Financial Performance - For the quarter ended September 30, 2025, net investment income was $30.0 million, or $0.43 per share, compared to $28.7 million, or $0.40 per share for the previous quarter[6]. - Total investment income for the quarter was $61.3 million, an increase from $57.3 million in the prior quarter, driven by a shift to higher-yielding middle market loans[7]. - Net Investment Income for Q3 2025 decreased to $30,046,000 from $37,053,000 in Q3 2024, representing a decline of 19.4%[19]. - Basic and diluted net investment income per common share for Q3 2025 was $0.43, down from $0.52 in Q3 2024, a decrease of 17.3%[19]. - Net Increase in Net Assets Resulting from Operations for the nine months ended September 30, 2025, was $71,738,000, compared to $96,491,000 for the same period in 2024, a decrease of 25.7%[19]. - Interest income from non-controlled, non-affiliated investments increased to $58,898,000 in Q3 2025 from $57,541,000 in Q3 2024, a rise of 2.4%[19]. - Total Expenses for Q3 2025 were $31,327,000, up 13.0% from $27,562,000 in Q3 2024[19]. - Management fees for Q3 2025 were $5,583,000, an increase of 17.2% from $4,764,000 in Q3 2024[19]. Investment Portfolio - The investment portfolio at fair value increased to $2,255.5 million from $2,174.6 million as of June 30, 2025, reflecting a growth of approximately 3.7%[5]. - New private credit and equity co-investment commitments totaled $295.5 million, with net funded investments increasing by $200.1 million during the quarter[6][10]. - The weighted average yield on private middle market loans was 10.7%, slightly down from 10.9% in the previous quarter[10]. - The company focuses on first lien senior secured loans and aims to generate current income and capital appreciation[20]. Debt and Financing - The total debt outstanding at principal rose to $1,153.0 million from $1,054.0 million, resulting in a debt-to-equity ratio of 1.01x, up from 0.91x[5][14]. - The company completed a $200 million private placement of senior unsecured notes on October 15, 2025, to refinance debt and for general corporate purposes[17]. - The company had $322 million of undrawn commitments available on its credit facilities as of September 30, 2025[13]. Credit Quality - The non-accrual rate for debt investments improved to 1.4%, down from 1.6% in the previous quarter, indicating stable credit performance[4][10]. - Total net change in unrealized gains (losses) for Q3 2025 was $(4,983,000), compared to $503,000 in Q3 2024[19].

Investment Portfolio - As of September 30, 2025, the company had investments in 108 portfolio companies with an aggregate fair value of approximately $2,256 million and unfunded commitments of $277 million[261]. - The portfolio consisted of 93.7% first lien senior secured loans, 4.6% subordinated debt, and 1.7% equity investments[261]. - For the three months ended September 30, 2025, gross new investment commitments were $295.5 million, compared to $182.6 million for the same period in 2024, representing a 62% increase[271]. - The weighted average yield for private middle market loans was 10.7% based on fair value as of September 30, 2025[263]. - The average position size based on total investment commitments was $23.8 million as of September 30, 2025[265]. - The fair value of debt investments as of September 30, 2025, was $74.3 million, with 3.4% on the watch list, compared to $69.4 million and 3.5% on the watch list as of December 31, 2024[275]. - As of September 30, 2025, there were five debt investments on non-accrual status, up from two in the same period of 2024[279]. - The largest contributor to unrealized gains for the three months ended September 30, 2025, was SGCP Intermediate, Inc. (SG Credit) with $1.9 million[284]. - The top contributor to unrealized gains for the nine months ended September 30, 2025, was Arborworks Acquisition, LLC, with gains of $3.9 million[287]. Financial Performance - Total investment income for the three months ended September 30, 2025, was $61.3 million, an increase from $57.8 million in the same period of 2024, representing a growth of 6.1%[277]. - Net investment income for the three months ended September 30, 2025, was $30.0 million, down from $37.1 million in 2024, reflecting a decrease of 19.1%[278]. - Operating expenses for the three months ended September 30, 2025, totaled $31.3 million, compared to $20.7 million in 2024, indicating an increase of 51.5%[280]. - The company had a net increase in net assets resulting from operations of $24.6 million for the three months ended September 30, 2025, down from $37.6 million in 2024, a decrease of 34.6%[278]. - Unrealized losses on investments for the three months ended September 30, 2025, were $(14.3) million, compared to $(7.5) million in 2024, showing an increase in losses of 90.7%[282]. - PIK interest included in interest income for the three months ended September 30, 2025, was $2.1 million, compared to $1.5 million in 2024, an increase of 40.0%[279]. Debt and Financing - The company completed a private placement offering of $200 million of senior unsecured notes on October 15, 2025, with net proceeds used to refinance existing debt and for general corporate purposes[255]. - As of September 30, 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[292]. - As of September 30, 2025, the company had $1,078 million borrowed under credit facilities and cash and cash equivalents of $46.1 million[291]. - The asset coverage ratios as of September 30, 2025, and December 31, 2024, were 199% and 238%, respectively, indicating strong compliance with the 150% coverage requirement[289]. - The company has $322 million of undrawn commitments available on its credit facilities as of September 30, 2025[291]. - Total contractual obligations amount to $1,153 million, with $301 million due from the Corporate Credit Facility and $570 million from the Revolving Funding Facility[298]. Interest Rate Sensitivity - As of September 30, 2025, 96% of the company's debt investments had floating interest rates[263]. - Interest rate sensitivity may affect net investment income due to the difference between investment and borrowing rates[316]. - The company experienced a decrease in net interest income due to changes in interest rates, with a decline of $42.1 million when rates decreased by 200 basis points[318]. - When interest rates decreased by 100 basis points, net interest income fell by $21.1 million[318]. - Conversely, an increase of 100 basis points in interest rates would result in a net interest income increase of $21.1 million[318]. - The company may utilize standard hedging instruments such as futures, options, and forward contracts to mitigate interest rate fluctuations[319]. - Hedging activities may protect the company from adverse interest rate changes but could also limit benefits from lower interest rates on fixed-rate investments[319]. Corporate Governance and Fees - The base management fee under the Amended Investment Advisory Agreement is calculated at an annual rate of 1.00%[309]. - The incentive fee on income is subject to a twelve-quarter lookback hurdle rate of 1.50%[309]. Market Risks - The company is subject to financial market risks, including valuation risk and interest rate risk[314]. - The company expects a significant majority of its investments to be classified as Level 3 investments, which require fair value determination[303].

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 ...

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]

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 ...

Investment Portfolio - As of June 30, 2024, the company had investments in 106 portfolio companies with an aggregate fair value of approximately $1,847 million and unfunded commitments of $179 million[219] - The portfolio consisted of 97.8% first lien senior secured loans, 1.2% subordinated debt, and 1.0% equity investments[219] - The average position size based on commitment was $19.3 million as of June 30, 2024[222] - The company had two debt investments on non-accrual status, representing 1.0% and 1.2% of total debt investments at fair value and cost, respectively[224] - The company had $178.5 million in unfunded commitments to provide debt financing to portfolio companies as of June 30, 2024[258] Financial Performance - Total investment income for the three months ended June 30, 2024, was $52.4 million, up from $40.7 million in the same period of 2023, representing a 28.0% increase[236] - Net investment income for the six months ended June 30, 2024, was $58.1 million, compared to $41.0 million for the same period in 2023, reflecting a 41.5% increase[236] - Operating expenses for the three months ended June 30, 2024, totaled $22.6 million, an increase from $19.0 million in the same period of 2023, marking a 18.9% rise[238] - Interest and debt financing expenses for the six months ended June 30, 2024, were $28.9 million, up from $24.5 million in the same period of 2023, indicating a 17.9% increase[238] - The company recorded net unrealized gains of $9.9 million for the six months ended June 30, 2024, compared to $6.6 million for the same period in 2023, a 50.0% increase[240] IPO and Capital Structure - The company closed its initial public offering on May 24, 2024, issuing 6,000,000 shares at a public offering price of $16.63 per share, resulting in net cash proceeds of $93.8 million[214] - A regular dividend of $0.40 per share was paid on July 15, 2024, totaling $28.4 million, with $4.4 million reinvested into the company[216] - The company has an asset coverage ratio of 289% as of June 30, 2024, significantly above the required minimum of 150%[247] - The company has $603 million of undrawn commitments available on its credit facilities as of June 30, 2024[249] - The company increased its revolving funding facility commitment from $455 million to $600 million on April 3, 2024[254] Debt and Financing - As of June 30, 2024, the company had $75 million in senior unsecured notes outstanding and $640 million borrowed under credit facilities, with cash and cash equivalents of $15.1 million[249] - Total contractual obligations related to outstanding indebtedness as of June 30, 2024, amount to $622 million[257] - The interest rate on the corporate credit facility is based on Term SOFR plus an applicable spread of 2.35% per annum[252] - The company does not have any off-balance sheet financings or liabilities other than contractual commitments and legal contingencies[258] Management and Administration - The base management fee is calculated at an annual rate of 1.00% following the IPO, with an incentive fee on income subject to a twelve-quarter lookback hurdle rate of 1.50%[271] - The Company will reimburse the Administrator for costs incurred under the Administration Agreement, which may include office facilities and compensation for officers[273] - The Administrator has engaged Ultimus Fund Solutions, LLC for fund administration and accounting services, with fees constituting reimbursable expenses[274] - The Administration Agreement has been extended through March 15, 2025, allowing for continued administrative support[272] Interest Rate Sensitivity - Interest rate sensitivity indicates that a 200 basis point decrease in interest rates could lead to a net decrease in investment income of $25.4 million[278] - A 100 basis point increase in interest rates could result in a net increase in investment income of $12.6 million[278] - The Company may hedge against interest rate fluctuations using standard hedging instruments, which could limit benefits from lower interest rates[279] - The Company does not include investments on non-accrual status in its interest rate sensitivity calculations[277] Incentive Fees and Waivers - The Advisor implemented waivers of the income incentive fee for three quarters and a portion of the base management fee for one year post-IPO[271] - The Advisor's income incentive fee may be reduced if the portfolio experiences aggregate write-downs or net capital losses during the trailing twelve quarters[271]