Here are 1-3 brief analogies to describe Oaktree Specialty Lending (OCSL):

• Think of it as a specialized Wells Fargo for growing mid-sized businesses, offering customized loans beyond typical bank offerings.
• It's like a Blackstone or KKR that primarily lends specialized debt to mid-sized companies instead of taking large ownership stakes.

• First Lien Debt Financing: Senior secured loans that hold the highest priority claim on a company's assets.
• Second Lien Debt Financing: Junior secured loans that are subordinate to first lien debt but senior to unsecured debt.
• Bridge Financing: Short-term loans provided to cover immediate capital needs until longer-term financing can be arranged.
• Mezzanine Debt: Hybrid financing instruments combining characteristics of both debt and equity, typically subordinated.
• Unsecured Loans: Debt facilities not backed by any specific collateral from the borrower.
• Preferred Equity: A class of ownership with a preferential claim on a company's assets and earnings over common stock.
• Equity Co-investments: Minority equity stakes taken alongside debt investments to provide additional upside potential.
• One-Stop Debt Investments: Comprehensive financing packages that combine various debt tranches, such as senior and junior debt, into a single facility.

Oaktree Specialty Lending (OCSL) is a business development company that provides financing and debt investments to other companies. Therefore, its major customers are the small and mid-sized companies to which it lends or invests. The provided background information does not list the specific names of OCSL's individual customer companies.

Based on the company description, OCSL's customers are characterized by the following attributes:

• Small and mid-sized companies seeking various forms of financing, including one-stop, first lien, second lien debt, bridge financing, unsecured and mezzanine loans, and sometimes preferred equity or equity co-investments for purposes such as expansions, sponsor-led acquisitions, and management buyouts.
• Companies with an enterprise value typically between $20 million and $150 million.
• Companies with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) generally between $3 million and $50 million.
• Companies operating across a range of sectors, including but not limited to:
  • Education services
  • Business services
  • Retail and consumer
  • Healthcare
  • Manufacturing
  • Food and restaurants
  • Construction and engineering
  • Media and advertising

Armen Panossian, Chief Executive Officer and Co-Chief Investment Officer

Armen Panossian has served as Chief Executive Officer of Oaktree Specialty Lending Corporation (OCSL) since September 2019 and Co-Chief Investment Officer since November 2024. He previously held the role of Chief Investment Officer from September 2019 to November 2024. Panossian also served as CEO and CIO of Oaktree Strategic Income (OCSI) from 2019 to 2021 and Oaktree Strategic Income II (OSI2) from 2019 to 2023, both of which subsequently merged into OCSL. His extensive background within Oaktree Capital Management, L.P., a global alternative investment manager, includes leadership positions such as Head of Performing Credit and various portfolio manager roles across Global Private Debt and Global Credit. Prior to Oaktree, he worked at Pequot Capital Management, focusing on distressed debt strategy.

Christopher McKown, Chief Financial Officer and Treasurer

Christopher McKown is the Chief Financial Officer and Treasurer of Oaktree Specialty Lending Corporation. He also holds the position of Managing Director at Oaktree, where he is responsible for fund accounting and reporting within Oaktree’s Strategic Credit strategy. Before joining Oaktree in 2011, McKown was a senior manager in the audit practice at KPMG LLP, specializing in clients within the investment management and broker-dealer sectors.

Mathew Pendo, President

Mathew Pendo serves as the President of Oaktree Specialty Lending Corporation and as a Managing Director, Head of Corporate Development and Capital Solutions for Oaktree. He joined Oaktree in 2015. Pendo's previous experience includes serving as the chief investment officer of the Troubled Asset Relief Program (TARP) for the U.S. Department of the Treasury, where he received the Distinguished Service Award in 2013. He spent 18 years at Merrill Lynch, starting in investment banking and rising to managing director of the technology industry group. Subsequently, he was a managing director at Barclays Capital, serving as co-head of U.S. Investment Banking and later co-head of the Global Industrials group. He has also served as a former board member of Ally Financial and SuperValu Inc.

Brett McKeone, Chief Operating Officer

Brett McKeone is the Chief Operating Officer of Oaktree Specialty Lending Corporation and a managing director within Oaktree's Global Private Debt strategy. Before joining Oaktree in 2007, he worked as a senior consultant in the Strategy and Operations practice of Deloitte Consulting LLP. His earlier career included serving as an analyst with Exxon Mobil Corporation.

Raghav Khanna, Co-Chief Investment Officer

Raghav Khanna is a Co-Chief Investment Officer of Oaktree Specialty Lending Corporation and a managing director within Oaktree's Global Private Debt strategy. Prior to his role at Oaktree, Khanna was an investment professional at the Carlyle Group, where he concentrated on buyout opportunities within the financial services sector, indicating experience with private equity-backed ventures. He also served as an analyst at Goldman Sachs.

The key risks to Oaktree Specialty Lending (OCSL) are primarily associated with the nature of its business as a business development company (BDC) specializing in debt financing for middle-market companies. These risks include:

1. Portfolio Company Credit Risk and Non-Accruals: OCSL invests in loans to small and mid-sized companies, which often carry a higher risk of default compared to investment-grade debt. These portfolio companies may be highly leveraged and more susceptible to economic downturns, potentially leading to lower valuations or defaults on their loans. OCSL has faced "severe portfolio performance issues," with concerns about its non-accrual ratio (loans not generating income), which directly impacts its profitability and dividend sustainability.
2. Interest Rate Risk: As a BDC, OCSL borrows money to make investments. Its net investment income is significantly influenced by the spread between its borrowing costs and the interest rates it earns on its investments. While a substantial portion of OCSL's loan portfolio (approximately 90% or more) consists of floating-rate loans, which benefit from rising interest rates, a decline in interest rates could reduce interest income. Conversely, increases in borrowing costs due to rising rates can also negatively impact net investment income. Anticipated federal fund rate cuts in 2026 are considered a direct headwind to OCSL's yield.
3. Economic Downturns and Market Volatility: OCSL's performance is inherently tied to the broader economic environment. During periods of economic uncertainty or downturns, the middle-market companies in which OCSL invests may experience financial distress, leading to reduced revenue, increased defaults, and lower valuations of OCSL's investments. Market volatility can also result in unrealized depreciation in the value of OCSL's investment portfolio.

Oaktree Specialty Lending Corporation (OCSL) primarily operates within the private credit and middle market lending sectors in North America.

The estimated size of these addressable markets is as follows:

• The global private credit market is estimated to be between $1.5 trillion and $2.1 trillion. Approximately three-quarters of this market is within the United States.
• The U.S. private credit market was approaching $1.3 trillion as of October 2025, having expanded from $500 billion to this figure over the preceding five years, with expectations for continued growth in 2026.
• Morgan Stanley estimates the U.S. private credit market at $3 trillion at the beginning of 2025, with projections to reach approximately $5 trillion by 2029.
• Direct lending, a significant component of OCSL's services, is the largest sector within private credit, representing about 46% of the asset class.
• The size of direct lending to U.S. middle-market companies was estimated at $1.0 trillion as of March 31, 2022.
• According to an analysis by McKinsey & Company, the total addressable market for private credit in the U.S. could exceed $30 trillion.
• The U.S. middle market, which OCSL targets, comprises approximately 300,000 midsize businesses that generate $13 trillion in annual revenue.

Drivers of Future Revenue Growth for Oaktree Specialty Lending (OCSL)

Oaktree Specialty Lending (OCSL) is poised for future revenue growth over the next 2-3 years, driven by its strategic capital deployment, focus on portfolio quality, and anticipated market dynamics. The key drivers include:

1. Continued Deployment of Capital into New Investments: OCSL consistently deploys its substantial liquidity into new investment commitments, which directly contributes to its total investment income. For instance, in the first fiscal quarter of 2026, the company originated $316.6 million in new investment commitments and funded $314 million, with a weighted average yield on new debt investments of 8.7%. OCSL reported having approximately $576 million in available liquidity as of December 31, 2025, providing ample capacity for future investment activity.
2. Reduction and Reinvestment of Non-Accrual Loans: A significant focus for OCSL is the proactive management and reduction of non-accrual loans, which are investments not currently generating interest income. By converting these non-earning assets into income-producing investments, the company enhances its overall interest income. At the end of fiscal year 2025, non-accrual loans represented 2.8% of the portfolio at fair value, a reduction of 100 basis points from the prior year, highlighting successful efforts in this area.
3. Leveraging Strategic Joint Ventures: Oaktree Specialty Lending's strategic joint ventures (JVs) are identified as key income-enhancing vehicles. For example, the Kemper JV and Glick JV generated strong annualized returns of 12.4% and 12.5%, respectively, as of the fourth quarter of 2025. Continued optimization and potential expansion of these JVs are expected to contribute positively to the company's revenue.
4. Anticipated Increase in Middle-Market Mergers and Acquisitions (M&A) Activity: Management anticipates an uptick in middle-market M&A, which is expected to generate new deal flow and investment opportunities for OCSL. As a business development company specializing in providing financing solutions to middle-market companies, increased M&A activity directly translates into a larger pipeline for new loans and investments, fueling revenue growth.
5. Strategic Sector Allocation and Focus on Senior Secured Loans: OCSL's investment strategy prioritizes sectors with resilient business models, such as software and healthcare, and emphasizes first-lien secured loans. This disciplined approach, reflected in the increase of first-lien investments to 82% of the portfolio in fiscal 2024 and 83% in Q4 2025, is designed to limit downside risk and ensure stable investment income. By focusing on higher-quality, income-generating assets, OCSL aims to maintain and grow its revenue base.

Share Issuance

• In February 2025, Oaktree Capital I, L.P. purchased $100 million of newly issued common stock from OCSL at net asset value, which increased net assets by approximately 7%.
• The company has issued shares under 'at the market' offerings through equity distribution agreements.
• Strategic consolidations, including the 2021 merger with Oaktree Strategic Income Corporation and a 2022 agreement for Oaktree Strategic Income II, Inc., contributed to scaling the company and diversifying its portfolio.

Inbound Investments

• Oaktree Capital I, L.P. made a significant inbound investment of $100 million by purchasing newly issued OCSL common stock in February 2025.

Outbound Investments

• As of September 30, 2025, OCSL's investment portfolio was valued at approximately $2.8 billion at fair value, diversified across 143 portfolio companies.
• The portfolio is predominantly composed of senior secured debt, representing 86% of investments as of September 30, 2025, reflecting a strategic shift towards higher-quality debt in recent years.
• The company utilizes joint ventures, such as Senior Loan Fund JV I, LLC and OCSI Glick JV LLC, to facilitate larger deals and diversify its portfolio, with these JVs holding $513 million in investments and generating a 12.4% aggregate return on equity in Q4 2025.

Capital Expenditures

• Capital expenditures for Oaktree Specialty Lending have consistently been reported as $0.00 for several years, including up to Q1 2026.