Ladies and gentlemen, hello and welcome to Kane Anderson BDC Inc's first quarter 2025 earnings call. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. And it is now my pleasure to turn the conference over to Terry Hart, Chief Financial Officer of KBDC.

Good morning and welcome to Kane Anderson BDC Inc's first quarter 2025 earnings call. Today, I'm joined by Doug Goodwilley and Ken Leonard, co-CEOs of KBDC, and Lee Feingold, a private credit managing director. Following our prepared remarks, we will be available to take your questions. Today's call may include forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors, and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates, and projections about the company, our current and prospective portfolio investments, our industry, our beliefs, our opinions, and our assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Actual results may differ materially from those expressed or forecasted in the forward-looking statements. We ask that you refer to the company's most recent filings with the SEC for important risk factors. Any forward-looking statements made today do not guarantee future performance and undue reliance should not be placed on them. The company assumes no obligation to update any forward-looking statements at any time. Our earnings release, 10-Q, and supplemental earnings presentation are available on the financial section of our website at canebdc.com. Now I'd like to turn the call over to Doug Goodwilly.

Thank you, Terry, and thank you everyone for joining us on the call today. I would like to start with an overview of our financial results before discussing investment activity during our strongest first quarter of deployment since inception. I will then turn to our portfolio makeup and performance, and finally, I will close out with some thoughts on current market conditions, including the constantly evolving market backdrop, or turning it over to Terry Hart to discuss KBDC's financial results in more detail. During the first quarter of 2025, we generated net investment income of $0.40 per share and net income of $0.31 per share. During the quarter, we distributed our $0.40 per share regular dividend and $0.10 per share special dividend. As of March 31st, our estimated spillover of net investment income was 22 cents per share. In February, we also had our second of three lockup releases, the last of which will occur on May 21st. Turning to our private middle market investment activity as highlighted in our last earnings call, our first quarter actively benefited from a robust pipeline and supported market conditions, highlighting our ability to originate high-quality deal flow. We made $340 million of total commitments across 16 different businesses during the period, of which $264 million was funded. This number is a 113% increase from the $160 million of commitments made in the first quarter of 2024. We also thought it was important to highlight that we were able to maintain an average spread over SOFR of 5.49% and a weighted average net senior leverage ratio of four times. When we add in our existing unfunded commitments funded during the quarter, we invested $294 million. Again, this compares favorably to the first quarter of 2024, where gross fundings were $148 million. Repayment activity during the quarter totaled $86 million of gross repayments, up from $32 million in the first quarter of 2024, but still only 4% of average funded investments. During the quarter, our broadly syndicated loan portfolio experienced no new fundings in line with our plan and $27 million of repayments for the total portfolio of approximately $113 million. We plan to continue to wind down our broadly syndicated loan portfolio over the course of the year. When considering all funding and repayment activity. Net funded deployment for the quarter was approximately $181 million. This increase raised our debt-to-equity ratio to 0.86 times, above our fourth quarter 2024 debt-to-equity ratio of 0.72 times, and also on pace to hit our target range of one to one and a quarter times in the next two quarters. Turning to our portfolio composition, as of March 31st, KBDC's portfolio includes 116 individual portfolio companies representing 2.2 billion of fair market funded value investments. We have another 236 million of unfunded commitments comprised of a mix of unfunded revolvers and delayed draw term loans. Our total portfolio commitments are in excess of 2.4 billion. Since March 31st, 2025, KBDC has closed or is in the final closing process on an additional $150 million of fundings, highlighting the continued strong start to originations for 2025 and evidencing our continued ability to scale our portfolio even during periods of market uncertainty. As of March 31, 2025, investments in KBDC's portfolio, excluding those on our watch list, have a weighted average leverage of 4.2 times, interest coverage of 3.2 times, and an LTV of approximately 43 percent, evidencing our conservatism in loan structuring. We have also built a diversified portfolio with an average position size of 0.9 percent of fair value, and where our top 10 investments represent only 18 percent of the portfolio. Outside of the specific credit statistics associated with the portfolio, our investments are well-structured, with over 90 percent of our portfolio invested in first lien securities and 99% of our private middle market investments being backed by private equity sponsors. Additionally, all of our core first lien private middle market investments have financial covenants. 100% of our debt investments are floating rates, which mirrors our liabilities where the vast majority of our debt funding utilizes floating rate borrowings as well. Credit performance across our portfolio remains strong to date, with only 1.6% of total debt investments at fair value on non-accrual, represented by only four positions out of 116. Lastly, we have built this conservative portfolio with a healthy weighted average yield of approximately 10.4% on fair value of investments. This yield has been achieved with approximately 10% of our portfolio invested in broadly syndicated loans, but we are well positioned for upside and spreads relative to our competitors over the next few quarters as we continue to rotate out of these lower spread broadly syndicated investments. Our private credit strategy has remained consistent through various cycles, making investments in senior secured loans to middle market sponsor backed businesses. Over 14 years at Kane Anderson and a prior plus two decades at other platforms, we have one of the longest-tenured partnerships in middle market direct lending. During our time at KAPC alone, we have invested over $13 billion into nearly 230 businesses through nearly 430 discrete transactions, which is a testament to the value our platform delivers for our sponsor partners. We think the quality of the team and our experience managing through volatile markets is important to highlight given the recent market disruption caused by tariff discussions and other political uncertainties. As loan activity across the debt markets has declined sharply, we believe core mid-market private credit is still providing attractive total return opportunities with significant equity cushions supporting our debt investments. We also believe that we are less impacted by spread tightening seen in the larger market, given our differentiated focus on more stable, defensive, core mid-market companies. Despite a more benign M&A market and current macro uncertainties, we continue to review opportunities that have a spread over SOFR typically in the 500 to 600 basis points range. Our Q1 middle market loans have a spread of approximately 550 basis points. We will, of course, remain highly selective and disciplined and our capital allocation in all market environments. And since Liberation Day, the market has been in more of a discovery mode with lower M&A volumes, and if anything, spreads and fees have seen a slight increase in the smaller data set of deals priced over the last month. With a rapidly evolving policy landscape, we undertook a company-by-company analysis to gauge potential exposure to disruptions from tariff implementations. This analysis included parameters such as revenue generation and cost of goods sold by geography, direct or indirect tariff exposure, and pricing power. Our portfolio is diversified by end market and industry with a focus on stable, slower-growing segments of the U.S. economy. As you can see in our earnings presentation, our largest industries are distribution, commercial services, food products, containers and packaging, and healthcare providers, with the largest representing only 15.4 percent of the total portfolio. Our deal teams have been in close dialogue with our private equity partners, as well as each of the management teams, around the impact of the current operating conditions. While a limited subset of our portfolio has direct exposure to tariff policies, we believe that the majority of companies possess sufficient pricing power to pass through increased costs to customers due in large part to their importance in supply chains and lack of viable alternative products. We are and will continue to monitor the portfolio as trade agreements are formalized. Despite the uncertain market backdrop, the portfolio is performing very well, and we continue to be pleased with the quality of our loan book. In Q1, we added one position in non-accrual, which represents only 0.6% of the fair market value of our portfolio. As mentioned, that brings our total non-accruals to 1.6% of the fair value of the portfolio. KBDC's portfolio generally exhibits lower leverage and higher interest coverage ratios than our peers, a critical advantage in today's elevated rate environment and during periods of economic uncertainty. We feel very comfortable about the types of issuers that we are underwriting, those with strong cash flow stability and minimal direct tariff exposure. We think that this period of volatility will continue in the near term, and we will opportunistically look to add attractive loans that enhance the returns of the portfolio, while also increasing the quality and stability of our holdings. As a reminder, KBDC's investment team conducts direct hands-on diligence to the management teams of prospective portfolio companies and visits all critical operating facilities. This comprehensive diligence process includes detailed business diligence, inclusive of multiple management meetings and planned sites and tours, interviews with key stakeholders, including customers, suppliers, and competitors, expansive industry diligence, inclusive of industry expert interviews, in-depth quality of earnings and accounting reviews conducted by trusted third-party providers with whom the team has an established track record, and engagement of additional third-party advisors when appropriate. In conclusion, while there is some turmoil in the market, we feel confident that by capitalizing on our longstanding relationships, providing thoughtful solutions for our partners, and supporting our portfolio companies, we have the financial flexibility to continue to grow the portfolio and to provide a steady dividend for our investors. And with that, I'll turn it over to Terry Hart to discuss KBDC's first quarter 2025 financial results.

Thanks, Doug. Let's first review results of operations. During the first quarter, we earned net income per share of $0.31 and net investment income per share was $0.40 compared to $0.48 in the prior quarter. The decline in net investment income was mainly due to the expiration of the incentive management fee waiver. As a reminder, in conjunction with our IPO, Kane Anderson instituted a 25 basis point fee waiver of our base management fee through May 23, 2025, and a full waiver of our income-based incentive fees that expired on December 31, 2024. Total investment income for the first quarter was $55.2 million as compared to $56.3 million in the prior quarter. The decrease to investment income was primarily driven by the reduction to SOFR and the 0.6 million impact of placing Siegel Egg on non-accrual status during the quarter. These reductions were partially offset by income generated from net additions to the portfolio during the first quarter. It's worth noting that the majority of the decrease to our portfolio yield was related to lower reference rates and that only 0.6% of our interest income for the quarter related to PIC interest. Additionally, during the first quarter, we had approximately $0.9 million of accelerated amortization of OIV as a result of realization activity. Total expenses for the first quarter were $26.5 million compared to $22.3 million for the prior quarter. The increase was primarily related to the expiration of the incentive fee waiver, a $4.5 million impact. During the quarter, our incentive fee was reduced by the 12-quarter look-back incentive fee tax. During the first quarter, we had a realized gain of $0.6 million on the sale of an equity co-investment, and we had net unrealized losses on the portfolio of $6.5 million compared to unrealized gains of $1.4 million in the prior quarter. The unrealized losses were primarily the result of negative fair value changes related to our investments in Sundance, Siegel Egg, and our broadly syndicated loan portfolio. Additionally, we had $0.6 million of deferred income tax expense related to unrealized gains on equity investments held in our taxable subsidiary. As of March 31st, total assets were $2.2 billion and net assets were $1.2 billion. As of that date, our net asset value was $16.51 per share. The decrease of 19 cents from $16.70 per share as of December 31st was primarily a result of paying the second of three special dividends of 10 cents per share during the quarter and nine cents per share related to net realized gains and unrealized losses during the first quarter. At the end of the first quarter, we had debt outstanding of $1.016 billion, and our debt to equity ratio was 0.86 times, which was an increase from 0.72 times at the end of the fourth quarter. We anticipate achieving the low end of our debt to equity range of one times to one and a quarter times in the second or third quarter of 2025. During the first quarter of 2025, we continued to increase credit facility borrowings, improving the utilization of the facilities, and we amended both SDV credit facilities to extend the maturity dates, increase capacity, and decrease the interest rates on the facilities. The reduction to our borrowing costs and higher utilization of our credit facilities, resulting from robust origination, should be beneficial to net investment income over the balance of the year. Looking forward, as we increase leverage on our credit facilities to achieve the low end of our debt-to-equity target range, we plan to opportunistically issue unsecured notes to provide additional credit facility flexibility and capacity. Turning now to our distributions, on May 1st, our Board of Directors declared a regular dividend for the second quarter of 2025 of $0.40 per share to shareholders of record on June 30th, 2025. In addition, on June 24th, we will distribute the final special dividend of $0.10 per share that was previously declared in conjunction with our IPO. As a reminder, these special dividends were established to help support the stock price around share lock-up release dates and to pay out excess income earned in 2024. As of March 31st, our undistributed net investment income was approximately $0.22 per share. Of this amount, $0.10 per share will be distributed to shareholders through the final special dividend in June. For the balance of 2025, we anticipate relatively modest excess net investment income above our base dividend, reflecting the timing of the continued ramp of our portfolio to achieve target leverage ranges and the strategic rotation out of our lower-yielding broadly syndicated loan investments into middle market loans. we believe our total dividend yield and dividend coverage will more accurately reflect our steady state operations when kbdc is operating at its leverage target with the portfolio fully invested in middle market loans in closing we are pleased to announce that we have renewed our 100 million

dollar share repurchase plan for an additional year following the anniversary of our ipo we are encouraged by the performance of our stock to date and want to continue to support our shareholders by extending the plan with that operator please open the line for questions thank you and we will now begin the question and answer session if you have dialed in and would like to ask a question please press star one on your telephone keypad to raise your hand and join the queue if you would like to withdraw your question simply press star one a second time If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, it is star one to join the queue. And our first question comes from Doug Harder with UBS. Your line is open.

Thanks. I was hoping you could just give a little more clarity, comfort around, you know, kind of that timeline you gave to achieve your target leverage, you know, kind of what you're seeing in the pipeline today you know and kind of how those uh spreads on those deals you're looking at today might compare to to kind of three or six months ago yeah um thanks doug this is ken um as mentioned uh q1 was very strong origination quarter for us our new investment spreads were around 549 over sofa which you know is a pretty nice premium to the market at large.

The market's obviously pulled back to some degree in the second quarter in terms of deal activity, you know, just given the certain macro environment that we're all seeing in terms of what's going on with tariffs and the administration, but we still expect Q2 to be net positive in terms of portfolio growth to achieve that growth. We're not having to change our investment parameters. We're still seeing good opportunities in the five to six hundred over SOFR and we're continuing to see you know closing fees and spreads that are you know indicative of what we've been able to achieve over the last few quarters. So I'd say we're reasonably optimistic right now about being able to achieve our target as we've said to get to that target leverage over the next two quarters.

Great thank you. Of course. And as a reminder it is star one if you would like to ask a question and with no additional questions I will now turn the conference back over to Mr. Ken Leonard for closing remarks.

Great. Thank you, operator. I want to thank everyone for their participation today and support over the last year as we approach our one-year anniversary next week of being a public company. We're very proud of what KBDC has achieved and the market position we've earned as a value-oriented, risk-reward-driven company. We remain excited and opportunistic about the remainder of 2025, and we look forward to sharing our continued progress in future calls. Thank you very much.

And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect.