Carlyle Secured Lending, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Part I, Item 1 of this Form 10-Q “Financial Statements and Supplementary Data.” This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “Risk Factors” set forth in this report and in Part I, Item 1A of our 2024 Form 10-K. Our actual results could differ materially from those anticipated by such forward-looking statements due to factors discussed under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” appearing elsewhere in this Form 10-Q.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Part I, Item 1 of this Form 10-Q “Financial Statements.” This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “Risk Factors” set forth in this report and in Part I, Item 1A of our 2024 Form 10-K. Our actual results could differ materially from those anticipated by such forward-looking statements due to factors discussed under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” appearing elsewhere in this Form 10-Q.

Previous wording

•Adjusted for the financial impact of the purchase premium attributed to the CSL III Merger and purchase discount attributed to the Credit Fund II Purchase, the adjusted net investment income per common share (a non-GAAP financial measure) was $0.39. Refer to the Adjusted Net Investment Income and Adjusted Net Income discussion within this section for further details.

Current wording

•Adjusted for the financial impact of the purchase premium attributed to the CSL III Merger and purchase discount attributed to the Credit Fund II Purchase, the adjusted net investment income per common share (a non-GAAP financial measure) was $0.38. Refer to the Adjusted Net Investment Income and Adjusted Net Income discussion within this section for further details.

Previous wording

•Net investment income for the three months ended June 30, 2025 increased from the comparable period in the prior year, primarily due to a higher average outstanding investment balance due to net origination activity in 2025, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025. This was partially offset by lower yields on investments.

Current wording

•Net investment income for the three months ended September 30, 2025 increased from the comparable period in the prior year, primarily driven by a higher average outstanding investment balance due to net origination activity in 2025, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025. This was partially offset by lower yields on investments.

Previous wording

•The NAV per common share decreased to $16.43 as of June 30, 2025 from $16.63 as of March 31, 2025.

Current wording

•The NAV per common share decreased to $16.36 as of September 30, 2025 from $16.43 as of June 30, 2025.

Previous wording

•As of June 30, 2025, we held 202 investments across 148 portfolio companies and 28 industries for a total fair value of $2.3 billion.

Current wording

•As of September 30, 2025, we held 221 investments across 158 portfolio companies and 29 industries for a total fair value of $2.4 billion.

Previous wording

•During the three months ended June 30, 2025, our investment balance increased from $2.2 billion to $2.3 billion driven by net origination activity.

Current wording

•During the three months ended September 30, 2025, our investment balance increased from $2.3 billion to $2.4 billion driven by net origination activity.

Previous wording

•As of June 30, 2025, non-accrual investments represented 3.0% and 2.1% of our portfolio based on cost and fair value, respectively.

Current wording

•As of September 30, 2025, non-accrual investments represented 1.6% and 1.0% of our portfolio based on cost and fair value, respectively.

Previous wording

•Total liquidity as of June 30, 2025 was $613.1 million in cash and undrawn debt capacity.

Current wording

•Total liquidity as of September 30, 2025 was $594.6 million in cash and undrawn debt capacity.

Previous wording

As a BDC, we believe that the key components of our results of operations for our business are earnings per share, dividends declared, net investment income and net asset value per common share. For the three months ended June 30, 2025, we recorded basic earnings per common share of $0.20, declared a dividend of $0.40 per common share and earned $0.39 of net investment income per common share.

Current wording

As a BDC, we believe that the key components of our results of operations for our business are earnings per share, dividends declared, net investment income and net asset value per common share. For the three months ended September 30, 2025, we recorded basic earnings per common share of $0.33, declared a dividend of $0.40 per common share and earned $0.37 of net investment income per common share.

Previous wording

For the three months ended June 30, 2025 and March 31, 2025, we declared dividends per common share of $0.40 and $0.45, respectively. As of June 30, 2025 and December 31, 2024, our NAV per share was $16.43 and $16.80, respectively.

Current wording

For the three months ended September 30, 2025 and June 30, 2025, we declared dividends per common share of $0.40 and $0.40, respectively. As of September 30, 2025 and December 31, 2024, our NAV per share was $16.36 and $16.80, respectively.

Previous wording

(1)Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of June 30, 2025. Weighted average yield at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount (“OID”) and market discount earned, divided by (b) total fair value included in such securities. Weighted average yield at amortized cost is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned, divided by (b) total amortized cost included in such securities. Weighted average yields exclude investments on non-accrual status. Actual yields earned over the life of each investment could differ materially from the yields presented above. Inclusive of all debt and income producing investments and investments on non-accrual status, the weighted average yield on amortized cost was 10.6% as of June 30, 2025.

Current wording

(1)Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of September 30, 2025. Weighted average yield at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount (“OID”) and market discount earned, divided by (b) total fair value included in such securities. Weighted average yield at amortized cost is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned, divided by (b) total amortized cost included in such securities. Weighted average yields exclude investments on non-accrual status. Actual yields earned over the life of each investment could differ materially from the yields presented above. Inclusive of all debt and income producing investments and investments on non-accrual status, the weighted average yield on amortized cost was 10.4% as of September 30, 2025.

Previous wording

On March 21, 2014, we closed on a senior secured revolving credit facility (the “Credit Facility”), which was most recently amended and restated on March 12, 2025, and may be further amended from time to time. On July 10, 2025, we increased the total commitments under the Credit Facility by $25,000 pursuant to the terms of the agreement, resulting in total commitments increasing to $960,000 ($935,000 prior to the July 10, 2025 increase), pursuant to the terms of the agreement, subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of our portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that we may incur in accordance with the terms of the Credit Facility. Proceeds of the Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. Maximum capacity under the Credit Facility may be increased, subject to certain conditions, to $1,402,500 through the exercise by us of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Credit Facility includes a $75,000 limit for swingline loans and a $30,000 limit for letters of credit. Subject to certain exceptions, the Credit Facility is secured by a first lien security interest in substantially all of the portfolio investments held by us. The Credit Facility includes customary covenants, including certain financial covenants related to asset coverage, stockholders’ equity and liquidity, certain limitations on the incurrence of additional indebtedness and liens, and other maintenance covenants, as well as usual and customary events of default for senior secured revolving credit facilities of this nature.

Current wording

On March 21, 2014, we closed on a senior secured revolving credit facility (the “Credit Facility”), which was most recently amended and restated on March 12, 2025, and may be further amended from time to time. On July 10, 2025, we increased the total commitments under the Credit Facility by $25,000, resulting in total commitments increasing to $960,000 ($935,000 prior to the July 10, 2025 increase), pursuant to the terms of the agreement, subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of our portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that we may incur in accordance with the terms of the Credit Facility. Proceeds of the Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. Maximum capacity under the Credit Facility may be increased, subject to certain conditions, to $1,402,500 through the exercise by us of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Credit Facility includes a $75,000 limit for swingline loans and a $30,000 limit for letters of credit. Subject to certain exceptions, the Credit Facility is secured by a first lien security interest in substantially all of the portfolio investments held by us. The Credit Facility includes customary covenants, including certain financial covenants related to asset coverage, stockholders’ equity and liquidity, certain limitations on the incurrence of additional indebtedness and liens, and other maintenance covenants, as well as usual and customary events of default for senior secured revolving credit facilities of this nature.

Previous wording

On October 18, 2024, we completed a public offering of $300.0 million aggregate principal of 6.75% senior unsecured notes due February 18, 2030 (the “2030 Notes”). We may redeem the 2030 Notes in whole or in part at our option at any time or from time to time at a redemption price equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the notes matured on January 18, 2030) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points less (b) interest accrued to the date of redemption, or (2) 100% of the principal amount of the 2030 Notes to be redeemed, plus, in either case accrued and unpaid interest thereon. The 2030 Notes are general unsecured obligations of ours that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by us.

Current wording

On October 18, 2024, we completed a public offering of $300.0 million aggregate principal of 6.75% senior unsecured notes due February 18, 2030 (the “2030 Notes”). We may redeem the 2030 Notes in whole or in part at our option at any time or from time to time at a redemption price equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the notes matured on January 18, 2030) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points less (b) interest accrued to the date of redemption, or (2) 100% of the principal amount of the 2030 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after January 18, 2030, we may redeem the 2030 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding the redemption date.

Previous wording

In November 2023, in connection with the issuance of the 2028 Notes, the Company entered into a five-year interest rate swap agreement with Morgan Stanley Capital Services LLC (“Morgan Stanley”) to mitigate the exposure to adverse fluctuations in interest rates for a total notional amount of $85.0 million, maturing on December 1, 2028. Morgan Stanley has the ability to exercise an early termination commencing on December 1, 2025, subject to providing written notice thirty days prior. Under the interest rate swap agreement, the Company receives a fixed interest of 8.20% and pays a floating rate based on the compounded average daily SOFR rate plus 3.139%. The Company designated this interest rate swap as a hedging instrument to the 2028 Notes.

Current wording

In November 2023, in connection with the issuance of the 2028 Notes, we entered into a five-year interest rate swap agreement with Morgan Stanley Capital Services LLC (“Morgan Stanley”) to mitigate the exposure to adverse fluctuations in interest rates for a total notional amount of $85.0 million, maturing on December 1, 2028. Morgan Stanley has the ability to exercise an early termination commencing on December 1, 2025, subject to providing written notice thirty days prior. Under the interest rate swap agreement, we receive a fixed interest of 8.20% and pay a floating rate based on the compounded average daily SOFR rate plus 3.139%. We designated this interest rate swap agreement as a hedging instrument to the 2028 Notes. On October 31, 2025, Morgan Stanley notified us of its intention to exercise its early termination right, effective December 1, 2025.

Previous wording

In October 2024, in connection with the issuance of the 2030 Notes, the Company entered into an interest rate swap agreement with JP Morgan Chase Bank N.A. (“JP Morgan”) to mitigate the exposure to adverse fluctuations in interest rates for a total notional amount of $300.0 million, maturing on February 18, 2030. Under the interest rate agreement, commencing on the effective date of August 18, 2025, the Company receives a fixed interest rate of 6.75% and pays a floating interest rate based on the compounded average daily SOFR plus 3.235%. The Company designated this interest rate swap as a hedging instrument to the 2030 Notes.

Current wording

In October 2024, in connection with the issuance of the 2030 Notes, we entered into an interest rate swap agreement with JP Morgan Chase Bank N.A. (“JP Morgan”) to mitigate the exposure to adverse fluctuations in interest rates for a total notional amount of $300.0 million, maturing on February 18, 2030. Under the interest rate agreement, commencing on the effective date of August 18, 2025, we receive a fixed interest rate of 6.75% and pay a floating interest rate based on the compounded average daily SOFR plus 3.235%. We designated this interest rate swap agreement as a hedging instrument to the 2030 Notes.

Previous wording

On July 2, 2024, the Company and the 2015-1 Issuer completed a refinancing of the 2015-1R Notes (the “2015-1R Refinancing”), which resulted in the issuance of a $410.0 million collateralized loan obligation (“the “2015-1N Debt”). On the closing date of the 2015-1R Refinancing, the 2015-1 Issuer refinanced the 2015-1R Notes with the 2015-1N Debt, issued additional 2015-1 Issuer Preferred Interests to the Company in the aggregate notional amount of $13,500, increasing the 2015-1 Issuer Preferred Interests held by the Company to approximately $118,054 and extended the reinvestment period end date and maturity date applicable to the 2015-1 Issuer to July 15, 2028 and July 1, 2036, respectively.

Current wording

On July 2, 2024, the Company and the 2015-1 Issuer completed a refinancing of the 2015-1R Notes (the “2015-1R Refinancing”), which resulted in the issuance of a $410.0 million collateralized loan obligation (the “2015-1N Debt”). On the closing date of the 2015-1R Refinancing, the 2015-1 Issuer refinanced the 2015-1R Notes with the 2015-1N Debt, issued additional 2015-1 Issuer Preferred Interests to the Company in the aggregate notional amount of $13,500, increasing the 2015-1

Previous wording

Since inception of Credit Fund and through June 30, 2025, we and Credit Partners each made capital contributions of $1 in members’ equity and $216,000 in subordinated loans to Credit Fund. On March 24, 2025, the Company and Credit Partners each received an aggregate return of capital on subordinated loans of $62,500. Since inception, the Company and Credit Partners each have received an aggregate return of capital on subordinated loans of $85,500. The cost and fair value of our investment in Credit Fund was $130,501 and $120,164, respectively, as of June 30, 2025 and $193,001 and $182,636, respectively, as of December 31, 2024.

Current wording

Since inception of Credit Fund and through September 30, 2025, we and Credit Partners each made capital contributions of $1 in members’ equity and $216,000 in subordinated loans to Credit Fund. On March 24, 2025, the Company and Credit Partners each received an aggregate return of capital on subordinated loans of $62,500. Since inception, the Company and Credit Partners each have received an aggregate return of capital on subordinated loans of $85,500. The cost and fair value of our investment in Credit Fund was $130,501 and $120,217, respectively, as of September 30, 2025 and $193,001 and $182,636, respectively, as of December 31, 2024.

Previous wording

Our share of the dividends declared by Credit Fund was $5,000 for the three months ended June 30, 2025 and $5,500 for the three months ended March 31, 2025. As of June 30, 2025 and March 31, 2025, our annualized dividend yield from Credit Fund was 15.3% and 11.7%, respectively. Below is a summary of Credit Fund’s portfolio as of June 30, 2025 and December 31, 2024:

Current wording

Our share of the dividends declared by Credit Fund was $5,000 for both the three months ended September 30, 2025 and the three months ended June 30, 2025. As of both September 30, 2025 and June 30, 2025, our annualized dividend yield from Credit Fund was 15.3%. Below is a summary of Credit Fund’s portfolio as of September 30, 2025 and December 31, 2024:

Previous wording

The increase in investment income for the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, was primarily driven by a higher average outstanding investment balance due to net origination activity in 2025, including assets acquired in the CSL III Merger and the Credit Fund II Purchase. As of June 30, 2025, the size of our portfolio increased to $2,366,445 from $2,273,998 as of March 31, 2025, at amortized cost. As of both June 30, 2025 and March 31, 2025, the weighted average yield of our total debt and income producing investments was 10.9%, based on amortized cost.

Current wording

The decrease in investment income for the three months ended September 30, 2025, as compared to the three months ended June 30, 2025, was primarily driven by a decrease in accretion of discounts from repayment activity and lower weighted average yields on the portfolio. As of September 30, 2025, the size of our portfolio increased to $2,442,191 from $2,366,445 as of June 30, 2025, at amortized cost. As of September 30, 2025 and June 30, 2025, the weighted average yield of our total debt and income producing investments was 10.6% and 10.9%, respectively, based on amortized cost.

Previous wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of June 30, 2025 and March 31, 2025, six and five of our debt and preferred equity investments were on non-accrual status, respectively. Non-accrual investments had a fair value of $48,069 and $36,622, which represented approximately 2.1% and 1.6% of total investments at fair value as of June 30, 2025 and March 31, 2025, respectively. The remaining income producing investments were performing and current on their interest payments as of June 30, 2025 and March 31, 2025.

Current wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of both periods ended September 30, 2025 and June 30, 2025, six of our debt and preferred equity investments were on non-accrual status. Non-accrual investments had a fair value of $23,508 and $48,069, which represented approximately 1.0% and 2.1% of total investments at fair value as of September 30, 2025 and June 30, 2025, respectively. The remaining income producing investments were performing and current on their interest payments as of September 30, 2025 and June 30, 2025.

Previous wording

The increase in other income for the three months ended June 30, 2025, compared to the three months ended March 31, 2025, was primarily driven by an increase in amendment fees.

Current wording

The increase in other income for the three months ended September 30, 2025, compared to the three months ended June 30, 2025, was primarily driven by an increase in prepayment fees.

Previous wording

The increase in interest expense and credit facility fees was primarily driven by higher outstanding borrowings during the three months ended June 30, 2025, resulting from liabilities assumed in connection with the CSL III Merger.

Current wording

The increase in interest expense and credit facility fees was primarily driven by the change from a fixed rate to a floating rate on the 2030 Notes and higher average outstanding borrowings during the three months ended September 30, 2025.

Previous wording

The increase in base management fees was driven by higher average gross assets as a result of the assets acquired in the CSL III Merger and the Credit Fund II Purchase for the three months ended June 30, 2025 compared to the three months ended March 31, 2025.

Current wording

The increase in base management fees was driven by higher average gross assets for the three months ended September 30, 2025 compared to the three months ended June 30, 2025.

Previous wording

The increase in incentive fees was driven by higher pre-incentive fee net investment income for the three months ended June 30, 2025 compared to the three months ended March 31, 2025.

Current wording

The decrease in incentive fees was driven by lower pre-incentive fee net investment income for the three months ended September 30, 2025 compared to the three months ended June 30, 2025.

Previous wording

During the three months ended June 30, 2025, we recognized a realized net loss related to sale transactions with Credit Fund. During the three months ended March 31, 2025, we recognized a realized loss related to the restructuring of our investment in Aimbridge Acquisition Co., from debt to equity and the consolidation of our investment in Credit Fund II as a result of the Credit Fund II Purchase.

Current wording

During the three months ended September 30, 2025, we recognized a realized net loss related to the restructurings of Align Precision Group, LLC (formerly known as Maverick Acquisition, Inc.) and FPG Intermediate Holdco, LLC. During the three months ended June 30, 2025, we recognized a realized net loss related to sale transactions with Credit Fund.

Previous wording

The following table sets forth information regarding our consolidated results of operations for the three and six months ended June 30, 2025 and June 30, 2024:

Current wording

The following table sets forth information regarding our consolidated results of operations for the three and nine months ended September 30, 2025 and September 30, 2024:

Previous wording

The increase in investment income for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, was primarily driven by a higher average outstanding investment balance due to net origination activity in 2025, including assets acquired in the CSL III Merger and the Credit Fund II Purchase. As of June 30, 2025, the size of our portfolio increased to $2,366,445 from $1,783,219 as of June 30, 2024, at amortized cost. As of June 30, 2025 and June 30, 2024, the weighted average yield of our total debt and income producing investments was 10.9% and 12.7%, respectively, based on amortized cost.

Current wording

The increase in investment income for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, was primarily driven by a higher average outstanding investment balance due to net origination activity in 2025, including assets acquired in the CSL III Merger and the Credit Fund II Purchase. As of September 30, 2025, the size of our portfolio increased to $2,442,191 from $1,757,621 as of September 30, 2024, at amortized cost. As of September 30, 2025 and September 30, 2024, the weighted average yield of our total debt and income producing investments was 10.6% and 11.9%, respectively, based on amortized cost.

Previous wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of June 30, 2025 and June 30, 2024, six and three of our debt and preferred equity investments were on non-accrual status, respectively. Non-accrual investments had a fair value of $48,069 and $30,209, which represented approximately 2.1% and 1.8% of total investments at fair value as of June 30, 2025 and June 30, 2024, respectively. The remaining income producing investments were performing and current on their interest payments as of June 30, 2025 and June 30, 2024.

Current wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of September 30, 2025 and September 30, 2024, six and two of our debt and preferred equity investments were on non-accrual status, respectively. Non-accrual investments had a fair value of $23,508 and

Previous wording

The decrease in dividend income for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, was primarily driven by a decrease in dividend income from Credit Fund II due to the Credit Fund II Purchase.

Current wording

The decrease in dividend income for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, was primarily driven by a decrease in dividend income from Credit Fund II due to the Credit Fund II Purchase.

Previous wording

The increase in other income for the three months ended June 30, 2025, compared to three months ended June 30, 2024, is due to higher prepayment and undrawn commitment fees. The decrease in other income for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was driven by lower amendment fees partially offset by higher prepayment and undrawn commitment fees.

Current wording

The increase in other income for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, was primarily driven by an increase in prepayment fees partially offset by a decrease in amendment fees.

Previous wording

The increase in interest expense and credit facility fees for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, was primarily driven by a higher average principal balance during the three and six months ended June 30, 2025, resulting from liabilities assumed in connection with the CSL III Merger.

Current wording

The increase in interest expense and credit facility fees for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, was primarily driven by a higher average principal balance during the three and nine months ended September 30, 2025, resulting from liabilities assumed in connection with the CSL III Merger.

Previous wording

The increase in base management fees for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, was driven by a higher average gross assets as a result of the assets acquired in the CSL III Merger and the Credit Fund II Purchase for the three months ended June 30, 2025.

Current wording

The increase in base management fees for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, was driven by a higher average gross assets as a result of the assets acquired in the CSL III Merger and the Credit Fund II Purchase for the three and nine months ended September 30, 2025.

Previous wording

The change in incentive fees for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, is driven by changes in pre-incentive fee net investment income.

Current wording

The change in incentive fees for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, is driven by changes in pre-incentive fee net investment income.

Previous wording

For the three and six months ended June 30, 2025, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation (depreciation) as of June 30, 2025. The accrual for any capital gains incentive fee under U.S. GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. See Note 4, Related Party Transactions, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on the incentive and base management fees.

Current wording

For the three and nine months ended September 30, 2025, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation (depreciation) as of September 30, 2025. The accrual for any capital gains incentive fee under U.S. GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. See Note 4, Related Party Transactions, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on the incentive and base management fees.

Previous wording

The amount of and number of investments with realized gain (loss) and changes in unrealized appreciation (depreciation) for the three and six months ended June 30, 2025 and June 30, 2024 were as follows:

Current wording

The amount of and number of investments with realized gain (loss) and changes in unrealized appreciation (depreciation) for the three and nine months ended September 30, 2025 and September 30, 2024 were as follows:

Previous wording

During the six months ended June 30, 2025, we recognized a realized loss related to the restructuring of our investment in Aimbridge Acquisition Co., Inc. from debt to equity and the consolidation of our investment in Credit Fund II as a result of the Credit Fund II Purchase. During the six months ended June 30, 2024, we recognized a realized loss after the write-off of our investment in American Physician Partners, partially offset by a realized gain from the recapitalization of our investment in Dermatology Associates.

Current wording

During the nine months ended September 30, 2025, we recognized a net realized loss related to the restructuring of our investments in Aimbridge Acquisition Co., Inc. (from debt to equity), Align Precision Group, LLC (formerly known as Maverick Acquisition, Inc.), FPG Intermediate Holdco, LLC, and the consolidation of our investment in Credit Fund II as a result of the Credit Fund II Purchase. During the nine months ended September 30, 2024, we recognized a net realized loss after the write-off of our investment in American Physician Partners, sale of our investments in Emergency Communications Network, LLC and Stonegate Pub Company Bidco Limited, partially offset by a realized gain from the recapitalization of our investment in Dermatology Associates and sale of our equity investment in Chartis Holding, LLC.

Previous wording

We have capitalized our business to date primarily through the issuance and sale of our common stock, asset-level financing, and the issuance of unsecured senior debt. As of June 30, 2025, we had $1,318,615 of outstanding consolidated indebtedness under the Credit Facilities, the 2015-1N Debt, the 2028 Notes, and the 2030 Notes as previously discussed within Portfolio and Investment Activity - Portfolio Financing. As of June 30, 2025, we had $613,076 of liquidity that can be used to satisfy our short-term cash requirements and working capital for our business. As of June 30, 2025 and December 31, 2024, the statutory debt to equity ratio was 1.10x and 1.20x, respectively. Refer to Note 8, Borrowings, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our financing.

Current wording

We have capitalized our business to date primarily through the issuance and sale of our common stock, asset-level financing, and the issuance of unsecured senior debt. As of September 30, 2025, we had $1,315,719 of outstanding consolidated indebtedness under the Credit Facilities, the 2015-1N Debt, the 2028 Notes, and the 2030 Notes as previously discussed within Portfolio and Investment Activity - Portfolio Financing. As of September 30, 2025, we had $594,594 of liquidity that can be used to satisfy our short-term cash requirements and working capital for our business. As of September 30, 2025 and December 31, 2024, the statutory debt to equity ratio was 1.10x and 1.20x, respectively. Refer to Note 8, Borrowings, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our financing.

Previous wording

During the six months ended June 30, 2025, we paid $702,640 related to cost of investments purchased and received $532,208 in proceeds from sales and repayments on our investments. During the six months ended June 30, 2025, we had net borrowings of $123,456 on our Credit Facilities.

Current wording

During the nine months ended September 30, 2025, we paid $930,233 related to cost of investments purchased and received $779,900 in proceeds from sales and repayments on our investments. During the nine months ended September 30, 2025, we had net borrowings of $122,122 on our Credit Facilities and paid $74,877 of dividends in cash.

Previous wording

As of June 30, 2025 and December 31, 2024, the Company had total senior securities of $1,318,615 and $1,028,439, respectively, consisting of secured borrowings under the Credit Facility, the CSL III SPV Credit Facility, the 2028 Notes, the 2030 Notes, the 2015-1N Debt, and the Preferred Stock, and had asset coverage ratios of 190.8% and 183.2%, respectively. For the purposes of the asset coverage ratio as of December 31, 2024, the Preferred Stock is classified as a senior security.

Current wording

As of September 30, 2025 and December 31, 2024, the Company had total senior securities of $1,315,719 and $1,028,439, respectively, consisting of secured borrowings under the Credit Facility, the CSL III SPV Credit Facility, the 2028 Notes, the 2030 Notes, the 2015-1N Debt, and the Preferred Stock, and had asset coverage ratios of 190.6% and 183.2%, respectively. For the purposes of the asset coverage ratio as of December 31, 2024, the Preferred Stock is classified as a senior security.