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]

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 Performance - The company's net investment income per share was $0.57 in Q4 2024, compared to $0.66 in Q3 2024[23] - Earnings per share was $0.58 in Q4 2024, compared to $0.60 in Q3 2024[23] - Net asset value per share was $20.81 as of Q4 2024, slightly down from $20.83 in Q3 2024[23] - The company declared dividends of $0.60 per share for Q4 2024, including a regular dividend of $0.50 and a special dividend of $0.10[23] Portfolio Composition and Activity - The total fair value of the portfolio was approximately $3.8 billion, invested in 208 portfolio companies across 33 industries[23] - The weighted average yield at amortized cost of debt investments was 10.4%[23] - The company committed $188.3 million to new investments during Q4 2024, resulting in a net funded portfolio increase of $143.7 million[23] - Approximately 100% of new investment commitments were in first lien senior secured loans[23] - 96.5% of the portfolio consists of first lien investments[16] - 99.6% of the portfolio consists of floating rate loans[16] Debt and Liquidity - The outstanding debt balance was $1,983.4 million, with 53% unsecured debt; the quarter-end debt-to-equity ratio was 1.08x[23] - The company had total liquidity of $1,035.2 million, including unrestricted cash and cash equivalents of $70.4 million and undrawn, committed debt capacity of $964.8 million[23]

Investment Portfolio - As of September 30, 2022, the company had investments in 139 portfolio companies across 29 industries, with over 99.9% of its debt portfolio invested in floating interest rate debt[238]. - The company primarily generates revenue from interest income on debt investments, along with income from dividends, capital gains, and various fees[230]. - The company’s investment objective is to achieve attractive risk-adjusted returns primarily through current income and, to a lesser extent, capital appreciation[228]. - As of September 30, 2022, 77% of the company's investments were loans supporting LBOs and acquisitions by private equity sponsors[240]. - The weighted average EBITDA of portfolio companies was approximately $120 million, with a net leverage of 6.1x and a loan-to-value ratio of 45%[242]. - The average position size of investments was approximately $19.8 million, with the top ten portfolio companies representing 22.9% of total fair value[242]. - The company had 139 portfolio companies as of September 30, 2022, compared to 77 as of September 30, 2021[250]. Financial Performance - Total investment income increased from $31.7 million for the three months ended September 30, 2021, to $62.7 million for the same period in 2022, driven by capital deployment[250]. - For the nine months ended September 30, 2022, net investment income was $89.7 million, up from $44.9 million in the same period in 2021[249]. - Net realized gain on investments for the nine months ended September 30, 2022, was $556, compared to $120 for the same period in 2021, reflecting a 363% increase[256]. - The net change in unrealized depreciation on investments for the nine months ended September 30, 2022, was $61,869, compared to an unrealized appreciation of $11,824 in 2021[257]. Debt and Financing - As of September 30, 2022, total outstanding debt obligations amounted to $1,524.6 million, with an unused portion of $984.3 million[265]. - The CIBC Subscription Facility had an outstanding principal of $220.4 million, while the BNP Funding Facility had $322.0 million[265]. - The total aggregate principal of debt obligations increased from $1,975.0 million as of December 31, 2021, to $2,510.0 million as of September 30, 2022[265]. - The company had borrowings denominated in Euros (EUR) amounting to €238 as of September 30, 2022, which was a new development compared to December 31, 2021[265]. Risk Management - The company is exposed to risks from potential disruptions in operations due to economic conditions, including inflationary environments and supply chain interruptions[232]. - Approximately 82% of debt investments had one or more financial covenants, indicating a strong risk management approach[242]. - The company reported no realized losses from loan defaults since inception through September 30, 2022[242]. - A hypothetical increase of 300 basis points in interest rates would result in an annualized net income increase of $59.0 million[274]. - The company emphasizes extensive due diligence in its investment strategy to achieve compelling risk-adjusted returns[266]. Expenses and Distributions - For the three months ended September 30, 2022, net expenses were $28,905, compared to $12,909 for the same period in 2021, representing a 123% increase[252]. - Total expenses for the nine months ended September 30, 2022, were $81,927, up from $36,970 in 2021, indicating a 121% increase[252]. - Total distributions declared for the nine months ended September 30, 2022, amounted to $86,667, with a per share distribution of $1.42[263]. - The company has not accrued any U.S. federal excise tax for the nine months ended September 30, 2022, compared to $5 accrued in 2021[255]. - The company intends to distribute at least 90% of its investment company taxable income to maintain its tax treatment as a RIC[255]. Regulatory Compliance - The company has elected to be regulated as a Business Development Company (BDC) and intends to comply with requirements to qualify as a Regulated Investment Company (RIC)[227]. - As of December 31, 2021, approximately 99.3% of the debt portfolio had an interest rate floor denoted in LIBOR, with a weighted average interest rate floor of approximately 0.9%[239]. - The company is permitted to co-invest with affiliates under certain conditions, ensuring that transactions are fair and consistent with the interests of its stockholders[231]. - The company did not engage in interest rate hedging activities during the periods covered by the report[274]. Capital Commitments - Aggregate capital commitments received as of September 30, 2022, totaled approximately $1,624.0 million, with a one-year extension of the Investment Period until December 23, 2023[261]. - Total shares issued and proceeds received related to capital drawdowns for the nine months ended September 30, 2022, were 7,451,363 shares, amounting to $154.7 million[262]. - Approximately $45.3 million of new/add-on investments were closed or approved from September 30, 2022, to November 8, 2022, with $43.0 million in first lien senior secured loans[266]. Market Focus - The company remains focused on investing in companies with strong management teams and sustainable business models despite market volatility[266]. - The company’s debt investments typically have a stated term of five to eight years and bear interest at a floating rate based on benchmarks like LIBOR or SOFR[229]. - 100% of the income-producing senior secured debt investments were at floating rates as of September 30, 2022[273].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 814-01332 Morgan Stanley Direct Len ...

Investment Portfolio - As of March 31, 2022, the company had investments in 109 portfolio companies across 27 industries, with over 99.9% of the debt portfolio invested in floating interest rate debt[214] - The company’s investment objective is to achieve attractive risk-adjusted returns primarily through current income and, to a lesser extent, capital appreciation[203] - As of March 31, 2022, 77% of the company's investments were loans supporting LBOs and acquisitions by private equity sponsors[216] - The investment portfolio at fair value grew from $948 million as of March 31, 2021 to $2.534 billion as of March 31, 2022[223] - The company is focused on investing in companies with strong management teams, substantial free cash flow, and sustainable business models despite the impact of the Coronavirus pandemic[250] - The company plans to continue investing primarily in illiquid debt and equity securities of portfolio companies[254] Financial Performance - The total investment income increased from $17,345 in Q1 2021 to $44,304 in Q1 2022, driven by capital deployment[222][223] - Net investment income after taxes for Q1 2022 was $26,514, up from $10,059 in Q1 2021[222] - The weighted average yield on debt investments was 7.2% as of March 31, 2022, compared to 7.4% in the same period of 2021[217][222] - The net change in unrealized appreciation for Q1 2022 was a decrease of $4,342, contrasting with an increase of $4,642 in Q1 2021[222] - The net change in unrealized loss on investments for the three months ended March 31, 2022, was $4.342 million, compared to a net change in unrealized gain of $4.642 million for the same period in 2021[231] - For the three months ended March 31, 2022, the net realized gain on investments was $0.1 million, compared to $0 million for the same period in 2021, primarily driven by the sale of debt and equity investments[230] Debt and Financing - The total outstanding debt as of March 31, 2022, was $1.362 billion, with an unused capacity of $952.65 million[238] - The company declared a distribution of $0.48 per share for the three months ended March 31, 2022, resulting in a total distribution amount of $27.455 million[235] - Under the Truist Credit Facility, the company borrowed $130.5 million and repaid $415.0 million during the three months ended March 31, 2022[247] - The company issued $425 million in aggregate principal amount of 4.500% notes due 2027 on February 11, 2022[248] - The CIBC Subscription Facility was permanently reduced to $315 million effective January 18, 2022, from $400 million[239] - The BNP Funding Facility had an outstanding amount of $435.5 million as of March 31, 2022, with available capacity of $164.5 million[244] - As of March 31, 2022, the company was in compliance with all covenants and other requirements of each of the credit facilities and the 2027 Notes[249] Market Conditions and Risks - The ongoing Coronavirus pandemic has created market stress that could affect the company’s portfolio companies, although it believes it is well positioned to manage the current environment[207] - The company is subject to financial market risks, including valuation risk, market risk, and interest rate risk[253] - The current market environment is viewed as offering opportunities for compelling risk-adjusted returns[250] - The company’s investment pace will depend on market conditions, deal flow, and the ongoing impact of the Coronavirus[250] Interest Rates and Expenses - The weighted average total yield of investments in debt securities at amortized cost was 7.2% as of March 31, 2022[214] - The company expects general and administrative expenses to be stable or decline as a percentage of total assets during periods of asset growth[213] - Total expenses increased from $8,745 in Q1 2021 to $22,388 in Q1 2022, primarily due to higher interest and financing expenses[225] - Interest and other financing expenses rose from $2,758 in Q1 2021 to $10,349 in Q1 2022, attributed to increased average borrowings[227] - The company expects that a 300 basis point increase in interest rates would result in an annualized net income increase of $44,046,000[259] - 100% of the income-producing senior secured debt investments were at floating rates as of March 31, 2022[257] - The company did not engage in interest rate hedging activities during the periods covered by the report[259] Regulatory and Compliance - The company has elected to be regulated as a Business Development Company (BDC) under the 1940 Act and intends to qualify as a Regulated Investment Company (RIC) for U.S. federal income tax purposes[202] - The company is permitted to co-invest with affiliates under certain conditions as per the SEC's exemptive relief granted on September 18, 2020[206] - Approximately 83% of debt investments had one or more financial covenants as of March 31, 2022[216] - The company had 109 portfolio companies as of March 31, 2022, compared to 53 in the previous year[217]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-01332 Morgan Stanley Direct Lending Fund (Exact name of registrant as specified in charter) Delaware (State or other jurisdiction of incorporation ...

Part I. Financial Information [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2021, including balance sheets, operations, cash flows, investments, and notes [Report of Independent Registered Public Accounting Firm](index=4&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP reviewed the interim financial information, finding no material modifications needed for GAAP conformity - The independent auditors, Deloitte & Touche LLP, are not aware of any material modifications that should be made for the interim financial information to be in conformity with U.S. Generally Accepted Accounting Principles (GAAP)[11](index=11&type=chunk) [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) This statement provides a summary of the company's financial position, detailing assets, liabilities, and net assets as of March 31, 2021, and December 31, 2020 Consolidated Balance Sheet Summary (in thousands) | Metric | March 31, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$1,023,895** | **$656,806** | | Total Investments, at fair value | $947,979 | $636,981 | | Cash | $64,154 | $11,263 | | **Total Liabilities** | **$633,682** | **$355,186** | | Debt | $592,350 | $333,850 | | **Total Net Assets** | **$390,213** | **$301,620** | | **Net Asset Value per share** | **$20.49** | **$20.08** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's financial performance, including investment income, expenses, and net increase in net assets for the three months ended March 31, 2021 and 2020 Consolidated Statement of Operations Summary (in thousands) | Metric | Three months ended Mar 31, 2021 | Three months ended Mar 31, 2020 | | :--- | :--- | :--- | | **Total Investment Income** | **$17,345** | **$923** | | Interest Income | $14,956 | $917 | | **Net Expenses** | **$7,281** | **$814** | | Interest Expense | $2,758 | $419 | | Management & Incentive Fees | $5,085 | $66 | | **Net Investment Income** | **$10,059** | **$109** | | Net change in unrealized appreciation (depreciation) | $4,642 | $(3,790) | | **Net Increase (Decrease) in Net Assets** | **$14,701** | **$(3,681)** | | **Net Earnings Per Share (basic and diluted)** | **$0.87** | **$(1.19)** | [Consolidated Statements of Changes in Net Assets](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) This statement outlines the changes in net assets, driven by operations and capital transactions, for the three months ended March 31, 2021 - For the three months ended March 31, 2021, net assets increased by **$88.6 million**, from **$301.6 million** to **$390.2 million**, driven by a **$14.7 million** increase from operations and a **$73.9 million** net increase from capital transactions[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating and financing activities, showing the net increase in cash for the three months ended March 31, 2021 and 2020 Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Mar 31, 2021 | Three months ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash (used in) operating activities | $(276,456) | $(83,064) | | Net cash provided by financing activities | $329,347 | $217,098 | | **Net increase in cash** | **$52,891** | **$134,034** | | **Cash at end of period** | **$64,154** | **$134,069** | [Consolidated Schedule of Investments](index=9&type=section&id=Consolidated%20Schedule%20of%20Investments) This schedule provides a detailed breakdown of the investment portfolio by type, fair value, and industry diversification as of March 31, 2021 Portfolio Composition by Investment Type (March 31, 2021) | Investment Type | Fair Value (in thousands) | % of Total Investments | | :--- | :--- | :--- | | First Lien Debt | $841,897 | 88.8% | | Second Lien Debt | $96,935 | 10.2% | | Other Securities | $9,147 | 1.0% | | **Total** | **$947,979** | **100.0%** | - The investment portfolio is diversified across **21 industries**, with the largest concentrations by fair value in IT Services (**15.7%**), Insurance (**14.1%**), and Commercial Services & Supplies (**11.3%**) as of March 31, 2021[123](index=123&type=chunk) - As of March 31, 2021, the company had total unfunded loan commitments of **$380.9 million**, primarily consisting of delayed draw term loans and revolvers[48](index=48&type=chunk) [Notes to Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential details on the company's accounting policies, investment adviser fees, fair value measurements, and financial highlights - The company is an externally managed Business Development Company (BDC) focused on lending to U.S. middle-market companies and has elected to be treated as a Regulated Investment Company (RIC) for tax purposes[65](index=65&type=chunk) - The company pays its Investment Adviser a base management fee (**1.0%** of average gross assets, partially waived pre-listing) and a two-part incentive fee based on income and capital gains[104](index=104&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) - As of March 31, 2021, the vast majority of the investment portfolio, valued at **$924.2 million** (**97.5%** of total), is classified as **Level 3**, indicating fair value is determined using significant unobservable inputs[131](index=131&type=chunk)[138](index=138&type=chunk) Financial Highlights (Q1 2021 vs Q1 2020) | Metric | For the three months ended Mar 31, 2021 | For the three months ended Mar 31, 2020 | | :--- | :--- | :--- | | NAV, beginning of period | $20.08 | $20.00 | | Net investment income per share | $0.59 | $0.04 | | Net increase (decrease) in NAV from operations | $0.84 | $(1.70) | | **NAV, end of period** | **$20.49** | **$18.47** | | **Total return based on NAV** | **4.27%** | **(7.65)%** | | Asset coverage ratio | 165.88% | 184.18% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 financial performance, investment strategy, portfolio growth, liquidity, and capital resources, emphasizing post-COVID-19 portfolio construction and sufficient capital - The company's investment objective is to achieve attractive risk-adjusted returns by investing primarily in directly originated senior secured term loans to U.S. middle-market companies backed by financial sponsors[181](index=181&type=chunk) - As of March 31, 2021, the portfolio consisted of investments in **53 companies** across **21 industries**, with **99.8%** of the debt portfolio being floating rate and a weighted average yield of **7.4%**, all performing as expected[198](index=198&type=chunk)[207](index=207&type=chunk) - Liquidity is strong, with **$64.2 million** in cash, approximately **$407.7 million** available under credit facilities, and **$1.12 billion** in uncalled capital commitments as of March 31, 2021[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including valuation and interest rate risks, with a sensitivity analysis on net income impacts from rate changes - The company's primary market risks are valuation risk, due to its portfolio of illiquid securities, and interest rate risk, as it funds floating-rate investments with borrowings[244](index=244&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk) Interest Rate Sensitivity Analysis (Annualized Impact on Net Income) | Basis Point Change | Net Income Impact (in thousands) | | :--- | :--- | | Up 300 bps | $3,492 | | Up 100 bps | $(3,675) | | Down 100 bps | $611 | [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - The company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were **effective** as of March 31, 2021[251](index=251&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the quarter ended March 31, 2021[252](index=252&type=chunk) Part II. Other Information [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, nor is it aware of any threatened against it - As of the filing date, the company is **not a party to any material legal proceedings**[254](index=254&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the Annual Report on Form 10-K were identified during the quarter - The company refers readers to the risk factors disclosed in its Annual Report on Form 10-K, indicating **no material changes** during the quarter[255](index=255&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued Common Stock through its Private Offering during the quarter, conducted as unregistered sales under Section 4(a)(2) and Regulation D - During the quarter, the company issued Common Stock through its Private Offering, which are considered **unregistered securities** under the Securities Act[257](index=257&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with Form 10-Q, including a credit agreement amendment and CEO/CFO certifications required by Sarbanes-Oxley - The exhibit index lists required filings, including an **amendment to the Revolving Credit and Security Agreement** and **CEO/CFO certifications** pursuant to Sarbanes-Oxley[263](index=263&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-01332 Morgan Stanley Direct Lending Fund (Exact name of registrant as specified in charter) Delaware (State or other jurisdiction of incorporation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-01332 Morgan Stanley Direct Lending Fund (Exact name of registrant as specified in charter) Delaware (State or other jurisdiction ...