• Senior Secured Loans: Providing financing to middle-market companies, primarily backed by collateral and holding high repayment priority, including both first and second lien loans.
• Junior Secured Loans: Offering financing to middle-market companies, secured by collateral but with lower repayment priority than senior secured loans.
• Unsecured Debt: Investing in debt instruments issued by middle-market companies that are not backed by specific collateral.
• Preferred Equity Investments: Providing capital to middle-market companies through hybrid securities that possess characteristics of both debt and equity.
• Common Equity Investments: Acquiring minority ownership stakes in middle-market companies, often in conjunction with debt financing.
• Broadly Syndicated Loans: Investing in larger loans typically arranged by a group of financial institutions and distributed to a broader investor base.

Palmer Square Capital BDC (PSBD) operates as a Business Development Company (BDC). Its primary business involves providing debt and equity financing to privately-held U.S. middle-market companies.

Therefore, its "customers" are the companies it lends to or invests in. These are not consumers or individuals. As per its investment objective and strategy, PSBD primarily invests in:

• Privately-held U.S. middle-market companies: These are companies that typically have revenues between $50 million and $1 billion and require capital for growth, acquisitions, or recapitalizations. PSBD provides various forms of debt financing (e.g., senior secured loans, unitranche loans) and, to a lesser extent, equity investments to these companies.

Due to the nature of its business and investment strategy:

• PSBD's investment portfolio consists of a diversified group of private companies. Therefore, it does not have individual "major customers" that are publicly traded companies with identifiable stock symbols.
• The company does not sell products or services to individuals, so there are no categories of individual customers to describe.

Consequently, it is not possible to list specific names of public "major customer companies" or categories of individual customers as typically requested for companies that sell goods or services, because PSBD's business model is to provide capital to private entities rather than sell products/services to public companies or individuals.

• Palmer Square Capital Management LLC
• JP Morgan Chase & Co. (JPM)
• State Street Corporation (STT)
• Computershare Limited (ASX: CPU)
• PricewaterhouseCoopers LLP

Christopher D. Long Chairman & CEO

Mr. Long was appointed Chairman and Chief Executive Officer of Palmer Square Capital BDC in 2019, also serving on its Board since November 2019. He has been the Chief Executive Officer of Palmer Square Capital Management (PSCM), the company's investment advisor, since 2009, where he built an experienced investment team and an integrated credit investment platform. His prior experience includes investment roles at Prairie Capital and Sandell Asset Management, and he worked at Morgan Stanley in the Credit Derivatives and Distressed Securities Group. Before Morgan Stanley, he was with TH Lee Putnam Ventures, a private equity fund, where he served on the Board of Directors of Avero, Inc. and was a Board Observer for Parago, Inc. He began his career at JPMorgan & Co. in Leveraged Finance and Mergers & Acquisitions, advising corporations and private equity firms.

Jeffrey D. Fox Chief Financial Officer & Director

Mr. Fox was appointed Chief Financial Officer of Palmer Square Capital BDC in 2019 and has served on its Board since November 2019. He has also been the Chief Financial Officer of the Investment Advisor since 2019 and President of PSCM since March 2020. Prior to joining PSCM in April 2013, Mr. Fox was a Managing Director within Fixed Income at Sandler O'Neill and Partners, where he was involved in the structuring and sales of various products, including Collateralized Loan Obligations.

Angie K. Long Chief Investment Officer

Ms. Long was appointed Chief Investment Officer of Palmer Square Capital BDC in 2019, also serving as Chief Investment Officer of PSCM. She is responsible for all investment-related activities at PSCM. Before joining PSCM in 2011, Ms. Long spent 13 years at JPMorgan Chase & Co. in New York, holding senior roles such as Deputy Head of North American Credit Trading, Head of High Yield Trading, and Head of Credit Derivatives Trading.

Matthew L. Bloomfield President

Mr. Bloomfield was appointed President of Palmer Square Capital BDC in 2022. He serves as the Portfolio Manager for PSCM's US CLO management platform and holds key responsibilities for all of PSCM's leveraged loan product offerings and risk management. He is a member of the US and European CLO investment committees, as well as the Company's Investment Committee. Before joining PSCM in 2015, Mr. Bloomfield was an Associate Portfolio Manager within the Broadly Syndicated Loan Group at Golub Capital, focusing on investing in leveraged loans via CLOs and separately managed accounts.

Scott A. Betz Chief Compliance Officer

Mr. Betz was appointed Chief Compliance Officer of Palmer Square Capital BDC in 2019. He also serves as Chief Operating Officer of PSCM and previously held the role of Chief Compliance Officer of PSCM from March 2018 to March 2021. Before joining PSCM in March 2018, Mr. Betz worked for over 14 years at Scout Investments, most recently as Chief Operating Officer, Chief Compliance Officer, and Treasurer. Earlier in his career, he worked at UMB Bank for over six years as a Performance Measurement Specialist and later as Investment Technology Officer.

The key risks to Palmer Square Capital BDC (PSBD) primarily revolve around its financial structure, operational performance, and market position as a relatively new public entity:

1. High Leverage and Economic Sensitivity: Palmer Square Capital BDC operates with a high leverage ratio, reported at 1.50x and 1.54x, which is notably above that of its peers. This elevated leverage limits the company's financial flexibility, particularly in a volatile economic climate. As a Business Development Company (BDC), PSBD lends to private companies, which can be more susceptible to financial distress, especially during economic downturns or recessions. This exposure increases the risk of loan defaults within its portfolio, directly impacting the BDC's performance and stability. The company's significant exposure to floating-rate debt also makes it sensitive to changes in interest rates, which can compress spreads and affect profitability, as evidenced by a recent dividend cut.
2. Persistent Net Asset Value (NAV) Declines and Earnings Challenges: PSBD has experienced consistent declines in its Net Asset Value per share. This is partly attributed to the company's struggle to originate new investments at a pace that outstrips loan repayments and sales, leading to a net decrease in its investment portfolio. A declining NAV is a critical indicator of underlying issues within a BDC's portfolio, often leading to a reduction in the share price. Furthermore, the company has reported weak earnings, missing analyst estimates, and has reduced its dividend, raising concerns about the long-term sustainability of its payouts. The management's capital allocation strategy, which has favored supplemental distributions over reinvestment, may also hinder future earnings growth and the recovery of NAV.
3. Limited Operating History as a Public Company: Palmer Square Capital BDC is a relatively new entrant to the public market, having completed its IPO in January 2024. A short track record as a public company can be a significant risk factor, as it means there is limited historical data to assess the company's resilience across various economic cycles and market conditions. This limited operating history can make it more challenging for investors to fully evaluate the company's long-term performance potential and its ability to navigate unforeseen challenges effectively.

Palmer Square Capital BDC (symbol: PSBD) operates within the private credit market, providing customized financing solutions to U.S. middle-market companies, including first-lien and second-lien senior secured loans, unitranche financings, mezzanine debt, and equity co-investments.

The addressable market for Palmer Square Capital BDC's main products and services primarily falls within the U.S. private credit and direct lending markets.

• The U.S. private credit market is estimated to be approximately $1.3 trillion as of the 2026 outlook. This market expanded from $500 billion over the last five years and is expected to continue growing.
• Within the private credit market, direct lending is a dominant strategy. The U.S. direct lending market alone reached $1 trillion in early 2025, having more than doubled since 2019. The North American direct lending market is estimated to be around $1.5 trillion today and is projected to approach $2 trillion by the end of the decade.
• More broadly, an analysis by McKinsey & Company suggests that the potential addressable market for private credit in the U.S. could exceed $30 trillion.

Here are 3-5 expected drivers of future revenue growth for Palmer Square Capital BDC (PSBD) over the next 2-3 years:

1. Continued Deployment of Capital into Corporate Debt Loans and Other Debt Securities: As a Business Development Company (BDC), Palmer Square Capital BDC's core business involves originating and investing in corporate debt loans, including broadly-syndicated loans and large-cap direct lending, as well as other debt securities like collateralized loan obligation (CLO) debt and equity. The consistent deployment of capital into new investments, such as the $91.4 million deployed in Q4 2025, directly generates contractual interest income and select fee income, which are primary components of its revenue.
2. Benefit from Floating-Rate Loan Portfolio in a Favorable Interest Rate Environment: Palmer Square Capital BDC primarily focuses on high-quality, floating-rate senior loans. This investment strategy positions the company to benefit from rising interest rates, as the interest income generated from its floating-rate portfolio would increase, thereby enhancing its overall revenue.
3. Access to Proprietary Deal Flow and Strong Underwriting: The BDC leverages the direct sourcing network and established industry relationships of Palmer Square Capital Management. This allows PSBD to access proprietary deal flow and unique private credit opportunities, which can offer enhanced yield potential compared to more widely syndicated loans, while maintaining conservative underwriting standards. This capability to secure attractive investments can lead to higher interest income and improved revenue growth.
4. Strategic Focus on Non-Cyclical, Upper-Middle Market Sectors: Palmer Square Capital BDC targets upper-middle-market borrowers primarily in non-cyclical sectors such as technology, healthcare, and business services. This focused investment approach in resilient industries helps maintain portfolio quality and consistent income generation, supporting stable and sustainable revenue growth by mitigating risks associated with more cyclical sectors.

Share Repurchases

• Palmer Square Capital BDC Inc. had a share repurchase program authorized for up to $20 million as of December 31, 2023.
• An additional $5 million open market share repurchase authorization was approved during the fourth quarter of 2025, which the company intends to judiciously deploy.
• The company spent $7.6 million on share buybacks in the fourth quarter of 2025, representing a 60.6% increase from the prior quarter.

Share Issuance

• On January 17, 2024, Palmer Square Capital BDC Inc. priced its initial public offering of 5,450,000 shares of common stock at $16.45 per share, generating anticipated gross proceeds of approximately $89.7 million.
• The company's shares began trading on the New York Stock Exchange on January 18, 2024.
• Underwriters were granted an option to purchase up to an additional 817,500 shares to cover over-allotments.

Inbound Investments

• During the initial public offering, officers, employees, business associates, and institutional investors indicated interest in purchasing up to $2 million and $38 million in shares, respectively.
• Hedge funds and other institutional investors collectively own 6.52% of the company's stock.
• As of Q4 2025, 69 institutions held shares of Palmer Square Capital BDC, with a combined market value of approximately $19.97 million.

Outbound Investments

• As a business development company (BDC), Palmer Square Capital BDC primarily invests by lending to and investing in corporate debt securities of private U.S. companies, including broadly-syndicated loans and large-cap direct lending.
• As of December 31, 2025, the company's investment portfolio consisted of 264 investments in 205 portfolio companies, with an aggregate fair value of approximately $1.2 billion.
• In the fourth quarter of 2025, new investments totaling $91.4 million were funded across 24 investments, with an average value of approximately $3.4 million per investment.

Capital Expenditures

• Palmer Square Capital BDC Inc.'s last 12-month Capital Expenditure was $2.0.
• As a financial services company focused on debt investments, the company's capital expenditures are generally low.