FDUS - Earnings call transcript Q3 2021 | Fidus Investment Corporation

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Operator

Welcome to the Fidus Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to one of your speaker today, Ms. Burfening. Jody ahead. go Please

Jody Burfening

the Ross, A and Web Officer. for I'd everyone. the quarterly attention details regarding quarter results. potential, Fidus With of the press cash the Shelby to afternoon forward-looking are conference of Vic, Chief yesterday today's Harbor Chairman for is Officer; Relations release Investment Investor Executive beliefs, on XXXX Conference operating thank strategies, the on results Corporation Investment goals, your joining and of financial call. included Safe call. press available and contain site Ed morning this us statements, release Investment Chief call disclosure me the Investment good you, including page of company's information will Fidus flows future regarding Corporation's And and Corporation. copy Financial to call morning, also statements company’s Sherard, the you earnings Fidus Fidus customary Thank fdus.com. forward-looking with Corporation's a third at like issued today

statements information reasonable be Ed. that, at Ed. set now forth Although or Commission. not a these webcast forward-looking company's morning, to risks, or uncertainties these may the I With the Fidus factors materially of of update of obligation results and are differ other over not the in and no Time November call XX, are of like as of longer revise result to believes the based XXXX, factors including, statements assumptions with on would guarantees these performance. to turn any to, and undertakes Good the but statements. telephonic future filings projections any Securities Exchange may management no as sensitive estimates, today, time accurate replay. Actual limited

Ed Ross

am well. Good quarter are call. and Welcome families, healthy on the our review hope then third middle our a performance and position. and cover quarter and call today's you conference to coworkers, friends morning at to results good staying update remarks, earnings end activity we'll in open completed will you, going I to markets. prepared with of our morning, the we I our Shelby everyone. Once of third XXXX quarter take an our all your third liquidity questions. our have views and portfolio lower offer quarter be and of your happy financial deal Jody,

attributable to share $XX.XX M&A or robust million in performance $XXX.X see activity began to a possess underlying solid per of net high year remained grew unrealized heightened share, at performed gain million of outpaced excluding debt incentive healthy or both activity generate strong share defined or levels investment third an of operating realized compared period year. originations our the and ago. positive a timing value activity lower and a this were from continuing expected, and outlooks. As and income, nearly and have investment quality that income, portfolio resilient refinancings opportunities any Repayments per NAV levels per during was portfolio middle $X.X flow flow losses, fee Against that to we $X.XX and which $X.XX million appreciation. for in to perspective in to market both the to closings. and quarter, well deal reflecting the Adjusted part we as business models investments high due term that strong cash net last long capital continue service that gains $X.X a levels of businesses and backdrop,

per third base share, harvested for per per in several with dividend as investments excess the portfolio a Fidus of we supplemental share million $X.XX $X.X $X.XX dividend dividend share gains we companies. sale special a share of a of in cash of had quarter. In addition, reported of equity $X.XX net and $X.XX per mature realized or conjunction quarterly

of The the $X.XX over quarter $X.XX quarterly distributed base prior per be on of payable reminder, a dividends per to dividend December in board XX, XX% each per a adjusted of fourth of a shareholders. of surplus XXXX per share supplemental the to XXXX. XXXX, a stockholders has and share, quarterly a of of a dividend for As the the the November devised base supplemental $X.XX dividend total X, December as dividend dividend $X.XX cash formula from share to for NII share X, the Board special quarter quarter. which record of Directors under will declared calculate is On dividend

lien Cardback prevention a Intermediate, leading provider in and providing of services a equity equity [$XX.X in securities, In lien debt. second Investments and Present terms first a for roughly preferred recovery equity of Card chargeback and common of and or in million] invested utility which the in total lien invested services business, roughly PowerGrid LLC, transmission invested in and in debt half maintenance LLC, debt common million $XX.X [XX%] ecommerce debt $XX.X portfolio and debt Acquisition, for second in of million million $XX.X services of companies and businesses. leading distribution, substation first lien repair Not in was consisted infrastructure. originations, and Services of was we new

stable portfolio of can diversified and investments part Shortly companies. the currently $XX.X $XX second debt common in pressures end of equity of companies, million on subordinated of $X.X companies. of continue a a with support on Acendre of leading long-term software Worldwide focus weighing of million solutions. transactions on in lien characteristics, auto the on M&A some quarter, Auto our new new the doing a commitment million we first Inc., remaining common portfolio communication These invested and customer of LLC, a is a provider outlooks. as and companies were business from lien Dealer see, to equity after $XX you As inflationary Holdings, million strong million CRM in first and positive based lien two chain in $XX.X supply of warrants many total to number the loan market. and provider talent Express of follow repair relative SaaS software management we and the The Midco, constraints demand cloud insulation based leading debt, in

fully In insurance, a addition, and we committed for $XX in in million we lien leading all customer platform across home expect financial debt technology services, vehicles, second QX. acquisition including to services digital to fund which consumer

the proceeds monetizing equity totaling and investments and repayments proceeds received of terms and majority subordinated second million in realizations investments. from from debt quarter, In lien third in the million with we $XXX.X $XX.X

full Holdings, gain second we of of CRS debt in of debt second of of with equity realized investment of on a in and in Solutions investment. on received of which gain full payment $XX $X.X We our over on $XX.X including invested $X was of in original ECM subordinated our XXX lien to in $X received full full on our a of full million $XX LNG and Hilco our our of the debt debt million our of received Worldwide lien realized payment payment debt We the commitment. debt on net payment million, of equity Allied million Express in and we $XX $XX.X equity and investment industries, our Indy, loss in We in $X.X realized our our first common debt full of on We terms received LLC, on in original $X.X prepayment exits, lien investments in LLC, rolled $XX a from Worldwide loan $XX.X sale funded $X.X million subordinated the payment LLC in a approximately million and investment. payment conjunction In on equity million million million million equity received realized subordinated Technologies equity on equity, million and Express, a converted gain in lien penalty investments. company. on million in common second In our a million in LLC. received

of we prepayment of net repayments $X.X and the reflecting payment quarter cost end a million million, on the of operations. penalty subordinated partially in Subsequent fair full payment that the debt for in received the in companies on Companies. XX Inc. their We six portfolio underlying including Tranzonic Routeware, value including portfolio at $XXX.X The was of companies by received and In active in cash addition, of received of equity XXX.X% we a debt appreciation a million, ended have portfolio. our offset penalty third to our investment quarter on fair $X.X our with quarter, value equal quarter sold We distribution million prepayment $XX.X full investment. in the in

returns. us provide both portfolio well-structured, levels the produce to Our with margin income to to opportunity a along of high recurring remains of enhance and reasonable positioned safety, with

current absolute X.X% for first of a percent quarter lien equity conditions, exceeding XXst. December from a debt exceeding of subordinated second favor on value portfolio. lien accounted lien With December as XX.X% of rotating basis total investments a and and both XXXX, investments the debt income XX.X% debt third remain to fair basis basis. decreased on repayments and to assets. of we quarter, basis XX, first the to second fair originations, investments market a the compared the debt debt portfolio total on value repayments equity lien Given and portfolio portfolio during for of XX% accounted continued of as to mix At lien shift focused of in mature on debt end, XX.X% first Subordinated producing into as on an while fair value grew the XX.X% the

performance. levels. remains to risk portfolio comfortable perform Overall, our to and continues Moving well portfolio at

of on non-accrual. XXth, have we companies not did As any September

their created freight playbooks component inflation response In portfolio and chain shortages, to material the investment unprecedented portfolio serve terms well companies costs continue supply assess on us a and in by pricing and Some these of performance track to quality to of several continues measures overall business help quarterly our availability. measures challenges labor of we us productivity stability work our a pandemic, and To in the health, basis. conditions diversified of well. having portfolio, light including

of ratio on portfolio track loss. the Under X portfolio's internal based At methodology, a September expected investment a a our investment an XXth, rating X the our weighted basis. value First, we was of is X average system. average rating the for fair outperform weighted is and on rating

we of metric the measured our investments debt total track to portfolio by company’s EBITDA. debt total Another Fidus' combined is to net our portfolio, performance credit which is of ratio

For times only X the ARR and third ratio quarter, this deals. is excluding equity

combined to aggregate meet to The is their cushion total our of cash measure company’s our us. to of track expense, have service indicative the debt which interest portfolio in ratio the we is total companies third EBITDA portfolio obligations

deals. ARR and quarter, this third X.X times, the excluding only For was metric equity

of activity third four a repayments mentioned M&A the the elevated levels outpace the I deal $XX year, we flow and deals quarter a the closed million $XX for early currently originations commitment. Because in the repayments the quarter. started in fourth expect we us offers As year. originations, originations quarter. before fourth of in earlier fourth to quarters. the quarter, the opportunity velocity seen to began further that end result the total last portfolio to originations strong of including we have for grow were each of in as Nevertheless, the October three we million add underinvested in And we high that past of of

term the would these business forfeit standards. term will are the manage have not to underwriting we rush us a and near to way in encouraged While long that opportunities, by for grow our the we portfolio continue

attractive our and value deal characteristics and goal well time quality I the quality preserving proven summary, and sponsors, with In quantity. investing confident always, companies term on equity positive than our experience investments in greater adjusted our places with As remain over outlooks debt with positions underwriting generating that returns a term from strategy capital. selectively discipline on risk of our for our defensive growth relationships and long us long of on high

Shelby? results. turn our to Shelby I'll over on provide Now details financials and call to operating the some

Shelby Sherard

Thank and morning, everyone. good you, Ed

decrease for third income our on with due our the detail Total a in $X.X million million for income capital to for gains fee QX, in incentive comments primarily results expenses, the incentive investment Our in the liquidity payable. the by gains but due provision, of $XX.X higher Total providing investment fees position. September $X.X primarily quarter three income. our approximately including quarter, prior close in Note fee we capital months of the offset $X.X commentary prior versus $X.X note quarter QX decrease In in quarter, $X.X gains view comparative tax decrease were of QX portfolio. than the purposes the fair ended given increase million $X.X fee in million million the $XX.X is was million and view in value accrued third accrued capital million fees appreciation more Please accrual. XXth, interest decrease million currently incentive million from meaningful to $X.X not XXXX. GAAP

capital expenses QX with were in Excluding in gains million incentive the line fees, accrued QX. total and $XX.X

per be as we the expenses annual reminder, approximately expense, incur quarter years. As to similar will higher which to in prior share $X.XX I tax fourth an estimate excise to $X.XX would will be

million million was million line of $XX secured million debt In unsecured As notes, outstanding of of SBA credit our and September weighted we the borrowings. $XXX.X our with of comprised debentures. average ended $XXX XXth, outstanding, X.X% excluding debt SBA We of of of interest million the rate $XX.X prepaid on million $XX debentures, outstanding on $XX.X of borrowings. secured QX, quarter

debt ratio Adjusted income X.X Our XXth per for three $X.XX times was $X.XX incentive gains or versus XXth excludes times NII QX September losses QX. per equity unrealized the was accruals of QX. to per or X.X fee leverage, as $X.XX versus in capital in ended Net debentures. September NII, and any investments investment excludes in or SBA months share share realized reversals which statutory $X.XX attributable share share per on which gains was to and

of primarily investments million months Kinetrex our in the recognized and Allied the $X.X Worldwide gains, Energy, September realized For Express equity we net sale three XXX. from ended XXth, approximately of

Turning now statistics. portfolio to

total our portfolio XXth, September of [$XXX.X] investment As had million.

investments companies process Difficulty] cost process the that six down. in of investment and the at on basis [Technical their excludes a in are the the of million sold portfolio average Our winding $X was in quarter, of portfolio operations end third are which

was yield portfolio investments September companies investments issue using of equity of accretion any. average average debt origination our yield but including an rates debt The XXth. discount approximately excluding computed is equity diluted with on nonaccrual, the XX.X% weighted effective investments if the in for interest effective ownership on have costs, X.X%. at We investments average XX.X% of of fully and Weighted loan fees original as

our discuss briefly to like I'd available liquidity. Now

$XXX.X down issued our $XX of XXth, and included $XXX of unsecured at credit fully at As $XX.X cash liquidity of $XX.X of of and rates of X.X% interest due availability million In of million ranging successfully balance cash of the rates. The we line to net resulting total resources debentures credit, $XX.X closing, September X%. X.XXX% proceeds notes public with in million October, notes our outstanding million the available liquidity from million, interest $XX million capital were used SBA on to and of available line of in million. approximately and to pay on XXXX redeem

$X.X one redemptions on of of of the refinancing, bond will In $X.X approximately account million. approximately occurred Taking of in Xnd, we costs the have QX the the the public requirements, month financing with currently debt we liquidity. notes QX, Given interest loss million redemptions, of notice bond have debt into the to unamortized on incremental bonds. expense on so in million November $XXX.X onetime on extinguishment relating approximately we deferred the events, subsequent a realized including conjunction

Ed will back to Ed? turn the I Now for concluding call comments.

Ed Ross

Thanks, Shelby.

Shelby, Directors of their for at now shareholders and Hello? there? will to support. over like Q&A. Vic the work continued call dedication you and hard our turn for thank Fidus I'd our and are the to Board always, I team As for Vic? their

Shelby Sherard

sure anything am. lost. not on we line if either. I hearing my not I'm I'm

Ed Ross

Any recommendation?

Shelby Sherard

technical having the that appears difficulties. operator It is

minutes. think work certainly need well, So we it. I But I can might unfortunately, suggest, -- to would a to we trying couple otherwise, I more call they're the for on hang mean, on

But So hopefully, Q&A. Ed, the we message out. to for on a have call. that we'll get But to are allow might folks figure back we operator it trying to did adjourn the work getting

Ed Ross

sorry about everyone, your for Thanks patience, this…

Operator

Instructions] Mickey Ladenburg. [Operator Schleien comes from question from First

Mickey Schleien

Ed, you in would you on effects the How higher market I obviously equity private if virtue. is market the and guess with available. describe the is debt intense competition that competition, middle so lower there of a up any, capital where patience much middle operate?

Ed Ross

we're just last on obviously competition influx a the out capital know, bolts we've the there accepting some business we capital -- is unnatural and the months, over nuts win seen it's some my there. fair From focusing seeing there's huge of of acts not same like. not similar. again, like is situations business. lenders entrants. we're XX of to bit It's we the definitely well know perspective, and term it's What lower our the but It's so and And a cases, doing in a bunch players yields. focusing what of And industries sticking we is to long new on

perspective, it is in leverage line where so well. when very at was pre-COVID look similar I And lower. think as times I I'd pricing pricing at is generally But a from it a little levels to pre-COVID with say, levels market

think I typically about think which when in high this returns, adjusted So higher is equity I about capitalization, valuation much environment. risk

think haven't in market, I quite returns importantly, And the the middle adjusted more risk the good. terms changed. are lower

think about when things, those covenants, still in real think I covenants, think, from market terms, changed our think that perspective we're covenants, maintenance primarily in. when the are So a I haven't place, all regarding real real and about I playing positive I security,

Mickey Schleien

the the good start middle those folks there's chance given down road. at to will that look lower that That's news market always a

Just one follow-up question.

over value performance costs. the if and appreciation. see mistaken, upside level portfolio’s at not your valuation -- of quarter cost terms You a drivers record of the do look of company's valuation you you market those portfolio What gains? And at now more in when And is fair main strong I'm had another over unrealized trends? of are

Ed Ross

think, in obviously, the I by it, driver being things, a look processes. long also, we had drivers, I obviously, equity. some M&A but quarter million being, that underlying $XX majority that large was this the by biggest we portfolio, appreciation when certain shot the so of at three visibility driven of most company of performance It's got into

now a into so And we but know up appreciation something paying small things, take people the that quarter. calibration, market to every that's rationale very people about great are it's quarter obviously, are talked you've lastly, for a I quite the -- right degree, And for franchises, -- impacted this that account bit. heard that that and but

Operator

And from Raymond our next question comes from Dodd Robert James.

Robert Dodd

quarter. repayment the the levels in On

Now, I mean, think, standards, year-to-date slow your XXXX. mean, obviously by and your payments. below in I down? does quarter Frankly, this just really the historic high. repayments be have that number side I combined by exceeded I the they activity level on now to really, pace new swamped were got seems but originations mean, XXXX when just

Ed Ross

and hesitant literally this, perspective, they surprises, we our say happened in to heard repayments last think in a couple September. I about quarter, and September from I'm there some surprise, were September, because in

to we hard relative a it's predict would in talked least at from the tell to going be repayment you about is, past. like perspective is I to a QX quarter. last limited as So quarter What is we today, feel

in or of M&A we investments we transactions portfolio. realized also what is just were high a velocity near taken debt which don't fair equity and I extremely recapitalizations pretty last think has And we'll the the a number so also we've say overall for a out, I tells had activity get refinancings you where think And four And quarters we've strong row. market had anywhere I would where quarter. obviously, been but

we that invest always we our storms. businesses the don't various quality weather been the anticipate, want that can high can has but anticipate weather or approach to So and storms in

a going getting we're feel And reinvesting repaid. Obviously, challenge from for to our discipline. that and creates stick good us so to of we it in terms about perspective,

making about industries sticking we majority We self the and to are the and well. know are sticking originating that going investments to how we of our we’re business large-large

you degree. do and slow I So repayments is outpace that able originations I be And we'll tell to what and think this do in February. down quarter to quarter the this it'll think question will

and of… So seeing seeing, that's I what slowdown terms in am I'm a

Robert Dodd

next with characteristics kind renewed? I your more values mean, -- as loan firstly has is expect portfolio question, businesses? that capital up period portfolio, you're same I significantly. the so be going gone the Is originated year to to say you appreciate and such et of portfolio new seem than what much at that that. there's yield to next in seems that turnover businesses, your maybe think now out half we recycling, little the roughly obviously, newly over even type you with of and have might not With more have the or originated, portfolio so relatively that say second? like and cetera, with or there? should kind And much doesn't lower, has months improved I been have since like think that was follow the I more other bit. so payments, new or leverage to that The prepayment would the of be XX can ons, it’s impacted many been COVID it really so it indicative stayed this being capital that portfolio the only et Is of things of about of speaking, over a other then a Mickey's -- to thing of changed is fees cetera,

Ed Ross

A lot there, in questions of Speakers]. Robert [Multiple

an first, it's let anomaly of a So be to hit leverage me little bit and honest.

that to had cited one time. our long for a particular very a ARR very our I times It's we've number. And portfolio was candid, our and balance distorted excluding by company. in but really net a now it’s when So sheet, much larger an on be remarks that's prepared leverage, in large in deal X several loans average

name, average the more this more X.X of indicative be you leverage which times, if is so the like would And whole portfolio. excluded

to think, you our I leverage, environment, little that Prepayments think And The don't always touched year? that in I I materially. so on from the piece I honest. material, quite And they what like Could values go puzzle, Loan frankly, perspective. But next I this things of has prepayments. think are would to to there. a be don't yes. will changed it's improved regard be say is only that bit down think a answer with to

think and debt a those maybe on mature many part prepayment business, think investments pretty were of But have lot it you I and of be fees lot to remain little not bit we it's repayments will a is can't the be that will were tell the sizable. prepayments of a business part the of I lower lower. but I going

fees, you do, be good I perspective. I lien. year. have as depends you an an So originator, obviously, companies doubt think as healthy look I a we forward active expect expect first it'll don't it activity year. with But still will -- know. of a an expect I as portfolio sold, is know and I levels, next fair is I if We move active be it fees active from But a our obviously, but income be that's on so we to our and to activity to fee know thing be know year, There somewhat this would it'll still in levels. that number that year. as

Operator

you. Thank

Ryan Our next KBW. question comes Lynch from from

Ryan Lynch

And really my your far next goes. taking my has as with, do question nice quarter. questions, and to Thanks first equity as for portfolio

high investments those that assuming those market in bit let question third equity of inside investments equity consider would my basis, actually or the active million grew given consistent equity it despite quarter. to maybe But continue the You is as saw how that I that's given would quarter. exits. not was And please But of continue I the but to happen, have $XX that if you expect was, a monetizations guys in would strength the portfolio, this case. know not presume at you nice as today to you exit fairly a me

like any the saw quarter, my is didn't the of because investments continue again, And so equity course which in done a normal early to equity you would to the in Or in we guys to XXXX? basket that, or portfolios, you have? off a question of third of thought reduced your in be, given the strength good other portfolio monetize just actually positions being what similar kind which consideration is is equity these process problem had minority to there selling

Ed Ross

hit do portfolio. try think, comments, in is is, the expect to equity bit which further we just -- online of do we in the we and have year alternatives. evaluating that now I And is planning here strategic QX. meaning companies to that portfolio a from beginning evaluate are Robert with that little alternatives what half next spoken I your also And first the finished what would I to have realizations others of you of about mean also have strategic tell I specifically

think very to healthy M&A our hopefully, levels. the we to be participate, some activity activity will equity a market to those some but we degree, And degree, portfolio to that active. in that -- going believe continue So is in degree,

is and like a we to you I that's So previously. I assumption positive if think will, of selling part a correct. your think portfolio, With regard the did that's

appropriate definitely feel we of the about actively moment, we're it's, idea not the we again, that. option. think on things. quality we I it's as it's talk rush something good I that we We the and table, But on the have that at table. that we like equity that we'll and doing not idea been also But the to actively time. portfolio and we our an -- not -- also on something at tell it’s want think the it you, that don't is is consider do will But right are about I working now.

-- as would balance, you a to investments balance monetizing know, to you trying strike there's we right hit perfectly. to the right equity it and But never that, we're we're So trying strike going now. with to regard but well

Ryan Lynch

all done you up you other a instance, procedures, considered I trying a But maybe the the work investment larger use, that, you maybe kind a sort have maybe that or to process underwriting not done moving guys moving like kind while any to in any bit. to Robert, had guys companies, with yield maybe areas, metrics bit but in been considered widen start increasing you was to question you companies to we're of or underwriting a The funnel prepayments or have offset this you like moderate will those why maybe that, different just hopefully, of you little discussed to to why little of not? of kind moving these of elevated that this, repayment. level bit capital by loosening of of the then allow necessarily Have slightly slightly put have little but for of actually to the guys we’ve quicker guys larger lower some of of activity, have

Ed Ross

what in middle would space tell we and are play couple we or just of larger more argue middle that would are you investments. companies So several just I the middle companies have do is that a more lower I market market market definitely

basis, got do again, an on that is opportunistic typically, good a got, that relationships where in knowledge industry we've we we've differentiated. So and view

and financing three, the for things widen the I more instances, a done there. participate one from industry a there enabled on years, is over to we've and last would software four the is developed space of perspective. also perspective the focused the do we funnel expertise So say, and real tech

deal I doing would flow extremely is we are tell strong. our so And you those things.

time. to the as we much deal both that's that So on we prepared level honest, knitting. about in the well good is the set. Question here to here. and move we We set slowing, and the same as as going quarter. do very sticking opportunity to QX business of We're that as time, But I about to dependent over of remarks. we discussed see, executed growth opportunity be our again, what by sticking repayments. in slow we're from do fourth forward how our to here trend closings, see feel well be the And in that repayment expect But have the we at feel good

in, if say but disciplined switching a gradual obviously, you just you about manner are gears, we opposed just lot to the a So of will. very would talked things doing and I as

Operator

from question next Sarkis comes B. Instructions] Our a Riley. from [Operator Sherbetchyan

Sarkis Sherbetchyan

get You we guys light the us long you I in to that you're leverage it'll And as how how target kind slow down leverage the now to can in trend of just if said that you you step do of of of remind current target about comments environments? earning some take to forward. moving your you've deploy think repayments back, back levels? into plenty And expect availability guess, to thinking have assets. then

Ed Ross

the next, over this nine is I X:X say closer of it'll say, three What more but there this don't I I'd we get start happen progress. won't months, a some is, to And quarter, getting quarter think we make where to think would I we'll leverage.

first more are And X:X, about trend we comfortable to to that's kind that operate talked X:X, it. more quite And and of migrate expect a especially to, a we're so we comfortable obviously, at continues our We're of about, frankly, doing something and than and regard to leverage today positive goal. portfolio excited portfolio frankly. quite not but that's it. always more we've continue, little the doing it's where about leverages comfortable lien towards With as cosmetically target

two the you recession funds. SBIC point and leverage funds SBIC X:X with the some of we went As our to one, are know, a great levered through at

good a don't to generate something returns, there's as we leverage about levered is but so concerned don't And think leverage. -- And need push balance I basis. or we be a not cosmetic much including over to there's we're on

good next about a it do that's helpful. Hopefully, while, see progress But making number X:X so, here towards talked changed. and think that over for for number months. that's is don't quite I how we we three us and And the nine that's a to

Sarkis Sherbetchyan

And on just to be basis, that's clear, correct? a X:X statutory

Ed Ross

More GAAP basis actually.

Sarkis Sherbetchyan

of environment elevated think more just strong, the you kind bit of as out about activity Do of it's in? we generally cadence the space at And norms, of of given year. closing year. just but and going think a Clearly, you historic as next play look a next liquidity kind in availability the cadence year than be the we into the little robust the to kind expected

Ed Ross

you're sure, QX? about here talking in make to Just

Sarkis Sherbetchyan

there the into and seems and to are just deals continue. QX, like out beyond No, is there looking XXXX. of pace kind of of probably just still a going deals It velocity liquidity lot of moving the

sense elevated? a be just or to So kind somewhat get think you things it of to want do cadence your for, will return historical

Ed Ross

today, but be It's a of do a quarters. -- well. great elevated we ton very going seen performing not question issues what all But economy, I have But and performing nicely. have here say were despite nicely that well I -- probably is all to slower is recently continue levels, to if a just it tough I the we're out quite would discussed, over are historical to is, one is companies to it there to And answer. we've But there relative as today. lot what of seeing growing come to last four know. growing the and a and well is outlooks and projections that think growing I'm The answer what it'll we question, down is companies perform quite we

a so activity. sets of for bit up And deal that fair

that's fall or is we’ve don't last four where think be norms, but will so And quarters I out the in be above would it where been I so. historical it’ll

Operator

showing you. Thank the conference and further to like questions the remarks. over Ross I line I’d And turn back Ed from closing am any phone to for no

Ed Ross

to March us our look early great and speaking forward and call a Have Thank you, everyone you in day great with you, joining thank on XXXX. quarter morning. We fourth for weekend. this Vic, a

Operator

Thank you. This for call. you concludes your conference Thank participation. today's

a have Everyone, disconnect. day. now may wonderful You

Fidus Investment (FDUS) 5 Nov 212021 Q3 Earnings call transcript