WHF Q3 2026 earnings call transcript, November 9, 2026

Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help you.

My name is Chloe and I will be your conference operator today. At this time, I would like to welcome everyone to the Whitehorse Finance Third Quarter 2026 Earnings Conference Call. Our hosts for today's call are Stuart Aronson, Chief Executive Officer, and Joyson Thomas. Chief Financial Officer. Today's call is being recorded and a replay is available through a webcast in the Investor Relations section of our website at whitehorsefinance.com. At this time, I'll participate in the chat. Participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. If you should require operator assistance, please press star 0. It is now my pleasure. to turn the call over to Rob Munnings of Rose and Company.

Thanks, Chloe.

Thank you, Rob.

Good afternoon, everybody.

Thank you for joining us today. As you're aware, we issued our earnings this morning before market opened, and I hope you've had a chance to review our results for the period ended September 30th, 2026, which can also be found on our website. On today's call, I will begin by addressing our third-quarter results, provide a brief update on the actions that both management and our board have taken to date in creating shareholder value, and finally discuss current market conditions. Then, Joyce and Tom will begin to discuss current market conditions.

Thomas, our chief financial officer, will discuss our performance in greater detail, after which we will open the floor for questions. At a high level, our third-quarter results reflected three main themes. First, net asset value per share increased for the second consecutive quarter, given primarily by continued unrealized appreciation and our investments in Chase products and PlayMonster. Two, credit quality improved with the nonaccruals. declining to 2% of the debt portfolio at fair value, following the restructuring of outward hounds. And third, poor net investment income increased modestly quarter over quarter, while gap net investment incomes... saw a decrease relative to the prior quarter as a result of certain non-recurring, non-cash expenses and write-offs. Coming to our financial results, Q3 GAAP net investment income. was $4.4 million or $0.20.7 per share, and core NII was $4.8 million or $0.22.4 per share. This compares with Q2 GAAP net investment income and core NII. NII of $4.7 million or $0.21.7 per share. The difference between GAAP NII and core NII this quarter reflects approximately $450,000. of non-recurring expenses or $1.7 per share net of related incentive fee consisting of the write-off of previously deferred offering costs associated. with our shelf registration statement as well as our previously active at the market equity offering program touching more specifically on the portfolio marks net realized and unrealized gains.

of the quarter were approximately 2.1 million or 9.6 cents per share net markups were again led by our position in Starco also known as chase products and pressurized holdings or the markup on our equity investment contribution. approximately 1.3 million or roughly 6 cents per share. I'll provide more detail on chase as well and an update on a number of and an update on another of other events. in our portfolio later in the call. NAV per share at the end of Q3 was $11.82 compared with $11.77 at the end of Q2, an increase of approximately 0.4%. The change in NAV reflected net realized and unrealized gains of approximately $0.09 per share, partially offset by the approximate $0.04 per share NII shortfall as a result of distributions paid during the quarter. that exceeded gap net investment income for the period. Even though our NII this quarter was below the quarterly distribution rate, as I've shared in the past, we have a number of restructured credits that have been equitized and are not producing meaningful NII. I will discuss and provide updates on a few of these shortly. And to the extent we have realizations on these positions, the reinvested capital should add to the BDC's NII generating capability. Thereafter. Turning to shareholder value, as we have discussed on prior calls, both management and the board remain focused on actions that we believe can help enhance shareholder value over time.

Focuses included discipline portfolio repositioning, selective capital of employment, creative share repurchases, and steps to support distributable earnings. Cumulatively, since the inception of our share repurchase program in the first quarter of 2025, we have repurchased approximately 1.8 million shares at a weighted average price of approximately $736 per share, and we estimate that our buybacks have contributed approximately 33 cents per share to NAV accretion. Additionally, over that same timeframe, the BDC's advisor has agreed to voluntary incentive fee waiver. reducing the applicable rate from 20% to 17.5%. Cumulatively, this aggregates to approximately 530,000 or approximately 2.4 cents per share. and the incentive fee is waived by the advisor in an effort to support distributable earnings. The advisor has again agreed to extend voluntary incentive fee waiver for the fourth quarter of 2026, reducing... the applicable rate from 20% to 17.5%. Now, as an extension of our commitment to seeking ways to create shareholder value, and as previously announced on September 15th, our board... The board has formed a special committee of independent directors to explore strategic alternatives for the company, which could include a sale or other strategic alternative for the company. Sorry, which could include a sale... ...or other corporate transactions. That review is ongoing. The special committee has not set a timetable for the conclusion of its review, and there can be no assurance that the review will result in the company proceeding or completing...

...any transaction. Consistent with our prior announcement, we do not intend to comment further on the review unless and until the special committee has approved its definitive course of action, or the review is concluded, or it is otherwise determined... ...that further disclosure is appropriate or required by law. Accordingly, we will not be taking questions on the strategic review during today's call. Turning to our portfolio activity, we had gross capital deployments of 21... million in Q3. Repayments and sales totaled approximately 10 million, resulting in net deployments of approximately 10.9 million before the effects of transferring assets into the STRSJV. Gross capital deployments consisted of two new originations totaling $14.8 million, with the remaining $6.2 million deployed to fund add-ons to existing portfolio companies. The two new originations were Trans Service Logistics for $8 million, which refinanced our existing investment in that company, and Core Wireless Group for $6.8 million, which was transferred into the STR. RSJV during the quarter. Add-on fundings were led by Nativia Group at $2.6 million, and Kelso Industries at $1.7 million. Of our two new originations in Q3, one was non- sponsor and one was sponsor. The new originations in Q3 had an average leverage of only 3.6 times EBITDA and were all first lien loans. Total repayments and sales of $10 million were driven primarily-

by the repayment of our prior trans service logistics term loan of $7.6 million, which generated a gross IRR of 14.6%, as well as the realization of our residual equity position. in PFB for $0.2 million. During the quarter, the BDC transferred five deals to the STRSJV, totaling $21.4 million. The transfers were headlined by Core Wireless at $6.8 million. Intermediate cloud communications at $6.6 million. And vibration mountings and controls at $6.3 million. We continue to successfully utilize the STRSJV and believe that Whitehorse Finance equity investment in the JV. continues to provide attractive returns to our shareholders. After net deployments and JV transfer activity, as well as net realized and unrealized gains recognized during the quarter, total investments were essential. Unchanged at 569.1 million. During the quarter, we recognized approximately 3.6 million in net realized losses driven by the restructuring of Outward Hound and approximately 5.7 million. Of net unrealized gains, which included 4.1 million from Outward Hound driven by the reversal of 3.8 million in previously recognized unrealized appreciation. For aggregate net realized and unrealized gains of approximately 2.1 million or approximately 9.6 cents per share. The net gains included a 1.3 million. markup on Chase, a $0.7 million markup on PlayMonster, and approximately 0.8 million of other net markups across the portfolio, which were partially offset by a $0.7 million markdown on ArcServe.

As a reminder, Chase Products is a developer and manufacturer of bulk consumer and industrial chemical and aerosol products in the United States. The company continues to perform ahead of plan, and the markup this quarter reflects... the continued improvement. We are now an active sale process for Chase. To date, that process has generated constructive indications of interest from buyers, and we currently expect the sale to be completed in the next two to four months. As always, there can be no assurance as to the timing or outcome of that process. PlayMonster, as you may recall, is a toy and game company with owned and licensed brands, including Hacky Sack, SpiroGraph, Taco vs Burrito, and Five Second Rule. The business has experienced a material resurgence in demand across multiple products in its portfolio, which is driving strong performance. And the markup this quarter reflects that trajectory. Based on that strong performance, we believe there could be a likelihood that a sale of the company is pursued in the first half of 2027. Both positions generate... Limited cash income today, a realization in either case would convert the full realized value into cash available for future redeployment into income-producing investments, which would positively contribute to helping to support core NIIO. Over time. Regarding ArcServe, the markdown in our position this quarter reflects several quarters of relative weakness in the business. The company remains cashflow positive though, and we are working with the management team on initiatives.

to accelerate growth. More broadly, as reflected in our marks, a small number of credits are experiencing relative softness. In most of those cases, the owners are supporting the companies with additional equity. Across the portfolio, the average credit has been stable to improve in. At the end of Q3, 98.8% of our debt portfolio was first lien and senior secured, and our portfolio continued to reflect a balanced mix of sponsor and non-sponsor investments. with non-sponsor representing approximately 42% of the portfolio at fair value. The weighted average effective yield on the income producing debt investments was 11% at the end of Q3. compared with 10.8% at the end of Q2. The weighted average effective yield on our overall portfolio was approximately 8.7% at the end of Q3 compared to approximately 8.8% at the end of Q2. With respect to non-accrual status, the restructured outward hound term loan returned to accrual status during the quarter, and there were no new additions to non-accrual. Excluding the STRSJV non-accrual investments represented 2% of the total debt portfolio at fair value, compared to 3.6% at the end of the prior quarter, and 4.4% at cost, compared with 6.9% of the cost at- at the end of the prior quarter. Investments in three issuers remain on non-accrual at quarter end, which were Camarillo Fitness, New Cycle Solutions, and PlayMonster. Turning to Outward Hound-

We completed the restructuring of the business in early July. Alongside the other lenders, we were recapitalized the company and converted a portion of the restructured debt into equity. White force now holds majority ownership and control of the board. The pet products market remains challenging and we are working with management on initiatives to grow revenues and reduce costs. Finally, regarding Camarilla Fitness, formerly known as Honors Holdings, our mark... ...flex the expected proceeds from the sale of the underlying locations. That process is actively underway and as locations are sold and cash is returned, we will redeploy that capital into income-producing investments. As always, we continue to actively manage underperforming credits, leveraging our dedicated restructuring resources, which is a team of five people, and the broad capabilities of HIG. Aside from the credits on non-accrual and those I have mentioned, our portfolio continues to perform well. Our exposure to software companies remains modest at approximately 10.9% of the portfolio cost and 9% of the portfolio cost. 9.3% of the portfolio at fair value across six portfolio companies. Now turning to the market, over the course of 2026, the negative press surrounding the direct lending industry, together with outflows of retail capital, has contributed to more rational risk return environment in general. We are seeing lenders take a more conservative approach to add backs, synergies, and run rate adjustments.

Deal structures are generally back below 55% loan-to-value, and cash flow coverage is solid, and pricing for most of the 2026 vintage has been 50 to 75 basis points higher than. 2025 and 2024. Because many lenders are over-allocated to software and unable to consider new deals in that sector, the software opportunities we are now seeing are unusually attractive. With lower enterprise value, lower loan-to-value, much lower leverage, and pricing that is 100 to 150 basis points higher than for an equivalent deal outside of the software sector. Given our history, historically low concentration in software, we are considering some of these opportunities. Consistent with historical practice, we will continue to manage overall sector concentration in a conservative manner. Non-sponsor market remains stable, although we are seeing fewer non-sponsor deals at the moment. Non-sponsor deals continue to be structured at three to four and a half times leverage, with pricing of SOFR plus 600 and above, and covenant protection. The more conservative market, we are also getting covenants on the vast majority of our sponsor deals. In general, we are finding 2026 to be a constructive credit market. Volumes across Whitehorse Platform are up in an estimated 50% or more. over the 2025 levels, which is making more assets available to the BDC to the extent there is capacity. Subsequent to quarter end, the company closed on one new sponsor investment.

of approximately $65 million, and the STRSJV closed on one new sponsor investment of approximately $4.9 million. We have also received full repayments of our debt investment in QuestEvents, and the under realized equity co-investment is still held at the BDC on its balance sheet. Performer for Q4 activity, the STRSJV has capacity of approximately $22 million of additional assets. and the BDC balance sheet is capacity for approximately $25 million. We will continue to create additional capacity as we receive repayments on other deals. With that, I'll turn the call over to Joyson for additional performance.

details and a review of our portfolio composition. Joyson?

Thanks, Stuart, and thank you everyone for joining today's call. During the quarter, we recorded GAP net investment income of $4.4 million. or $20.7 per share, and core NII of $4.8 million, or $22.4 per share. This compares with Q2 GAP NII and core NII of $4.7 million, or $21.4. as well as a previously-declared third-order base distribution of $0.25 per share. Stewart mentioned, or NII excludes approximately $450,000 of non-recurrent expenses related to our shelf registration statements and ATM program, or $1.7 per share net of the related incentive fee. Q3 fee income was approximately $0.2 million compared with $0.1 million in the prior quarter, driven primarily by an amendment fee from future payment tech technologies of approximately $0.1 million. Total expenses for the quarter were $10.4 million compared with $9.7 million in the prior quarter. The increase was driven primarily by the non-recurring expenses I just mentioned, as well as approximately $0.1 million of independent director fees related to the special committee. For the quarter, we reported a net increase in net assets resulting from operations of $6.5 million. Our risk ratings during the quarter showed that approximately 84.8% of our portfolio positions either carried a 1 or 2 rating, slightly lower than the 86.6% reported in the prior quarter. As a reminder, a 1 rating indicates that a company has seen its risk of loss reduced relative to initial expectations, and a 2 rating indicates a company is performing according to such.

regarding the JV specifically, we continue to utilize the platform as a complement to the BDC. As Stuart mentioned earlier, we were transferred 5 deals during the 3rd quarter to the STRS JV. totaling $21.4 million in exchange for net investment in the STRS JV of $7.2 million as well as cash proceeds of approximately $14.2 million. With that activity, the remaining capital commitments to the JV were fully called during the quarter. During the quarter, there were three full realizations in the JV. At the end of Q3, the STRS JV's total portfolio had an aggregate fair value of $332.6 million across 43 issuers, of which 14 are common issuers with the company. and an average effective yield of approximately 9.9%. This compares with an aggregate fair value of $340.3 million and an average effective yield of approximately 9.8% across 43 portfolio companies as of June 30th. Leverage for the... The JV at the end of Q3 was approximately 0.93 times, compared with approximately 1.10 times at the end of the prior quarter. The investment in the JV continues to be accretive for the BDC's earnings. Generating a low-teens return on equity. During Q3, income recognized from our JV investment aggregated to approximately $3.5 million, compared to approximately $3.2 million reported in Q2. As we have noted in prior... calls, the yield on investment in the JV may fluctuate period over period as a result of a number of factors, including the timing and amount of additional capital investments, changes in asset yields in the underlying portfolio, and the overall credit performance of the JV's investment portfolio.

Turning to our balance sheet, we had cash resources of approximately $23.1 million at the end of Q3, including approximately $16 million restricted cash, representing interest and principal proceeds received during the quarter. In our securitized leveraged facilities at approximately $7.1 million at the fund level held for expenses in the quarterly dividend paid in early October. As a reminder, we have $85 million of unsecured notes. During December of this year, consisting of $10 million over 5.375% notes due December 4th, and $75 million over 4% notes due December 15th. We are actively working to address these maturities in our discussion. Regarding a financing solution, based on the progress to date, we feel good about our ability to address these maturities when due, but are not in a position to provide further details at this time. As of September 30th, 2026, the company's asset... ...coverage ratio for borrowed amounts, as defined by the 1940 Act, was 177.3%, which is above the minimum asset coverage ratio of 150%. At quarter end, gross leverage was 1.29 times, compared with 1.30 times... ...in the prior quarter, while our net effective debt-to-equity ratio, after adjusting for cash on hand, was 1.20 times, compared with 1.19 times in the prior quarter. The modest increase in net effective leverage primarily... ...and reflected lower cash balances at quarter-end. As Stuart mentioned earlier, the advisor has agreed to extend the temporary voluntary incentive fee waiver for the fourth quarter of 2026, reducing the applicable rate from 20% to 17.5%.

We view the fee waiver as a constructive step to support distributable earnings and shareholder value. As we have said previously, this irrevocable fee waiver is temporary, and any decision regarding future periods will be revisited based on the then-current conditions and in consultation.

with our board. Before I conclude and open up the call to questions, I'd like to discuss our recent distributions and corresponding distribution policy. This morning, we announced that our board declared a fourth quarter base distribution of 25 cents per share. The distribution will be payable on January 6th, 2027 to stockholders in record as of December 21st, 2026. In addition to our quarterly distribution, we elected to declare a special distribution of 17 cents per share. for stockholders record as of October 30th, 2026. The distribution will be payable on December 10th, 2026. The distribution was related to undistributed taxable income that was earned last year, which would have otherwise been taxable. Pro forma for distributions paid this year, and including the special distribution, we estimate our current spillback income to be approximately $14.3 million. As we've said previously, we will continue to evaluate our quarterly distribution both in the year and medium term based on the core earnings power of our portfolio, in addition to other relevant factors that may warrant consideration. With that, I'll now turn the call back over to the operator for your questions. Operator. Thank you.

If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question.

Hey, guys.

Thanks for taking my question.

I'm not sure, honestly, how much you're going to be willing to answer on this, but I promise I won't talk about strategic initiatives. I'm mostly... I'm also curious about the pending maturities and what types of options you guys would explore there. I'm also curious, just obviously paying the special dividends. And then in the fourth quarter, I think is a signal of your comfort in terms of liquidity, but I want to make sure I would have thought you would have to distribute that by September 27. So please help me understand sort of the timing of distributing it in the fourth quarter of 26, given the spillover. No, no problem, Rick.

Thank you for your questions.

In regards to the special distribution that relates to our 2025 taxable income. So that needed to be paid by the end of this year and declared before October 15th, consistent with how we've done our special distributions in the past relating to spillover income. So we actually would have been paid or would need to have been paid by the end of this year on regard.

Thanks to your question on liquidity as well as the maturities. So you're absolutely right that we would not necessarily have declared the special distribution had we thought we would need that liquidity for purposes of the maturities coming due in December. As we've mentioned in our prior earnings call, we do have capacity under our existing JPM credit facility, as well as some additional cash on hand. And we've been actively monitoring both the public and private debt markets and been speaking actively with a number of lenders on a financing solution decision. As I said before, we feel very optimistic and very comfortable with where we are right now relative to the maturities next month. Got it. And then just as we think about this, and again, look, I realize there is nuance to being able to answer this, but if you can give us sort of a generic sense of how much you think the market has you guys last approach the market, that would be helpful. At least for me, Rob, you looked out during the question. So give at least a sense of something. Oh, sorry.

And then you dipped out like you were asking me to repeat my question. I was asking sort of how much, you know, obviously that's very low cost funding. It's very attractive. It's rolling off. And that's the nature of the business. Sometimes you have expensive debt roll off. Sometimes you have. cheap debt fall off. I'm just curious sort of ballpark how much you think broadly the market has changed since that financing realizing you can't be too specific. You know, what I would tell you. is if you look at the vintages of those debt issuances, they were 2021 or before, right? And so with respect to that, including that $75 million, 4% issue. We're not necessarily going to see those types of rates. If you look at kind of the current retail environment for BDCs of comparable size, they've been obviously over 7% on a fixed rate basis, probably seven and a half to. Somewhere between 7% to 8%, I would say, as I mentioned before, and as you alluded to before as well, the ABL facility does provide some attractive. cost to us, and we have a bit of capacity to draw on those amounts. It wouldn't necessarily completely be able to address the debt issuances, but it would help if so. shows. Got it. I appreciate you guys taking the questions and the thoughtful answers. Thank you.

And once more for your questions, that is star one on your keypad. We'll move next to Robert Dodd with Raymond James. Your line is open.

Hi, guys.

And thank you for all the detail you gave on the call. Some questions. I mean, when I... Look at it. The activity was relatively low in the quarter. You do have significant available capital, as you outlined in the JV and on balance. I mean, was the... Low activity, was it just a function of the market or, you know, not directly asking about the strategic review, but has that had any impact on your decision-making about capital? Allocation to new deals, because the activity was quite soft relative to available capital. Robert, we had a couple of deals that were below the threshold pricing that the BDF... will put on balance sheet, and the STRSJV did not want to do the assets, so those assets did not come in. Overall volume in the platform is pretty strong.

And I think, although, Joyce, and you can confirm, some of that availability actually was created during the quarter. So, I don't think we... ...turned anything down due to capacity constraints. I just think it was a limit to how many deals the STRSJV was willing to approve. Joyce, do I have that? ...from your perspective? Stuart, I think that's right. I mean, there's obviously the point of timing. And so, as we announced in your remarks, the BTC did close on in one deal post-Q3. And then, as we also mentioned, we did have Quest events as a realization, both in the JV and the BDC in Q4 as well, which created some of that additional capacity that Stuart alluded to. Got it. Got it. Thanks. Thank you. One, a couple of other questions. I mean, one of your comments, I think, was was there are some credits that are seeing a little softness, but in most cases I. And I'll end that in my notes. The owners are supporting the credits. I mean, is there any theme for the ones where the owners aren't supporting them? Is it like a one off or a two off or, you know, kind of any themes about. In the portfolio or more broadly, where sponsors and owners, right, because it might be a non-sponsor deal, are still willing to support a deal versus less willing to support a deal. Robert, the. The deals that have had covenant defaults have, I believe, all been sponsored deals and the sponsor or other. In the deal, in all of the situations I can think of, have agreed to support the credit with equity injections. That is the beauty of the middle market we serve, where sponsors...

...still inject equity into companies, as opposed to the broadly syndicated market, where sponsors generally do LME transactions and jam down their lenders into a more subordinated position. So we are seeing support from owners, and we hope that support with money going in underneath our senior debt is an indication that they have confidence. But the situations those companies are facing are temporary and or fixable. But overall, as I mentioned in the remarks, the general portfolio is stable to improving with only a couple of credits that have had. Covenant defaults and the need for equity to be injected. Yeah, got it. Got it. Thank you. One last word I forgot. On, you could have, to your point in your remarks, right? There could be potentially quite a relatively large, compared to the size of the portfolio, amount of equity kind of harvesting over the next, call it, six months. I mean, not everything is going to happen immediately, but, you know, over... between now and, say, the middle of next year. What would...and you also mentioned that, you know, that software deals are starting to look a lot more attractive, and a fair number of the ones out... There, certainly the bigger ones, right, have maturities next year. I mean, is that something you could look to exploit the potential equity realizations and attract... ...segment of the software market next year, maybe? And is that the kind of redeployment pattern that's realistic? Obviously, if it's lower leverage, lower LTV and higher...

...spreads versus no spread on some of the equity, that could be quite attractive. Yeah, the technology or software deals that we've seen really fit into two categories. Category one... ...is people trying to fix broken capital structures. And a lot of those deals have companies that have some level of AI risk. In general... ...so far, we have not been willing to entertain those deals. So broken capital structures and AI risk, we are trying to avoid pretty much entirely so far. And the deals that we've... seen in the other category are new money buyouts. And the new money buyouts are happening at enterprise values that are well below where they would have been a year, year and a half ago, but also leverage levels that are... much lower. On a deal that closed here in Q4 that we did, that was a software deal, the leverage on the Whitehorse EBITDA was 3.8 times. Which compares to 6, 7, 8, 9 times in terms of what you were seeing a year and a half ago in the market. And the price on that deal was 6.25. So these new money buyouts with fresh equity coming in where we're able to assess that there is either limited or no AI risk are the types of software situations. We're looking for. And really, for the most part, those are the only types of deals that can get done in today's market because so many of the big players bought a lot of software at the peak of the market, a lot of software loans and don't have.

room to do anymore. So it's an interesting moment in time. You know, we always talk about wanting to not buy high and buy low. That's exactly what we're doing inside. where we largely avoided the sector during the peak period and now have an opportunity to selectively add a few credits that have strong underlying credit. Profile, covenants, and low leverage and high spread. Got it. I appreciate it. Thank you.

Thank you, Robert.

We'll take our next question from Christopher Nolan with Lattenberg Salmon. Your line is open.

Hi. Stuart, what are the thoughts on share repurchases given the stock prices? Appreciate it a bit since September. Chris, we're not buying back shares right now. We're working with the special committee to focus on the strategic options. That we have indicated are potentially underway. And if those strategic options don't pan out, then we could go back to reconsidering strategic. Share repurchases. But again, we as an organization and the board are more focused on the strategic opportunities that we see in front of us. Okay. And then... Should I read into that also that you're going to be less focused on growing the investment portfolio while this process is in process? No. Well, we don't know if the strategic options will result in a successful transaction, and not knowing that, we continue to reinv- the portfolio carefully and selectively in a market environment that is really the best market environment here in 2026 that we've seen in about three or four years, three years, probably. And we're seeing solid credits, good capital structures, good documents with covenant protection, and pricing that on average is 50 to 75. basis points better than it was last year. So, you know, the main issue in the market, even though our volumes will be up year over year at Whitehorse, is that M&A activity is not that strong. And Q3.

I think was flat to down from last year in the market. And I expect when the Q4 numbers come out, they'll also show a decrease in M&A activity. That said, we have about. 20 originators in 11 physical locations across North America. And that helps us gin up deals outside of the normal sponsor M&A flow. And we hope to get some interesting deals done. Hopefully in Q4 and or early in Q1. Great. Thank you. Chris, I was just going to add to that. When we paused this year buyback in Q2, I think it reflects Stuart's comments. Now, where again, as we do buybacks, that reduces our equity. And so we need to balance that with putting capital back to work and deploying that into newly originated investments. So, you know, it's obviously a fine balance. Thanks. Thanks. Thanks. And once more for your questions, that is star one. We'll pause for just a moment.

Thank you. It does appear that there are no further questions at this time. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Thank you, Chloe.

Certainly.