Crescent Capital BDC, Inc. 10-Q

10-Q 1 d67067d10q.htm FORM 10-Q Form 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 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 number 814-01132 Crescent Capital BDC, Inc. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-3162282 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 11100 Santa Monica Blvd., Suite 2000, Los Angeles, CA 90025 (Address of Principal Executive Offices) (Zip Code) Registrant’s Telephone Number, Including Area Code: (310) 235-5900 Not applicable Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $0.001 par value per share CCAP The Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001 per share (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit files). Yes ☐ No ☐ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-Accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒ The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at November 4, 2020 was 28,167,360. Table of Contents CRESCENT CAPITAL BDC, INC. FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2020 Table of Contents INDEX PAGE NO. PART I. FINANCIAL INFORMATION 2 Item 1. Financial Statements 2 Consolidated Statements of Assets and Liabilities as of September 30, 2020 (Unaudited) and December 31, 2019 2 Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (Unaudited) 3 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2020 and 2019 (Unaudited) 4 Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (Unaudited) 6 Consolidated Schedule of Investments as of September 30, 2020 (Unaudited) 7 Consolidated Schedule of Investments as of December 31, 2019 21 Notes to Consolidated Financial Statements (Unaudited) 33 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 60 Item 3. Quantitative and Qualitative Disclosures About Market Risk 78 Item 4. Controls and Procedures 80 PART II. OTHER INFORMATION 80 Item 1. Legal Proceedings 80 Item 1A Risk Factors 81 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 83 Item 3. Defaults Upon Senior Securities 84 Item 4. Other Information 84 Item 5. Exhibits 85 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “will,” “should,” “targets,” “projects,” and variations of these words and similar expressions identify forward-looking statements, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The following factors and factors listed under “Risk Factors” in this report and other documents Crescent Capital BDC, Inc. has filed with the Securities and Exchange Commission, or SEC, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: • uncertainty surrounding the financial stability of the United States, Europe and China; • the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; • potential fluctuation in quarterly operating results; • potential impact of economic recessions or downturns; • adverse developments in the credit markets; • regulations governing our operation as a business development company; • operation in a highly competitive market for investment opportunities; • changes in interest rates may affect our cost of capital and net investment income; • financing investments with borrowed money; • potential adverse effects of price declines and illiquidity in the corporate debt markets; • the impact of COVID-19 on our portfolio companies and the markets in which they operate, interest rates and the economy in general; • lack of liquidity in investments; • the outcome and impact of any litigation; • the timing, form and amount of any dividend distributions; • risks regarding distributions; • potential adverse effects of new or modified laws and regulations; • the social, geopolitical, financial, trade and legal implications of Brexit; • potential resignation of the Adviser and or the Administrator; • uncertainty as to the value of certain portfolio investments; • defaults by portfolio companies; • our ability to successfully complete and integrate any acquisitions; • risks associated with original issue discount (“OID”) and payment-in-kind (“PIK”) interest income; and • the market price of our common stock may fluctuate significantly. Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this report because we are an investment company. 1 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of September 30, 2020 (Unaudited) As of December 31, 2019 Assets Investments, at fair value Non-controlled non-affiliated (cost of $904,002 and $675,329, respectively) $ 879,491 $ 671,582 Non-controlled affiliated (cost of $32,308 and $19,766, respectively) 47,631 20,507 Controlled (cost of $39,000 and $34,000, respectively) 33,929 34,442 Cash and cash equivalents 3,047 4,576 Restricted cash and cash equivalents 8,522 8,851 Interest receivable 3,602 2,832 Unrealized appreciation on foreign currency forward contracts 1,835 758 Receivable for investments sold 1,070 160 Deferred tax assets 776 421 Other assets 632 3,046 Total assets $ 980,535 $ 747,175 Liabilities Debt (net of deferred financing costs of $4,645 and $3,431, respectively) $ 422,237 $ 322,010 Distributions payable 11,549 8,554 Interest and other debt financing costs payable 3,093 3,545 Accrued expenses and other liabilities 3,067 3,788 Management fees payable 1,746 1,343 Deferred tax liabilities 1,133 879 Unrealized depreciation on foreign currency forward contracts 520 65 Directors’ fees payable 100 74 Total liabilities $ 443,445 $ 340,258 Commitments and Contingencies (Note 8) Net Assets Preferred stock, par value $0.001 per share (10,000 shares authorized, zero outstanding, respectively) $ — $ — Common stock, par value $0.001 per share (200,000,000 shares authorized, 28,167,360 and 20,862,314 shares issued and outstanding, respectively) 28 21 Paid-in capital in excess of par value 558,913 414,293 Accumulated loss (21,851 ) (7,397 ) Total Net Assets $ 537,090 $ 406,917 Total Liabilities and Net Assets $ 980,535 $ 747,175 Net asset value per share $ 19.07 $ 19.50 See accompanying notes 2 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Investment Income: From non-controlled non-affiliated investments: Interest income $ 16,132 $ 12,385 $ 48,424 $ 33,402 Paid-in-kind interest 501 112 1,747 449 Dividend income 518 705 2,122 1,636 Other income — 87 1,060 686 From non-controlled affiliated investments: Interest income 338 337 1,009 877 Paid-in-kind interest 485 — 970 — Dividend Income — 310 — 310 From controlled investments: Dividend income 700 900 1,500 1,450 Total investment income 18,674 14,836 56,832 38,810 Expenses: Interest and other debt financing costs 3,504 3,524 11,484 9,506 Management fees 2,909 2,517 8,327 6,567 Incentive fees 2,136 1,375 6,335 3,506 Professional fees 354 202 1,060 587 Directors’ fees 100 73 339 218 Organization expenses — 45 — 136 Other general and administrative expenses 631 567 1,852 1,624 Total expenses 9,634 8,303 29,397 22,144 Management fee waiver (1,163 ) (1,268 ) (3,427 ) (3,215 ) Incentive fee waiver (2,136 ) (1,375 ) (6,335 ) (3,506 ) Net expenses 6,335 5,660 19,635 15,423 Net investment income before taxes 12,339 9,176 37,197 23,387 Income and excise taxes 131 8 480 14 Net investment income 12,208 9,168 36,717 23,373 Net realized and unrealized gains (losses) on investments: Net realized gain (loss) on: Non-controlled non-affiliated investments 2 (66 ) (1,021 ) (987 ) Non-controlled affiliated investments (526 ) — (526 ) — Foreign currency transactions 6 42 (155 ) 531 Net change in unrealized appreciation (depreciation) on: Non-controlled non-affiliated investments and foreign currency translation 18,530 (7,617 ) (20,770 ) (3,731 ) Non-controlled affiliated investments 6,215 (24 ) 14,582 600 Controlled investments 3,416 45 (5,513 ) (667 ) Foreign currency forward contracts (1,349 ) 1,205 623 1,487 Net realized and unrealized gains (losses) on investments 26,294 (6,415 ) (12,780 ) (2,767 ) Realized loss on asset acquisition — — (3,825 ) — Net realized and unrealized gains (losses) on investments and asset acquisition 26,294 (6,415 ) (16,605 ) (2,767 ) Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments (161 ) (25 ) 101 (505 ) Net increase (decrease) in net assets resulting from operations $ 38,341 $ 2,728 $ 20,213 $ 20,101 Per Common Share Data: Net increase in net assets resulting from operations per share (basic and diluted): $ 1.36 $ 0.15 $ 0.73 $ 1.23 Net investment income per share (basic and diluted): $ 0.43 $ 0.49 $ 1.33 $ 1.43 Weighted average shares outstanding (basic and diluted): 28,167,360 18,810,099 27,518,708 16,341,911 See accompanying notes 3 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) (Unaudited) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Loss Total Net Assets Balance at June 30, 2020 28,167,360 $ 28 $ 558,913 $ (48,643 ) $ 510,298 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 12,208 12,208 Net realized gain (loss) on investments and foreign currency transactions — — — (518 ) (518 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — 26,812 26,812 Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (161 ) (161 ) Stockholder distributions: Distributions to stockholders — — — (11,549 ) (11,549 ) Total increase (decrease) for the three months ended September 30, 2020 — — — 26,792 26,792 Balance at September 30, 2020 28,167,360 $ 28 $ 558,913 $ (21,851 ) $ 537,090 Distributions declared $ 0.41 Balance at December 31, 2019 20,862,314 $ 21 $ 414,293 $ (7,397 ) $ 406,917 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 36,717 36,717 Net realized gain (loss) on investments and foreign currency transactions — — — (1,702 ) (1,702 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — (11,078 ) (11,078 ) Realized loss on asset acquisition — — — (3,825 ) (3,825 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — 101 101 Stockholder distributions: Issuance of common stock 2,265,021 2 44,295 — 44,297 Issuance in connection with asset acquisition (Note 13) 5,202,312 5 101,944 — 101,949 Issuance of common shares pursuant to dividend reinvestment plan 30,128 — 589 — 589 Repurchase of common stock (192,415 ) — (2,208 ) — (2,208 ) Distributions to stockholders — — — (34,667 ) (34,667 ) Total increase (decrease) for the nine months ended September 30, 2020 7,305,046 7 144,620 (14,454 ) 130,173 Balance at September 30, 2020 28,167,360 $ 28 $ 558,913 $ (21,851) $ 537,090 Distributions declared $ 1.23 See accompanying notes 4 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) (Unaudited) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Loss Total Net Assets Balance at June 30, 2019 16,245,796 $ 16 $ 322,543 $ (1,775 ) $ 320,784 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 9,168 9,168 Net realized gain (loss) on investments and foreign currency transactions — — — (24 ) (24 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — (6,391 ) (6,391 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (25 ) (25 ) Stockholder distributions: Issuance of common stock 3,284,155 3 64,997 — 65,000 Issuance of common shares pursuant to dividend reinvestment plan 19,710 0 390 — 390 Equity offering costs — — (64 ) — (64 ) Distributions to stockholders — — — (8,015 ) (8,015 ) Total increase (decrease) for the three months ended September 30, 2019 3,303,865 3 65,323 (5,287 ) 60,039 Balance at September 30, 2019 19,549,661 $ 19 $ 387,866 $ (7,062 ) $ 380,823 Distributions declared $ 0.41 Balance at December 31, 2018 13,358,289 $ 13 $ 266,024 $ (6,458 ) $ 259,579 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 23,373 23,373 Net realized gain (loss) on investments and foreign currency transactions — — — (456 ) (456 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — (2,311 ) (2,311 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (505 ) (505 ) Stockholder distributions: Issuance of common stock 6,138,595 6 120,994 — 121,000 Issuance of common shares pursuant to dividend reinvestment plan 52,777 0 1,039 — 1,039 Equity offering costs — — (191 ) — (191 ) Distributions to stockholders — — — (20,705 ) (20,705 ) Total increase (decrease) for the nine months ended September 30, 2019 6,191,372 6 121,842 (604 ) 121,244 Balance at September 30, 2019 19,549,661 $ 19 $ 387,866 $ (7,062) $ 380,823 Distributions declared $ 1.23 See accompanying notes 5 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Cash Flows (in thousands, except share and per share data) (Unaudited) For the nine months ended September 30, 2020 For the nine months ended September 30, 2019 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 20,213 $ 20,101 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities: Purchases of investments (228,280 ) (297,519 ) Paid-in-kind interest income (2,717 ) (449 ) Proceeds from sales of investments and principal repayments 182,275 97,138 Net realized (gain) loss on investments and foreign currency transactions 1,903 987 Realized loss on asset acquisition (2) 3,825 — Acquisition of Alcentra Capital Corporation, net of cash acquired (2) (12,884 ) — Net change in unrealized (appreciation) depreciation on investments and foreign currency translation 11,701 3,798 Net change in unrealized (appreciation) depreciation on foreign currency forward contracts (623 ) (1,487 ) Amortization of premium and accretion of discount, net (3,714 ) (2,374 ) Amortization of deferred financing costs 985 691 Change in operating assets and liabilities: (Increase) decrease in receivable for investments sold (515 ) (223 ) (Increase) decrease in interest receivable 232 (2,280 ) (Increase) decrease in deferred tax asset (355 ) — (Increase) decrease in other assets 2,421 (1,185 ) Increase (decrease) in payable for investments purchased — (290 ) Increase (decrease) in management fees payable 403 287 Increase (decrease) in directors’ fees payable 26 79 Increase (decrease) in interest and credit facility fees and expenses payable (1,286 ) 1,136 Increase (decrease) in deferred tax liability 254 505 Increase (decrease) in accrued expenses and other liabilities (1,116 ) 2,418 Net cash provided by (used for) operating activities (27,252 ) (178,667 ) Cash flows from financing activities: Issuance of common stock 44,297 121,000 Repurchase of common stock (2,208 ) — Financing costs paid related to revolving credit facilities (2,199 ) (2,751 ) Distributions paid (31,083 ) (16,994 ) Equity offering costs — (191 ) Borrowings on debt 279,592 248,250 Repayments on debt (229,127 ) (162,946 ) Repayments on InterNotes ® (33,853 ) — Net cash provided by (used for) financing activities 25,419 186,368 Effect of exchange rate changes on cash denominated in foreign currency (25 ) 13 Net increase (decrease) in cash, cash equivalents, restricted cash and foreign currency (1,858 ) 7,714 Cash, cash equivalents, restricted cash and foreign currency, beginning of period 13,427 10,369 Cash, cash equivalents, restricted cash and foreign currency, end of period (1) $ 11,569 $ 18,083 Supplemental and non-cash financing activities: Cash paid during the period for interest $ 11,407 $ 7,679 Issuance of common stock pursuant to dividend reinvestment plan $ 589 $ 1,039 Accrued but unpaid equity offering costs $ — $ 64 Accrued but unpaid distributions $ 11,549 $ 8,015 Issuance of shares in connection with asset acquisition (Note 13) (2) $ 101,949 $ — (1) As of September 30, 2020, the balance included cash and cash equivalents of $3,047 (including cash denominated in foreign currency of $861) and restricted cash and cash equivalents of $8,522, respectively. As of September 30, 2019, the balance included cash and cash equivalents of $6,955 (including cash denominated in foreign currency of $503) and restricted cash and cash equivalents of $11,128, respectively. (2) After the close of business on January 31, 2020, in connection with the Alcentra Acquisition (as defined in Note 1 and further discussed in Note 13), the Company acquired net assets of $114,431, which included $195,682 of investments, $3,409 of cash and cash equivalents and $1,398 of other assets, net of $86,058 of assumed liabilities, for total cash and stock consideration of $118,256, inclusive of $7,250 of asset acquisition costs. See accompanying notes 6 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Investments (1) (2) United States Debt Investments Automobiles & Components Auto-Vehicle Parts, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 01/2023 $ — $ (4 ) — % $ (16 ) Auto-Vehicle Parts, LLC (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (7) 5.50 % 01/2023 4,578 4,544 0.8 4,459 Continental Battery Company (3) Senior Secured First Lien Delayed Draw Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2022 6,595 6,531 1.2 6,595 Continental Battery Company (3) (5) Senior Secured First Lien Delayed Draw Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2022 3,474 3,449 0.7 3,474 Continental Battery Company (3) (4) (5) (6) Senior Secured First Lien Revolver 12/2022 — (7 ) — — Continental Battery Company (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2022 3,943 3,909 0.7 3,943 Empire Auto Parts, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 09/2024 — (5 ) — (15 ) Empire Auto Parts, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,450 2,415 0.5 2,361 Empire Auto Parts, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,376 2,338 0.4 2,290 POC Investors, LLC (3) (5) (6) Senior Secured First Lien Revolver P + 450 (9) 7.75 % 11/2021 375 371 0.1 375 POC Investors, LLC (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 11/2021 11,466 11,400 2.1 11,466 35,257 34,941 6.5 34,932 Capital Goods Envocore Holding, LLC (3) Senior Secured First Lien Term Loan L + 900 (200 Floor) (including 425 PIK) (8) 11.00 % 06/2022 18,342 15,635 2.7 14,517 Potter Electric Signal Company (3) (4) (6) (10) Senior Secured First Lien Delayed Draw Term Loan 12/2025 — (17 ) — (28 ) Potter Electric Signal Company (3) (6) (11) Senior Secured First Lien Revolver P + 325 (9) 6.50 % 12/2022 150 145 — 136 Potter Electric Signal Company (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 12/2025 2,486 2,467 0.5 2,424 Potter Electric Signal Company (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 12/2025 472 469 0.1 461 21,450 18,699 3.3 17,510 Commercial & Professional Services ASP MCS Acquisition Corp. (12) Senior Secured First Lien Term Loan 05/2024 5,227 5,210 0.3 1,457 Battery Solutions, Inc. (3) (13) Unsecured Debt 1200 + 200 PIK (14) 14.00 % 11/2021 1,257 1,238 0.2 1,224 BFC Solmetex LLC & Bonded Filter Co. LLC (3) (5) Unitranche First Lien Revolver L + 850 (100 Floor) (8) 9.50 % 09/2023 750 741 0.1 723 BFC Solmetex LLC & Bonded Filter Co. LLC (3) (5) Unitranche First Lien Revolver L + 850 (100 Floor) (8) 9.50 % 09/2023 300 295 0.1 289 BFC Solmetex LLC & Bonded Filter Co. LLC (3) Unitranche First Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 09/2023 5,935 5,857 1.1 5,725 BFC Solmetex LLC & Bonded Filter Co. LLC (3) Unitranche First Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 09/2023 619 611 0.1 597 CHA Holdings, Inc. (3) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 1,016 1,012 0.2 975 CHA Holdings, Inc. (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 4,818 4,801 0.9 4,626 Consolidated Label Co., LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 07/2026 — (12 ) — — Consolidated Label Co., LLC (3) Senior Secured First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 07/2026 4,350 4,266 0.8 4,350 See accompanying notes 7 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value DFS Intermediate Holdings, LLC (3) (5) (6) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor) (7) 6.25 % 03/2022 $ 3,446 $ 3,419 0.6 % $ 3,446 DFS Intermediate Holdings, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 03/2022 — (16 ) — — DFS Intermediate Holdings, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 03/2022 8,725 8,667 1.6 8,725 Digital Room Holdings, Inc. Senior Secured First Lien Term Loan L + 500 (15) 5.27 % 05/2026 6,912 6,607 1.2 6,204 GH Holding Company (3) Senior Secured First Lien Term Loan L + 450 (7) 4.65 % 02/2023 1,463 1,459 0.3 1,403 GI Revelation Acquisition, LLC Senior Secured First Lien Term Loan L + 500 (7) 5.15 % 04/2025 7,340 7,313 1.3 7,101 Hepaco, LLC (3) (6) (10) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (7) 6.00 % 08/2024 4,167 4,139 0.7 3,975 Hepaco, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 500 (100 Floor) (7) 6.00 % 08/2024 287 286 0.1 246 Hepaco, LLC (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 08/2024 5,111 5,078 0.9 4,883 Hsid Acquisition, LLC (3) (10) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (8) 6.00 % 01/2026 2,900 2,848 0.5 2,900 Hsid Acquisition, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 01/2026 — (13 ) — — Hsid Acquisition, LLC (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 01/2026 4,328 4,250 0.8 4,328 Impact Group, LLC (3) Senior Secured First Lien Term Loan L + 737 (100 Floor) (7) 8.37 % 06/2023 7,059 5,470 1.2 6,259 Impact Sales, LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 737 (100 Floor) (7) 8.37 % 06/2023 6,663 5,163 1.1 5,908 Institutional Shareholder Services, Inc. (3) Senior Secured First Lien Term Loan L + 450 (8) 4.72 % 03/2026 2,955 2,915 0.5 2,811 Institutional Shareholder Services, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (8) 8.72 % 03/2027 2,000 1,925 0.4 1,925 ISS Compressors Industries, Inc. (3) (5) (6) Senior Secured First Lien Revolver L + 550 (100 Floor) (8) 6.50 % 02/2026 812 805 0.2 803 ISS Compressors Industries, Inc. (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 9,121 9,038 1.7 9,016 Jordan Healthcare, Inc. (3) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 07/2022 693 690 0.1 693 Jordan Healthcare, Inc. (3) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 07/2022 450 448 0.1 450 Jordan Healthcare, Inc. (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 07/2022 3,990 3,974 0.7 3,990 MHS Acquisition Holdings, LLC (3) Senior Secured Second Lien Delayed Draw Term Loan L + 875 (100 Floor) (8) 9.75 % 03/2025 467 461 0.1 442 MHS Acquisition Holdings, LLC (3) Senior Secured Second Lien Term Loan L + 875 (100 Floor) (8) 9.75 % 03/2025 8,102 7,948 1.4 7,677 MHS Acquisition Holdings, LLC (3) Unsecured Debt 1350 PIK (8) 13.50 % 03/2026 263 261 0.1 248 MHS Acquisition Holdings, LLC (3) Unsecured Debt 1350 PIK (14) 13.50 % 03/2026 790 783 0.1 743 Pinstripe Holdings, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 01/2025 9,850 9,632 1.8 9,706 Pye-Barker Fire & Safety, LLC (3) (16) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 11/2025 3,743 3,649 0.7 3,655 Pye-Barker Fire & Safety, LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 11/2025 10,049 9,805 1.8 9,814 Receivable Solutions, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2024 — (4 ) — (6 ) See accompanying notes 8 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Receivable Solutions, Inc. (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 10/2024 $ 2,152 $ 2,121 0.4 % $ 2,108 SavATree, LLC (3) (6) (10) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor) (8) 6.25 % 06/2022 742 735 0.1 742 SavATree, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 06/2022 — (4 ) — — SavATree, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 06/2022 3,918 3,890 0.7 3,918 Spear Education (3) (4) (6) (10) Senior Secured First Lien Delayed Draw Term Loan 02/2025 — (27 ) — (113 ) Spear Education (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2025 6,841 6,779 1.2 6,593 TecoStar Holdings, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 11/2024 5,000 4,921 0.9 4,997 UP Acquisition Corp. (3) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 1,191 1,171 0.2 1,156 UP Acquisition Corp. (3) (5) (6) Unitranche First Lien Revolver L + 625 (100 Floor) (7) 7.25 % 05/2024 391 372 0.1 353 UP Acquisition Corp. (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 4,345 4,279 0.8 4,215 Xcentric Mold and Engineering Acquisition Company, LLC (3) Senior Secured First Lien Revolver L + 700 (100 Floor) (including 100 PIK) (7) 8.00 % 01/2022 708 705 0.1 617 Xcentric Mold and Engineering Acquisition Company, LLC (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (including 100 PIK) (7) 8.00 % 01/2022 4,417 4,392 0.7 3,846 165,663 160,353 29.0 155,743 Consumer Durables & Apparel EiKo Global, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 06/2023 300 291 0.1 300 EiKo Global, LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 06/2023 3,232 3,193 0.6 3,232 3,532 3,484 0.7 3,532 Consumer Services BJH Holdings III Corp. (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 13,613 13,440 2.4 13,136 Cambium Learning Group, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (8) 8.72 % 12/2026 5,000 4,861 0.9 4,773 Colibri Group LLC (3) (10) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 05/2025 1,340 1,314 0.3 1,334 Colibri Group LLC (3) (4) (5) (6) Unitranche First Lien Revolver 05/2025 — (19 ) — (4 ) Colibri Group LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 05/2025 8,147 7,983 1.5 8,114 COP Home Services Holdings, Inc. (3) (10) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 05/2025 693 682 0.1 683 COP Home Services Holdings, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 05/2025 — (7 ) — (7 ) COP Home Services Holdings, Inc. (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 05/2025 3,448 3,393 0.6 3,396 HGH Purchaser, Inc. (3) (6) (10) Unitranche First Lien Delayed Draw Term Loan L + 675 (100 Floor) (8) 7.75 % 11/2025 1,534 1,464 0.3 1,534 HGH Purchaser, Inc. (3) (5) (6) Unitranche First Lien Revolver L + 675 (100 Floor) (8) 7.75 % 11/2025 186 164 — 186 HGH Purchaser, Inc. (3) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 11/2025 8,047 7,871 1.5 8,047 JLL XDD, Inc. (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00% 12/2023 5,985 5,827 1.1 5,985 See accompanying notes 9 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value JLL XDD, Inc. (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (15) 6.50 % 12/2023 $ 2,118 $ 2,078 0.4 % $ 2,118 Learn-It Systems, LLC (3) (6) (17) Senior Secured First Lien Delayed Draw Term Loan L + 450 (50 Floor) (including 50 PIK) (8) 5.50 % 03/2025 646 586 0.1 589 Learn-It Systems, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 03/2025 — (14 ) — (13 ) Learn-It Systems, LLC (3) Senior Secured First Lien Term Loan L + 450 (50 Floor) (including 50 PIK) (8) 5.50 % 03/2025 4,342 4,241 0.8 4,246 Pre-Paid Legal Services, Inc. (3) Senior Secured Second Lien Term Loan L + 750 (7) 7.65 % 05/2026 519 514 0.1 519 Teaching Strategies LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 05/2024 182 173 — 181 Teaching Strategies LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 05/2024 9,164 9,013 1.7 9,148 United Language Group, Inc. (3) (5) Senior Secured First Lien Revolver L + 675 (100 Floor) (7) 7.75 % 12/2021 400 397 0.1 379 United Language Group, Inc. (3) Senior Secured First Lien Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2021 4,653 4,622 0.8 4,415 Vistage Worldwide, Inc. (3) Senior Secured First Lien Term Loan L + 400 (100 Floor) (8) 5.00 % 02/2025 6,134 6,144 1.1 5,904 WeddingWire, Inc. (3) Senior Secured Second Lien Term Loan L + 825 (7) 8.40 % 12/2026 5,000 4,954 0.8 4,300 Wrench Group LLC (3) Senior Secured Second Lien Term Loan L + 788 (8) 8.10 % 04/2027 2,500 2,434 0.5 2,440 83,651 82,115 15.1 81,403 Diversified Financials CC SAG Acquisition Corp. (3) (6) (10) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (7) 6.50 % 09/2025 400 371 0.1 400 CC SAG Acquisition Corp. (3) (4) (5) (6) Unitranche First Lien Revolver 09/2025 — (20 ) — — CC SAG Acquisition Corp. (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2025 7,128 6,986 1.3 7,128 GGC Aperio Holdings, L.P. (3) Unitranche First Lien Term Loan L + 500 (8) 5.22 % 10/2024 8,405 8,393 1.5 8,141 Goldentree Loan Management US CLO 2, Ltd. (3) (18) CLO, Series 2017-2A, Class E L + 470 4.97 % 11/2030 2,000 1,899 0.3 1,702 17,933 17,629 3.2 17,371 Energy BJ Services, LLC (3) (12) (19) Unitranche First Lien - Last Out Term Loan 01/2023 8,075 8,014 1.3 6,911 BJ Services, LLC (3) Unitranche First Lien Term Loan L + 700 (150 Floor) (8) 8.50 % 01/2023 4,750 4,721 0.9 4,560 Black Diamond Oilfield Rentals, LLC (3) Senior Secured First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 12/2020 10,386 10,313 1.7 9,257 23,211 23,048 3.9 20,728 Food & Staples Retailing Isagenix International, LLC Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 06/2025 6,180 6,157 0.6 3,283 PetIQ, LLC (3) (18) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 07/2025 14,850 14,735 2.8 14,813 21,030 20,892 3.4 18,096 Food, Beverage & Tobacco Mann Lake Ltd. (3) (5) Senior Secured First Lien Revolver L + 750 (100 Floor) (8) 8.50 % 10/2024 900 888 0.1 837 Mann Lake Ltd. (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (8) 8.50 % 10/2024 3,836 3,780 0.7 3,566 See accompanying notes 10 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Manna Pro Products, LLC (3) (6) (10) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (7) 7.00 % 12/2023 $ 2,571 $ 2,566 0.5 % $ 2,554 Manna Pro Products, LLC (3) Unitranche First Lien Term Loan L + 600 (100 floor) (7) 7.00 % 12/2023 2,436 2,412 0.4 2,423 Manna Pro Products, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 12/2023 4,381 4,338 0.8 4,357 14,124 13,984 2.5 13,737 Health Care Equipment & Services Abode Healthcare, Inc. (3) (5) (6) Senior Secured First Lien Revolver L + 525 (100 Floor) (8) 6.25 % 08/2025 232 213 — 232 Abode Healthcare, Inc. (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 08/2025 4,752 4,672 0.9 4,752 Aegis Sciences Corporation Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 05/2025 7,348 6,954 1.1 6,047 Ameda, Inc. (3) (5) (6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 09/2022 188 185 — 162 Ameda, Inc. (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 09/2022 2,259 2,241 0.4 2,064 Avalign Technologies, Inc. (3) Senior Secured First Lien Term Loan L + 450 (7) 4.65 % 12/2025 16,880 16,746 3.0 16,036 BAART Programs, Inc. (3) Senior Secured Second Lien Delayed Draw Term Loan L + 800 (100 Floor) (8) 9.00 % 03/2025 1,000 957 0.2 973 BAART Programs, Inc. (3) Senior Secured Second Lien Term Loan L + 825 (100 Floor) (20) 9.25 % 03/2025 7,000 6,700 1.3 6,814 Centria Subsidiary Holdings, LLC (3) (5) (6) Unitranche First Lien Revolver P + 500 (9) 8.25 % 12/2025 395 344 0.1 364 Centria Subsidiary Holdings, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 12/2025 11,783 11,469 2.2 11,598 CRA MSO, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 12/2023 80 77 — 71 CRA MSO, LLC (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2023 1,228 1,212 0.2 1,173 ExamWorks Group, Inc. (3) Senior Secured Second Lien Term Loan L + 725 (100 Floor) (15) 8.25 % 07/2024 5,735 5,637 1.1 5,694 GrapeTree Medical Staffing, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2022 — (3 ) — (5 ) GrapeTree Medical Staffing, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,649 1,636 0.3 1,630 GrapeTree Medical Staffing, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,386 1,368 0.3 1,370 HCAT Acquisition, Inc. (3) Unitranche First Lien Delayed Draw Term Loan L + 925 (100 Floor) (8) 10.25 % 11/2022 2,326 2,213 0.4 2,164 HCAT Acquisition, Inc. (3) (21) Unitranche First Lien Revolver L + 925 (100 Floor) (8) 10.25 % 11/2022 3,836 3,649 0.7 3,568 HCAT Acquisition, Inc. (3) Unitranche First Lien Term Loan L + 925 (100 Floor) (8) 10.25 % 11/2022 14,787 14,063 2.6 13,752 HCOS Group Intermediate III LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 09/2026 — (18 ) — (8 ) HCOS Group Intermediate III LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) 7.00 % 09/2026 11,600 11,368 2.1 11,499 Lightspeed Buyer, Inc. (3) (6) (10) Unitranche First Lien Delayed Draw Term Loan L + 525 (100 Floor) (7) 6.25 % 02/2026 1,149 1,122 0.2 1,139 Lightspeed Buyer, Inc. (3) (5) Unitranche First Lien Revolver L + 525 (100 Floor) (7) 6.25 % 02/2026 1,050 1,031 0.2 1,044 Lightspeed Buyer, Inc. (3) Unitranche First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 02/2026 9,950 9,769 1.8 9,897 MDVIP, Inc. (3) Senior Secured First Lien Term Loan L + 425 (100 Floor) (7) 5.25 % 11/2024 9,585 9,585 1.7 9,322 Medsurant Holdings, LLC (3) (14) Senior Secured Second Lien Term Loan 1300 13.00 % 03/2022 7,945 7,899 1.5 7,823 See accompanying notes 11 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value NMN Holdings III Corp. (3) (22) Senior Secured Second Lien Delayed Draw Term Loan L + 775 (7) 7.90 % 11/2026 $ 1,667 $ 1,624 0.3 % $ 1,618 NMN Holdings III Corp. (3) Senior Secured Second Lien Term Loan L + 775 (7) 7.90 % 11/2026 7,222 7,043 1.3 7,010 NMSC Holdings, Inc. (3) Senior Secured Second Lien Term Loan 1200 PIK (8) 12.00 % 10/2023 4,440 4,351 0.7 3,995 Omni Ophthalmic Management Consultants, LLC (3) (4) (6) (10) Senior Secured First Lien Delayed Draw Term Loan 05/2023 — (4 ) — (42 ) Omni Ophthalmic Management Consultants, LLC (3) (5) Senior Secured First Lien Revolver L + 750 (100 Floor) (7) 8.50 % 05/2023 850 842 0.1 793 Omni Ophthalmic Management Consultants, LLC (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (7) 8.50 % 05/2023 6,895 6,832 1.2 6,431 Pinnacle Treatment Centers, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 12/2022 — (5 ) — 2 Pinnacle Treatment Centers, Inc. (3) (6) (10) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2022 686 678 0.1 690 Pinnacle Treatment Centers, Inc. (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2022 8,244 8,180 1.5 8,276 Professional Physical Therapy (3) Senior Secured First Lien Term Loan L + 850 (100 Floor) (including 250 PIK) (15) 9.59 % 12/2022 8,954 8,706 1.1 5,999 PT Network, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 11/2023 — (1 ) — (8 ) PT Network, LLC (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (including 200 PIK) (15) 8.73 % 11/2023 4,776 4,768 0.9 4,678 Safco Dental Supply, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 06/2025 — (8 ) — — Safco Dental Supply, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 06/2025 4,380 4,318 0.8 4,380 Seniorlink Incorporated (3) (5) (6) Unitranche First Lien Revolver P + 600 (9) 9.25 % 07/2026 356 326 0.1 356 Seniorlink Incorporated (3) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 07/2026 6,818 6,619 1.3 6,818 Smile Brands, Inc. (3) (6) (10) Senior Secured First Lien Delayed Draw Term Loan L + 450 (8) 4.82 % 10/2024 602 597 0.1 567 Smile Brands, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2023 — (2 ) — (14 ) Smile Brands, Inc. (3) Senior Secured First Lien Term Loan L + 450 (8) 4.82 % 10/2024 2,063 2,049 0.4 1,970 Smile Doctors LLC (3) (6) (10) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2022 5,557 5,556 1.0 5,442 Smile Doctors LLC (3) (5) (6) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 10/2022 428 428 0.1 417 Smile Doctors LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2022 5,468 5,446 1.0 5,412 Unifeye Vision Partners (3) (6) (17) Senior Secured First Lien Delayed Draw Term Loan P + 375 (100 Floor) (9) 7.00 % 09/2025 813 780 0.1 709 Unifeye Vision Partners (3) (5) (6) Senior Secured First Lien Revolver L + 475 (100 Floor) (8) 5.75 % 09/2025 453 425 0.1 395 Unifeye Vision Partners (3) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 09/2025 5,359 5,268 1.0 5,177 See accompanying notes 12 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Zest Acquisition Corp. (3) Senior Secured First Lien Term Loan L + 350 (15) 4.73 % 03/2025 $ 8,603 $ 8,604 1.4 % $ 7,786 208,777 204,509 36.9 198,032 Household & Personal Products Tranzonic (3) (5) (6) Senior Secured First Lien Revolver L + 450 (100 Floor ) (7) 5.50 % 03/2023 403 401 0.1 403 Tranzonic (3) Senior Secured First Lien Term Loan L + 450 (100 Floor ) (7) 5.50 % 03/2023 3,823 3,801 0.7 3,819 4,226 4,202 0.8 4,222 Insurance Comet Acquisition, Inc. (3) Senior Secured Second Lien Term Loan L + 750 (8) 7.72 % 10/2026 4,632 4,623 0.8 4,169 Integrity Marketing Acquisition, LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor ) (8) 6.50 % 08/2025 5,081 4,966 0.9 5,049 Integrity Marketing Acquisition, LLC (3) (10) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor ) (8) 6.50 % 08/2025 3,072 3,001 0.6 3,053 Integrity Marketing Acquisition, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 08/2025 — (41 ) — (9 ) Integrity Marketing Acquisition, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor ) (8) 6.50 % 08/2025 12,911 12,638 2.4 12,831 Integro Parent, Inc. (3) (18) Senior Secured First Lien Term Loan L + 575 (100 Floor ) (7) 6.75 % 10/2022 475 471 0.1 471 Integro Parent, Inc. (3) (18) Senior Secured Second Lien Delayed Draw Term Loan L + 925 (100 Floor ) (7) 10.25 % 10/2023 380 377 0.1 380 Integro Parent, Inc. (3) (18) Senior Secured Second Lien Term Loan L + 925 (100 Floor ) (7) 10.25 % 10/2023 2,916 2,887 0.5 2,916 The Hilb Group, LLC (3) (6) (10) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor ) (8) 6.75 % 12/2026 258 244 — 252 The Hilb Group, LLC (3) (5) (6) Unitranche First Lien Revolver L + 575 (100 Floor ) (8) 6.75 % 12/2025 231 224 — 230 The Hilb Group, LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor ) (8) 6.75 % 12/2026 3,612 3,530 0.7 3,594 33,568 32,920 6.1 32,936 Materials Kestrel Parent, LLC (3) (4) (6) (21) Unitranche First Lien Revolver 11/2023 — (14 ) — (11 ) Kestrel Parent, LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor ) (8) 6.75 % 11/2025 6,689 6,559 1.2 6,605 Maroon Group, LLC (3) (10) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (8) 7.00 % 08/2022 1,247 1,241 0.2 1,235 Maroon Group, LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor ) (7) 7.00 % 08/2022 349 347 0.1 346 Maroon Group, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor ) (8) 7.00 % 08/2022 2,691 2,678 0.5 2,666 10,976 10,811 2.0 10,841 Pharmaceuticals, Biotechnology & Life Sciences Pharmalogic Holdings Corp. (3) Senior Secured Second Lien Delayed Draw Term Loan L + 800 (7) 8.15 % 12/2023 4,760 4,731 0.9 4,618 Pharmalogic Holdings Corp. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 12/2023 5,880 5,843 1.1 5,704 Pharmalogic Holdings Corp. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 12/2023 5,460 5,425 1.0 5,297 See accompanying notes 13 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Teal Acquisition Co., Inc (3) (4) (5) (6) Unitranche First Lien Delayed Draw Term Loan 09/2026 $ — $ (25 ) — % $ (49 ) Teal Acquisition Co., Inc (3) (5) (6) Unitranche First Lien Revolver L + 625 (100 Floor ) (8) 7.25 % 09/2026 304 265 — 265 Teal Acquisition Co., Inc (3) (8) Unitranche First Lien Term Loan L + 625 (100 Floor ) 7.25 % 09/2026 9,124 8,851 1.6 8,850 Trinity Partners, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 02/2023 — (4 ) — (2 ) Trinity Partners, LLC (3) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (7) 6.00 % 02/2023 3,714 3,685 0.7 3,695 29,242 28,771 5.3 28,378 Retailing Palmetto Moon LLC, (3) Senior Secured First Lien Term Loan 1150 + 250 PIK (14) 14.00 % 10/2021 4,198 3,427 0.6 3,553 Slickdeals Holdings, LLC (3) (4) (6) (13) (21) Unitranche First Lien Revolver 06/2023 — (11 ) — (5 ) Slickdeals Holdings, LLC (3) (13) Unitranche First Lien Term Loan L + 625 (100 Floor ) (15) 7.25 % 06/2024 14,565 14,240 2.7 14,470 18,763 17,656 3.3 18,018 Software & Services Affinitiv, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 08/2024 — (8 ) — (10 ) Affinitiv, Inc. (3) Unitranche First Lien Term Loan L + 700 (100 Floor ) (8) 8.00 % 08/2024 6,451 6,360 1.2 6,338 Ansira Partners, Inc. (3) (12) Unitranche First Lien Delayed Draw Term Loan 12/2024 952 931 0.1 689 Ansira Partners, Inc. (3) (12) Unitranche First Lien Term Loan 12/2024 6,985 6,687 0.9 5,055 Avaap USA LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (7) 6.25 % 03/2023 345 341 0.1 338 Avaap USA LLC (3) (5) Senior Secured First Lien Revolver L + 525 (100 Floor ) (7) 6.25 % 03/2023 650 642 0.1 638 Avaap USA LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (7) 6.25 % 03/2023 3,779 3,732 0.7 3,708 Benesys, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2024 — (2 ) — (7 ) Benesys, Inc. (3) Senior Secured First Lien Term Loan L + 425 (100 Floor ) (7) 5.25 % 10/2024 1,418 1,403 0.3 1,352 C-4 Analytics, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 08/2023 — (5 ) — (4 ) C-4 Analytics, LLC (3) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (7) 5.75 % 08/2023 9,943 9,850 1.8 9,880 CAT Buyer, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 04/2024 — (9 ) — (16 ) CAT Buyer, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor ) (7) 6.50 % 04/2024 6,255 6,164 1.1 6,074 Claritas, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 600 (100 Floor ) (8) 7.00 % 12/2023 113 110 — 113 Claritas, LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (8) 7.00 % 12/2023 1,100 1,092 0.2 1,100 List Partners, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 01/2023 — (4 ) — (8 ) List Partners, Inc. (3) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (7) 6.00 % 01/2023 4,507 4,462 0.8 4,426 MRI Software LLC (3) (4) (6) (10) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (26 ) — (32 ) MRI Software LLC (3) (4) (5) (6) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (6 ) — (17 ) MRI Software LLC (3) (4) (5) (6) Unitranche First Lien Revolver 02/2026 — (17 ) — (31 ) MRI Software LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor ) (8) 6.50 % 02/2026 17,922 17,677 3.3 17,489 See accompanying notes 14 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Ontario Systems, LLC (3) (4) (6) (10) Unitranche First Lien Delayed Draw Term Loan 08/2025 $ — $ (5 ) — % $ (38 ) Ontario Systems, LLC (3) (5) (6) Unitranche First Lien Revolver L + 550 (100 Floor ) (8) 6.50 % 08/2025 100 96 — 83 Ontario Systems, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor ) (7) 6.50 % 08/2025 3,217 3,190 0.6 3,107 Perforce Software, Inc. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 07/2027 5,000 4,977 0.9 5,013 Prism Bidco, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 06/2026 — (24 ) — — Prism Bidco, Inc. (3) Unitranche First Lien Term Loan L + 700 (100 Floor ) (8) 8.00 % 06/2026 7,481 7,265 1.4 7,481 Right Networks, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 11/2024 — (4 ) — — Right Networks, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor ) (7) 7.00 % 11/2024 9,670 9,486 1.8 9,670 Ruffalo Noel Levitz, LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor ) (8) 7.00 % 05/2022 240 238 0.1 236 Ruffalo Noel Levitz, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor ) (8) 7.00 % 05/2022 2,512 2,492 0.5 2,474 Saturn Borrower Inc (3) (4) (5) (6) Unitranche First Lien Revolver 09/2026 — (45 ) — (45 ) Saturn Borrower Inc (3) Unitranche First Lien Term Loan L + 650 (100 Floor ) (8) 7.50 % 09/2026 20,576 19,959 3.7 19,958 SMS Systems Maintenance Services, Inc. (3) (12) Senior Secured Second Lien Term Loan 10/2024 8,442 5,619 0.1 438 SMS Systems Maintenance Services, Inc. (3) (12) Senior Secured Second Lien Term Loan 10/2024 6,450 4,287 0.1 335 SMS Systems Maintenance Services, Inc. (3) (12) Senior Secured Second Lien Term Loan 10/2024 2,859 2,634 0.5 2,859 Transportation Insight, LLC (3) (10) Senior Secured First Lien Delayed Draw Term Loan L + 450 (8) 4.65 % 12/2024 1,283 1,275 0.2 1,228 Transportation Insight, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 450 (7) 4.65 % 12/2024 637 632 0.1 605 Transportation Insight, LLC (3) Senior Secured First Lien Term Loan L + 450 (7) 4.65 % 12/2024 5,155 5,118 0.9 4,935 Trident Technologies, LLC (3) Senior Secured First Lien Term Loan L + 600 (150 Floor ) (8) 7.50 % 12/2025 14,887 14,687 2.8 14,864 Winxnet Holdings LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (7) 7.00 % 06/2023 642 633 0.1 629 Winxnet Holdings LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor ) (7) 7.00 % 06/2023 240 236 — 231 Winxnet Holdings LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor ) (7) 7.00 % 06/2023 1,955 1,932 0.4 1,913 151,766 144,052 24.8 133,051 Technology Hardware & Equipment Onvoy, LLC (3) Senior Secured Second Lien Term Loan L + 1050 (100 Floor ) (7) 11.50 % 02/2025 2,635 2,552 0.5 2,556 Transportation Pilot Air Freight, LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor ) (8) 5.75 % 07/2024 1,199 1,199 0.2 1,180 Pilot Air Freight, LLC (3) (6) (23) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor ) (8) 5.75 % 07/2024 773 770 0.1 753 Pilot Air Freight, LLC (3) (4) (6) (10) Senior Secured First Lien Revolver 07/2024 — — — (2 ) See accompanying notes 15 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Pilot Air Freight, LLC (3) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (8) 5.75 % 07/2024 $ 5,376 $ 5,355 1.0 % $ 5,288 7,348 7,324 1.3 7,219 Total Debt Investments United States $ 853,152 $ 827,942 148.6% $ 798,305 Equity Investments Capital Goods Alion Science and Technology Corporation (3) (24) Common Stock 745 766 0.2 1,321 Envocore Holding, LLC (3) (24) Preferred Stock 1,140 — — — 1,885 766 0.2 1,321 Commercial & Professional Services Allied Universal holdings, LLC (3) (24) Common Stock, Class A 2,240 1,011 0.5 2,459 Battery Solutions, Inc. (3) (13) (24) Preferred Stock, Class A 50 — — — Battery Solutions, Inc. (3) (13) (24) Preferred Stock, Class F 3,333 — — — Battery Solutions, Inc. (3) (13) (24) Preferred Stock, Class E 5,169 3,669 0.4 2,322 IGT Holding LLC (3) (24) Preferred Stock 751 — — — IGT Holding LLC (3) (24) Common Stock 1,000 — — — MHS Acquisition Holdings, LLC (3) (24) Common Stock — 10 — — MHS Acquisition Holdings, LLC (3) (24) Preferred Stock 1 923 0.1 707 My Alarm Center, LLC (3) (24) Common Stock 130 — — — My Alarm Center, LLC (3) (24) Junior Preferred Stock 2 — — — My Alarm Center, LLC (3) (24) Senior Preferred Stock 3 — — — PB Parent, LP (3) (24) Common Stock 1,125 1,125 0.2 1,038 RSI Acquisition, LLC (3) (24) Preferred Stock, Class A 137 137 — 189 TecoStar Holdings, Inc. (3) (24) Common Stock 500 500 0.2 979 14,441 7,375 1.4 7,694 Consumer Services Green Wrench Acquisition, LLC (3) (24) Common Stock 4 410 0.1 511 HGH Investment, LP (3) (24) Common Stock, Class A 4 417 0.1 476 Legalshield (3) (24) Common Stock 1 372 0.1 528 Southern Technical Institute, Inc. (3) (13) (24) Common Stock, Class A 3,164 — — 137 Southern Technical Institute, Inc. (3) (13) (24) Common Stock, Class A1 6,000 — 0.7 3,616 Wrench Group Holdings, LLC (3) (24) Common Stock, Class A 1 115 — 143 9,174 1,314 1.0 5,411 Diversified Financials CBDC Senior Loan Fund LLC (6) (18) (25) (26) Partnership Interest 39,000 39,000 6.3 33,929 GACP II LP (18) (26) (27) Partnership Interest 19,710 19,710 3.7 19,611 58,710 58,710 10.0 53,540 Health Care Equipment & Services ExamWorks Group, Inc. (3) (24) Common Stock 8 750 0.3 1,608 MDVIP, Inc. (3) (24) Common Stock 47 667 0.2 1,169 NMN Holdings LP (3) (24) Common Stock 11 1,111 0.3 1,559 PT Network, LLC (3) (24) Common Stock, Class C — — — — SL Topco Holdings, Inc. (3) (24) Common Stock 68 682 0.1 682 See accompanying notes 16 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Spartan Healthcare Holdings, LLC (3) (24) Common Stock 12 $ 1,191 0.2 % $ 1,147 146 4,401 1.1 6,165 Insurance Integrity Marketing Acquisition, LLC (3) (24) Common Stock 620 648 0.2 941 Integrity Marketing Acquisition, LLC (3) (24) Preferred Stock 1 1,216 0.3 1,440 Integro Parent, Inc. (3) (18) (24) Common Stock 4 454 0.1 863 625 2,318 0.6 3,244 Materials Kestrel Upperco, LLC (3) (24) Common Stock, Class A 42 209 — 228 Media & Entertainment Conisus, LLC (3) (13) (24) Common Stock 4,915 — 0.5 2,711 Conisus, LLC (3) (13) (28) Preferred Stock, Series B 1500 PIK 15.00 % 18,065 9,681 3.4 18,065 22,980 9,681 3.9 20,776 Pharmaceuticals, Biotechnology & Life Sciences Teal Parent Holdings, LP (3) (24) Common Stock 5 456 0.1 456 Retailing Palmetto Moon, LLC (3) (24) Common Stock — — — — Slickdeals Holdings, LLC (3) (13) (24) Common Stock — 991 0.3 1,482 Vivid Seats Ltd. (3) (13) (24) Common Stock 608 608 0.2 785 Vivid Seats Ltd. (3) (13) (24) Preferred Stock 1,892 1,892 0.5 2,824 2,500 3,491 1.0 5,091 Software & Services Saturn Topco LP (3) (24) Common Stock 411 411 0.1 411 SMS Systems Maintenance Services, Inc. (3) (24) Common Stock 1,143 1,145 — — 1,554 1,556 0.1 411 Technology Hardware & Equipment Onvoy, LLC (3) (24) Common Stock, Class A 4 365 0.1 409 Onvoy, LLC (3) (24) Common Stock, Class B 2 — — — 6 365 0.1 409 Transportation Xpress Global Systems, LLC (3) (24) Common Stock 13 — — — Total Equity Investments United States 112,081 $ 90,642 19.5 % $ 104,746 Total United States $ 918,584 168.1 % $ 903,051 Canada Debt Investments Health Care Equipment & Services VetStrategy (3) (18) Unitranche First Lien Term Loan C + 700 (100 Floor ) (29) 8.00 % 07/2027 C$ 9,293 6,733 1.3 6,957 VetStrategy (3) (4) (5) (6) (18) Unitranche First Lien Delayed Draw Term Loan 07/2027 438 (19 ) — 2 VetStrategy (3) (5) (6) (18) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor ) (29) 8.00 % 07/2027 1,093 626 0.1 658 10,824 7,340 1.4 7,617 Telecommunication Services Sandvine Corporation (3) (18) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 11/2026 4,500 4,354 0.8 4,014 See accompanying notes 17 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Total Debt Investments Canada C$ 15,324 $ 11,694 2.2 % $ 11,631 Equity Investments Health Care Equipment & Services VetStrategy (3) (18) (24) Common Stock 750 $ 560 0.1 % $ 561 750 560 0.1 561 Total Equity Investments Canada 750 $ 560 0.1 % $ 561 Total Canada $ 12,254 2.3 % $ 12,192 United Kingdom Debt Investments Commercial & Professional Services Crusoe Bidco Limited (3) (18) Unitranche First Lien Term Loan L + 625 (30) 6.31 % 12/2025 £ 6,067 7,424 1.4 7,778 Crusoe Bidco Limited (3) (6) (18) (31) Unitranche First Lien Delayed Draw Term Loan 12/2025 — — — 16 Crusoe Bidco Limited (3) (6) (18) (31) Unitranche First Lien Delayed Draw Term Loan 12/2025 — — — 1 6,067 7,424 1.4 7,795 Consumer Services Auction Technology Group (3) (18) Unitranche First Lien Term Loan L + 650 (32) 6.62 % 02/2027 3,339 4,237 0.8 4,300 Auction Technology Group (3) (18) Unitranche First Lien Term Loan L + 650 (32) 6.84 % 02/2027 10,687 10,388 2.0 10,687 14,026 14,625 2.8 14,987 Total Debt Investments United Kingdom £ 20,093 $ 22,049 4.2 % $ 22,782 Total United Kingdom $ 22,049 4.2 % $ 22,782 Netherlands Debt Investments Pharmaceuticals, Biotechnology & Life Sciences PharComp Parent B.V. (3) (18) (19) Unitranche First Lien - Last Out Term Loan E + 625 (33) (34) 6.25 % 02/2026 € 6,910 7,646 1.5 8,103 PharComp Parent B.V. (3) (6) (18) (31) Unitranche First Lien Term Loan E + 625 (33) (34) 6.25 % 02/2026 187 148 0.1 285 7,097 7,794 1.6 8,388 Total Debt Investments Netherlands € 7,097 $ 7,794 1.6 % $ 8,388 Total Netherlands $ 7,794 1.6 % $ 8,388 Belgium Debt Investments Commercial & Professional Services MIR Bidco SA (3) (18) Unitranche First Lien Term Loan E + 625 (34) (35) 6.25 % 04/2026 € 9,507 10,480 2.0 10,591 Miraclon Corporation (3) (18) Unitranche First Lien Term Loan L + 625 (15) 7.47 % 04/2026 4,162 4,057 0.7 3,933 13,669 14,537 2.7 14,524 Total Debt Investments Belgium € 13,669 $ 14,537 2.7 % $ 14,524 Equity Investments Commercial & Professional Services MIR Bidco SA (3) (18) (24) Common Stock 1 1 — — See accompanying notes 18 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value MIR Bidco SA (3) (18) (24) Preferred Stock 81 $ 91 — % $ 114 82 92 — 114 Total Equity Investments Belgium 82 $ 92 — % $ 114 Total Belgium $ 14,629 2.7 % $ 14,638 Total Investments $ 975,310 178.9 % $ 961,051 * The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”), CDOR (“C”) or EURIBOR (“E”) and which reset monthly, bi-monthly, quarterly, semiannually or annually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at September 30, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. ** Percentage is based on net assets of $537,090 as of September 30, 2020. (1) All positions held are non-controlled/non-affiliated investments, unless otherwise noted, as defined by the Investment Company Act of 1940, as amended (“1940 Act”). Non-controlled/non-affiliated investments are investments that are neither controlled nor affiliated. (2) All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. (3) The fair value of the investment was determined using significant unobservable inputs. See Note 2 “Summary of Significant Accounting Policies”. (4) The negative cost, if applicable, is the result of the capitalized discount or unfunded commitment being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount or unfunded commitment on the loan. (5) Investment pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (6) Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. See Note 7 “Commitments and Contingencies”. (7) The interest rate on these loans is subject to the greater of a LIBOR floor or 1 month LIBOR plus a base rate. The 1 month LIBOR as of September 30, 2020 was 0.15%. For some of these loans, the interest rate is based on the last reset date. (8) The interest rate on these loans is subject to the greater of a LIBOR floor or 3 month LIBOR plus a base rate. The 3 month LIBOR as of September 30, 2020 was 0.23%. For some of these loans, the interest rate is based on the last reset date. (9) The interest rate on these loans is subject to the U.S. Prime rate, which as of September 30, 2020 was 3.25%. (10) Investment pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (11) Investment pays 4.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (12) The investment is on non-accrual status as of September 30, 2020. (13) As defined in the 1940 Act, the portfolio company is deemed to be a “non-controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 5% or more of the portfolio company’s outstanding voting securities. See Note 3 “Agreements and Related Party Transactions”. (14) Fixed rate investment. (15) The interest rate on these loans is subject to the greater of a LIBOR floor or 6 month LIBOR plus a base rate. The 6 month LIBOR as of September 30, 2020 was 0.26%. For some of these loans, the interest rate is based on the last reset date. (16) Investment pays 2.88% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (17) Investment pays 0.75% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (18) Investment is not a qualifying investment as defined under section 55 (a) of the Investment Company Act of 1940. Qualifying assets must represent at least 70% of total assets at the time of acquisition. The Company’s percentage of non-qualifying assets based on fair value was 13.81% as of September 30, 2020. (19) These loans are unitranche first lien/last-out term loans. In addition to the interest earned based on the effective interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders whereby the loan has been allocated to “first-out” and “last-out” tranches, whereby the “first-out” tranche will have priority as to the “last-out” tranche with respect to payments of principal, interest and any amounts due thereunder. The Company holds the “last-out” tranche. (20) The interest rate on these loans is subject to the greater of a LIBOR floor or 12 month LIBOR plus a base rate. The 12 month LIBOR as of September 30, 2020 was 0.36%. For some of these loans, the interest rate is based on the last reset date. (21) Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (22) Investment pays 3.88% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. See accompanying notes 19 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2020 (in thousands, except share and per share data) (23) Investment pays 1.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (24) Non-income producing security. (25) As defined in the 1940 Act, the portfolio company is deemed to be a “controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 25% or more of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company. See Note 3 “Agreements and Related Party Transactions”. (26) This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. (27) Investment is not redeemable. (28) Income producing equity security. (29) The interest rate on these loans is subject to the greater of a CDOR floor or 3 month CDOR plus a base rate. The 3 month CDOR as of September 30, 2020 was 0.50%. For some of these loans, the interest rate is based on the last reset date. (30) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 3 month GBP LIBOR plus a base rate. The 3 month GBP LIBOR as of September 30, 2020 was 0.06%. For some of these loans, the interest rate is based on the last reset date. (31) Investment pays 2.19% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (32) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 6 month GBP LIBOR plus a base rate. The 6 month GBP LIBOR as of September 30, 2020 was 0.09%. For some of these loans, the interest rate is based on the last reset date. (33) The interest rate on these loans is subject to the greater of a EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of September 30, 2020 was (0.50)%. For some of these loans, the interest rate is based on the last reset date. (34) For EURIBOR rate investments where negative rates can be prevalent, a 0% floor is presumed. (35) The interest rate on these loans is subject to the greater of a EURIBOR floor or 6 month EURIBOR plus a base rate. The 6 month EURIBOR as of September 30, 2020 was (0.48)%. For some of these loans, the interest rate is based on the last reset date. Foreign Currency Exchange Contracts Counterparty Currency Purchased Currency Sold Settlement Unrealized Appreciation (Depreciation) Wells Fargo Bank, N.A. USD 7,089 CAD 9,712 07/31/2025 $ (503 ) Wells Fargo Bank, N.A. USD 864 CAD 635 07/31/2025 368 Wells Fargo Bank, N.A. USD 11,682 EUR 9,222 04/10/2024 532 Wells Fargo Bank, N.A. USD 8,603 EUR 6,703 02/20/2024 510 Wells Fargo Bank, N.A. USD 209 EUR 187 02/20/2024 (17 ) Wells Fargo Bank, N.A. USD 7,975 GBP 5,885 12/01/2023 330 Wells Fargo Bank, N.A. USD 4,317 GBP 3,239 02/13/2025 95 Total $ 1,315 CAD Canadian Dollar EUR Euro GBP Great British Pound PIK Payment In-Kind USD United States Dollar See accompanying notes 20 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value United States Debt Investments Automobiles & Components Auto-Vehicle Parts, LLC (1) Senior Secured First Lien Term Loan L + 450 (100 Floor ) (2) 6.30 % 01/2023 $ 4,720 $ 4,674 1.2 % $ 4,702 Auto-Vehicle Parts, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 01/2023 — (5 ) — (2 ) Continental Battery Company (1) (3) (20) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (2) 7.05 % 01/2020 1,689 1,683 0.4 1,689 Continental Battery Company (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 12/2022 3,973 3,928 1.0 3,973 Continental Battery Company (1) (3) (20) Senior Secured First Lien Revolver L + 525 (100 Floor ) (2) 7.05 % 12/2022 680 671 0.2 680 Continental Battery Company (1) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (2) 7.05 % 12/2022 6,645 6,559 1.6 6,645 Empire Auto Parts, LLC (1) Unitranche First Lien Term Loan L + 550 (100 Floor ) (5) 7.39 % 09/2024 2,469 2,429 0.6 2,493 Empire Auto Parts, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 09/2024 — (6 ) — 4 Empire Auto Parts, LLC (1) Unitranche First Lien Term Loan L + 550 (100 Floor ) (5) 7.39 % 09/2024 2,394 2,349 0.6 2,418 POC Investors, LLC (1) Senior Secured First Lien Term Loan L + 550 (100 Floor ) (5) 7.44 % 11/2021 9,448 9,371 2.3 9,448 POC Investors, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 11/2021 — (7 ) — — 32,018 31,646 7.9 32,050 Capital Goods Alion Science and Technology Corporation Senior Secured First Lien Term Loan L + 450 (100 Floor ) (2) 6.30 % 08/2021 2,968 2,968 0.7 2,977 Alion Science and Technology Corporation (1) (6) Unsecured Debt 11.00 % 08/2022 6,543 6,440 1.6 6,543 Midwest Industrial Rubber (1) Senior Secured First Lien Term Loan L + 550 (100 Floor ) (2) 7.05 % 12/2021 7,180 7,123 1.8 7,180 Midwest Industrial Rubber (1) (3) (4) (20) Senior Secured First Lien Revolver 12/2021 — (4 ) — — Potter Electric Signal Company (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 425 (100 Floor ) (5) 6.13 % 12/2021 476 453 0.1 468 Potter Electric Signal Company (1) (3) (20) Senior Secured First Lien Revolver P + 325 (7) 8.00 % 12/2024 31 26 — 28 Potter Electric Signal Company (1) Senior Secured First Lien Term Loan L + 425 (100 Floor ) (8) 6.54 % 12/2025 2,506 2,483 0.6 2,493 19,704 19,489 4.8 19,689 Commercial & Professional Services ASP MCS Acquisition Corp. Senior Secured First Lien Term Loan L + 475 (100 Floor ) (5) 6.64 % 05/2024 5,241 5,223 0.6 2,495 BFC Solmetex LLC & Bonded Filter Co. LLC (1) (3) (2) Unitranche First Lien Revolver L + 650 (100 Floor ) (5) 8.45 % 09/2023 60 54 — 60 BFC Solmetex LLC & Bonded Filter Co. LLC (1) (20) Unitranche First Lien Revolver L + 650 (100 Floor ) (5) 8.45 % 09/2023 750 739 0.2 750 BFC Solmetex LLC & Bonded Filter Co. LLC (1) Unitranche First Lien Term Loan L + 650 (100 Floor ) (5) 8.45 % 09/2023 5,981 5,885 1.5 5,981 BFC Solmetex LLC & Bonded Filter Co. LLC (1) Unitranche First Lien Term Loan L + 650 (100 Floor ) (5) 8.45 % 09/2023 624 614 0.1 624 BFC Solmetex LLC & Bonded Filter Co. LLC (1) (3) (4) Unitranche First Lien Term Loan 09/2023 — (6 ) — — CHA Holdings, Inc. (1) Senior Secured First Lien Term Loan L + 450 (100 Floor ) (5) 6.44 % 04/2025 4,855 4,835 1.2 4,849 CHA Holdings, Inc. (1) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor ) (5) 6.44 % 04/2025 1,023 1,020 0.2 1,022 See accompanying notes 21 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value DFS Intermediate Holdings, LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.02 % 03/2022 $ 8,793 $ 8,707 2.2 % $ 8,793 DFS Intermediate Holdings, LLC (1) (3) (20) Senior Secured First Lien Revolver L + 525 (100 Floor ) (2) 7.02 % 03/2022 1,644 1,620 0.4 1,644 DFS Intermediate Holdings, LLC (1) (3) (20) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (2) 6.95 % 03/2022 3,473 3,431 0.8 3,473 GH Holding Company (1) Senior Secured First Lien Term Loan L + 450 (2) 6.30 % 02/2023 1,474 1,469 0.3 1,463 GI Revelation Acquisition LLC Senior Secured First Lien Term Loan L + 500 (2) 6.80 % 04/2025 7,396 7,366 1.7 6,999 Hepaco, LLC (1) (3) (20) Senior Secured First Lien Revolver L + 475 (100 Floor ) (2) 6.54 % 08/2023 660 658 0.2 660 Hepaco, LLC (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (2) 6.55 % 08/2024 5,151 5,112 1.3 5,151 Hepaco, LLC (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor ) (2) 6.55 % 08/2024 3,978 3,945 1.0 3,978 Jordan Healthcare, Inc. (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 07/2022 4,021 3,998 1.0 4,036 Jordan Healthcare, Inc. (1) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (5) 7.94 % 07/2022 698 694 0.2 701 Jordan Healthcare, Inc. (1) (3) (20) Senior Secured First Lien Revolver L + 600 (100 Floor ) (5) 7.94 % 07/2022 294 292 0.1 296 MHS Acquisition Holdings, LLC (1) Senior Secured Second Lien Term Loan L + 875 (100 Floor ) (5) 10.69 % 03/2025 8,102 7,929 1.9 7,818 MHS Acquisition Holdings, LLC (1) Senior Secured Second Lien Delayed Draw Term Loan L + 875 (100 Floor ) (5) 10.69 % 03/2025 467 460 0.1 450 MHS Acquisition Holdings, LLC (1) Unsecured Debt 1350 PIK 13.50 % 03/2026 714 706 0.2 653 MHS Acquisition Holdings, LLC (1) Unsecured Debt 1350 PIK 13.50 % 03/2026 238 236 0.1 218 Pye-Barker Fire & Safety, LLC (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (5) 7.67 % 11/2025 10,125 9,850 2.5 10,125 Pye-Barker Fire & Safety, LLC (1) (3) (4) Unitranche First Lien Delayed Draw Term Loan 11/2025 — (51 ) — — Receivable Solutions, Inc. (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (5) 6.94 % 10/2024 2,194 2,158 0.5 2,194 Receivable Solutions, Inc. (1) (3) (20) Senior Secured First Lien Revolver L + 500 (100 Floor ) (2) 6.80 % 10/2024 30 25 — 30 SavATree, LLC (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (5) 6.94 % 06/2022 3,956 3,916 1.0 3,956 SavATree, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 06/2022 — (5 ) — — SavATree, LLC (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor ) (5) 6.89 % 06/2022 154 147 — 154 TecoStar Holdings, Inc. (1) Senior Secured Second Lien Term Loan L + 850 (100 Floor ) (5) 10.24 % 11/2024 5,000 4,909 1.2 5,000 UP Acquisition Corp (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (2) 7.55 % 05/2024 4,378 4,299 1.1 4,378 UP Acquisition Corp (1) (3) (20) Unitranche First Lien Revolver L + 575 (100 Floor ) (5) 7.55 % 05/2024 73 51 — 73 UP Acquisition Corp (1) (3) (20) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor ) (2) 7.55 % 05/2024 276 271 0.1 276 Valet Waste Holdings, Inc. Senior Secured First Lien Term Loan L + 375 (2) 5.54 % 09/2025 14,812 14,781 3.6 14,683 See accompanying notes 22 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Xcentric Mold and Engineering Acquisition Company, LLC (1) Senior Secured First Lien Term Loan L + 700 (100 Floor) (including 100 PIK) (2) 8.69 % 01/2022 $ 4,933 $ 4,889 1.1 % $ 4,587 Xcentric Mold and Engineering Acquisition Company, LLC (1) Senior Secured First Lien Revolver L + 700 (100 Floor) (including 100 PIK) (2) 8.69 % 01/2022 703 697 0.2 654 112,271 110,924 26.6 108,224 Consumer Durables & Apparel EiKo Global, LLC (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 06/2023 3,256 3,207 0.8 3,256 EiKo Global, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 06/2023 — (11 ) — — 3,256 3,196 0.8 3,256 Consumer Services Colibri Group LLC (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (5) 7.70 % 05/2025 8,209 8,021 2.0 8,200 Colibri Group LLC (1) (21) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor ) (5) 7.68 % 05/2025 1,350 1,320 0.3 1,348 Colibri Group LLC (1) (3) (20) Unitranche First Lien Revolver L + 575 (100 Floor ) (2) 7.55 % 05/2025 267 244 0.1 266 COP Home Services Holdings, Inc. (1) (3) (4) (20) Senior Secured First Lien Term Loan 05/2025 — (8 ) — (2 ) COP Home Services Holdings, Inc. (1) (21) Senior Secured First Lien Term Loan L + 450 (100 Floor ) (5) 6.40 % 05/2025 3,474 3,411 0.8 3,457 COP Home Services Holdings, Inc. (1) (3) (4) Senior Secured First Lien Delayed Draw Term Loan 05/2025 — (9 ) — (4 ) HGH Purchaser, Inc. (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (2) 7.69 % 11/2025 8,108 7,910 2.0 8,108 HGH Purchaser, Inc. (1) (3) (4) (21) Unitranche First Lien Delayed Draw Term Loan 11/2025 — (41 ) — — HGH Purchaser, Inc. (1) (3) (20) Unitranche First Lien Revolver P + 500 (7) 9.75 % 11/2025 186 161 — 186 JLL XDD, Inc. (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (5) 6.69 % 12/2023 2,134 2,086 0.5 2,134 Learn-It Systems, LLC (1) Senior Secured First Lien Term Loan L + 450 (50 Floor ) (5) 6.40 % 03/2025 4,367 4,265 1.1 4,367 Learn-It Systems, LLC (1) (3) (20) Senior Secured First Lien Revolver P + 350 (7) 8.25 % 03/2025 492 478 0.1 492 Learn-It Systems, LLC (1) (3) (22) Senior Secured First Lien Delayed Draw Term Loan L + 450 (50 Floor ) (5) 6.50 % 03/2025 311 251 0.1 311 New Mountain Learning (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 03/2024 1,825 1,798 0.4 1,579 New Mountain Learning (1) (3) (20) Senior Secured First Lien Revolver L + 600 (100 Floor ) (5) 7.94 % 03/2024 475 467 0.1 394 New Mountain Learning (1) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (5) 7.94 % 03/2024 370 365 0.1 320 Pre-Paid Legal Services, Inc. Senior Secured Second Lien Term Loan L + 750 (2) 9.30 % 05/2026 9,333 9,249 2.3 9,318 Teaching Strategies LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 05/2024 9,234 9,055 2.3 9,327 Teaching Strategies LLC (1) (3) (20) Unitranche First Lien Revolver L + 600 (100 Floor ) (5) 7.94 % 05/2024 183 171 — 189 United Language Group, Inc. (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (2) 7.88 % 12/2021 4,689 4,638 1.1 4,344 United Language Group, Inc. (1) (20) Senior Secured First Lien Revolver L + 600 (100 Floor ) (2) 7.88 % 12/2021 400 395 0.1 370 Vistage Worldwide, Inc. Senior Secured First Lien Term Loan L + 400 (100 Floor ) (2) 5.80 % 02/2025 6,473 6,483 1.6 6,441 See accompanying notes 23 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Wrench Group LLC (1) Senior Secured First Lien Term Loan L + 425 (5) 6.19 % 04/2026 $ 3,089 $ 3,060 0.8 % $ 3,097 Wrench Group LLC (1) (3) (23) Senior Secured First Lien Delayed Draw Term Loan 04/2026 — — — 2 Wrench Group LLC (1) Senior Secured Second Lien Term Loan L + 788 (10) 9.82 % 04/2027 2,500 2,429 0.6 2,500 67,469 66,199 16.4 66,744 Diversified Financials CC SAG Acquisition Corp. (1) Unitranche First Lien Term Loan L + 500 (100 Floor ) (5) 6.89 % 09/2025 7,182 7,021 1.8 7,132 CC SAG Acquisition Corp. (1) (3) (21) Unitranche First Lien Delayed Draw Term Loan L + 500 (100 Floor ) (2) 6.76 % 09/2025 172 142 — 157 CC SAG Acquisition Corp. (1) (3) (4) (20) Unitranche First Lien Revolver 09/2025 — (23 ) — (7 ) 7,354 7,140 1.8 7,282 Energy BJ Services, LLC (1) (11) Unitranche First Lien - Last Out Term Loan L + 1033 (150 Floor ) (5) 12.43 % 01/2023 8,287 8,220 2.0 8,287 BJ Services, LLC (1) Unitranche First Lien Term Loan L + 700 (150 Floor ) (5) 9.10 % 01/2023 4,875 4,836 1.2 4,875 13,162 13,056 3.2 13,162 Food & Staples Retailing BJH Holdings III Corp. (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (2) 7.55 % 08/2025 13,715 13,520 3.4 13,647 Isagenix International, LLC Senior Secured First Lien Term Loan L + 575 (100 Floor ) (5) 7.70 % 06/2025 6,471 6,442 1.1 4,652 PetIQ, LLC (1) (9) Senior Secured First Lien Term Loan L + 450 (100 Floor ) (2) 6.30 % 07/2025 15,000 14,868 3.7 15,000 35,186 34,830 8.2 33,299 Food, Beverage & Tobacco Mann Lake Ltd. (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (5) 6.91 % 10/2024 3,865 3,800 1.0 3,826 Mann Lake Ltd. (1) (3) (20) Senior Secured First Lien Revolver L + 500 (100 Floor ) (5) 6.91 % 10/2024 444 430 0.1 435 4,309 4,230 1.1 4,261 Health Care Equipment & Services Abode Healthcare, Inc. (1) Senior Secured First Lien Term Loan L + 425 (100 Floor ) (5) 6.16 % 08/2025 4,788 4,697 1.2 4,716 Abode Healthcare, Inc. (1) (3) (20) Senior Secured First Lien Revolver L + 425 (100 Floor ) (5) 6.16 % 08/2025 288 266 0.1 270 Ameda, Inc. (1) Senior Secured First Lien Term Loan L + 700 (100 Floor ) (2) 8.77 % 09/2022 2,279 2,254 0.6 2,244 Ameda, Inc. (1) (3) (20) Senior Secured First Lien Revolver L + 700 (100 Floor ) (2) 8.77 % 09/2022 188 184 — 183 Avalign Technologies, Inc. (1) Senior Secured First Lien Term Loan L + 450 (2) 6.30 % 12/2025 17,009 16,858 4.2 16,881 Centauri Health Solutions, Inc. (1) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor ) (2) 6.55 % 01/2023 891 881 0.2 900 Centauri Health Solutions, Inc. (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (2) 6.55 % 01/2023 14,546 14,387 3.6 14,692 Centauri Health Solutions, Inc. (1) (3) (4) (20) Senior Secured First Lien Revolver 01/2023 — (9 ) — 16 Centria Subsidiary Holdings, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 12/2025 — (59 ) — — Centria Subsidiary Holdings, LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (5) 7.89 % 12/2025 11,842 11,490 2.9 11,842 Clarkson Eyecare, LLC (1) Unitranche First Lien Term Loan L + 625 (100 Floor ) (2) 8.05 % 04/2021 9,013 8,869 2.2 8,877 Clarkson Eyecare, LLC (1) Unitranche First Lien Term Loan L + 625 (100 Floor ) (2) 8.05 % 04/2021 5,950 5,853 1.4 5,861 See accompanying notes 24 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value CRA MSO, LLC (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (2) 6.55 % 12/2023 $ 1,237 $ 1,218 0.3 % $ 1,237 CRA MSO, LLC (1) (3) (4) (20) Senior Secured First Lien Delayed Draw Term Loan 12/2023 — (6 ) — — CRA MSO, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 12/2023 — (3 ) — — ExamWorks Group, Inc. (1) Senior Secured Second Lien Term Loan L + 725 (100 Floor ) (2) 9.05 % 07/2024 5,735 5,621 1.4 5,745 GrapeTree Medical Staffing, LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 10/2022 1,662 1,644 0.4 1,662 GrapeTree Medical Staffing, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 10/2022 — (4 ) — — GrapeTree Medical Staffing, LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 10/2022 1,396 1,373 0.3 1,396 MDVIP, Inc. Senior Secured First Lien Term Loan L + 425 (100 Floor ) (2) 6.05 % 11/2024 9,659 9,659 2.4 9,611 NMN Holdings III Corp. (1) Senior Secured Second Lien Term Loan Term Loan L + 775 (2) 9.49 % 11/2026 7,222 7,027 1.8 7,182 NMN Holdings III Corp. (1) (3) (4) (24) Senior Secured Second Lien Delayed Draw Term Loan 11/2026 — (21 ) — (9 ) NMSC Holdings, Inc. (1) Senior Secured Second Lien Term Loan L + 1000 (2) 11.80 % 10/2023 4,307 4,202 1.1 4,286 Omni Ophthalmic Management Consultants, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 05/2023 — (10 ) — (3 ) Omni Ophthalmic Management Consultants, LLC (1) (3) (4) (21) Senior Secured First Lien Delayed Draw Term Loan 05/2023 — (9 ) — (4 ) Omni Ophthalmic Management Consultants, LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 05/2023 6,947 6,868 1.7 6,924 Professional Physical Therapy (1) Senior Secured First Lien Term Loan L + 675 (100 Floor) (including 75 PIK) (5) 8.44 % 12/2022 8,906 8,574 1.8 7,488 PT Network, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 11/2023 — (1 ) — (8 ) PT Network, LLC (1) Senior Secured First Lien Term Loan L + 750 (100 Floor) (including 200 PIK) (10) 9.44 % 11/2023 4,727 4,718 1.1 4,627 Safco Dental Supply, LLC (1) Unitranche First Lien Term Loan L + 550 (100 Floor ) (5) 7.25 % 06/2025 4,549 4,475 1.1 4,549 Safco Dental Supply, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 06/2025 — (10 ) — — Smile Brands, Inc. (1) (3) (20) Senior Secured First Lien Revolver P + 350 (7) 8.25 % 10/2023 40 38 — 38 Smile Brands, Inc. (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 450 (5) 6.43 % 10/2024 378 372 0.1 374 Smile Brands, Inc. (1) Senior Secured First Lien Term Loan L + 450 (10) 6.70 % 10/2024 2,079 2,062 0.5 2,069 Smile Doctors LLC (1) (3) (20) Senior Secured First Lien Revolver L + 600 (100 Floor ) (5) 7.94 % 10/2022 139 138 — 139 Smile Doctors LLC (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 10/2022 3,173 3,146 0.8 3,173 Smile Doctors LLC (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (5) 7.94 % 10/2022 1,685 1,683 0.4 1,685 Unifeye Vision Partners (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (5) 6.89 % 09/2025 5,400 5,296 1.3 5,400 See accompanying notes 25 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Unifeye Vision Partners (1) (3) (20) Senior Secured First Lien Revolver L + 500 (100 Floor ) (5) 6.89 % 09/2025 $ 227 $ 194 0.1 % $ 227 Unifeye Vision Partners (1) (3) (4) Senior Secured First Lien Delayed Draw Term Loan 09/2025 — (29 ) — — Zest Acquisition Corp. Senior Secured First Lien Term Loan L + 350 (2) 5.25 % 03/2025 8,830 8,831 2.1 8,432 145,092 142,717 35.1 142,702 Household & Personal Products Tranzonic (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (2) 6.55 % 03/2023 3,854 3,826 0.9 3,854 Tranzonic (1) (3) (4) (20) Senior Secured First Lien Revolver 03/2023 — (3 ) — — 3,854 3,823 0.9 3,854 Insurance Comet Acquisition, Inc. (1) Senior Secured Second Lien Term Loan L + 750 (5) 9.41 % 10/2026 4,632 4,622 1.1 4,411 Integrity Marketing Acquisition, LLC (1) (3) (21) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor ) (5) 7.81 % 02/2020 3,543 3,433 0.8 3,517 Integrity Marketing Acquisition, LLC (1) (3) (4) (21) Unitranche First Lien Delayed Draw Term Loan 07/2021 — (37 ) — (15 ) Integrity Marketing Acquisition, LLC (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (5) 7.67 % 08/2025 13,009 12,699 3.2 12,944 Integrity Marketing Acquisition, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 08/2025 — (48 ) — (7 ) Integro Parent, Inc. (1) (9) Senior Secured First Lien Term Loan L + 575 (100 Floor ) (2) 7.55 % 10/2022 477 473 0.1 470 Integro Parent, Inc. (1) (9) Senior Secured Second Lien Term Loan L + 925 (100 Floor ) (2) 11.05 % 10/2023 2,916 2,882 0.7 2,916 Integro Parent, Inc. (1) (9) Senior Secured Second Lien Delayed Draw Term Loan L + 925 (100 Floor ) (2) 10.99 % 10/2023 380 377 0.1 380 The Hilb Group, LLC (1) (3) (4) Unitranche First Lien Revolver 12/2025 — (8 ) — (2 ) The Hilb Group, LLC (1) (20) Unitranche First Lien Term Loan L + 575 (100 Floor ) (2) 7.69 % 12/2026 3,640 3,549 0.9 3,612 The Hilb Group, LLC (1) (3) (4) (21) Unitranche First Lien Term Loan 12/2026 — (13 ) — (8 ) 28,597 27,929 6.9 28,218 Materials Kestrel Parent, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 11/2023 — (17 ) — 13 Kestrel Parent, LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (2) 7.78 % 11/2025 6,740 6,593 1.7 6,841 Maroon Group, LLC (1) Unitranche First Lien Term Loan L + 675 (100 Floor ) (5) 8.72 % 08/2022 2,712 2,693 0.7 2,712 Maroon Group, LLC (1) (3) (20) Unitranche First Lien Revolver L + 675 (100 Floor ) (2) 8.56 % 08/2022 98 96 — 98 Maroon Group, LLC (1) (21) Unitranche First Lien Delayed Draw Term Loan L + 675 (100 Floor ) (5) 8.72 % 08/2022 1,250 1,242 0.3 1,250 10,800 10,607 2.7 10,914 Pharmaceuticals, Biotechnology & Life Sciences Trinity Partners, LLC (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (2) 6.80 % 02/2023 3,744 3,706 0.9 3,744 Trinity Partners, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 02/2023 — (6 ) — — 3,744 3,700 0.9 3,744 Retailing Slickdeals Holdings, LLC (1) (3) (4) (19) (25) Unitranche First Lien Revolver 06/2023 — (14 ) — — See accompanying notes 26 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Slickdeals Holdings, LLC (1) (19) Unitranche First Lien Term Loan L + 625 (100 Floor ) (2) 7.99 % 06/2024 $ 14,726 $ 14,342 3.6 % $ 14,726 Strategic Partners, Inc. (1) Senior Secured First Lien Term Loan L + 375 (100 Floor ) (2) 5.55 % 06/2023 6,322 6,313 1.6 6,338 21,048 20,641 5.2 21,064 Software & Services Affinitiv, Inc. (1) Unitranche First Lien Term Loan L + 525 (100 Floor ) (5) 7.17 % 08/2024 6,500 6,393 1.6 6,500 Affinitiv, Inc. (1) (3) (4) (20) Unitranche First Lien Revolver 08/2024 — (14 ) — — Ansira Partners, Inc. (1) Unitranche First Lien Term Loan L + 575 (100 Floor ) (2) 7.55 % 12/2022 6,867 6,829 1.6 6,477 Ansira Partners, Inc. (1) (3) (21) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor ) (2) 7.49 % 12/2022 626 622 0.1 572 Avaap USA LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 03/2023 3,808 3,748 1.0 3,846 Avaap USA LLC (1) (20) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (2) 7.02 % 03/2023 347 342 0.1 351 Avaap USA LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 03/2023 — (10 ) — 7 Benesys, Inc. (1) Senior Secured First Lien Term Loan L + 425 (100 Floor ) (2) 6.05 % 10/2024 1,432 1,414 0.4 1,411 Benesys, Inc. (1) (3) (20) Senior Secured First Lien Revolver L + 425 (100 Floor ) (2) 6.05 % 10/2024 48 46 — 46 C-4 Analytics, LLC (1) Senior Secured First Lien Term Loan L + 475 (100 Floor ) (2) 6.55 % 08/2023 10,313 10,195 2.5 10,313 C-4 Analytics, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 08/2023 — (6 ) — — CAT Buyer, LLC (1) Unitranche First Lien Term Loan L + 550 (100 Floor ) (2) 7.30 % 04/2024 6,302 6,194 1.5 6,272 CAT Buyer, LLC (1) (3) (20) Unitranche First Lien Revolver L + 550 (2) 7.30 % 04/2024 151 140 — 149 Claritas, LLC (1) Senior Secured First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 12/2023 1,121 1,112 0.3 1,121 Claritas, LLC (1) (3) (2) Senior Secured First Lien Revolver L + 600 (100 Floor ) (2) 7.80 % 12/2023 120 118 — 120 List Partners, Inc. (1) Senior Secured First Lien Term Loan L + 500 (100 Floor ) (2) 6.77 % 01/2023 4,623 4,563 1.1 4,649 List Partners, Inc. (1) (3) (4) (20) Senior Secured First Lien Revolver 01/2023 — (5 ) — 3 Ontario Systems, LLC (1) Unitranche First Lien Term Loan L + 550 (100 Floor ) (2) 7.30 % 08/2025 3,242 3,211 0.8 3,242 Ontario Systems, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 08/2025 — (5 ) — — Ontario Systems, LLC (1) (3) (4) (21) Unitranche First Lien Delayed Draw Term Loan 08/2025 — (5 ) — — Perforce Software, Inc. Senior Secured First Lien Term Loan L + 450 (2) 6.30 % 07/2026 12,469 12,410 3.1 12,492 Right Networks, LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (2) 7.70 % 11/2024 9,743 9,530 2.4 9,743 Right Networks, LLC (1) (3) (4) (2) Unitranche First Lien Revolver 11/2024 — (5 ) — — Ruffalo Noel Levitz, LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (5) 7.94 % 05/2022 2,531 2,503 0.6 2,518 Ruffalo Noel Levitz, LLC (1) (3) (4) (20) Unitranche First Lien Revolver 05/2022 — (3 ) — (2 ) SMS Systems Maintenance Services, Inc. (1) (12) Senior Secured Second Lien Term Loan 10/2024 6,156 5,619 0.6 2,471 SMS Systems Maintenance Services, Inc. (1) (12) Senior Secured Second Lien Term Loan 10/2024 4,704 4,287 0.5 1,888 SMS Systems Maintenance Services, Inc. (1) (12) Senior Secured Second Lien Term Loan 10/2024 2,859 2,670 0.5 2,193 See accompanying notes 27 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Transportation Insight, LLC (1) (3) (4) (20) Senior Secured First Lien Revolver 12/2024 $ — $ (6 ) — % $ (4 ) Transportation Insight, LLC (1) Senior Secured First Lien Term Loan L + 450 (2) 6.30 % 12/2024 5,194 5,151 1.3 5,168 Transportation Insight, LLC (1) (3) (21) Senior Secured First Lien Delayed Draw Term Loan L + 450 (5) 6.20 % 12/2024 713 702 0.2 706 Trident Technologies, LLC (1) Senior Secured First Lien Term Loan L + 600 (150 Floor ) (2) 7.62 % 12/2025 15,000 14,775 3.6 14,775 Winxnet Holdings LLC (1) (3) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor ) (2) 7.76 % 06/2023 647 632 0.2 634 Winxnet Holdings LLC (1) Unitranche First Lien Term Loan L + 600 (100 Floor ) (2) 7.76 % 06/2023 1,970 1,941 0.5 1,945 Winxnet Holdings LLC (1) (3) (20) Unitranche First Lien Revolver L + 600 (100 Floor ) (2) 7.76 % 06/2023 80 74 — 75 107,566 105,162 24.5 99,681 Technology Hardware & Equipment Onvoy, LLC (1) Senior Secured Second Lien Term Loan L + 1050 (100 Floor ) (2) 12.30 % 02/2025 2,635 2,541 0.6 2,339 Transportation Pilot Air Freight, LLC (1) Senior Secured First Lien Term Loan L + 525 (100 Floor ) (2) 7.05 % 07/2024 5,417 5,393 1.3 5,417 Pilot Air Freight, LLC (1) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor ) (2) 7.05 % 07/2024 1,209 1,209 0.3 1,209 Pilot Air Freight, LLC (1) (3) (4) (26) Senior Secured First Lien Delayed Draw Term Loan 07/2024 — (5 ) — — Pilot Air Freight, LLC (1) (3) (4) (21) Senior Secured First Lien Revolver 07/2024 — (1 ) — — 6,626 6,596 1.6 6,626 Total Debt Investments United States $ 624,691 $ 614,426 149.2 % $ 607,109 Equity Investments Automobiles & Components APC Auto Tech Holdings, LLC (1) (13) (19) Common Stock 2,427 1,090 — 162 APC Auto Technology Intermediate, LLC (1) (13) (19) Preferred Stock 757 757 0.2 767 3,184 1,847 0.2 929 Capital Goods Alion Science and Technology Corporation (1) (13) Common Stock 745,504 766 0.3 1,207 Commercial & Professional Services Allied Universal holdings, LLC (1) (13) Common Stock, Class A 2,240,375 1,011 0.5 2,199 MHS Acquisition Holdings, LLC (1) (13) Common Stock 912 913 0.2 586 MHS Acquisition Holdings, LLC (1) (13) Preferred Stock 20 20 — — PB Parent, LP (1) (13) Common Stock 1,125,000 1,125 0.3 1,125 RSI Acquisition, LLC (1) (13) Preferred Stock, Class A 137,000 137 — 137 TecoStar Holdings, Inc. (1) (13) Common Stock 500,000 $ 500 0.2 % $ 973 4,003,307 3,706 1.2 5,020 Consumer Services Green Wrench Acquisition, LLC (1) (13) Common Stock 3,906 391 0.1 391 HGH Investment, LP (1) (13) Common Stock, Class A 4,171 417 0.1 416 Legalshield (1) (13) Common Stock 372 372 0.2 719 See accompanying notes 28 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value Wrench Group Holdings, LLC (1) (13) Common Stock, Class A 1,094 $ 109 — % $ 109 9,543 1,289 0.4 1,635 Diversified Financials CBDC Senior Loan Fund LLC (9) (14) (15) Partnership Interest 34,000,000 34,000 8.5 34,442 GACP II LP (9) (15) Partnership Interest 18,067,282 18,067 4.5 18,564 52,067,282 52,067 13.0 53,006 Health Care Equipment & Services ExamWorks Group, Inc. (1) (13) Common Stock 7,500 750 0.3 1,344 MDVIP, Inc. (1) (13) Common Stock 46,807 667 0.2 922 NMN Holdings LP (1) (13) Common Stock 11,111 1,111 0.3 1,009 PT Network, LLC (1) (13) Common Stock, Class C 1 — — — Spartan Healthcare Holdings, LLC (1) (13) Common Stock 11,843 1,184 0.3 1,185 77,262 3,712 1.1 4,460 Insurance Integrity Marketing Acquisition, LLC (1) (13) Common Stock 619,562 648 0.2 648 Integrity Marketing Acquisition, LLC (1) (13) Preferred Stock 1,247 1,213 0.3 1,247 Integro Parent, Inc. (1) (9) (13) Common Stock 4,468 454 0.2 878 625,277 2,315 0.7 2,773 Materials Kestrel Upperco, LLC (1) (13) Common Stock, Class A 41,791 209 0.1 223 Retailing Slickdeals Holdings, LLC (1) (13) (19) Common Stock 109 1,091 0.3 1,207 Vivid Seats Ltd. (1) (13) (19) Common Stock 608,108 608 0.3 1,083 Vivid Seats Ltd. (1) (13) (19) Preferred Stock 1,891,892 1,892 0.6 2,563 2,500,109 3,591 1.2 4,853 Software & Services SMS Systems Maintenance Services, Inc. (1) (13) Common Stock 1,142,789 1,144 — — Technology Hardware & Equipment Onvoy, LLC (1) (13) Common Stock, Class A 3,649 365 0.1 228 Onvoy, LLC (1) (13) Common Stock, Class B 2,536 — — — 6,185 365 0.1 228 Total Equity Investments United States 61,222,233 $ 71,011 18.3 % $ 74,334 Total United States $ 685,437 167.5 % $ 681,443 Canada Debt Investments Software & Services Corel Corporation (9) Senior Secured First Lien Term Loan L + 500 (12) 6.91 % 07/2026 $ 12,500 11,905 3.0 12,109 Total Debt Investments Canada $ 12,500 $ 11,905 3.0 % $ 12,109 Total Canada $ 11,905 3.0 % $ 12,109 See accompanying notes 29 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) Company/Security/Country † ‡ Investment Type Interest Term * Interest Rate Maturity / Dissolution Date Principal Amount, Par Value or Shares Cost Percentage of Net Assets ** Fair Value France Debt Investments Technology Hardware & Equipment Parkeon, Inc. (9) Senior Secured First Lien Term Loan E + 525 (17) 5.25 % 04/2023 € 1,995 $ 2,136 0.5 % $ 2,248 1,995 2,136 0.5 2,248 Total Debt Investments France € 1,995 $ 2,136 0.5 % $ 2,248 Total France $ 2,136 0.5 % $ 2,248 United Kingdom Debt Investments Commercial & Professional Services Crusoe Bidco Limited (1) (3) (9) Unitranche First Lien Delayed Draw Term Loan 12/2025 £ — — — — Crusoe Bidco Limited (1) (3) (9) Unitranche First Lien Delayed Draw Term Loan 12/2025 — — — — Crusoe Bidco Limited (1) (9) Unitranche First Lien Term Loan L + 625 (18) 7.04 % 12/2025 6,067 7,402 2.0 8,038 6,067 7,402 2.0 8,038 Total Debt Investments United Kingdom £ 6,067 $ 7,402 2.0 % $ 8,038 Total United Kingdom $ 7,402 2.0 % $ 8,038 Netherlands Debt Investments Pharmaceuticals, Biotechnology & Life Sciences PharComp Parent B.V. (1) (9) (11) Unitranche First Lien - Last Out Term Loan E + 650 (17) 6.50 % 02/2026 € 6,910 7,625 1.9 7,756 PharComp Parent B.V. (1) (3) (9) Unitranche First Lien Term Loan 02/2026 — — — — 6,910 7,625 1.9 7,756 Total Debt Investments Netherlands € 6,910 $ 7,625 1.9 % $ 7,756 Total Netherlands $ 7,625 1.9 % $ 7,756 Belgium Debt Investments Commercial & Professional Services MIR Bidco SA (1) (9) Unitranche First Lien Term Loan E + 600 (17) 6.00 % 04/2026 € $9,507 $ 10,451 2.6 % $ 10,672 Miraclon Corporation (1) (9) Unitranche First Lien Term Loan L + 600 (10) 7.96 % 04/2026 $ 4,161 4,046 1.0 4,161 Total Debt Investments Belgium 13,668 $ 14,497 3.6 % $ 14,833 Equity Investments Commercial & Professional Services MIR Bidco SA (1) (9) (13) Common Stock 921 1 — 1 MIR Bidco SA (1) (9) (13) Preferred Stock 81,384 92 — 103 82,305 93 — 104 Total Equity Investments Belgium 82,305 $ 93 — % $ 104 Total Belgium $ 14,590 3.6 % $ 14,937 Total Investments $ 729,095 178.5 % $ 726,531 * The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”) or EURIBOR (“E”) and which reset monthly, bi-monthly, quarterly, semiannually or annually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at December 31, 2019. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. ** Percentage is based on net assets of $406,917 as of December 31, 2019. See accompanying notes 30 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) † All positions held are non-controlled/non-affiliated investments, unless otherwise noted, as defined by the Investment Company Act of 1940, as amended (“1940 Act”). Non-controlled/non-affiliated investments are investments that are neither controlled nor affiliated. ‡ All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. (1) The fair value of the investment was determined using significant unobservable inputs. See Note 2 “Summary of Significant Accounting Policies”. (2) The interest rate on these loans is subject to the greater of a LIBOR floor or 1 month LIBOR plus a base rate. The 1 month LIBOR as of December 31, 2019 was 1.76%. (3) Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. See Note 8 “Commitments and Contingencies”. (4) The negative cost, if applicable, is the result of the capitalized discount or unfunded commitment being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount or unfunded commitment on the loan. (5) The interest rate on these loans is subject to the greater of a LIBOR floor or 3 month LIBOR plus a base rate. The 3 month LIBOR as of December 31, 2019 was 1.91%. (6) Fixed rate investment. (7) The interest rate on these loans is subject to the U.S. Prime rate, which as of December 31, 2019 was 4.75%. (8) The interest rate on these loans is subject to the greater of a LIBOR floor or 12 month LIBOR plus a base rate. The 12 month LIBOR as of December 31, 2019 was 2.00%. (9) Investment is not a qualifying investment as defined under section 55 (a) of the Investment Company Act of 1940. Qualifying assets must represent at least 70% of total assets at the time of acquisition. The Company’s percentage of non-qualifying assets based on fair value was 16.21% as of December 31, 2019. (10) The interest rate on these loans is subject to the greater of a LIBOR floor or 6 month LIBOR plus a base rate. The 6 month LIBOR as of December 31, 2019 was 1.91%. (11) These loans are unitranche first lien/last-out term loans. In addition to the interest earned based on the effective interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders whereby the loan has been allocated to “first-out” and “last-out” tranches, whereby the “first-out” tranche will have priority as to the “last-out” tranche with respect to payments of principal, interest and any amounts due thereunder. The Company holds the “last-out” tranche. (12) The investment is on non-accrual status as of December 31, 2019. (13) Non-income producing security. (14) As defined in the Investment Company Act of 1940, the portfolio company is deemed to be a “controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 25% or more of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company. See Note 3 “Agreements and Related Party Transactions”. (15) This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. (16) The interest rate on these loans is subject to the greater of a LIBOR floor or 2 month LIBOR plus a base rate. The 2 month LIBOR as of December 31, 2019 was 1.83%. (17) The interest rate on these loans is subject to the greater of a EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of December 31, 2019 was (0.38)%. (18) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 3 month GBP LIBOR plus a base rate. The 3 month GBP LIBOR as of December 31, 2019 was 0.79%. (19) As defined in the 1940 Act, the portfolio company is deemed to be a “non-controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 5% or more of the portfolio company’s outstanding voting securities. See Note 3 “Agreements and Related Party Transactions”. (20) Investment pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (21) Investment pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (22) Investment pays 0.75% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (23) Investment pays 4.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (24) Investment pays 3.88 % unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (25) Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. See accompanying notes 31 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) (26) Investment pays 1.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. Foreign Currency Exchange Contracts Counterparty Currency Purchased Currency Sold Settlement Unrealized Appreciation (Depreciation) Wells Fargo Bank, N.A. USD 7,974,709 GBP 5,885,394 12/01/2023 $ (65 ) Wells Fargo Bank, N.A. USD 11,682,415 EUR 9,221,988 04/10/2024 366 Wells Fargo Bank, N.A. USD 8,602,672 EUR 6,702,510 02/20/2024 392 Total $ 693 EUR Euro GBP Great British Pound PIK Payment In-Kind USD United States Dollar See accompanying notes 32 Table of Contents CRESCENT CAPITAL BDC, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share amounts) September 30, 2020 (Unaudited) Note 1. Organization and Basis of Presentation Crescent Capital BDC, Inc. (the “Company”) was formed on February 5, 2015 (“Inception”) as a Delaware corporation structured as an externally managed, closed-end management investment company. The Company commenced investment operations on June 26, 2015. On January 30, 2020, the Company changed its state of incorporation from the State of Delaware to the State of Maryland. The Company has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and currently operates as a diversified investment company. In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. The Company’s primary investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company will seek to achieve its investment objectives by investing primarily in secured debt (including senior secured, unitranche and second lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. The Company may make multiple investments in the same portfolio company. Although the Company’s focus is to invest in private credit transactions, in certain circumstances it will also invest in broadly syndicated loans and bonds. The Company is managed by Crescent Cap Advisors, LLC (the “Adviser” and formerly, CBDC Advisors, LLC), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended. CCAP Administration LLC (the “Administrator” and formerly, CBDC Administration, LLC) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Adviser and Administrator along with the Company’s Board of Directors (the “Board”). The Adviser directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company’s investment assets to the Adviser. The Board consists of six directors, four of whom are independent. The Company has formed or acquired wholly owned subsidiaries that are structured as tax blockers, to hold equity or equity-like investments in portfolio companies organized as limited liability companies or other forms of pass-through entities. These corporate subsidiaries are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies. On January 31, 2020, the Company completed a transaction to acquire Alcentra Capital Corporation in a cash and stock transaction (the “Alcentra Acquisition”). The Company was listed and began trading on the NASDAQ stock exchange on February 3, 2020. See “Note 13. Alcentra Acquisition” for more information. Basis of Presentation The Company’s functional currency is the United States dollar and these consolidated financial statements have been prepared in that currency. The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to Regulation S-X. Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited interim financial results included herein contain all adjustments and reclassifications that are necessary for the fair presentation of consolidated financial statements for the periods included herein. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2020. The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies. Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that may affect the amounts reported in the consolidated financial statements and accompanying notes. These consolidated financial statements reflect adjustments that in the opinion of management are necessary for the fair statement of the results for the periods presented. Although management believes that the estimates and assumptions are reasonable, changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. 33 Table of Contents Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and may include highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments) with original maturities of three months or less. Cash and cash equivalents other than money market mutual funds, are carried at cost plus accrued interest, which approximates fair value. Money market mutual funds are carried at their net asset value, which approximates fair value. Restricted cash and cash equivalents consists of deposits held at Wells Fargo Bank N.A. related to the Company’s credit facility. The Company holds cash and cash equivalents denominated in foreign currencies. The Company deposits its cash, cash equivalents and restricted cash with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law. Investment Transactions Loan originations are recorded on the date of the binding commitment. Investments purchased on a secondary market are recorded on the trade date. Realized gains or losses are recorded using the specific identification method as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized, and include investments written off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment fair values as of the last business day of the reporting period and also includes the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period. Investment Valuation The Company applies Financial Accounting Standards Board ASC 820, Fair Value Measurement (“ASC 820”), as amended, which establishes a framework for measuring fair value in accordance with GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, the Company considers its principal market to be the market that has the greatest volume and level of activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in the determination of fair value. In accordance with ASC 820, these levels are summarized below: Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Board, based on, among other things, the input of the Adviser, the Company’s Audit Committee and, with certain de minimis exceptions, independent third-party valuation firms engaged at the direction of the Board. The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following: • The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team. • The Adviser’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee. • The Audit Committee reviews the valuations presented and recommends values for each investment to the Board. • The Board reviews the recommended valuations and determines the fair value of each investment. Investments in investment companies are valued at fair value. Fair values are generally determined utilizing the net asset value (“NAV”) supplied by, or on behalf of, management of each investment company, which is net of management and incentive fees or allocations charged by the investment company and is in accordance with the “practical expedient”, as defined by ASC 820 . NAVs received by, or on behalf of, management of each investment company are based on the fair value of the investment company’s underlying investments in accordance with policies established by management of each investment company, as described in each of their financial statements and offering memorandum. Investments which are valued using NAV as a practical expedient are excluded from the above hierarchy. 34 Table of Contents The Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various criteria in making the determination as to whether a particular investment would qualify for classification as a Level 2 or Level 3 investment. For example, the Company reviews pricing methodologies provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality. Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein. Foreign Currency Foreign currency amounts are translated into U.S. dollars on the following basis: • cash and cash equivalents, fair value of investments, outstanding debt on revolving credit facilities, other assets and liabilities: at the spot exchange rate on the last business day of the period; and • purchases and sales of investments, borrowings and repayments of such borrowings, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions. Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Gains or losses on foreign currency transactions are included with net realized gain (loss) on foreign currency transactions on the Consolidated Statements of Operations. Fluctuations arising from the translation of foreign currency on cash, investments and borrowings are included with net change in unrealized appreciation (depreciation) on investments and foreign currency translation on the Consolidated Statements of Operations. The Company’s approach to hedging the foreign currency exposure in its non-U.S. dollar denominated investments is to borrow local currency under the Company’s credit facilities or by entering into foreign currency forward contracts. Foreign currency forward contracts The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Forward foreign currency contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts are recorded on the Consolidated Statements of Assets and Liabilities by counterparty on a gross basis, not taking into account collateral posted which is recorded separately, if applicable. Notional amounts and the gross fair value of foreign currency forward contract assets and liabilities are presented separately on the Consolidated Schedules of Investments. Purchases and sales of foreign currency forward contracts having the same notional value, settlement date and counterparty are generally settled net (which results in a net foreign currency position of zero with the counterparty) and any realized gains or losses are recognized on the settlement date. The Company does not utilize hedge accounting and as such, the Company recognizes its derivatives at fair value with changes in the net unrealized appreciation (depreciation) on foreign currency forward contracts recorded on the Consolidated Statements of Operations. Equity Offering and Organization Expenses The Company agreed to repay the Adviser for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1,500 on a pro rata basis over the first $350,000 of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. The initial 3 year term was later extended to June 30, 2019 with shareholder approval. To the extent such costs related to equity offerings, these costs were charged as a reduction of capital upon the issuance of common shares. To the extent such costs related to organization costs, these costs were expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Adviser was responsible for organization and private equity offerings costs in excess of $1,500. During the reimbursement period which began on June 26, 2015 and expired on June 30, 2019, the Adviser had allocated to the Company $794 of equity offering costs and $568 of organization costs. 35 Table of Contents Debt Issuance Costs The Company records costs related to issuance of debt obligations as deferred financing costs. These costs are deferred and amortized using the effective yield method for revolving credit facilities, over the stated maturity life of the obligation. As of September 30, 2020 and December 31, 2019, there were $4,645 and $3,431, respectively, of deferred financing costs netted against debt balances on the Company’s Consolidated Statements of Assets and Liabilities. Interest and Dividend Income Recognition Interest income is recorded on an accrual basis and includes the amortization of purchase discounts and premiums. Discounts and premiums to par value on securities purchased are accreted or amortized into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Each distribution received from an equity investment is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments as dividend income unless there is sufficient current or accumulated earnings prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. Certain investments have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or cost basis of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2020, the Company had four portfolio companies with seven investment positions on non-accrual status, which represented 3.8% and 2.1% of the total debt investments at cost and fair value, respectively. As of December 31, 2019, the Company had one portfolio company with three investment positions on non-accrual status, which represented 1.9% and 1.0% of the total debt investments at cost and fair value, respectively. Other Income Other income may include income such as consent, waiver, amendment, underwriting and arranger fees associated with the Company’s investment activities as well as any fees for managerial assistance services rendered by the Company to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. Income Taxes The Company has elected to be treated as a BDC under the 1940 Act. The Company also has elected to be treated as a RIC under the Internal Revenue Code. So long as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company. The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC 740 — Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of September 30, 2020, the Company is subject to examination by U.S. federal tax authorities for returns filed for the three most recent calendar years and by state tax authorities for returns filed for the four most recent calendar years. 36 Table of Contents In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company accrues excise tax on estimated undistributed taxable income as required on a quarterly basis. For the three and nine months ended September 30, 2020, the Company expensed an excise tax of $116 and $458, respectively, of which $294 remained payable. For the three and nine months ended September 30, 2019, the Company expensed an excise tax of $8 and $8, respectively, of which $0 remained payable. CBDC Universal Equity, Inc. and Alcentra BDC Equity Holdings, LLC are taxable entities (“Taxable Subsidiaries”). The Taxable Subsidiaries permit the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiaries are not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the three and nine months ended September 30, 2020, the Company recognized a benefit/(provision) for taxes of $(161) and $101, respectively, on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiaries. For the three and nine months ended September 30, 2019, the Company recognized a benefit/(provision) for taxes of $(25) and $(505), respectively, on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiaries. As of September 30, 2020 and December 31, 2019, $1,133 and $879, respectively, was included in deferred tax liabilities on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments held in the Company’s corporate subsidiaries and other temporary book to tax differences of the corporate subsidiaries. As of September 30, 2020 and December 31, 2019, $776 and $421, respectively, was included in deferred tax assets on the Consolidated Statements of Assets and Liabilities relating to net operating loss carryforwards and unrealized losses on investments and other temporary book to tax differences that are expected to be used in future periods. A portion of the taxable subsidiaries’ net operating loss and capital loss carryovers are subject to an annual limitation use under the Code and related regulations. For the three and nine months ended September 30, 2020 and 2019, there were no realized gains on investments requiring a recognition of a tax provision. Dividends and Distributions Dividends and distributions to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board each quarter. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment. The Company adopted a dividend reinvestment plan that provides for reinvestment of the Company’s dividends and other distributions on behalf of the stockholders unless a stockholder elects to receive cash. As a result, if the Company’s Board authorizes, and the Company declares, a cash dividend, or other distribution then stockholders who are participating in the dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of common stock, rather than receiving cash dividends and distributions. Prior to February 3, 2020, which is the date of the Company’s listing on NASDAQ, only stockholders who “opted in” to the dividend reinvestment plan had their cash dividends and distributions automatically reinvested in additional shares of common stock. After February 3, 2020, stockholders who do not “opt out” of the dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of the Company’s common stock. The elections of stockholders that made an election prior to February 3, 2020 remain effective. New Accounting Standards In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional exceptions for applying GAAP to contract modifications, hedging relationships and other transactions affected reference rate reform if certain criteria are met. ASU 2020-04 is elective and can be adopted between March 12, 2020 and December 31, 2022. The Company doesn’t expect that the adoption of this guidance will have a material impact on its consolidated financial statements. 37 Table of Contents Note 3. Agreements and Related Party Transactions Administration Agreement On June 2, 2015, the Company entered into the Administration Agreement with the Administrator, as amended and restated on February 1, 2020. Under the terms of the Administration Agreement, the Administrator provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Administrator under the terms of the Administration Agreement. In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to the Administrator. The Administration Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party. For the three and nine months ended September 30, 2020, the Company incurred administrative services expenses of $204 and $615, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, of which $243 was payable at September 30, 2020. For the three and nine months ended September 30, 2019, the Company incurred administrative services expenses of $179 and $538, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, of which $269 was payable at September 30, 2019. No person who is an officer, director or employee of the Administrator or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director. However, the Company reimburses the Administrator (or its affiliates) for an allocable portion of the compensation paid by the Administrator or its affiliates to the Company’s compliance professionals, legal counsel, and other professionals who spend time on such related activities (based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company). The allocable portion of the compensation for these officers and other professionals are included in the administration expenses paid to the Administrator. Directors who are not affiliated with the Administrator or its affiliates receive compensation for their services and reimbursement of expenses incurred to attend meetings, which are included as directors’ fees on the Consolidated Statements of Operations. On June 5, 2015, the Company entered into sub-administration agreement with State Street Bank and Trust Company (“SSB”) to perform certain administrative, custodian and other services on behalf of the Company. The sub-administration agreement with SSB had an initial term of three years ending June 5, 2018 and shall automatically renew for 1-year terms unless a written notice of non-renewal is delivered by the Company or SSB. The Company does not reimburse the Administrator for any services for which it pays a separate sub-administrator and custodian fee to SSB. For the three and nine months ended September 30, 2020, the Company incurred expenses of $293 and $899, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the sub-administration agreements, of which $586 was payable at September 30, 2020. For the three and nine months ended September 30, 2019, the Company incurred expenses of $257 and $710, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the sub-administration agreements, of which $491 was payable at September 30, 2019. Investment Advisory Agreement On June 2, 2015, the Company entered into an investment advisory agreement with the Adviser (the “Investment Advisory Agreement”), which was subsequently replaced by the Amended and Restated Investment Advisory Agreement (together with the Investment Advisory Agreement, the “Advisory Agreements”), which was approved by the Company’s stockholders on January 29, 2020 in connection with the Alcentra Acquisition. Under the terms of the Amended and Restated Investment Advisory Agreement, the Adviser will provide investment advisory services to the Company and its portfolio investments. The Adviser’s services under the Amended and Restated Investment Advisory Agreement are not exclusive, and the Adviser is free to furnish similar or other services to others so long as its services to the Company are not impaired. Under the terms of the Advisory Agreements, the Adviser is entitled to receive a base management fee and may also receive incentive fees, as discussed below. Base Management Fee (prior to February 1, 2020) Prior to February 1, 2020, pursuant to the Investment Advisory Agreement, the base management fee was calculated and payable quarterly in arrears at an annual rate of 1.50% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The base management fee was calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for share issuances or repurchases during the current calendar quarter. Under the Investment Advisory Agreement, the Adviser agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay the Company’s expenses) during the period prior to February 3, 2020, the date of the Company’s qualified initial public offering, as defined by the Investment Advisory Agreement (“Qualified IPO”). The listing of the Company’s Common Stock on NASDAQ on February 3, 2020 qualified as a Qualified IPO. The Adviser is not permitted to recoup any waived amounts at any time. New Base Management Fee (effective February 1, 2020) Effective February 1, 2020, pursuant to the Amended and Restated Investment Advisory Agreement, the base management fee is calculated and payable quarterly in arrears at an annual rate of 1.25% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The base management fee is calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. 38 Table of Contents In addition, under the terms of the Amended and Restated Advisory Agreement, the Adviser agreed to waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the closing of the Alcentra Acquisition so that only 0.75% shall be charged for such time period. The Adviser is not permitted to recoup any waived amounts at any time. For the three and nine months ended September 30, 2020, the Company incurred management fees of $1,746 and $4,900, respectively, which are net of waived amounts, of $1,163 and $3,427, respectively, of which $1,746 was payable at September 30, 2020. For the three and nine months ended September 30, 2019, the Company incurred management fees of $1,249 and $3,352, respectively, which are net of waived amounts, of $1,268 and $3,427 respectively, of which $1,250 was payable at September 30, 2019. The Adviser has voluntarily waived its right to receive management fees on the Company’s investment in GACP II LP for any period in which GACP II LP remains in the investment portfolio. For the three and nine months ended September 30, 2020, $38 and $115, respectively, of management fees waived were attributable to the Company’s investment in GACP II LP. For the three and nine months ended September 30, 2019, $41 and $107, respectively, of management fees waived were attributable to the Company’s investment in GACP II LP. Incentive Fee (prior to February 1, 2020) Under the Investment Advisory Agreement, the Incentive Fee consisted of two parts. The first part, the income incentive fee, was calculated and payable quarterly in arrears and equaled (a) 100% of the excess of the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.5% per quarter (6.0% annualized) (the “Hurdle”), and a catch-up feature until the Adviser received 15% of the pre-incentive fee net investment income for the current quarter up to 1.7647% (the “Catch-up”), and (b) 15% of all remaining pre-incentive fee net investment income above the “Catch-up.” The second part, the capital gains incentive fee, was determined and payable in arrears as of the end of each fiscal year at a rate of 15.0% of the Company’s realized capital gains, if any, on a cumulative basis from Inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. At the 2018 Annual Meeting of Stockholders, in connection with the extension of the deadline to consummate a Qualified IPO, the Adviser agreed to waive its rights under the Investment Advisory Agreement to (i) the income incentive fee and (ii) the capital gain incentive fee for the period from April 1, 2018 through February 1, 2020. Incentive Fee (effective February 1, 2020) Under the Amended and Restated Investment Advisory Agreement, the Incentive Fee consists of two parts. The first part, the income incentive fee, is calculated and payable quarterly in arrears and (a) equals 100% of the excess of the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.75% per quarter (7.0% annualized) (the “Hurdle”), and a catch-up feature until the Adviser has received 17.5%, of the pre-incentive fee net investment income for the current quarter up to 2.1212% (the “Catch-up”), and (b) 17.5% of all remaining pre-incentive fee net investment income above the “Catch-up.” In addition, under the terms of the Amended and Restated Investment Advisory Agreement, the Adviser agreed to waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021. Once the Adviser begins to earn income incentive fees, the Adviser will voluntarily waive the income incentive fees attributable to the investment income accrued by the Company as a result of its investment in GACP II. The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year at a rate of 17.5% of the Company’s realized capital gains, if any, on a cumulative basis from Inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. Since the Qualified IPO occurred on a date other than the first day of a calendar quarter, the income incentive fee shall be calculated for such calendar quarter at a weighted rate calculated based on the fee rates applicable before and after a Qualified IPO based on the number of days in such calendar quarter before and after the Qualified IPO. For the avoidance of doubt, such capital gains incentive fee shall be equal to 15.0% of the Company’s realized capital gains on a cumulative basis from Inception through the day before the Qualified IPO, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. Following the Qualified IPO, solely for the purposes of calculating the capital gains incentive fee, the Company will be deemed to have previously paid capital gains incentive fees prior to a Qualified IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to the Qualified IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15.0%. In the event that the Amended and Restated Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee. 39 Table of Contents Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during each calendar quarter, minus operating expenses for such quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, original issue discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income will be compared to a “Hurdle Amount” equal to the product of (i) the Hurdle rate of 1.50% or 1.75% per quarter, 6.00% or 7.00% annualized, prior to and effective February 1, 2020, respectively, and (ii) the Company’s net assets (defined as total assets less indebtedness, before taking into account any incentive fees payable during the period), at the end of the immediately preceding calendar quarter, subject to a “catch-up” provision incurred at the end of each calendar quarter. For the three and nine months ended September 30, 2020, the Company incurred income incentive fees of $0 and $0, respectively, which are net of waived amounts, of $2,136 and $6,335, respectively, of which $0 was payable at September 30, 2020. For the three and nine months ended September 30, 2019, the Company incurred income incentive fees of $0 and $0, respectively, which are net of waived amounts, of $1,375 and $3,506, respectively, of which $0 was payable at September 30, 2019. GAAP Incentive Fee on Cumulative Unrealized Capital Appreciation The Company accrues, but does not pay, a portion of the Incentive Fee based on capital gains with respect to net unrealized appreciation. Under GAAP, the Company is required to accrue an Incentive Fee based on capital gains that includes net realized capital gains and losses and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the accrual for the Incentive Fee based on capital gains, the Company considers the cumulative aggregate unrealized capital appreciation in the calculation, since an Incentive Fee based on capital gains would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee payable under the Amended and Restated Investment Advisory Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then the Company records a capital gains incentive fee equal to 15% (prior to February 3, 2020) or 17.5% (effective February 3, 2020) of such amount, minus the aggregate amount of actual Incentive Fees based on capital gains paid in all prior periods. If such amount is negative, then there is no accrual for such period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three and nine months ended September 30, 2020 and 2019, the Company recorded no incentive fee on cumulative unrealized capital appreciation. Other Related Party Transactions From time to time, the Administrator may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Administrator for such amounts paid on its behalf. Amounts payable to the Administrator are settled in the normal course of business without formal payment terms. In conjunction with the closing of Alcentra Capital merger, the Company and the Adviser executed a Transaction Support Agreement, as described in Note 13. A portion of the outstanding shares of the Company’s common stock are owned by Crescent Capital Group LP (“CCG LP”). CCG LP is also the majority member of the Adviser and sole member of the Administrator. The Company has entered into a license agreement with CCG LP under which CCG LP granted the Company a non-exclusive, royalty-free license to use the name “Crescent Capital”. The Adviser has entered into a resource sharing agreement with CCG LP. CCG LP will provide the Adviser with the resources necessary for the Adviser to fulfill its obligations under the Investment Advisory Agreement. Investments in and Advances to Affiliates The Company’s investments in non-controlled affiliates for the nine months ended September 30, 2020 were as follows (in thousands): Fair Value as of December 31, 2019 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2020 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates APC Auto Technology Intermediate, LLC $ 928 $ — $ — $ (1,847 ) $ 919 $ — $ — Battery Solutions, Inc. — 4,907 — — (1,361 ) 3,546 129 Conisus, LLC — 9,681 — — 11,095 20,776 953 Slickdeals Holdings, LLC 15,933 62 (311 ) 50 213 15,947 897 Southern Technical Institute, Inc. — — (1,271 ) 1,271 3,753 3,753 — Vivid Seats Ltd. 3,646 — — — (37 ) 3,609 — Total Non-Controlled Affiliates $ 20,507 $ 14,650 $ (1,582 ) $ (526 ) $ 14,582 $ 47,631 $ 1,979 40 Table of Contents The Company’s investments in non-controlled affiliates for the nine months ended September 30, 2019 were as follows (in thousands): Fair Value as of December 31, 2018 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2019 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates Slickdeals Holdings, LLC $ 12,096 $ 3,877 $ (92 ) $ — $ 125 $ 16,006 $ 1,139 Vivid Seats Ltd. 3,389 2 — — 475 3,866 48 Total Non-Controlled Affiliates $ 15,485 $ 3,879 $ (92 ) $ — $ 600 $ 19,872 $ 1,187 The Company’s investments in controlled affiliates for the nine months ended September 30, 2020 were as follows (in thousands): Fair Value as of December 31, 2019 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2020 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ 34,442 $ 6,000 $ (1,000 ) $ — $ (5,513 ) $ 33,929 $ 1,500 Total Controlled Affiliates $ 34,442 $ 6,000 $ (1,000 ) $ — $ (5,513 ) $ 33,929 $ 1,500 The Company’s investments in controlled affiliates for the nine months ended September 30, 2019 were as follows (in thousands): Fair Value as of December 31, 2018 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2019 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ — $ 34,000 $ — $ — $ (667 ) $ 33,333 $ 1,450 Total Controlled Affiliates $ — $ 34,000 $ — $ — $ (667 ) $ 33,333 $ 1,450 (1) Together with Masterland Enterprise Holdings, Ltd. (“Masterland”, and collectively with the Company, the “Members”), the Company invests through the Senior Loan Fund. Although the Company owns more than 25% of the voting securities of the Senior Loan Fund, the Company does not have control over the Senior Loan Fund (other than for purposes of the Investment Company Act). See Note 4 “Investments”. (2) Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. (3) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. 41 Table of Contents Note 4. Investments The Company’s investments at any time may include securities and other financial instruments or other assets of any sort, including, without limitation, corporate and government bonds, convertible securities, collateralized loan obligations, term loans, trade claims, equity securities, privately negotiated securities, direct placements, working interests, warrants and investment derivatives (including, but not limited to credit default swaps, recovery swaps, total return swaps, options, forward contracts, and futures) (all of the foregoing collectively referred to in these consolidated financial statements as “investments”). “First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets. “Unitranche first lien” investments are loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. “Second lien” investments are loans with a second priority lien on the assets of the portfolio company. The Company obtains security interests in the assets of the portfolio company that serve as collateral in support of the repayment of such loans. This collateral serves as collateral in support of the repayment of these loans. “Mezzanine” or “unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other indebtedness. Under the 1940 Act, the Company is required to separately identify non-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “controlled” companies. Detailed information with respect to the Company’s non-controlled, non-affiliated; non-controlled, affiliated; and controlled affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedule of Investments. The information in the following tables is presented on an aggregate portfolio basis, without regard to whether they are non-controlled non-affiliated, non-controlled affiliated or controlled affiliated investments. Certain Risk Factors In the ordinary course of business, the Company manages a variety of risks including market risk and liquidity risk. The Company identifies, measures and monitors risk through various control mechanisms, including trading limits and diversifying exposures and activities across a variety of instruments, markets and counterparties. Market risk is the risk of potential adverse changes to the value of financial instruments because of changes in market conditions, including as a result of changes in the credit quality of a particular issuer, credit spreads, interest rates, and other movements and volatility in security prices or commodities. In particular, the Company may invest in issuers that are experiencing or have experienced financial or business difficulties (including difficulties resulting from the initiation or prospect of significant litigation or bankruptcy proceedings), which involves significant risks. The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques. The Company’s investments may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately. Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar. 42 Table of Contents Investments at fair value consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Investment Type Cost Fair Value Unrealized Appreciation/ (Depreciation) Cost Fair Value Unrealized Appreciation/ (Depreciation) Senior Secured First Lien $ 391,570 $ 375,426 $ (16,144 ) $ 356,080 $ 351,332 $ (4,748 ) Unitranche First Lien 362,067 361,974 (93 ) 213,884 218,416 4,532 Unitranche First Lien - Last Out 15,660 15,014 (646 ) 15,845 16,044 199 Senior Secured Second Lien 110,538 99,299 (11,239 ) 64,801 58,887 (5,914 ) Unsecured Debt 2,282 2,215 (67 ) 7,381 7,414 33 Equity & Other 34,483 53,583 19,100 19,037 21,432 2,395 LLC/LP Equity Interests 58,710 53,540 (5,170 ) 52,067 53,006 939 Total Investments $ 975,310 $ 961,051 $ (14,259) $ 729,095 $ 726,531 $ (2,564) The industry composition of investments at fair value at September 30, 2020 and December 31, 2019 is as follows (in thousands): Industry Fair Value September 30, 2020 Percentage of Fair Value Fair Value December 31, 2019 Percentage of Fair Value Health Care Equipment & Services $ 212,375 22.10 % $ 147,162 20.26 % Commercial & Professional Services 185,870 19.34 136,218 18.75 Software & Services 133,462 13.89 111,790 15.39 Consumer Services 101,801 10.59 68,380 9.41 Diversified Financials 70,911 7.38 60,288 8.30 Pharmaceuticals, Biotechnology & Life Sciences 37,222 3.87 11,500 1.58 Insurance 36,180 3.76 30,991 4.27 Automobiles & Components 34,932 3.64 32,978 4.54 Retailing 23,109 2.40 25,917 3.56 Energy 20,728 2.16 13,162 1.81 Media & Entertainment 20,776 2.16 — — Capital Goods 18,831 1.96 20,896 2.88 Food & Staples Retailing 18,096 1.88 33,300 4.58 Food, Beverage & Tobacco 13,737 1.43 4,261 0.59 Materials 11,069 1.15 11,137 1.53 Transportation 7,219 0.75 6,626 0.91 Household & Personal Products 4,222 0.44 3,854 0.53 Telecommunication Services 4,014 0.42 — — Consumer Durables & Apparel 3,532 0.37 3,256 0.45 Technology Hardware & Equipment 2,965 0.31 4,815 0.66 Total Investments $ 961,051 100.00 % $ 726,531 100.00 % 43 Table of Contents The geographic composition of investments at fair value at September 30, 2020 and December 31, 2019 is as follows (in thousands): Geographic Region Fair Value September 30, 2020 Percentage of Fair Value Fair Value December 31, 2019 Percentage of Fair Value United States $ 903,051 93.97 % $ 681,443 93.79 % United Kingdom 22,782 2.37 8,038 1.11 Belgium 14,638 1.52 14,937 2.05 Canada 12,192 1.27 12,109 1.67 Netherlands 8,388 0.87 7,756 1.07 France — — 2,248 0.31 Total Investments $ 961,051 100.00 % $ 726,531 100.00 % Senior Loan Fund The Senior Loan Fund, an unconsolidated limited liability company, was formed on September 26, 2018 and commenced operations in February 2019. The Company invests together with Masterland through the Senior Loan Fund. Masterland is a wholly owned subsidiary of China Orient Asset Management (International) Holding Limited (HK). The Senior Loan Fund’s principal purpose is to make investments in broadly syndicated bank loans, either directly or indirectly through its wholly owned subsidiary, CBDC Senior Loan Sub LLC. The Company and Masterland have each subscribed to fund $40,000. Except under certain circumstances, contributions to the Senior Loan Fund cannot be redeemed. The Senior Loan Fund is managed by a four member board of managers, on which the Company and Masterland have equal representation. Investment decisions generally must be unanimously approved by a quorum of the board of managers. Since the Company does not have a controlling financial interest in the Senior Loan Fund, it is not consolidated. The Senior Loan Fund is an investment company and measured using the net asset value per share as a practical expedient for fair value. The Company and Masterland had subscribed to fund and contributed the following to the Senior Loan Fund (in thousands): September 30, 2020 December 31, 2019 Member Subscribed to fund Contributed Unfunded Commitment Subscribed to fund Contributed Unfunded Commitment Company $ 40,000 $ 39,000 $ 1,000 $ 40,000 $ 34,000 $ 6,000 Masterland 40,000 39,000 1,000 40,000 34,000 6,000 Total $ 80,000 $ 78,000 $ 2,000 $ 80,000 $ 68,000 $ 12,000 The Senior Loan Fund is capitalized pro rata with LLC equity interest as transactions are completed. The Senior Loan Fund has a revolving credit facility with Royal Bank of Canada (the “RBC Facility”), as amended, which permits up to $300,000 of borrowings as of September 30, 2020. Borrowings under the RBC Facility are secured by all assets of CBDC Senior Loan Sub LLC. The interest rate on the credit facility is LIBOR, with no LIBOR floor, plus margin, which ranges between 1.25% and 1.45% based on pricing of the pledged collateral. 44 Table of Contents Below is a summary of the Senior Loan Fund’s portfolio, as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 As of December 31, 2019 Total senior secured debt, at par $ 291,550 $ 275,624 Total senior secured debt, at fair value $ 278,660 $ 275,069 Weighted average current interest rate on senior secured debt (1) 3.4 % 4.9 % Number of borrowers in the Senior Loan Fund ‘s portfolio 191 169 Largest loan to a single borrower $ 3,465 $ 3,500 Senior Secured First Lien investments as a % of total investments, at fair value 100.0 % 100.0 % United States based investments as a % of total investments, at fair value 90.7 % 89.7 % Non-accrual investments as % of total investment, at cost 0.0 % 0.0 % (1) Computed as (a) the annual stated interest rate on accruing senior secured debt, divided by (b) total senior secured debt at par amount, excluding fully unfunded commitments. Below is selected balance sheet information for the Senior Loan Fund as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 As of December 31, 2019 Selected Balance Sheet Information: Total investments, at fair value $ 278,660 $ 275,069 Cash and cash equivalents 8,913 7,958 Other assets 6,211 6,688 Total assets $ 293,784 $ 289,715 Debt (net of deferred financing costs of $221 and $211, respectively) $ 212,779 $ 205,789 Other liabilities 13,147 15,043 Total liabilities $ 225,926 $ 220,832 Members’ Capital 67,858 68,883 Total liabilities and members’ capital $ 293,784 $ 289,715 Below is selected statements of operations information for the Senior Loan Fund for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Selected Statements of Operations Information: Total investment income $ 2,653 $ 3,749 $ 8,879 $ 5,916 Expenses Interest and other debt financing costs 960 1,859 3,711 2,697 Professional fees 15 14 37 119 Other general and administrative expenses 84 81 265 178 Total expenses 1,059 1,954 4,013 2,994 Net investment income (loss) 1,594 1,795 4,866 2,922 Net realized gain (loss) on investments (456 ) 42 (774 ) 86 Net change in unrealized appreciation (depreciation) on investments 7,093 54 (12,117 ) (1,443 ) Net increase (decrease) in members’ capital $ 8,231 $ 1,891 $ (8,025 ) $ 1,565 45 Table of Contents Note 5. Fair Value of Financial Instruments Investments The following table presents fair value measurements of investments as of September 30, 2020 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Total Senior Secured First Lien $ — $ 41,200 $ 334,226 $ 375,426 Unitranche First Lien — — 361,974 361,974 Unitranche First Lien - Last Out — — 15,014 15,014 Senior Secured Second Lien — 4,300 94,999 99,299 Unsecured Debt — — 2,215 2,215 Equity & Other — — 53,583 53,583 Subtotal $ — $ 45,500 $ 862,011 $ 907,511 Investments Measured at NAV (1) 53,540 Total Investments $ 961,051 Foreign Currency Forward Contracts $ — $ 1,315 $ — $ 1,315 The following table presents fair value measurements of investments as of December 31, 2019 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Total Senior Secured First Lien $ — $ 83,139 $ 268,193 $ 351,332 Unitranche First Lien — — 218,416 218,416 Unitranche First Lien – Last Out — — 16,044 16,044 Senior Secured Second Lien — 9,318 49,569 58,887 Unsecured Debt — — 7,414 7,414 Equity & Other — — 21,432 21,432 Subtotal $ — $ 92,457 $ 581,068 $ 673,525 Investments Measured at NAV (1) 53,006 Total Investments $ 726,531 Foreign Currency Forward Contracts $ — $ 693 $ — $ 693 (1) In accordance with ASC 820-10, certain investments that are measured using the net asset value per shares (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2020, based off of the fair value hierarchy at September 30, 2020 (in thousands): Senior Unitranche Senior Equity Secured Unitranche First - Secured Unsecured & First Lien First Lien Last Out Second Lien Debt Other Total Balance as of January 1, 2020 $ 268,193 $ 218,416 $ 16,044 $ 49,569 $ 7,414 $ 21,432 $ 581,068 Amortized discounts/premiums 1,222 1,067 28 215 114 8 2,654 Paid in-kind interest 717 461 - 2 77 474 1,731 Net realized gain (loss) (334 ) - - - - (718 ) (1,052 ) Net change in unrealized appreciation (depreciation) (7,190 ) (4,617 ) (845 ) (4,671 ) (99 ) 16,705 (717 ) Purchases 121,290 173,918 - 49,381 1,252 15,832 361,673 Sales/return of capital/principal repayments/paydowns (56,113 ) (27,271 ) (213 ) (8,815 ) (6,543 ) (150 ) (99,105 ) Transfers in 6,441 - - 9,318 - - 15,759 Transfers out - - - - - - - Balance as of September 30, 2020 $ 334,226 $ 361,974 $ 15,014 $ 94,999 $ 2,215 $ 53,583 $ 862,011 Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2020 $ (6,161 ) $ (4,703 ) $ (845 ) $ (3,889 ) $ 18 $ 1,688 $ (13,892 ) During the nine months ended September 30, 2020, the Company recorded $0 in transfers from Level 3 to Level 2 and $15,759 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. 46 Table of Contents The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2019, based off of the fair value hierarchy at September 30, 2019 (in thousands): Senior Unitranche Senior Equity Secured Unitranche First - Secured Unsecured & First Lien First Lien Last Out Second Lien Debt Other Total Balance as of January 1, 2019 $ 232,214 $ 84,891 $ - $ 53,857 $ 7,263 $ 13,806 $ 392,031 Amortized discounts/premiums 821 863 32 212 24 - 1,952 Paid in-kind interest 361 - - - 88 - 449 Net realized gain (loss) (601 ) - - - - 96 (505 ) Net change in unrealized appreciation (depreciation) 1,143 708 (11 ) (5,668 ) 28 2,763 (1,037 ) Purchases 78,449 110,400 16,012 2,425 - 2,473 209,759 Sales/return of capital/principal repayments/paydowns (40,800 ) (30,666 ) (106 ) (3,209 ) - (200 ) (74,981 ) Transfers in - - - - - - - Transfers out (18,123 ) - - - - - (18,123 ) Balance as of September 30, 2019 $ 253,464 $ 166,196 $ 15,927 $ 47,617 $ 7,403 $ 18,938 $ 509,545 Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2019 $ 895 $ 1,323 $ (11 ) $ (6,926 ) $ 28 $ 2,793 $ (1,898 ) During the nine months ended September 30, 2019, the Company recorded $18,123 in transfers from Level 3 to Level 2 and $0 in transfers from Level 2 to Level 3 due to an increase and a decrease in observable inputs in market data. The following tables present the fair value of Level 3 investments and the ranges of significant unobservable inputs used to value the Company’s Level 3 investments as of September 30, 2020 and December 31, 2019. These ranges represent the significant unobservable inputs that were used in the valuation of each type of investment. These inputs are not representative of the inputs that could have been used in the valuation of any one investment. For example, the highest market yield presented in the table for senior secured first lien investments is appropriate for valuing a specific investment but may not be appropriate for valuing any other investment. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 investments. Quantitative information about Level 3 Fair Value Measurements Fair value as of September 30, 2020 (in thousands) Valuation Techniques Unobservable Input Range (Weighted Average) Senior Secured First Lien $ 291,770 Discounted Cash Flows Discount Rate 5.5%-26.2% (7.8% ) 20,516 Enterprise Value Comparable EBITDA Multiple 8.5x-8.8x (8.6x ) 21,940 Broker Quoted Broker Quote N/A Subtotal: $ 334,226 Unitranche First Lien $ 319,051 Discounted Cash Flows Discount Rate 4.3%-16.0% (7.2% ) 25,227 Enterprise Value Comparable EBITDA Multiple 7.0x-7.4x (7.1x ) 4,560 Collateral Analysis Recovery Rate 96.0 % 13,136 Broker Quoted Broker Quote N/A Subtotal $ 361,974 47 Table of Contents Fair value as of September 30, 2020 (in thousands) Valuation Techniques Unobservable Input Range (Weighted Average) Unitranche First Lien-Last Out $ 8,103 Discounted Cash Flows Discount Rate 6.1%-7.8% (7.0%) 6,911 Collateral Analysis Recovery Rate 85.6 % Subtotal $ 15,014 Senior Secured Second Lien $ 90,848 Discounted Cash Flows Discount Rate 7.6%-25.4% (10.6% ) 3,633 Enterprise Value Comparable EBITDA Multiple 11.8x 518 Broker Quoted Broker Quote N/A Subtotal: $ 94,999 Unsecured Debt $ 2,215 Discounted Cash Flows Discount Rate 8.5%-16.5% (13.3% ) Equity & Other $ 51,882 Enterprise Value Comparable EBITDA Multiple 3.5x-22.7x (10.4x ) 1,701 Broker Quoted Broker Quote N/A Subtotal: $ 53,583 Quantitative information about Level 3 Fair Value Measurements Fair value as of December 31, 2019 (in thousands) Valuation Techniques Unobservable Input Range (Weighted Average) Senior Secured First Lien $ 213,314 Discounted Cash Flows Discount Rate 6.3%-12.9% (7.4% ) 7,488 Enterprise Value Comparable EBITDA Multiple 11.7x 47,391 Broker Quoted Broker Quote N/A Subtotal: $ 268,193 Unitranche First Lien $ 183,908 Discounted Cash Flows Discount Rate 7.1%-10.8% (8.0% ) 34,508 Broker Quoted Broker Quote N/A Subtotal $ 218,416 Unitranche First Lien-Last Out $ 16,044 Discounted Cash Flows Discount Rate 6.5%-12.2% (9.5% ) Senior Secured Second Lien $ 43,018 Discounted Cash Flows Discount Rate 9.1%-15.6% (10.8% ) 6,551 Enterprise Value Comparable EBITDA Multiple 11.4x Subtotal: $ 49,569 Unsecured Debt $ 7,414 Discounted Cash Flows Discount Rate 11.0%-15.7% (11.5% ) Equity & Other $ 21,432 Enterprise Value Comparable EBITDA Multiple 7.3x-17.9x (14.4x ) 48 Table of Contents As noted above, the discounted cash flows and market multiple approaches were used in the determination of fair value of certain Level 3 assets as of September 30, 2020 and December 31, 2019. The significant unobservable inputs used in the discounted cash flow approach is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases and decreases in the discount rate would result in a decrease and increase in the fair value, respectively. Included in the consideration and selection of discount rates is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market multiple approach are the multiples of similar companies’ earnings before income taxes, depreciation and amortization (“EBITDA”) and comparable market transactions. Increases and decreases in market EBITDA multiples would result in an increase or decrease in the fair value, respectively. The recovery rate represents the extent to which proceeds can be recovered. An increase/decrease in the recovery rate would result in an increase/decrease, respectively, in the fair value. Note 6. Debt Debt consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value (2) Weighted Average Debt Outstanding Weighted Average Interest Rate SPV Asset Facility $ 350,000 $ 228,710 $ 121,290 $ 228,710 $ 230,477 2.64 % Corporate Revolving Facility 200,000 156,754 43,246 156,754 147,953 2.94 % Unsecured Notes 50,000 25,000 25,000 25,000 5,748 6.63 % InterNotes ® 16,418 16,418 — 16,418 21,734 6.40 % Total Debt $ 616,418 $ 426,882 $ 189,536 $ 426,882 $ 405,912 3.13 % December 31, 2019 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value (2) Weighted Average Debt Outstanding Weighted Average Interest Rate SPV Asset Facility $ 250,000 $ 220,687 $ 29,313 $ 220,687 $ 200,975 4.03 % Corporate Revolving Facility 200,000 104,754 95,246 104,754 74,930 4.26 % Total Debt $ 450,000 $ 325,441 $ 124,559 $ 325,441 $ 275,905 4.10 % (1) The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments. (2) The amount presented excludes netting of deferred financing costs. As of September 30, 2020 and December 31, 2019, the carrying amount of the Company’s outstanding debt approximated fair value. The fair values of the Company’s debt are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s debt is estimated based upon market interest rates and entities with similar credit risk. As of September 30, 2020 and December 31, 2019, the debt would be deemed to be Level 3 of the fair value hierarchy. As of September 30, 2020 and December 31, 2019, the Company was in compliance with the terms and covenants of its debt arrangements. SPV Asset Facility On March 28, 2016, Crescent Capital BDC Funding, LLC (“CCAP SPV”), a wholly owned subsidiary of CCAP, entered into a loan and security agreement, as amended (the “SPV Asset Facility”), with the Company as the collateral manager, seller and equityholder, CCAP SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. CCAP SPV is consolidated into the Company’s financial statements and no gain or loss is recognized from transfer of assets to and from CCAP SPV. Between February 8, 2017 and March 10, 2020, the Company has entered into multiple amendments to the SPV Asset Facility to, among other things, increase the facility limit from $75,000 to $350,000. 49 Table of Contents The maximum commitment amount under the SPV Asset Facility is $350,000, and may be increased with the consent of Wells Fargo or reduced upon request of the Company. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to the Company in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of (a) the date the Borrower voluntarily reduces the commitments to zero, (b) March 10, 2025 (the Facility Maturity Date) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at LIBOR plus a margin with no LIBOR floor. The margin is between 1.65% and 2.20% as determined by the proportion of liquid and illiquid loans pledged to the SPV Asset Facility. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. The facility size is subject to availability under the borrowing base, which is based on the amount of CCAP SPV’s assets from time to time, and satisfaction of certain conditions, including certain concentration limits. Costs incurred in connection with obtaining the SPV Asset Facility and subsequent amendments were recorded as deferred financing costs and are being amortized over the life of the SPV Asset Facility on an effective yield basis. As of September 30, 2020 and December 31, 2019, deferred financing costs related to the SPV Asset Facility were $2,692 and $1,508, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities. Corporate Revolving Facility On August 20, 2019, the Company entered into the “Corporate Revolving Facility” with Ally Bank (“Ally”), as Administrative Agent and Arranger. Proceeds of the advances under the Revolving Credit Agreement may be used to acquire portfolio investments, to make distributions to the Company in accordance with the Revolving Credit Agreement and to pay related expenses. The maximum principal amount of the Corporate Revolving Facility is $200,000, subject to availability under the borrowing base. Borrowings under the Corporate Revolving Facility bear interest at LIBOR plus a 2.35%, which includes 0.05% utilization fee, with no LIBOR floor. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the Corporate Revolving Facility. Interest is payable quarterly in arrears. Any amounts borrowed under the Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on August 20, 2024. Costs incurred in connection with obtaining the Corporate Revolving Facility have been recorded as deferred financing costs and are being amortized over the life of the Corporate Revolving Facility on an effective yield basis. As of September 30, 2020 and December 31, 2019, deferred financing costs related to the Corporate Revolving Facility were $1,472 and $1,923, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities. The Corporate Revolving Facility replaced the prior corporate revolving facility with Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender. The maximum principal amount of the prior corporate revolving facility was $85,000, subject to availability under the borrowing base. Borrowings under the prior corporate revolving facility bore interest at LIBOR plus a 1.55% margin with no LIBOR floor. The Company paid unused facility fees of 0.20% per annum on committed but undrawn amounts under the prior corporate revolving facility. Interest was payable monthly in arrears. The Company paid down in full and terminated the prior corporate revolving facility on August 20, 2019. Unsecured Notes On July 30, 2020, the Company completed a private offering of $50,000 aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “Unsecured Notes”). The Unsecured Notes have a delayed draw feature. The initial issuance of $25,000 of Unsecured Notes closed July 30, 2020. The issuance of the remaining $25,000 of Unsecured Notes is expected to occur on or before October 28, 2020. The Unsecured Notes will mature on July 30, 2023 and may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the Unsecured Notes is due and payable semiannually in arrears on January 30 th and July 30 th of each year, commencing on January 30, 2021. As of September 30, 2020, the Company was in compliance with the terms of the note purchase agreement governing the Unsecured Notes. Costs incurred in connection with issuing the Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the Unsecured Notes on an effective yield basis. As of September 30, 2020 and December 31, 2019, deferred financing costs related to the Unsecured Notes were $481 and $0, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities. InterNotes ® On January 31, 2020, in connection with the Alcentra Acquisition, the Company assumed direct unsecured fixed interest rate obligations or “InterNotes ® ”. The majority of InterNotes ® were issued by Alcentra Corporation between January 2015 and January 2016. Each series of notes has been issued by a separate trust administered by U.S. Bank. As of September 30, 2020, the outstanding InterNotes ® bear interest at fixed interest rates ranging between 6.25% and 6.75% and offer a variety of maturities ranging between February 15, 2021 and April 15, 2022. 50 Table of Contents Summary of Interest and Credit Facility Expenses The summary information regarding the SPV Asset Facility, Corporate Revolving Facility, Unsecured Notes, Internotes ® , and prior corporate revolving facility for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Borrowing interest expense $ 2,913 $ 3,188 $ 9,942 $ 8,654 Unused facility fees 221 59 557 161 Amortization of financing costs 370 277 985 691 Total interest and credit facility expenses $ 3,504 $ 3,524 $ 11,484 $ 9,506 Weighted average outstanding balance $ 410,892 $ 291,528 $ 405,912 $ 259,587 Note 7. Derivatives The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. In order to better define its contractual rights and to secure rights that will help mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Company and cash collateral received from the counterparty, if any, is included in the Consolidated Statement of Assets and Liabilities as due to/due from broker. There has been no cash collateral received or paid from the counterparty. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties. All of the forward contracts qualify as Level 2 financial instruments. For the nine months ended September 30, 2020 and 2019, the Company’s average USD notional exposure to foreign currency forward contracts was $34,052 and $21,866, respectively. The following table sets forth the Company’s net exposure to foreign currency forward contracts that are subject to ISDA Master Agreements or similar agreements as of September 30, 2020 and December 31, 2019. As of September 30, 2020 (in thousands): Counterparty Gross Amount of Assets on the Consolidated Statements of Assets and Liabilities Gross Amount of (Liabilities) on the Consolidated Statements of Assets and Liabilities Net Amount of Assets or (Liabilities) Presented on the Consolidated Statements of Assets and Liabilities Collateral (Received) Pledged (1) Net Amounts (2) Wells Fargo Bank, N.A. $ 1,835 $ (520 ) $ 1,315 $ — $ 1,315 Total $ 1,835 $ (520 ) $ 1,315 $ — $ 1,315 As of December 31, 2019 (in thousands): Counterparty Gross Amount of Assets on the Consolidated Statements of Assets and Liabilities Gross Amount of (Liabilities) on the Consolidated Statements of Assets and Liabilities Net Amount of Assets or (Liabilities) Presented on the Consolidated Statements of Assets and Liabilities Collateral (Received) Pledged (1) Net Amounts (2) Wells Fargo Bank, N.A. $ 758 $ (65 ) $ 693 $ — $ 693 Total $ 758 $ (65 ) $ 693 $ — $ 693 (1) Amount excludes excess cash collateral paid. (2) Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual setoff rights under the agreement. Net amount excludes any over-collateralized amounts. 51 Table of Contents The effect of transactions in derivative instruments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and September 30, 2019 was as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Net realized gain (loss) on foreign currency forward contracts $ — $ — $ — $ — Net change in unrealized appreciation (depreciation) on foreign currency forward contracts (1,349 ) 1,205 623 1,487 Total net realized and unrealized gains (losses) on foreign currency forward contracts $ (1,349 ) $ 1,205 $ 623 $ 1,487 Note 8. Commitments, Contingencies and Indemnifications The Company’s investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on the Company’s Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that the Company holds. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. As of September 30, 2020 and December 31, 2019, the Company had aggregated unfunded commitments totaling $66,024 and $82,745 including foreign denominated commitments converted to USD at the balance sheet date, respectively, under loan and financing agreements. As of September 30, 2020 and December 31, 2019, the Company has the following unfunded commitments to portfolio companies (in thousands): September 30, 2020 December 31, 2019 Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Senior Secured and Unitranche First Lien Abode Healthcare, Inc. 8/28/2025 $ 918 8/25/2025 $ 862 Affinitiv, Inc. 8/26/2024 567 8/26/2024 850 Ameda, Inc. 9/29/2022 113 9/29/2022 113 Ansira Partners, Inc. — — 4/16/2020 322 Auto-Vehicle Parts, LLC 1/3/2023 600 1/3/2023 600 Avaap USA LLC — — 3/22/2023 650 Benesys, Inc. 10/5/2024 150 10/5/2024 102 BFC Solmetex LLC & Bonded Filter Co. LLC — — 11/16/2020 850 BFC Solmetex LLC & Bonded Filter Co. LLC — — 9/26/2023 240 C-4 Analytics, LLC 8/22/2023 600 8/22/2023 600 CAT Buyer, LLC 4/11/2024 550 4/11/2024 399 CC SAG Acquisition Corp. 9/9/2021 1,897 9/9/2021 2,128 CC SAG Acquisition Corp. 9/9/2025 1,050 9/9/2025 1,050 Centauri Health Solutions, Inc. — — 1/31/2022 1,575 Centria Subsidiary Holdings, LLC 12/09/2025 1,579 12/9/2025 1,974 Claritas, LLC 12/21/2023 187 12/21/2023 180 Colibri Group LLC 5/1/2025 1,000 5/1/2025 733 Consolidated Label Co., LLC 7/15/2026 650 — — 52 Table of Contents September 30, 2020 December 31, 2019 Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Continental Battery Company — — 1/15/2020 1,811 Continental Battery Company 12/14/2022 850 12/14/2022 170 COP Home Services Holdings, Inc. 5/13/2025 464 5/13/2025 464 CRA MSO, LLC — — 8/31/2020 1,000 CRA MSO, LLC 12/17/2023 120 12/17/2023 200 CRA MSO, LLC — — 5/13/2021 697 Crusoe Bidco Limited — — 12/2/2025 340 DFS Intermediate Holdings, LLC — — 9/18/2020 328 DFS Intermediate Holdings, LLC 3/31/2022 1,980 3/31/2022 336 EiKo Global, LLC 6/1/2023 450 6/1/2023 750 Empire Auto Parts, LLC 9/5/2024 400 9/5/2023 400 GrapeTree Medical Staffing, LLC 10/19/2022 450 10/19/2022 450 HCOS Group Intermediate III LLC 9/30/2026 900 — — Hepaco, LLC 8/18/2023 629 8/18/2023 257 Hepaco, LLC 10/15/2020 112 — — HGH Purchaser, Inc. 11/1/2021 1,845 11/1/2021 3,378 HGH Purchaser, Inc. 11/3/2025 828 11/3/2025 828 Hsid Acquisition, LLC 1/31/2026 750 — — ISS Compressors Industries, Inc. 2/5/2026 21 — — Integrity Marketing Acquisition, LLC — — 10/15/2020 333 Integrity Marketing Acquisition, LLC — — 2/29/2020 1,576 Integrity Marketing Acquisition, LLC — — 2/27/2021 3,095 Integrity Marketing Acquisition, LLC 8/27/2025 1,409 8/27/2025 1,409 Kestrel Parent, LLC 11/13/2023 871 11/13/2023 871 Learn-It Systems, LLC 3/18/2022 1,950 3/18/2022 2,288 Learn-It Systems, LLC 3/18/2025 600 3/18/2025 108 List Partners, Inc. — — 7/6/2022 156 List Partners, Inc. 1/5/2023 450 1/5/2023 450 Lightspeed Buyer, Inc. 8/3/2021 648 — — Mann Lake Ltd. — — 10/4/2024 456 Maroon Group, LLC 8/31/2022 1 8/31/2022 252 Midwest Industrial Rubber — — 12/2/2021 525 Manna Pro Products, LLC 12/8/2023 514 — — MRI Software LLC 2/10/2022 722 — — MRI Software LLC 2/10/2026 1,333 — — MRI Software LLC 2/10/2026 1,266 — — New Mountain Learning — — 3/16/2024 125 Omni Ophthalmic Management Consultants, LLC — — 7/10/2019 1,150 Omni Ophthalmic Management Consultants, LLC — — 9/22/2021 850 Omni Ophthalmic Management Consultants, LLC 5/31/2021 623 — — Ontario Systems, LLC 9/5/2021 1,100 9/5/2021 1,100 Ontario Systems, LLC 8/30/2025 400 8/30/2025 500 Pilot Air Freight, LLC — — 7/25/2020 1,200 Pilot Air Freight, LLC 7/25/2024 100 7/25/2024 100 Pinnacle Treatment Centers, Inc. 1/17/2022 457 — — 53 Table of Contents September 30, 2020 December 31, 2019 Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Pinnacle Treatment Centers, Inc. 12/31/2022 571 — — POC Investors, LLC 11/10/2021 625 11/10/2021 1,000 Potter Electric Signal Company 12/19/2021 1,123 12/19/2021 1,113 Potter Electric Signal Company — — 12/19/2022 519 Potter Electric Signal Company 12/19/2024 400 — — Prism Bidco, Inc. 6/25/2026 833 — — PT Network, LLC 11/30/2023 400 11/30/2023 400 Pye-Barker Fire & Safety, LLC — — 11/26/2021 3,750 Receivable Solutions, Inc. 10/1/2024 300 10/1/2024 270 Right Networks, LLC 11/4/2024 233 11/4/2024 233 Ruffalo Noel Levitz, LLC 5/29/2022 60 5/29/2022 300 Safco Dental Supply, LLC 6/14/2025 600 6/14/2025 600 Saturn Borrower Inc 9/30/2026 1,513 — — SavATree, LLC 6/2/2022 155 6/2/2020 745 SavATree, LLC 6/2/2022 550 6/2/2022 550 Seniorlink Incorporated 7/17/2026 682 — — Slickdeals Holdings, LLC 6/12/2023 727 6/12/2023 727 Smile Brands, Inc. 10/12/2020 191 10/12/2020 419 Smile Brands, Inc. 10/12/2023 300 10/12/2023 260 Smile Doctors LLC 7/30/2021 5,782 04/06/20 198 Smile Doctors LLC 10/6/2022 642 10/6/2022 170 Spear Education 2/3/2026 3,125 — — The Hilb Group, LLC 12/2/2021 762 12/2/2021 1,020 The Hilb Group, LLC 12/2/2025 109 — — Teaching Strategies LLC 5/14/2024 447 5/14/2024 447 Teal Acquisition Co., Inc 9/22/2026 1,642 — — Teal Acquisition Co., Inc 9/22/2026 974 — — Transportation Insight, LLC — — 12/18/2020 576 Transportation Insight, LLC 12/3/2024 112 12/3/2024 750 Tranzonic 3/27/2023 147 3/27/2023 550 Trinity Partners, LLC 2/21/2023 450 2/21/2023 450 Unifeye Vision Partners 9/13/2021 2,237 9/13/2021 3,050 Unifeye Vision Partners 9/13/2025 1,247 9/13/2025 1,473 UP Acquisition Corp — — 1/31/2020 1,624 UP Acquisition Corp 5/23/2024 859 5/23/2024 1,177 Winxnet Holdings LLC — — 6/29/2020 400 Winxnet Holdings LLC 6/29/2023 160 6/29/2023 320 Wrench Group LLC — — 4/30/2021 1,035 Crusoe Bidco Limited 12/5/2020 508 12/5/2020 2,977 Crusoe Bidco Limited 12/10/2025 552 12/10/2025 2,233 VetStrategy 7/31/2027 637 — — VetStrategy 7/31/2027 1,294 — — PharComp Parent B.V. 2/20/2026 1,971 2/20/2026 2,096 Total Senior Secured and Unitranche First Lien 65,024 72,613 Senior Secured Second Lien NMN Holdings III Corp. — — 11/13/2020 1,667 Total Senior Secured Second Lien — 1,667 LLC/LP Equity Interests CBDC Senior Loan Fund LLC — $ 1,000 — $ 6,000 GACP II LP — — — 2,465 Total LLC/LP Equity Interests — 1,000 — 8,465 Total $ 66,024 $ 82,745 (1) Commitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which may be shorter than its maturity. (2) Unfunded commitments denominated in currencies other than USD have been converted to USD using the applicable foreign currency exchange rate as of September 30, 2020 and December 31, 2019. 54 Table of Contents As of September 30, 2020, the Company believes that there is sufficient assets and liquidity to adequately cover future obligations under unfunded commitments. The cash and restricted cash balances, availability under the credit facilities and ongoing investment realizations are expected to provide sufficient liquidity. In addition, broadly syndicated loans in the portfolio could be sold over a relatively short period to generate cash. Other Commitments and Contingencies In the normal course of business, the Company enters into contracts which provide a variety of representations and warranties, and that provide general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements is unknown as it would involve future claims that may be made against the Company; however, based on the Company’s experience, the risk of loss is remote and no such claims are expected to occur. As such, the Company has not accrued any liability in connection with such indemnifications. Note 9. Stockholders’ Equity The Company authorized 200,000,000 shares of its common stock with a par value of $0.001 per share. The Company has authorized 10,000 shares of its preferred stock with a par value of $0.001 per share. To date, no shares of preferred stock have been issued. Between June 26, 2015, commencement of operations, and January 31, 2020, the date of Alcentra Acquisition, the Company entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP, providing for the private placement of its common shares. Pursuant to the Subscription Agreements, between June 26, 2015 and January 31, 2020, the Company issued 23,127,335 common shares for aggregate proceeds of $456,297, of which $10,000 was from CCG LP. Proceeds from the issuances were used to fund investing activities and for other general corporate purposes. Additionally, on January 31, 2020, the Company issued 5,203,016 shares in connection with the Alcentra Acquisition. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in private offering were terminated. For the nine months ended September 30, 2020 and 2019, the Company issued 30,128 and 52,777 new common shares, respectively, in connection with its dividend reinvestment plan. The following table summarizes the Company’s recent distributions declared: Date Declared Record Date Payment Date Amount Per Share August 7, 2020 September 30, 2020 October 15, 2020 $ 0.41 May 11, 2020 June 30, 2020 July 15, 2020 $ 0.41 March 3, 2020 March 31, 2020 April 15, 2020 $ 0.41 November 8, 2019 December 30, 2019 January 17, 2020 $ 0.41 September 27, 2019 September 27, 2019 October 18, 2019 $ 0.41 June 28, 2019 June 28, 2019 July 18, 2019 $ 0.41 March 29, 2019 March 29, 2019 April 12, 2019 $ 0.41 At September 30, 2020 and December 31, 2019, CCG LP owned 2.09% and 2.23%, respectively, of the outstanding common shares of the Company. Note 10. Earnings Per Share In accordance with the provisions of ASC 260 – Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of September 30, 2020 and December 31, 2019, there are no dilutive shares. The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the following periods (in thousands): For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Net increase (decrease) in net assets resulting from operations $ 38,341 $ 2,728 $ 20,213 $ 20,101 Weighted average common shares outstanding 28,167,360 18,810,099 27,518,708 16,341,911 Net increase (decrease) in net assets resulting from operations per common share-basic and diluted $ 1.36 $ 0.15 $ 0.73 $ 1.23 55 Table of Contents Note 11. Income Taxes As of September 30, 2020 and December 31, 2019, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was (in thousands): As of September 30, 2020 As of December 31, 2019 Tax cost $ 1,000,208 $ 730,999 Gross unrealized appreciation $ 30,282 $ 14,809 Gross unrealized depreciation (69,439 ) (19,277 ) Net unrealized investment depreciation $ (39,157 ) $ (4,468 ) Note 12. Financial Highlights Below is the schedule of financial highlights of the Company for the nine months ended September 30, 2020 and 2019 (in thousands, except share and per share data): For the nine months ended September 30, 2020 For the nine months ended September 30, 2019 Per Share Data: (1) Net asset value, beginning of period $ 19.50 $ 19.43 Net investment income after tax 1.33 1.43 Net realized and unrealized gains (losses) on investments, asset acquisition and forward contracts, net of taxes (0.60 ) (0.20 ) Net increase (decrease) in net assets resulting from operations 0.73 1.23 Effect of equity issuances, net of share repurchases 0.07 0.06 Distributions declared from net investment income (2) (1.23 ) (1.23 ) Offering costs — (0.01 ) Total increase (decrease) in net assets (0.43 ) 0.05 Net asset value, end of period $ 19.07 $ 19.48 Shares outstanding, end of period 28,167,360 19,549,661 Weighted average shares outstanding 27,518,708 16,341,911 Total return (3) 4.10 % 6.59 % Ratio/Supplemental Data: Net assets, end of period $ 537,090 $ 380,823 Ratio of total net expenses to average net assets (5)(6) 5.43 % 6.63 % Ratio of net expenses (without incentive fees and interest and other debt expenses) to average net assets (6) 2.25 % 2.54 % Ratio of net investment income before taxes to average net assets (6) 10.29 % 10.10 % Ratio of interest and credit facility expenses to average net assets (4) 3.18 % 4.10 % Ratio of net incentive fees to average net assets (4) — % — % Ratio of portfolio turnover to average investments at fair value (7) 20.31 % 16.80 % Asset coverage ratio 2.25 2.17 56 Table of Contents (1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate. (2) The per share data for distributions per share reflects the actual amount of distributions declared per share for the applicable periods. (3) Total return based on net value is calculated as the change in net asset value per share plus declared dividends per share during the respective periods, divided by the beginning net asset value per share. On an annualized basis, the period total returns on net asset value were 5.50% and 8.79%, respectively. (4) Annualized. (5) The ratio of total expenses to average net assets in the table above reflects the Adviser’s voluntary waivers of its right to receive a portion of the management fees and income incentive fees with respect to the Company’s ownership in GACP II. Excluding the effects of waivers, the ratio of total expenses to average net assets would have been 5.46% and 6.68% for the nine months ended September 30, 2020 and 2019, respectively. (6) Annualized except for organization expenses. (7) Not annualized. Note 13. Alcentra Acquisition On August 12, 2019, the Company entered into an Agreement and Plan of Merger (as amended on September 27, 2019, the “Merger Agreement”) to acquire Alcentra Capital Corporation (“Alcentra Capital”) in a cash and stock transaction (the “Alcentra Acquisition”). In connection with the Alcentra Acquisition, which was completed on January 31, 2020, each share of Alcentra Capital common stock issued and outstanding immediately prior to the effective time of the Alcentra Acquisition was converted into the right to receive from the Company, in accordance with the Merger Agreement, (a) approximately $1.50 per share in cash consideration less $0.80 per share spillover dividend declared by Alcentra Capital, and (b) stock consideration at the fixed exchange ratio of 0.4041 shares, par value $0.001 per share, of the Company’s common stock (the “Exchange Ratio”) (and, if applicable, cash in lieu of fractional shares of the Company’s common stock). The Exchange Ratio was fixed on the date of the Merger Agreement, and was not subject to adjustment based on changes in the trading price of Alcentra Capital’s common stock before the closing of the Alcentra Acquisition. Based on the number of shares of Alcentra Capital common stock outstanding on the date of the merger, approximately 5,203,016 of the Company’s shares of common stock were exchanged for approximately 12,875,566 outstanding shares of Alcentra Capital common stock, subject to adjustment in certain limited circumstances. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in private offering were terminated. Additionally, on August 12, 2019, the Company entered into an agreement with the Adviser in connection with the Alcentra Acquisition. Under the terms of the Transaction Support Agreement, in connection with the consummation of the Alcentra Acquisition the Adviser (a) provided cash consideration of approximately $1.68 per share of Alcentra Capital common stock, payable to Alcentra Capital stockholders in accordance with the terms and conditions set forth in the Merger Agreement at closing, (b) entered into an amendment to the Investment Advisory Agreement to (i) permanently reduce the management fee from 1.5% to 1.25%, (ii) increase the incentive fee hurdle from 6% to 7% annualized, (iii) waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the transaction so that only 0.75% shall be charged for such time period, and (iv) waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021 after the transaction and (c) fund up to $1,419 of expenses that the Company incurs in connection with completing the Alcentra Acquisition. The merger of Alcentra Capital with and into Crescent Capital BDC was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations-Related Issues. Accordingly, transaction expenses of $7,250, net of Adviser transaction support of $1,419, were included in total consideration paid, and no goodwill was recognized. In evaluating whether the merger was an asset acquisition or business combination, the Company considered (i) whether substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset or group of similar identifiable assets; and (ii) whether the set of acquired assets included at least one substantive process. Since the acquired assets consisted of similar classes of financial assets, and since the Company did not acquire an organized workforce or other substantive processes in the transaction, it was deemed to be an asset acquisition. Total consideration paid by the Company, including transaction costs related to the merger, of $118,256 was allocated to the acquired assets and assumed liabilities based upon their relative fair values as of the closing date, subject to the limitation that certain “non-qualifying” assets, including financial instruments, could not be assigned an amount greater than their fair values. As a result of this limitation, total consideration paid by the Company exceeded the fair value of the net assets acquired by $3,825, which has been presented as a realized loss in the Company’s Consolidated Statement of Operations for the nine months ended September 30, 2020. The Company estimated the fair value of the assets acquired and liabilities assumed in accordance with ASC 820; the methodologies utilized to make these estimates were consistent with those used by the Company in estimating the fair value of its own assets and liabilities. 57 Table of Contents The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as a result of the Alcentra Acquisition (in thousands): Consideration Paid by the Company Common stock issued by the Company (1) $ 101,963 Cash Consideration paid by the Company 9,043 Transaction costs 7,250 Total Purchase Price $ 118,256 Assets (Liabilities) Acquired Investment portfolio (2) $ 195,682 Cash 3,409 Portfolio receivables 1,003 Other receivable 395 InterNotes ® (50,271 ) Secured credit facility (34,558 ) Borrowing expense payable (834 ) Other payables (395 ) Net Assets Acquired $ 114,431 Realized loss on asset acquisition $ 3,825 (1) Common stock consideration was issued at the Company’s Net Asset Value of $19.60 at the date of the Alcentra Acquisition. (2) Investments acquired were recorded at fair value at the date of the acquisition, which is also the Company’s initial cost basis. Note 14. Stock Repurchase Program On January 31, 2020, the Company entered into a $20,000 repurchase plan which allowed it to purchase shares in the open market any time the Company’s common stock trades below ninety percent (90%) of its most recently disclosed net asset value per share. The plan was subject to compliance with the Company’s liquidity, covenant, leverage and regulatory requirements. Pursuant to the terms of the repurchase plan, repurchases began on March 2, 2020. On April 9, 2020, the Company’s Board of Directors unanimously approved the termination of the Company’s stock repurchase program. The following table summarizes share repurchases under the Company’s stock repurchase program for the three and nine months ended September 30, 2020. There were no share repurchases for the three and nine months ended September 30, 2019 (in thousands, except share and per share data). Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Dollar amount repurchased $ — $ — $ 2,208 $ — Shares repurchased — — 192,415 — Average price per share including commission $ — $ — $ 11.48 $ — Weighted average discount to net asset value — — 40.89 % (1) — (1) Weighted average discount is calculated using the December 31, 2019 proforma combined NAV of $19.42 per share assuming the effect of the Alcentra Acquisition. Note 15. Subsequent Events The Company’s management evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than the items below, there have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of September 30, 2020 and for the nine months ended September 30, 2020. 58 Table of Contents On October 21, 2020, Crescent Capital Group LP entered into a definitive agreement with Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”), whereby (i) Sun Life would acquire a majority interest in CCG LP and receive a call option to acquire the remaining interest in CCG LP approximately five years from consummation of the transaction, and (ii) if Sun Life does not exercise such call option, CCG LP holders will have a put option to sell their remaining interests to Sun Life (the “Transaction”). Consummation of the Transaction will result in Sun Life having at least a majority indirect ownership interest in Crescent Capital Advisors, LLC, the investment adviser of Crescent Capital BDC, Inc. Upon consummation of the Transaction, key senior management of CCG LP are expected to continue to operate in the same capacity as prior to the Transaction. Additionally, Sun Life has advised CCG LP that it intends to purchase up to $10,000 of the BDC’s common stock over time following the consummation of the Transaction. The timing, manner, price and amount of any share purchases will be determined by Sun Life, in its discretion, based upon the evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. Sun Life is not required to purchase any specific number of shares and it cannot be assured that any shares will be purchased by Sun Life. If the Transaction is consummated, it will result in a change of control of CCG LP, which will result in an assignment of the current investment advisory agreement between the Company and the Adviser under the Investment Company Act of 1940. As a result, the current investment advisory agreement will terminate upon completion of the Transaction, and the Company’s stockholders will be asked to approve a new investment advisory agreement between the Company and the Adviser. All terms are expected to remain unchanged from the current investment advisory agreement, except with respect to the initial term of the agreement. The consummation of the Transaction is expected to occur in late 2020 and is subject to customary closing conditions and the receipt of any required regulatory approvals. On October 28, 2020, the Company drew the remaining $25,000 of $50,000 5.95% senior unsecured notes due July 30, 2023. On November 3, 2020, the Company’s Board of Directors declared a regular cash dividend of $0.41 per share, which will be paid on or about January 15, 2021 to stockholders of record as of December 31, 2020. 59 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The information contained in this section should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward Looking Statements” set forth on page 1 of this Quarterly Report on Form 10-Q. In this report, “we,” “us,” “our” and “Company” refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries. OVERVIEW We are a specialty finance company focused on lending to middle-market companies and were incorporated under the laws of the State of Delaware on February 5, 2015 (“Inception”). On January 30, 2020, we changed our state of incorporation from the State of Delaware to the State of Maryland. We have elected to be treated as a BDC under the 1940 Act. In addition, we have elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income and tax-exempt interest. We are managed by our investment adviser, Crescent Cap Advisors, LLC (the “Adviser”, and formerly, CBDC Advisors, LLC), an investment adviser that is registered with the SEC under the 1940 Act. Our administrator, CCAP Administration LLC (the “Administrator”, and formerly, CBDC Administration, LLC) provides the administrative services necessary for us to operate. Company management consists of investment and administrative professionals from the Adviser and Administrator along with our Board. The Adviser directs and executes our investment operations and capital raising activities subject to oversight from the Board, which sets our broad policies. The Board has delegated investment management of our investment assets to the Adviser. The Board consists of six directors, four of whom are independent. Our primary investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We seek to achieve our investment objectives by investing primarily in secured debt (including senior secured first lien, unitranche and senior secured second-lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from our target companies as primary market or private credit investments ( i.e. , private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated “over-the-counter” market ( i.e. , broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, broadly syndicated loans and bonds are generally more liquid than and complement our private credit transactions. “First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets. “Unitranche first lien” investments are loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, we may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. “Second lien” investments are loans with a second priority lien on the assets of the portfolio company. We obtain security interests in the assets of the portfolio company that serve as collateral in support of the repayment of such loans. This collateral serves as collateral in support of the repayment of these loans. “Mezzanine” or “unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other indebtedness. Alcentra Acquisition On August 12, 2019, we entered into the Merger Agreement to acquire Alcentra Capital, in a cash and stock transaction. The board of directors of both companies each unanimously approved the Alcentra Acquisition and on January 29, 2020, Alcentra Capital’s stockholders approved the merger and our stockholders approved the issuance of shares of our common stock to Alcentra Capital’s stockholders. On January 31, 2020, we completed the Alcentra Acquisition, pursuant to the terms and conditions of the Merger Agreement. To effect the acquisition, Acquisition Sub merged with and into Alcentra Capital, with Alcentra Capital surviving the merger as our wholly owned subsidiary. Immediately thereafter and as a single integrated transaction, Alcentra Capital consummated the Second Merger, whereby it merged with and into us, with Crescent Capital BDC surviving the merger. Pursuant to the Merger Agreement, Alcentra Capital stockholders received the right to the following merger consideration in exchange for each share of Alcentra Capital common stock outstanding immediately prior to January 31, 2020, (a) $3.1784 per share in cash consideration (less the $0.8000 final dividend declared by Alcentra Capital) and (b) stock consideration at the fixed exchange ratio of 0.4041 shares of Common Stock. This resulted in our then-existing stockholders owning approximately 82% of us and Alcentra Capital’s then-existing stockholders owning approximately 18% of us. 60 Table of Contents The aggregate cash consideration was comprised of (i) $19.3 million in cash, or $1.5023 per share, from us (less $10.3 million or $0.8000 per share in final dividends paid by Alcentra Capital on January 31, 2020) and (ii) $21.6 million in cash, or $1.6761 per share, in transaction support provided by the Adviser. KEY COMPONENTS OF OPERATIONS Investments We expect our investment activity to vary substantially from period to period depending on many factors, the general economic environment, the amount of capital we have available to us, the level of merger and acquisition activity for middle-market companies, including the amount of debt and equity capital available to such companies and the competitive environment for the type of investments we make. In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors. We may not invest in any assets other than “qualifying assets” specified in the 1940 Act, unless, at the time the investments are made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the SEC, “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million. The Investment Adviser Our investment activities are managed by the Adviser, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“CCG LP”), pursuant to which CCG LP provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to the resources of CCG LP so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of CCG LP’s investment professionals. Revenues We generate revenue primarily in the form of interest income on debt investments, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. We may receive other income, which may include income such as consent, waiver, amendment, underwriting, and arranger fees associated with our investment activities as well as any fees for managerial assistance services rendered to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. We also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into income over the life of the loan using the effective yield method. Expenses Our primary operating expenses include the payment of management fees and incentive fees to the Adviser under the Investment Advisory Agreement, as amended, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with our sub-administration agreement with State Street Bank and Trust Company and other operating costs described below. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including: • the cost of calculating our net asset value, including the cost of any third-party valuation services; • fidelity bond, directors’ and officers’ liability insurance and other insurance premiums; • fees and expenses associated with independent audits and outside legal costs; • independent directors’ fees and expenses; • administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, rent and the allocable portion of the cost of certain professional services provided to us, including but not limited to, our compliance professionals, our legal counsel and other professionals); 61 Table of Contents • U.S. federal, state and local taxes; • the cost of effecting sales and repurchases of shares of our common stock and other securities; • fees payable to third parties relating to making investments, including out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments; • out-of-pocket fees and expenses associated with marketing efforts; • federal and state registration fees and any stock exchange listing fees; • brokerage commissions; • costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; • debt service and other costs of borrowings or other financing arrangements; and • all other expenses reasonably incurred by us in connection with making investments and administering our business. We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines. Leverage Our financing facilities allow us to borrow money and lever our investment portfolio, subject to the limitations of the 1940 Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our stockholders. The use of leverage involves significant risks. In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with shareholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing. PORTFOLIO INVESTMENT ACTIVITY We seek to create a broad and diversified portfolio that generally includes senior secured first lien, unitranche, senior secured second lien and subordinated loans and minority equity securities of U.S. middle market companies. The size of our individual investments will vary proportionately with the size of our capital base. We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities have speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity. As of September 30, 2020 and December 31, 2019, our portfolio at fair value was comprised of the following: ($ in millions) September 30, 2020 December 31, 2019 Investment Type Fair Value Percentage Fair Value Percentage Senior Secured First Lien $ 375.5 39.1% $ 351.3 48.3% Unitranche First Lien 362.0 37.7 218.3 30.1 Unitranche First Lien – Last Out 15.0 1.5 16.2 2.2 Senior Secured Second Lien 99.3 10.3 58.9 8.1 Unsecured Debt 2.2 0.2 7.4 1.0 Equity & Other 53.6 5.6 21.4 3.0 LLC/LP Equity Interests 53.5 5.6 53.0 7.3 Total investments $ 961.1 100.0% $ 726.5 100.0% 62 Table of Contents The following table shows our investment activity by investment type: ($ in millions) For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 (1) September 30, 2019 New investments committed at cost: Senior Secured First Lien $ 30.4 $ 30.0 $ 79.2 $ 115.6 Unitranche First Lien 51.6 66.1 129.1 114.1 Unitranche First Lien – Last Out — — — 16 Senior Secured Second Lien — — 9.4 4.4 Unsecured Debt — — — — Equity & Other 2.1 1.9 2.1 2.5 LLC/LP Equity Interests — 14 8.5 44.9 Total $ 84.1 $ 112.3 $ 228.3 $ 297.5 Proceeds from investments sold or repaid: Senior Secured First Lien $ 26.3 $ 8.3 $ 127.2 $ 46.7 Unitranche First Lien 3.9 16.3 27.3 17.2 Unitranche First Lien – Last Out — 0.1 0.2 16.7 Senior Secured Second Lien 10.1 13.5 18.8 13.5 Unsecured Debt 6.6 — 6.6 — Equity & Other — 0.2 0.4 0.2 LLC/LP Equity Interests 0.8 0.0 1.8 2.8 Total $ 47.7 $ 38.5 $ 182.3 $ 97.1 Net increase (decrease) in portfolio $ 36.4 $ 73.8 $ 46.0 $ 200.4 (1) Excludes $195.7 million of assets at cost acquired in connection with the Alcentra Acquisition. The asset acquired, at cost, were comprised of $82.2 million of senior secured first lien, $45.0 million of unitranche first lien, $53.0 million of senior secured second lien, $1.2 million of unsecured debt and $14.3 million of equity investments. The following table presents certain selected information regarding our investment portfolio as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Weighted average yield on income producing securities (at cost) (1) 7.9% 8.1% (2) Percentage of debt bearing a floating rate (at fair value) 98.0% 97.9% Percentage of debt bearing a fixed rate (at fair value) 2.0% 2.1% Number of portfolio companies 128 98 (1) Yield excludes investments on non-accrual status. (2) Prior period updated to conform to current period methodology. 63 Table of Contents The following table shows the amortized cost of our performing and non-accrual debt and income producing debt securities as of September 30, 2020 and December 31, 2019. ($ in millions) September 30, 2020 December 31, 2019 Amortized Cost Percentage Amortized Cost Percentage Performing $ 850.6 96.2% $ 645.4 98.1% Non-accrual 33.4 3.8 12.6 1.9 Total income producing debt securities $ 884.0 100.0% $ 658.0 100.0% Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2020, we had investments in four portfolio companies with seven investment positions on non-accrual status, which represented 3.8% and 2.1% of the total debt investments at cost and fair value, respectively. As of December 31, 2019, we had investments in one portfolio company with three investment positions on non-accrual status, which represented 1.9% and 1.0% of total debt investments at cost and fair value, respectively. The remaining debt investments were performing and current on their interest payments as of September 30, 2020 and December 31, 2019. The Adviser monitors our portfolio companies on an ongoing basis. The Adviser monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Adviser has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following: • assessment of success of the portfolio company in adhering to its business plan and compliance with covenants; • review of monthly and quarterly financial statements and financial projections for portfolio companies. • contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments; • comparisons to other companies in the industry; and • possible attendance at, and participation in, board meetings. As part of the monitoring process, the Adviser regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories: 1 Involves the least amount of risk in our portfolio. The investment/borrower is performing above expectations since investment, and the trends and risk factors are generally favorable, which may include the financial performance of the borrower or a potential exit. 2 Involves an acceptable level of risk that is similar to the risk at the time of investment. The investment/borrower is generally performing as expected, and the risk factors are neutral to favorable. 3 Involves an investment/borrower performing below expectations and indicates that the investment’s risk has increased somewhat since investment. The borrower’s loan payments are generally not past due and more likely than not the borrower will remain in compliance with debt covenants. An investment rating of 3 requires closer monitoring. 4 Involves an investment/borrower performing materially below expectations and indicates that the loan’s risk has increased materially since investment. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due). Placing loans on non-accrual status should be considered for investments rated 4. 5 Involves an investment/borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since investment. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are not anticipated to be repaid in full and the fair market value of the loan should be reduced to the anticipated recovery amount. Loans with an investment rating of 5 should be placed on non-accrual status. The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of September 30, 2020 and December 31, 2019. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors. 64 Table of Contents ($ in millions) September 30, 2020 December 31, 2019 Investment Performance Rating Investments at Fair Value Percentage of Total Portfolio Investments at Fair Value Percentage of Total Portfolio 1 $ 1.3 0.1% $ 19.1 2.6% 2 761.8 79.3 653.1 89.9 3 180.2 18.7 47.8 6.6 4 17.8 1.9 6.5 0.9 5 — — — — Total $ 961.1 100.0% $ 726.5 100.0% RESULTS OF OPERATIONS Operating results for the three and nine months ended September 30, 2020 and 2019 were as follows: ($ in millions) For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Total investment income $ 18.7 $ 14.8 $ 56.8 $ 38.8 Total net expenses 6.5 5.7 20.1 15.4 Net investment income $ 12.2 $ 9.1 $ 36.7 $ 23.4 Net realized gain (loss) on investments (1) (0.5 ) (0.0 ) (1.7 ) (0.5 ) Net unrealized appreciation (depreciation) on investments (1)(2) 26.8 (6.4 ) (11.1 ) (2.3 ) Net realized and unrealized gains (losses) on investments $ 26.3 $ (6.4 ) $ (12.8 ) $ (2.8 ) Realized loss on asset acquisition — — (3.8 ) — Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments (0.2 ) (0.0 ) 0.1 (0.5 ) Net increase (decrease) in net assets resulting from operations $ 38.3 $ 2.7 $ 20.2 $ 20.1 (1) Includes gains and losses related to foreign currency transactions and translation. (2) Includes gains and losses related to foreign currency forward contracts Investment Income ($ in millions) For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Interest from investments $ 17.5 $ 12.8 $ 52.2 $ 34.7 Dividend Income 1.2 1.9 3.6 3.4 Other income — 0.1 1.0 0.7 Total $ 18.7 $ 14.8 $ 56.8 $ 38.8 Interest income, which includes amortization of upfront fees, increased from $12.8 million for the three months ended September 30, 2019 to $17.5 million for the three months ended September 30, 2020, due to an increase in the size of our portfolio related to the Alcentra Acquisition and organic net deployment. Included in interest from investments for the three months ended September 30, 2020 and September 30, 2019 are $0.3 million and $0.7 million in accelerated accretion of OID, respectively. Dividend income decreased from $1.9 million for the three months ended September 30, 2019 to $1.2 million for the three months ended September 30, 2020 due to lower dividends declared by the Senior Loan Fund and GACP II LP. Other income which includes amendment fees, amortization of loan administration fees earned as the administration agent, and other miscellaneous fee income, decreased from $0.1 million for the three months ended September 30, 2019 to $0 for the three months ended September 30, 2020. 65 Table of Contents Interest income, which includes amortization of upfront fees, increased from $34.7 million for the nine months ended September 30, 2019 to $52.2 million for the nine months ended September 30, 2020, due to an increase in the size of our portfolio related to the Alcentra Acquisition and organic net deployment. Included in interest from investments for the nine months ended September 30, 2020 and September 30, 2019 are $1.6 million and $1.3 million in accelerated accretion of OID, respectively. Dividend income increased from $3.4 million for the nine months ended September 30, 2019 to $3.6 million for the nine months ended September 30, 2020 due to higher dividend payments received from our equity investments. Other income which includes amendment fees, amortization of loan administration fees earned as the administration agent, and other miscellaneous fee income, increased from $0.7 million to $1.0 million for the nine months ended September 30, 2019 and 2020. Expenses ($ in millions) For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Interest and debt financing costs $ 3.5 $ 3.5 $ 11.5 $ 9.5 Management fees 2.9 2.5 8.3 6.6 Incentive fees 2.1 1.4 6.3 3.5 Professional fees 0.4 0.2 1.1 0.6 Directors’ fees 0.1 0.1 0.3 0.2 Other general and administrative expenses 0.7 0.7 1.8 1.7 Total expenses $ 9.7 $ 8.4 $ 29.3 $ 22.1 Management fee waiver (1.2 ) (1.3 ) (3.4 ) (3.2 ) Incentive fee waiver (2.1 ) (1.4 ) (6.3 ) (3.5 ) Net expenses $ 6.4 $ 5.7 $ 19.6 $ 15.4 Income and excise taxes 0.1 0.0 0.5 0.0 Total $ 6.5 $ 5.7 $ 20.1 $ 15.4 Interest and Credit Facility Expenses Interest and debt financing costs include interest, amortization of deferred financing costs, upfront commitment fees and unused fees on our credit facilities. Interest and debt financing costs remained unchanged at $3.5 million for the three months ended September 30, 2019 and 2020. The debt outstanding increased from $323.2 million as of September 30, 2019 to $426.9 million as of September 30, 2020. The increase in the debt outstanding was offset by a decrease in the weighted average interest rate (including deferred upfront financing costs and unused fees) from 4.3% as of September 30, 2019 to 3.1% as of September 30, 2020, primarily driven by a decline in benchmark rates. Interest and debt financing costs increased from $9.5 million for the nine months ended September 30, 2019 to $11.5 million for the nine months ended September 30, 2020. This increase was primarily due to an increase in the debt outstanding in connection with the Alcentra Acquisition from $323.2 million as of September 30, 2019 to $426.9 million as of September 30, 2020. The increase in the debt outstanding was partially offset by the average interest rate (including deferred upfront financing costs) decreasing from 4.3% as of September 30, 2019 to 3.1% as of September 30, 2020, primarily driven by a decline in benchmark rates. Investment Advisory Agreements On June 2, 2015, we entered into an investment advisory agreement with the Adviser (the “Investment Advisory Agreement”), which was subsequently replaced by the Amended and Restated Investment Advisory Agreement (together with the Investment Advisory Agreement, the “Advisory Agreements”), which was approved by our stockholders on January 29, 2020 in connection with the Alcentra Acquisition. Under the terms of the Amended and Restated Investment Advisory Agreement, the Adviser provides investment advisory services to us and our portfolio investments. The Adviser’s services under the Amended and Restated Investment Advisory Agreement are not exclusive, and the Adviser is free to furnish similar or other services to others so long as its services to us are not impaired. Under the terms of the Advisory Agreements, the Adviser is entitled to receive a base management fee and may also receive incentive fees, as discussed below. Base Management Fee (prior to February 1, 2020) Prior to February 1, 2020, pursuant to the Investment Advisory Agreement, the base management fee was calculated and payable quarterly in arrears at an annual rate of 1.50% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The base management fee was calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for share issuances or repurchases during the current calendar quarter. Under the Investment Advisory Agreement, the Adviser agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay our expenses) during the period prior to February 3, 2020, the date of the our qualified initial public offering, as defined by the Investment Advisory Agreement (“Qualified IPO”). The listing of our Common Stock on NASDAQ on February 3, 2020 qualified as a Qualified IPO. The Adviser is not permitted to recoup any waived amounts at any time. 66 Table of Contents New Base Management Fee (effective February 1, 2020) Effective February 1, 2020, pursuant to the Amended and Restated Investment Advisory Agreement, the base management fee is calculated and payable quarterly in arrears at an annual rate of 1.25% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The base management fee is calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. In addition, under the terms of the Amended and Restated Advisory Agreement, the Adviser agreed to waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the closing of the Alcentra Acquisition so that only 0.75% shall be charged for such time period. The Adviser is not permitted to recoup any waived amounts at any time. For the three and nine months ended September 30, 2020, we incurred management fees of $1.7 and $4.9 million, respectively, which are net of waived amounts, of $1.2 and $3.4 million, respectively, of which $1.7 million was payable at September 30, 2020. For the three and nine months ended September 30, 2019, we incurred management fees of $1.2 and $3.4 million, respectively, which are net of waived amounts, of $1.3 and $3.2 million respectively, of which $1.2 million was payable at September 30, 2019. The Adviser has voluntarily waived its right to receive management fees on our investment in GACP II LP for any period in which GACP II LP remains in the investment portfolio. For the three and nine months ended September 30, 2020, $0.0 and $0.1 million, respectively, of management fees waived were attributable to our investment in GACP II LP. For the three and nine months ended September 30, 2019, $0.0 and $0.1 million, respectively, of management fees waived were attributable to our investment in GACP II LP. These amounts are excluded from the management fee waived amounts above. Incentive Fee (prior to February 1, 2020) Under the Investment Advisory Agreement, the Incentive Fee consisted of two parts. The first part, the income incentive fee, was calculated and payable quarterly in arrears and equaled (a) 100% of the excess of the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.5% per quarter (6.0% annualized) (the “Hurdle”), and a catch-up feature until the Adviser received 15% of the pre-incentive fee net investment income for the current quarter up to 1.7647% (the “Catch-up”), and (b) 15% of all remaining pre-incentive fee net investment income above the “Catch-up.” The second part, the capital gains incentive fee, was determined and payable in arrears as of the end of each fiscal year at a rate of 15.0% of our realized capital gains, if any, on a cumulative basis from Inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. At the 2018 Annual Meeting of Stockholders, in connection with the extension of the deadline to consummate a Qualified IPO, the Adviser agreed to waive its rights under the Investment Advisory Agreement to (i) the income incentive fee and (ii) the capital gain incentive fee for the period from April 1, 2018 through February 1, 2020. Incentive Fee (effective February 1, 2020) Under the Amended and Restated Investment Advisory Agreement, the Incentive Fee consists of two parts. The first part, the income incentive fee, is calculated and payable quarterly in arrears and (a) equals 100% of the excess of the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.75% per quarter (7.0% annualized) (the “Hurdle”), and a catch-up feature until the Adviser has received 17.5%, of the pre-incentive fee net investment income for the current quarter up to 2.1212% (the “Catch-up”), and (b) 17.5% of all remaining pre-incentive fee net investment income above the “Catch-up.” In addition, under the terms of the Amended and Restated Investment Advisory Agreement, the Adviser agreed to waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021. Once the Adviser begins to earn income incentive fees, the Adviser will voluntarily waive the income incentive fees attributable to the investment income accrued by us as a result of our investment in GACP II. The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year at a rate of 17.5% of our realized capital gains, if any, on a cumulative basis from Inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. Since the Qualified IPO occurred on a date other than the first day of a calendar quarter, the income incentive fee shall be calculated for such calendar quarter at a weighted rate calculated based on the fee rates applicable before and after a Qualified IPO based on the number of days in such calendar quarter before and after the Qualified IPO. For the avoidance of doubt, such capital gains incentive fee shall be equal to 15.0% of our realized capital gains on a cumulative basis from Inception through the day before the Qualified IPO, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. Following the Qualified IPO, solely for the purposes of calculating the capital gains incentive fee, we will be deemed to have previously paid capital gains incentive fees prior to a Qualified IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to the Qualified IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15.0%. In the event that the Amended and Restated Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee. 67 Table of Contents Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during each calendar quarter, minus operating expenses for such quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, original issue discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income will be compared to a “Hurdle Amount” equal to the product of (i) the Hurdle rate of 1.50% or 1.75% per quarter, 6.00% or 7.00% annualized, prior to and effective February 1, 2020, respectively, and (ii) our net assets (defined as total assets less indebtedness, before taking into account any incentive fees payable during the period), at the end of the immediately preceding calendar quarter, subject to a “catch-up” provision incurred at the end of each calendar quarter. For the three months ended September 30, 2020 and 2019, we incurred income incentive fees of $2.1 million and $1.4 million, of which $2.1 million and $1.4 million were waived. For the nine months ended September 30, 2020 and 2019, we incurred income incentive fees of $6.3 million and $3.5 million, of which $6.3 million and $3.5 million were waived. $0 was payable at September 30, 2020 and 2019, respectively. GAAP Incentive Fee on Cumulative Unrealized Capital Appreciation We accrue, but do not pay, a portion of the Incentive Fee based on capital gains with respect to net unrealized appreciation. Under GAAP, we are required to accrue an Incentive Fee based on capital gains that includes net realized capital gains and losses and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the accrual for the Incentive Fee based on capital gains, we consider the cumulative aggregate unrealized capital appreciation in the calculation, since an Incentive Fee based on capital gains would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee payable under the Amended and Restated Investment Advisory Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 15% (pre February 3, 2020) or 17.5% (effective February 3, 2020) of such amount, minus the aggregate amount of actual Incentive Fees based on capital gains paid in all prior periods. If such amount is negative, then there is no accrual for such period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three and nine months ended September 30, 2020 and 2019, we accrued no incentive fee on cumulative unrealized capital appreciation. Professional Fees and Other General and Administrative Expenses Professional fees generally include expenses from independent auditors, tax advisors, legal counsel and third party valuation agents. Other general and administrative expenses generally include expenses from the sub-administration agreement, insurance premiums, overhead and staffing costs allocated from the Administrator and other miscellaneous general and administrative costs associated with our operations and investment activity. Professional fees increased from $0.2 million for the three months ended September 30, 2019 to $0.4 million for the three months ended September 30, 2020, while other general and administrative expenses remained unchanged at $0.7 for the three months ended September 2019 and 2020. The net increase in expenses was due to an increase in costs associated with servicing a growing investment portfolio. Professional fees increased from $0.6 million for the nine months ended September 30, 2019 to $1.1 million for the nine months ended September 30, 2020, while other general and administrative expenses increased from $1.7 million for the nine months ended September 30, 2019 to $1.8 million for the nine months ended September 30, 2020. The net increase in expenses was due to an increase in costs associated with servicing a growing investment portfolio. Organization expenses We agreed to repay the Adviser for initial organization costs and equity offering costs incurred prior to the commencement of our operations up to a maximum of $1.5 million on a pro rata basis over the first $350.0 million of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. The initial 3 year term was later extended to June 30, 2019, with shareholder approval. To the extent such costs related to equity offerings, these costs were charged as a reduction of capital upon the issuance of common shares. To the extent such costs related to organization costs, these costs were expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Adviser was responsible for organization and private equity offerings costs in excess of $1.5 million. During the reimbursement period which began on June 26, 2015 and expired on June 30, 2019, the Adviser had allocated to us $0.8 million of equity offering costs and $0.6 million of organization costs. Income Tax Expense, Including Excise Tax We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must generally (among other requirements) timely distribute to our stockholders at least 90% of our investment company taxable income, as defined by the Code, for each year. In order to maintain our RIC status, we intend to make the requisite distributions to our stockholders which will generally relieve us from corporate-level income taxes. 68 Table of Contents In order to not to be subject to federal excise taxes, we must distribute annually an amount at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of our net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions into the next tax year and pay a 4% excise tax on such income, as required. If we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax on estimated excess taxable income as such taxable income is earned. For the three months ended September 30, 2020 and 2019, we expensed an excise tax of $0.1 million and $0.0 million, respectively, of which $0.1 million and $0.0 million remained payable, respectively. For the nine months ended September 30, 2020 and 2019, we expensed an excise tax of $0.5 million and $0.0 million, respectively, of which $0.3 million and $0.0 million remained payable, respectively. Net Realized and Unrealized Gains and Losses We value our portfolio investments quarterly and any changes in fair value are recorded as unrealized appreciation (depreciation) on investments. For the three and nine months ended September 30, 2020 and 2019, net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following: ($ in millions) For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Realized losses on non-controlled and non-affiliated investments $ (0.0 ) $ (0.2 ) (1.5 ) $ (0.5 ) Realized gains on non-controlled and non-affiliated investments 0.0 0.1 0.4 0.1 Realized losses on foreign currency transactions (0.0 ) (0.0 ) (0.3 ) (0.1 ) Realized gains on foreign currency transactions 0.0 0.1 0.2 — Realized losses on non-controlled and affiliated investments (1.8 ) — (1.8 ) — Realized gains on non-controlled and affiliated investments 1.3 — 1.3 — Realized losses on controlled and affiliated investments — — — — Realized gains on controlled and affiliated investments — — — — Net realized gains (losses) on investments $ (0.5 ) $ (0.0 ) $ (1.7 ) $ (0.5 ) Change in unrealized depreciation on non-controlled and non-affiliated investments $ — $ (6.2 ) $ (21.6 ) $ (7.3 ) Change in unrealized appreciation on non-controlled and non-affiliated investments 18.2 — 0.8 4.5 Change in unrealized depreciation on foreign currency translation (0.3 ) (1.4 ) (0.5 ) (1.3 ) Change in unrealized appreciation on foreign currency translation 0.6 0.0 0.5 0.4 Change in unrealized depreciation on non-controlled and affiliated investments — (0.0 ) (0.4 ) — Change in unrealized appreciation on non-controlled and affiliated investments 6.2 — 15.0 0.6 Change in unrealized depreciation on controlled and affiliated investments — — (5.5 ) (0.7 ) Change in unrealized appreciation on controlled and affiliated investments 3.4 0.0 — — Change in unrealized depreciation on foreign currency forwards (1.3 ) — (0.1 ) — Change in unrealized appreciation on foreign currency forwards — 1.2 0.7 1.5 Net unrealized appreciation (depreciation) $ 26.8 $ (6.4 ) $ (11.1 ) $ (2.3 ) Realized loss on asset acquisition — — (3.8 ) — Net realized and unrealized gains (losses) on investments and asset acquisition $ 26.3 $ (6.4 ) $ (16.6 ) $ (2.8 ) 69 Table of Contents For the three and nine months ended September 30, 2020 as compared to the three and nine months ended September 30, 2019, the change in unrealized depreciation on debt and equity investments was largely due to increased market volatility resulting from the COVID-19 pandemic and a subsequent recovery. Hedging We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks. Generally, we do not intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to our business or results of operations. These hedging activities, which are in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful. During the nine months ended September 30, 2020 and September 30, 2019, our average U.S. Dollar notional exposure to foreign currency forward contracts were $34.1 million and $21.9 million, respectively. Senior Loan Fund The Senior Loan Fund, an unconsolidated limited liability company, was formed on September 26, 2018 and commenced operations in February 2019. We invest together with Masterland through the Senior Loan Fund. Masterland is a wholly owned subsidiary of China Orient Asset Management (International) Holding Limited (HK). The Senior Loan Fund’s principal purpose is to make investments in broadly syndicated bank loans, either directly or indirectly through its wholly owned subsidiary, CBDC Senior Loan Sub LLC. We along with Masterland, have each subscribed to fund $40.0 million. Except under certain circumstances, contributions to the Senior Loan Fund cannot be redeemed. The Senior Loan Fund is managed by a four member board of managers, on which we and Masterland have equal representation. Investment decisions generally must be unanimously approved by a quorum of the board of managers. Since we do not have a controlling financial interest in the Senior Loan Fund, it is not consolidated. The Senior Loan Fund is an investment company and measured using the net asset value per share as a practical expedient for fair value. We along with Masterland had subscribed to fund and contributed the following to the Senior Loan Fund: ($ in millions) September 30, 2020 December 31, 2019 Member Subscribed to fund Contributed Unfunded Commitment Subscribed to fund Contributed Unfunded Commitment Company $ 40.0 $ 39.0 $ 1.0 $ 40.0 $ 34.0 $ 6.0 Masterland 40.0 39.0 1.0 40.0 34.0 6.0 Total $ 80.0 $ 78.0 $ 2.0 $ 80.0 $ 68.0 $ 12.0 The Senior Loan Fund is capitalized pro rata with LLC equity interest as transactions are completed. The Senior Loan Fund has a revolving credit facility with Royal Bank of Canada (the “RBC Facility”), as amended, which permitted up to $300.0 million of borrowings as of September 30, 2020. Borrowings under the RBC Facility are secured by all assets of CBDC Senior Loan Sub LLC. The interest rate on the credit facility is London Interbank Offered Rate (“LIBOR”), with no LIBOR floor, plus margin, which ranges between 1.25% and 1.45% based on pricing of the pledged collateral. 70 Table of Contents Below is a summary of the Senior Loan Fund’s portfolio as of September 30, 2020 and December 31, 2019: ($ in millions) As of September 30, 2020 As of December 31, 2019 Total senior secured debt, at par $ 291.6 $ 275.6 Total senior secured debt, at fair value $ 278.7 $ 275.1 Weighted average current interest rate on senior secured debt (1) 3.4 % 4.9 % Number of borrowers in the Senior Loan Fund’s portfolio 191 169 Largest loan to a single borrower $ 3.5 $ 3.5 Senior Secured First Lien investments as a % of total investments, at fair value 100 % 100.0 % United States based investments as a % of total investments, at fair value 90.7 % 89.7 % Non-accrual investments as % of total investment, at cost 0.0 % 0.0 % (1) Computed as (a) the annual stated interest rate on accruing senior secured debt, divided by (b) total senior secured debt at par amount, excluding fully unfunded commitments. Below is selected balance sheet information for the Senior Loan Fund as of September 30, 2020 and December 31, 2019: ($ in millions) As of September 30, 2020 (Unaudited) As of December 31, 2019 Selected Balance Sheet Information: Total investments, at fair value $ 278.7 $ 275.1 Cash and cash equivalents 8.9 7.9 Other assets 6.2 6.7 Total assets $ 293.8 $ 289.7 Debt (net of deferred financing costs of $0.2 and $0.2 million, respectively) $ 212.8 $ 205.8 Other liabilities 13.1 15.0 Total liabilities $ 225.9 $ 220.8 Members’ Capital 67.9 68.9 Total liabilities and members’ capital $ 293.8 $ 289.7 Below is selected statements of operations information for the Senior Loan Fund for the three and nine months ended September 30, 2020 and September 30, 2019: ($ in millions) For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Selected Statements of Operations Information: Total investment income $ 2.7 $ 3.8 $ 8.9 $ 5.9 Expenses Interest and other debt financing costs 1.0 1.9 3.7 2.7 Professional fees 0.0 0.0 0.0 0.1 Other general and administrative expenses 0.1 0.1 0.3 0.2 Total expenses 1.1 2.0 4.0 3.0 Net investment income (loss) 1.6 1.8 4.9 2.9 Net realized gain (loss) on investments (0.5) 0.0 (0.8) 0.1 Net change in unrealized appreciation (depreciation) on investments 7.1 0.1 (12.1) (1.4) Net increase (decrease) in members’ capital $ 8.2 $ 1.9 $ (8.0) $ 1.6 71 Table of Contents FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments; (2) the cost of operations (including paying the Adviser); (3) debt service, repayment, and other financing costs; and (4) cash distributions to the holders of our common stock. We expect to generate additional liquidity from (1) borrowings from our SPV Asset Facility, Corporate Revolving Facility, Unsecured Notes, and from other banks, lenders, or future issuances of debt and equity securities; and, (2) cash flows from operations. As of September 30, 2020, we had $11.6 million in cash and cash equivalents and restricted cash and cash equivalents and $189.5 million of undrawn capacity on our senior unsecured notes and revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. We expect that the market and business disruption created by the COVID-19 pandemic will continue to impact certain aspects of our liquidity, and we are therefore continuously and critically monitoring our operating results, liquidity and anticipated capital requirements. We saw an unprecedented level of calls for revolver fundings in March and April and subsequent repayments as the markets have stabilized. High market spreads and other economic volatility resulted in significant depreciation in the valuations of our investments, particularly in the first quarter, which may adversely impact collateral eligibility and reduce the availability under our credit facilities. However, the undrawn capacity under our facilities as of September 30, 2020 is in excess of our unfunded commitments. As of September 30, 2020, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we were in compliance with all the financial covenant requirements of our credit facilities as of September 30, 2020. However, any continued increase in realized losses or unrealized depreciation of our investment portfolio or further significant reductions in our net asset value as a result of the effects of the COVID-19 pandemic, or otherwise, increase the risk of breaching the relevant covenants requirements. Any breach of these requirements may adversely affect the access to sufficient debt and equity capital. It is impossible at this time to determine the full scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on our liquidity and overall performance . Capital Share Activity Between June 26, 2015, commencement of operations, and January 31, 2020, the date of Alcentra Acquisition, we entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP, providing for the private placement of our common shares. Pursuant to the Subscription Agreements, between June 26, 2015 and January 31, 2020, we issued 23,127,335 common shares for aggregate proceeds of $456.3 million, of which $10.0 million was from CCG LP. Proceeds from the issuances were used to fund our investing activities and for other general corporate purposes. Additionally, on January 31, 2020, we issued 5,203,016 shares in connection with the Alcentra Acquisition. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in private offering were terminated. During the nine months ended September 30, 2020, we issued 30,128 shares of our common stock to investors who have opted into our dividend reinvestment plan for proceeds of $0.6 million. During the nine months ended September 30, 2019, we issued 52,777 shares of our common stock to investors who have opted into our dividend reinvestment plan for proceeds of $1.0 million. Debt Debt consisted of the following as of September 30, 2020 and December 31, 2019: ($ in millions) September 30, 2020 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value (2) Weighted Average Debt Outstanding Weighted Average Interest Rate SPV Asset Facility $ 350.0 $ 228.7 $ 121.3 $ 228.7 $ 230.5 2.64 % Corporate Revolving Facility 200.0 156.8 43.2 156.8 148.0 2.94 % Unsecured Notes 50.0 25.0 25.0 25.0 5.7 6.63 % Internotes ® 16.4 16.4 — 16.4 21.7 6.40 % Total Debt $ 616.4 $ 426.9 $ 189.5 $ 426.9 $ 405.9 3.13 % 72 Table of Contents December 31, 2019 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value (2) Weighted Average Debt Outstanding Weighted Average Interest Rate SPV Asset Facility $ 250.0 $ 220.7 $ 29.3 $ 220.7 $ 201.0 4.03 % Corporate Revolving Facility 200.0 104.7 95.3 104.7 74.9 4.26 % Total Debt $ 450.0 $ 325.4 $ 124.6 $ 325.4 $ 275.9 4.10 % (1) The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments. (2) Amount presented excludes netting of deferred financing costs. The carrying value of our debt as of September 30, 2020 and December 31, 2019 approximates our fair value as the debt, issued at market terms, includes variable interest rates. SPV Asset Facility On March 28, 2016, Crescent Capital BDC Funding, LLC (“CCAP SPV”), a wholly owned subsidiary of CCAP, entered into a loan and security agreement, as amended (the “SPV Asset Facility”) with us as the collateral manager, seller and equity holder, CCAP SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. We consolidate CCAP SPV in our consolidated financial statements and no gain or loss is recognized from the transfer of assets to and from CCAP SPV. Between February 8, 2017 and March 10, 2020, we have entered into multiple amendments to the SPV Asset Facility to, among other things, increase the facility limit from $75 million to $350 million. The maximum commitment amount under the SPV Asset Facility is $350 million, and may be increased with the consent of Wells Fargo or reduced upon our request. Proceeds of the Advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to us in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of (a) the date the borrower voluntarily reduces the commitments to zero, (b) March 10, 2025 (the Facility Maturity Date) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at LIBOR plus a margin with no LIBOR floor. The margin is between 1.65% and 2.20% as determined by the proportion of liquid and illiquid loans pledged to the SPV Asset Facility. We pay unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. The facility size is subject to availability under the borrowing base, which is based on the amount of CCAP SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits. Corporate Revolving Facility On August 20, 2019, we entered into the “Corporate Revolving Facility” with Ally Bank (“Ally”), as Administrative Agent and Arranger. Proceeds of the advances under the Revolving Credit Agreement may be used to acquire portfolio investments, to make distributions to us in accordance with the Revolving Credit Agreement and to pay related expenses. The maximum principal amount of the Corporate Revolving Facility is $200 million, subject to availability under the borrowing base. Borrowings under the Corporate Revolving Facility bear interest at LIBOR plus a 2.35% margin, which includes a 0.05% utilization fee, with no LIBOR floor. We pay unused facility fees of 0.50% per annum on committed but undrawn amounts under the Corporate Revolving Facility. Interest is payable quarterly in arrears. Any amounts borrowed under the Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on August 20, 2024. The Corporate Revolving Facility replaced the prior corporate revolving facility with Capital One, National Association. The maximum principal amount of the prior corporate revolving facility was $85 million, subject to availability under the borrowing base. Borrowings under the prior corporate revolving facility bore interest at LIBOR plus a 1.55% margin with no LIBOR floor. We paid unused facility fees of 0.20% per annum on committed but undrawn amounts. Interest was payable monthly in arrears. We paid down in full and terminated the prior corporate revolving facility on August 20, 2019. Unsecured Notes On July 30, 2020, we completed a private offering of $50.0 million aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “Unsecured Notes”). The Unsecured Notes have a delayed draw feature. The initial issuance of $25.0 million of Unsecured Notes closed July 30, 2020. The issuance of the remaining $25.0 of Unsecured Notes is expected to occur on or before October 28, 2020. The Unsecured Notes will mature on July 30, 2023 and may be redeemed in whole or in part, at our option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the Unsecured Notes is due and payable semiannually in arrears on January 30 th and July 30 th of each year, commencing on January 30, 2021. As of September 30, 2020, we were in compliance with the terms of the note purchase agreement governing the Unsecured Notes. 73 Table of Contents Costs incurred in connection with issuing the Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the Unsecured Notes on an effective yield basis. As of September 30, 2020 and December 31, 2019, deferred financing costs related to the Unsecured Notes were $0.5 million and $0, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities. InterNotes ® On January 31, 2020, in connection with the Alcentra Acquisition, we assumed direct unsecured fixed interest rate obligations or “InterNotes ® ”. The majority of InterNotes ® were issued by Alcentra Corporation between January 2015 and January 2016. Each series of notes has been issued by a separate trust administered by U.S. Bank. As of September 30, 2020, the outstanding Internotes ® bear interest at fixed interest rates ranging between 6.25% and 6.75% and offer a variety of maturities ranging between February 15, 2021 and April 15, 2022. The summary information regarding the SPV Asset Facility, Corporate Revolving Facility, InterNotes ® , Unsecured Notes, and prior corporate revolving facility for the three and nine months ended September 30, 2020 and 2019, were as follows: ($ in millions) For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Borrowing interest expense $ 2.9 $ 3.2 $ 10.0 $ 8.7 Unused facility fees 0.2 0.0 0.5 0.1 Amortization of financing costs 0.4 0.3 1.0 0.7 Total interest and credit facility expenses $ 3.5 $ 3.5 $ 11.5 $ 9.5 Weighted average outstanding balance $ 410.9 $ 291.5 $ 405.9 $ 259.6 To the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced opportunities, or if our Board otherwise determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders, we may enter into new debt financing opportunities in addition to our existing debt. The pricing and other terms of any such opportunities would depend upon market conditions and the performance of our business, among other factors. In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with shareholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing. As of September 30, 2020 and December 31, 2019, our asset coverage ratio was 2.25 to 1. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities. STOCK REPURCHASE PROGRAM On January 31, 2020, we entered into a $20.0 million repurchase plan which allowed us to purchase shares in the open market any time our common stock traded below 90% of the most recently disclosed net asset value per share. The plan was subject to compliance with our liquidity, covenant, leverage and regulatory requirements. Pursuant to the terms of the repurchase plan, repurchases began on March 2, 2020. On April 9, 2020, our Board of Directors unanimously approved the termination of the stock repurchase program. For the nine months ended September 30, 2020, we repurchased 192,415 shares at an average price per share, including commissions, of $11.48. OFF BALANCE SHEET ARRANGEMENTS Our investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on our Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. As of September 30, 2020 and December 31, 2019, we had aggregate unfunded commitments totaling $66.0 million and $82.7 million including foreign denominated commitments converted to USD at the balance sheet date, respectively, under loan and financing agreements. 74 Table of Contents CRITICAL ACCOUNTING POLICIES Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. The critical accounting policies should be read in connection with our risk factors as disclosed herein. In addition to the discussion below, our critical accounting policies are further described in Note 2. Summary of Significant Accounting Policies to our consolidated financial statements. Investment Valuation We apply Financial Accounting Standards Board ASC 820, Fair Value Measurement (“ASC 820”), as amended, which establishes a framework for measuring fair value in accordance with GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, we consider our principal market to be the market that has the greatest volume and level of activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in the determination of fair value. In accordance with ASC 820, these levels are summarized below: Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Investments in investment companies are valued at fair value. Fair values are generally determined utilizing the net asset value (“NAV”) supplied by, or on behalf of, management of each investment company, which is net of management and incentive fees or allocations charged by the investment company and is in accordance with the “practical expedient”, as defined by ASC 820. NAVs received by, or on behalf of, management of each investment company are based on the fair value of the investment company’s underlying investments in accordance with policies established by management of each investment company, as described in each of their financial statements and offering memorandum. Investments which are valued using NAV as a practical expedient are excluded from the above hierarchy. Investments for which market quotations are readily available are typically valued at those market quotations. To valid