KKR & Co. Inc.

Good day, and thank you for standing by. Welcome to the FSKKR Capital Corp Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star, then 0. I would now like to hand the conference over to your speaker today, Robert Pond. Head of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to FSKKR Capital Corp's second quarter 2021 earnings conference call. Please note that FSKKR Capital Corp may be referred to as FSK, the fund, or the company throughout the call. Today's conference call is being recorded and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued on August 9th, 2021. In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended June 30th, 2021. A link to today's webcast and the presentation is available on the investor relations section of the company's website under events and presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Today's conference call includes forward-looking statements and are subject to risks and uncertainties that could affect FSK or the economy generally. We ask that you refer to FSK's most recent filings with the SEC for important factors and risks that could cause actual results or outcomes to differ materially from these statements. FSK does not undertake to update its forward-looking statements unless required to do so by law. In addition, this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures can be found in FSK's second quarter earnings release. It was filed with the SEC on August 9, 2021. Non-GAAP information should be considered supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly named measures reported by other companies. To obtain copies of the company's latest SEC filings, please visit FSK's website. Speaking on today's call will be Michael Foreman, Chairman and Chief Executive Officer, Dan Pietrzak, Chief Investment Officer and Co-President, Brian Gerson, Co-President, and Stephen Lilly, Chief Financial Officer. Also joining us on the phone are Co-Chief Operating Officers Drew O'Toole and Ryan Wilson. I will now turn the call over to Michael.

Thank you, Robert, and welcome everyone to FSKKR Capital Corp's second quarter 2021 earnings conference call. The second quarter was significant for FSK in two respects. First, the quarter represented an extremely positive period from both an investing and operational perspective. During the quarter, we materially out-earned our quarterly dividend due to strong originations as well as positive portfolio company performance, which included a significant one-time portfolio company dividend payment. Second, on June 16th, we successfully closed the merger of FSKKR Capital Corp. II with and into FSK, with FSK continuing as the surviving entity. This merger creates a leading BDC with approximately $16 billion in assets, coupled with the market reach to become a leader within the rapidly growing specialty finance sector. As I look back on the last three and a half years of the FSKPR partnership, I take pride in the accomplishments of our team. Six separate BDCs combined into a single entity. Eight bond transactions. Arranging one of the industry's largest secure revolving credit facilities. working to transition a legacy investment portfolio and investing over $12 billion of new capital to support over 300 middle market companies with tens of thousands of employees. As I look forward, I believe the newly combined FSK will be an industry leader through its ability to commit and hold in size, through its expanded balance sheet, which should create cost of capital advantages over time, through the simplification of our corporate message as we operate a single entity, and through the increased liquidity provided by the expanded flow in our stock. All of these benefits combine to create what we believe is a compelling opportunity for FSK at a time in the market where the BDC industry is coming into its own from both a shareholder awareness and a capital market standpoint. From an operational perspective, During the second quarter, our investment team originated $2.3 billion of new investments on a pro forma combined basis for the merger. We experienced an increase in our net asset value, and we again out-earned our target 9% annualized dividend yield on our net asset value. I'm happy to say that the second quarter of 2021 represents the sixth consecutive quarter since the establishment of our current dividend policy that we have over-earned our target annualized yield. During the second quarter, our adjusted net income was 74 cents per share, which was 14 cents per share above our quarterly dividend of 60 cents per share. Looking forward to the third quarter, while we expect our one-time fee and dividend income to return to a normalized level, we expect our adjusted NAI to be 61 cents per share. We also expect our previously announced $100 million board-approved stock buyback plan program to begin during the third quarter. Finally, consistent with our valuable dividend policy of seeking to provide shareholders with an annualized 9% dividend yield on our NAV over time, we are committed to paying out additional levels of NAI during quarters where our portfolio generates additional income. As a result, during the third quarter, our dividend will be 65 cents. Stephen will cover the details associated with our adjusted net investment income, as well as our forward guidance later in the call. Nevertheless, it's exciting to be able to make the announcement of an increased dividend specific to the third quarter as we welcome the former FSKR shareholders to the FSK shareholder base. And with that, I'll turn the call over to Dan and the team to provide additional color in the market in the quarter.