SLR Investment Corp. Q4 FY2025 earnings call

• Michael Gross mentioned the company's solid fourth quarter and year results, with broad portfolio stability, slow growth, and shift to asset-based lending. • Cautious view on sponsor finance oversupply, but insulated due to underwriting standards. • Multi-strategy approach, discipline, and tactical asset allocation enable investment and diversification. • Originations momentum, with commercial finance as primary driver, portfolio mix shift to asset-based specialty finance. • High percentage of senior secured specialty finance loans, low software exposure. • Portfolio composition, quality, and performance favorable, with high percentage of first lien senior secured loans, all performing, and de minimis PIK income. • Shiraz Kajee discussed net asset value, investment portfolio fair value, debt structure, and P&L highlights. • Bruce Spohler talked about portfolio shift to specialty finance strategies, portfolio metrics, and each investment vertical including asset-based lending, equipment finance, life sciences, cash flow lending, and SSLP.

SLR Investment Corp. reported net investment income of $0.40 per share and net income of $0.46 per share in the fourth quarter. Net investment income per share was flat quarter-over-quarter. For the full year 2025, net income was $1.70 per share. In the fourth quarter, $462 million of new investments were originated, with $445 million repaid, resulting in a net funding of $70 million and a year-end comprehensive portfolio of $3.3 billion (7.2% annual growth). New originations were the second-highest on record, up 36% year-over-year and 3% quarter-over-quarter. Over 83% of the portfolio was in senior secured specialty finance loans as of 12/31/2025. Asset-based lending originations in the fourth quarter were $247 million, almost double the prior-year period, with full-year originations of $1.1 billion close to double 2024. The ABL strategies offer all-in returns of SOFR plus 600. The equipment finance portfolio was just under $1.1 billion at quarter-end, with $150 million originated in the fourth quarter. The life science portfolio was approximately $180 million at year-end, with $26 million funded in the fourth quarter. The cash flow lending portfolio was just over $475 million at quarter-end, with $37 million new investments and $30 million repayments in the fourth quarter. The SSLP revolving credit facility was refinanced, lowering the interest rate.

• Anticipate net income return on average equity of 9.3% for full year 2025, which should compare favorably to peers. • Q1 2026 quarterly base distribution of $0.41 per share declared. • Expect to continue to prudently access debt capital markets and issue unsecured debt as needed. • Pipeline in 2026 reflects new investment opportunities at spreads exceeding cost of capital. • Hopeful for M&A opportunities in ABL business with better pricing if market dislocation continues. • Would like to see leverage ratio come up in current environment due to attractive opportunities.

• Private credit market maturation and recalibrating expectations to more normalized default loss experience. • Uncertainty regarding impact of base rate changes, although SLR's earnings sensitivity is among the lowest. • Competition for quality assets in cash flow lending, and looming maturity wall. • Risk of software industry obsolescence and valuation volatility in life sciences, which SLR has avoided. • Impact of market dislocations on portfolio performance and ability to deploy capital.

Q: Update on recent activity or outlook for 2026 in terms of ABL and equipment finance inorganic opportunities A: Bruce Spohler said they have been very active, with quality potential opportunities in the pipeline, lending into potential platforms to get to know them, and are actively engaged in potential acquisitions but nothing imminent Q: Impact of tight spreads in public debt markets on ABL and equipment finance spreads A: Overall return has come down a bit, but 11.5% or so still compares favorably to the market, structural protections help on risk side, lack of capital flows allows maintaining competitive position, and peers are disciplined Q: Early signals of greater amendment requests or increased revolver usage A: Bruce Spohler said short answer is no, watch list is roughly 2%, in ABL strategies, metrics like inventory turns and receivable collections show no themes, idiosyncratic one-offs Q: Leverage and opportunism during market dislocations A: Bruce Spohler said they would like to see leverage ratio come up due to attractive opportunities, have been choosing to get repaid in the past due to less attractive terms, crystal ball says less repayments expected this year as less capital in market and more discipline Q: M&A opportunities in ABL business and spillover A: Michael Gross said dislocation forces people to rethink business and access to capital, more opportunities and better pricing expected if market dislocation continues, and there is no spillover to speak of