NCDL - Earnings call transcript Q1 2024 | Nuveen Churchill Direct Lending Corp.

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Operator

Hello, and welcome to the Nuveen Churchill Direct Lending Corp.

First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the conference over to Alona Gornick, Senior Investment Strategies. Please go ahead, Alona.

Unknown Executive

Good morning, and welcome to Nuveen Churchill Direct Lending Corp.

Call. Earnings XXXX Quarter First Today, I'm Kencel; Vichness. and Ken Chairman, by Chief Financial NCDL's and Shaul President Officer CEO, joined and Treasurer,

investments, may Following should forward-looking will and questions. Today's our to uncertainties and known opinions to we of to and risks, forecasted prepared from the that risks, your results most undue These factors predict. our projections take of differ ask reliance are but subject our and We the future other and and not be beyond factors. or unknown call on current with based be These factors, statements recent forward-looking are refer filings current Such statements. beliefs risk placed expressed statements. some available include and our our guarantees you are our assumptions. other important estimates those statements not uncertainties industry, rather about forward-looking to and thereon. SEC prospective which company, portfolio for involve are difficult not performance and historical company's may and materially facts, Actual are statements remarks, control the expectations,

be future company any Any today made do should not at any them. assumes statements forward-looking on and forward-looking undue reliance guarantee not no obligation statements update placed The performance, to time.

Investor Our earnings release, of section Relations the website are supplemental our ncdl.com. earnings on XX-Q and available at presentation

to over Now call I'd like turn to Ken. the

Kenneth Kencel

our In the to thank on you, first list and Alona, joining Exchange. completed on York call you, for IPO Stock New the Thank us the quarter, we everyone, today. NCDL

our platform. you of and some be Welcome future that to existing understand new we such, As to both investors. may

us here you're today. that thrilled are with We

the brief going performance our quarter. to provide snapshot of Today, I'm a in

year performance, to to worthwhile that investment that of supported over are since to dividend representing momentum growth cover X.X%. by I'll carries investment on middle-market a attractive of Churchill's sourcing reported I long-standing for broader are investing which strategy our we've our robust unique performance. I'm value, briefly NCDL, strong investment our to model at and NCDL on Shaul last an a partner is annualized market. focus structure, think turn results, dividend, an we leading that with first our operating will income it in the environment net and middle investment yield quarter to activity seeks demonstrates corporate Shaul that pleased delivered Then and net equity financing the private more in U.S. we in. quarter approach strong detailed asset what best-in-class in who it's companies, share and call. the our discussion start the first cover solid sponsors differentiated briefly

market Asset lending, investor U.S. our of sit a Nuveen's company world collectively, on equity business. our funds, is investing a the advisory investors TIAA's focus direct to market commitment significant junior which of middle middle approximately insurance among private and many for middle-market of of asset of highest Management is our integrated Key largest management and within and This activity co-investments. one is And manager is rated the underpins In in capital with capital investment in the $X.X Churchill private Churchill and U.S. private XX-year capital. largest Nuveen equity we all Nuveen. the boards. credit manage sits capital manager strategy asset their markets. Churchill private history parent the our platform. senior fund in trillion committed strategically U.S. TIAA, to billion we in and companies the private TIAA for exclusive is $XX

sponsors. ultimately fund middle sourcing advantage, an to funds, These commitments advisory LP boards. our which XXX market top provide XXX of Over and commitments to and sits over leading equity number deal has quartile information a investors. of XX% over including distinct contribute Today, advantages, our U.S. relationships deal in advantage for high-quality private equity private are a Churchill to flow

private our IPO its on X successfully years began over BDC, Direct which credit York XX. Churchill ago Exchange and flagship Corp. investing Nuveen the Lending Stock January is completed New on

is and billion investment performance. at an market-leading entire businesses $X.X with companies XX.X% XXX portfolio with U.S. portfolio that $XX companies our highly diversified average are Our on is of end. positions portfolio only financial of of top middle-market the our With EBITDA accounted of XX portfolio million, annual companies portfolio history our for a large focus traditional quarter solid

and which equity-backed benefit businesses, We support by are on exclusively firms. leading capital provided the from capabilities focused private equity private

loans equity co-investments. First of and of portfolio, with debt along XX% up mix the junior lien small make a

In of one maintenance strategies have investments covenant financial at place. in fact, XX% across our least

at factors and important NCDL's market are conservative coverage strong us approach. There very and future interest credit X.Xx investment selective reflecting core position Looking continued key X.Xx has of several portfolio total first that for leverage us middle loans, lien for metrics, a and our net only differentiate of growth. ratio

strength. First, of a a opportunity. described the just By unique and large-scale global we a NCDL's asset believe real structure premier and that institutional backing alongside corporate with private NCDL attractive investment investing is an management I've offers franchise, credit manager

believe core BDCs we one market. the largest focused on middle we are Second, the of

competitive space broadly to the this in the volatility Our at market. loan insulate and from syndicated currently play consistent dynamics dedication helps investors to

Third, diversified we in marketplace. are BDCs most among the the

track last sourcing been sponsor, disciplined differentiated. size it and highly origination industry. We to our to This portfolio critical is by be proven our position have has successful a for and constructed model the approach balanced XX and years, has long-term record. Fourth, our

credit for overall on quality. our a selectivity. And strong invested partnerships XX with team us relationships that grounded of level process allowed a nearly many these strong In fact LP equity rigorous of has in private turn, lastly, firms investment worked we deal the investment have these to years. and high are and maintain investment flow have Our drive focused

our which to underwrite, higher As of mindful positions burden interest important well to structuring new structure are something and borrowers, conservative with as that lower covenant approach leading influences power as both Moreover, overall we leverage, are and our capital with the we pricing market for disciplined portfolio tighter establishing existing companies for we in margins. new facing high higher transactions look packages. and very and the equity more entry, companies barriers

how And qualities investment, should deals our we an come no expected, we're culture than the remain look in manage value our a X will surprises sooner the environment we've in proactive of new teams rates Once down of even are portfolios. attractive. this Communication biggest made more and we in approach. underwriting

call to about bit full want are what market first talk a the over environment. market current broadly Before in force. the seeing I the Shaul, syndicated I pass returned little loan quarter, we the in to In

competition result, This prior a range renewed access led greater a to in XX banks competition debt larger markets than the spreads they As middle them public on broader financing of a the underwrite primarily gained and to drove market. material months. market. to the that middle deals tightening had the companies those and between options the in that This the upper lenders direct focus in upper available

and with the all-in market class. When looser limited our have in yields nature with returns credit. still remained market. maintaining still scale in and still on longer-term believe deal discovery And believe the make private middle M&A this relative number the premium averages and have while however, in XX% unlock to focus traditional and the relationship-based for asset will trade-offs, market in NCDL, attractive dynamic, That's as the impact began in the XXX and range, market with well that risk-adjusted to middle in of BSL partnerships private in core direct first Leading particularly primary our lenders commitments their remained put still faster the we at quarter as where price to pricing managers LPs. drive equity point confidentiality very closings strongly exits market, fundamentals faced in in the basis versus of core and firms we from sponsors the historical sourcing activity, terms part eager equity powder work, of and and muted. given solid certainty larger options, to execution credit the With private dry XXX made offer scale pricing. between the credit, middle attractiveness target private cheaper to come as an differentiated insulated somewhat We can wide sponsors are historical the remained the deciding the the market with of speed, be the more private of overall, activity distributions why execution

quarter, credit as more flow was now were markets. and refinanced deal that quality in sold increased sidelined the companies While are in the liquid first being mixed

discipline are credit As a result, absolutely selectivity key. and

the against balance backdrop interest higher of to XXXX We of expect more for be same the longer rates. of the

positioned believe the landscape, well navigate credit evolving we for success. we As is NCDL

to Our from or focus, private us BSL volatility to credit provider and as be middle market lenders enables market leading on upper a direct that more and faced market, market. core are overall pressures insulated the structural focused more by the the pricing middle

opportunities remain combined sponsor over flow in us equity to equity market-leading over investments choice large significant and remaining our finally, of portfolio position and performance underlying our lender scale with and LP contributions companies very community Our growth business us total deal middle-market XXX financing have financial in drive drive structural approach to private track to very with proven leverage, models. companies a refinancing of a that have to enabling and record continues stable. And and our significant relationships private growing in selective equity disciplined protections and as the U.S. XXX of

our degree today's in high a ability our current have risk-adjusted of We investors environment. investment to strong for conviction in deliver returns

positioned at strong overall investments to well pipeline committed I'll now of over yields and selectivity at to attractive a hand high it structures level the ongoing across of and market investment as that And our Shaul. we levels. evaluate maintaining core opportunities. And strategically are remain We source discipline are middle compelling we to

Shaul Vichness

joining and results. to you, for us Ken, quarter Thank you our all review thank first

the equates our And of a of regular we income total quarter approximately $X.XX per income net to yield net we realized earned the $X.XX April, had end NAV. in We to annualized share. an which quarter of bringing per net dividend based investment of For unrealized dividend our quarter, share. for $X.XX per gains, on X.X% paid $X.XX and share,

$X.XX to dividend per of July payable of Looking quarter forward, of share XXXX. on our for June of XX XX, second regular shareholders record has XXXX as Board the a declared

the first our IPO. post of declared special dividend dividend XXX, IPO to $X.XX of our at dividends This share the has dividend, regular Board XXX, May addition of dates a we with shareholders record XXX as X special with In special days per of payable our time also of XX. to $X.XX together QX dividend declared the of and is that XXX record

a supplemental us higher paying earnings program the with over operate NAV. As benefits excess to us the a to dividend that well grow above shareholders reminder, portion current of allowing in we our intend and deliver out of as environment a to sees dividend, regular our returns as the

together leverage $XXX IPO, X.XXx. over of range remain target end the we as of Our within X.XXx to portfolio and the our the our debt-to-equity totaled quarter the million. ratio to ending goal with of repaid borrowings the private X.X portion approximately modestly of was the range of target at relever capital year proceeds of which XXXX We on X.X course X.XXx, final to a call below the our of with track

This as unrealized to of by Our as valuations to increased well and a was as $XX.XX relative our in share net further portfolio net from over fourth income tighten was valuations increase by company, market losses, the $XX.XX again increase share end saw we during the quarter. we the modest placed driven quarter. share including primarily nonaccrual investment on our asset in the earned one above on per This dividend offset per increase spreads regular per quarter. at prior value which

million. XX Turning We new approximately increase quarter-over-quarter accounted an during to fair largely transactions assets to the of originations, in value for the the of quarter, $XXX $XXX was portfolio. of approximately which attributable had totaling done million. our the increase This

benefit our portfolio the of in scaled XX platform, in continue companies We growth within deals which brought from and the to transactions for totaling mature incremental million. $XX approximately form existing

activity full for on million portfolio In term X million. deals $XX and in somewhat via $XX as the loans acquisitions. Prepayment active $X continue moderated be repayments growing delayed had to our We on quarter. addition, we during roughly draw saw million partial totaling prepayments drawdowns of companies our another

the we a the quarter largest very As of of saw our quarter. the talked in incumbent our XXX names positions XX% and we've end, first as well of great X.X%. position ongoing financing at from and X.X% companies. reduction about, the Prepayments totaled ongoing quarter and assumption look remains X.X%, representing lender exposure of X% XX us to portfolio diversified, gives grew our quarter the below opportunities at the in value a the portfolio for only with as it XX.X% portfolio per our fair Overall, only top our fourth

down originations quarter. were quarter, the a is seasonally new compared While typically fourth slow QX to

amount deal investments And incumbency quarter of as continue from We we recent of our repeated discussed, from was quarter which I quarter, million in not the saw slowness meaningful saw we the amount are that the pleased the in of in report million $XX originations quarter driving the XXXX. to that the XXXX across benefit most par XX flow. to committed that to as our volumes grow $XXX portfolio first in of new this a we we in is to first

In of portfolio portfolio. the the the XX% in in heavily represented senior X.X% the remained mix, the of debt. fair junior terms quarter, of at weighted asset loans, end co-investments balance of and at value towards selection was equity which portfolio and the

call, the of including upper call expected the allocation readily into our As we invested the during proceeds liquid modestly portfolio as middle last we loans, of market senior in increase our loans capital more to transactions. I mentioned final IPO and more quarterly senior

target quarter This IPO of at we senior percentage to that with by XX% the to the played from reported in middle the balance opportunistically the we investments XX% on of the of as with we senior loans and during XX% out were portfolio the with upper we we the communicated time during We we single-digit capital XX% allocated allocation range. Roughly IPO. the the remain equity call equity our at the of loans committed last that and our our debt from X% to some our year-end. increased as roughly in saw raised junior quarter that in deployed of made co-investments, allocations staying market the

market As than middle segment. tighter there Ken spreads mentioned, were traditional the in

came points, we secondary par. In new acquire of able to saw averages. roughly middle that basis interest that aggregate, from attractive on the weighted middle origination However, as down majority the relative of Spreads number well market rate investments opportunities a quarter. the market below we approximately to average basis but attractive in with upper were market the investment points, made the tightening coming during the in by traditional tightened XX remain historical XX

the nonaccrual put in one portfolio. risk terms watch portfolio percentage which and on company In numerical The portfolio, level. X.XX% of or the of X.X% portfolio to of steady a on the low worse, value with rating quality X.X%. Overall, the and status fair added list, shape the of our on X.X% with slightly list define the of risk with remained very investment credit assets at portfolio the grew X of investment portfolio was one our is weighted as company to capital the value percentage average watch just our fair portfolio during the of internal nonaccrual from portfolio, quarter-over-quarter rating quarter of watch One a the remains the good resolved. historically our list quarter. at This during only junior represents we

remained debt liability secured quarter. to markets. We during activity our Turning active in the the

points within XXX SOFR weighted and debt carry debt of has pricing this SOFR transaction had basis which out on financings, average we average cost of to closed the last weighted our transaction well subsequent call QX. as our we CLO-III CLO XXX of our NCDL. basis of the points. end third plus During quarter, We a NCDL the of plus discussed a other priced fits

optimize continue near-term financing structure that we place arrangements more the conditions have of expect that and on to the forward, continue accessing focused market debt unsecured in as our year market Looking during no set of liability by market diversified to course We we remain attractive. with this becomes ensuring a maturities. stabilize to

and special a locked with and XXX locked over and release coupled some we up XX, days. for Lastly, lockup our of shareholders shareholders of put pre-IPO were full of payable for our shareholders, dividends thoughtful up place terms the quarters. XXX as Affiliated a IPO, for reminder X a staggered were pre-IPO year key in just nonaffiliated

lockup off XX% With float. public tranche April have our the we doubled first nearly of coming on our XX,

Additionally, under turn now we the XX implemented for to May that Ken our share commenced repurchase IPO. remaining X, back million, it program utilized $XX.X million days we Through have post approximately $X.X some leaving closing remarks. program. I'll approximately

Kenneth Kencel

Thank you, Shai.

excited outstanding. represents at are have looking key And NCDL will continuing we such the Before been exceptional. a our first is nothing engagement are we just great short for company. a now start and operator what it and to dialogue. I thank but reason are the as Their to dedication about appreciated public want I a and We're your Churchill. get to for call Q&A. off to here really NCDL. over have They to work hard the team why quarter questions, ongoing forward turn our They

Operator

[Operator is UBS. from Abraham Instructions] question first coming Vilas from Our

Vilas Abraham

into commented new you rotating you're into to the that thinking of You are $XXX context the market in secondary How market that just next focused direct was put as that that about out portion over ramp Can on? BSL? in deployment you on the What you core of guys fundings? in million the middle several up. quarters once

Shaul Vichness

we of at it the talked deals question. that again, sort acquire could discounted basis it's the to daily a were in Thanks broadly really in Again, really sensitive market on we about at about of the relative average we we the And Vilas, secondary, value invest in the of BDC. market. We the assets par not looking that in opportunistically bought environment that as for at represented current a XX% looking all the that during the syndicated to that Yes, out. quarter. again, refinanced about, might purchasing so Yes. Shai. much very upper sort above space middle par. to Obviously, at what's on be accretive think assets price being did origination then

that middle again, to more BSL of So upper full opposed XX% into kind liquid as deployed loans. market transactions liquid was

proceeds capital that part time. to over rotating terms our in question IPO of right, the as agenda, rotate then sort our the in putting of from second final of The of of cash terms to well plans was the always on and your call as work

about, continue very to fully year. about have we good market traditional talked the and of we course a As into pipeline our to over ability the robust vehicle feel middle ramp the this

Vilas Abraham

question. Okay. higher-level And That's then just just a helpful. maybe

now quarters? maybe some an with Just stronger the turned the going just for you sight is been odds pick It on deal this line there's a given a in feels sponsor like think could your of be. is that little really bit the to sector-wide that it than a to you disappointment little here world, activity kind up bit of expectation into was comment bit hoping QX, that coming out over little

thoughts looking forward? So just there curious your

Kenneth Kencel

Yes. saw And you. It's interesting. solid last Ken. actually great to quarter. We hear order from It's pretty

the ago, at activity if overall QX up actually look market deal you a stats quite year -- certainly across look our at activity, traditional you If across a bit. to relative was origination rental platform

amount not coming quarter. I in increase overall, deal out activity. this saw felt is first of was new of solid But -- financing a portfolio, was say saw activity Now that much was what's good add-on a There that our of we so would related. very a activity. we refinancing a M&A bigger portion fair interesting We

fourth was surprising. but not the Now not quarter, deal activity that's as active as

most our would continue to activity. pretty fourth 'XX the to that quarter quarter no not interest the stability went Our regarding improve as from X think terms goes deal first and comparing to were this we cuts declining as And rapidly certainty But first typically active significantly we expect that 'XX, quarter. year-over-year. we going to not rates maybe quarter Well, X in consensus would year up say is be to of new rates view. may say cuts certainly Certainty around I year. interest cuts and rates there. X as up further, expected, I'd is cuts I to on

equity I modestly firms the private out would year, over we think look increase. the of as to expect course activity the

There a deal that dry we private is with. equity out obviously firms private amount of powder significant there, equity

equity private many a capital is As team, and and in get That to private in deploy equity capital. certainly firms, know, through our equity big dynamic also us telling you we're funds. private junior back anxious LP that

to so to normalize. more certainty expect we of during course as would continue year deal regarding the to And improve the rates activity tends

Operator

Instructions] JMP. next [Operator Brian Mckenna Citizen coming Our question from is from

Brian Mckenna

on did very question credit a during But you company, absolute. in low just remained quarter. the it's quality. one Nonaccruals Maybe nonaccrual add the

a more little past bit this? over So months. been can other you've XX nonaccruals resolve you just to couple able to about And talk the of a then XX

the what's on positive resolution for a expectation So this nonaccrual? new

Shaul Vichness

nonaccrual Yes. Thanks name add nonaccrual Shai. we question. quarter. only is one the did in a Brian, for the this the it's the to portfolio. list lot It Obviously, the

So you hallmarks of at level about strategy, of our think position the one diversification them. the is again,

problem, So portfolio. have debt when This a position was we our it's manageable junior in problem. obviously, a

just what So that's for worth.

transactions to dedicated resources work like the positions, getting us had we with on sponsors. with of Again, do the We our focused all resolution through possible. we right, these best

work obviously, days comment equity LP we heavily relationships with continue leading situation, private shareholders. but of invest, When the goal have value how our early we firms. very the part One on in equity lean we it's here, portfolio, about just right? think we a through obviously, of private maximizing number the for So that to large very junior into an you sponsor as of the

the with capital relationship, of junior the that investments, have we business go this virtually further our where same we our with is it's the sponsors equity into LP know so firms case when well, XXX% private equity majority investment. in in the senior structure, down debt private the with that activity, our vast is our lending majority If you think about activity, we

when think obviously, that advantage situations one. troubled gives us, through this working an like we So

mean, going to here, not say but I'll now. our is recover hope So now. value, what that that's I right to maximize say obviously, we're much more

Kenneth Kencel

Brian, it's our across would I add sense a seeing you of Ken. to portfolio. Yes. just we're more to what broadly that, just give

we investments as As both capital you have know, well equity. as loan senior private junior and

portfolio companies, middle credit quite overall, market seeing any good. quality -- evidence situations. there say remains no But isolated NCDL concerns. examples rare. of very we large of very a situations And significant believe that, would or We are is very I certainly, we're isolated certainly a So deterioration of good example of and

So credit feel about good very quality right we now.

Brian Mckenna

And Okay. just bigger Very That's helpful. industry picture great. Ken, then, a question.

You've been events conferences. on road and number you've a the bunch, at a been of

you've are some over questions of use on anything how to the some share industry in of ultimately time? then stands based particular And been Is So or out is the take and recurring and within the there dynamics just in receiving? that the within what market market, that? themes positioned NCDL perform

Kenneth Kencel

new I've of I question. the Thank dialogue there, that regarding No, great it's many the One of know a talk of and managers, large-scale questions most couple of positively say obviously, kind Milken seen. had managers a now. think answer. I'd point issue a I themes some actually all the just I of think ] and you. has we out say we're us. institutions institutional of become to for investors and big types a seeing. with other I'd a questions credit very lots things and [ was Yes. scale about very and couple themes I I of they chance to lots get is of at overall,

reality middle market, transaction $XXX a and to if full The traditional to opportunities. difficult with for will, able do very that. not is really commit $XXX ability scaled firms frankly, and the million provide the there of per million, today, you the today to that top to a invest if new solution be be are platform of the can in that transaction at handful only And to you're queue,

theme. an is So I would increasing say scale

capital raising So new that. to very important is

So begets And obviously, demonstrate opportunities. capital record, begets need in a strong deal do that, to right? record new order you track raising to track

obviously, raising capital a both terms to of good very great track institutional very another about yet retail standpoint. capital We're that. is we from deal. have scale So in solid on from and continue big a And raising to success investors, year feel have

see is don't a leverage, to now, deals LP the ] the on fact can very turn in deal, thing you seats, right say, differentiated XXX-plus ongoing industry XXX terms relationship. a the of or for thematically relationship, Second really I out because anything, we not huge find would built-in that advisory in that sourcing are whatever, basis, sourcing [ a have X from X the sixth we and selective. fifth various for but And our investments compete, down of advantage the difficult reasons, us deal a if very will odds board if [ and that connectivity we you're just be row perspective, I if very deals one-off advantage say ] are would LP just high trying to that

may conclude whereas might that relationship, really they case, deal, there's example, if on have and you consistent. be that not good a kind and were didn't gives the it as our very be very continues mean might the ability not of an fit, deal flow in X you the to that firm get a you call down deals I fifth So selective. us to turn

deal? So that how drives a differentiated And you what and do deals sourcing theme. find is

credit pronounced would dispersion regarding quality. lastly, then say, And a I

a mirror reports really credit managers on you're nonaccruals as a managers some the Fitch, that X for quality are research and across that that have range other nonaccrual. showing in Moody's even BDCs, or across X% seeing You which showing come see of and X% are that we're of and the certain portfolio, the are seeing it

I say out came last with managers. and a that a about that week it's there's would Moody's talks report research broad among So range, great dispersion

And ability And selective and really so diversified, getting deliver very a of. proud good who is which a Because I our leading think the clients. would from and has scale I thing, at obviously, investors our perspective, and very we're that very that, increased been is look the focused to and right? that's for are driving, something to fundraising, that's that say very

Brian Mckenna

I'll Ken, great. leave And there. congrats That's great it on another quarter.

Kenneth Kencel

you. Thank

Shaul Vichness

a Thanks lot.

Operator

[Operator Securities. coming from Instructions] Our question Mark Hughes from is next Truist

Mark Hughes

comment the first you. has credit of Related was you of mixed the dispersion. just quality with quality and that quarter. mentioned much made perhaps the opportunities do you to the industry more earlier Thank that the in had about Yes. How the selection to

with or So that expected be I comments think would there, said end of a to having together quality to couple market any you of but Is you continue. that the helpful. do mix company? thoughts

Kenneth Kencel

Yes.

one of upper CLO of has and and middle various the that BSL as returned the the as with market driving that's BSL. resurgence formation So flows think well obviously, that funds market, the the in things earnest into is invest I that funds even in

come force, address the So is in be that's really designed to issues I market the what really that that the brought it's think full refinancing to back or portfolio. done has companies and is BSL market repair may financing more

larger they and options, So private for liquidity, now we've have businesses, They right, certainly, more have got the because -- really. more have X BSL. companies credit, and

and industry ] issuers that's to side what with going So we're done brought live that a our a tough to I leverage on refinancing the is have market, [ regarding an standpoint. from given think may what time it's willing had particularly lender, posture

flow. deal more has a that So mix trend I think to of led

deals being is Now chosen do flow said, our all. at I don't mixed that we've to certainly that the and deal think

core I those middle where would we've say dynamics. fact, we've in market insulated In been largely the from stayed

terms it PEC more done, think pushing there's in really of deals, as that only problems. a of for that, more get you see component in new being it I So are larger and are the to that you leverage are of and pushing example, but that levels, deal being work larger, to because of terms start ] refinancing [ done deals

you focus core think deals perspective, sticking sweet to the our being are say market and our from X, X, with staying some excellent terms playing upper been no significant without I we've when in knitting able by that a in on by stayed invest market, of be market. we've to middle been months continue core to equity of alternative. to opportunities lenders That place middle in direct the the of that that ago was quality sticking the spot, that That's BSL there. And the have very see maybe to you XX contributions. would our done good had our end to by might I in noise the see

good a result, Now that bit still BSL say several the world. flow active our as to over in. really very deals quarters, direct look I of is And would of to investing for certainly out we next world quality in very tends there. good, is very core back, the continuing kinds We kind be the And be that challenged. we're larger that and more gone haven't see deal of as loans we're I a

above that's not right the your in the the pushing of industries generally right dynamics seeing But maybe I have quality and on matter, to you want transactions taken with universe will than you say, We occasionally much that outer be overall, that to around in we're at It's as stay transaction support. that say, more get difficult the envelope levered we for do Xx not We're slightly structures our in and And equity companies look approach limits I our head reasons, that. the practical would we kind a leverage. invested would quality around Xx seeing as and math leverage. good deals. see deals certainly deals.

we industry very from equity not an only support we're structurally We're feel also seeing quality and at. where standpoint. perspective, an from So good good but about

Mark Hughes

Yes, that I detail. appreciate

in the this that quarter. XX last -- assets? reflection Is a did part new upper that is you XX the of market number deals, quarter, think of I the On investment the different? Or something of middle

Shaul Vichness

that's terms market Mark, purchases. Yes. Shai. would origination probably there secondary in core I flat, upside quarter-over-quarter direct the right. focus, from it's fairly of from the middle and it's say Yes, is

Mark Hughes

Understood.

Shaul Vichness

No themes real of terms in volume...

Kenneth Kencel

Yes.

portfolio, entire portfolio. XXX overall which drivers be our just names, also right? over senior continues So across about to big equity frankly, investments, And the positions for XXX, but of firm, XXX in our our got the portfolio. is we've which an component us, our One lending private is important not

a goes or that an co-investor be and of a a there's investment senior, but situation where lot that may on as also So that equity a related may drives financing side well. be the we're activity opportunity to on

So right having real advantage a is a us. large portfolio for now

Operator

question-and-answer like end the I'd over for our any floor reached session. We of back to turn the closing further comments.

Kenneth Kencel

as again. on forward having of we call all the Thank support. providing you your enjoy results QX you, conversations checking us quarter. move through our We call in certainly dialogue the to August. Thanks, all appreciate the on both those look the We and and joining for appreciate certainly We in and today. everyone,

Operator

Thank you. webcast. today's teleconference That does and conclude

You wonderful you time have participation your may today. line a day. disconnect thank for and We your at this

Nuveen Churchill Direct Lending (NCDL) 9 May 242024 Q1 Earnings call transcript