Exhibit 99.1 Kayne Anderson BDC, Inc. Announces March 31, 2025 Financial Results and Declares Second Quarter 2025 Dividend of $0.40 Per Share CHICAGO--(BUSINESS WIRE)-- Kayne Anderson BDC, Inc. (NYSE: KBDC) ("KBDC or the Company"), a business development company externally managed by its investment adviser, KA Credit Advisors, LLC, today announced its financial results for the first quarter ended March 31, 2025. "We are pleased to report one of our strongest first quarters of investment activity since KBDC' ...

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 March 31, 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 ...

The only exception to this is diversification, which is commonly referred to as the only true freeOne of the core principles in investing is that in order to achieve greater returns, the risk level has to be increased.Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic ca ...

Group 1 - The current market situation favors a value/income-based investing approach, which aligns with the company's core strategy of focusing on high-quality and durable income streams [1] Group 2 - 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] - Berzins 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 holds a CFA Charter and an ESG investing certificate, and has participated in thought-leadership activities to support the development of pan-Baltic capital markets [2]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported net investment income of $0.48 per share and net income of $0.50 per share, compared to $0.53 per share in the previous quarter [8][23] - Total investment income decreased to $56.3 million from $57.8 million in the prior quarter, primarily due to a reduction in SOFR and the impact of placing Sundance on non-accrual status [23][24] - Total expenses increased to $22.3 million from $20.8 million, mainly due to higher interest expenses and excise tax [25] Business Line Data and Key Metrics Changes - The company made $231 million in total commitments across 16 businesses in Q4 2024, up from $153 million in Q4 2023 [9] - Fundings in Q4 2024 totaled $209 million, compared to $184 million in Q4 2023 [10] - The debt-to-equity ratio increased to 0.72 times from 0.66 times in the previous quarter [12][28] Market Data and Key Metrics Changes - Middle market sponsor loan volumes increased by 96% in Q4 2024 compared to Q4 2023, and by 86% for the entire year [20] - The existing portfolio of private middle market investments has a weighted average spread over SOFR of approximately 609 basis points [21] Company Strategy and Development Direction - The company plans to continue winding down its broadly syndicated loan portfolio and focus on private middle market investments [11] - The first quarter of 2025 is expected to be one of the largest origination quarters since inception, indicating a strong growth trajectory [14][28] - The company aims to achieve the low end of its debt-to-equity target range of 1 to 1.25 times by mid-2025 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of middle market private credit, even during economic downturns [18] - The company is optimistic about the stability of spreads and the availability of risk-adjusted lending opportunities [21][22] Other Important Information - The company declared a regular dividend of $0.40 per share for Q1 2025 and plans to distribute two special dividends of $0.10 per share in March and June 2025 [32][33] - As of December 31, total assets were $2.08 billion, and net assets were $1.2 billion, with a net asset value of $16.70 per share [27] Q&A Session Summary Question: Does the expectation to achieve target leverage include rotating the broadly syndicated loan portfolio? - Management clarified that the expectation does not include the rotation of the broadly syndicated loan portfolio and is based on current investment activity [36][37] Question: What is the assessment of risks related to borrowers and tariffs? - Management indicated that the portfolio has minimal exposure to government funding risks and assessed tariff risks, noting that most borrowers have the ability to flex pricing [38][39][42] Question: How have leverage multiples and covenants held up in the current market? - Management reported that leverage has remained consistent, with new investment activity around four times, and noted a slight decrease in closing fees [50][52][54]

Financial Performance - Net investment income per share was $0.48 ($0.49 excluding excise taxes)[6] - Net asset value per share was $16.70[6] - Annualized ROE on net investment income was 11.5% (11.8% excluding excise taxes)[6] - The company declared a 4Q'24 regular dividend per share of $0.40, resulting in an annualized dividend yield of approximately 9.6%[6] Portfolio Composition - The total fair value of the portfolio was approximately $2.0 billion, invested in 110 companies[6] - The weighted average yield at amortized cost of debt investments was 10.7%[6] - Approximately 98% of the portfolio consisted of first-lien loans[6] - Non-accrual investments represented 1.3% of the portfolio based on fair value[6] Balance Sheet and Liquidity - The outstanding debt balance was $858 million, with a quarter-end debt-to-equity ratio of 0.72x[6] - Total liquidity was $513 million, including $71 million in cash and $442 million in undrawn committed debt capacity[6]

Financial Performance - Net investment income for the quarter was $34,000,000, or $0.48 per share, down from $37,100,000, or $0.52 per share in the previous quarter, reflecting a decrease of 8.38% in income per share[7] - Total Investment Income for Q4 2024 was $56.34 million, up 32.5% from $42.69 million in Q4 2023[18] - Net Investment Income for Q4 2024 increased to $34.02 million, compared to $22.43 million in Q4 2023, representing a growth of 51.7%[18] - Basic and diluted net investment income per common share for Q4 2024 was $0.48, down 11.1% from $0.54 in Q4 2023[18] - Net Increase in Net Assets Resulting from Operations for the year ended December 31, 2024 was $131.94 million, compared to $77.08 million in 2023, reflecting a growth of 71.2%[18] Debt and Leverage - The total debt outstanding at principal rose to $858,000,000, up from $788,000,000, indicating a 8.87% increase[4] - The total debt-to-equity ratio increased to 0.72x from 0.66x, indicating a rise in leverage[4] - The company expects to achieve the low end of its targeted debt-to-equity ratio of 1.0x to 1.25x by the second or third quarter of 2025[12] Investment Portfolio - For the quarter ended December 31, 2024, the investment portfolio at fair value increased to $1,995,143,000 from $1,943,439,000 as of September 30, 2024, representing a growth of 2.66%[4] - The company added 8 new investments during the fourth quarter, maintaining its strategy of lending to stable industries[2] - New private credit and equity co-investment commitments totaled $230,631,000, with net funded private credit and equity investment increasing by $69,400,000[5] Income and Expenses - Total Expenses for Q4 2024 were $28.66 million, a 41.5% increase from $20.26 million in Q4 2023[18] - Management fees for Q4 2024 were $4.95 million, a 65.1% increase from $2.99 million in Q4 2023[18] - Incentive fees for Q4 2024 rose to $5.10 million, compared to $2.50 million in Q4 2023, marking a 104.0% increase[18] - Interest expense for Q4 2024 was $16.55 million, up 19.0% from $13.92 million in Q4 2023[18] Investment Quality - Non-accrual investments at fair value increased to $25,079,000, representing 1.3% of debt investments at fair value, up from 1.0% in the previous quarter[9] - The weighted average yield on private middle market loans decreased to 11.1% from 11.9%, while the yield on the total debt portfolio fell to 10.6% from 11.3%[9] Company Strategy - The company focuses on first lien senior secured loans and aims to generate current income and capital appreciation[19]

Investment Valuation and Strategy - The majority of the company's portfolio investments are classified as Level 3 under ASC Topic 820, indicating that valuations are based on unobservable inputs and significant management judgment [216]. - The company intends to use an independent valuation firm to review the fair value of certain instruments at least once annually, which may lead to fluctuations in valuations over short periods [217]. - The company may need to alter its investment strategy due to changes in regulations governing its operations, which could adversely affect its results and investment value [221]. - The company incurs significant costs related to compliance with the Exchange Act and Sarbanes-Oxley Act, which may strain its resources [230]. - The company relies on due diligence processes that may not uncover all relevant facts, exposing it to investment risks [246]. - The company may invest in portfolio companies with second priority liens on collateral, which may not be sufficient to satisfy debt obligations if liquidation occurs [261]. - The company may face limitations on rights regarding collateral due to intercreditor agreements with senior debt holders [263]. - The company is required to value investments at market or fair value, considering factors such as enterprise value and financial performance [265]. - Quick liquidation of investments may result in realizing significantly less than previously recorded values [266]. - The company may be restricted from selling investments due to contractual obligations or market conditions [268]. Regulatory and Economic Risks - Changes in laws and regulations, particularly those stemming from Dodd-Frank, could materially adversely affect the company's operations and financial condition [219]. - The U.S. Federal Reserve's unprecedented actions since the 2008-2009 financial crisis and the COVID-19 pandemic may lead to greater market risks due to limited government intervention in future market disruptions [220]. - New credit risk retention requirements in the U.S. and Europe may increase the company's cost of funds or prevent future securitization transactions [222]. - The Economic Growth, Regulatory Relief, and Consumer Protection Act has recalibrated regulatory thresholds, which could negatively impact the company's operations and financial condition [224]. - Increased regulatory attention on non-bank credit extension could impose additional costs and intensify regulatory supervision, adversely affecting the company's business [225]. - Global economic and political conditions, including conflicts and trade tensions, may significantly impact the company's business and financial condition [325]. Financial Performance and Market Conditions - Rising interest rates could adversely affect the value of the company's investments and make it more difficult for portfolio companies to make loan payments [242]. - The current inflationary environment has led to increased borrowing costs, potentially reducing returns to stockholders [243]. - The U.S. Federal Reserve has raised interest rates sharply, remaining near their highest levels in over twenty years, which could impact the company's financial condition [244]. - Strain on the banking system may adversely affect the company's business and its portfolio companies' access to cash and credit facilities [245]. - The company invests in highly leveraged companies, which may lead to significant risks and potential loss of investments [250]. - Investments in below investment grade securities, often referred to as "junk bonds," carry a high level of risk and volatility [252]. - The company is subject to risks associated with unitranche secured loans, which combine senior and junior debt characteristics [253]. - Defaults by portfolio companies could harm the company's operating results and lead to additional expenses for recovery efforts [259]. - Illiquidity and price declines in investments could adversely affect the company's business and net asset value (NAV) through increased net unrealized depreciation [264]. - The company's share price may be volatile and could trade at a discount to net asset value, impacting marketability post-IPO [304]. - Significant volatility in the market price and trading volume of securities may occur, which is not necessarily related to the company's operating performance [311]. Shareholder Considerations - The company has authorized a share repurchase program for up to $100 million within one year of the IPO, which may influence the market price of its common stock [239]. - The company intends to make periodic distributions to stockholders, but cannot assure a specified level of cash distributions or year-to-year increases [314]. - The company may issue additional shares, which could dilute existing stockholders' interests [317]. - Under the 1940 Act, the company is generally prohibited from issuing shares below NAV per share, which may disadvantage it compared to certain public companies [319]. - The company may declare a large portion of dividends in shares instead of cash, which could have tax implications for stockholders [322]. - The company does not currently anticipate issuing preferred stock, which could affect the value of common stock [323]. Environmental and Social Risks - Environmental risks associated with portfolio companies could lead to substantial liabilities affecting investment performance [275]. - The company faces risks related to environmental, social, and governance (ESG) activities, which could impact brand value and operational costs [336]. Interest Rate Sensitivity - Interest rate sensitivity affects net investment income, with potential material adverse effects from significant changes in market interest rates [454]. - A hypothetical 200 basis points increase in interest rates could result in a net investment income increase of $23.4 million, while a decrease of the same magnitude could lead to a decrease of $39.1 million [456]. - The company may use hedging instruments to mitigate interest rate fluctuations, but this could limit benefits from lower interest rates on fixed-rate investments [457].

Core Viewpoint - The Zacks SBIC & Commercial Finance industry is poised to benefit from increased demand for personalized financing solutions as interest rates decline, leading to growth in total investment income and refinancing activity, supported by favorable regulatory changes [1][6][8]. Industry Overview - The Zacks SBIC & Commercial Finance industry consists of companies that provide financing to small and midsized privately held firms, often underserved by traditional banks. These companies offer customized financing solutions, including senior debt instruments and equity capital, targeting ownership changes, strategic buyouts, recapitalizations, and growth initiatives [3][4]. Key Themes - **Asset Quality**: The industry faced challenges post-COVID-19, but government stimulus and economic recovery helped maintain asset quality. However, prolonged high interest rates may lead to asset quality deterioration as portfolio companies struggle with debt servicing [4][5]. - **Declining Interest Rates**: The Federal Reserve has reduced interest rates by 75 basis points, with expectations for an additional 25-bps cut. This decline is anticipated to boost demand for SBIC & Commercial Finance products, driving total investment income [6][7]. - **Regulatory Changes**: The 2018 amendment to the Investment Company Act allowed increased leverage for SBIC companies, enhancing their funding flexibility and growth opportunities [8]. Industry Performance - The Zacks SBIC & Commercial Finance industry ranks 127 out of over 250 Zacks industries, placing it in the bottom 49%. This ranking reflects a discouraging earnings outlook and underperformance compared to the S&P 500 and the broader finance sector, with the industry rising only 8.8% over the past year compared to 30% for the S&P 500 [9][10][12]. Valuation Metrics - The industry has a trailing 12-month price-to-tangible book (P/TB) ratio of 0.95X, significantly lower than the S&P 500's 14.47X and the Zacks Finance sector's 5.19X, indicating a solid discount relative to the market [15][17]. Investment Opportunities - **Kayne Anderson BDC, Inc. (KBDC)**: This company has invested nearly $11 billion since its inception in 2021, with total investments of $1.94 billion in 110 portfolio companies as of September 30, 2024. KBDC has a market cap of $1.15 billion and a debt-to-equity ratio of 0.66, targeting a ratio of 1.0 to 1.25 [19][20][21][22]. - **Bain Capital Specialty Finance, Inc. (BCSF)**: BCSF focuses on U.S. middle-market companies and had a total investment portfolio valued at $2.41 billion as of September 30, 2024. The company has a market cap of $1.07 billion and has seen a 10.2% increase in shares this year [24][25][26][27].

Financial Performance - Net investment income for Q3 2024 was $37.1 million, or $0.52 per share, an increase from $34.4 million, or $0.51 per share in Q2 2024[6]. - Total investment income for Q3 2024 was $57.8 million, compared to $52.5 million in Q2 2024, driven by portfolio additions[5]. - Total investment income for the quarter was $57,819,000, up from $41,197,000 in the same quarter last year, reflecting a year-over-year increase of 40.4%[15]. - Net investment income for the quarter was $37,053,000, compared to $21,369,000 in the prior year, marking a significant increase of 73.5%[15]. - Interest income from non-controlled, non-affiliated investments was $57,541,000, compared to $41,041,000, an increase of 40.4%[15]. Asset and Liability Management - Total assets as of September 30, 2024, were $2,028,245, up from $1,909,850 as of June 30, 2024[3]. - Total assets increased to $2,028,245,000 as of September 30, 2024, compared to $1,423,666,000 on December 31, 2023, representing a growth of 42.5%[13]. - Total liabilities increased to $842,040,000 from $740,610,000, which is an increase of 13.7%[13]. - The company's debt-to-equity ratio increased to 0.66x from 0.53x, with total debt outstanding at $788 million[3][10]. Investment Commitments - New private credit and equity investment commitments totaled $182.6 million, with fundings of $184.6 million and net funded investments increasing by $101.8 million[2]. - The company had $437 million of undrawn commitments available on its credit facilities as of September 30, 2024[9]. Shareholder Returns - The regular dividend declared was $0.40 per share, to be paid on January 15, 2025[11]. - The company reported a total of $28,420,000 in distributions payable, compared to $22,050,000 in the previous period, an increase of 29.0%[13]. Valuation Metrics - Net asset value per share increased to $16.70 from $16.57 as of June 30, 2024, primarily due to excess net investment income[3]. - Net asset value per common share rose to $16.70 from $16.42, indicating a 1.7% increase[13]. Operational Efficiency - Management fees for the quarter were $4,764,000, up from $2,905,000, representing a 64.3% increase[15]. - Cash and cash equivalents increased to $39,083,000 from $34,069,000, a rise of 14.8%[13]. Investment Quality - The weighted average yield on private middle market loans was 11.9%, down from 12.3% in the previous quarter[8]. - Non-accrual investments at fair value were $19,229,000, representing 1.0% of debt investments at fair value[8].