Group 1 - Business Development Companies (BDCs) are financial vehicles that aim to source capital at low costs and lend it at higher yields to businesses that cannot access traditional banking services [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on helping corporates with financial strategies and large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Group 1 - The article discusses the methods for determining fair valuations, specifically mentioning discounted cash flow models and multiples approach as common techniques [1] - It highlights the experience of Roberts Berzins in financial management, particularly in shaping financial strategies for top-tier corporates and executing large-scale financings [1] - The article notes Berzins' contributions to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - It mentions Berzins' involvement in developing national SOE financing guidelines and frameworks aimed at channeling private capital into affordable housing [1] - The article states that Berzins holds a CFA Charter and an ESG investing certificate, indicating his qualifications in the field [1] - It also references his internship experience at the Chicago Board of Trade, despite being based in Latvia, showcasing his international exposure [1]

Group 1 - The BDC (BIZD) segment is experiencing challenges with key variables negatively impacting player earnings and dividend coverage levels [1] - There is currently no significant headwind affecting the sector, yet dividend coverage remains extremely thin [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - His policy-level work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [1]

Core Viewpoint - Small-cap companies are rapidly adopting AI technologies, leading to increased efficiency and potential profit growth, while currently being the cheapest sector in the market [2] Group 1: Small-Cap Dividend Stocks - BlackRock TCP Capital (TCPC) has a yield of 15.7% and invests in over 150 companies across 20 industries, but is currently facing restructuring due to credit issues [3] - TCPC is trading at an 18% discount to its net asset value (NAV), with a regular yield of 14% and an additional 1.7% from special dividends [4] - New Mountain Finance (NMFC) offers a 12.1% yield and is also trading at a 14% discount to NAV, focusing on U.S. upper-middle-market businesses [5][6] - NMFC's NAV has declined nearly 2% quarter-over-quarter, with markdowns in healthcare and consumer products, but its credit quality remains stable [8][9] - Kayne Anderson BDC (KBDC) has a yield of 12.6% and targets companies with $10 million to $75 million in EBITDA, with a focus on defensive industries [10] - KBDC has initiated a $100 million buyback program and has seen investments increase in Q3, despite a slight decline in NAV [12] Group 2: Income-Generating Investments - Mach Natural Resources LP (MNR) offers a 16.0% distribution and operates primarily in the Anadarko Basin, with a focus on natural gas [13] - MNR trades at approximately 3.5 times this year's EBITDAX estimates, which is below the average for comparable MLPs [14] - MFA Financial (MFA) has a yield of 14.4% and invests in residential mortgage loans and securities, with a recent 13% QoQ increase in origination fees [15][17] - MFA's distributable earnings are expected to drop significantly this year, but the market does not seem to be pricing in a dividend cut [18] - Armour Residential REIT (ARR) offers a high yield of 19.0% but has a history of dividend cuts, trading at about 90% of book value [19][21]

Financial Performance - Net investment income for the quarter ended June 30, 2025, was $28.7 million, or $0.40 per share, consistent with the previous quarter[4] - Total investment income for the quarter was $57.3 million, up from $55.2 million in the previous quarter, driven by a shift to higher-yielding middle market loans[6] - For the three months ended June 30, 2025, total investment income was $57,298, an increase of 3.2% from $52,453 for the same period in 2024[19] - Net investment income for the six months ended June 30, 2025, was $57,450, compared to $58,196 for the same period in 2024, reflecting a decrease of 1.3%[19] - Basic and diluted net investment income per common share was $0.40 for the three months ended June 30, 2025, compared to $0.51 for the same period in 2024, a decline of 21.6%[19] - Interest income from non-controlled, non-affiliated investments increased to $57,120 for the three months ended June 30, 2025, from $51,991 in 2024, representing an increase of 9.1%[19] Asset and Investment Overview - The company's net asset value per share decreased to $16.37 from $16.51 as of March 31, 2025, primarily due to a special dividend payment and net unrealized losses[4] - The company's total assets increased to $2,255.99 million from $2,230.50 million as of March 31, 2025[5] - New private credit and equity co-investment commitments totaled $128.7 million, with net funded private credit and equity investment increasing by $56.6 million[4] - The investment in SG Credit Partners, Inc. included an $80 million term loan facility and a $12 million common equity investment, with an interest rate of 11.00%[16] Expenses and Management - Total expenses for the three months ended June 30, 2025, were $29,377, up 30% from $22,640 in the same period of 2024[19] - Management fees for the three months ended June 30, 2025, were $5,412, an increase of 27.5% from $4,251 in the same period of 2024[19] - The company is externally managed by KA Credit Advisors, LLC, focusing on first lien senior secured loans to middle market companies[20] Debt and Non-Accrual Investments - The debt-to-equity ratio as of June 30, 2025, was 0.91x, with a target range of 1.0x to 1.25x[13] - Non-accrual investments remained flat at 1.6% of fair value, with non-accrual investments valued at $34.54 million[10] - The weighted average yield on private middle market loans was 10.7%, while the total debt portfolio yield was 10.4%[10] Unrealized Losses and Share Information - The company experienced a total net change in unrealized losses of $3,471 for the three months ended June 30, 2025, compared to a loss of $3,075 in the same period of 2024[19] - The weighted average common shares outstanding for the three months ended June 30, 2025, was 70,901,688, an increase from 67,426,904 in 2024[19] - The company declared a regular dividend of $0.40 per share, to be paid on October 16, 2025[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-01363 Kayne Anderson BDC, Inc. | Delaware | 83-0531326 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification ...

Market Overview - The BDC market (BIZD) has experienced significant volatility in recent months, mirroring the fluctuations seen in major stock indices such as the S&P 500 (SPY) and the Nasdaq-100 (QQQ) [1] Professional Background - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [2] - His policy-level work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2] - Berzins is a CFA Charterholder and holds an ESG investing certificate, with experience from an internship at the Chicago Board of Trade [2] - He is actively involved in thought-leadership activities aimed at supporting the development of pan-Baltic capital markets [2]

Group 1 - One of the key challenges in retirement-focused strategies is achieving the necessary income or portfolio value goal in a timely manner, such as building a $5,000 monthly income producing portfolio [1] - Roberts Berzins has over a decade of experience in financial management, helping top-tier corporates shape their financial strategies and execute large-scale financings [1] - Berzins has made significant efforts to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - Berzins has contributed to the development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock [1] - He is a CFA Charterholder and holds an ESG investing certificate, with experience from an internship at the Chicago Board of Trade [1] - Berzins is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets [1]

Group 1 - Business Development Companies (BDCs) are generally not suitable for retirement income investing due to their high embedded risk levels [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - Berzins has also worked on developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Core Insights - Kayne Anderson BDC, Inc. (NYSE: KBDC) is highlighted as a significant holding in the portfolio, with a focus on its performance since its IPO in October 2024 [1] - The company is led by Roberts Berzins, who has over a decade of experience in financial management and has contributed to the development of financial strategies for top-tier corporates [1] - Berzins has played a key role in institutionalizing the REIT framework in Latvia, aimed at enhancing liquidity in pan-Baltic capital markets [1] Company Overview - Kayne Anderson BDC, Inc. is recognized for its strategic initiatives in the financial sector, particularly in the Baltic region [1] - The company has been involved in policy-level work, including the creation of national SOE financing guidelines and frameworks to attract private capital into affordable housing [1] - Roberts Berzins holds a CFA Charter and an ESG investing certificate, indicating a strong commitment to sustainable investment practices [1] Leadership and Expertise - The leadership of Roberts Berzins is emphasized, showcasing his extensive background and contributions to financial management and capital market development [1] - Berzins has experience with the Chicago Board of Trade, which adds to his credibility in financial markets despite being based in Latvia [1] - His involvement in "thought-leadership" activities further supports the advancement of pan-Baltic capital markets [1]