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]

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' ...

Investment Portfolio - As of March 31, 2025, the company had investments in 116 portfolio companies with an aggregate fair value of approximately $2,167 million and unfunded commitments of $236 million[258]. - The portfolio consisted of 98.1% first lien senior secured loans, 0.8% subordinated debt, and 1.1% equity investments[258]. - For the three months ended March 31, 2025, gross new investment commitments were $340.2 million, with net investment commitments of $230.2 million after accounting for sold or repaid investments[267]. - The principal amount of private credit investments funded was $293.8 million, while broadly syndicated loans amounted to $0 million[267]. - The average position size for private credit and equity investments was $23.0 million[261]. - The percentage of investments in trading companies & distributors rose to 15.4% as of March 31, 2025, from 15.1% as of December 31, 2024[273]. Financial Performance - Total investment income for Q1 2025 was $55.2 million, up from $46.5 million in Q1 2024, representing a 15.0% increase[276]. - Net investment income for Q1 2025 was $28.7 million, compared to $23.8 million in Q1 2024, reflecting a 20.6% increase[276]. - Total expenses for Q1 2025 were $27.8 million, an increase from $22.7 million in Q1 2024, marking a 22.5% rise[278]. - Net realized gains on investments for Q1 2025 were $0.6 million, while there were no realized gains or losses in Q1 2024[279]. - Net change in unrealized gains (losses) for Q1 2025 was $(6.5) million, compared to a gain of $4.0 million in Q1 2024[280]. Debt and Financing - As of March 31, 2025, the company had $75 million in senior unsecured notes outstanding, with $25 million of 8.65% Series A Notes due June 2027 and $50 million of 8.74% Series B Notes due June 2028[288]. - The company borrowed $940.5 million under its credit facilities and had cash and cash equivalents of $46 million as of March 31, 2025[287]. - The Corporate Credit Facility has a total commitment of $400 million, with a potential increase to $600 million under certain circumstances[289]. - The interest rate on the Corporate Credit Facility is Term SOFR plus an applicable spread of 2.10% per annum[289]. - The company has a senior secured revolving funding facility with a commitment of $675 million, maturing on February 13, 2030, with an interest rate of daily SOFR plus 2.15%[290]. - The company also has a second revolving credit facility with an initial commitment of $250 million, which can be increased to $500 million, maturing on December 22, 2029, with an interest rate of 3-month term SOFR plus 2.25%[291]. - As of March 31, 2025, total contractual obligations amount to $1,015.5 million, with $577 million due from the Revolving Funding Facility and $169.5 million from the Revolving Funding Facility II[292]. - The company had unfunded commitments of $235.5 million as of March 31, 2025, including $150.6 million for revolvers to provide debt financing to portfolio companies[293]. Interest Rate Risk - As of March 31, 2025, 100% of the company's debt investments had floating interest rates[260]. - The company is subject to interest rate risk, with potential impacts on net investment income based on changes in interest rates, as shown in a table indicating effects of hypothetical rate changes[310][312]. - A decrease of 200 basis points in interest rates could lead to a decrease in net investment income by $23.5 million[312]. - The company may hedge against interest rate fluctuations using standard hedging instruments, which could limit participation in benefits from lower interest rates[313]. Management and Fees - The company declared a regular dividend of $0.40 per share, totaling $28.5 million, with $2.4 million fulfilled through a Dividend Reinvestment Plan[253]. - Management fees increased to $5.1 million in Q1 2025 from $3.5 million in Q1 2024, a 45.7% increase[278]. - The base management fee under the Amended Investment Advisory Agreement is set at an annual rate of 1.00%, with an incentive fee on income subject to a twelve-quarter lookback hurdle rate of 1.50%[303]. Valuation and Accounting - The fair value of investments was $78.0 million, up from $69.4 million as of December 31, 2024, a 9.3% increase[272]. - The largest contributor to unrealized gains in Q1 2025 was Arborworks Acquisition, LLC, contributing $1.7 million[282]. - The portfolio had four debt investments on non-accrual status as of March 31, 2025, compared to one in the previous year[277]. - The company’s critical accounting estimates affect reported amounts of assets, liabilities, revenues, and expenses, with potential variances due to changes in economic conditions[294]. - The valuation of investments is primarily based on market quotations for traded investments, while non-traded investments are valued using a process that reflects fair value[295][297].

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 ...