SLR 인베스트먼트: 2026년 3분기 실적 발표 콘퍼런스콜: 특수금융이 사상 최대 대출 실행 견인

핵심 요약

• 순투자이익은 1,780만 달러(주당 0.33달러)로 분기 배당금인 주당 0.31달러를 충당했다.
• 순자산가치(NAV)는 9억 7,280만 달러(주당 17.83달러)로 2분기의 18.00달러에서 하락했으며, 전년 동기 대비 2.1% 감소했다. 경영진은 이번 분기 감소의 주된 원인으로 무수익 여신인 옴니가이드(OmniGuide) 1건을 꼽았다.
• SLRC는 사상 최대인 5억 7,500만 달러 규모의 투자를 집행하고 4억 2,900만 달러를 상환받아 약 1억 4,600만 달러의 순신규 투자를 달성했다. 신규 투자의 95%는 특수금융이 차지했다.
• 포괄 포트폴리오는 총 약 34억 달러에 달했다. 약 97.5%가 선순위 담보대출로 구성되었으며, 96% 이상이 선순위 1순위 담보, 86%가 특수금융이었다.
• 무수익 투자 2건은 공정가치 기준 포트폴리오의 1.2%, 취득원가 기준 2.9%를 차지했다. 전체 투자의 약 98%는 회사의 4단계 리스크 평가 척도에서 1등급 또는 2등급을 받았다.
• 경영진은 향후 1년간 사모 신용 디폴트 및 부채조정이 증가할 것으로 예상하면서도 담보 기반 특수금융 기회에 계속 집중할 방침이다.

주요 재무 데이터

분기 종료 후 SLRC는 수수료를 포함해 주당 평균 11.31달러에 88만 4,000주 이상의 자사주를 1,000만 달러에 매입했다. 경영진은 이번 자사주 매입이 4분기 주당 순자산가치(NAV)를 증가시킬 것으로 기대하고 있다.

이사회는 주당 0.31달러의 분기 배당금을 결의했으며, 이는 2026년 12월 14일 기준 주주에게 2026년 12월 28일 지급될 예정이다.

사업 및 영업 실적

자산기반대출(ABL)

자산기반대출(ABL) 플랫폼은 241개 차주에 걸쳐 총 15억 달러 규모로 포괄 포트폴리오의 43% 이상을 차지했다. 3분기 신규 취급액은 2억 7,700만 달러였으며 상환액은 2억 3,800만 달러에 달했다. 가중평균 자산단위 수익률은 2분기 12.0%에서 12.6%로 상승했다.

경영진은 사모펀드(PE) 스폰서들이 차입매수(LBO), 기업 인수 및 턴어라운드 자산을 위한 추가 유동성을 확보하고자 함에 따라 전통적인 차입기반 신용공여를 넘어서는 수요가 확대되고 있다고 밝혔다. 헬스케어 매출채권 부문은 여전히 중점 분야로 유지되고 있다.

장비금융

장비금융 포트폴리오는 570개 차주에 걸쳐 12억 달러에 달하며 전체 포트폴리오의 35%를 차지했다. SLRC는 2억 6,300만 달러를 신규 집행하고 약 1억 7,600만 달러를 상환받았다. 해당 부문의 가중평균 수익률은 10.2%였다.

SLR 이큅먼트 파이낸스(SLR Equipment Finance)는 5.6% 고정금리로 2억 5,000만 달러 규모의 자산유동화증권(ABS) 발행을 완료해 차입 자금조달 비용을 낮췄다. 경영진은 또한 디지털 인프라 관련 수요와 함께 차주들이 관세 인상분이 반영된 높은 가격에 장비를 구매하는 대신 기존 장비 리스를 연장하는 데 따른 수요도 발생했다고 전했다.

생명과학

생명과학 포트폴리오는 6개 차주에 걸쳐 총 1억 7,600만 달러로 포트폴리오의 5%를 차지했다. 신규 집행액은 500만 달러였으며 상환액은 없었다. 회사는 생명과학 대출, ABL 리볼빙, 로열티 구조의 결합을 활용할 수 있는 대규모 차주에 집중하고 있다.

현금흐름대출

스폰서 파이낸스 현금흐름 포트폴리오는 25개 차주에 걸쳐 4억 6,300만 달러로 포트폴리오의 14%를 약간 밑돌았다. 모든 투자는 선순위 1순위 담보였으며, 가중평균 담보인정비율(LTV)은 40% 미만, 이자보상배율은 2.2배였다.

3분기 투자액은 총 3,000만 달러, 상환액은 1,500만 달러였다. 현금흐름 가중평균 수익률은 2분기 9.6%에서 10%를 약간 밑도는 수준을 기록했다. 소프트웨어 익스포저는 포트폴리오 공정가치의 1% 미만을 유지했다.

경영진 전망

경영진은 당분간 특수금융이 신규 투자 집행의 주요 핵심 영역으로 남을 것으로 전망했다. 회사는 자사의 ABL 사업 기반, 장비금융 수요, 소개 파트너십 및 담보 기반 유동성 솔루션에 대한 스폰서의 관심 증대에 힘입어 견고한 파이프라인이 유지되고 있다고 언급했다.

SLRC는 또한 향후 1~2개 분기 동안 기준금리 인상의 수혜를 입을 것으로 예상하면서도, 금리가 지나치게 상승할 경우 이러한 수혜가 줄어들 것이라고 덧붙였다.

회사는 고정금리 6.76%, 만기 2030년 6월 10일인 1억 3,500만 달러 규모의 사모 무담보 채권 발행을 확정했다. 자금 조달은 2026년 12월 10일로 예정되어 있다. 경영진은 이번 자금 조달이 자본 구조를 재조정하고 특수금융 파이프라인을 지원하는 데 도움이 될 것이라고 밝혔다.

리스크 및 주시 요인

• 경영진은 향후 1년간 디폴트 및 부채조정이 증가할 것으로 예상했으나, 현 환경을 2008년의 재현이 아닌 통상적인 신용 주기 하강 국면으로 규정했다.
• 회사는 고레버리지 상태인 2021년과 2022년 빈티지를 업계의 주요 스트레스 요인으로 지목했다. SLRC의 포괄 포트폴리오 중 해당 빈티지에 투자된 비중은 15% 미만이다.
• 워치리스트의 대부분은 무수익 여신 2건이 차지했다. 옴니가이드(OmniGuide)는 분기 NAV가 90bp 하락한 주요 원인이었다.
• 조달 비용 상승, 마진 압박 및 신용 손실로 인해 높은 기준금리에 따른 이익 수혜가 상쇄될 수 있다.
• 부진한 M&A 활동과 과잉 공급된 사모 신용 자본으로 인해 현금흐름대출 부문의 위험 프리미엄이 지속적으로 압박받고 있다.
• 인플레이션과 차입 비용 상승은 차주의 유동성을 압박할 수 있다. SLRC는 자사 ABL 팀이 매출채권, 재고자산회전율 및 유동성을 주간 또는 월간 단위로 모니터링하고 있다고 밝혔다.

애널리스트 Q&A 주요 내용

• 포트폴리오 수익률: 경영진은 금리가 지나치게 상승할 경우 한계가 있을 수 있으나, 향후 1~2개 분기 동안 기준금리 상승이 특수금융을 포함한 수익률을 뒷받침할 것으로 예상하고 있다.
• ABL 모니터링: SLRC는 차주의 유동성과 인플레이션 및 조달 비용의 영향에 집중하고 있다. 빈번한 담보 보고를 통해 매출채권과 재고자산 추이에 대한 가시성을 확보하고 있다.
• 자사주 매입: 경영진은 11달러대 초반 가격은 자사주 매입에 매우 매력적인 수준인 반면, 12달러대 중반은 신규 투자 기회에 비해 매력도가 떨어진다고 설명했다.
• 경쟁 구도: 경영진은 대형 자산담보부금융 진입자들이 SLRC처럼 직접 발굴하고 관리하는 ABL 시장보다는 주로 소비자 대출 풀을 공략하고 있다고 밝혔다. 회사는 20개 지사에 걸친 200명 이상의 직원이 상당한 진입 장벽 역할을 한다고 언급했다.
• 자본 운용: 1억 3,500만 달러 규모의 무담보 채권 발행액은 2026년 12월 만기 도래액인 7,500만 달러를 초과한다. 경영진은 지속적인 특수금융 성장을 지원하기 위한 자금을 마련하는 한편 기회주의적으로 자본을 확충하고 있다고 설명했다.

실적 발표 콘퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, and welcome, everyone, joining today's Q3 2026 SLR Investment Corp. Earnings Call. [Operator Instructions] Please note, this call is being recorded. [Operator Instructions]

It is now my pleasure to turn the meeting over to Michael Gross, Chairman and Co-CEO. Please go ahead.

Michael Gross

Thank you very much, and good morning. Welcome to SLR Investment Corp.'s Earnings Call for the quarter ended September 30, 2026. I'm joined today by my long-term partner, Bruce Spohler, our Co-Chief Executive Officer; as well as Chief Financial Officer, Shiraz Kajee; and members of the SLR Investor Relations team.

Shiraz, before we begin, would you please start by covering the webcast and forward-looking statements?

Shiraz Kajee

Thank you, Michael. Good morning, everyone. I would like to remind everyone that today's call and webcast are being recorded. Please note that they are the property of SLR Investment Corp. and that any unauthorized broadcast in any form is strictly prohibited.

This conference call is also being webcast on the events calendar in the Investors section on our website at www.slrinvestmentcorp.com. Audio replays of this call will be made available later today as disclosed in our November 3 earnings press release.

I would also like to call your attention to the customary disclosures in our press release regarding forward-looking statements. Today's conference call and webcast may include forward-looking statements and projections. These statements are not guarantees of our future performance or financial results and involve a number of risks and uncertainties. Past performance is not indicative of future results. Actual results may differ materially as a result of a number of factors, including those described from time to time in our filings with the SEC. We do not undertake to update any forward-looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website or call us at (212) 993-1670.

At this time, I would like to turn the call back over to our Chairman and Co-CEO, Michael Gross.

Michael Gross

Thank you, Shiraz, and thank you to everyone for joining our earnings call this morning. Markets firmly expect risk-free rates to remain higher for longer. AI and the new economy build-out dramatically impact capital flows, commerce and ultimately risk. As a result, questions about where we are in the credit cycle have grown louder throughout the year.

Expectations for interest coverage and direct lending facilities are moderating. We first expressed a more cautious view about the potential for rising private credit losses in the last year. That view rested on our 20-plus history of managing private credit vehicles and recognizing that the industry was approaching the middle stages of a credit cycle.

We believe these signs can no longer be dismissed. They're clearly visible through the lens of rising defaults and realized losses. The simple average net asset value per share has declined more than 5% for public BDCs year-to-date, and Fitch Ratings recently indicated that the trailing 12-month default rate is the highest on record as of the end of the third quarter.

With this backdrop, we continue to believe investors are looking for private credit portfolios that are less exposed to areas of private credit exuberance during the past 5 years. We believe our comprehensive portfolio of largely commercial finance assets positions us to provide durable current income and total return. We think the strength of our portfolio today reflects how we structure and select investments, not where we sit in the current cycle or the amount of capital we need to deploy.

Much of today's market participants have never underwritten through a true downturn and rapid capital formation loosened cash flow underwriting as non-listed BDCs grew into tens of billions of dollars under management in a very short period.

The stress is concentrated in the 2021 and 2022 vintages underwritten at high leverage in the low interest rate environment and are now facing a large way of cyclicals and software loan maturities. Importantly, less than 15% of our comprehensive portfolio is invested in these vintages.

Floating rate direct lending would normally benefit from an increase in base rates, but higher financing costs, margin compression and rising credit losses are thus far offsetting this tailwind.

Continued lackluster M&A activity and excess supply of capital further widen the supply-demand imbalance and extend a highly competitive environment for good cash flow assets. As a result, sourcing good risk return in Sponsor Finance remains challenging.

We expect default and liability management exercises to rise throughout the next year. This is a typical credit cycle downturn, not a crisis comparable to 2008. However, we believe that defaults will be higher than many expect.

Weaker documentation and unitranche structures that sit deeper in the capital structure leave less cushion beneath lenders, so loss given default rates could run higher than many assume. The current environment favors experienced collateral-based lenders as sponsors with capital structures that cannot refinance in the traditional market need liquidity and working capital solutions.

Our portfolio is built for this environment. It primarily consists of first lien loans against collateral that we can monitor and liquidate selective cash flow exposure and a small watch list. Our ABL teams are a countercyclical sourcing engine when liquidity and capital are scarce.

In this market phase, credit dispersion is expected to widen and manager and asset selection will matter more. We will stay disciplined and are prepared for either a typical downturn or a more benign outcome. Nearly all of originations in the second -- in the third quarter were in specialty finance, and we expect that focus to continue for the foreseeable future.

Turning to our Q3 results. For the third quarter, SLRC reported net investment income, or NII, of $0.33 per share against a distribution of $0.31 per share. At September 30, the company had a net asset value per share of $17.83, down approximately 90 basis points from the prior quarter and down only 2.1% year-over-year, which is less than half the industry experience. The NAV decline in Q3 is driven by the decline in fair value of one loan on nonaccrual. Bruce will provide more detail on this investment.

Importantly, this investment's challenges are idiosyncratic and not reflective of our broader portfolio's health. In fact, our watch list declined this quarter with only 2% of our portfolio at fair value in that category.

We continue to have strong conviction in the credit quality of our portfolio. Consistent with the prior quarter, our exposure to the software industry consisting of only 2 borrowers stands at less than 1% of fair value. Furthermore, only 2% of our gross income is derived from restructured PIK. Both portfolio metrics remain well below private credit portfolio averages.

With our conservatively positioned portfolio, we are focused on attractive investment opportunities in asset-based lending. During the third quarter, SLRC originated $575 million of new investments across the comprehensive portfolio. This volume weighted 95% of specialty finance represents a record for SLRC and highlights our ability to originate attractive investments during periods of muted activity in the traditional direct lending market.

During the third quarter, we received repayments of $429 million for net originations of approximately $146 million. We view this level of portfolio to trade favorably as the repayments represented successful realizations at par or better and the associated prepayment exit fees add a further source of income. We continue to have a robust specialty finance pipeline fueled by our ABL team's broad geographic footprint, resulting in strong traction in local markets and increasing sponsor interest in ABL solutions.

With our strategic focus on specialty finance, we are executing growth strategies to expand our footprint through new hires, acquisitions and investment sourcing partnerships. Our recently finalized partnership with a super-regional bank has begun to produce referral opportunities. As the partnership progresses, we will share more details. We remain active in the cash flow market in our core industry, healthcare and are ready to pivot to this asset class if it becomes more attractive.

At September 30, including available credit facility capacity at SSLP and our specialty finance portfolio companies, SLRC had over $850 million of available capital to deploy subject to borrowing base limits. Our liquidity portfolio and minimal watchlist position us to deploy capital as the cycle turns, whether it means stepping in as banks pull back or meeting sponsors' needs of liquidity.

Now I'll turn the call back over to Shiraz, our CFO, to take you through third quarter financial highlights.

Shiraz Kajee

Thank you, Michael. SLR Investment Corp.'s net asset value at September 30, 2026, was $972.8 million or $17.83 per share compared to $18 per share at June 30, 2026. At quarter end, SLR sees on balance sheet investment portfolio at a fair value of approximately $2 billion in 77 portfolio companies compared to a fair value of $2.1 billion in 79 portfolio companies at June 30.

Our investment portfolio continues to be funded by a combination of our multi-lender revolving credit facilities and the issuance of term debt in the unsecured debt markets to institutional investors. The company is investment-grade rated by Fitch, Moody's and DBRS, and more than 43% of the company's debt capital is comprised of unsecured debt as of September 30.

At September 30, the company had approximately $1.1 billion of debt outstanding with a net debt-to-equity ratio of 1.1x within our target range of 0.9 to 1.25x. We have ample liquidity to fund our unfunded commitments and for future portfolio growth.

Looking forward, the company has unsecured debt maturities of $75 million in December 2026, $135 million in January 2027 and $50 million in March 2027. On October 28, the company committed to a private offering of $135 million of unsecured notes with a fixed interest rate of 6.76% and a maturity date of June 10, 2030. This issuance is anticipated to close and fund on December 10, 2026. We expect to continue to prudently access the debt capital markets and issue unsecured debt as and when needed.

Moving to the P&L. For the 3 months ended September 30, gross investment income totaled $49.3 million versus $48.8 million for the 3 months ended June 30. Net expenses totaled $31.5 million for the 3 months ended September 30. This compares to $31.1 million for the June quarter. Accordingly, the company's net investment income for the 3 months ended September 30, 2026, totaled $17.8 million or $0.33 per average share, in line with the prior quarter.

Below the line, the company had net realized and unrealized losses of $10.2 million in the third quarter versus net realized and unrealized losses of $9.5 million for the second quarter of 2026. As a result, the company had a net increase in net assets resulting from operations of $7.6 million for the 3 months ended September 30 compared to a net increase of $8.3 million for the 3 months ended June 30.

Post quarter end, the company purchased over 884,000 shares of SLRC at an average price of $11.31, inclusive of commissions. These purchases totaled $10 million and were executed through our 10b5-1 stock repurchase plan previously authorized by our Board of Directors. We expect these purchases to be accretive to NAV per share in the fourth quarter.

On November 3, 2026, the Board of Directors declared a quarterly distribution of $0.31 per share, payable on December 28, 2026, to holders of record as of December 14, 2026.

With that, I'll turn the call over to our Co-CEO, Bruce Spohler.

Bruce Spohler

Thank you, Shiraz. Before discussing our portfolio, let me comment on our specialty finance strategies. Because we're typically the sole lender in our specialty finance strategies, the majority of our exposure is unique to SLRC. Consequently, our investment portfolio overlap with other public BDC portfolios is one of the lowest in the industry.

According to a Q2 '26 research report, our shared investment exposure with other BDCs represents less than 20% of our portfolio. This compares to a weighted average overlap of over 50% for many of our peers. This provides our investors with greater diversification across their holdings. Both the low correlation to other managers as well as to asset classes as well as the strong downside protection to our collateral coverage make our specialty finance strategies an attractive value proposition.

Our investment strategies are extremely high touch with deep expertise and experience, a prerequisite for both the underwriting as well as the active monitoring of collateral throughout our loan's life. These strategies are not conducive to manager tourism and take, in our view, at least a decade to build from the ground up. Because of this, competition remains limited, which preserves our ability to generate alpha at the time that mainstream direct lending is evolving into a beta asset class.

Now let me turn to the portfolio. At quarter end, the comprehensive portfolio was approximately $3.4 billion with an average exposure of $4 million. At fair value, approximately 97.5% of our portfolio consisted of senior secured loans with over 96% invested in first lien loans.

The 1% of our portfolio in second lien investments consists entirely of asset-based loans, which contain borrowing bases and no second lien cash flow loans. At quarter end, over 86% of the portfolio is comprised of specialty finance investments. At quarter end, the weighted average asset level yield on the portfolio was 11.2%, up slightly from last quarter and consistent with the past year's performance.

Overall, we believe the portfolio has been less impacted by changes in base rates and spread compression compared to the BDC peer group due to our higher allocation to specialty finance loans. We continue to have just 2 loans on nonaccrual, with one of those accounting for the decline in our NAV of 90 bps this quarter. This investment is OmniGuide. Our workout team is actively focused on maximizing our recovery for both OmniGuide and our other nonperforming loans.

Outside of these 2 investments, which account for the majority of our watchlist, our portfolio continues to perform well. At quarter end, the weighted average investment risk rating was under 2 based on our 1 to 4 risk rating scale, with 1 representing the least amount of risk. Approximately 98% of the portfolio is rated 1 or 2 at quarter end.

Outside of our 2 nonaccruals, which represent 1.2% of the portfolio at fair value and 2.9% at cost, our portfolio companies continue to exhibit healthy business fundamentals and perform at or above expectation. In addition, 2% of our gross income is derived from PIK interest that resulted from amendments.

Now let me touch on each of our 4 investment verticals, starting with our specialty finance segments. Asset-based lending. Our teams are extremely active with an expanded opportunity set consisting of their traditional borrowing base as well as increasing interest from our Sponsor Finance clients who are seeking incremental liquidity through ABL solutions for their portfolio companies.

Private equity firms are increasingly using ABL structures to supplement the financing of LBOs, strategic acquisitions, as well as turnaround asset purchases. In particular, we are seeing traction with healthcare sponsors given our understanding of complex healthcare accounts receivable.

The SLR team has been financing healthcare receivables for over 30 years and understands the reimbursement nuances of healthcare accounts receivable. This asset level diligence is often what separates a lender capable of structuring around complexity from one that simply lacks the decades of experience with healthcare accounts receivable collectability.

Our priority remains a first lien position on liquid current assets, predominantly accounts receivable and inventory, which has historically minimized our risk exposure. At quarter end, our ABL platform totaled $1.5 billion across 241 issuers, representing over 43% of the total portfolio.

For the third quarter, we originated $277 million of new ABL investments and had repayments of $238 million. Weighted average asset level yield on the ABL portfolio was 12.6%, up from 12% in the prior quarter. We are continuing to advance partnership opportunities as well as evaluate strategic transactions such as portfolio and business acquisitions. Additionally, we're continuing to expand the origination team across our ABL verticals.

Now let me touch on equipment finance. We are pleased with the progress across our equipment finance businesses and have seen an increase in demand for equipment financings more broadly, which resulted in portfolio growth this quarter as well as a larger pipeline as we head into year-end. The opportunity set includes equipment leasing opportunities related to the infrastructure build-out of the digital economy as well as the greater need for financings for companies in traditional industries as many of our peer lenders turn their focus solely to data center financings.

At quarter end, the equipment finance portfolio totaled $1.2 billion, representing 35% of our total portfolio and was highly diversified across 570 borrowers. Credit profile of this portfolio was stable quarter-over-quarter.

During the third quarter, we originated $263 million of new investments and had repayments of approximately $176 million. Weighted average asset level yield for this portfolio was 10.2%.

Our investment pipeline has expanded in equipment finance. Additionally, we're continuing to see demand from existing borrowers seeking to extend their existing leases on equipment rather than buying new equipment at higher tariff-adjusted prices.

Also achieved during the quarter was an important marker for our SLR Equipment Finance team. They were able to finance the portfolio with a $250 million asset-backed securitization. This facility lowered the company's cost of debt capital, pricing at a fixed rate of 5.6%.

Now let me turn to life sciences. Our life science team continues to evaluate new opportunities. In response to the challenging conditions in this segment, our team is focused on larger companies that can benefit from comprehensive solutions involving not only life science loans, but also ABL revolvers and royalty structures. Our platform has a unique competitive advantage in its ability to offer this full suite of products, which is bolstering our pipeline.

During the third quarter, we had originations of $5 million and no repayments in life sciences. At quarter end, the portfolio was $176 million across 6 different borrowers, representing 5% of the total portfolio. Activity has increased, and we are optimistic about our pipeline heading into next year.

Cash flow lending. With muted M&A activity and large capital inflows for the largest private credit managers, cash flow lending has remained a competitive market where the risk premium has narrowed. SLRC currently takes an opportunistic approach to this asset class.

Our broad platform expertise in healthcare enables us to continue to serve as a valuable cash flow loan provider to companies in this industry during periods of overheated market conditions. Sponsors have been focused on troubled portfolio companies and amend and extend executions with the looming 2027 and 2030 maturity wall approaching.

At quarter end, our Sponsor Finance cash flow portfolio totaled $463 million across 25 borrowers or just under 14% of the total portfolio. Our software exposure accounts for less than 1%. The weighted average EBITDA of the portfolio was approximately $117 million. 100% of this portfolio are first lien investments, and we had a weighted average LTV of just under 40%.

Our borrower fundamentals remain strong with single-digit growth in average year-over-year revenue and EBITDA. The weighted average interest coverage on our cash flow portfolio was 2.2x, consistent over the past year.

During the quarter, we made investments of $30 million and experienced repayments of $15 million. At quarter end, our weighted average cash flow yield was just under 10% compared to 9.6% last quarter.

Now let me touch on our SSLP. During the quarter, we invested $7 million and had approximately $10 million of repayments. Our net leverage is just around 0.9x. Company earned $1.3 million from its investment in SSLP during the quarter, which represented an annualized yield of 11% compared to 11.8% in Q2. At quarter end, we had $62 million of undrawn debt capacity, and we expect to grow this portfolio opportunistically conditions in the Sponsor Finance market warrant.

Now, let me turn the call back to Michael.

Michael Gross

Thank you, Bruce. In conclusion, at this stage of the credit cycle, with risk not being rewarded as it once was in the direct lending market, we are staying focused on our specialty finance strategies. These collateral-based loans, which make up the vast majority of our recent originations, provide the underpinning of the stability and solid credit quality of our portfolio.

We feel confident in the health of our overall performance and believe we are well positioned to weather this higher-for-longer interest rate environment. While we are comfortable with our portfolio's current earnings power given our conservative investment approach, particularly in today's market, we are pleased with our specialty finance team's traction.

As issuers facing liquidity challenges seek alternative sources of capital, our broad range of solutions are being well received. Our teams thrive in challenging markets, and our portfolio's stable credit quality enabled them to remain focused on the opportunity set.

The SLR team owns over 9% of the company's stock today as a significant percentage of the annual incentive compensation invested in SLR stock each year, including purchases that took place in the first quarter.

We thank you again for your time today, especially on a busy day of BDC earnings releases. Operator, will you please open the line for questions?

Operator

[Operator Instructions] We will take our first question from Erik Zwick with Lucid Capital Markets.

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Erik Zwick

Understanding that your portfolio structure makes you -- the yield kind of less sensitive to changes in interest rates, is there anything else that could lead to any changes in the portfolio yield going forward, anything in terms of changes in spreads or portfolio mix shift that we can see any changes over the next, say, quarter or 2?

Michael Gross

I think while we are not highly correlated to base rates, in the near term, we do benefit even our specialty finance strategies from the pickup in base rates. So at some point, it gets too high. And so we won't see that pass through to our returns. But I think in the next quarter or 2, you will see the pickup just as you would in a cash flow deal in terms of that additional increase in base rate yield.

Erik Zwick

And then kind of transitioning to the asset-based lending strategies. We've seen a little bit of a pickup in inflation in some of the measures. Whether that's going to be sustained, I think, is still out for debate. But can you just talk about the considerations that you need to kind of monitor and take into account as you continue to both monitor the existing ABL portfolio as well as new originations and how a higher inflationary environment could impact that management style?

Michael Gross

That's a great question. The good news is we've got several hundred investments across borrowers throughout the U.S. in a variety of industries. So we have a very good lens into the underlying performance of the U.S. economy. What we would say is because we have such insight, we do get, as you may know, information around receivable turns, inventory turns on a weekly and monthly basis. So we have a lot of inputs.

I think the thing that we are most focused on in the ABL portfolio, because we benefit from underlying collateral, we're really looking for liquidity and a sense of a company's liquidity, how is inflation and increased borrowing costs impacting their liquidity profile. That's the first thing that we are very, very focused on, make sure that they have a long runway to support the business during this inflationary period. And again, we benefit from very quick and deep insights into those impacts on a weekly to monthly basis.

Erik Zwick

That's helpful. And then last one for me. With regards to the end of October private offering of $135 million, that's more than enough to cover your upcoming maturity of $75 million. So should we read that as a kind of optimistic offering raise in terms of your ability to execute on the pipeline and continue to grow the portfolio?

Michael Gross

Yes. I think we will, as we have been for the last 20 years, been opportunistic as we go to the private placement market to Shiraz's comments. We like to be able to go when it's appropriate rather than at a position of need. So -- but we are, yes, to your question, resetting the cap stack. You've seen us, over time, increase the size of our revolver as well to take advantage of what we see to be a continued strong pipeline in specialty finance investments.

Operator

We will move next with Jason Stewart with Compass Point.

Dylan Ritter

Dylan Ritter filling in for Jason here. Our question is, how did you determine the appropriate level of share repurchases in October? And what made that level attractive from a capital allocation standpoint? And looking ahead, is there a specific price level or metric where you would favor repurchases over deploying capital into new investments?

Michael Gross

Look, I think we kind of always view the $50 million plan we put in place as opportunistic. It was meant to last a year since we have a long time left on it, and we'll continue to look at it opportunistically in the low 11s as being very attractive. In the mid-12s is less attractive given kind of where our investor opportunity is at. So we'll continue to watch it opportunistically, and we'll see what happens.

Operator

[Operator Instructions] We will move next with Heli Sheth with Raymond James.

Heli Sheth

So kind of following up with asset-based financing, we've kind of seen a rise in the space in ABS and just more opportunities there. How landscape changing is this for the space?

Michael Gross

So what you're alluding to is the fact that there's been a lot of talk and activity in kind of ABS and ABF and a lot of the larger fund complexes kind of entering the space. What we're seeing is they're going after parts of the market that are dramatically different from what we do.

For the most part, where you're seeing activity is in consumer-based products, whether it's portfolios of student loans, car loans, credit card receivables, mortgages where you can put large package together and repackage them and distribute them. It's very different from what we do. Everything we do in the asset-based lending world is truly about direct lending, where we are directly originating to a counterparty, we're directly underwriting it and we're directly monitoring it. So the activity we're seeing from these bigger players really has had little or no impact on what we do and the competitive landscape of what we do really hasn't changed at all.

Heli Sheth

Got it. That's helpful. And being that you guys have been in the ABS space for so much longer and are kind of the leaders and the experts in the area, we've kind of seen in other areas such as venture lending, new entrants with poor execution can still cause years of disruption to a space. Is there any cause for concern about new entrants into the space? And how much of that is a negative prospect to deploying capital for you?

Michael Gross

That is a great question. And for example, we actually saw that their life science strategy. We saw some new entrants come in and thought -- who thought they had the expertise and they bid on a bunch of deals, they got them and they didn't work out so well.

The big difference, though, is that to go into the receivable financing facilities or credit card receivable -- receivable inventory facilities, you can't just raise your hand and say you want to be in it. You have to have the infrastructure in place to put a facility in place to manage it. So it's very difficult for tourists to come in and out of the business.

Bruce alluded to earlier, you have to have the -- you spent the 15 years building out the infrastructure to do it. No borrower is going to take money from an asset-based lender who doesn't have the ability to kind of execute.

Bruce Spohler

Just to put a finer point on that, we have over 200 people in 20 offices around the country focused on sourcing and then monitoring collateral. That is, to Michael's point, a huge barrier to entry.

Operator

Thank you. And at this time, I will turn the meeting back to Michael Gross for closing comments.

Michael Gross

Thank you. At this time, we do not have any more comments other than to thank you for your participation today. And to reiterate that if any of you or anyone else has any questions, please feel free to reach out to any of us. We'll be happy to talk. Have a great day.

Operator

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.