Blackstone for private middle-market company loans.

JPMorgan Chase for private middle-market business loans.

• Senior Secured Debt: Barings BDC provides capital through senior secured loans, first lien debt, and other senior secured private debt investments, typically collateralized with the highest repayment priority.
• Unitranche Debt: Barings BDC offers unitranche debt, which combines senior and junior debt into a single, often covenant-light, loan facility.
• Second Lien Debt: Barings BDC invests in second lien debt, which is secured by collateral but has a junior claim to first lien debt.
• Subordinated Debt: Barings BDC provides subordinated debt, an unsecured loan that ranks below other debt types in terms of repayment priority during liquidation.
• Equity Co-investments: Barings BDC makes equity co-investments, taking direct ownership stakes in private middle-market companies, often alongside private equity sponsors.

Barings BDC (BBDC) provides financing, including loans and equity co-investments, to private middle-market companies. As such, its major customers are these private companies that receive capital from BBDC. Specific names of these customer companies are not provided in the general company description, as they are typically private entities.

Based on the description, these customer companies generally exhibit the following characteristics:

• They are private middle-market companies.
• They typically have EBITDA ranging from $10 million to $75 million.
• They are often backed by private equity sponsors.
• They operate across various industries, including manufacturing and distribution; business services and technology; transportation and logistics; and consumer products and services.

Thomas Q. McDonnell, Chief Executive Officer

Thomas Q. McDonnell became Chief Executive Officer of Barings BDC effective January 1, 2026. He brings over 30 years of experience in global finance and previously spent nearly two decades at Barings, where he was a Managing Director and a member of various credit investment committees, managing global loan portfolios and helping raise over $15 billion in funding. His career also includes positions at Patriarch Partners, Bank of America, and JP Morgan Chase, with a focus on credit risk management and portfolio strategy. While his background doesn't explicitly state he founded companies, his extensive experience in managing global loan portfolios and strategic roles at major financial institutions indicates significant management responsibilities. His involvement in credit risk management and portfolio strategy, particularly within a BDC that invests in private equity sponsor-backed companies, suggests a pattern of managing companies that are frequently backed by private equity firms.

Elizabeth Murray, Chief Financial Officer and Chief Operating Officer

Elizabeth Murray serves as the Chief Financial Officer and Chief Operating Officer of Barings BDC, Inc. She also holds these dual roles for Barings Capital Investment Corporation and Barings Private Credit Corporation. Additionally, she is a board member for Rocade LLC, a specialty finance company. Before these roles, Ms. Murray was the Chief Accounting Officer for these companies and served as the Vice President of Financial Reporting at Triangle Capital Corporation prior to its externalization of investment management to Barings LLC. Her prior involvement with Triangle Capital Corporation, a predecessor to Barings BDC that underwent a significant change in management, demonstrates experience with companies involved in such transitions. Her continuous roles within BDCs suggest a pattern of involvement with companies that often engage with private equity.

Eric Lloyd, Executive Chairman of the Board

Eric Lloyd is the Executive Chairman of the Board of Barings BDC, Inc. Prior to January 1, 2026, he served as the Chief Executive Officer of the company. He is also the President of Barings LLC, the investment adviser. With over 30 years of experience, his background spans investment management, investment banking, leveraged finance, and risk management. Before joining Barings in 2013, he was the Head of Market and Institutional Risk for Wells Fargo, where he was also on Wells Fargo's Management Committee and a member of the Board of Directors of Wells Fargo Securities. Previously, before the acquisition of Wachovia, he held various leadership positions in Wachovia's Global Markets Investment Banking division, including Head of Wachovia's Global Leveraged Finance Group. His experience at Wachovia during its acquisition by Wells Fargo indicates involvement with a company that was sold to an acquirer. His extensive background in leveraged finance and investment banking, particularly leading a global leveraged finance group, demonstrates a strong pattern of managing or advising companies backed by private equity firms.

Matthew Freund, President

Matthew Freund serves as the President of Barings BDC, Inc., as well as President of Barings Capital Investment Corporation and Barings Private Credit Corporation. He is a key member of Barings’ Global Private Finance Group and the North America Private Finance Investment Committee. Mr. Freund also serves as a board member for Eclipse Business Credit. Prior to joining Barings in 2015, he worked for US Bank, where he focused on structuring bank loans to support leveraged buyouts for private equity sponsors. His past role specifically structuring loans for leveraged buyouts clearly indicates a pattern of managing companies backed by private equity firms.

Bryan High, Co-Portfolio Manager & Head of Global Private Finance Group

Bryan High is the Head of Barings' Global Private Finance Group and serves as Co-Portfolio Manager of Barings BDC, Inc. He leads a team responsible for originating, underwriting, and managing global private finance investments and is a member of the North America Private Finance and Europe Private Finance Investment Committees. He also holds the titles of Chief Executive Officer for Barings Capital Investment Corporation and Barings Private Credit Corporation. Mr. High joined Barings in 2007 and has extensive experience in public and private credit, distressed debt/special situations, and private equity. Before joining Barings, he was an investment banker at a boutique M&A firm, providing advice on middle-market transactions, and worked in the restructuring advisory group at Bank of America Securities LLC. His background in investment banking and advising on middle-market transactions, along with his current role in global private finance, demonstrates a pattern of involvement with companies often backed by private equity firms.

Key Risks to Barings BDC (BBDC)

1. Credit Risk and Deterioration in Portfolio Company Performance: As a business development company (BDC) specializing in senior secured loans, various forms of debt, and equity co-investments in private middle-market companies, Barings BDC is highly exposed to the credit quality and financial health of its portfolio companies. Many of these investments involve leveraged transactions, such as leveraged buyouts and recapitalizations. A general economic downturn, industry-specific challenges, or a prolonged period of high interest rates could severely impact the ability of these portfolio companies to service their debt, leading to increased defaults, non-accruals, and impairments on BBDC's investments. This risk is amplified by its allocation to subordinated debt and equity investments, which carry higher risk than senior debt.
2. Interest Rate Risk: Fluctuations in interest rates pose a significant risk to Barings BDC. While a substantial portion of BBDC's debt portfolio investments bear interest at variable rates, which may benefit from rising rates, a rapid or sustained increase in benchmark interest rates can materially increase the interest expense for its often highly-leveraged portfolio companies. This can strain their cash flows, hinder their ability to service debt, and increase the likelihood of default, thereby impacting BBDC's asset quality and profitability. Conversely, declining base rates could lead to a reduction in BBDC's net investment income and potentially impact its dividend sustainability.
3. Competition and Sourcing of Attractive Investments: The market for private middle-market debt and equity investments is highly competitive. Barings BDC competes with numerous other BDCs, private debt funds, and financial institutions for investment opportunities. Intense competition can lead to pressure on investment pricing (resulting in lower yields), less favorable investment terms, and a reduction in the availability of attractive new investment opportunities. This competition could adversely affect BBDC's ability to deploy capital effectively, generate target returns, and grow its investment portfolio, ultimately impacting its financial performance.

Share Repurchases

• Barings BDC repurchased over 700,000 shares during 2025, which contributed $0.02 per share to its Net Asset Value (NAV).
• On February 20, 2025, a new 12-month share repurchase program was authorized to buy back up to $30.0 million of outstanding common stock at prices below the then-current NAV per share, commencing March 1, 2025.
• A new $30 million share repurchase plan for 2026 was authorized, commencing March 1, 2026, and valid until March 1, 2027.

Share Issuance

• No significant primary share issuances by Barings BDC have been prominently reported for the 2021-2025 period.

Inbound Investments

• Barings BDC received a one-time $23 million payment in 2025 due to the early termination of the MVC Credit Support Agreement, aimed at simplifying the structure and strengthening the balance sheet.
• The company's portfolio has been diversified and market presence strengthened through accretive mergers, notably with MVC Capital and Sierra Income Corporation.

Outbound Investments

• During the second quarter of 2025, Barings BDC made 19 new investments totaling $137.3 million and additional investments in existing portfolio companies amounting to $61.7 million.
• In the third quarter of 2025, the company made 14 new investments totaling $78.6 million and invested $70.2 million in existing portfolio companies.
• As of December 31, 2025, the fair value of Barings BDC's investment portfolio was $2.40 billion.

Capital Expenditures

• Information on significant capital expenditures for Barings BDC over the last 3-5 years is not available, which is typical for a Business Development Company whose primary activities are financial investments rather than physical asset development.