Carlyle Secured Lending, Inc. Quarterly Earnings Presentation December 31, 2025 1 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in conjunction with the earnings conference call of the Company held on February 25, 2026 and the Company ...

Core Insights - Volta Finance reported a net return of -0.6% for November 2025, bringing the year-to-date performance to +2.3% [4] - The performance of Volta Finance lagged behind US High Yield bonds, which returned +7.8%, and Euro High Yield bonds, which achieved +4.8% during the same period [4] Performance and Market Conditions - Financial markets experienced increased unpredictability, with concerns over the valuation of technology stocks, particularly those related to artificial intelligence (AI) [5] - Economic data showed mixed signals, with strength in the US economy but weakness outside the technology sector, alongside a softening job market [6] - The US central bank maintained steady interest rates, but weakening consumer confidence and retail sales led to expectations of potential rate cuts [6] Loan Market Activity - The Morningstar LSTA Leveraged Loan Indices recorded returns of +0.32% in the US and +0.58% in Europe [7] - CLO tranches saw stabilization in spreads for senior tranches, while Mezzanine tranches experienced spread widening, particularly in Europe [7] Investment Activity - Volta Finance actively invested approximately €5.5 million in new investments during November, focusing on new issues that offered better value [8] - The fund's cash position decreased to 13% of its assets, generating about €26 million in cash flow, which represents approximately 20% of November's NAV on an annualized basis [8] Performance Breakdown - Volta's CLO Equity tranches returned -1.5%, while CLO Debt tranches achieved a return of +0.8% [9] - As of the end of November 2025, Volta's NAV was €263.6 million, equating to €7.21 per share [10]

Financial Data and Key Metrics Changes - For calendar Q3, the company reported GAAP net income of $0.11 per share and net investment income of $0.23 per share, with a weighted average GAAP yield for the CLO portfolio at 15.5% [9][10] - The NAV as of September 30th was $5.99 per share, with cash and cash equivalents totaling $20.1 million, resulting in a NAV-based total return for the quarter of 9.6% annualized [13][21] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 20% to $380 million, with new purchases totaling $116 million, of which 62% was in CLO debt and 38% in CLO equity [11][12] - CLO equity represented 51% of total CLO holdings, down from 53% at the beginning of the quarter, while European CLO investments accounted for 14%, roughly unchanged quarter-over-quarter [11][12] Market Data and Key Metrics Changes - The credit markets rallied during the third calendar quarter, supported by a dovish shift from the Federal Reserve, leading to tightened corporate credit and CLO spreads [4][5] - In the U.S. leveraged loan market, lower quality CCC-rated loans fell several points amid default concerns, while single B-rated loans advanced due to sustained CLO demand [10] Company Strategy and Development Direction - The company is focusing on increasing its portfolio allocation to mezzanine debt to gain more attractive yields while reducing exposure to new issue equity [6][7] - The strategy emphasizes active trading to capitalize on mispricings and manage risk effectively, with a preference for secondary market acquisitions over new issues [6][16] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility and credit dispersion remain defining features of the corporate credit markets, with concerns about idiosyncratic volatility highlighted by recent bankruptcies [19][20] - The company expects elevated repricing activity and ongoing credit dispersion to create opportunities for outperformance through active portfolio management [23] Other Important Information - The company increased its credit hedge portfolio to approximately $90 million by the end of the quarter, equating to about 40% of its NAV, to provide downside protection [21] - Following the quarter end, the synthetic short position in credit hedges reached over $150 million in high-yield equivalents [21] Q&A Session Summary Question: What drove the increase in credit hedges from the end of September to the end of October? - The increase was primarily due to the growth in portfolio size and leverage, ensuring liquidity during market downturns [26][27] Question: Was the decrease in the CLO portfolio a more cautious view on credits? - The decrease was not necessarily a reflection of a cautious view but may have been due to distributions and markdowns in prices during the quarterly payment date [30][31] Question: Can you discuss the appetite for leverage and potential unsecured debt issuance? - The company is close to being fully invested and could potentially increase leverage to around $400 million, constrained by regulatory restrictions [40][41] Question: What are the predictions for CLO supply next year? - Predictions are uncertain, but there may be more reset and refinancing activities rather than new issues, depending on loan supply and market conditions [44][46] Question: How does AI impact the CLO market? - AI will affect the loan market, creating winners and losers, which raises concerns about credit dispersion and overall portfolio performance [48][50]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GAAP net income of $0.11 per share and net investment income of $0.23 per share, with a weighted average GAAP yield of 15.5% on the CLO portfolio [9][11][12] - The NAV as of September 30 was $5.99 per share, with cash and cash equivalents totaling $20.1 million, and a NAV-based total return for the quarter of 9.6% annualized [12][21] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 20% to $380 million, with new purchases totaling $116 million, of which 62% was in CLO debt and 38% in CLO equity [11][12] - CLO equity represented 51% of total CLO holdings, down from 53% at the beginning of the quarter [11] Market Data and Key Metrics Changes - The credit markets rallied in Q3, supported by a dovish shift from the Federal Reserve, leading to tightened corporate credit and CLO spreads [4][5] - In the US leveraged loan market, lower quality CCC-rated loans fell amid default concerns, while single B-rated loans advanced due to sustained CLO demand [10] Company Strategy and Development Direction - The company is focusing on increasing its allocation to mezzanine debt due to attractive yields and downside protection, while reducing exposure to new issue equity [6][7] - The strategy emphasizes active trading to capitalize on mispricings and manage risk effectively, with a preference for secondary market acquisitions [6][17] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility and credit dispersion are defining features of the corporate credit markets, with concerns about idiosyncratic credit issues impacting performance [20][21] - The company expects elevated repricing activity and ongoing credit dispersion to create opportunities for outperformance through active portfolio management [25] Other Important Information - The company has increased its credit hedging portfolio to approximately $90 million, equating to about 40% of NAV, to provide downside protection [21][22] - Following the quarter end, the synthetic short position in credit hedges reached over $150 million as of October 31 [22] Q&A Session Summary Question: What drove the increase in credit hedges from the end of September to the end of October? - The increase was primarily due to the growth in portfolio size and leverage, ensuring liquidity during market downturns [28][29] Question: Is there a more cautious view on credits reflected in the decrease of the CLO portfolio? - The decrease was attributed to quarterly payment distributions and markdowns in CLO equity prices, not necessarily a more cautious view [35][36] Question: Can you discuss the appetite for leverage and potential unsecured debt issuance? - The company is close to being fully invested and could increase leverage to around $400 million, constrained by regulatory restrictions [39][40] Question: What are the predictions for CLO supply next year? - Predictions are uncertain, but there may be more reset and refinancing activities rather than new issues, depending on market conditions [42][43] Question: How does AI impact the CLO market and credit flow? - AI may create winners and losers in the loan market, affecting CLO equity returns and increasing concerns about credit dispersion [45][46]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported investment income of $5.4 million or $0.80 per share, a slight decrease from $5.5 million in the previous quarter [16] - Total expenses remained stable at $2.4 million or $0.35 per share, consistent with the prior quarter [16] - The net investment income was $3 million or $0.44 per share, leading to a net loss of $4.3 million or $0.64 per share for the quarter [16][18] - Recurring cash flows from the CLO portfolio totaled $8.7 million or $1.28 per share, an increase from $8 million or $1.18 per share in the previous quarter [18] Business Line Data and Key Metrics Changes - The portfolio's average junior OC cushion stands at 4.5%, with deals exposed to First Brands having a slightly higher cushion of 4.6% [7] - The weighted average GAAP yield of the portfolio increased to 13.07% from 12.75% as of June 30, 2025, due to refinancing activities [12] Market Data and Key Metrics Changes - The broader CLO equity market faced headwinds, primarily due to spread tightening in the broadly syndicated loans market [6] - The company noted a significant uptick in leveraged buyout (LBO) activity, with approximately $200 billion in deals announced in 2025, surpassing the $164 billion recorded for all of 2024 [11] Company Strategy and Development Direction - The company remains focused on disciplined portfolio management and long-term total return, viewing market dislocations as opportunities [10] - The investment platform combines machine learning and natural language processing with traditional credit analysis, providing a competitive advantage in sourcing opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for CLO equity performance in a gradually easing monetary environment, anticipating that lower rates will stimulate LBO activity and improve corporate refinancing conditions [11][21] - The company believes that CLOs provide an efficient way to access senior secured corporate loans and can offer an attractive risk-return profile across various credit cycles [21] Other Important Information - As of September 30, 2025, total assets were $157.5 million, and total net assets were $114.9 million, resulting in a net asset value per share of $16.89 [18] - The company has started to utilize its at-the-market (ATM) equity issuance program, issuing approximately 26,600 shares for net proceeds of about $400,000 [19] Q&A Session Summary Question: Insights on the primary CLO market and investment opportunities - Management indicated that the primary CLO equity market currently offers inadequate arbitrage returns for large-scale participation, with expected returns in the 10% to 12% range, while the secondary market presents more attractive opportunities [23][24] Question: Impact of resets and refinancings on expected yields - Management preferred not to comment on intra-quarter activities but confirmed that recent resets and refinancings contributed positively to yields [26][27] Question: Mix of opportunities between U.S. and European CLOs - The majority of the portfolio is focused on the U.S. CLO market, with occasional consideration of European CLOs, particularly single B positions that can provide stronger NAV protection [31][32] Question: Future ATM issuance versus share repurchase - Management is evaluating both options but considers it too early to prioritize share repurchase at this stage [33][34] Question: Potential portfolio growth and leverage management - Management stated that leverage levels are currently within the target range and will be adjusted based on market conditions and investment opportunities [35][36]

Core Insights - Volta Finance Limited reported a net performance of +0.3% for September 2025, bringing the year-to-date performance to +3.5% [4] - The performance of Volta Finance is lower compared to US High Yield and Euro High Yield, which returned +7.1% and +4.6% respectively [4] - The company's NAV as of the end of September 2025 was €272.6 million, equating to €7.45 per share [8] Market Overview - Global markets demonstrated resilience, with US equities benefiting from investments in artificial intelligence and anticipated interest rate cuts by the Federal Reserve [5] - Fixed income yields increased, with long-term rates in France and Germany reaching multi-year highs, while UK gilts advanced ahead of the Autumn Budget [5] - The Federal Reserve executed its first rate cut in nine months, while the ECB and Bank of England maintained a cautious approach [5] Portfolio Activity - Volta Finance reinvested approximately €10 million into five different US and European BB and B CLO debts, reducing its cash position from 18% to 16% [7] - The company experienced stable interest and coupon generation over the past six months, amounting to about €28 million equivalent, or approximately 21% of September NAV on an annualized basis [7] - Volta's CLO Equity tranches returned +0.3%, while CLO Debt tranches returned +1.2% during the month [8] Investment Strategy - Volta Finance aims to preserve capital across the credit cycle and provide a stable income stream to shareholders through quarterly dividends [13] - The company primarily seeks exposure to CLOs and similar asset classes, with a potential for a more diversified investment strategy across structured finance assets [13]

Core Insights - Volta Finance reported a net performance of -0.8% for August 2025, with a year-to-date performance of +3.2%, underperforming compared to US High Yield and Euro High Yield returns of +6.3% and +4.0% respectively [4][5] Performance and Economic Context - Economic indicators showed a mixed picture in August, with weak labor market signals and high valuations in the tech sector raising concerns about economic momentum [5] - Inflation data remained elevated but aligned with expectations, leading to speculation about potential Federal Reserve rate cuts [5] - The Bank of England surprised markets with a rate cut to 4%, the lowest in over two years, amid ongoing inflation and political uncertainty [5] - Credit markets remained stable, with minor changes in spreads for Itraxx Xover and CDX indices [5] Loan and CLO Market Activity - The loan market saw significant repricing, with 28% of the market repriced year-to-date, resulting in approximately 20 basis points of spread compression [6] - Volta received an early redemption of approximately €7 million from a European CLO Equity position and reinvested €5.7 million into a Euro CLO debt tranche [7] Portfolio Performance - Volta's CLO Equity tranches returned -1.1%, while CLO Debt tranches returned +1.2% [8] - The EUR/USD exchange rate shift impacted long dollar exposure, contributing to a performance decline of -0.34% [8] Financial Position - As of the end of August 2025, Volta's Net Asset Value (NAV) was €271.8 million, equating to €7.43 per share [9] - Cash flow generation remained stable at €28 million equivalent in interest and coupons over the last six months, representing nearly 21% of August NAV on an annualized basis [7]

Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [15][16] - As of June 30, 2025, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31, 2025 [16] Business Line Data and Key Metrics Changes - The company recorded an unrealized gain on investments of $500,000 and a modest net realized loss of $70,000 during the quarter [15] - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30, down from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] Market Data and Key Metrics Changes - The CLO market remained resilient during a period of macro uncertainty and has since rebounded, with loan fundamentals remaining strong [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June 30, 2025, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [39] Company Strategy and Development Direction - The company emphasizes a data-driven investment approach utilizing machine learning technology and proprietary algorithms to maintain agility and seek relative value in the CLO space [8][9] - The portfolio is diversified across 52 unique CLO positions managed by 31 distinct CLO manager platforms, with no significant concentration in any single CLO [11][12] - The company plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [19] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions already successfully reset or refinanced in Q3 [34] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans for similar distributions in the following months, representing an annualized dividend yield of approximately 14.7% [17] Q&A Session Summary Question: Inquiry about recurring cash flow for comparative purposes - Management confirmed that recurring cash flow for Q1 was $7.7 million [21][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time and will be utilized opportunistically based on investment opportunities and cost of leverage [22][24] Question: Composition of current pipeline regarding primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the primary market currently presents interesting opportunities, while the secondary market has provided better relative value recently [25][29] Question: Quantification of opportunities for resets and refinancings within the portfolio - Management expects refinancing and reset activity to continue, with five minority positions already reset or refinanced in Q3 [33][34] Question: NAV reaction to the credit environment after the sell-off in April - Management noted that NAV increased post-sell-off due to strong loan fundamentals and significant refinancing activity [38][39]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [16][18] - As of June 30, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31 [17] Business Line Data and Key Metrics Changes - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30 from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] - The company maintained a diversified portfolio with 52 unique CLO positions managed by 31 distinct CLO manager platforms, consisting of approximately 1,800 unique loans across over 30 industry sectors [12][13] Market Data and Key Metrics Changes - The CLO market showed resilience during macroeconomic uncertainty, with loan fundamentals remaining strong and managers adapting quickly to market conditions [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [40] Company Strategy and Development Direction - The company emphasized its data-driven investment approach, utilizing machine learning and proprietary algorithms to maintain a competitive edge in the CLO market [9][10] - The management plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities, with a focus on both primary and secondary market opportunities [10][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [20] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions successfully reset or refinanced in Q3 [35] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans to continue this distribution in August, September, and October, representing an annualized dividend yield of approximately 14.7% [18] Q&A Session Summary Question: Recurring cash flow comparison with the prior quarter - Management confirmed that recurring cash flow for Q1 was $7.7 million, similar to the current quarter's level [22][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time, and they evaluate investment opportunities daily, considering the cost of leverage compared to expected returns [23][24] Question: Composition of current pipeline in terms of primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the relative value of opportunities drives their decisions, noting interesting opportunities in the primary market while the secondary market has provided better relative value recently [25][28] Question: Quantifying opportunities for resets and refinancings - Management expects refinancing and reset activity to continue, with five minority positions successfully reset or refinanced in Q3 [35] Question: NAV reaction to the credit environment post-sell off - Management noted that NAV increased post-sell off due to strong loan technicals and significant refinancing activity, with credit fundamentals remaining stable [39]

Core Viewpoint - Volta Finance Limited reported a net performance of +2.48% for July 2025, contributing to a total net performance of +13.9% for the financial year from August 2024 to July 2025, outperforming US High Yield and Euro High Yield indices which returned +8.6% and +8.1% respectively [4][5][6]. Performance and Portfolio Activity - The company achieved a net performance of +2.48% in July, including a dividend payment of 15.5 cents per share [4]. - The financial year net performance from August 2024 to July 2025 stands at +13.9% [4]. - The US High Yield market returned +8.6% and Euro High Yield returned +8.1% during the same period [4]. - Economic indicators showed a mixed but generally positive outlook, with robust labor market conditions and strong corporate earnings, particularly in the technology sector [5][6]. - Inflationary pressures are evident, with the core Personal Consumption Expenditures (PCE) index rising 2.8% year-over-year [6]. - Volta's cash flow generation remained stable at €28 million equivalent in interest and coupons over the last six months, representing close to 21% of July's NAV on an annualized basis [8]. Market Conditions - July saw strong market performance driven by positive trade negotiations and resilient economic indicators, although caution remained due to ongoing tariff negotiations with China [5]. - Loan and CLO issuance remained active despite low M&A volumes, with US loan market indices recording a performance increase of +0.88% and European market indices increasing by +0.55% [7]. - Volta received early redemptions from CLO debts (approximately €5 million) and CLO equities (approximately €2 million equivalent) [8]. Portfolio Composition - As of the end of July 2025, Volta's NAV was €274.2 million, equating to €7.49 per share, an increase of 36 cents from July 2024 [10]. - CLO Equity tranches returned +5.2% while CLO Debt tranches returned +0.6% during the month [9]. - Cash stood at 17% at the end of July, providing the company with liquidity to capitalize on attractive entry points in the market [8].