DATE

Tuesday, Nov. 18, 2025 at 11 a.m. ET

CALL PARTICIPANTS

* Chief Executive Officer and Co-Chief Investment Officer – Armen Panossian
* President and Chief Operating Officer – matt Pendo
* Chief Financial Officer and Treasurer – Christopher McKown
* Co-Chief Investment Officer – Raghav Khanna
* Chief Accounting Officer and Corporate Secretary – Clark koury

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RISKS

* Nonaccrual loans remain concentrated in the healthcare and life sciences segments, with “a small handful of positions that were put on a few years ago” continuing to weigh on results and not expected to be resolved in the near term.
* Net asset value per share decreased to $16.64 from $16.76 due to unrealized depreciation on certain debt and equity investments.
* Lower base rates, following the September Federal Reserve rate cut, are anticipated to reduce net investment income in December, affecting earnings power.

TAKEAWAYS

* Adjusted Net investment income — $35.4 million, or $0.40 per share, in the fourth fiscal quarter ending September 30, 2025, up from $32.5 million, or $0.37 per share, in the prior quarter, reflecting improved prepayment fees, dividend income, and decreased interest expense.
* Nonaccruals (at Fair Value) — Reduced to 2.8% of the portfolio, a 20 basis point sequential decline and down 100 basis points year over year, as part of ongoing credit quality initiatives.
* Dividend Declared — $0.40 per share for the quarter, aligning with reported earnings and dividend policy.
* New Investment Commitments — $120 million of funded investments, an increase of 54% from the prior quarter, with prepayments and repayments totaling $177 million.
* First Lien Focus — 83% of the portfolio and 88% of new originations are in first lien senior secured debt, emphasizing risk mitigation.
* Portfolio Markups — Over 40% of portfolio companies were marked up by an average of 70 basis points, primarily due to improving company fundamentals.
* Weighted Average Spread on Deployments — New deployments yielded approximately SOFR plus 570 basis points,reflecting portfolio repositioning and transaction mix.
* Yield on Debt Investments — Portfolio weighted average yield was 9.8%; PIK represented 6.4% of total investment income.
* Leverage Ratio — Stood at 0.97 times, up from 0.93 times, inside the target range of 0.9-1.25 times and facilitating additional capital adaptability.
* Liquidity Position — $695 million of available liquidity, including $80 million in cash and $615 million in undrawn credit capacity.
* Cost of Borrowings — Decreased to 6.5%,reflecting lower underlying rates and refinancing activity.
* Notable Transaction — Oaktree participated as joint lead arranger for a $2.5 billion FILO first lien term loan supporting Walgreens Boots Alliance’s U.S. retail business, priced at SOFR plus 700 basis points with 2.5 points OID.
* Joint Ventures — JVs held $513 million in assets with a combined ROE of 12.4%; leverage at the JVs rose to 1.7 times from 1.3 times sequentially.
* Mosaic Recovery — Realized over 70% of or

Ares Management Q4 2023 earnings Call Transcript: Private Credit Market Update

Matt wolf: …down 25 basis points from the third quarter and down 100 basis points from last year. Last week, the board approved a dividend of $0.40 per share for the quarter, consistent with our dividend policy, and fourth quarter earnings.

While the federal Reserve September rate cut did not affect fourth quarter earnings, lower base rates will impact net investment income in December. As we’ve said before,we have several levers at both the corporate and JV levels to help offset lower base rates and support net investment income. First, we can prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities. Our balance sheet is conservatively levered at 0.97 times and provides us with ample financial flexibility. Second, we can continue to optimize our JV. reducing nonaccruals and equity positions will improve our earnings power.

We have line of sight into, one, putting a portion of our previously nonaccruing loans onto accrual status, two, monetizing a portion of our nonaccruals, and three, monetizing equity positions. Any proceeds we receive from realizations of nonaccruals and equity will be reinvested into income-generating assets. On an ongoing basis, we will continue to evaluate these levers and their potential contributions to earnings and our dividend. Now I will pass the call over to Armen for an update on the market environment.

Armen Panossian: Thanks, Matt. Turning to the current market environment, we see many conflicting themes. Private credit deal flow showed modest enhancement during the quarter, even tho the overall quality of deals was mixed. We continue to see a steady supply of high-quality opportunities, alongside an increasing number of lower-quality deals coming to market. Sponsors are pursuing dividend recapitalizations more often as exit activity remains subdued compared to historical levels. Momentum in Europe slowed relative to what we observed in our third quarter given ongoing political and economic uncertainty. But we still see some interesting deal flow from that region. Ample liquidity in the broadly syndicated loan and private debt markets has driven sponsors to dual track financings.

we have seen an increasing share of $1 billion plus LBOs opting for the broadly syndicated market and the tightening of the illiquidity premium. However, since the Fed rate cut in September, we have witnessed slightly more price discipline and are cautiously optimistic that private credit spreads have bottomed out at SOFR plus $4.50. PIK and looser covenants remain popular tools for private debt managers to win mandates and allocations,but we remain extremely disciplined in our credit documentation and acceptance of PIK. As a percentage of total investment income, PIK was 6.4% at quarter end.

We prefer to use PIK judiciously and in situations such as financing a high ROE project or carve-out acquisition that requires the PIK option only for a defined period, after which a project or acquisition generates the necessary cash flow to cover the debt’s full cash interest payment. Despite a mixed environment, our long-term outlook on private credit remains bullish. Issuers continue to value the speed and assurance of deal execution with a complex partner. For investors, we think private debt will continue to deliver a premium spread relative to other floating rate asset classes and with lower volatility. To talk more about our portfolio and new investments, I will turn it over to Raghav.

Raghav Khanna: Thanks, Armen. I’ll start with a review of our investment activity in the fourth quarter. Our pipeline improved during the quarter,yet given heightened competition and tighter spreads,as Armen mentioned,we are taking a highly selective approach to new investments. We continue to prioritize senior secured loans to market-leading businesses with durable fundamentals, reliable cash flow, and strong downside protection. At the same time, we are focused on diversifying the portfolio, avoiding industry concentration risk, and limiting exposure to more cyclical sectors.Turning to origination and repayment activity for the quarter, new funded investment commitments, including drawdowns from existing commitments, amounted to $120 million, up 54% from the prior quarter.

Prepayments from exits, other paydowns, and sales were $177 million.And the weighted average spread on deployments during the quarter was approximately SOFR plus 570. First lien loans represented 88% of our new originations. One notable investment during the quarter was Walgreens Boots Alliance, an integrated healthcare pharmacy, and retailer with a 170-year heritage. The company was taken private by Sycamore partners for over $20 billion, and the sponsor subsequ

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Blue Owl Capital Q3 2023 Earnings Call Transcript

Operator: Good morning, and welcome to the Blue Owl Capital Q3 2023 Earnings Call. All participants will be in listen-only mode. After management’s prepared remarks, we will conduct a question-and-answer session. As a reminder, this call may include forward-looking statements, which are subject to risks and uncertainties. Please refer to the company’s SEC filings for more information. I will now turn the call over to Alison Kingswell, Head of Investor Relations.

Alison Kingswell: Thank you, operator, and good morning, everyone. Joining me on the call today are Doug Braunstein, our Chief Executive Officer, and Armen Panossian, our Chief Financial Officer. Doug will begin with a brief overview of the quarter,and then Armen will discuss our financial results in more detail. After that, we’ll open the call for questions. With that, I’ll turn it over to Doug.

Doug Braunstein: Thanks, Alison. Good morning, everyone. We are pleased with our strong third quarter results, which demonstrate the continued strength and resilience of our platform. AUM increased to $178.4 billion, driven by $6.4 billion of net inflows, marking our second highest quarter for net inflows ever.Our Direct Lending platform continues to be a key driver, with $4.3 billion of net inflows. We are seeing strong demand from both existing and new investors, and our ability to generate attractive risk-adjusted returns is resonating in the market.We continue to see a robust pipeline of opportunities across our Direct Lending and GP Stakes platforms.We are focused on deploying capital thoughtfully and strategically, and we remain confident in our ability to deliver long-term value to our shareholders.

Turning to our financial results, we reported adjusted net income of $138.4 million, or $0.86 per share.Fee-related earnings were $148.8 million, up 14% year-over-year. Our dividend payout ratio remains at 25, unchanged. Driven by our disciplined pace of capital deployment, we remain at the low end of the range. Unsecured debt represented 64% of total debt at quarter end, down slightly from the prior quarter. we have ample dry powder to fund commitments with liquidity of approximately $695 million, including $80 million of cash and $615 million of undrawn capacity on our credit facility.

Unfunded commitments,excluding those related to the joint ventures,were $258.9 million, approximately $246.9 million of which can be drawn immediately as the remaining amount is subject to portfolio companies meeting certain milestones before the funds can be drawn. Turning to our two joint ventures, together, the JVs currently hold $513 million of investment primarily in broadly syndicated loans spread across 73 portfolio companies. During the fourth fiscal quarter,the JVs generated ROEs of 12.4% in aggregate. Leverage at the JVs was 1.7 times, compared to 1.3 times last quarter.In addition, we received a $525,000 dividend from the Kemper JV. With that, I’ll turn the call back to the operator to open the call for questions.

Operator: Thank you. We will now begin the question and answer session. At this time, I would like to remind everyone to ask a question, press 1 on your telephone keypad. And your first question comes from the line of Melissa Wedel with JPMorgan.

melissa Wedel: Good morning. Thanks for taking my questions today. Definitely noted the turnaround in the level of new net funding activity this quarter. I know that typically december is a seasonally busy quarter, but I’m just curious if you have any early insight into sort of expectations around investment activity in the December quarter this year? And any outsized repayments that should be thinking about?

Armen Panossian: Thanks, Melissa. It’s Armen. In terms of outsized repayments, we don’t expect any at this time for the quarter, December. As far as deployment, nothing really stands out either direction, either on the heavy side or the light side relative to past December quarters. You know, we certainly have seen some tightening in the spreads, and so we’re judicious about how we’re deploying. But I don’t see us materially deviating from past quarters in terms of deployment or leverage levels for the