Tetragon Financial Group Limited

Tetragon said fully diluted NAV per share was $41.88 at Dec. 31, 2025 versus $35.43 at Dec. 31, 2024. NAV per share total return was 19.6% for 2025, and ROE was 23.4% net of fees and expenses. The company declared a Q4 dividend of $0.12, up from $0.11 in Q3, for $0.45 for the full year; based on the year-end share price of $17.35, the last four quarters’ dividend implied a yield of about 2.6%. On the NAV bridge, investment income added $11.24 per share, operating expenses/management and incentive fees reduced NAV by $2.78 per share, interest expense reduced NAV by $0.29, gross dividends reduced NAV by $0.44, and other share dilution reduced NAV by $1.28 per share. Looking ahead, management said the BGO call transaction should bring in about $475 million gross in cash when it settles, with taxes still to be paid, and it plans to use $50 million for share repurchases. Management also said the $155 million payment tied to relinquishing ongoing BGO rights is accretive to year-end NAV and should be reflected in the February NAV. The company said its credit facility was increased to $500 million from $400 million and extended to 2034, with $350 million drawn at year-end.

Patrick Giles Dear emphasized that Tetragon’s model is built around a long-term, diversified ecosystem of ideas, asset-management stakes and direct idiosyncratic investments. He highlighted the firm’s shift away from being viewed primarily as a CLO business, noting that bank loans are now less than 5% of the portfolio, and pointed to strong alignment because more than 39% of public shares are owned by principals and employees. His tone was defensive on the discount to NAV but optimistic on the underlying engine of future returns, saying performance and transparency are the main levers rather than a single fix.

Paul Gannon framed the company around three measures: NAV per share total return, ROE and capital returned through dividends. He gave the key figures: $41.88 fully diluted NAV per share, 19.6% NAV per share total return, 23.4% ROE, and $0.45 of full-year dividends, with Q4 at $0.12 versus $0.11 in Q3. He also walked through the NAV bridge, citing $11.24 per share of investment income, $2.78 of operating expense and fee drag, $0.29 of interest expense and $1.28 of dilution. On liquidity, he said cash at bank was $27.1 million and the revolving facility was increased to $500 million and extended to 2034.

Most questions centered on the discount to NAV, buybacks and the BGO sale. Management said there is no “silver bullet” for the discount, arguing that sustained performance, better communication and transparency are the main ways to narrow it, while acknowledging that prior buybacks — $860 million to date, plus nearly $1 billion in dividends — have had minimal impact on the discount. On BGO, they clarified that Sun Life exercised its call, Tetragon will receive about $475 million gross in cash, and the company intends to use the proceeds first for taxes, then $50 million of share buybacks, and then debt repayment. They also explained that Ripple was valued at $150 per share at year-end based on private-market data and an independent valuation agent’s fair value range.