However, with the market volatility we and the entire lower middle market are in the process of pricing and leverage discovery for prospective deals. There has been a flight to industries where the tariff risk is less direct, and thus the spreads for these deals have continued to remain tight. We have begun to see sale and financing processes for companies with direct exposure to tariffs being delayed or pulled, as well as leverage levels tightening for the companies that do come to market. We would anticipate deal volume to continue to slow down for companies with direct or indirect exposure until the market perceives more certainty in the economic policy.

May 15, 2025 / receipt, needs a key / Josh Weinstein, Chief Investment Officer | earnings call 2025-05-15 | transcript fd6ffb34-19c6-4d34-8b49-2b22197aec64 | chars 17382-18047 | segment 17

Well, you know, we have the industry has definitely become functional over Zoom, but the answer is yes, we're traveling again. And management meetings in person are certainly superior to Zoom calls. candidly, you know, from a deal professional perspective, it also adds a dynamic to your job that's interesting, right? You get to travel, get to see manufacturing plants, operations, you know, that type of thing. It just adds a dynamic to, you know, to the cadence of your work, which I believe, you know, as a deal professional myself, that's a really important thing. And so we've seen that. So thankfully, yes, we're traveling again and very happy to be doing that.

Nov 2, 2021 / receipt, needs a key / Bowen, other | earnings call 2021-11-02 | transcript f65241c0-8097-4a04-aeb7-a134c1c9274c | chars 26430-27098 | segment 26