate resets and invoicing terms. Slide 11 shows how our investments are diversified through the U.S. On Slide 12, you can see the industry breadth and diversity that our portfolio represents, spread over 42 distinct industries, in addition to our investments in the CLO and JV, which are included as structured finance securities. Of our total investment portfolio, 8.9% consists of equity interests, which remain an important part of our overall investment strategy. For the past 11 fiscal years, we had a combined $81.6 million of net realized gains from the sale of equity interest, or sale or early redemption of other investments. This consistent realized gain performance highlights our portfolio credit quality, has helped grow our NAV, and is reflected in our healthy long-term ROE. That concludes my financial and portfolio review. I will now turn the call over to Michael Grisius, our Chief Investment Officer, for an overview of the investment market. Thank you, Henri. I'll take a few minutes to describe our perspective on the current state of the market, then comment on our current portfolio performance and investment strategy. Not too much has changed since our recent update in May. For the most part, lenders are staying cautious, though competition for premium quality credits persists. Liquidity continues to remain abundant after the large-scale fundraisings of last year, lenders, and especially banks, remain more risk sensitive, backing off historically volatile sectors and taking a harder stance on the use of capital. Lenders are requiring greater equity capitalizations regardless of the enterprise multiple, in some cases, have reduced their pace of deployment as well as their hold positions. All these factors are positive for us as we have been seeing more attractive opportunities come our way and have a very actionable deal pipeline. Leverage levels appear to have come down at the margin, but remain full for strong credits. Absolute yields continue to grow, with SOFR increasing another approximately 30 basis points during our first fiscal quarter and have remained there. The spread widening we have been experiencing in recent quarters appears to have stabilized, and for highly desirable credits, we have seen some lenders offer tighter spreads to win mandates. Lenders in our market remain wary of thinly capitalized deals, and for the most part, are staying disciplined in terms of minimum aggregate base levels of equity and requiring reasonable covenants, particularly given the concerns around potential economic recession. The Saratoga management team has successfully managed through a number of credit cycles, and that experience has made us particularly aware of the importance of, first, being disciplined when making investment decisions, and second, being proactive in managing our portfolio. We're keeping a very watchful eye on how continued inflationary pressures and labor costs, supply chain issues, rising rates, and slowing growth could affect both prospective and existing portfolio companies. A natural focus currently is on supporting our existing portfolio companies through follow-ons. Our underwriting bar remains high as usual, yet we continue to find opportunities to deploy capital. First half of calendar year 2023 was a very strong deployment environment for us. Follow-on investments in existing borrowers with strong business models and balance sheets continued to be a healthy avenue of capital deployment, as demonstrated with 39 follow-ons so far this calendar 2023, including delayed draws. In addition, we have invested in nine new platform investments this past calendar year and in another eight new investment platforms so far this year. Portfolio management continues to be critically important, and we remain actively engaged with our portfolio companies and in close contact with our management teams, especially in this volatile environment. All of our loans in our portfolio are paying according to their payment terms, except for our Nolan investment that remains on nonaccrual. As we have moved to PIK interest for a period of time, Nolan is our only nonaccrual investment across our portfolio. After recognizing the unrealized depreciation on our overall portfolio this quarter, Saratoga's overall assets are now slightly less than 1% below cost basis, with our core non-CLO portfolio 1.3% above cost. We believe our strong performance reflects certain attributes of our portfolio that bolster its overall durability. 85% of our portfolio is in First Lien debt and generally supported by strong enterprise values in industries that have historically performed well in stress situations. We have no direct energy or commodities exposure. In addition, the majority of our portfolio is comprised of businesses that produce a high degree of recurring revenue and have historically demonstrated strong revenue retention. Our approach has always been to stay focused on the quality of our underwriting, and as you can see on slide 14, this approach has resulted in our portfolio performance being at the top of the BDC space with respect to net realized gains as a percentage of portfolio at cost. We are one of only 14 BDCs that have had a positive number over the past three years, currently fifth overall. Our internal credit quality rating reflects the impact of current market volatility and shows 96.5% of our portfolio at our highest credit rating as of quarter end. Part of our investment strategy is to selectively co-invest in the equity of our portfolio companies when we're given that opportunity and when we believe the equity upside potential. This equity co-investment strategy has not only served as yield protection for our overall portfolio, but also meaningfully augmented our overall portfolio returns, as demonstrated on this slide and the previous one, and we intend to continue this strategy. Looking at leverage on slide 15, you can see that industry debt multiples have come down this year from their historically high levels. Total leverage for our overall portfolio is 4.9x, excluding Nolan and Pepper Palace, while the industry is now around 5x leverage. In addition, this slide illustrates the strength of our deal flow and our consistent ability to generate new investments over the long term, despite ever-changing and increasingly competitive market dynamics. During the second calendar quarter, we added another four new portfolio companies and made 20 follow-on investments. Despite the success we're having investing in highly attractive businesses and growing our portfolio and the increased deal flow we are seeing, it is important to emphasize that, as always, we're not aiming to grow simply for growth's sake. In the face of this uncertain macro environment, we're keenly focused on investing in durable businesses with limited exposure to inflationary and cyclical pressures. Our capital deployment bar is always high and is conditioned upon healthy confidence that each Incremental Investment will be accretive to our shareholders. Slide 16 provides more data on our deal flow, previously discussed, demonstrating how our team's skill set, experience, and relationships continue to mature, and our significant focus on business development has led to multiple new strategic relationships that have become sources of new deals. What is especially pleasing to us is seven of the 13 new portfolio companies over the past 12 months are from newly formed relationships, reflecting notable progress as we expand our business development efforts. The significant progress we've made in building broader and deeper relationships in the marketplace is noteworthy because it strengthens the dependability of our deal flow and reinforces our ability to remain highly selective as we rigorously screen opportunities to execute on the best investments. As you can see on Slide 17, our overall portfolio credit quality remains solid. The gross unleveraged IRR on realized investments made by the Saratoga Investment Management team is 15.6% on $908 million of realizations. On the chart on the right, you can see the total gross unlevered IRR on our $1.1 billion of combined weighted SBIC and BDC unrealized investments is 11%. As of this quarter, we continued to have two yellow-rated investments, still only being Nolan Group and Pepper Palace investments. Nolan has been yellow for a while now since COVID, being more dependent on in-person business interaction, and has been on non-accrual status since last year. There was no significant change to the market Q1. The current unrealized depreciation reflects the current performance of the company, but does not change our view of the fundamental long-term prospects for the business. The other yellow investment is Pepper Palace. In this quarter, there was an additional $1.1 million unrealized write-down to the mark, leaving the total depreciation of approximately $11 million since investment on our First Lien Term Loan and Equity Investments. This markdown reflects the current performance of the company, but they continue to pay interest. We are working closely with the company and the sponsor as they work to improve performance. This quarter's $16.3 million net unrealized depreciation can be divided into three primary buckets. First, $11 million of unrealized depreciation on the company's CLO and JV Equity Investments, reflecting both the volatility in the broadly syndicated loan markets as of quarter end, as well as the reduction in value of certain defaulted assets in the CLO portfolio. Second, $3.3 million of unrealized appreciation on the company's Netreo Equity Investment, reflecting increased company leverage, reducing the investment's total net unrealized appreciation to $5 million. Third, approximately $2 million of net unrealized appreciation across the remainder of the portfolio, most of which reflects current market spreads. Our overall investment approach has yielded exceptional realized returns and recovery of our invested capital. Moving on to Slide 18, you can see our first and second SBIC licenses are fully funded and employed with $3.5 million and $6.5 million of cash available for distributions to the BDC in SBIC I and SBIC II, respectively. We are currently ramping up our new SBIC III license with $19 million of cash and $148 million of lower-cost, undrawn debentures available, allowing us to continue to support U.S. small businesses. This concludes my review of the market, and I'd like to turn the call back over to our CEO. Chris? Thank you, Mike. As outlined on slide 19, our latest dividend of $0.70 per share for the quarter ended May 31st, 2023, was paid on June 29th, 2023. This is the largest quarterly dividend in our history and reflects a 59% and 32% increase over the past two years and latest 12 months, respectively. The board of directors will continue to evaluate the dividend level at least a quarterly basis, considering both the company and general economic factors, including the near-term impact of rising base rates and increased spreads on our earnings. Recognizing the divergence of opinions on the future direction of interest rate levels and overall economic performance, Saratoga's Q1 overearning of its dividend by 53% or $1.08 versus $0.70 per share this quarter, provides substantial cushion should economic conditions deteriorate or base rates decline. Moving on to slide 20. Our total return for the last 12 months, which includes both capital appreciation and dividends, has generated total returns of 30%, outperforming the BDC index of 18% for that same period. Our longer-term performance is outlined on our next slide, 21. Our three and five-year returns place us in the top quartile of all BDCs for both time horizons. Over the past three years, our 113% return exceeded the average index return of 61%, while over the past five years, our 67% return more than doubled the index's average of 30%. Since Saratoga took over the management of the BDC in 2010, our total return has been 695% versus the industry's 197%. On slide 22, you can further see our performance placed in the context of the broader industry and specific to certain key performance metrics. We continue to focus on our long-term metrics, such as return on equity, NAV per share, NII yield, and dividend growth, which reflects the growing value our shareholders are receiving. While NAV per share decreased 2.4% this quarter, we are only down 0.7% year-over-year, while the BDC industry is down 7.3%. We continue to be one of the few BDCs that have grown NAV over the long term, and we have done it accretively by also growing NAV per share 16 of the last 21 quarters. Our latest 12 months return on equity of 7.2% significantly beats the industry's 1.5% average. Moving on to slide 23. All of our initiatives discussed on this call are designed to make Saratoga Investment a leading BDC that is attractive to the capital markets community. We believe that our differentiated performance characteristics outlined on this slide will help drive the size and quality of our investor base, including adding more institutions. These differentiating characteristics, most of which have been previously discussed, include the maintaining of one of the highest levels of management ownership in the industry at 14%, ensuring we are aligned with our shareholders. Looking ahead on slide 24, we remain confident that our reputation, experienced management team, historically strong underwriting standards, and time and market-tested investment strategy will serve us well in navigating through the challenges and uncovering opportunities in the current and future environment. That our balance sheet, capital structure, and liquidity will benefit Saratoga shareholders in the near and long term. In closing, I would again like to thank all of our shareholders for their ongoing support. I would like to now open the call for questions. Thank you. To ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by. We'll compile the Q&A roster. One moment for our first question. Our first question comes from the line of Mickey Schleien from Ladenburg. Your line is open. Yes, good morning. A couple questions today. The $1.8 million of dividend income from the Senior Loan Fund implies over a 40% ROE on your equity investment in that fund at cost, which is obviously really high. I'd like to understand what drove that dividend and what is your target ROE on that investment? Well, Henri, if you'd like to. Yeah, Mickey, yeah, you're right. Let me start with what drove the dividend. Obviously, as you know, our joint venture owns a CLO investment. Therefore, the returns are driven by the equity distributions that were received by the CLO into the joint venture. The joint venture dividended out some of the return to its partners, of which, you know, is us and one other partner in a joint venture structure. The accounting is that's dividend income, that was our, you know, our first dividend that we've received on that investment. I, you know, I'm trying to think how best to think of this as a future return. It's obviously a really strong return. We definitely do think of the joint venture return as more similar to our CLO in general, which is, you know, high teen digits or higher. Okay. Henri, was there some sort of a catch-up in the quarter, given that it was the first distribution? That dividend represented a three-month period, so no real specific catch up. You know, you'll always see that, you know, the first waterfall distribution, you know, is quite a fulsome distribution. Right. Okay. My follow-up question is, you know, I see that the portfolio's leverage has increased by almost 1 full turn over the last year, to almost 5x, as Mike described. So I'd like to ask how your portfolio companies are doing in terms of their revenues and EBITDA. You know, is it declines in EBITDA that's driving that increase, or is it the market terms that's driving the increase, or a little bit of both? Good morning, Mickey. This is Mike. It's a good question. It is not underperformance that's driving the increase in leverage. It's really reflecting some of the newer portfolio companies that we feel really good about, that have a bit higher leverage profile. And then in terms of the overall portfolio performance, the vast majority of our portfolio is performing very well, and we're watching it very carefully. At this juncture, the vast majority of our portfolio is up quarter-over-quarter and up at the same quarter-over-last-year. Mike, just to follow up, you know, is the more recent investment activity into perhaps larger companies than you've historically done, which may include higher leverage multiples? Well, it's less about size, and I think it's more about durability of the portfolio company. We always say this, right? When we're looking at the lower end of the middle market, we're seeking companies that have, you know, kind of large company characteristics, i.e., you know. Yeah ... lots of durability, really strong management teams, et cetera. For instance, if you do a, support, and I'll just use an example, a business that's in the franchising space. It's a franchisor, not a franchisee. It may not be a terribly big business, you know, it's not a worldwide name, but it can be a business that has, you know, hundreds of locations, very successful, real durable cash flow stream, et cetera. That would be a business that would typically command, you know, a more fulsome leverage, just reflective of the much lower risk profile and the lower volatility that is associated with that business. In business models like that, which we seek out, you know, having a lot of those characteristics, we're okay with a bit higher leverage profile, and most of the increase in leverage is reflective of some of that activity. That includes, you know, your focus on software deals, right? Where leverage tends to be higher than average, or am I mistaken? It would include that for the ones that are underwritten on an EBITDA basis for the same reasons. Yeah. Um, but- Yeah it would also include some of the other, you know, business models that we invest in as well. I understand. Those are all my questions this morning. Thank you for your time. Thanks, Mickey. Thank you. One moment for our next question. Our next question comes from the line of Bryce Rowe from B. Riley. Your line is open. Thank you. Good morning. Wanted to start, Chris, with just the dividend and obviously the huge amount of coverage, you have of the dividend here this quarter. How should we think about, you know, the dividend construct, you know, going forward? I think we've probably all of us have thought about this or asked this on previous calls. Clearly there could be some room to move the dividend higher. Are you expecting, possibly to consider, you know, a Base Supplemental construct? Just curious how you and the board are thinking about it at this point? Well, as you can imagine, this is something we, you know, we think about and discuss, you know, quite a bit. I think, you know, a lot of, you know, a lot of, you know, predicting, you know, the future of business is very difficult, especially these days. You know, if we look at, you know, we kind of look at all these forward interest rate curves that are coming out, and I think if you look at the forward interest rate curve, you know, six months ago, they were predicting interest rate cuts, you know, this summer, this July. Then, you know, you look at it a bit more recently, there's higher for longer and interest rates coming in 2024. You know, there's a tremendous amount of volatility. I think we've had probably the most predicted recession, by really, you know, accomplished, intelligent, really successful investors, have been predicting an imminent recession for, you know, nine months now or something, and that has not yet occurred. Now this debate, is it soft landing, hard landing, still going on. There's so much uncertainty out there, and that's not really our business to try and figure that one out. That's, you know, pretty complicated to figure out. What we're trying to do is we're trying to establish a sustainable dividend level. If kind of, you know, somewhat of the worst case occurs coming out there, you know, in the future, you know, if the, if the economy comes off and then if interest rates comes down, you know, we want to be in a position where we can sustain this dividend, you know, kind of through that case. Obviously, if things continue much better, we're building up a lot of, you know, a lot of incremental, you know, dividend obligation, right? That we would ultimately, you know, look to, you know, take, pay out, you know, to our shareholders. I think as we mentioned on our last call, the way the BDC, you know, requirements for payouts occur, generally, it's sort of like Novembers, right, for us. You know, you have November of 2023, you have a certain tax obligation, November 2024, you have a certain tax obligation. We don't have a requirement by November of 2023 to do anything different than what we've kind of been doing. November 2024 is different. That's when a lot of our, you know, our Supplemental, you know, earnings, you know, Incremental Earnings would be due. We have quite a bit of time, and as I've just said, you know, you look at over the last six months, how outlooks have changed. I think over the last next six months, you know, probably outlooks, you know, may change just as much, may not change a lot. We don't know. I think we're in a very comfortable position in terms of where our dividend is and being able to sustain it over the long run. The Incremental Earnings that we have are, you know, going right into our equity base and allowing us to do, you know, more business. I think as Mike had, you know, elaborated in his piece, you know, we have to have a tremendous pipeline, and we're actually turning down, you know, very interesting deals because our bar has been, you know, raised even higher. The terms, conditions, quality of what we're seeing is very strong. I think the shareholders should feel comfortable that those Incremental Earnings are being put to very good use in this current environment. That's helpful, Chris. maybe one more from me. It looks like on the, you know, the facing page of the Q that shares outstanding are up a little bit, you know, quarter to date, with the quarter ending August. I assume that you've been a little bit active on the ATM, and I guess the question is, are you all, you know, at the advisor level, helping to subsidize some of the costs of the ATM? Well, I think that's a very astute observation, Bryce. I, and yes, that's, that is the case. You know, we have, you know, sought to raise some more equity, and we had, you know, some small raises in the past. Yes, the advisor has been involved in assuring that the BDC receives NAV for any shares sold. Excellent. With that in mind, Chris, you know, I think we've talked about this in past calls as well, but, you know, I understand kind of the nature of your debt outstanding, and the higher quality nature of it. Is there a kind of a certain kind of target debt-to-equity ratio that you would optimize, or that you would optimally like to be at, you know, with the ability to possibly raise equity in the future? Well, again, I, you know, last call, we had a very, you know, extensive conversation on that. I think our comments from that are, you know, still what we think about it. You know, I think we've got a balancing act that we're working on here, which is we've got a tremendous pipeline of very high-quality investments. We've got a very solid liability structure that is really structured to handle a lot of adversity, and right now is paying off super well, given the rising rates. You know, I think on the downside of leverage, I think we're very, very well positioned in that we don't have any covenants, we don't have any hard maturities that are coming anytime soon, you know, that aren't, you know, pretty manageable. We're very well structured on the downside. I know in terms of leverage, you know, everybody, especially these days, are very concerned about the downside. I think the flip side is the positives, right? I mean, leverage is good and, you know, there's a whole good aspect of leverage. I think as you can see, you know, our earnings performance, you know, kind of was way ahead of, you know, projections by many people looking at us, and part of that is because of our leverage. We have a very strong, at the heart of it, super strong portfolio. That portfolio, with the rising rates and then the increase and better terms in our newer deals, is driving, you know, you know. I mean, our earnings are twice what they were a year ago. You know, our stock price isn't twice what it was, but our earnings are. Our earnings yield is, you know, over 15%. You know, dividend yield, you know, 10%+, earnings yield, 15%+. You know, I, you know, from, you know, looking at our portfolio, I mean, we're performing extraordinarily well. Going to your question of what is our leverage levels? You know, we just have to balance the fact that we've got some, you know, statutory requirements. We've got some, which is most important to us, credit quality issues, like how do these assets fit within our, you know, credit quality perspective? As Mike said, we've got a very high bar, and we're putting on some tremendously strong credits, you know, in this environment. You know, I can't give a precise answer, but, you know, it's kind of opportunity driven and risk assessment driven and statutory Okay, all that at once and trying to do the best job we can to continue our, you know, pretty substantial and remarkable earnings performance. Yep, I appreciate that. It's great to see the progression in earnings and certainly impressive quarter, you know, that you had this quarter and even the last couple. Appreciate the comments. Thank you. Thank you. One moment for our next question. Our next question will come from the line of Casey Alexander from Compass Point Research. Your line is open. Hi, good morning, and thank you for taking my questions. I've got a couple here. First of all, I think Henri mentioned in the prepared remarks that 29% of the First Lien portfolio encompassed last out positions. I'm not sure that I've heard that before. Could I think maybe this is for Mike. If you could explain, you know, what makes, what characteristics are you looking for that you would accept a position that's a last out position, kind of who's in front of you? It's kind of unusual in that, you know, not a lot of term loans have partial repayments. I'm sort of interested in the characteristics and why not have the. on page eight, the portfolio composition recognized that some of those First Lien Loans are last out positions? Good morning, Casey. Let me address the, you know, way that we think about last out positions vis-a-vis, you know, dollar one unitranche positions. You know, certainly the bar is higher for those positions, given that we're, you know, in a First Lien position, which is, you know, kind of the premium spot to be in the balance sheet, albeit behind a first out lender. We're looking at, when we make those investments, at making sure that from a credit quality perspective, we feel that much more comfortable that that position is one that is sensible and that we're well protected by the enterprise value of the business. We also structure those deals, typically with partners that we scrutinize very carefully and have a great deal of comfort that they're, you know, rational partners, and we always structure those with an agreement in terms of how the loan is administered, should there be any challenges or, you know, what have you. There's lots of protections around how we structure the deal so that we're working in partnership with the first out lender. Generally, there's a lot of nuances in terms of how first out, last out deals are structured. The way we structure them is such that we feel very comfortable that the terms are strong, especially relative to some other structures that we've seen in the marketplace. as I said, you know, we're scrutinizing the partners that we work with, to make sure that we've got a lot of comfort that they're, you know, reasonable, in terms of their credit underwriting and that we have a good partnership approach to investing. Casey, and I would just add, you know, although we don't show it in the chart, I have been always providing that breakout, for years now, always in my remarks, just to give that color as well. It's not a new disclosure there. The other thing I'd add, Casey, as well, is that the, those structures allow us to do some deals that if we tried to be in those credits as a pure unitranche provider, we wouldn't be able to be competitive. The credit profile, the quality of the credit profile is such that the pricing, you know, were it to be a unitranche pricing, would be below where we could make it accretive for our shareholders. These are generally deals that are high quality deals. The, the characteristics of them are very strong. To be competitive, the overall pricing on a facility like that is quite. You know, it's tighter. Doing a first out, last out, gives us an opportunity to create a combined pricing structure that works for the borrower, but gives our shareholders a chance to get premium yields because we're leveraging that first out partner's pricing as well. We think it's a terrific way for us to augment our portfolio in a way that's balanced and still in a First Lien position, but with premium quality credits. If I could add as well to that, you know, just to kind of give a sort of a strategic overview, I think, you know, as both Mike and Henri have said, you know, there's sort of several categories here. One is how do we, as Mike just described, how do we get into a really high quality credit, which, you know, may be different pricing? The other is how we stay in. We've had a number of deals where we would have lost the deal because the company's had, you know, credit quality, scale, size, enabled them to get into a better credit facility, pricing-wise than ours was. By bringing in a partner whom we select, we're able to bring in a senior level lender, which allows the combined package to be much more competitive. Maybe not as competitive as it could be if they completely went to the market, but allows us to preserve the relationship and the credit positioning. The third is to provide strategic liquidity. We have a number of unitranches we're in, and we've looked to bring in, again, known partners on known documentation that is our documentation largely, that allow us to, you know, to basically liberate some of the capital in these credits and redeploy. I think if you look at this most recent quarter, we had seven new relationships. Having the capital to do new relationships is very important strategically because it pays enormous dividends down the road because we had seven new relationships, but we had 20 follow-on investments. All of our new relationships lead to all these follow-ons. it's a combination of capital enhancement for us and staying in much more substantial credits than before. Mike and Henri, I think it's fair to say, I mean, all these people we're doing last outs with are relationships we've had for many, many years. That's right. We've got longstanding relationships with our first out partners. Casey, the one thing I would do just to reemphasize what Chris mentioned, a perfect example would be the HemaTerra loan that we have in our portfolio. That's a deal that's sort of a, you know, a great example of how we've attacked the market. That, you're gonna get the dollars, I don't have the exact dollars, but I'm gonna say that the original investment there was for the initial platform, was less than $10 million between our debt and equity investment. We did a unitranche, dollar one unitranche, and a healthy equity co-investment. That company's performed very well. It's owned by a sponsor relationship that we've had for a long time, and it's a really strong sponsor relationship. We supported it with follow-on capital for them to do some acquisitions. That investment grew to a pretty healthy size. I can't remember the exact number. Most recently, they did a much larger acquisition that would have brought that facility, you know, as a unitranche to over $100 million, which is something that was too large for us to carry on our balance sheet. Given the performance of the business, the experience that we had in the deal for at least a couple of years directionally, before we upsized it at that point, we were very comfortable with the credit profile. Rather than see that, portfolio company exit, and not having our shareholders get the benefit of the continued earning stream, in that case, we brought in a first out partner, and we're able to upsize the facility, continue to support, the portfolio company, and we also have equity in that investment, and that business continues to perform exceedingly well. That's kind of a it's a microcosm of sort of how we look at certain deals or how we're approaching, you know, deals in the marketplace, and an example of a first out, last out scenario. Well, thank you for that. I'm pleased that I could ask a question that would prompt all three of you to participate in the answer. My second question is, you know, can you give some more color on the defaulted assets in the CLO and how that may impact its structure, its requirements, and potentially its cash flow? Well, maybe I'll start with that, Casey, on a, sort of on a high level. You know, the CLO, you know, has, you know, round numbers, plus or minus like a couple hundred credits. There's a lot going on inside the CLO. The CLO also has a fairly complex, you know, roll-up to value, if you will, with waterfalls and things like that. It's not necessarily the easiest thing to predict from a distance, how it behaves and how it operates. But inside of that- Well, I guarantee you, it's impossible to predict for those of us sitting outside of the company. Yeah. Right. especially on a quarter-on-quarter basis. You know, there's like, you know, like, BB credits are highly desired right now, so those are trading extraordinarily well. B are less desirable because they're closer to CCC, CCC credits are not trading very well at all because people don't want them. You know, they have baskets that are kind of full. There's supply and demand issues out there where, you know, they have a lot of CLO formation, you know, in a, you know, in the beginning of the year and then less just recently. You combine that with not that much issuance, you know, because the larger buyouts are not happening at the same, you know, rate as before. You have all these different crosscurrents in the marketplace, which result in sort of different credits and different assets, different, you know, pricing, you know, given what goes on. Like, for example, you know, a restructuring credit that might trade at $50, you know, we mentioned in our conversation that, you know, that the whole portfolio is, you know, has recovered maybe a third of where it was marked, of what it was marked down from May 31st. Inside of that, you know, anything trading at $50 probably didn't move, right? Where something trading in the $90s might have moved up, you know, a lot more. You have all those dynamics underlying it all. But I think, you know, the, the, you know, it's hard to, again, take sort of individual pieces of the puzzle and then try and assemble the whole puzzle because there's like a 1,000 pieces to this puzzle. So the way we look at it is we've been in this CLO from the beginning. We have a second CLO, which has been added to it. If you look, the CLO has been through a lot of, a lot of different markets, right? Even before we owned it went through the, you know, the, the, you know, 2008, 2009 crisis. Then we've been through all kinds of, you know, liquidity, different things, COVID, et cetera. Over the long run, our CLO produced high teens returns, you know, based on our investments. You know, we've kind of weathered a lot of ups and downs and a lot of different types of markets. You know, this one, I'm not going to say this is the same as we've seen before, and I'm not going to say the whole marketplace has the exact same dynamics, but the structure has been a very successful long-term investment structure for us, and we don't think any differently. There are some, you know, adverse, you know, events and some are idiosyncratic. We've avoided a lot of traditionally cyclical elements in our CLO. Like, you know, we don't have energy investments, you know, for example, which, you know, have gone down a lot, gone up, and then gone down. I mean, there's a lot going on there. As a general sort of overview of that, you know, we feel that this is a good investment in the long run, although there are periods of time where, you know, you have some adverse developments, but the power and the earnings of it has produced fairly consistently high teens returns for us over the long run. All right. Thank you. That's all my questions. I appreciate it. Thanks, Casey. Well, Casey, I hope you appreciate, our presentation was shorter this time. Thank you. Our next, one moment for our next question. Our next question will come from the line of Erik Zwick from Hovde Group. Your line is open. Thank you. Good morning, everyone. I wanted to start with the pipeline for my first question. I think last quarter you mentioned, you kind of described it as robust with many actionable opportunities. This morning mentioned that it continues to grow. I'm wondering if you could just provide a little color, first, in terms of, you know, any particular industries where you're seeing stronger demand or stronger activity. Then second, just if you could categorize, you know, maybe how it shapes up in terms of new investment opportunities versus follow-ons. Yeah, I'll try to address that. You're right, the pipeline that we have remains very robust, and that's mostly reflective of the business development efforts that we've taken on over the last several years. You know, certainly deal flow in the market is down relative to historical levels. It continues to be down, although we're seeing some pickup in that respect. Our actionable pipeline has more to do with kind of what we're doing in the marketplace and our reputation growing and our relationships growing. That's definitely yielding really good opportunities for us. We think it's a great time to be investing capital. You know, there's a lot of caution in the marketplace. You know, we think we've got, you know, certainly among the best teams in the BDC marketplace. We like being in the lower end of the middle market for sure. We think we get an opportunity to underwrite our deals in a way that the larger market can't. We get better legal protections as well. We like the verticals that we're in, and I think as a result of that robust pipeline, we have an opportunity to be highly selective. As it relates to sort of the industries that we're in, we're generalists, so we're really just looking for businesses that have really strong characteristics that get us comfortable that they're gonna hold up under most, you know, reasonable circumstances that we can think of as we analyze the businesses. We also have a few verticals that we tend to focus on, and that's by design, because those verticals are ones where we think that businesses that differentiate themselves and really create a business model where they have an enduring value proposition that they offer for their customers, they can hold up really well and thrive. As a result, Outside of our generalist approach, we've gravitated toward a few verticals, and we're seeing healthy deal flow there, in part because of our, as I said, business development outreach, but in part because those verticals are holding up well, and there's still a fair amount of activity within those verticals, which would be, you know, certainly software-related businesses, and SaaS businesses that are across a wide variety of industries. We certainly have expertise and a reputation that gives us healthy deal flow in that market. Then outside of that, we're also focused on healthcare and education. So we're seeing healthy deal flow there. Now, because a good portion of our portfolio is invested in those verticals, those businesses are continuing to grow, and they have an appetite for more capital, and that's where you see a lot of that follow-on activity. You've also seen that we've added additional portfolio companies as well, and that's just reflective of, you know, healthy new deal flow that we're seeing on new portfolios, new portfolio companies. Thank you. That was all very helpful. Any color in terms of, you know, I guess, kind of what's moving more near term through the portfolio, I'm sorry, through the pipeline and potentially close in terms of kind of new opportunities versus follow on? It's a healthy mix. I think it's really hard to predict that. I think as you've seen, our portfolio in our investments in new portfolios are really a reflection of how strong we think the business investment opportunities are. We have historically had some quarters where we actually have not done any new portfolio investments, and it's just because we haven't seen anything that's worthy of investing. There are other times where we've had, you know, pretty significant investment activity. Right now, we're seeing a lot of opportunities, especially ones that, you know, we're delighted to see that fit our SBIC III, which has lots of room to expand. Yeah, Erik, you will see historically, you know, follow-on has always been a really, really important part of our origination story and our growth story. I don't think we expect that to change. Definitely our focus is SBIC III at the moment, as we have a lot of capital to deploy there. Makes sense. Last one for me, really, just kind of a, maybe a record-keeping one. Do you have the value of the spillover at the end of the quarter? You know, I don't. We disclosed it. It was around $20 million at the end of February, which we disclosed in the 10-K, but we don't generally disclose it on a, on a quarter-end basis. Got it. Thank you for taking my questions today. Thank you. Thanks. Thank you. I'm not showing any further questions in the queue. I'd like to turn the call back over to Christian Oberbeck for any closing remarks. Well, thank you all. We very much appreciate the support of all our shareholders. We look forward to speaking with you next quarter. Thank you very much. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.