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Here are 1-3 brief analogies for Palmer Square Capital BDC (PSBD):

• Blackstone, but specializing in providing loans (private debt) to mid-sized private companies instead of primarily equity investments.
• A publicly traded version of Goldman Sachs' private lending business, focused on providing debt capital to mid-sized private companies.
• JPMorgan Chase's commercial lending services, but exclusively for private, mid-sized businesses.

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• Debt Financing: PSBD provides various types of loans, including senior secured first lien, unitranche, and second lien loans, as well as subordinated debt to middle-market companies.
• Equity Financing: PSBD makes equity and equity-related investments, such as preferred stock and warrants, typically alongside debt investments in middle-market companies.

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Palmer Square Capital BDC (PSBD) is a Business Development Company (BDC) that primarily invests in and lends to middle-market companies. Therefore, its "customers" are the portfolio companies it provides financing to in the form of debt (typically senior secured loans) and sometimes equity.

BDCs generally aim for a diversified portfolio across various industries and companies to mitigate risk. As such, Palmer Square Capital BDC does not have a small number of "major customers" in the traditional sense, where a few entities account for a significant portion of its revenue. Instead, its revenue (primarily interest income and fees) is generated from a broad portfolio of borrowers.

Based on their most recent public filings (e.g., the 10-K filing as of December 31, 2023), the company's portfolio is diversified across numerous private companies. Below are a few examples of larger portfolio companies (by fair value of investment) to which Palmer Square Capital BDC has provided financing. Please note that these are private companies and therefore do not have public stock symbols.

• Careco Technologies, LLC (Senior Secured Loan)
• Siena Lending Group LLC (Senior Secured Loan)
• Medicus Healthcare Holdings (Senior Secured Loan)
• Integra Connect (Senior Secured Loan)
• Veritas Acquisition Corp. (Senior Secured Loan)

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• Palmer Square BDC Adviser LLC
• Palmer Square BDC Administrator LLC
• The Bank of New York Mellon (Symbol: BK)
• KPMG LLP
• Computershare Trust Company, N.A. (Parent company: Computershare Limited, Symbol: CPU)
• Dechert LLP

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Christopher D. Long, Chairman & Chief Executive Officer

Mr. Long was appointed Chairman and Chief Executive Officer of Palmer Square Capital BDC in 2019 and has served on its Board since November 2019. He founded Palmer Square Capital Management in 2009, growing the firm from $5 million to over $25 billion in assets. He serves as Chairman, CEO, and Portfolio Manager for Palmer Square Capital Management. Before founding Palmer Square, Mr. Long had a successful career in finance in New York and earned an MBA from Harvard. His prior roles include Managing Director at Prairie Capital Management LLC, Principal at Sandell Asset Management Corp., Principal at Morgan Stanley Venture Partners, and Principal at J.P. Morgan & Co., Inc. In 2020, he co-founded the Kansas City Current, a women's professional soccer team, with his wife and Brittany Mahomes.

Jeffrey D. Fox, Chief Financial Officer & Director

Mr. Fox was appointed Chief Financial Officer of Palmer Square Capital BDC in 2019 and has been a Board member since November 2019. He has also served as Chief Financial Officer of Palmer Square Capital Management's Investment Advisor since 2019 and as President of Palmer Square Capital Management (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 focused on the structuring and sales of various products, including Collateralized Loan Obligations.

Matthew L. Bloomfield, President

Mr. Bloomfield was appointed President of Palmer Square Capital BDC in 2022. He serves as the Portfolio Manager for Palmer Square Capital Management's US CLO management platform and is responsible for its leveraged loan product offerings and risk management. Before joining Palmer Square Capital Management in 2015, Mr. Bloomfield was an Associate Portfolio Manager in the Broadly Syndicated Loan Group at Golub Capital in Chicago, focusing on investments in leveraged loans through CLOs and separately managed accounts.

Angie K. Long, Chief Investment Officer/Portfolio Manager

Ms. Long is the Chief Investment Officer and one of two Principal Owners for Palmer Square Capital Management, holding key responsibilities for all investment-related activities. Under her leadership, the firm's Assets Under Management (AUM) have grown to over $36.1 billion. She co-founded Palmer Square Capital in 2009 with her husband, Christopher D. Long. In 2020, she also co-founded the Kansas City Current, a women's professional soccer team.

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 Palmer Square Capital Management (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 spent over 14 years at Scout Investments, where his most recent positions included Chief Operating Officer, Chief Compliance Officer, and Treasurer. Earlier in his career, he worked for over six years at UMB Bank.

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The key risks to Palmer Square Capital BDC's (PSBD) business are primarily related to its exposure to interest rate fluctuations, its high leverage, and the inherent credit risk associated with its investment strategy, particularly during economic downturns.

1. Changes in Interest Rates: Palmer Square Capital BDC's portfolio is predominantly composed of variable-rate loans, with approximately 98% of its debt investments having floating rates. While this can be advantageous in a rising interest rate environment, a decline in interest rates could significantly diminish the company's net investment income and overall yield. The company's borrowings are also entirely floating-rate, secured credit facilities, further increasing its sensitivity to interest rate movements. A recent dividend cut was partly attributed to "rate cuts last year".
2. High Leverage: PSBD operates with a high leverage ratio, which has been noted as significantly above its peers (e.g., 1.50x as of April 2025, and 1.38x net of cash as of March 2024). This elevated leverage limits the company's financial flexibility and amplifies risks, particularly in a volatile economic environment, and contributes to Net Asset Value (NAV) volatility.
3. Economic Recessions and Credit Risk: As a business development company (BDC), PSBD invests in corporate debt securities, primarily lending to private, often smaller, companies. These investments are inherently riskier, especially during periods of economic uncertainty or recession, which can lead to increased loan defaults among its portfolio companies. While PSBD focuses on first-lien debt, generally considered safer, its involvement in leveraged loans means credit risk remains a significant concern, particularly given potential "froth in underwriting" in the middle market over recent years.

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• Private Credit Market: The private credit market in the U.S., which encompasses direct lending, is estimated to be approximately $1.25 trillion.
• Direct Lending: As a significant component of the private credit market, direct lending in the U.S. is estimated to be approximately $625 billion (half of the U.S. private credit market).
• Broadly Syndicated Loans (BSLs): The U.S. market for broadly syndicated loans has approximately $1.4 trillion in debt outstanding.

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1. Continued Origination and Deployment of Capital into Corporate Debt: Palmer Square Capital BDC's revenue is primarily generated from interest income on its debt investments. The company consistently deploys capital into new investments, as evidenced by $138.7 million invested across 28 new commitments in Q3 2025 and $104.3 million across 23 new investments in Q1 2025. Continued robust investment activity directly contributes to its revenue growth.
2. Strategic Focus on High-Quality, Predominantly Floating-Rate Senior Secured Loans: The company emphasizes a strategic focus on high-quality assets and disciplined capital deployment. Its portfolio is largely composed of first-lien senior secured debt investments (86.10% of total fair value as of Q3 2025) and 98% floating-rate debt investments. This positioning aims to optimize current income, particularly in a stable interest rate environment, while mitigating credit risk, which is crucial for consistent revenue generation.
3. Expansion into Opportunistic Investments, including Structured and European Credit: Beyond its core broadly syndicated loan and direct lending activities, PSBD maintains a "smaller pocket for opportunistic investments such as structured credit and European credit". Strategic allocation and successful execution in these areas can diversify revenue streams and potentially yield higher returns, contributing to overall revenue growth.
4. Leveraging Synergies Across the Palmer Square Capital Management Platform: Management has stated its intention to prioritize "synergies across our platform strategies, which we believe will ultimately benefit the BDC". This suggests that by leveraging the broader expertise, deal flow, and resources of Palmer Square Capital Management LLC, the BDC can enhance its investment opportunities, potentially leading to increased and more efficient capital deployment and subsequent revenue growth.

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Share Repurchases

• The Board of Directors authorized a share repurchase plan for up to $20 million of the company's common stock.
• Palmer Square Capital Management was authorized to purchase up to $5 million of common stock in the open market within one year of the January 2024 IPO.
• An additional $5 million of open market share repurchases were approved by the board as of November 5, 2025.

Share Issuance

• Palmer Square Capital BDC closed its initial public offering (IPO) on January 22, 2024, issuing 5,450,000 shares of common stock at $16.45 per share.
• Gross proceeds from the IPO totaled approximately $89.7 million, intended for investments.

Outbound Investments

• As of September 30, 2025, the total investment portfolio had a fair value of approximately $1.26 billion across 209 portfolio companies.
• During the third quarter of 2025, PSBD invested $138.7 million of capital across 28 new investment commitments.
• The portfolio primarily consists of corporate debt loans, including broadly-syndicated loans and large cap direct lending, along with other debt securities such as collateralized loan obligation (CLO) debt and equity.