Group 1 - Nuveen Churchill Direct Lending Corp. reported quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.57 per share, and showing a decrease from $0.56 per share a year ago, resulting in an earnings surprise of -7.02% [1] - The company posted revenues of $53.59 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.32%, compared to year-ago revenues of $51.6 million [2] - The stock has underperformed the market, losing about 7.3% since the beginning of the year, while the S&P 500 declined by -4.3% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $57.4 million, and for the current fiscal year, it is $1.96 on revenues of $231.3 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 28% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8] - The estimate revisions trend for Nuveen Churchill Direct Lending Corp. is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) Nuveen Churchill Direct Lending Corp. reported a solid start to 2025, with net investment income of $0.53 per share for Q1 2025, maintaining a diversified portfolio and optimizing its balance sheet | Metric | Q1 2025 (per share) | | :------------------------------------------------ | :------------------ | | Net Investment Income (NII) | $0.53 | | Net Realized and Unrealized Loss on Investments | $(0.24) | | Net Increase in Net Assets from Operations | $0.29 | | Net Asset Value (NAV) | $17.96 | - The portfolio is highly diversified with an average position size of **0.5%** and only **0.4%** of the total portfolio on non-accrual status on a fair value basis at the end of Q1 2025[3](index=3&type=chunk)[7](index=7&type=chunk) - The company optimized its balance sheet and capital structure by issuing **$300 million** of unsecured notes and refinancing a CLO, aiming to reduce future borrowing costs[3](index=3&type=chunk) [Distribution Declaration](index=1&type=section&id=Distribution%20Declaration) The Board of Directors declared a second quarter 2025 regular distribution of $0.45 per share, payable on July 28, 2025, to shareholders of record as of June 30, 2025 | Distribution Type | Amount (per share) | Payable Date | Record Date | | :---------------- | :----------------- | :----------- | :---------- | | Q2 2025 Regular | $0.45 | July 28, 2025| June 30, 2025 | - The company paid a first quarter regular distribution of **$0.45 per share** and a final special distribution of **$0.10 per share** on April 28, 2025, representing a **12.4% total annualized distribution yield** based on Q1 NAV per share[7](index=7&type=chunk) [Portfolio Overview](index=1&type=section&id=Portfolio%20Overview) [Portfolio Composition](index=1&type=section&id=Portfolio%20Composition) As of March 31, 2025, the company's portfolio maintained a fair value of $2.08 billion across 210 companies and 26 industries, primarily consisting of first-lien debt with a stable weighted average Internal Risk Rating | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Fair Value of Investments | $2.08 billion | $2.08 billion | | Number of Portfolio Companies | 210 | 210 | | Number of Industries | 26 | 27 | | Investment Type (Fair Value) | March 31, 2025 | December 31, 2024 | | :--------------------------- | :------------- | :---------------- | | First-Lien Debt | 90.5% | 90.6% | | Subordinated Debt | 7.8% | 7.7% | | Equity Investments | 1.7% | 1.8% | - The weighted average Internal Risk Rating of the portfolio at fair value remained stable at **4.1** for both March 31, 2025, and December 31, 2024. Non-accrual investments increased to two portfolio companies, representing **0.4%** of total investments at fair value, up from one company (**0.1%**) in the prior quarter[7](index=7&type=chunk)[8](index=8&type=chunk) [Portfolio and Investment Activity](index=3&type=section&id=Portfolio%20and%20Investment%20Activity) During Q1 2025, the company funded $153.0 million in portfolio investments and received $148.4 million from repayments and sales, indicating a slight net increase in funded investments compared to the previous quarter | Activity | Q1 2025 (3 months ended Mar 31) | Q4 2024 (3 months ended Dec 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Portfolio Investments Funded | $153.0 million | $151.1 million | | Proceeds from Repayments and Sales| $148.4 million | $119.5 million | [Results of Operations for the First Quarter Ended March 31, 2025](index=3&type=section&id=Results%20of%20Operations) [Investment Income](index=3&type=section&id=Investment%20Income) Investment income increased year-over-year, primarily due to higher investment activity, despite a decrease in the weighted average yield of debt and income-producing investments | Metric | Q1 2025 (3 months ended Mar 31) | Q1 2024 (3 months ended Mar 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Total Investment Income | $53.6 million | $51.6 million | | Weighted Average Yield (at cost) | 10.10% | 11.55% | - The decrease in weighted average yield was primarily due to overall tightening of spreads in new investments and a decline in base interest rates[10](index=10&type=chunk) [Net Expenses](index=3&type=section&id=Net%20Expenses) Net expenses rose year-over-year, driven by increased interest and debt financing expenses due to higher borrowings and refinancing activities, as well as higher management fees linked to the company's growing total assets | Metric | Q1 2025 (3 months ended Mar 31) | Q1 2024 (3 months ended Mar 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net Expenses (after waivers) | $26.1 million | $21.9 million | - Interest and debt financing expenses increased due to higher average daily borrowings and the acceleration of deferred financing costs from the termination of the Wells Fargo Financing Facility and CLO-I refinancing[11](index=11&type=chunk) - Management fees increased due to the Company's increase in total assets. Incentive fees on income and capital gains were waived for the first five quarters, including Q1 2025[11](index=11&type=chunk) [Net Realized and Unrealized Gain (Loss) on Investments](index=3&type=section&id=Net%20Realized%20and%20Unrealized%20Gain%20%28Loss%29%20on%20Investments) The company recorded a net realized gain in Q1 2025, a positive shift from a loss in the prior year, primarily due to repayments and sales, but reported a significant net change in unrealized loss attributed to underperforming portfolio companies | Metric | Q1 2025 (3 months ended Mar 31) | Q1 2024 (3 months ended Mar 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net Realized Gain (Loss) | $1.1 million | $(3.6) million | | Net Change in Unrealized Gain (Loss)| $(13.6) million | $4.1 million | - The net realized gain in Q1 2025 was primarily driven by gains from full or partial repayments and sales of investments[12](index=12&type=chunk) - The net change in unrealized loss for Q1 2025 primarily resulted from the underperformance of certain portfolio companies[12](index=12&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=3&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained $49.2 million in cash and cash equivalents and had approximately $172.8 million available under its revolving credit facility, with the debt to equity ratio increasing to 1.31x (1.25x net) from 1.15x (1.10x net) at the end of 2024 | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Cash and Cash Equivalents | $49.2 million | $43.3 million | | Total Aggregate Principal Debt | $1.2 billion | N/A | | Available for Additional Borrowings | $172.8 million | N/A | | Debt to Equity Ratio | 1.31x | 1.15x | | Net Debt to Equity Ratio | 1.25x | 1.10x | [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) Nuveen Churchill Direct Lending Corp. hosted a conference call and webcast on May 8, 2025, to discuss its first quarter 2025 financial results, with replay available on the company's website - A conference call was held on **May 8, 2025**, at **11:00 AM Eastern Time**, with a live webcast and replay available on the company's website[14](index=14&type=chunk)[15](index=15&type=chunk) [About Nuveen Churchill Direct Lending Corp.](index=4&type=section&id=About%20Nuveen%20Churchill%20Direct%20Lending%20Corp.) Nuveen Churchill Direct Lending Corp. (NCDL) is a specialty finance company regulated as a business development company, primarily investing in senior secured loans to private equity-owned U.S. middle market companies, externally managed by affiliates of Nuveen, LLC and TIAA - NCDL is a specialty finance company focused on investing in senior secured loans to private equity-owned U.S. middle market companies[16](index=16&type=chunk) - NCDL is regulated as a business development company (BDC) and is externally managed by Churchill DLC Advisor LLC and Churchill Asset Management LLC, both affiliates of Nuveen, LLC and TIAA[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding NCDL's future performance and financial condition, which are subject to substantial risks and uncertainties, cautioning investors not to place undue reliance on these statements - The document includes forward-looking statements about NCDL's business and investments, which involve substantial risks and uncertainties[17](index=17&type=chunk) - Investors should not place undue reliance on these statements, as actual results could differ materially due to various factors, including changes in financial markets, interest rates, and economic trends[17](index=17&type=chunk) [Contacts](index=4&type=section&id=Contacts) Contact information for investor relations and media inquiries is provided - Investor Relations can be reached at NCDL-IR@churchillam.com. Media inquiries can be directed to Madison Hanlon at Prosek Partners (Pro-churchill@prosek.com)[18](index=18&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The consolidated balance sheet shows a slight decrease in total net assets from December 31, 2024, to March 31, 2025, primarily driven by changes in paid-in-capital and total distributable earnings (loss), with total assets and liabilities both increasing | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total Assets | $2,172,584 | $2,143,725 | | Total Liabilities | $1,252,564 | $1,173,405 | | Total Net Assets | $920,020 | $970,320 | | Net Asset Value per Share | $17.96 | $18.18 | - Investments at fair value remained stable at approximately **$2.08 billion**. Debt (net of deferred financing costs and discount) increased from **$1,108,261 thousand** to **$1,199,570 thousand**[19](index=19&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statement of operations for Q1 2025 shows an increase in total investment income but a decrease in net investment income compared to Q1 2024, primarily due to higher net expenses, leading to a decrease in net assets from operations despite a net realized gain | Metric (in thousands) | Q1 2025 (3 months ended Mar 31) | Q1 2024 (3 months ended Mar 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Total Investment Income | $53,586 | $51,595 | | Net Expenses (after waivers) | $26,134 | $21,862 | | Net Investment Income | $27,452 | $29,733 | | Net Realized Gain (Loss) | $1,103 | $(3,625) | | Net Change in Unrealized Gain (Loss)| $(13,534) | $3,916 | | Net Increase (Decrease) in Net Assets | $15,021 | $30,024 | | Per Share Data | Q1 2025 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | Net Investment Income per Share | $0.53 | $0.56 | | Net Increase (Decrease) in Net Assets per Share | $0.29 | $0.57 | [Portfolio and Investment Activity (Unaudited)](index=7&type=section&id=Portfolio%20and%20Investment%20Activity%20%28Unaudited%29) The detailed investment activity for Q1 2025 shows a decrease in new gross commitments compared to Q1 2024, with a significant increase in investments sold or repaid, and a decrease in the weighted average annual interest rate on new debt investments | Metric (in thousands) | Q1 2025 (3 months ended Mar 31) | Q1 2024 (3 months ended Mar 31) | | :-------------------------------- | :------------------------------ | :------------------------------ | | New Gross Commitments at Par | $166,239 | $206,815 | | Net Investments Funded | $153,019 | $204,330 | | Investments Sold or Repaid | $(148,350) | $(54,896) | | Net Funded Investment Activity | $4,669 | $149,434 | | New Investment Activity | Q1 2025 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | Weighted Average Annual Interest Rate on New Debt | 9.38% | 10.27% | | Weighted Average Spread on New Floating Rate Debt | 4.81% | 4.87% | - The number of portfolio companies remained at **210** at the end of Q1 2025, with **12 new companies** added and **12 exited** during the quarter[22](index=22&type=chunk)

Financial Performance - For the three months ended March 31, 2025, new gross commitments at par totaled $166.239 million, a decrease from $206.815 million in the same period of 2024[351]. - Net investments funded were $153.019 million in Q1 2025, down from $204.330 million in Q1 2024[351]. - Investment income increased to $53.6 million for the three months ended March 31, 2025, up from $51.6 million for the same period in 2024, primarily due to increased investment activity[368]. - Total expenses before waived incentive fees rose to $28.4 million for the three months ended March 31, 2025, from $26.3 million in the same period of 2024[369]. - Interest and debt financing expenses increased to $20.6 million for the three months ended March 31, 2025, compared to $16.9 million for the same period in 2024, driven by higher average daily borrowings[370]. - Net realized gain on investments was $1.1 million for the three months ended March 31, 2025, compared to a net realized loss of $(3.6) million for the same period in 2024[373]. - A net change in unrealized loss of $(13.6) million was recorded for the three months ended March 31, 2025, compared to a net change in unrealized gain of $4.1 million for the same period in 2024[374]. Portfolio and Investment Details - The portfolio companies at the beginning of the period numbered 210, with 12 new portfolio companies added and 12 exited, maintaining the total at 210 by the end of the period[351]. - The weighted average reported annual EBITDA for the portfolio was $76.3 million[352]. - The weighted average Internal Risk Rating of the investment portfolio was 4.14 as of March 31, 2025, compared to 4.13 as of December 31, 2024[365]. - The largest portfolio company investment was valued at $31,125, accounting for 1.50% of the total fair value as of March 31, 2025[354]. - The healthcare and pharmaceuticals sector represented 16.46% of the portfolio's fair value as of March 31, 2025, up from 14.47% as of December 31, 2024[356]. - As of March 31, 2025, total investments amounted to $2,077,570, with a fair value of $2,077,570, compared to $2,081,379 as of December 31, 2024[354]. Debt and Financing - Total gross commitments at par included $151.995 million in first-lien debt and $13.230 million in subordinated debt for Q1 2025[351]. - As of March 31, 2025, total debt obligations amount to $1,202.3 million, with significant portions due beyond five years[438]. - The company established an ATM Program on March 10, 2025, allowing for the sale of up to $200 million in common stock[385]. - The Company entered into a share repurchase plan on March 5, 2024, allowing for the purchase of up to $99.3 million of its common stock in the open market[394]. - The 2022 Debt Securitization raised $448.3 million, with various classes of notes issued, including $199.0 million of AAA Class A-1 2022 Notes[412][413]. - The Company completed a $298.1 million term debt securitization on December 7, 2023, known as the 2023 Debt Securitization[423]. - The Company issued $300 million in aggregate principal amount of 6.650% Notes due 2030 on January 22, 2025, with interest payable semi-annually[435]. Interest Rates and Risk Management - The weighted average annual interest rate on new debt investments at par was 9.38% in Q1 2025, compared to 10.27% in Q1 2024[351]. - The percentage of debt investments bearing a floating rate was 94.55% as of March 31, 2025, slightly down from 94.68% as of December 31, 2024[358]. - The Federal Reserve held interest rates steady in Q1 2025 after three consecutive rate reductions in Q3 and Q4 2024, with potential future rate cuts uncertain[469]. - The company is subject to interest rate risk, affecting net investment income based on the difference between investment and borrowing rates[468]. - The company has entered into a fixed-to-floating interest rate swap to align the interest rates of liabilities with the investment portfolio[470]. Shareholder Returns - The Board declared a regular dividend of $0.45 per share payable on or around July 28, 2025, to shareholders of record as of June 30, 2025[464]. - As of March 31, 2025, a total of 4,113,398 shares have been repurchased under the Company 10b5-1 Plan, with a total value of approximately $70.585 million[397]. - BofA Securities, Inc. repurchased an additional 935,888 shares of common stock for approximately $14 million from April 1, 2025, through May 6, 2025[465]. Regulatory and Compliance - The company is regulated as a business development company (BDC) and must invest at least 70% of total assets in qualifying assets[346]. - The SEC granted an exemptive order on October 14, 2022, allowing the company to complete follow-on investments in existing portfolio companies with certain affiliates[444]. - The company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, with no uncertain tax positions as of March 31, 2025[462]. - The company’s critical accounting policies include the valuation of portfolio investments, revenue recognition, and U.S. federal income taxes[447].

Core Viewpoint - Nuveen Churchill Direct Lending (NCDL) is a notable player in the Business Development Company (BDC) sector, although less recognized compared to Blackstone Secured Lending Fund (BXSL) and Morgan Stanley Direct Lending Fund (MSDL) [1] Company Insights - NCDL is positioned as a viable investment option within the BDC landscape, emphasizing its potential for steady income through dividend investing [1] - The article highlights the author's extensive experience in M&A and business valuation, indicating a strong foundation for evaluating companies like NCDL [1] Investment Philosophy - The focus on dividend investing is presented as an accessible path to financial freedom, with the author sharing insights to help others navigate this investment strategy [1] - The article aims to demystify the process of dividend investing, making it more approachable for individuals seeking to build long-term wealth [1]

Core Insights - Nuveen Churchill Direct Lending Corp (NYSE: NCDL) reported a regular dividend yield of 10.45% and has a net investment yield [1] Group 1 - The article discusses the Q4 results for NCDL and maintains a Buy rating for the stock [1] - The company is highlighted for its performance in the Business Development Company (BDC) sector [1] - The article suggests exploring various investment tools for navigating BDC, Closed-End Funds (CEF), Open-End Funds (OEF), preferred stocks, and baby bonds [1]

Group 1 - Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) is one of six Business Development Companies (BDCs) currently held in the portfolio alongside other high-quality names such as Morgan Stanley Direct Lending Fund (MSDL) [1] - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - Berzins has been involved in policy-level work, including the development of national State-Owned Enterprise (SOE) financing guidelines and frameworks for channeling private capital into affordable housing [1] - Berzins holds a CFA Charter and an ESG investing certificate, and has interned at the Chicago Board of Trade while residing in Latvia [1] - He is actively engaged in thought-leadership activities to support the development of pan-Baltic capital markets [1]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated a return on equity (ROE) of 12.4% on net investment income and paid total distributions of $2.10 per share, resulting in an attractive yield of 11.6% based on year-end net asset value [8][9] - Net investment income for Q4 2024 was $0.56 per share, which fully covered the regular distribution and previously declared special dividend totaling $0.55 per share [10][29] - The net asset value per share increased to $18.18 at December 31, 2024, up from $18.15 at the end of Q3 2024 [12][33] Business Line Data and Key Metrics Changes - Investment activity during Q4 was primarily focused on senior secured first lien loans, with new originations totaling $163 million for the quarter [11][18] - The investment portfolio had a fair value of $2.08 billion at the end of Q4, compared to $2.05 billion at the end of Q3 [34] - First lien debt represented over 90% of the fair value of the overall portfolio, maintaining a steady focus on traditional middle market senior loans [19][41] Market Data and Key Metrics Changes - The company noted that credit quality remains strong, with only 1 portfolio company on nonaccrual status, representing 0.1% of the total portfolio at fair value [9][24] - The direct lending market accounted for approximately 90% of middle market new leveraged buyout (LBO) volume, indicating a strong position in the core middle market [14][70] Company Strategy and Development Direction - The company aims to continue focusing on the core middle market direct lending space, leveraging long-standing relationships and extensive commitments to identify attractive investment opportunities [12][26] - The company plans to optimize its capital structure and balance sheet, having issued $300 million of unsecured notes in January 2025 [9][47] - The strategy includes a supplemental dividend program to distribute excess earnings while retaining capital to grow net asset value [31][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning as a leader in the core middle market direct lending space, despite competitive dynamics in the private credit market [12][13] - The economic environment is viewed as healthy and resilient, with expectations of increased M&A activity in 2025 [15][26] - Management is actively monitoring potential impacts from policy changes but does not expect a material impact on performance due to the diversification of the portfolio [16][26] Other Important Information - The company had a record year of investment activity in 2024, investing over $13 billion across approximately 400 transactions [18][34] - The company’s share repurchase program has utilized approximately $57 million, with $42 million remaining [51][52] - The final lockup release for pre-IPO shareholders occurred on January 24, 2025, increasing the number of shares available for trading [52] Q&A Session Summary Question: Details on supplemental dividends after the last $0.10 dividend - Management indicated that approximately 50% of excess earnings would form the basis of the supplemental dividend, focusing on distributing most earnings while retaining some capital for reinvestment [58] Question: Expected repricing impact on overall yield - Management estimated that around 70-75% of the portfolio has already repriced, with limited further repricing expected [62][64] Question: Anticipated changes in PIK income ratio for 2025 - Management expects PIK income to remain in the low single-digit percentage range, primarily driven by junior capital positions [66][69] Question: Sustainability of direct lenders' dominance in the middle market - Management believes direct lenders will continue to dominate the core middle market due to their ability to deliver full financing commitments quickly and maintain deep relationships [72][74]

分组1 - Nuveen Churchill Direct Lending Corp. reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.58 per share, and down from $0.66 per share a year ago, representing an earnings surprise of -3.45% [1] - The company posted revenues of $57.08 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.64%, compared to year-ago revenues of $48.95 million [2] - The stock has gained approximately 5.8% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.59 on revenues of $63.2 million, and for the current fiscal year, it is $2.04 on revenues of $258.5 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Full Year and Fourth Quarter 2024 Results Announcement](index=1&type=section&id=Nuveen%20Churchill%20Direct%20Lending%20Corp.%20Announces%20Full%20Year%20and%20Fourth%20Quarter%202024%20Results) NCDL reported strong Q4 2024 results with increased NAV and net investment income, alongside record originations and a strategic capital structure optimization for 2025 [Q4 2024 Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20for%20the%20Quarter%20Ended%20December%2031%2C%202024) Nuveen Churchill Direct Lending Corp. (NCDL) reported strong Q4 2024 results, with net investment income of $0.56 per share and a net asset value (NAV) increase to $18.18 per share Financial Highlights for Q4 2024 | Metric | Value | | :--- | :--- | | Net Investment Income per Share | $0.56 | | Net Realized & Unrealized Loss per Share | ($0.02) | | Net Increase in Net Assets per Share | $0.54 | | Net Asset Value (NAV) per Share | $18.18 | - Management noted 2024 was an active year for originations, with over **$950 million** in new investments, a YoY increase of over **40%**[3](index=3&type=chunk) - For the full year 2024, the company delivered a return on equity exceeding **12%**, with distributions fully covered by net investment income[3](index=3&type=chunk) - The company strengthened its balance sheet by issuing **$300 million** of unsecured notes in January 2025, ensuring ample liquidity and no near-term debt maturities[3](index=3&type=chunk) [Distribution Declaration](index=1&type=section&id=Distribution%20Declaration) The Board of Directors has declared a regular quarterly distribution of $0.45 per share for the first quarter of 2025, in addition to a final special distribution of $0.10 per share - A first quarter 2025 regular distribution of **$0.45 per share** was declared, payable on April 28, 2025, to shareholders of record as of March 31, 2025[4](index=4&type=chunk) - The final of four special distributions of **$0.10 per share** will be paid on April 28, 2025[4](index=4&type=chunk) [Portfolio Analysis](index=1&type=section&id=PORTFOLIO%20ANALYSIS) The investment portfolio expanded to $2.08 billion, maintaining a defensive first-lien debt focus, while significantly improving asset quality with reduced non-accrual investments [Portfolio Composition and Quality](index=1&type=section&id=PORTFOLIO%20COMPOSITION) As of December 31, 2024, the investment portfolio's fair value grew to $2.08 billion across 210 companies, maintaining a defensive position with 90.6% in first-lien debt Portfolio Metrics | Metric | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | Portfolio Fair Value | $2.08 billion | $2.05 billion | | Portfolio Companies | 210 | 202 | | Industries | 27 | 26 | Investment Type Composition | Investment Type | % of Portfolio (Fair Value) - Dec 31, 2024 | % of Portfolio (Fair Value) - Sep 30, 2024 | | :--- | :--- | :--- | | First-Lien Debt | 90.6% | 90.1% | | Subordinated Debt | 7.7% | 8.3% | | Equity Investments | 1.8% | 1.7% | - Portfolio quality improved, with non-accrual investments decreasing from three companies (**1.4% at cost**) in Q3 to one company (**0.4% at cost**) in Q4 2024. No new portfolio companies were placed on non-accrual status during the quarter[8](index=8&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=PORTFOLIO%20AND%20INVESTMENT%20ACTIVITY) For the full year 2024, NCDL significantly increased its investment pace, funding $863.6 million, a substantial rise from $589.0 million in 2023 Full Year Investment Activity | Full Year Activity | 2024 | 2023 | | :--- | :--- | :--- | | Funded Investments | $863.6 million | $589.0 million | | Proceeds from Repayments/Sales | $430.0 million | $146.4 million | Quarterly Investment Activity | Quarterly Activity | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | | Funded Investments | $151.1 million | $203.2 million | | Proceeds from Repayments/Sales | $119.5 million | $155.6 million | [Results of Operations](index=2&type=section&id=RESULTS%20OF%20OPERATIONS%20FOR%20THE%20FULL%20YEAR%20AND%20QUARTER%20ENDED%20DECEMBER%2031%2C%202024) Investment income increased due to portfolio growth, while expenses rose from higher interest and management fees, partially offset by net unrealized gains [Investment Income](index=2&type=section&id=Investment%20Income) Full-year 2024 investment income grew to $224.0 million from $161.8 million in 2023, driven by a larger investment portfolio, despite a decrease in weighted average yield - Full-year 2024 investment income increased to **$224.0 million** from **$161.8 million** in 2023, primarily due to increased deployed capital[11](index=11&type=chunk) - The weighted average yield of debt investments decreased to **10.33%** as of Dec 31, 2024, from **11.72%** a year prior, due to spread tightening and a decline in SOFR[11](index=11&type=chunk) - Q4 2024 investment income was **$57.1 million**, up from **$48.9 million** in Q4 2023[12](index=12&type=chunk) [Net Expenses](index=2&type=section&id=Net%20Expenses) Net expenses for 2024 rose to $101.1 million from $77.9 million in 2023, mainly due to higher interest expenses and management fees, with incentive fees waived through Q1 2025 - Full-year 2024 net expenses increased to **$101.1 million** from **$77.9 million** in 2023, driven by higher interest, debt financing expenses, and management fees[13](index=13&type=chunk) - The Adviser is waiving incentive fees on income and capital gains for the five quarters from March 31, 2024, through March 31, 2025[13](index=13&type=chunk) [Net Realized and Unrealized Gains/Losses](index=3&type=section&id=Net%20Realized%20Gain%20%28Loss%29%20and%20Net%20Change%20in%20Unrealized%20Gain%20%28Loss%29%20on%20Investments) For the full year 2024, the company experienced a net realized loss of $(13.2) million, largely offset by a net unrealized gain of $7.3 million from market spread tightening Full Year Performance | Full Year Performance | 2024 | 2023 | | :--- | :--- | :--- | | Net Realized Loss | $(13.2) million | $(8.0) million | | Net Change in Unrealized Gain | $7.3 million | $0.7 million | Fourth Quarter Performance | Fourth Quarter Performance | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Realized Loss | $(11.7) million | $(1.5) million | | Net Change in Unrealized Gain | $11.3 million | $4.5 million | [Financial Condition and Liquidity](index=3&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) NCDL maintains robust liquidity with $43.3 million cash and $206.3 million available credit, supporting a debt-to-equity ratio of 1.15x [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital) As of December 31, 2024, NCDL maintained a solid liquidity position with $43.3 million in cash and approximately $206.3 million available for borrowing under its credit facilities Liquidity Metrics (as of Dec 31, 2024) | Liquidity Metric (as of Dec 31, 2024) | Value | | :--- | :--- | | Cash and Cash Equivalents | $43.3 million | | Total Debt Outstanding | $1.1 billion | | Available Borrowing Capacity | $206.3 million | | Debt to Equity Ratio | 1.15x | - The debt-to-equity ratio increased to **1.15x** at year-end, compared to **1.11x** at the end of Q3 2024[17](index=17&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) Total assets and net assets grew significantly, reflecting increased investment income and a substantial rise in new gross commitments for the year [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20ASSETS%20AND%20LIABILITIES) As of December 31, 2024, total assets increased to $2.14 billion from $1.73 billion a year prior, driven by growth in the investment portfolio, resulting in a NAV per share of $18.18 Balance Sheet (in thousands) | Balance Sheet (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Investments, at fair value | $2,081,379 | $1,641,686 | | Total Assets | $2,143,725 | $1,730,864 | | Total Liabilities | $1,173,405 | $982,979 | | Total Net Assets | $970,320 | $747,885 | | Net Asset Value per Share | $18.18 | $18.13 | [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the year ended December 31, 2024, NCDL reported total investment income of $224.0 million and net investment income of $122.4 million, resulting in a net increase in net assets from operations of $116.3 million Income Statement (Year Ended Dec 31, in thousands) | Income Statement (Year Ended Dec 31, in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Investment Income | $224,040 | $161,756 | | Net Expenses | $101,101 | $77,744 | | Net Investment Income | $122,388 | $84,006 | | Total Net Realized & Unrealized Loss | $(6,065) | $(8,068) | | Net Increase in Net Assets from Operations | $116,323 | $75,938 | | Net Investment Income per Share | $2.26 | $2.52 | | Net Increase in Net Assets per Share | $2.15 | $2.27 | [Detailed Portfolio and Investment Activity](index=9&type=section&id=DETAILED%20PORTFOLIO%20AND%20INVESTMENT%20ACTIVITY) In 2024, NCDL's new gross commitments surged to $955.3 million, with first-lien debt comprising the vast majority, and the number of portfolio companies growing to 210 Full Year Investment Activity | Full Year Investment Activity | 2024 | 2023 | | :--- | :--- | :--- | | New Gross Commitments at Par | $955.3 million | $670.6 million | | Net Funded Investment Activity | $433.6 million | $442.6 million | | Number of New Portfolio Companies | 68 | 45 | | Portfolio Companies, End of Period | 210 | 179 | | W.A. Interest Rate on New Debt | 10.11% | 11.50% | Quarterly Investment Activity | Quarterly Investment Activity | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | | New Gross Commitments at Par | $162.7 million | $225.6 million | | Net Funded Investment Activity | $31.6 million | $47.5 million | | Number of New Portfolio Companies | 16 | 18 | | W.A. Interest Rate on New Debt | 8.96% | 9.63% |

Financing and Capital Structure - The company has raised approximately $906.4 million from private offerings of its common stock since March 2020[85]. - The company currently has two special purpose vehicle asset credit facilities and a revolving credit facility, with plans to potentially enter additional credit facilities in the future[77]. - The company expects interest expense to increase as leverage is increased over time, subject to regulatory limits[76]. - The company may not issue common stock below NAV per share without shareholder approval, which was granted until December 15, 2024[88]. - The company must maintain at least 70% of its total assets in qualifying assets as defined by the 1940 Act[91]. - The company must maintain an asset coverage ratio of at least 150% for issuing senior securities, which includes total assets less total liabilities divided by total indebtedness represented by senior securities plus preferred stock[96]. - The company is permitted to co-invest with affiliates under certain conditions, which enhances investment opportunities and diversification[99]. - The SEC granted the company a permanent amendment to allow follow-on investments in existing portfolio companies with certain private fund affiliates[100]. Regulatory Compliance - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes certain restrictions on transactions and requires a majority of independent directors[86]. - The company is subject to restrictions on the issuance of warrants, options, or rights under the 1940 Act, with a limit that the amount of voting securities resulting from such exercises cannot exceed 25% of the total outstanding shares[95]. - The company has adopted a code of ethics that restricts personal securities transactions by its officers and employees, ensuring compliance with federal securities laws[97]. - The company is required to provide annual reports containing audited financial statements and comply with periodic reporting under the Exchange Act[115]. - To qualify as a Regulated Investment Company (RIC), the company must distribute at least 90% of its investment company taxable income to shareholders[118]. - The company will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless it meets specific distribution requirements[120]. - The company must derive at least 90% of gross income from specific sources to maintain RIC status[126]. - The company must diversify its holdings to meet regulatory requirements, limiting investments in any single issuer to no more than 25% of total assets[126]. Investment Strategy and Risk Management - The company assesses material environmental, social, and governance (ESG) factors as part of its investment process to create and protect value[79]. - The company utilizes a proprietary ESG ratings template to evaluate potential investments and monitor portfolio companies post-investment[81]. - The company operates in a competitive market for credit investments, facing competition from larger firms with greater resources[83]. - The company does not have any employees and relies on the expertise of senior investment professionals from its sub-adviser, Churchill[84]. - The company may need to sell assets or raise additional capital to satisfy the Annual Distribution Requirement, which could be disadvantageous[122]. - The company may experience valuation risk due to investments in illiquid debt and equity securities of private companies[532]. - The company is subject to interest rate risk, with potential adverse effects on net investment income due to fluctuations in interest rates[533]. - The Federal Reserve's recent rate cuts may impact the company's cost of funds and net investment income[534]. - A hypothetical increase of 300 basis points in interest rates could result in a net income increase of $25,474,000[538]. - As of December 31, 2024, approximately 5.32% of the company's debt investments bear interest at a fixed rate, while 94.68% bear interest at a floating rate[535]. - The company has a significant portion of its floating rate debt investments (99.09%) subject to interest rate floors[535]. Taxation and Financial Implications - If the company fails to qualify as a RIC, it would be subject to U.S. federal income tax at corporate rates on all taxable income[128].