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• Apollo Global Management for mid-sized company loans.
• KKR for private business debt.
• Ares Management for loans to private mid-sized companies.

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• Senior Secured Loans: These are debt facilities secured by a first priority lien on the assets of privately held, middle-market companies.
• Unitranche Loans: These are single debt instruments combining characteristics of both senior and subordinated debt, typically provided to middle-market businesses.
• Junior Debt: This includes second lien and subordinated debt instruments that hold a junior position in the borrower's capital structure relative to senior debt.
• Equity Co-Investments: These are minority equity investments, often made in conjunction with debt financing, in the companies within their portfolio.

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Kayne Anderson BDC (KBDC) is a Business Development Company (BDC). BDCs primarily provide debt and equity financing to middle-market companies. Therefore, its "major customers" are the companies in which it invests and to which it lends money (its portfolio companies).

Based on their nature and typical operations, KBDC sells primarily to other companies, specifically private middle-market companies. These portfolio companies are generally not publicly traded.

As of recent disclosures (e.g., Q1 2024 earnings report or latest investor presentation), KBDC has a diversified portfolio across various industries. It does not typically disclose "major customers" in the traditional sense, but rather its largest portfolio investments. Due to the private nature of these portfolio companies, specific company names are often not highlighted as "major customers" in the same way a consumer-facing business would, and they do not have public stock symbols.

Instead of listing specific customer companies (which are generally private and numerous for a BDC), it's more accurate to describe the types of companies it invests in. KBDC focuses on providing senior secured loans to private middle-market companies across a variety of sectors, aiming for diversified exposure rather than reliance on a few large "customers."

Therefore, KBDC's "customers" are best described as the broad category of private, middle-market companies seeking capital for growth, acquisitions, or recapitalizations, rather than a few identifiable major corporations.

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• Kayne Anderson Senior Credit Advisers, LLC
• Kayne Anderson BDC Operations, LLC
• U.S. Bancorp (USB)
• PricewaterhouseCoopers LLP

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Douglas L. Goodwillie Co-Chief Executive Officer

Mr. Goodwillie serves as co-chief executive officer of Kayne Anderson BDC. He is also a managing partner and co-head of Kayne Anderson's private credit group, bringing over 20 years of experience in middle market lending. Before joining Kayne Anderson in 2011, Mr. Goodwillie was a director at LBC Credit Partners, a middle market private debt fund. He also served as an operating director at Arsenal Capital Partners, a private equity firm, where he led capital markets efforts. Mr. Goodwillie spent seven years at Dymas Capital Management, a middle market finance company, responsible for originating, underwriting, and managing senior and junior middle market loans. His career began at Gleacher Partners, focusing on leveraged lending and mergers and acquisition advisory.

Kenneth B. Leonard Co-Chief Executive Officer

Mr. Leonard serves as co-chief executive officer of Kayne Anderson BDC. He is also a managing partner and co-head of Kayne Anderson's private credit group. Prior to joining Kayne Anderson in 2011, Mr. Leonard co-founded Dymas Capital Management with Cerberus Capital Management, L.P., where he helped develop a middle market, private equity-focused lending business. While at Dymas, he played a leadership role in over 130 transactions with commitments exceeding $4.5 billion. Before Cerberus, he was a senior vice president at GE Capital in the merchant banking syndications team. Earlier in his career, he led the corporate finance syndications team at Heller Financial and was an investment professional in the turnaround private equity group of Heller Investments, Inc., and held various lending positions at Heller Financial.

Terry A. Hart Chief Financial Officer and Treasurer

Mr. Hart serves as the chief financial officer and treasurer for Kayne Anderson BDC and is a managing director in Kayne Anderson's private credit group. He oversees accounting, financial reporting, tax, and treasury functions. Before joining Kayne Anderson in 2005, Mr. Hart was a senior vice president and controller at Dynegy, Inc., and previously served as assistant treasurer and director of structured finance. He began his finance and accounting career in 1992 with Illinova Corporation, which was later acquired by Dynegy, Inc.

Frank P. Karl Senior Vice President

Mr. Karl serves as a senior vice president of Kayne Anderson BDC and is a managing director of investments of middle market direct lending at Kayne Anderson. He joined Kayne Anderson in 2013. Prior to this, Mr. Karl spent two years as an analyst with Houlihan Lokey's financial restructuring group, where he focused on advising debtors and creditors on restructuring transactions, both in- and out-of-bankruptcy.

Michael J. O'Neil Secretary and Chief Compliance Officer

Mr. O'Neil serves as the chief compliance officer and secretary of Kayne Anderson BDC. He also holds these roles for other Kayne Anderson entities, including Kayne Anderson Energy Infrastructure Fund, Inc. Prior to joining Kayne Anderson in 2012, Mr. O'Neil was a compliance officer at BlackRock Inc., where he was responsible for regulatory compliance matters related to trading and portfolio management activities across various asset classes.

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The key risks to Kayne Anderson BDC (KBDC) primarily revolve around the nature of its investments in private middle-market companies and the prevailing economic environment.

1. Credit Risk and Borrower Stress: A significant risk for KBDC is the potential for increased default rates and non-accruals within its investment portfolio. Higher default rates can lead to a write-down of asset values. While KBDC's non-accrual rates have been relatively low, a rising trend in Payment-in-Kind (PIK) interest income signals that some borrowers may be experiencing stress due to increased interest expenses. This indicates potential future credit quality issues, despite current low non-accruals. The inability of portfolio companies to repay or refinance their outstanding loans at or prior to maturity also contributes to this risk.

2. Interest Rate Risk: Changes in interest rates can significantly impact KBDC's profitability. As a business development company, KBDC generates most of its revenue from interest income on variable-rate debt investments. Therefore, while higher interest rates can initially increase interest income, they also increase the cost of borrowing for KBDC's portfolio companies, potentially leading to borrower stress and higher non-accruals. Conversely, a significant decline in interest rates would reduce the interest income KBDC collects from its borrowers, thereby lowering its net investment income.

3. Liquidity Risk: KBDC must maintain sufficient liquidity to fund its operations, meet capital commitments, and make distributions to shareholders. Its ability to pay distributions could be adversely affected by various factors. If a large number of stockholders opt for cash distributions over its dividend reinvestment plan, KBDC might be compelled to sell some of its illiquid investments, potentially at unfavorable prices, to generate cash. Moreover, a general tightening of credit markets or economic downturns could constrain KBDC's access to additional financing, further impacting its liquidity.

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The addressable market for Kayne Anderson BDC's (KBDC) main products and services is the U.S. private credit market, which primarily involves direct lending to middle-market companies. KBDC focuses on investing in first lien senior secured loans, and secondarily in unitranche and split-lien loans, to privately held middle-market companies predominantly located in the United States.

The U.S. private credit market was estimated to be approximately $1.1 trillion in 2024. This market is projected to experience significant growth, with forecasts indicating it could reach $2.8 trillion by 2028.

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Here are 3-5 expected drivers of future revenue growth for Kayne Anderson BDC (KBDC) over the next 2-3 years:

1. Growth in Investment Portfolio: Kayne Anderson BDC has demonstrated strong origination capabilities, with significant increases in new commitments and funded investments in middle-market companies. The company expects continued portfolio growth, aiming to achieve its target leverage range in the near future. Management commentary indicates an intention to leverage the capital structure to between 1.10x and 1.20x debt-to-equity, which is expected to fuel incremental portfolio growth and, consequently, Net Investment Income (NII) per share.
2. Optimization of Capital Structure (Increased Leverage): KBDC has maintained a conservative debt-to-equity ratio, which provides substantial capacity to increase leverage to fund new investments. By increasing borrowings under credit facilities and issuing senior unsecured notes, KBDC can expand its investment base and generate more interest income. The company's target leverage range is 1.0x to 1.25x.
3. Focus on Higher-Yielding Middle Market Loans: KBDC has been actively rotating out of lower-yielding broadly syndicated loans into higher-yielding middle-market loans. This strategic shift directly contributes to an increase in total investment income as the weighted average spread over SOFR for new private middle-market investments remains attractive, typically in the range of 500 to 600 basis points.
4. Favorable Interest Rate Environment for Floating-Rate Loans: As a business development company, KBDC primarily invests in first-lien senior secured loans, which typically have floating interest rates. While there have been discussions of potential spread compression and future interest rate cuts, the current weighted average spread over SOFR for KBDC's private middle-market investments is approximately 609 basis points, suggesting continued strong income generation from its existing and new floating-rate debt investments.

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Share Repurchases

• In May 2025, the Board authorized an amendment to the Company's share repurchase plan, extending its expiration date to May 24, 2026.
• Under the amended plan, Kayne Anderson BDC may repurchase up to $100 million of outstanding common stock in the open market at a price per share below its net asset value.
• Share repurchases contributed an accretion of $0.01 to net asset value per share in the second quarter of 2025.

Share Issuance

• Kayne Anderson BDC commenced operations on February 5, 2021, through a private offering, and subsequently went public with an IPO.
• The company raised an additional $100 million of equity through its NYSE listing, which occurred subsequent to the first quarter of 2024.
• In September 2025, KBDC announced the closing of a private placement offering of $200 million of senior unsecured notes to refinance existing debt and for general corporate purposes.

Inbound Investments

• Kayne Anderson BDC was initially formed as a private offering, which implies initial capital raised from investors prior to its public listing.
• The company's IPO in the spring of 2024 (subsequent to Q1 2024) brought in $100 million in equity capital.

Outbound Investments

• KBDC's investment strategy focuses on generating current income and capital appreciation by investing primarily in first lien senior secured loans to middle-market companies.
• In the first quarter of 2025, KBDC made total commitments of $340 million across 16 different businesses, with $264 million funded. This represented a 113% increase compared to the $160 million in commitments made in the first quarter of 2024.
• As of June 30, 2025, the total fair value of investments was approximately $2.2 billion, spread across 114 companies, with 99% consisting of senior secured first lien debt. A notable strategic investment was made in SG Credit Partners on July 15, 2025, including an $80 million term loan, a $34 million delayed draw term loan, and a $12 million equity investment, resulting in KBDC owning 22.5% of SG Credit's equity.