ARES CAPITAL CORP

Previous wording

•ongoing conflicts in the Middle East and South Americaand the Russia-Ukraine war, including the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest;

Current wording

•ongoing conflicts in the Middle Eastand the Russia-Ukraine war, including the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest;

Previous wording

Since our initial public offering (“IPO”) on October 8, 2004 through March 31, 2026, our exited investments resulted in an asset level realized gross internal rate of return to us of approximately 13% (based on original cash invested, net of syndications, of approximately $56.9 billion and total proceeds from such exited investments of approximately $73.4 billion). Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of expenses related to investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized.

Current wording

Since our initial public offering (“IPO”) on October 8, 2004 through June 30, 2026, our exited investments resulted in an asset level realized gross internal rate of return to us of approximately 13% (based on original cash invested, net of syndications, of approximately $58.0 billion and total proceeds from such exited investments of approximately $74.9 billion). Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of expenses related to investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized.

Previous wording

(1)New investment commitments include new agreements to fund revolving loans or delayed draw loans. See Note 7 to our consolidated financial statements for the three months ended March 31, 2026 for more information on our commitments to fund revolving loans or delayed draw loans.

Current wording

(1)New investment commitments include new agreements to fund revolving loans or delayed draw loans. See Note 7 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on our commitments to fund revolving loans or delayed draw loans.

Previous wording

(2)Includes both funded and unfunded commitments. Of these new investment commitments, we funded $2.5 billion and $2.2 billion for the three months ended March 31, 2026 and 2025, respectively.

Current wording

(2)Includes both funded and unfunded commitments. Of these new investment commitments, we funded $2.2 billion and $2.0 billion for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

(3)Includes both funded and unfunded commitments. For the three months ended March 31, 2026 and 2025, investment commitments exited included exits of unfunded commitments of $430 million and $536 million, respectively.

Current wording

(3)Includes both funded and unfunded commitments. For the three months ended June 30, 2026 and 2025, investment commitments exited included exits of unfunded commitments of $265 million and $171 million, respectively.

Previous wording

(4)For the three months ended March 31, 2026 and 2025, net fundings of first lien secured revolving loans were $189 million and $80 million, respectively.

Current wording

(4)For the three months ended June 30, 2026 and 2025, net repayments of first lien secured revolving loans were $15 million and $23 million, respectively.

Previous wording

(5)See “Senior Direct Lending Program” below and Note 4 to our consolidated financial statements for the three months ended March 31, 2026 for more information on the SDLP (as defined below).

Current wording

(5)See “Senior Direct Lending Program” below and Note 4 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on the SDLP (as defined below).

Previous wording

(6)Includes our subordinated loan to and equity investments in IHAM (as defined below), as applicable. See “Ivy Hill Asset Management, L.P.” below and Note 4 to our consolidated financial statements for the three months ended March 31, 2026 for more information on IHAM.

Current wording

(6)Includes our subordinated loan to and equity investments in IHAM (as defined below), as applicable. See “Ivy Hill Asset Management, L.P.” below and Note 4 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on IHAM.

Previous wording

(2)First lien senior secured loans include certain loans that we classify as “unitranche” loans. The total amortized cost and fair value of the loans that we classified as “unitranche” loans were $11.4 billion and $11.2 billion, respectively, as of March 31, 2026, and $11.3 billion and $11.2 billion, respectively, as of December 31, 2025.

Current wording

(2)First lien senior secured loans include certain loans that we classify as “unitranche” loans. The total amortized cost and fair value of the loans that we classified as “unitranche” loans were $13.1 billion and $12.8 billion, respectively, as of June 30, 2026, and $11.3 billion and $11.2 billion, respectively, as of December 31, 2025.

Previous wording

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 45 and 39 different borrowers as of March 31, 2026 and December 31, 2025, respectively.

Current wording

(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 72 and 39 different borrowers as of June 30, 2026 and December 31, 2025, respectively.

Previous wording

We have commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) our discretion. Our commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels). We are also party to subscription agreements to fund equity investments. See Note 7 to our consolidated financial statements for the three months ended March 31, 2026 for more information on our unfunded commitments, including commitments to issue letters of credit, related to certain of our portfolio companies.

Current wording

We have commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) our discretion. Our commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels). We are also party to subscription agreements to fund equity investments. See Note 7 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on our unfunded commitments, including commitments to issue letters of credit, related to certain of our portfolio companies.

Previous wording

As of March 31, 2026 and December 31, 2025, loans on non-accrual status represented 2.1% of the total investments at amortized cost (or 1.2% at fair value) and 1.8% at amortized cost (or 1.2% at fair value), respectively.

Current wording

As of June 30, 2026 and December 31, 2025, loans on non-accrual status represented 2.4% of the total investments at amortized cost (or 1.4% at fair value) and 1.8% at amortized cost (or 1.2% at fair value), respectively.

Previous wording

Ivy Hill Asset Management, L.P. (“IHAM”), our wholly owned portfolio company, is an asset manager and an SEC-registered investment adviser. As of March 31, 2026, IHAM had assets under management of approximately $16.3 billion. As of March 31, 2026, IHAM managed 24 vehicles (the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of March 31, 2026 and December 31, 2025 was $3,419 million and $3,190 million, respectively. For the three months ended March 31, 2026 and 2025, IHAM had management and incentive fee income of $15 million and $12 million, respectively, and other investment-related income of $98 million and $58 million, respectively, which included net realized gains or losses on investments and other transactions.

Current wording

Ivy Hill Asset Management, L.P. (“IHAM”), our wholly owned portfolio company, is an asset manager and an SEC-registered investment adviser. As of June 30, 2026, IHAM had assets under management of approximately $16.3 billion. As of June 30, 2026, IHAM managed 24 vehicles (the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of June 30, 2026 and December 31, 2025 was $3,628 million and $3,190 million, respectively. For the three and six months ended June 30, 2026, IHAM had management and incentive fee income of $15 million and $30 million, respectively, and investment-related income of $100 million and $198 million, respectively, which included net realized gains or losses on investments and other transactions. For the three and six months ended June 30, 2025, IHAM had management and incentive fee income of $12 million and $24 million, respectively, and investment-related income of $55 million and $113 million, respectively, which included net realized gains or losses on investments and other transactions.

Previous wording

The interest income and dividend income that we earned from IHAM for the three months ended March 31, 2026 were as follows:

Current wording

The interest income and dividend income that we earned from IHAM for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, us. For any such sales or purchases by the IHAM Vehicles to or from us, the IHAM Vehicle must obtain approval from third parties unaffiliated with us or IHAM, as applicable. During the three months ended March 31, 2026 and 2025, IHAM or certain of the IHAM Vehicles purchased $1,042 million and $794 million, respectively, of loans from us. For the three months ended March 31, 2026 and 2025, we recognized approximately $3 million and $0 million of net realized gains, respectively, from these sales. During the three months ended March 31, 2026 and 2025, neither IHAM nor any IHAM Vehicles sold any investments to us.

Current wording

From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, us. For any such sales or purchases by the IHAM Vehicles to or from us, the IHAM Vehicle must obtain approval from third parties unaffiliated with us or IHAM, as applicable. During the six months ended June 30, 2026 and 2025, IHAM or certain of the IHAM Vehicles purchased $2,128 million and $1,371 million, respectively, of loans from us. For the six months ended June 30, 2026 and 2025, we recognized approximately $2 million and $0 million of net realized gains, respectively, from these sales. During the six months ended June 30, 2026 and 2025, neither IHAM nor any IHAM Vehicles sold any investments to us.

Previous wording

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with U.S. generally accepted accounting principles (“GAAP”), as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025 are presented below.

Current wording

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with U.S. generally accepted accounting principles (“GAAP”), as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 are presented below.

Previous wording

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from our valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of March 31, 2026 and December 31, 2025 was $3,419 million and $3,190 million, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of March 31, 2026 and December 31, 2025 was $12,339 million and $11,766 million, respectively.

Current wording

(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from our valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of June 30, 2026 and December 31, 2025 was $3,628 million and $3,190 million, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of June 30, 2026 and December 31, 2025 was $13,381 million and $11,766 million, respectively.

Previous wording

(4)As of March 31, 2026 and December 31, 2025, net unrealized losses of $102 million and $85 million, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.

Current wording

(4)As of June 30, 2026 and December 31, 2025, net unrealized losses of $125 million and $85 million, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.

Previous wording

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $292 million and $167 million as of March 31, 2026 and December 31, 2025, respectively.

Current wording

(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $316 million and $167 million as of June 30, 2026 and December 31, 2025, respectively.

Previous wording

We have established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. The joint venture is called the Senior Direct Lending Program, LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). In July 2016, we and Varagon and its clients completed the initial funding of the SDLP. We, and other BDCs, registered closed-end management investment companies and other affiliated investment entities managed by our investment adviser or its affiliates, may directly co-invest with the SDLP in accordance with the terms of the Co-Investment Exemptive Order. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP, including co-investment transactions made by the SDLP in accordance with the terms of the Co-Investment Order, must be approved by an investment committee of the SDLP consisting of representatives of ours and Varagon (with approval from a representative of each required).

Current wording

We have established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. The joint venture is called the Senior Direct Lending Program, LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). In July 2016, we and Varagon and its clients completed the initial funding of the SDLP. We, and other BDCs, registered closed-end management investment companies and other affiliated investment entities managed by our investment adviser or its affiliates, may directly co-invest with the SDLP in accordance with the terms of the Co-Investment Exemptive Order. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP, including co-investment transactions made by the SDLP in accordance with the terms of the Co-Investment Exemptive Order, must be approved by an investment committee of the SDLP consisting of representatives of ours and Varagon (with approval from a representative of each required).

Previous wording

The interest income and capital structuring service fees and other income earned with respect to our investment in the SDLP Certificates for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

The interest income and capital structuring service fees and other income earned with respect to our investment in the SDLP Certificates for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of March 31, 2026 and December 31, 2025, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $2,932 million and $2,844 million, respectively.

Current wording

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of June 30, 2026 and December 31, 2025, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $2,975 million and $2,844 million, respectively.

Previous wording

Selected financial information of the SDLP, in conformity with GAAP, as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025 is presented below:

Current wording

Selected financial information of the SDLP, in conformity with GAAP, as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 is presented below:

Previous wording

Operating results for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Operating results for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

Interest income from investments for the three months ended March 31, 2026 increased from the comparable period in 2025 primarily due to the increase in the average size of our portfolio, which was partially offset by lower yields. The average size and weighted average yield of our portfolio at amortized cost for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Interest income from investments for the three and six months ended June 30, 2026 increased from the comparable periods in 2025 primarily due to the increase in the average size of our portfolio, which was partially offset by lower yields. The average size and weighted average yield of our portfolio at amortized cost for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

Capital structuring service fees for the three months ended March 31, 2026 decreased from the comparable period in 2025 primarily due to a decrease in new investment commitments. The new investment commitments and weighted average capital structuring service fee percentages for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Capital structuring service fees for the three months ended June 30, 2026 increased from the comparable period in 2025 primarily due to an increase in the weighted average capital structuring fee percentage. This increase was partially offset by a decrease in new investment commitments. The new investment commitments and weighted average capital structuring service fee percentages for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

Dividend income for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Dividend income for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

(1)Dividend income received from IHAM for the three months ended March 31, 2026 includes a non-recurring special dividend of $3 million.

Current wording

(1)Dividend income received from IHAM for the six months ended June 30, 2026 includes a non-recurring special dividend of $3 million.

Previous wording

Recurring dividend income for the three months ended March 31, 2026 decreased from the comparable period in 2025 primarily due to a decrease in yielding preferred equity investments.

Current wording

Recurring dividend income for the three and six months ended June 30, 2026 decreased from the comparable periods in 2025 primarily due to a decrease in yielding preferred equity investments.

Previous wording

Interest and credit facility fees for the three months ended March 31, 2026 and 2025 were comprised of the following:

Current wording

Interest and credit facility fees for the three and six months ended June 30, 2026 and 2025 were comprised of the following:

Previous wording

Stated interest expense for the three months ended March 31, 2026 increased from the comparable period in 2025 primarily due to the increase in the average principal amount of our outstanding debt. Average outstanding debt and weighted average stated interest rate on our outstanding debt for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Stated interest expense for the three and six months ended June 30, 2026 increased from the comparable periods in 2025 primarily due to the increase in the average principal amount of our outstanding debt. Average outstanding debt and weighted average stated interest rate on our outstanding debt for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

(1)The weighted average stated interest rate on our outstanding debt includes the impact of interest rate swaps. See Note 6 to our consolidated financial statements for the three months ended March 31, 2026 for more information on the interest rate swaps.

Current wording

(1)The weighted average stated interest rate on our outstanding debt includes the impact of interest rate swaps. See Note 6 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on the interest rate swaps.

Previous wording

The base management fee for the three months ended March 31, 2026 increased from the comparable period in 2025 primarily due to the increase in the average size of our portfolio.

Current wording

The base management fee for the three and six months ended June 30, 2026 increased from the comparable periods in 2025 primarily due to the increase in the average size of our portfolio.

Previous wording

The income based fee for the three months ended March 31, 2026 decreased from the comparable period in 2025 primarily due to the pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the three months ended March 31, 2026 being lower than in the comparable period in 2025.

Current wording

The income based fee for the three and six months ended June 30, 2026 decreased from the comparable periods in 2025 primarily due to the pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the three and six months ended June 30, 2026 being lower than in the comparable periods in 2025.

Previous wording

For the three months ended March 31, 2026 and 2025, the reduction in the capital gains incentive fee accrued in accordance with GAAP was $61 million and $25 million, respectively. The capital gains incentive fee accrual for the three months ended March 31, 2026 changed from the comparable period in 2025 primarily due to net losses on investments, foreign currency and other transactions of $306 million compared to net losses of $124 million for the comparable period in 2025. The capital gains incentive fee accrued under GAAP includes an accrual related to unrealized capital appreciation, whereas the capital gains incentive fee actually payable under our investment advisory and management agreement does not. There can be no assurance that such unrealized capital appreciation will be realized in the future. The accrual for any capital gains incentive fee under 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. As of March 31, 2026, there was $20 million of capital gains incentive fee accrued in accordance with GAAP. As of March 31, 2026, there was no capital gains incentive fee actually payable under our investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three months ended March 31, 2026 for more information on the base management fee, income based fee and capital gains incentive fee.

Current wording

For the three months ended June 30, 2026, the reduction in the capital gains incentive fee accrued in accordance with GAAP was $21 million. For the three months ended June 30, 2025, the capital gains incentive fee calculated in accordance with GAAP was $4 million. For the six months ended June 30, 2026 and 2025, the reduction in the capital gains incentive fee accrued in accordance with GAAP was $82 million and $21 million, respectively. The capital gains incentive fee accrual for the six months ended June 30, 2026 changed from the comparable period in 2025 primarily due to net losses on investments, foreign currency and other transactions of $494 million compared to net losses of $105 million for the comparable period in 2025. The capital gains incentive fee accrued under GAAP includes an accrual related to unrealized capital appreciation, whereas the capital gains incentive fee actually payable under our investment advisory and management agreement does not. There can be no assurance that such unrealized capital appreciation will be realized in the future. The accrual for any capital gains incentive fee under 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. As of June 30, 2026, there was no capital gains incentive fee accrued in accordance with GAAP or capital gains incentive fee actually payable under our investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on the base management fee, income based fee and capital gains incentive fee.

Previous wording

Cash payment of any income based fee and capital gains incentive fee otherwise earned by our investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the sum of (a) the aggregate distributions to our stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee payable during the period) is less than 7.0% of our net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fee and capital gains incentive fee deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three months ended March 31, 2026 for more information on the related deferral terms.

Current wording

Cash payment of any income based fee and capital gains incentive fee otherwise earned by our investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the sum of (a) the aggregate distributions to our stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee payable during the period) is less than 7.0% of our net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fee and capital gains incentive fee deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement. Pursuant to these terms, payment of the $84 million income based fee earned by our investment adviser for the second quarter of 2026 has been deferred. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on the related deferral terms.

Previous wording

Administrative and other fees represent fees paid to Ares Operations and our investment adviser for our allocable portion of overhead and other expenses incurred by Ares Operations and our investment adviser in performing their obligations under the administration agreement and the investment advisory and management agreement, respectively, including our allocable portion of the compensation, rent and other expenses of certain of our officers and their respective staffs. See Note 3 to our consolidated financial statements for the three months ended March 31, 2026, for more information on the administrative and other fees.

Current wording

Administrative and other fees represent fees paid to Ares Operations and our investment adviser for our allocable portion of overhead and other expenses incurred by Ares Operations and our investment adviser in performing their obligations under the administration agreement and the investment advisory and management agreement, respectively, including our allocable portion of the compensation, rent and other expenses of certain of our officers and their respective staffs. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2026 for more information on the administrative and other fees.

Previous wording

Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three months ended March 31, 2026 and 2025, we recorded a net expense of approximately $7 million and $7 million, respectively, for U.S. federal excise taxes.

Current wording

Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three and six months ended June 30, 2026, we recorded a net expense of $7 million and approximately $14 million, respectively, for U.S. federal excise taxes. For the three and six months ended June 30, 2025, we recorded a net expense of $7 million and $14 million, respectively, for U.S. federal excise taxes.

Previous wording

Certain of our consolidated subsidiaries are subject to U.S. federal and state income taxes. For the three months ended March 31, 2026 and 2025, we recorded a net tax expense (benefit) of approximately $(1) million and $0 million, respectively, for such subsidiaries. The income tax expense for our taxable consolidated subsidiaries will vary depending on the level of realized gains from the exits of investments held by such taxable subsidiaries during the respective periods.

Current wording

Certain of our consolidated subsidiaries are subject to U.S. federal and state income taxes. For the three and six months ended June 30, 2026, we recorded a net tax expense (benefit) of approximately $1 million and $0 million, respectively, for such subsidiaries. For the three and six months ended June 30, 2025, we recorded a net tax expense of $46 million and $46 million, respectively, for these subsidiaries. The income tax expense for our taxable consolidated subsidiaries will vary depending on the level of realized gains from the exits of investments held by such taxable subsidiaries during the respective periods.

Previous wording

The net realized gains (losses) from the sales, repayments or exits of investments during the three months ended March 31, 2026 and 2025 were comprised of the following:

Current wording

The net realized gains (losses) from the sales, repayments or exits of investments during the three and six months ended June 30, 2026 and 2025 were comprised of the following: