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• Like a specialized, publicly traded version of a traditional bank such as Bank of America, focused on lending to mid-sized companies.
• Think of it as a 'REIT for corporate debt', allowing investors to earn dividend income from loans made to businesses.
• Similar to the private credit arm of a large alternative asset manager like Blackstone, but with its shares trading publicly on an exchange.

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• First Lien Senior Secured Loans: Providing loans that hold the highest claim on a borrower's assets and cash flow, typically offering lower risk and yield.
• Unitranche Loans: Offering a blended senior and subordinated debt facility from a single lender, simplifying the capital structure for borrowers.
• Second Lien Senior Secured Loans: Extending loans that are secured by a borrower's assets but rank lower in priority of repayment than first lien debt.
• Subordinated Debt (Mezzanine): Supplying unsecured or less-secured loans that rank below senior debt but above equity, often incorporating equity-like features.
• Equity Co-Investments: Making minority equity investments alongside debt financing to participate in the potential growth of portfolio companies.

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Oaktree Specialty Lending (OCSL) is a Business Development Company (BDC) that primarily provides financing solutions, including debt and equity, to middle-market companies. Therefore, its 'customers' are the companies in which it invests and to which it lends. These are predominantly private, middle-market companies. Based on the fair value of investments as of September 30, 2023 (from OCSL's 10-K filing), its major portfolio companies (customers) include:

• Ortho Clinical Diagnostics Holdings plc (This entity is now part of QuidelOrtho Corporation, symbol: QDPR)
• Veritas Technologies LLC
• Optanix, Inc.

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• Oaktree Capital Management, L.P. (a subsidiary of Brookfield Asset Management; Symbol: BAM)
• The Bank of New York Mellon (Symbol: BK)
• PricewaterhouseCoopers LLP
• Goodwin Procter LLP

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Armen Panossian Chief Executive Officer and Co-Chief Investment Officer

Mr. Panossian is the Chief Executive Officer and Co-Chief Investment Officer of Oaktree Specialty Lending Corporation. He is also Oaktree's Head of Performing Credit, overseeing the firm's liquid and private credit strategies and serving as a portfolio manager within Oaktree's Global Private Debt and Global Credit strategies. Mr. Panossian joined Oaktree's Global Opportunities group in 2007, later leading the development of Oaktree's CLO business in 2014 and becoming head of all performing credit in 2019. Prior to Oaktree, he worked on distressed debt strategy at Pequot Capital Management. He also serves as Co-CEO of Oaktree Capital Management, the external manager of OCSL. He holds a B.A. and M.S. from Stanford University, a J.D. from Harvard Law School, and an M.B.A. from Harvard Business School. Oaktree Capital Management, as a global investment manager specializing in alternative investments and a subsidiary of Brookfield Corp., frequently engages with companies backed by private equity firms through its various credit and debt strategies.

Christopher McKown Chief Financial Officer and Treasurer

Mr. McKown serves as the Chief Financial Officer and Treasurer of Oaktree Specialty Lending Corporation. He is also a Managing Director responsible for fund accounting and reporting for Oaktree's Strategic Credit strategy. Mr. McKown joined Oaktree in 2011. Before his tenure at Oaktree, he was a senior manager in KPMG LLP's audit practice, where his focus was on clients within the investment management and broker-dealer sectors. He earned a B.A. degree in business economics with a minor in accounting cum laude from the University of California, Los Angeles, and is a Certified Public Accountant (inactive). As part of Oaktree, an alternative asset manager providing financing solutions to middle-market companies and working with financial sponsors, his role in fund accounting and reporting for strategic credit initiatives likely involves managing financial aspects of companies backed by private equity firms.

Mathew Pendo President

Mr. Pendo is the President of Oaktree Specialty Lending Corporation. He also holds the position of Managing Director, Head of Corporate Development and Capital Solutions for Oaktree. Mr. Pendo joined Oaktree in 2015. His career began at Merrill Lynch, where he spent 18 years, progressing from investment banking 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 been a board member of Ally Financial and SuperValu Inc..

Raghav Khanna Co-Chief Investment Officer

Mr. Khanna is a Co-Chief Investment Officer of Oaktree Specialty Lending Corporation. He is a managing director within Oaktree's Global Private Debt strategy and a co-portfolio manager for its Strategic Credit platform. Before joining Oaktree, Mr. Khanna was an investment professional at the Carlyle Group, focusing on buyout opportunities in the financial services sector, and an analyst at Goldman Sachs. He received a B.S. degree in electrical engineering and economics from Yale University and an M.B.A. from the Stanford Graduate School of Business.

Ashley Pak Chief Compliance Officer

Ms. Pak serves as the Chief Compliance Officer of Oaktree Specialty Lending Corporation.

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Key Business Risks for Oaktree Specialty Lending (OCSL)

1. Deterioration in Credit Quality and Dividend Sustainability: OCSL's primary risk lies in the credit quality of its investment portfolio, evidenced by high non-accruals, investment losses, and an increased risk of defaults among its borrowers. This has led to concerns about the company's ability to cover its dividend with net investment income, potentially necessitating further dividend cuts. The company has experienced a decline in total interest income and a substantial deterioration in credit quality, with non-accrual ratios ticking up.
2. Economic Uncertainty, Market Volatility, and Interest Rate Fluctuations: The company operates in an environment characterized by economic uncertainty and market volatility. Factors such as inflation, interest rate fluctuations, and geopolitical tensions can significantly impact OCSL's investment portfolio and borrowing costs. While a majority of OCSL's debt investments are floating rate, a higher interest rate environment can shrink borrower margins, as a larger portion of their earnings is allocated towards debt maintenance, potentially leading to increased default risks.
3. Portfolio Concentration: OCSL has a significant exposure to certain sectors, particularly software and services. This concentration makes the company vulnerable to downturns or disruptive changes within these specific industries, such as those that could arise from advancements in AI. A concentrated portfolio can lead to heightened risk if these sectors experience adverse economic or market conditions.

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The main products and services offered by Oaktree Specialty Lending (OCSL) primarily fall under the umbrella of private credit and direct lending to U.S. middle-market companies. These solutions include first and second lien senior secured loans, unsecured and mezzanine loans, and preferred equity investments.

The addressable market for private credit in the U.S. is substantial. As of late 2024, the U.S. private credit market was estimated to be approximately $1.1 trillion to $1.25 trillion. Globally, the private credit market was around $2 trillion in late 2024 and is projected to reach $3.0 trillion by 2025 and an estimated $3.5 trillion by 2028. Direct lending, which is a major component of private credit and a primary focus for OCSL, is projected to represent approximately 50% of global private credit assets under management in 2025, equating to about $1.5 trillion globally. The direct lending market is specifically projected to reach US$1.33 trillion globally by 2029.

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1. Expansion into New Markets and Sectors: OCSL has identified opportunities to expand its lending services into new markets and sectors, particularly those experiencing stress or limited access to capital. By leveraging Oaktree's credit and structuring expertise, the company aims to tap into underserved markets, offering innovative financing solutions which could lead to new income streams and diversification benefits.
2. Capturing Growth in the Alternative and Middle-Market Lending Sector: The complex credit markets show increasing demand for specialized lending solutions, with alternative lending platforms experiencing significant year-over-year growth. The current market contraction in traditional bank lending creates a substantial addressable market for alternative lending platforms like OCSL, indicating ample opportunity for OCSL to expand its customer base and lending volume.
3. Deployment of Available Capital for New Investments: OCSL maintains substantial available capital and liquidity for new investments, signaling its readiness to act on new opportunities. The company's investment activity, including new investment commitments and fundings with healthy weighted average yields on new debt investments, indicates a strategy to grow its portfolio and, consequently, its interest income and related fees.
4. Performance and Expansion of Strategic Joint Ventures: OCSL's strategic joint ventures are noted as income-enhancing vehicles that primarily invest in senior secured loans of middle-market companies. These joint ventures have generated attractive annualized returns on equity, and their continued strong performance and potential expansion can contribute to OCSL's earnings.

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Information regarding significant share repurchases by Oaktree Specialty Lending (OCSL) over the last 3-5 years is not prominently available in the provided search results. A shares buyback ratio as of October 11, 2025, indicated a negative figure, suggesting net issuance rather than repurchases over the calculation period.

• Oaktree Capital I, L.P. purchased $100 million of newly issued common stock from OCSL on February 3, 2025, at $17.63 per share, which represented a 10% premium to the then-market price and resulted in a nearly 7% increase to net asset value (NAV).
• During the quarter ended March 31, 2025, OCSL issued $300 million of unsecured notes maturing on February 27, 2030, with an interest rate of 6.340%.

• On February 3, 2025, Oaktree Capital I, L.P., the external manager, made a strategic inbound investment by purchasing $100 million of newly issued OCSL common stock at $17.63 per share. This investment aimed to grow OCSL's asset base and further diversify its portfolio.

• OCSL's investment portfolio totaled $2.8 billion across 149 companies as of June 30, 2025.
• Significant new investment commitments include $147.2 million in the third fiscal quarter of 2025, $407.0 million in the second fiscal quarter of 2025, and $198.1 million in the first fiscal quarter of 2025.
• The company's investment strategy focuses on senior secured loans, with 83% of the portfolio in senior secured investments (81% first lien) as of June 30, 2025.
• The merger with Oaktree Strategic Income Corporation (OCSI) in October 2020 significantly increased the combined company's assets to over $2 billion invested in 148 portfolio companies.

There is no significant information available regarding Oaktree Specialty Lending's capital expenditures for physical assets over the last 3-5 years, which is typical for a business development company. The company's investments are primarily financial in nature.