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Brad Marshall

Thank you, Justin, and good morning, everyone. Thanks for joining our call. Before we dive into details with John Carlos, and Petty, I will begin with a few high-level comments on the fourth quarter results and our view on the current market environment.
Turn to slide 4, the BXSL reported another strong quarter highlighted by its record total investment income, increased net asset value, newly issued liabilities at market tight levels compared to our traded [BDC] peers, continued solid credit performance, and active deployment.
Looking at each of these in detail, our net investment income or NAI of $0.84 per share this quarter represented a 12.3% annualized return on equity and is made up overwhelmingly from contractual income rather than one-time fees or dividend income. Net asset value per share increase for the ninth consecutive quarter by $0.12 to $27.39.
With regard to our liabilities, we issued nearly $1.2 billion of new debt through CLOs and a weighted average spread of 154 basis points over SOFR and bonds, which we swapped into a weighted average spread of 154 basis points over SOFR all at market tight spreads compared to traded BDC peers while also upsizing our revolving lines of credit by an aggregate amount of $850 million a portion of which. At a reduced spread.
Our liability stack continues to be diverse with floating rate components, allowing us to be held help offset reduced base rates on the asset side this quarter. On expenses, BXSL has among the lowest management fee and lowest GNA cost as a percentage of NAB across our traded BDC peers, which allows us to focus on high quality assets.
And lastly, credit quality remains strong with 0.3% of investments on non-accrual at cost and 0.2% at fair market value, well below the average of our traded BDC peers, of 2.6% and 1.2% respectively in the third quarter.
All of these are related. One, our low-cost structure and low cost of capital relative to the traded BDC peers allows us to bias our portfolio towards what we believe are higher quality, better borrowers while still delivering what we believe is an attractive return on equity with a leading regular dividend compared to our traded BDC peers. Two, our high-quality focus has delivered NAB stability and strong credit performance since inception.
And 3, attractive performance above our cost of capital leads to a premium valuation which further lowers our cost of capital. As we discussed last quarter, we positioned BXSL for an anticipated ramp up in deal activity throughout 2024, and we saw that quarter-over-quarter.
In the fourth quarter, we had $1.2 billion of investment in commitments, our fifth consecutive quarter of $1 billion plus in commitments. We also had nearly $1.4 billion in new investment funding, most active quarter since 2021. And we continue to lend to what we believe are high quality boards as demonstrated in the fourth quarter at an average loan to value near the mid-30s at yields ranging between 8% to 10% and at a three-year all-in spread above 520 basis points.
This is the hallmark of BXSL, a company that taps into the scale Blackstone's resources, relationships, and reach to deliver a diverse portfolio of assets for our investors at competitive returns compared to our traded BDC peers. At times we may elect to invest in larger credits at tighter spreads, and at other times we may see attractive deals in the historically good neighborhoods with greater spread to LTV ratios in the middle market.
Our scale allows us to play up and down market, which we believe makes us a valuable counterparty to clients and portfolio companies we serve. Looking forward for BXSL, the M&A outlook is positive and suggests a recovery from historical lows as the cost of capital improves and the US administration adopts policies that are potentially pro-growth and pro deregulation.
Private credit market has a major tailwind tied to a significant dry powder that exists with private equity sponsors. And while spreads have tightened, both the quality of companies and the capital structures financed by private credit today continue to improve. We believe this lays a foundation for an act of 2025. And we are excited to see what is to come for our fund and for our investors this year.
With that, I'll pass over to my colleague Jonathan.

Jonathan Bock

Thank you, Brad. And let's turn to slide 6. We ended the quarter with $13.1 billion of investments at fair value over a 9% increase from $12 billion in Q3, and that's while adding 28 new borrowers to our portfolio now totaling over 276 companies. Ending leverage and average leverage kicked up slightly compared to our prior quarter at 1.17 times and 1.15 times respectively remaining towards the middle of our target range of 1 times to 1.25 times.
We increased our liquidity position to $2.4 billion comprised of and available borrowing capacity across our revolving credit facilities including ABLs that to lean into an expanded pipeline. Now for context, last quarter our liquidity position stood at $1.1 billion another testament to our deal flow expectations for 2025. Our weighted average yield on performing debt investments at fair value was 10.4% this quarter and compared to 11.2% last quarter.
The yields on new debt investment fundings and assets sold and repaid during the quarter averaged 9.6% and 11.1% respectively. Let's take a look at the portfolio and slide 7. 98% of BXL's investments are in first lien secured loans, and 99% of those loans are to companies owned by financial sponsors who generally have significant equity value in these capital structures demonstrated by an average loan to value of 46%.
Our portfolio also has what we believe to be a strong LTM EBITDA base averaging $198 million increasing over 3% from last year. And that's three times larger than that of the companies in the Lincoln International Private market database. Now, although we evaluated opportunities across the size spectrum, as evidenced by our investments this year, we've seen continued strength of performance that come from larger companies, and that's a bedrock of our portfolio relative to smaller EBITDA counterparts in terms of higher growth and lower defaults.
Big sales portfolio companies have seen growth rates in line or higher with the broader private credit market databases measured by Lincoln and over 20% more profitability on the LTM EBITDA margin base. When speaking to portfolio performance, it's not only strength that matters, but consistency. Our fund's performance and portfolio company selection both speak volumes to the consistency of our investment process and the talent of our people.
Most importantly, we believe we've demonstrated a commitment to our foundational discipline strategy when we launched BXSL in 2018. Our focus on first lien, senior secured debt. And lower default rate industries is what we view as a very defensive place for investors, and this is further evidenced by our low non accrual rate of 0.3% cost compared to our traded BDC peer average of 2.6% from last quarter.
We continue to emphasize the importance of interest coverage. LTM EBITDA coverage based on average LTM EBITDA for BXSL portfolio companies over the last 12 months was 1.7 times in Q4, which again fair compares favorably to the Lincoln database for the broader private credit market at 1.5 times average coverage in Q4.
Looking at the share of the portfolio below one time interest coverage excluding revenue recurring revenue loans, BXSL is at 9% of fair value versus the Lincoln private credit market index at 15%. Turning to new investments, 93% of the new private debt investments during the quarter were first lien senior secured positions with average LTDs below 40%, meaning there's significant amounts of junior capital beneath our loans, and I'll conclude with some points on our documents and recent amendment activity as a reminder, when we negotiate our credit agreements, especially as the leading lender, we remain highly focused on control and lender protections.
Amendment activity this quarter was down 19% quarter-over-quarter by count, with 39 of BXSL's private borrowers amending documents in Q4. Nearly all of these amendments by position size were associated with add-ons, M&A, DDPL extended. Immaterial technical matters or changes to terms.
Besides these amendments, only one amendment accounting for fewer than 30 basis points of the portfolio was associated with an underperforming investment marked below 90 and featured additional document tightening along with incremental economics.
And with that, I'd like to turn it to my colleague Carlos.

Carlos Whitaker

Thanks, John. Turn to slide 9. The XSL maintains its dividend distribution of $0.77 per share. As you can see, we remain focused on delivering high quality yield to shareholders through steady, well-covered regular dividends, and we expect this approach to continue. As mentioned last quarter, we continue to be optimistic about future potential M&A volumes and the deployment picture for 2025.
Earlier, we detailed the scale of our credit platform demonstrated by our level of new investment fundings in Q4. We can be selective with our borrowers and provide solutions which we believe few managers are capable of offering. For example, BXCI led a $2 billion debt financing for Dropbox, a publicly traded leading content management and collaboration platform.
This business has a sticky and large customer base and generates significant free cash flow, characteristics we see in our lending prospects. We close the transaction with an implied loan to value ratio of under 30%, providing us with sizable equity cushion.
Given Dropbox's large market capitalization and access to broad ranges of financing options, we believe the company chose to partner with Blackstone because of our ability to provide a large scale customized financing solution with price certainty and speed.
That said, we also see opportunities across the middle market to large cap segments of the market due to our broad reach of our platform and investment team. For instance, we led a financing for a consumer services business with sub $100 million of EBITDA owned by a middle market sponsor.
The company is saying sustained growth in a fragmented market and benefits from a premium customer base and recurring services attributes we generally look for in services focused business models. Diving deeper, the median EBITDA of our new investments was $138 million compared to the $198 million weighted average EBITDA for companies in the private portfolio.
Again, we look for investment opportunities and what we believe are high quality transactions at lower loan to values and attractive risk adjusted returns across the size spectrum with our broad reach across the middle market to large cap space.
And with that, I'll turn it over to.

Teddy Desloge

Thanks, Carlos.
I'll start with our operating results on slide 10. In the fourth quarter, BXSL's net investment income was $183 million or $0.84 per share in dollar terms, up over 6% year-over-year and the second highest dollar amount since inception.
Total investment income for the quarter, a record for the fund, was up $49 million or 16% year over year driven by increased interest income. As a reminder, we amortized 100% of OID earned over the life of each loan versus taking fees up front, which we believe provides for greater stability over the longer term. Interestcom excluding payment in kind, fees, and dividends represented over 94% of total investment income in the quarter.
Moving to our balance sheet on slide 11, we ended the quarter with over $13 billion of total portfolio investments at fair value, nearly $7.1 billion of outstanding debt, and over $6 billion of total net asset value, total net assets. NAV per share increased to $27.39 up 0.4%, up from $27.27 last quarter, driven primarily by stable fundamentals across the majority of our portfolio. Excess earnings and share issuance above NA.
Moving to slide 12, in addition, we saw the most active quarter since 2021 on a deployment basis, as Brad outlined. BXSL funding approximately $1.4 billion in a quarter, committing over $1.2 billion, and an estimated additional $162 million committed by BXCI and earmarked for BXSL as of December 31st. Net funded investment activity in the quarter was approximately $1.2 billion up over 230% year-over-year.
Notably, we saw 198 million of repayments in the quarter with a 2024 repayment rate of 6% of the portfolio at fair value compared to 10% for 2023. And as we look forward, we expect portfolio turnover to increase with M&A volumes in a more active capital markets environment.
Next, slide 13 outlines our attractive and diverse liability profile, which includes 39% of drawn debt in unsecured bonds that are not swapped. These unsecured bonds have a weighted average fixed coupon of less than 3%, which we view as a key advantage in an elevated rate environment and contributed to an overall weighted average interest rate on our borrowings of 5.17%, down from 5.45% last quarter.
This also compares to a weighted average yield at fair value on our performing debt investments of 10.4%. While we maintained our three investment grade corporate credit ratings this quarter, it is important to remember we earned a full notch upgrade from both Moody's and Fitch in 2024.
In Q4 we also became one of 3 BDCs with a BAA2 rating, two of which are managed by Blackstone, providing a testament to our disciplined approach to portfolio construction, defensive positioning, and conservative liability structure. We have no maturities on our funded liabilities until 2026, and our debt and funding facilities have an overall weighted average maturity of 3.7 years.
Further, we continue to optimize our cost of capital. In October, we issued a $400 million dollar 3.5-year bond which priced at a 5.35% coupon or 163 basis points over the relevant benchmark treasury rate. With strong demand post issuance, we were able to tap the market again in December, growing the quantum by $300 million at 125 basis points over the relevant benchmark treasury rate. This was the tightest spread BDC bond issued in 2024.
Additionally, BXSL's inaugural $458 million CLO priced in November at Sopher 154 through 61% loan to value, including the senior notes portion pricing at SOFR 155, the tightest spread on senior most notes of any middle market private credit CLO among the 200+ plus issued since 2021.
To conclude, total liquidity at quarter end was $2.4 billion in cash and underdrawn debt available to borrow, while ending leverage as of December 31st was 1.1 turns, slightly up from 1.12 turns in the third quarter near the midpoint of our target range of 1 to 1.1 quarter turns. We believe we have positioned our balance sheet with significant capacity to support increasing activity through end of the year should M&A volumes continue to rebound.
And with that I'll ask the operator to open it up for questions thank you.

Question and Answer Session

Operator

Thank you. (Operator Instructions)
We'll take our first question from Casey Alexander with Compass Point.

Casey Alexander

Hi, good morning, I'm just kinda curious. I mean, it's such a strong, quarter for new originations.
And what we've been hearing from other platforms is that the deal activity hasn't really picked up yet. So, I'm kind of curious out of the, 1.4 billion in new originations kind of how would you characterize what percentage of that is sort of incumbent or is born out of the existing Blackstone universe or ecosystem as compared to, sort of new merchandise that came in the door?

Brad Marshall

Thanks Casey, good question. So what I would say, and I'm glad you asked the question because I think this is, our superpower, if we had one, which is our ability to originate, during market, during periods when the market is slow from a new M&A standpoint.
And where we go find those deals, is really kind of, having the team play the role of banker with a with a balance sheet. They go and create the idea they approach the company, they approach the sponsor, and because we can show up with a $1 billion, $2 billion, $3 billion, $500 million. We can go and create deal flow, when the market doesn't provide it.
So to answer your question, over half our deals in the fourth quarter, fell into that category where, we were in a situation where we had some incumbency where the deal team noticed something in the market. And approached a company proactively, typically this will be in our power alleys which is in tech and software, healthcare and life science, and business services, but you know it does kind of showcase the power of the platform and where scale can be a true advantage, where you can originate in slower periods.
I will say the start of the year is off to the slowest start that we've seen since 2003 just from a new M&A standpoint, so you'll probably kind of hear next quarter from a lot of managers that, deployment is pretty slow, and we continue to be aware of that and find opportunities where we can.

Casey Alexander

All right thank you that's my only question I appreciate it.

Operator

Okay We'll take our next question from Melissa Wedel with JP Morgan.

Melissa Wedel

Good morning. Thanks for taking my questions. Given the usually high level of activity.

Brad Marshall

Mellisa you may be on mute.
So, operator, maybe we'll just go to the next question then come back to Melissa.

Operator

We're going next to Kenneth Lee with RBC Capital Markets.

Kenneth Lee

Hey, good morning, thanks for taking my question.
Just one on, I think of the prepared remarks you alluded to the new investments having, the portfolio companies having lower average EBITDA does than the rest of the portfolio, and I think there's also a discussion about looking more towards the core middle markets.
Just curious whether going forward, you could see a little bit more of a lean towards the core middle market segment there and if so, could you just remind us broadly of the capabilities of the blocks of credit platform. That's available to pursue such opportunities. Thanks.

Teddy Desloge

Yeah, I'm happy to take that. Thanks, Kenneth. So just starting on some of the facts, so our [median] EBITDA in the quarter for New Deal's funded was about $138 million and I think what you're seeing is really the benefit of our enormous origination effort. We have over 280 investment professionals in our in our sub-IG business. We have portfolio companies that we financed in the quarter ranging from $25 million EBITDA to a billion dollars on the high end.
So, we're really seeing the full, the full market landscape I think as the, as the syndicated market has come back, we've seen a little bit better relative value in that core middle market we have significant presence there and we've been able to take advantage of that in the last quarter where spreads were a little bit better.

Kenneth Lee

Got you thank you very much there and it's one quick follow up if I may just want to.
To see if you could probably a little bit more color in terms of what you're seeing across new investment spreads, whether you're seeing a little bit more stabilization there and any kind of outlook, going forward, thanks.

Brad Marshall

Yeah, maybe I'll start, and Teddy can backfill, so spreads, over the course of last year came down, clearly driven by the just the broader market for tightening across all fixed income, as you know we're a big public, loan investor, and we saw actually the AAA liabilities and CLOs tightened by.
Over 100 basis points from their peak and that that really drove, leverage loan asset spreads tighter in combination with, the market outlook is still quite positive, default rates are modest and then supply and demand is a little bit light so spread tightening across the board private credit wasn't spared from that.
I would say the good news, and I'll answer your question, the good news, is that liabilities actually came in, probably more than the assets, so the net interest, between, the assets and liabilities actually pretty steady from the fourth quarter of, 2024 and fourth quarter of 2023, so that's interesting. That was about 300 and just shy of 350 basis points.
And then obviously our cost of capital is a lot lower than others, which helps, but I would expect spreads, to be stable from here, with the chance that, in the near term, they could tighten and then the medium term. I actually think they widen.
I still think we're going to see a pretty meaningful pick up. In M&A activity starting towards the end of the second quarter I think right now we're in a little bit of a lull because there's a lot of market uncertainty around tariffs and policy changes and that's pushed out some of the expected M&A activity but it is coming and it's going to come, I think very actively through the balance of the year.

Teddy Desloge

Yeah, the only thing I would mention there is if you look at our investment activity, we funded $1.2 billion. Our weighted average spread on deals funded was sour plus 510 with a point upfront OID. So, the three-year implied spread on that discount margin is in that so for 550 contexts.
If you look at the variance, there were. You, a couple deals in the in the 400s, but the variance is really sort of 450 for the highest quality up to 550 on the wider range.

Kenneth Lee

Great very helpful there thanks again.

Operator

Thank you. We'll go next to Sean-Paul Adams with Raymond James.

Sean-Paul Adams

Hey guys, good morning. Obviously you guys have a stellar credit track record. However, while the industry portfolio is largely defensive or unaffected by potential tariff impacts with an overweight being in software, has there been any portfolio review to examine, BXSL's broader portfolio exposure to upcoming tariff impacts?

Teddy Desloge

Yeah, thanks, Sean. I'm happy to take that. This is Teddy. We've done a ton of work on this. I think overall our view is continues to be a moving target, right? Very hard to pin down, but as we take a step back, the exporting of physical goods into the US, not into the US, not a significant part of our portfolio.
We looked at areas where COGS and input costs and volumes could both. Be under pressure from higher tariffs from key regions and in particular Mexico, China and Canada overall, I think if we were to put numbers to it, it's kind of mid-single digits type exposure but very hard to indicate sort of what the handicap what the impacts would be so something we're still watching very focused on it certainly comes in up regularly in in new investment committees on assets for instance. Industries like consumer goods where we were already deemphasizing exposure, I think we're even more cautious today.

Sean-Paul Adams

Excellent answer. Thank.

Operator

You.
Thank you. As a reminder one for questions, we'll go next to Finian O'Shea with Wells Fargo Securities.

Finian O'Shea

Hey everyone, good morning. I wanted to ask about the mark on Medallia, sort of just. Mid 90s but inching down and trying to get a feel of what that implies if we should expect that to continue to play out to the extent it's on trailing performance and you know if you're able to provide color like sort of what that you know often we'll hear a 95 means something like 30% under EBITDA do trajectory performance if you could give if color on that handle, that'd be great thank you.

Brad Marshall

Thanks then. Yeah, I'll give you a little bit of insight that we unfortunately don't comment a lot on specific assets just because they're private companies but we clearly understand, the sensitivity for investors given what happened with plural sight, so what I would say with Medallia, around your 30% comment, the company is actually growing, EBITDA has tripled, since we made the investment.
But it's just been a little bit slower to grow into its capital structure than we would like so that the mark reflects, that challenge, but, the product is still very high quality, we're just seeing a little bit of pricing, pressure which is slowing, the, our expected kind of growth, but again it's, EBITDA has grown meaningfully since we did the deal.
I will say what this deal, and I'm glad you brought it up because it highlights a couple things one, being in control of the dialogue with a sponsor when a company is, in this situation is really important, and why it's why we like to lead our deals and control them, focusing on doc quality is paramount for us as where I think some of the other situations that have gotten in trouble, may have had issues with their docs.
100% of our deals or nearly 100% of asset stripping protection, so these are things that we spend a lot of time on, for this, these exact reasons, and then lastly, and this again is I said we had a superpower before maybe this or other superpower, but we are able to play a more active role with companies, and with Medallia we're figuring out how to cross sell their products across the Blackstone Ecosystem, which hopefully you know can drive some value, as the company continues to accelerate, growth, so I threw a lot out there.
I think the mark reflects kind of a little bit of the growth is below our plan, but EBITDA is growing nicely.

Finian O'Shea

Super helpful, really appreciate that. It's just a small follow up. I just want to, I wanted to revisit, get the prior, question on, spread related headwinds. I think you said that can they. The new spreads were in the 5s, low fives, average that looks like this quarter, just to verify did you indicate that that.
Just understanding this quarter's, paper was, 12 quarters ago, committed or originated. Is that consistent with what you're doing today, or should you know one quarter spread skew more to that low end of the range, the sort of 450?

Brad Marshall

I think you're asking on a go forward basis I think spreads are in range with historical our last quarter, I think to answer your question. You know it's always a hard question to answer though Finn because everyone always asks about spreads and no one ever talks about risk, for example, Dropbox that we just did was less than 30% loan to value and I think the spread on that is 490, close to close to 500.
So you really gotta put risk in context of spread. I implore everyone to focus on this. The market's super-efficient, so I think that the winners as it relates to, the BDC model are those that can minimize, credit issues. Those that can drive down their cost of capital across all fronts whether it's their fees, whether it's the leverage facilities, and maintain kind of NAB stability, in a market where, in the moment spreads are a little bit tighter so I think it's really important to focus on risk when we talk about spreads.

Finian O'Shea

I just I guess a follow up there on the market, like there's a lot more being raised out there in other like lower fee formats, the non-traded BDCs, and maybe institutional, certainly industry wide there's a lot still coming in like the direct lending premium, it sort of gets washed out in in the public BC, but a lot of this stuff could be very attractive.
And say a non-traded and all these non-trads are way under levered they're raising a lot of money every day what's your sort of feel of maybe when the dam breaks and the new money, the sort of floor goes down to so for 400 or 375 or how long can it be before we get there? If you have any sort of crystal ball view on that, thanks.

Brad Marshall

I don't have a crystal ball. I will say send the market in leverage finance in the US is a $6 trillion dollar market. Private credits probably about $2 trillion. The real economy is probably something close to $30 trillion, so the white space for private credit, is enormous, which is why, there's more capital being raised for the space, the reason performance being strong, which is why there's investors that are attracted to it.
So, I don't have a crystal ball where spreads go, I guess if the public markets went to a SOFR plus 100. Spread environment, then yes, you could see spreads and private credit, tighten in line with the public markets, but I do think one thing is for certain, which is, the spread to the public markets will continue to be attractive for investors that has not changed.
The other thing I think is important getting into my previous comment. Is the question you're asking is really for a lot of the other kind of BDCs because BXSL is one of the lowest cost you know BDCs in the market and we've done that intentionally so we can focus on higher quality assets and not reach for risk as the market becomes more efficient.
So, I don't know where spreads are going. I do know that in the context of driving returns for our investors, it's what I said earlier, that you need very good credit performance, you need NAP stability, and you want to deliver a dividend higher than what's available in the public markets, and you want to do that on a consistent basis.

Operator

Thank you. We'll go next to Maxwell Fritscher with Truist Securities.

Maxwell Fritscher

Yeah, good morning. Thank you. I'm, one for Mark Hughes. Your kind of just hit on in the last question, the new capital being raised. So going off that, can you comment on competition you're seeing in the upper end of the market, maybe, whether that be BSLs or other direct lenders? Has there been any changes recently or has that been relatively stable?

Brad Marshall

That might be a question for Melissa when we get her back on the call from JPMorgan, but I would say the public markets have definitely come roaring back, this year I think it's a back a little bit to my opening comments around, the outlook is quite, positive in the US, not a lot of new deals supply and demand.
Imbalance, and the cost of liabilities of titan such as asset spreads that have followed, so the banks, have, being a little bit more, active as they underwrite loans for the broadly syndicated markets, and that's resulting in a few repayments of some of our larger deals which for investors is I guess is an immediate positive because they get the call protection.
And the accelerated OID as a result of those repayments but definitely kind of more activity on the public side which to Teddy's earlier points which is why we skewed a little bit more to the kind of upper end of the middle market, more recently because we just saw better opportunities there where we can use our scale we use our brand, we can use our value ad program.
To differentiate, our kind of proposals from the public markets in terms of new private credit managers, there's a lot of new, private credit managers coming into the space, but these are usually with $1 billion, $2 billion, $3 billion, $4 billion dollar funds.
Which if you think about building a fund of, a portfolio for a fund that size you're committing not really more than $100 or $200 million in a deal, so there that competition has gotten maybe a little bit more heated in the small end in the in the lower middle market and so it's really kind of this, more pure middle market that's had a little bit more of a premium.
Europe, not this focuses a lot on Europe, but Europe continues to have a spread premium as well as some of these sectors that are a little bit more constrained and specialized, constrained from a supply and demand standpoint and specialized from a from a sector standpoint. So take life science for example where there's a $170 billion dollar R&D funding GAAP that can it has largely be funded by the equity markets, but that is now turning to the debt markets and you can't get that funding through public, debt alternatives so there are certainly some white spaces that that we're kind of moving into to help drive differentiated returns for our investors.

Operator

Thank you.
Thank you. We'll take our last question from Melissa Wedel with JP Morgan.

Melissa Wedel

Good morning. Let's try this one more time. Can you hear me?

Brad Marshall

Yes.

Melissa Wedel

Okay great thank you I was surprised a little bit, especially given the strength of the origination's activity in 4Q. I was surprised by what seemed like pretty minimal repayments and exits. I guess I was curious if you were surprised by that as well and if you expect a pickup in that, into 2025.
Thank you.

Teddy Desloge

Yeah, thanks Melissa. This is Teddy. I'm happy to take that. So, I think we would agree with your repayments were relatively light in the in the quarter right around 6% actually sort of right on top of 6% for the full year. Where we saw activity to Brad's point was where we had quite a bit of incumbency over the last over half of our deals closed were either existing portfolio companies or we had some level of incumbency so that wouldn't necessarily drive repayments.
I do think our view is if as the. M&A market comes back this year. That is an upside potential lever to returns, right? We generated 94% of our income in the quarter from just interest income, very low accelerated OID very low fee income and not a lot of picks. So as repayments pick up, this year we're at the M&A market picks up that's potential upside driver to returns.

Melissa Wedel

Thank you.

Operator

That will conclude our question-and-answer session at this time. I would like to turn the call back over to Justin Farshidi for any additional or closing remarks.

Justin Farshidi

Thank you and thanks to all of you for joining today's call. We look forward to a follow up discussions and we'll reconvene again next quarter.

Operator

Thank you, that will conclude today's call. We appreciate your participation.