Letters

The Value of Restraint

Throughout 2025, we approached deployment with restraint. Opportunities were abundant, but only a limited number met our underwriting standards.

In public markets, we emphasized balance sheet strength and valuation support while maintaining meaningful liquidity. In private markets, we committed capital primarily to established managers operating in segments where dislocation created attractive entry points.

Select special situations and structured credit investments benefited from market volatility, reinforcing the value of preparedness and patience. The ability to do nothing remains an underappreciated advantage.

Resilience Through Structure

Capital preservation remained central to portfolio construction. By avoiding excessive leverage and maintaining diversification across asset classes, we navigated periods of volatility without forced action.

In several instances, market stress allowed us to add to high-conviction positions at improved terms. In others, restraint proved equally valuable.

Partnership quality continued to differentiate outcomes. Our managers and operating partners demonstrated discipline under pressure, reinforcing our belief that alignment and judgment matter more than market timing. These relationships, built over years, allowed us to move with confidence when conditions warranted.

Looking Ahead

We enter 2026 with humility toward uncertainty and confidence in our process. Capital will remain patient, liquidity intentional, and risk tightly controlled.

Our responsibility is not to predict markets, but to remain prepared for them.