Here are 1-3 brief analogies to describe Carlyle Secured Lending (CGBD):

• It's like the Goldman Sachs for mid-sized private business loans.
• A REIT (Real Estate Investment Trust) for private company loans.
• A high-yield bond fund for private company debt.

• First Lien Senior Secured Loans: These are loans secured by a borrower's assets, holding the highest repayment priority among debt holders.
• Unitranche Loans: These combine elements of senior and junior debt into a single, comprehensive loan facility.

Major Customers of Carlyle Secured Lending (CGBD)

Carlyle Secured Lending (CGBD) is a Business Development Company (BDC) that primarily invests in the debt and, to a lesser extent, equity of private, middle-market companies. Therefore, its "customers" are the companies to which it provides financing.

Based on its most recent financial filings (as of December 31, 2023), CGBD sells primarily to other companies. The following are some of its major portfolio companies (customers) based on the fair value of its investments:

• Acrisure, LLC (Private Company)
• Flexera Software LLC (Private Company)
• Ensemble Health Partners, LLC (Private Company)
• Service Express, LLC (Private Company)
• Everise Holdings (Cayman) LP (Private Company)

As these are primarily private companies, they do not have public stock symbols.

Carlyle Secured Lending (CGBD) primarily relies on the following major suppliers for its operational and administrative functions:

• Carlyle Global Credit Investment Management L.L.C. (an affiliate of The Carlyle Group Inc., symbol: CG)
• State Street Bank and Trust Company (a subsidiary of State Street Corporation, symbol: STT)
• Computershare Trust Company, N.A. (a subsidiary of Computershare Limited, symbol: CPU.AX)

Justin V. Plouffe, Chief Executive Officer, President and Interested Director

Justin Plouffe was appointed CEO and President of Carlyle Secured Lending on March 4, 2024. He is also a Managing Director and the Deputy Chief Investment Officer for Global Credit at Carlyle, where he focuses on investing across Carlyle's credit strategies, capital formation, and managing the overall Global Credit platform. Mr. Plouffe serves as a Trustee and portfolio manager for Carlyle Tactical Private Credit Fund (CTAC), a closed-end investment company structured as an interval fund that invests across Carlyle Global Credit's various platform strategies. Additionally, he is the Chief Executive Officer of TCG Securities, L.L.C., the SEC-registered broker/dealer affiliate of Carlyle. Since joining Carlyle in 2007, he has overseen CLO new issuance, led acquisitions of corporate credit management platforms, served as a portfolio manager for structured credit investments, and developed proprietary portfolio management analytics. Before joining Carlyle, Mr. Plouffe was an attorney at Ropes & Gray LLP. His extensive tenure at Carlyle demonstrates a pattern of managing entities backed by a major private equity firm.

Thomas M. Hennigan, Chief Financial Officer and Interested Director

Thomas Hennigan serves as the Chief Financial Officer and an Interested Director for Carlyle Secured Lending. He is also a Managing Director of Carlyle. In August, Mr. Hennigan purchased 7,285 shares of Carlyle Secured Lending's stock. His role as a Managing Director at Carlyle indicates a pattern of managing companies associated with a private equity firm.

Michael Hadley, Chief Investment Officer, Vice President and Head of Underwriting

Michael Hadley holds the positions of Chief Investment Officer, Vice President, and Head of Underwriting at Carlyle Secured Lending.

Joshua Lefkowitz, Chief Compliance Officer and Secretary

Joshua Lefkowitz serves as the Chief Compliance Officer and Secretary for Carlyle Secured Lending. He is a Managing Director of Carlyle.

Nelson Joseph, Principal Accounting Officer and Treasurer

Nelson Joseph is the Principal Accounting Officer and Treasurer for Carlyle Secured Lending. He is also a Principal of Carlyle.

The key risks to Carlyle Secured Lending (CGBD) are primarily centered around interest rate fluctuations, credit quality of its loan portfolio, and potential impacts on its Net Asset Value (NAV).

1. Interest Rate Risk and Net Interest Margin Compression: Carlyle Secured Lending has a highly rate-sensitive portfolio, with approximately 99.4% of its debt investments being floating-rate as of Q1 2025. While this structure has been beneficial during periods of rising interest rates, it poses a significant threat if base rates (like SOFR) decline rapidly. A sudden and aggressive rate-cutting cycle would reduce the weighted average yield on their debt investments much faster than they could reduce their cost of debt, thereby compressing their net interest margin and Net Investment Income (NII).
2. Deterioration of Credit Quality and Non-Accrual Investments: As a Business Development Company (BDC), CGBD focuses on providing senior secured lending to middle-market companies, whose debt is often rated below investment grade. This exposes the company to higher credit risks. A primary threat is a spike in non-accrual investments (loans where interest payments are significantly past due), which directly cuts into distributable income. While the company's non-accrual rate decreased to 1% at fair value by the end of Q3 2025 from a high of 2.1% by the end of Q2 2025, any future increase in non-accrual investments or overall deterioration in the creditworthiness of its borrowers due to economic uncertainty and market volatility remains a significant concern.
3. Net Asset Value (NAV) Pressure: Carlyle Secured Lending has experienced persistent Net Asset Value (NAV) pressure, with NAV per share declining. This decline can be attributed to factors such as credit spread widening and mark-to-market adjustments on its portfolio. A decreasing NAV directly impacts shareholder returns and can lead to a widening market discount.

The primary clear emerging threat for Carlyle Secured Lending (CGBD) is the accelerating and increasingly sophisticated competition within the private credit market. A significant "wall of capital" from a diverse array of large institutional investors, global asset managers, and other private credit vehicles is flowing into the direct lending space. This influx of capital is driving several detrimental trends:

• Yield Compression: With more lenders competing for deals, borrowers have increased leverage, pushing down interest rates and fees. This directly impacts CGBD's ability to generate attractive risk-adjusted returns on its loans.
• Looser Underwriting Standards and Weaker Covenants: To win deals, lenders are increasingly accepting less restrictive covenants and higher leverage ratios for borrowers. This elevates the credit risk profile of the underlying loan portfolios, potentially leading to higher default rates or lower recovery rates in a downturn.
• Challenges in Sourcing Attractive Deals: The heightened competition makes it more difficult for CGBD to consistently find and originate high-quality loans with favorable terms, especially in the middle-market segment where it primarily operates.

This situation is analogous to the historical examples provided, where an influx of new, highly capitalized, and often more agile competitors (or a shift in market dynamics driven by them) erodes the competitive advantage and profitability of established players. While competition is inherent in any market, the current scale, sophistication, and resulting pressure on pricing and terms represent a clear structural shift and an emerging threat to the traditional private credit business model.

Carlyle Secured Lending (CGBD) primarily operates in the private credit and direct lending markets, focusing on providing financing solutions to middle-market companies. While CGBD invests in various regions, including the United States, Luxembourg, Cayman Islands, Cyprus, and the United Kingdom, its primary focus is on middle-market companies in the United States.

The addressable market sizes for Carlyle Secured Lending's main products and services are significant, particularly in the private credit and direct lending sectors:

• The global private credit market is estimated to be approximately $3.0 trillion by 2025, with projections indicating growth to about $5 trillion by 2029.
• Direct lending, a key component of private credit and a focus for CGBD, constitutes approximately 50% of the private credit assets under management (AUM) in 2025, reaching roughly $1.5 trillion globally.
• In the United States, the private credit market was around $1.25 trillion as of mid-2024, or approximately $1.1 trillion as of April 2024. US-based direct lending funds deployed roughly $500 billion in new loans in 2025.
• Looking at the broader potential, analysis suggests that the addressable market for private credit in the United States alone could exceed $30 trillion.

• Continued Portfolio Growth through New Originations: CGBD has consistently focused on increasing its investment portfolio through new debt originations and net investment activity. For instance, in Q3 2025, the company funded $260 million of investments into new and existing borrowers, resulting in net investment activity of $117 million. Total investments at CGBD increased from $2.3 billion to $2.4 billion during that quarter. Management anticipates an increase in deal volume, supported by normalized funding costs and resilient economic growth. This expansion of the investment base directly contributes to higher interest income, which is a primary component of CGBD's revenue.
• Strategic Mergers and Joint Venture Expansion: The company has actively pursued strategic growth initiatives, such as the merger with CSL III in Q1 2025, which significantly expanded its portfolio from $1.9 billion to $2.5 billion. This merger also aimed to improve stock liquidity and reduce aggregate costs. Additionally, CGBD is in advanced discussions for a potential new joint venture and plans to boost investments in its existing MNCF joint venture, aiming to double its size following a credit facility upsize. These expansions are expected to increase the total fair value of investments and, consequently, revenue-generating assets.
• Optimization of Capital Structure and Lower Financing Costs: CGBD has been actively optimizing its capital structure to enhance financial flexibility and reduce borrowing costs. In Q3 2025, the company issued $300 million of 5.75% unsecured notes maturing in 2031 and announced plans to redeem higher-cost 8.20% 2028 Notes. They also repaid a credit facility and upsized total commitments at their senior secured Credit Facility. By lowering financing costs, the company can improve its net investment income, thereby positively impacting revenue growth.
• Focus on Senior Secured, Floating-Rate Investments in a Diversified Portfolio: Carlyle Secured Lending maintains a defensive portfolio strategy with a focus on senior secured, floating-rate investments, aiming for long-term NAV preservation. The company’s portfolio is highly diversified across numerous industries, with over 90% of investments in senior secured loans. This strategy, emphasizing a conservative approach and disciplined underwriting, is expected to provide stable investment income, especially as deal activity strengthens and market conditions stabilize after an anticipated near-term "earnings trough".

Capital Allocation Decisions for Carlyle Secured Lending (CGBD)

Share Repurchases

• In the first quarter of 2020, Carlyle Secured Lending repurchased 260,254 shares of its common stock at an aggregate cost of $6.3 million.
• During the first quarter of 2021, the company repurchased 287,496 shares of its common stock for $23.6 million, and on March 23, 2021, completed a block repurchase of 250,000 shares for $21.9 million.
• As of June 30, 2021, $4.0 million remained available for repurchase under the company's stock repurchase program.

Share Issuance

• During the year ended December 31, 2024, Carlyle Secured Lending issued 111,321 shares for a total consideration of $2.0 million under its dividend reinvestment plan.
• In connection with the merger with Carlyle Secured Lending III (CSL III) which closed on March 27, 2025, CSL III shareholders received 18,935,108 shares of CGBD common stock.
• Prior to the merger closing, Carlyle Investment Management L.L.C. (CIM) exchanged its CGBD convertible preferred stock for 3,004,808 shares of CGBD common stock at current net asset value (NAV). The December 31, 2024 conversion price for the preferred stock was $8.87 per share.

Inbound Investments

• The merger with Carlyle Secured Lending III, which closed on March 27, 2025, created a combined entity with over $2.8 billion in assets. This strategic transaction consolidated capital and enhanced CGBD's market position.
• Carlyle Investment Management L.L.C. (CIM) incurred $5.0 million in transaction costs on behalf of CGBD, thereby mitigating the expense impact of the merger for Carlyle Secured Lending.

Outbound Investments

• Carlyle Secured Lending's investment objective is to generate current income and capital appreciation primarily through secured debt investments in U.S. middle-market companies.
• As of December 31, 2024, the total fair value of the company's investments was $1.8 billion.
• The total fair value of investments further increased to $2.4 billion as of September 30, 2025.

Capital Expenditures

• Carlyle Secured Lending, as a specialty finance company, reported $0.00 in capital expenditures for the periods of 2020 through 2024, indicating no significant traditional capital expenditures.