Crescent Capital BDC, Inc. 10-K

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are subject to financial market risks, including valuation risk, interest rate risk and currency risk. Valuation Risk We have invested, and plan to continue to invest, in illiquid debt and equity securities of private companies. These investments will generally not have a readily available market price, and we will value these investments at fair value as determined in good faith by our Board in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material. See Note 2. Summary of Significant Account Policies to our consolidated financial statements for more details on estimates and judgments made by us in connection with the valuation of our investments. Interest Rate Risk Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund a portion of our investments with borrowings and our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. As of December 31, 2020, 98.4% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The SPV Asset Facility and Corporate Revolving Facility also bear interest at variable rates. 63 Assuming that our Consolidated Statements of Assets and Liabilities as of December 31, 2020 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments): ($ in millions) Basis Point Change Interest Income Interest Expense Increase (decrease) in net assets resulting from operations Up 300 basis points $ 27.3 $ 12.3 $ 15.0 Up 200 basis points 18.2 8.2 10.0 Up 100 basis points 9.1 4.1 5.0 Down 25 basis points (0.4 ) (1.0 ) 0.6 Down 100 basis points (0.4 ) (1.0 ) 0.6 Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above. We may in the future hedge against interest rate fluctuations by using hedging instruments such as interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio investments. Currency Risk From time to time, we may make investments that are denominated in a foreign currency. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates. To the extent the loan or investment is based on a floating rate, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate. As of December 31, 2020, we had £9.4 million, €16.1 million and CAD $12.6 million notional exposure to foreign currency forward contracts related to investments totaling £9.7 million, €16.7 million and CAD $13.1 million of par value. 64 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA CRESCENT CAPITAL BDC, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm 66 Consolidated Statements of Assets and Liabilities as of December 31, 2020 and December 31, 2019 67 Consolidated Statements of Operations for the years ended December 31, 2020, December 31, 2019, and December 31, 2018 68 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2020, December 31, 2019, and December 31, 2018 69 Consolidated Statements of Cash Flows for the years ended December 31, 2020, December 31, 2019, and December 31, 2018 72 Consolidated Schedules of Investments as of December 31, 2020 and December 31, 2019 74 Notes to Consolidated Financial Statements 101 65 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Crescent Capital BDC, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated statements of assets and liabilities of Crescent Capital BDC, Inc. (the Company), including the consolidated schedules of investments, as of December 31, 2020 and 2019, the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations, changes in its net assets, and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 2020 and 2019, by correspondence with the custodian, syndication agents and underlying investee companies, or by other appropriate auditing procedures where confirmation was not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2015. Los Angeles, California February 24, 2021 66 Crescent Capital BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of December 31, 2020 As of December 31, 2019 Assets Investments, at fair value Non-controlled non-affiliated (cost of $936,921 and $675,329, respectively) $ 940,066 $ 671,582 Non-controlled affiliated (cost of $34,203 and $19,766, respectively) 55,200 20,507 Controlled (cost of $40,000 and $34,000, respectively) 38,735 34,442 Cash and cash equivalents 1,896 4,576 Restricted cash and cash equivalents 12,953 8,851 Interest receivable 3,859 2,832 Deferred tax assets 630 421 Other assets 543 3,046 Unrealized appreciation on foreign currency forward contracts 264 758 Receivable for investments sold 6 160 Total assets $ 1,054,152 $ 747,175 Liabilities Debt (net of deferred financing costs of $4,600 and $3,431, respectively) $ 471,932 $ 322,010 Distributions payable 11,549 8,554 Interest and other debt financing costs payable 3,923 3,545 Accrued expenses and other liabilities 2,563 3,788 Management fees payable 1,867 1,343 Deferred tax liabilities 1,324 879 Unrealized depreciation on foreign currency forward contracts 896 65 Directors’ fees payable 98 74 Total liabilities $ 494,152 $ 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 594,658 414,293 Accumulated earnings (loss) (34,686 ) (7,397 ) Total Net Assets $ 560,000 $ 406,917 Total Liabilities and Net Assets $ 1,054,152 $ 747,175 Net asset value per share $ 19.88 $ 19.50 See accompanying notes 67 Crescent Capital BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Investment Income: From non-controlled non-affiliated investments: Interest income $ 66,078 $ 45,237 $ 29,705 Paid-in-kind interest 2,169 560 454 Dividend income 2,730 2,361 591 Other income 1,060 807 641 From non-controlled affiliated investments: Interest income 1,420 1,902 1,904 Paid-in-kind interest 1,456 — — Dividend income — 310 — From controlled investments: Dividend income 2,200 2,300 — Total investment income 77,113 53,477 33,295 Expenses: Interest and other debt financing costs 15,485 13,362 8,450 Management fees 11,438 9,198 5,987 Incentive fees 8,639 4,752 2,742 Professional fees 1,460 957 760 Directors’ fees 437 303 290 Organization expenses — 136 154 Other general and administrative expenses 2,544 2,201 1,851 Total expenses 40,003 30,909 20,234 Management fee waiver (4,672 ) (4,502 ) (2,602 ) Incentive fee waiver (8,639 ) (4,752 ) (2,187 ) Net expenses 26,692 21,655 15,445 Net investment income before taxes 50,421 31,822 17,850 Income and excise taxes 541 139 121 Net investment income 49,880 31,683 17,729 Net realized and unrealized gains (losses) on investments: Net realized gain (loss) on: Non-controlled non-affiliated investments (10,889 ) 824 (467 ) Non-controlled affiliated investments (4,314 ) (7,900 ) — Foreign currency transactions (83 ) (70 ) (79 ) Net change in unrealized appreciation (depreciation) on: Non-controlled non-affiliated investments and foreign currency translation 6,867 3,926 (9,702 ) Non-controlled affiliated investments 20,256 (80 ) 705 Controlled investments (1,707 ) 442 — Foreign currency forward contracts (1,324 ) 675 17 Net realized and unrealized gains (losses) on investments 8,806 (2,183 ) (9,526 ) Realized loss on asset acquisition (3,825 ) — — Net realized and unrealized gains (losses) on investments and asset acquisition 4,981 (2,183 ) (9,526 ) Benefit (provision) for taxes on realized gain on investments 46 (67 ) — Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments (235 ) (154 ) (88 ) Net increase (decrease) in net assets resulting from operations $ 54,672 $ 29,279 $ 8,115 Per Common Share Data: Net increase in net assets resulting from operations per share (basic and diluted): $ 1.98 $ 1.69 $ 0.76 Net investment income per share (basic and diluted): $ 1.80 $ 1.83 $ 1.65 Weighted average shares outstanding (basic and diluted): 27,681,757 17,344,640 10,719,485 See accompanying notes 68 Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Earnings (Loss) Total Net Assets 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 — — — 49,880 49,880 Net realized gain (loss) on investments and foreign currency transactions — — — (15,286 ) (15,286 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — 24,092 24,092 Realized loss on asset acquisition — — — (3,825 ) (3,825 ) Provision for taxes on realized gain on investment — — — 46 46 Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (235 ) (235 ) Stockholder distributions: Issuance of common stock 2,265,021 2 44,295 — 44,297 Issuance in connection with asset acquisition (Note 14) 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 — — — (46,216 ) (46,216 ) Total increase (decrease) for the year ended December 31, 2020 7,305,046 7 144,620 8,456 153,083 Tax reclassification of stockholders’ equity in accordance with GAAP — — 35,745 (35,745 ) — Balance at December 31, 2020 28,167,360 $ 28 $ 594,658 $ (34,686 ) $ 560,000 Distributions declared per share $ 1.64 See accompanying notes 69 Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Earnings (Loss) Total Net Assets 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 — — — 31,683 31,683 Net realized gain (loss) on investments and foreign currency transactions — — — (7,146 ) (7,146 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — 4,963 4,963 Provision for taxes on realized gain on investment — — — (67 ) (67 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (154 ) (154 ) Stockholder distributions: Issuance of common stock 7,427,056 7 145,993 — 146,000 Issuance of common shares pursuant to dividend reinvestment plan 76,969 1 1,508 — 1,509 Equity offering costs — — (191 ) — (191 ) Distributions to stockholders — — — (29,259 ) (29,259 ) Total increase (decrease) for the year ended December 31, 2019 7,504,025 8 147,310 20 147,338 Tax reclassification of stockholders’ equity in accordance with GAAP — — 959 (959 ) — Balance at December 31, 2019 20,862,314 $ 21 $ 414,293 $ (7,397 ) $ 406,917 Distributions declared per share $ 1.64 See accompanying notes 70 Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Earnings (Loss) Total Net Assets Balance at December 31, 2017 8,597,116 $ 9 $ 170,756 $ 2,035 $ 172,800 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 17,729 17,729 Net realized gain (loss) on investments and foreign currency transactions — — — (546 ) (546 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — (8,980 ) (8,980 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (88 ) (88 ) Stockholder distributions: Issuance of common stock 4,731,259 4 94,996 — 95,000 Issuance of common shares pursuant to dividend reinvestment plan 29,914 — 600 — 600 Equity offering costs — — (216 ) — (216 ) Distributions to stockholders — — — (16,720 ) (16,720 ) Total increase (decrease) for the year ended December 31, 2018 4,761,173 4 95,380 (8,605 ) 86,779 Tax reclassification of stockholders’ equity in accordance with GAAP — — (112 ) 112 — Balance at December 31, 2018 13,358,289 $ 13 $ 266,024 $ (6,458 ) $ 259,579 Distributions declared per share $ 1.47 See accompanying notes 71 Crescent Capital BDC, Inc. Consolidated Statements of Cash Flows (in thousands, except share and per share data) For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 54,672 $ 29,279 $ 8,115 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities: Purchases of investments (352,392 ) (378,342 ) (291,155 ) Paid-in-kind interest income (3,625 ) (560 ) (454 ) Proceeds from sales of investments and principal repayments 258,979 145,828 109,697 Net realized (gain) loss on investments and foreign currency transactions 15,786 7,676 467 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 (25,416 ) (4,288 ) 8,997 Net change in unrealized (appreciation) depreciation on foreign currency forward contracts 1,324 (675 ) (17 ) Amortization of premium and accretion of discount, net (5,109 ) (3,016 ) (2,020 ) Amortization of deferred financing costs 1,329 1,040 761 Change in operating assets and liabilities: (Increase) decrease in receivable for investments sold 549 (123 ) (26 ) (Increase) decrease in interest receivable (25 ) (1,498 ) (1 ) (Increase) decrease in deferred tax asset (209 ) (121 ) — (Increase) decrease in other assets 2,480 (3,026 ) 54 Increase (decrease) in payable for investments purchased — (300 ) 300 Increase (decrease) in management fees payable 524 380 228 Increase (decrease) in incentive fees payable — — (504 ) Increase (decrease) in directors’ fees payable 24 12 5 Increase (decrease) in interest and other debt financing costs payable (456 ) 1,695 832 Increase (decrease) in deferred tax liability 445 275 88 Increase (decrease) in accrued expenses and other liabilities (1,620 ) 2,778 79 Net cash provided by (used for) operating activities (61,799 ) (202,986 ) (164,554 ) Cash flows from financing activities: Issuance of common stock 44,297 146,000 95,000 Repurchase of common stock (2,208 ) — — Deferred financing and debt issuance costs paid (2,498 ) (2,776 ) (1,600 ) Distributions paid (42,632 ) (24,540 ) (13,484 ) Equity offering costs — (191 ) (216 ) Borrowings on debt 352,342 308,250 223,300 Repayments on debt (302,227 ) (220,746 ) (137,300 ) Issuance of unsecured debt 50,000 — — Repayments on InterNotes ® (33,853 ) — — Net cash provided by (used for) financing activities 63,221 205,997 165,700 Effect of exchange rate changes on cash denominated in foreign currency — 47 (48 ) Net increase (decrease) in cash, cash equivalents, restricted cash and foreign currency 1,422 3,058 1,098 Cash, cash equivalents, restricted cash and foreign currency, beginning of period 13,427 10,369 9,271 Cash, cash equivalents, restricted cash and foreign currency, end of period (1) $ 14,849 $ 13,427 $ 10,369 Supplemental and non-cash financing activities: Cash paid during the period for interest $ 14,489 $ 10,626 $ 6,858 Issuance of common stock pursuant to dividend reinvestment plan $ 589 $ 1,509 $ 600 Accrued but unpaid equity offering costs $ — $ — $ 79 Accrued but unpaid distributions $ 11,549 $ 8,554 $ 5,343 Issuance of shares in connection with asset acquisition (Note 14) (2) $ 101,949 $ — $ — See accompanying notes 72 (1) As of December 31, 2020, the balance included cash and cash equivalents of $1,764, cash denominated in foreign currency of $132 and restricted cash of $12,953, respectively. As of December 31, 2019, the balance includes cash and cash equivalents of $3,867, cash denominated in foreign currency of $709, and restricted cash of $8,851, respectively. As of December 31, 2018, the balance includes cash and cash equivalents of $3,667, cash denominated in foreign currency of $559 and restricted cash of $6,143, 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 14), the Company acquired net assets of $114,431 which included $195,682 of investments, $3,409 cash and cash equivalents and $1,398 of other assets, net of $86,058 of assumed liabilities, for the total cash and stock consideration of $118,256, inclusive of $7,250 of asset acquisition costs. See accompanying notes 73 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 ) — % $ (10 ) Auto-Vehicle Parts, LLC (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (7) 5.50 % 01/2023 4,566 4,535 0.8 4,488 Continental Battery Company (3) Senior Secured First Lien Delayed Draw Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2022 6,578 6,522 1.2 6,578 Continental Battery Company (3) (5) Senior Secured First Lien Delayed Draw Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2022 3,465 3,444 0.6 3,465 Continental Battery Company (3) (5) (6) Senior Secured First Lien Revolver L + 675 (100 Floor) (7) 7.75 % 12/2022 283 278 0.1 283 Continental Battery Company (3) Senior Secured First Lien Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2022 3,933 3,902 0.7 3,933 Empire Auto Parts, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 09/2024 — (5 ) — (8 ) Empire Auto Parts, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,370 2,334 0.4 2,324 Empire Auto Parts, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,444 2,411 0.4 2,396 23,639 23,417 4.2 23,449 Capital Goods Envocore Holding, LLC (3) Senior Secured First Lien Term Loan L + 900 (200 Floor) (including 425 PIK) (8) 11.00 % 06/2022 18,541 15,834 2.6 14,335 Potter Electric Signal Company (3) (4) (6) (9) Senior Secured First Lien Delayed Draw Term Loan 12/2024 — (16 ) — (8 ) Potter Electric Signal Company (3) (4) (5) (6) Senior Secured First Lien Revolver 12/2022 — (4 ) — (4 ) Potter Electric Signal Company (3) Senior Secured First Lien Term Loan L + 425 (100 Floor) (8) 5.25 % 12/2025 2,480 2,461 0.4 2,461 Potter Electric Signal Company (3) Senior Secured First Lien Term Loan L + 425 (100 Floor) (8) 5.25 % 12/2024 471 468 0.1 467 21,492 18,743 3.1 17,251 Commercial & Professional Services ASP MCS Acquisition Corp. (3) (10) Senior Secured Second Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 295 273 0.1 293 Battery Solutions, Inc. (3) (10) Unsecured Debt 1200 + 200 PIK (11) 14.00 % 11/2021 1,263 1,248 0.2 1,192 BFC Solmetex LLC & Bonded Filter Co. LLC (3) (5) Unitranche First Lien Revolver L + 850 (100 Floor) (8) 9.50 % 09/2023 750 742 0.1 750 BFC Solmetex LLC & Bonded Filter Co. LLC (3) (5) Unitranche First Lien Revolver L + 850 (100 Floor) (8) 9.50 % 09/2023 300 296 0.1 300 BFC Solmetex LLC & Bonded Filter Co. LLC (3) Unitranche First Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 09/2023 5,920 5,848 1.0 5,920 BFC Solmetex LLC & Bonded Filter Co. LLC (3) Unitranche First Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 09/2023 618 610 0.1 618 See accompanying notes 74 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 CHA Holdings, Inc. (3) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 $ 1,013 $ 1,010 0.2 % $ 987 CHA Holdings, Inc. (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 4,805 4,789 0.8 4,683 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 + 575 (100 Floor) (8) 6.75 % 07/2026 4,339 4,258 0.8 4,339 Digital Room Holdings, Inc. (3) Senior Secured First Lien Term Loan L + 500 (12) 5.27 % 05/2026 6,895 6,602 1.2 6,533 GH Holding Company (3) Senior Secured First Lien Term Loan L + 450 (7) 4.65 % 02/2023 1,459 1,455 0.2 1,412 GI Revelation Acquisition, LLC (3) Senior Secured First Lien Term Loan L + 500 (7) 5.15 % 04/2025 7,321 7,296 1.3 7,049 Hepaco, LLC (3) (6) (9) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (7) 6.00 % 08/2024 4,156 4,130 0.7 3,999 Hepaco, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 500 (100 Floor) (7) 6.00 % 08/2024 825 824 0.1 791 Hepaco, LLC (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 08/2024 5,098 5,067 0.9 4,911 Hercules Borrower LLC (3) (4) (5) (6) Unitranche First Lien Revolver 12/2026 — (55 ) — (55 ) Hercules Borrower LLC (3) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 12/2026 19,125 18,650 3.3 18,647 Hsid Acquisition, LLC (3) (9) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (8) 6.00 % 01/2026 2,893 2,844 0.5 2,893 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 3,866 3,799 0.7 3,866 Impact Group, LLC (3) Senior Secured First Lien Term Loan L + 737 (100 Floor) (7) 8.37 % 06/2023 7,040 5,455 1.2 6,585 Impact Sales, LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 737 (100 Floor) (7) 8.37 % 06/2023 6,645 5,149 1.1 6,216 Institutional Shareholder Services, Inc. (3) Senior Secured First Lien Term Loan L + 450 (8) 4.75 % 03/2026 2,948 2,909 0.5 2,936 Institutional Shareholder Services, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (8) 8.75 % 03/2027 2,000 1,928 0.3 2,000 ISS Compressors Industries, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 02/2026 — (7 ) — (27 ) ISS Compressors Industries, Inc. (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 9,098 9,019 1.6 8,807 Jordan Healthcare, Inc. (3) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 07/2022 691 688 0.1 691 Jordan Healthcare, Inc. (3) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 07/2022 450 449 0.1 450 Jordan Healthcare, Inc. (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 07/2022 3,980 3,966 0.7 3,980 MHS Acquisition Holdings, LLC (3) Senior Secured Second Lien Delayed Draw Term Loan L + 875 (100 Floor) (8) 9.75 % 03/2025 467 461 0.1 455 MHS Acquisition Holdings, LLC (3) Senior Secured Second Lien Term Loan L + 875 (100 Floor) (8) 9.75 % 03/2025 8,102 7,956 1.4 7,900 See accompanying notes 75 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 MHS Acquisition Holdings, LLC (3) Unsecured Debt 1350 PIK (11) 13.50 % 03/2026 $ 272 $ 270 — % $ 264 MHS Acquisition Holdings, LLC (3) Unsecured Debt 1350 PIK (11) 13.50 % 03/2026 817 810 0.1 792 Pinstripe Holdings, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 01/2025 9,825 9,618 1.7 9,807 Pye-Barker Fire & Safety, LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 11/2025 3,715 3,623 0.7 3,715 Pye-Barker Fire & Safety, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 11/2025 10,024 9,790 1.8 10,024 Receivable Solutions, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2024 — (4 ) — (3 ) Receivable Solutions, Inc. (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 10/2024 2,070 2,042 0.4 2,047 SavATree, LLC (3) (6) (9) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (8) 6.00 % 06/2022 772 766 0.1 772 SavATree, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 06/2022 — (3 ) — — SavATree, LLC (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 06/2022 3,910 3,887 0.7 3,910 Service Logic Acquisition, Inc (3) (4) (6) (9) Senior Secured Second Lien Delayed Draw Term Loan 10/2028 — (71 ) — — Service Logic Acquisition, Inc (3) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 10/2028 8,755 8,496 1.6 8,755 Spear Education (3) (4) (6) (9) Senior Secured First Lien Delayed Draw Term Loan 02/2025 — (26 ) — (81 ) Spear Education (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2025 6,823 6,765 1.2 6,646 TecoStar Holdings, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 11/2024 5,000 4,925 0.9 5,000 UP Acquisition Corp. (3) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 1,189 1,170 0.2 1,163 UP Acquisition Corp. (3) (5) (6) Unitranche First Lien Revolver L + 625 (100 Floor) (7) 7.25 % 05/2024 391 374 0.1 364 UP Acquisition Corp. (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 4,334 4,272 0.8 4,242 Xcentric Mold and Engineering Acquisition Company, LLC (3) Senior Secured First Lien Revolver L + 700 (100 Floor) (including 100 PIK) (8) 8.00 % 01/2022 710 707 0.1 614 Xcentric Mold and Engineering Acquisition Company, LLC (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (including 100 PIK) (8) 8.00 % 01/2022 4,416 4,395 0.7 3,819 175,385 169,440 30.5 170,971 Consumer Durables & Apparel EiKo Global, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 06/2023 — (8 ) — — EiKo Global, LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 06/2023 3,223 3,188 0.6 3,223 3,223 3,180 0.6 3,223 See accompanying notes 76 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Consumer Services BJH Holdings III Corp. (3) Unitranche First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 08/2025 $ 13,355 $ 13,194 2.3 % $ 12,921 Cambium Learning Group, Inc. (3) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 12/2026 5,000 4,865 0.9 4,800 Colibri Group LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 05/2025 1,337 1,312 0.2 1,350 Colibri Group LLC (3) (4) (5) (6) Unitranche First Lien Revolver 05/2025 — (18 ) — 10 Colibri Group LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 05/2025 8,126 7,970 1.5 8,208 Everlast Parent Inc. (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 10/2026 — (41 ) — — Everlast Parent Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 10/2026 — (39 ) — — Everlast Parent Inc. (3) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 10/2026 14,028 13,686 2.5 14,028 HGH Purchaser, Inc. (3) (6) (9) Unitranche First Lien Delayed Draw Term Loan L + 675 (100 Floor) (8) 7.75 % 11/2025 2,815 2,725 0.5 2,815 HGH Purchaser, Inc. (3) (5) (6) Unitranche First Lien Revolver L + 675 (100 Floor) (8) 7.75 % 11/2025 101 81 — 101 HGH Purchaser, Inc. (3) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 11/2025 8,027 7,859 1.4 8,027 JLL XDD, Inc. (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (13) 7.00 % 12/2023 5,970 5,824 1.1 6,030 JLL XDD, Inc. (3) Senior Secured First Lien Term Loan L + 550 (100 Floor) (12) 6.50 % 12/2023 2,113 2,076 0.4 2,105 Learn-It Systems, LLC (3) (6) (14) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 03/2025 1,140 1,079 0.2 1,111 Learn-It Systems, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 03/2025 — (14 ) — (7 ) Learn-It Systems, LLC (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 03/2025 4,337 4,236 0.8 4,288 Southern HVAC Corporation (3) (4) (6) (14) Unitranche First Lien Delayed Draw Term Loan 10/2025 — (24 ) — — Southern HVAC Corporation (3) (4) (5) (6) Unitranche First Lien Revolver 10/2025 — (19 ) — — Southern HVAC Corporation (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 10/2025 5,550 5,442 1.0 5,550 Teaching Strategies LLC (3) (4) (5) (6) Unitranche First Lien Revolver 05/2024 — (9 ) — — Teaching Strategies LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 05/2024 9,141 8,999 1.6 9,141 United Language Group, Inc. (3) (5) Senior Secured First Lien Revolver L + 675 (100 Floor) (7) 7.75 % 12/2021 400 398 0.1 381 United Language Group, Inc. (3) Senior Secured First Lien Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2021 4,641 4,616 0.8 4,419 Vistage Worldwide, Inc. Senior Secured First Lien Term Loan L + 400 (100 Floor) (8) 5.00 % 02/2025 6,134 6,143 1.1 6,092 WeddingWire, Inc. (3) Senior Secured Second Lien Term Loan L + 825 (8) 8.46 % 12/2026 5,000 4,955 0.8 4,604 See accompanying notes 77 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Wrench Group LLC (3) Senior Secured Second Lien Term Loan L + 788 (8) 8.13 % 04/2027 $ 2,500 $ 2,436 0.4 % $ 2,492 99,715 97,732 17.6 98,466 Diversified Financials GGC Aperio Holdings, L.P. (3) Unitranche First Lien Term Loan L + 500 (8) 5.15 % 10/2024 8,405 8,393 1.5 8,410 Goldentree Loan Management US CLO 2, Ltd. (3) (15) CLO, Series 2017-2A, Class E L + 470 4.92 % 11/2030 2,000 1,902 0.3 1,829 10,405 10,295 1.8 10,239 Energy BJ Services, LLC (3) (16) (17) Unitranche First Lien - Last Out Term Loan 01/2023 8,075 8,014 1.1 6,463 BJ Services, LLC (3) Unitranche First Lien Term Loan L + 700 (150 Floor) (8) 8.50 % 01/2023 2,668 2,653 0.5 2,668 Black Diamond Oilfield Rentals, LLC (3) Senior Secured First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 09/2021 10,386 10,332 1.7 9,645 21,129 20,999 3.3 18,776 Food & Staples Retailing Isagenix International, LLC Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 06/2025 6,068 6,046 0.6 3,408 PetIQ, LLC (3) (15) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 07/2025 14,812 14,703 2.6 14,812 20,880 20,749 3.2 18,220 Food, Beverage & Tobacco Mann Lake Ltd. (3) (5) (6) Senior Secured First Lien Revolver L + 750 (100 Floor) (8) 8.50 % 10/2024 840 829 0.1 840 Mann Lake Ltd. (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (8) 8.50 % 10/2024 3,826 3,773 0.7 3,826 4,666 4,602 0.8 4,666 Health Care Equipment & Services Abode Healthcare, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 08/2025 — (18 ) — (11 ) Abode Healthcare, Inc. (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 08/2025 4,740 4,663 0.8 4,693 Aegis Sciences Corporation Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 05/2025 7,328 6,936 1.2 6,442 Ameda, Inc. (3) (5) (6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 09/2022 188 186 — 163 Ameda, Inc. (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 09/2022 2,201 2,185 0.4 2,022 Anne Arundel Dermatology Management, LLC (3) (6) (9) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 491 460 0.1 491 Anne Arundel Dermatology Management, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2025 — (11 ) — — Anne Arundel Dermatology Management, LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 2,450 2,403 0.4 2,450 Avalign Technologies, Inc. (3) Senior Secured First Lien Term Loan L + 450 (8) 4.73 % 12/2025 16,837 16,709 3.0 16,753 BAART Programs, Inc. (3) Senior Secured Second Lien Delayed Draw Term Loan L + 800 (100 Floor) (8) 9.00 % 03/2025 1,000 957 0.2 997 BAART Programs, Inc. (3) Senior Secured Second Lien Term Loan L + 825 (100 Floor) (18) 9.25 % 03/2025 7,000 6,700 1.3 6,977 See accompanying notes 78 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Centria Subsidiary Holdings, LLC (3) (5) (6) Unitranche First Lien Revolver P + 500 (19) 8.25 % 12/2025 $ 158 $ 109 — % $ 158 Centria Subsidiary Holdings, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 12/2025 11,753 11,452 2.1 11,753 CRA MSO, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 12/2023 80 78 — 72 CRA MSO, LLC (3) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2023 1,225 1,210 0.2 1,173 ExamWorks Group, Inc. (3) Senior Secured Second Lien Term Loan L + 725 (100 Floor) (8) 8.25 % 07/2024 5,735 5,642 1.0 5,735 FH MD Buyer, Inc (3) Senior Secured First Lien Term Loan L + 575 (100 Floor) (7) 6.75 % 10/2026 17,264 16,845 3.0 16,832 GrapeTree Medical Staffing, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2022 — (3 ) — (3 ) GrapeTree Medical Staffing, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,645 1,633 0.3 1,634 GrapeTree Medical Staffing, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,383 1,367 0.2 1,374 HCAT Acquisition, Inc. (3) Unitranche First Lien Delayed Draw Term Loan L + 925 (100 Floor) (8) 10.25 % 11/2022 2,307 2,195 0.4 2,104 HCAT Acquisition, Inc. (3) (20) Unitranche First Lien Revolver L + 925 (100 Floor) (8) 10.25 % 11/2022 3,837 3,649 0.6 3,499 HCAT Acquisition, Inc. (3) Unitranche First Lien Term Loan L + 925 (100 Floor) (8) 10.25 % 11/2022 14,666 13,948 2.4 13,375 HCOS Group Intermediate III LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 09/2026 — (17 ) — (13 ) HCOS Group Intermediate III LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 09/2026 11,571 11,348 2.0 11,397 Hospice Care Buyer, Inc. (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 12/2026 — (40 ) — — Hospice Care Buyer, Inc. (3) (5) (6) Unitranche First Lien Revolver L + 650 (100 Floor) (8) 7.50 % 12/2026 231 183 — 231 Hospice Care Buyer, Inc. (3) (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (7) 7.50 % 12/2026 12,743 12,339 2.3 12,743 IvyRehab Intermediate II, LLC (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 12/2024 — (28 ) — (14 ) IvyRehab Intermediate II, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 12/2024 — (10 ) — (5 ) IvyRehab Intermediate II, LLC (3) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 12/2024 8,030 7,872 1.4 7,951 Lightspeed Buyer, Inc. (3) (6) (9) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (7) 6.50 % 02/2026 1,146 1,120 0.2 1,114 Lightspeed Buyer, Inc. (3) (5) (6) Unitranche First Lien Revolver L + 550 (100 Floor) (8) 6.50 % 02/2026 350 332 0.1 331 Lightspeed Buyer, Inc. (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 02/2026 9,925 9,752 1.7 9,745 MDVIP, Inc. Senior Secured First Lien Term Loan L + 425 (100 Floor) (7) 5.25 % 11/2024 9,561 9,561 1.7 9,534 Medsurant Holdings, LLC (3) Senior Secured Second Lien Term Loan 1400 (11) 14.00 % 03/2022 7,945 7,907 1.4 7,859 See accompanying notes 79 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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) Senior Secured Second Lien Delayed Draw Term Loan L + 775 (7) 7.93 % 11/2026 $ 1,667 $ 1,626 0.3 % $ 1,641 NMN Holdings III Corp. (3) Senior Secured Second Lien Term Loan L + 775 (7) 7.93 % 11/2026 7,222 7,049 1.3 7,110 NMSC Holdings, Inc. (3) Senior Secured Second Lien Term Loan L + 1000 (100 Floor) (8) 11.00 % 10/2023 4,307 4,230 0.8 4,194 Omni Ophthalmic Management Consultants, LLC (3) (4) (6) (9) Senior Secured First Lien Delayed Draw Term Loan 03/2021 — (2 ) — (39 ) Omni Ophthalmic Management Consultants, LLC (3) (5) Senior Secured First Lien Revolver L + 750 (100 Floor) (7) 8.50 % 05/2023 850 843 0.1 797 Omni Ophthalmic Management Consultants, LLC (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (7) 8.50 % 05/2023 6,878 6,820 1.2 6,452 Pinnacle Treatment Centers, Inc. (3) (6) (9) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2022 684 677 0.1 684 Pinnacle Treatment Centers, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 12/2022 — (5 ) — — Pinnacle Treatment Centers, Inc. (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2022 8,052 7,996 1.4 8,052 Professional Physical Therapy (3) Senior Secured First Lien Term Loan L + 850 (100 Floor) (including 250 PIK) (8) 9.50 % 12/2022 8,975 8,755 1.2 6,855 PT Network, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 11/2023 — (1 ) — (10 ) PT Network, LLC (3) Senior Secured First Lien Term Loan L + 750 (100 Floor) (including 200 PIK) (8) 8.50 % 11/2023 4,789 4,782 0.8 4,672 Safco Dental Supply, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 06/2025 — (8 ) — (1 ) Safco Dental Supply, LLC (3) Unitranche First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 06/2025 4,043 3,988 0.7 4,034 Seniorlink Incorporated (3) (4) (5) (6) Unitranche First Lien Revolver 07/2026 — (29 ) — — Seniorlink Incorporated (3) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 07/2026 6,818 6,626 1.2 6,818 Smile Brands, Inc. (3) Senior Secured First Lien Delayed Draw Term Loan L + 517 (21 Floor) (8) 5.49 % 10/2024 619 615 0.1 604 Smile Brands, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 09/2024 — (2 ) — (7 ) Smile Brands, Inc. (3) Senior Secured First Lien Term Loan L + 517 (21 Floor) (8) 5.49 % 10/2024 2,058 2,044 0.4 2,007 Smile Doctors LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2022 — — — (6 ) Smile Doctors LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2022 16,280 16,261 2.9 16,196 Unifeye Vision Partners (3) (6) (14) Senior Secured First Lien Delayed Draw Term Loan P + 400 (19) 7.25 % 09/2025 813 782 0.1 707 Unifeye Vision Partners (3) (5) (6) Senior Secured First Lien Revolver P + 400 (19) 7.25 % 09/2025 453 427 0.1 394 Unifeye Vision Partners (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 09/2025 5,346 5,259 0.9 5,159 Vital Care Buyer, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 10/2025 — (37 ) — (39 ) See accompanying notes 80 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Vital Care Buyer, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 $ 7,778 $ 7,646 1.4 % $ 7,642 Zest Acquisition Corp. Senior Secured First Lien Term Loan L + 350 (7) 3.66 % 03/2025 8,603 8,604 1.5 8,259 260,025 254,560 44.9 251,731 Household & Personal Products Tranzonic (3) (5) (6) Senior Secured First Lien Revolver P + 375 (100 Floor) (19) 7.00 % 03/2023 440 438 0.1 440 Tranzonic (3) Senior Secured First Lien Term Loan L + 450 (100 Floor) (7) 5.50 % 03/2023 3,813 3,793 0.7 3,813 4,253 4,231 0.8 4,253 Insurance Comet Acquisition, Inc. (3) Senior Secured Second Lien Term Loan L + 750 (8) 7.75 % 10/2026 3,563 3,556 0.6 3,231 Integrity Marketing Acquisition, LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 5,068 4,959 0.9 5,068 Integrity Marketing Acquisition, LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 3,064 2,997 0.5 3,064 Integrity Marketing Acquisition, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 08/2025 — (39 ) — — Integrity Marketing Acquisition, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 12,879 12,618 2.3 12,879 Integro Parent, Inc. (3) (15) Senior Secured First Lien Term Loan L + 575 (100 Floor) (7) 6.75 % 10/2022 473 470 0.1 473 Integro Parent, Inc. (3) (15) Senior Secured Second Lien Delayed Draw Term Loan L + 925 (100 Floor) (7) 10.25 % 10/2023 380 378 0.1 369 Integro Parent, Inc. (3) (15) Senior Secured Second Lien Term Loan L + 925 (100 Floor) (7) 10.25 % 10/2023 2,916 2,889 0.5 2,825 The Hilb Group, LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (7) 6.75 % 12/2026 1,019 996 0.2 1,016 The Hilb Group, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 12/2025 — (7 ) — (1 ) The Hilb Group, LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2026 3,603 3,524 0.6 3,594 THG Acquisition, LLC (3) (6) (9) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 12/2026 53 31 — 49 THG Acquisition, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 12/2025 — (4 ) — — THG Acquisition, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 12/2026 1,069 1,042 0.2 1,066 34,087 33,410 6.0 33,633 Materials Kestrel Parent, LLC (3) (4) (6) (20) Unitranche First Lien Revolver 11/2023 — (12 ) — — Kestrel Parent, LLC (3) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 11/2025 6,672 6,547 1.2 6,672 6,672 6,535 1.2 6,672 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 4,733 0.8 4,663 Pharmalogic Holdings Corp. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 12/2023 5,460 5,428 1.0 5,349 See accompanying notes 81 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Pharmalogic Holdings Corp. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 12/2023 $ 5,880 $ 5,845 1.0 % $ 5,760 Teal Acquisition Co., Inc (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 09/2026 — (24 ) — — Teal Acquisition Co., Inc (3) (5) (6) Unitranche First Lien Revolver L + 625 (100 Floor) (8) 7.25 % 09/2026 274 237 0.1 274 Teal Acquisition Co., Inc (3) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 09/2026 9,124 8,861 1.6 9,124 Trinity Partners, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 02/2025 — (4 ) — — Trinity Partners, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 02/2025 3,709 3,682 0.7 3,709 29,207 28,758 5.2 28,879 Retailing Palmetto Moon LLC, (3) Senior Secured First Lien Term Loan 1150 + 250 PIK (11) 14.00 % 10/2021 4,155 3,397 0.7 3,813 Slickdeals Holdings, LLC (3) (4) (6) (10) (20) Unitranche First Lien Revolver 06/2023 — (10 ) — — Slickdeals Holdings, LLC (3) (10) Unitranche First Lien Term Loan L + 625 (100 Floor) (12) 7.25 % 06/2024 14,528 14,223 2.6 14,528 18,683 17,610 3.3 18,341 Software & Services Affinitiv, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 08/2024 — (7 ) — — Affinitiv, Inc. (3) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 08/2024 6,435 6,349 1.2 6,435 Ansira Partners, Inc. (3) (16) Unitranche First Lien Delayed Draw Term Loan 12/2024 964 931 0.1 676 Ansira Partners, Inc. (3) (16) Unitranche First Lien Term Loan 12/2024 7,122 6,687 0.9 4,997 Avaap USA LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 725 (100 Floor) (7) 8.25 % 03/2023 344 340 0.1 336 Avaap USA LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 03/2023 — (7 ) — (15 ) Avaap USA LLC (3) Senior Secured First Lien Term Loan L + 725 (100 Floor) (7) 8.25 % 03/2023 3,769 3,727 0.7 3,684 Benesys Inc. (3) Senior Secured First Lien Term Loan L + 475 (100 Floor) (7) 5.75 % 10/2024 300 294 0.1 295 Benesys, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 10/2024 — (1 ) — (3 ) Benesys, Inc. (3) Senior Secured First Lien Term Loan L + 475 (100 Floor) (7) 5.75 % 10/2024 1,414 1,400 0.3 1,388 C-4 Analytics, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 08/2023 — (5 ) — — C-4 Analytics, LLC (3) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 08/2023 9,916 9,832 1.8 9,916 CAT Buyer, LLC (3) (4) (5) (6) Unitranche First Lien Revolver 04/2024 — (8 ) — (17 ) CAT Buyer, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 04/2024 6,239 6,154 1.1 6,041 Claritas, LLC (3) (5) (6) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 12/2023 113 111 — 113 Claritas, LLC (3) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 12/2023 1,093 1,085 0.2 1,093 See accompanying notes 82 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 List Partners, Inc. (3) (4) (5) (6) Senior Secured First Lien Revolver 01/2023 $ — $ (4 ) — % $ (6 ) List Partners, Inc. (3) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 01/2023 4,495 4,455 0.8 4,440 MRI Software LLC (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (22 ) — (3 ) MRI Software LLC (3) (4) (5) (6) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (4 ) — (1 ) MRI Software LLC (3) (4) (5) (6) Unitranche First Lien Revolver 02/2026 — (16 ) — (32 ) MRI Software LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 149 145 — 149 MRI Software LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 18,079 17,841 3.2 18,034 Ontario Systems, LLC (3) (4) (6) (9) Unitranche First Lien Delayed Draw Term Loan 08/2025 — (4 ) — (38 ) Ontario Systems, LLC (3) (5) (6) Unitranche First Lien Revolver L + 550 (100 Floor) (8) 6.50 % 08/2025 200 196 — 183 Ontario Systems, LLC (3) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 08/2025 3,209 3,183 0.6 3,098 Park Place Technologies, LLC (3) Unsecured Debt 1250 PIK (11) 12.50 % 05/2029 784 784 0.1 784 Perforce Software, Inc. (3) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 07/2027 5,000 4,977 0.9 5,000 Prism Bidco, Inc. (3) (4) (5) (6) Unitranche First Lien Revolver 06/2026 — (23 ) — (13 ) Prism Bidco, Inc. (3) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 06/2026 7,463 7,254 1.3 7,351 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 9,645 9,472 1.7 9,645 Ruffalo Noel Levitz, LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 05/2022 240 238 — 237 Ruffalo Noel Levitz, LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 05/2022 2,505 2,489 0.4 2,480 Saturn Borrower Inc (3) (4) (5) (6) Unitranche First Lien Revolver 09/2026 — (43 ) — — Saturn Borrower Inc (3) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 09/2026 20,524 19,929 3.7 20,524 Transportation Insight, LLC (3) (9) Senior Secured First Lien Delayed Draw Term Loan L + 450 (7) 4.65 % 12/2024 1,277 1,269 0.2 1,226 Transportation Insight, LLC (3) (4) (5) (6) Senior Secured First Lien Revolver 12/2024 — (5 ) — (30 ) Transportation Insight, LLC (3) Senior Secured First Lien Term Loan L + 450 (7) 4.65 % 12/2024 5,142 5,107 0.9 4,936 Trident Technologies, LLC (3) Senior Secured First Lien Term Loan L + 600 (150 Floor) (8) 7.50 % 12/2025 14,850 14,658 2.6 14,726 Winxnet Holdings LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 641 632 0.1 636 Winxnet Holdings LLC (3) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 06/2023 1,050 1,029 0.2 1,043 Winxnet Holdings LLC (3) (5) (6) Unitranche First Lien Revolver L + 600 (100 Floor) (7) 7.00 % 06/2023 240 236 — 237 See accompanying notes 83 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Winxnet Holdings LLC (3) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 $ 1,950 $ 1,929 0.3 % $ 1,936 135,152 132,580 23.5 131,481 Technology Hardware & Equipment Onvoy, LLC (3) Senior Secured Second Lien Term Loan L + 1050 (100 Floor) (7) 11.50 % 02/2025 2,635 2,556 0.5 2,585 Transportation Pilot Air Freight, LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 1,196 1,196 0.2 1,184 Pilot Air Freight, LLC (3) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 771 769 0.1 764 Pilot Air Freight, LLC (3) (4) (6) (9) Senior Secured First Lien Revolver 07/2024 — — — (1 ) Pilot Air Freight, LLC (3) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 5,363 5,343 1.0 5,310 7,330 7,308 1.3 7,257 Total Debt Investments United States $ 878,578 $ 856,705 151.8 % $ 850,093 Equity Investments Capital Goods Alion Science and Technology Corporation (3) Common Stock 745,504 766 0.2 1,392 Envocore Holding, LLC (3) Preferred Stock 1,139,725 — — — 1,885,229 766 0.2 1,392 Commercial & Professional Services Allied Universal holdings, LLC (3) Common Stock, Class A 2,240,375 1,011 0.5 2,716 ASP MCS Acquisition Corp. (10) Common Stock 11,792 1,150 0.3 1,500 Battery Solutions, Inc. (3) (10) Preferred Stock, Class E 5,275,561 3,669 0.4 2,373 Battery Solutions, Inc. (3) (10) Preferred Stock, Class A 50,000 — — — Battery Solutions, Inc. (3) (10) Preferred Stock, Class F 3,333,333 — — — Hercules Borrower LLC (3) Common Stock 1,153,075 1,153 0.2 1,153 IGT Holding LLC (3) Preferred Stock 645,730 — — — IGT Holding LLC (3) Common Stock 1,000,000 — — — MHS Acquisition Holdings, LLC (3) Common Stock 10 10 — — MHS Acquisition Holdings, LLC (3) Preferred Stock 1,018 923 0.2 799 My Alarm Center, LLC (3) Common Stock 129,582 — — — My Alarm Center, LLC (3) Junior Preferred Stock 2,420 — — — My Alarm Center, LLC (3) Senior Preferred Stock 2,998 — — — PB Parent, LP (3) Common Stock 1,125,000 1,125 0.2 1,189 RSI Acquisition, LLC (3) Preferred Stock, Class A 137,000 137 — 196 Saber Parent Holdings (3) Common Stock 13,132 1,313 0.2 1,313 TecoStar Holdings, Inc. (3) Common Stock 500,000 500 0.2 1,024 15,621,026 10,991 2.2 12,263 Consumer Services Everlast Holding, Inc. (3) Common Stock 948 948 0.2 948 Green Wrench Acquisition, LLC (3) Common Stock 4,082 410 0.1 569 HGH Investment, LP (3) Common Stock, Class A 4,171 417 0.1 562 Legalshield (3) Common Stock 372 372 0.1 495 Southern Technical Institute, Inc. (3) (10) Common Stock, Class A1 6,000,000 — 1.3 6,987 Southern Technical Institute, Inc. (3) (10) Common Stock, Class A 3,164,063 — — 266 Wrench Group Holdings, LLC (3) Common Stock, Class A 1,143 115 — 160 9,174,779 2,262 1.8 9,987 Diversified Financials CBDC Senior Loan Fund LLC (15) (21) (22) Partnership Interest 40,000,000 40,000 6.9 38,735 GACP II LP (15) (22) (23) Partnership Interest 16,227,613 16,228 2.9 16,154 56,227,613 56,228 9.8 54,889 Health Care Equipment & Services ExamWorks Group, Inc. (3) Common Stock 7,500 750 0.3 1,586 Hospice Care Buyer, Inc. (3) Common Stock 11,265 1,127 0.2 1,127 See accompanying notes 84 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 MDVIP, Inc. (3) Common Stock 46,807 $ 648 0.2 % $ 1,169 NMN Holdings LP (3) Common Stock 11,111 1,111 0.3 1,454 PT Network, LLC (3) Common Stock, Class C 0.93 — — — SL Topco Holdings, Inc. (3) Common Stock 68,182 682 0.2 944 Spartan Healthcare Holdings, LLC (3) Common Stock 11,911 1,191 0.2 1,353 156,777 5,509 1.4 7,633 Insurance Integrity Marketing Acquisition, LLC (3) Common Stock 619,562 648 0.2 1,252 Integrity Marketing Acquisition, LLC (3) Preferred Stock 1,247 1,216 0.3 1,485 Integro Parent, Inc. (3) (15) Common Stock 4,468 454 0.1 784 625,277 2,318 0.6 3,521 Materials Kestrel Upperco, LLC (3) Common Stock, Class A 41,791 209 — 240 Media & Entertainment Conisus, LLC (3) (10) Common Stock 4,914,556 — 0.8 4,320 Conisus, LLC (3) (10) (24) Preferred Stock, Series B 1500 PIK 15.00 % 18,544,370 10,160 3.3 18,545 23,458,926 10,160 4.1 22,865 Pharmaceuticals, Biotechnology & Life Sciences Teal Parent Holdings, LP (3) Common Stock 4,562 456 0.1 456 Retailing Palmetto Moon, LLC (3) Common Stock 99 — — — Slickdeals Holdings, LLC (3) (10) Common Stock 61 990 0.3 1,482 Vivid Seats Ltd. (3) (10) Common Stock 608,108 608 0.1 801 Vivid Seats Ltd. (3) (10) Preferred Stock 1,891,892 1,892 0.5 2,913 2,500,160 3,490 0.9 5,196 Software & Services Curvature (3) (25) Residual Interest — 2,482 0.4 2,481 Saturn Topco LP (3) Common Stock 411,511 412 0.1 412 411,511 2,894 0.5 2,893 Technology Hardware & Equipment Onvoy, LLC (3) Common Stock, Class A 3,649 365 0.1 410 Onvoy, LLC (3) Common Stock, Class B 2,536 — — — 6,185 365 0.1 410 Transportation Xpress Global Systems, LLC (3) Common Stock 12,544 — — — Total Equity Investments United States 110,126,380 $ 95,648 21.7 % $ 121,745 Total United States $ 952,353 173.5 % $ 971,838 Canada Debt Investments Health Care Equipment & Services VetStrategy (3) (4) (6) (9) (11) Unitranche First Lien Delayed Draw Term Loan 07/2027 C$ 657 (35 ) — — VetStrategy (3) (15) Unitranche First Lien Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 9,292 6,738 1.3 7,294 VetStrategy (3) (6) (9) (15) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 1,399 973 0.2 1,010 VetStrategy (3) (15) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 1,729 1,259 0.2 1,357 13,077 8,935 1.7 9,661 Telecommunication Services Sandvine Corporation (3) (15) Senior Secured Second Lien Term Loan L + 800 (7) 8.15 % 11/2026 4,500 4,359 0.7 4,062 Total Debt Investments Canada C$ 17,577 $ 13,294 2.4 % $ 13,723 See accompanying notes 85 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 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 Equity Investments Health Care Equipment & Services VetStrategy (3) (15) Common Stock 750,000 $ 560 0.1 % $ 589 750,000 560 0.1 589 Total Equity Investments Canada 750,000 $ 560 0.1 % $ 589 Total Canada $ 13,854 2.5 % $ 14,312 United Kingdom Debt Investments Commercial & Professional Services Crusoe Bidco Limited (3) (6) (15) (27) Unitranche First Lien Delayed Draw Term Loan L + 625 (28) 6.27 % 12/2025 £ 303 398 0.1 415 Crusoe Bidco Limited (3) (15) Unitranche First Lien Term Loan L + 625 (28) 6.28 % 12/2025 6,068 7,431 1.5 8,294 Crusoe Bidco Limited (3) (6) (15) (27) Unitranche First Lien Delayed Draw Term Loan 12/2025 — — — — 6,371 7,829 1.6 8,709 Consumer Services Auction Technology Group (3) (15) Unitranche First Lien Term Loan L + 650 (29) 6.62 % 02/2027 £ 3,339 4,241 0.8 4,564 Auction Technology Group (3) (15) Unitranche First Lien Term Loan L + 650 (29) 6.84 % 02/2027 $ 10,687 10,398 1.9 10,687 14,026 14,639 2.7 15,251 Total Debt Investments United Kingdom 20,397 $ 22,468 4.3 % $ 23,960 Total United Kingdom $ 22,468 4.3 % $ 23,960 Netherlands Debt Investments Pharmaceuticals, Biotechnology & Life Sciences PharComp Parent B.V. (3) (15) (17) Unitranche First Lien - Last Out Term Loan E + 625 (30) (31) 6.25 % 02/2026 € 6,910 7,654 1.5 8,454 PharComp Parent B.V. (3) (6) (15) (27) Unitranche First Lien Term Loan E + 625 (30) (31) 6.25 % 02/2026 187 151 0.1 229 7,097 7,805 1.6 8,683 Total Debt Investments Netherlands € 7,097 $ 7,805 1.6 % $ 8,683 Total Netherlands $ 7,805 1.6 % $ 8,683 Belgium Debt Investments Commercial & Professional Services MIR Bidco SA (3) (15) Unitranche First Lien Term Loan E + 625 (31) (32) 6.25 % 04/2026 € 9,507 10,491 2.0 11,168 Miraclon Corporation (3) (15) Unitranche First Lien Term Loan L + 625 (12) 7.47 % 04/2026 $ 4,162 4,061 0.7 3,983 13,669 14,552 2.7 15,151 Total Debt Investments Belgium 13,669 $ 14,552 2.7 % $ 15,151 Equity Investments Commercial & Professional Services MIR Bidco SA (3) (15) Common Stock 921 1 — — MIR Bidco SA (3) (15) Preferred Stock 81,384 91 — 57 82,305 92 — 57 Total Equity Investments Belgium 82,305 $ 92 — % $ 57 Total Belgium $ 14,644 2.7 % $ 15,208 Total Investments $ 1,011,124 184.6 % $ 1,034,001 See accompanying notes 86 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2020 (in thousands, except share and per share data) * 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 December 31, 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 $560,000 as of December 31, 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 December 31, 2020 was 0.14%. 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 December 31, 2020 was 0.24%. For some of these loans, the interest rate is based on the last reset date. (9) Investment pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (10) 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”. (11) Fixed rate investment. (12) 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, 2020 was 0.26%. For some of these loans, the interest rate is based on the last reset date. (13) 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, 2020 was 0.19%. For some of these loans, the interest rate is based on the last reset date. (14) Investment pays 0.75% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (15) 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 13.30% as of December 31, 2020. (16) The investment is on non-accrual status as of December 31, 2020. (17) 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. (18) 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, 2020 was 0.34%. For some of these loans, the interest rate is based on the last reset date. (19) The interest rate on these loans is subject to the U.S. Prime rate, which as of December 31, 2020 was 3.25%. (20) Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (21) 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”. (22) 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. (23) Investment is not redeemable. (24) Income producing equity security. (25) Residual interest in Curvature (Beijing) Technology Limited. See accompanying notes 87 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2020 (in thousands, except share and per share data) (26) 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 December 31, 2020 was 0.50%. For some of these loans, the interest rate is based on the last reset date. (27) Investment pays 2.19% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (28) 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, 2020 was 0.03%. For some of these loans, the interest rate is based on the last reset date. (29) 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 December 31, 2020 was 0.03%. 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 EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of December 31, 2020 was (0.55)%. For some of these loans, the interest rate is based on the last reset date. (31) For EURIBOR rate investments where negative rates can be prevalent, a 0% floor is presumed. (32) 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 December 31, 2020 was (0.53)%. 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 (12 ) Wells Fargo Bank, N.A. USD 612 CAD 801 07/31/2025 (485 ) Wells Fargo Bank, N.A. USD 325 CAD 422 07/31/2025 (4 ) Wells Fargo Bank, N.A. USD 622 CAD 839 07/31/2025 (32 ) Wells Fargo Bank, N.A. USD 635 CAD 864 07/31/2025 (39 ) Wells Fargo Bank, N.A. USD 209 EUR 187 02/20/2024 (26 ) Wells Fargo Bank, N.A. USD 8,063 EUR 6,703 02/20/2024 183 Wells Fargo Bank, N.A. USD 11,682 EUR 9,222 04/10/2024 81 Wells Fargo Bank, N.A. USD 7,975 GBP 5,885 12/01/2023 (125 ) Wells Fargo Bank, N.A. USD 395 GBP 294 12/01/2023 (10 ) Wells Fargo Bank, N.A. USD 4,317 GBP 3,239 02/13/2025 (163 ) Total Foreign Currency Exchange Contracts (632 ) CAD Canadian Dollar EUR Euro GBP Great British Pound PIK Payment In-Kind USD United States Dollar See accompanying notes 88 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 89 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 90 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 91 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 92 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 93 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 94 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 95 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 96 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 97 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. See accompanying notes 98 CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments December 31, 2019 (in thousands, except share and per share data) ** Percentage is based on net assets of $406,917 as of December 31, 2019. † 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 99 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 $ 693 EUR Euro GBP Great British Pound PIK Payment In-Kind USD United States Dollar See accompanying notes 100 CRESCENT CAPITAL BDC, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share amounts) December 31, 2020 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 may 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 five directors, four of whom are independent. The Company has formed a wholly owned subsidiary that is structured as a tax blocker, to hold equity or equity-like investments in portfolio companies organized as limited liability companies or other forms of pass-through entities. This corporate subsidiary is not consolidated for income tax purposes and may incur income tax expense as a result of its 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 14. Alcentra Acquisition” for more information. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent (the “Sun Life Transaction”). Consummation of the Sun Life Transaction resulted in a change of control of Crescent. Basis of Presentation The Company is an investment company as defined in the accounting and reporting guidance under Accounting Standards Codification (“ASC”) Topic 946 — Financial Services — Investment Companies (“ASC Topic 946”). The accompanying consolidated financial statements of the Company and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for financial information and pursuant to the requirements for reporting on Form 10-K and Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company does not consolidate its equity interest in CBDC Senior Loan Fund, LLC (the “Senior Loan Fund”). 101 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. 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. 102 • The Adviser’s management and Crescent’s alternative investment valuation committee 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. 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 103 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. 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 December 31, 2020 and December 31, 2019, there were $4,600 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 December 31, 2020, the Company had two portfolio companies with three investment positions on non-accrual status, which represented 1.7% and 1.3% 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. 104 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 December 31, 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. 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 year ended December 31, 2020, the Company expensed an excise tax of $592, of which $421 remained payable. For the year ended December 31, 2019, the Company expensed an excise tax of $119, of which $110 remained payable. For the year ended December 31, 2018, the Company expensed an excise tax of $112, of which $112 remained payable. CBDC Universal Equity, Inc. is a taxable entity (“Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continues to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is 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 year ended December 31, 2020, the Company recognized a benefit/(provision) for taxes of $(235) on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiary. As of December 31, 2020, $630 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. As of December 31, 2020, $1,324, 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 subsidiary and other temporary book to tax differences of the corporate subsidiary. For the year ended December 31, 2019, the Company recognized a benefit/(provision) for taxes of $(154), on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiary. As of December 31, 2019, $421, 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. As of December 31, 2019, $879 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 subsidiary and other temporary book to tax differences of the corporate subsidiary. For the year ended December 31, 2018, the Company recognized a benefit/(provision) for taxes of $(88), on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiary. As of 105 December 31, 2018, $299, 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. As of December 31, 2018, $604 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 subsidiary and other temporary book to tax differences of the corporate subsidiary. For the years ended December 31, 2020 and 2019, the Company recognized a tax benefit (provision) of $46 and $(67) on realized gains on investments, respectively. For the year ended December 31, 2018 there was no realized gain on investments requiring a recognition of a tax provision. Dividends and Distributions to Stockholders 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. The SEC issued final rules that, among other things, amended the financial disclosure requirements of Regulation S-X for acquired and disposed businesses and the significance tests for a “significant subsidiary” as applicable to BDCs and amended certain forms used by BDCs. The amendments are intended to assist BDCs in making more meaningful determinations as to whether a subsidiary or an acquired or disposed entity is significant and improve the financial disclosure requirements applicable to acquisitions and dispositions of investment companies and BDCs. The Company early adopted the updated rules for the year ended December 31, 2020 which did not result in any new significant subsidiaries being identified. 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 years ended December 31, 2020, 2019 and 2018, the Company incurred administrative services expenses of $819, $657 and $652, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, of which $321 and $175, respectively, were payable at December 31, 2020 and 2019. 106 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 a 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 years ended December 31, 2020, 2019 and 2018, the Company incurred expenses of $1,199, $973 and $778, 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 $300 and $263, respectively, were payable at December 31, 2020 and 2019. Investment Advisory Agreement On June 2, 2015, the Company entered into a 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 resulting in the change of certain terms. Subsequently on December 17, 2020 in connection with the Sun Life Transaction, the Amended and Restated Investment Advisory Agreement was re-approved by the Company’s stockholders resulting in no substantive changes to the terms. Under the terms of the Amended and Restated Investment Advisory Agreement, the Adviser provides 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. 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 years ended December 31, 2020, 2019 and 2018, the Company incurred management fees of $6,766, $4,696 and $3,385, respectively, which are net of waived amounts, of $4,672, $4,502 and $2,602, respectively, of which $1,867 and $1,343 was payable at December 31, 2020 and December 31, 2019. 107 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 years ended December 31, 2020, 2019 and 2018, $148, $149 and $60, 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. 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. 108 For the years ended December 31, 2020, 2019 and 2018, the Company incurred income incentive fees of $0, $0 and $555, respectively, which are net of waived amounts, of $8,639, $4,752 and $2,187, respectively, of which $0 and $0 were payable at December 31, 2020 and 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 years ended December 31, 2020, 2019 and 2018, 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 14. A portion of the outstanding shares of the Company’s common stock are owned by Crescent Capital Group LP (“Crescent”). Crescent is also the majority member of the Adviser and sole member of the Administrator. The Company has entered into a license agreement with Crescent under which Crescent 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 Crescent. Crescent will provide the Adviser with the resources necessary for the Adviser to fulfill its obligations under the Investment Advisory Agreement. On January 5, 2021, Sun Life acquired a majority interest in Crescent. Consummation of the Sun Life Transaction resulted in a change of control of Crescent. There were no changes to the Company’s investment objective, strategies and process or to the Crescent team responsible for the investment operations of the Company as a result of the Sun Life Transaction. As described in Note 6, the Company completed a private offering of senior unsecured notes due July 30, 2023 with Sun Life serving as sole lender. Investments in and Advances to Affiliates The Company’s investments in non-controlled affiliates for the year ended December 31, 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 December 31, 2020 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates APC Auto Technology Intermediate, LLC $ 928 $ — $ — $ (1,847 ) $ 919 $ — $ — ASP MCS Acquisition — 5,224 (13 ) (3,788 ) 370 1,793 76 Battery Solutions, Inc. — 4,917 — — (1,352 ) 3,565 178 Conisus, LLC — 10,160 — — 12,705 22,865 1,433 Slickdeals Holdings, LLC 15,933 82 (348 ) 50 293 16,010 1,189 Southern Technical Institute, Inc. — — (1,271 ) 1,271 7,253 7,253 — Vivid Seats Ltd. 3,646 — — — 68 3,714 — Total Non-Controlled Affiliates $ 20,507 $ 20,383 $ (1,632 ) $ (4,314 ) $ 20,256 $ 55,200 $ 2,876 109 The Company’s investments in non-controlled affiliates for the year ended December 31, 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 December 31, 2019 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates APC Auto Tech $ — $ 9,747 $ — $ (7,900 ) $ (919 ) $ 928 $ 665 Slickdeals Holdings, LLC 12,096 3,897 (129 ) — 69 15,933 1,464 Vivid Seats Ltd. 3,389 28 (541 ) — 770 3,646 83 Total Non-Controlled Affiliates $ 15,485 $ 13,672 $ (670 ) $ (7,900 ) $ (80 ) $ 20,507 $ 2,212 The Company’s investments in controlled affiliates for the year ended December 31, 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 December 31, 2020 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ 34,442 $ 7,000 $ (1,000 ) $ — $ (1,707 ) $ 38,735 $ 2,200 The Company’s investments in controlled affiliates for the year ended December 31, 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 December 31, 2019 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ — $ 34,000 $ — $ — $ 442 $ 34,442 $ 2,300 (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. 110 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 all existing and future assets of the portfolio company. The security interest ranks below the security interests of any first lien and unitranche first lien lenders in those assets. “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 senior 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. 111 Investments at fair value consisted of the following at December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 December 31, 2019 Investment Type Cost Fair Value Unrealized Appreciation/ (Depreciation) Cost Fair Value Unrealized Appreciation/ (Depreciation) Senior Secured First Lien $ 380,909 $ 373,633 $ (7,276 ) $ 356,080 $ 351,332 $ (4,748 ) Unitranche First Lien 408,177 413,543 5,366 213,884 218,416 4,532 Unitranche First Lien - Last Out 15,668 14,917 (751 ) 15,845 16,044 199 Senior Secured Second Lien 105,056 104,656 (400 ) 64,801 58,887 (5,914 ) Unsecured Debt 3,112 3,032 (80 ) 7,381 7,414 33 Equity & Other 41,974 69,331 27,357 19,037 21,432 2,395 LLC/LP Equity Interests 56,228 54,889 (1,339 ) 52,067 53,006 939 Total Investments $ 1,011,124 $ 1,034,001 $ 22,877 $ 729,095 $ 726,531 $ (2,564 ) The industry composition of investments at fair value at December 31, 2020 and December 31, 2019 is as follows (in thousands): Industry Fair Value December 31, 2020 Percentage of Fair Value Fair Value December 31, 2019 Percentage of Fair Value Health Care Equipment & Services $ 269,614 26.08 % 147,162 20.26 % Commercial & Professional Services 207,151 20.03 136,218 18.75 Software & Services 134,374 13.00 111,790 15.39 Consumer Services 123,704 11.96 68,380 9.41 Diversified Financials 65,128 6.30 60,288 8.30 Pharmaceuticals, Biotechnology & Life Sciences 38,018 3.68 11,500 1.58 Insurance 37,154 3.59 30,991 4.27 Retailing 23,537 2.28 25,917 3.56 Automobiles & Components 23,449 2.27 32,978 4.54 Media & Entertainment 22,865 2.21 — — Energy 18,776 1.82 13,162 1.81 Capital Goods 18,643 1.80 20,896 2.88 Food & Staples Retailing 18,220 1.76 33,300 4.58 Transportation 7,257 0.70 6,626 0.91 Materials 6,912 0.67 11,137 1.53 Food, Beverage & Tobacco 4,666 0.45 4,261 0.59 Household & Personal Products 4,253 0.41 3,854 0.53 Telecommunication Services 4,062 0.39 — — Consumer Durables & Apparel 3,223 0.31 3,256 0.45 Technology Hardware & Equipment 2,995 0.29 4,815 0.66 Total Investments $ 1,034,001 100.00 % $ 726,531 100.00 % 112 The geographic composition of investments at fair value at December 31, 2020 and December 31, 2019 is as follows (in thousands): Geographic Region Fair Value December 31, 2020 Percentage of Fair Value Fair Value December 31, 2019 Percentage of Fair Value United States $ 971,838 93.99 % $ 681,443 93.79 % United Kingdom 23,960 2.32 8,038 1.11 Belgium 15,208 1.47 14,937 2.05 Canada 14,312 1.38 12,109 1.67 Netherlands 8,683 0.84 7,756 1.07 France — — 2,248 0.31 Total Investments $ 1,034,001 100.00 % $ 726,531 100.00 % Note 5. Fair Value of Financial Instruments Investments The following table presents fair value measurements of investments as of December 31, 2020 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Total Senior Secured First Lien $ — $ 33,735 $ 339,898 $ 373,633 Unitranche First Lien — — 413,543 413,543 Unitranche First Lien – Last Out — — 14,917 14,917 Senior Secured Second Lien — — 104,656 104,656 Unsecured Debt — — 3,032 3,032 Equity & Other — 1,500 67,831 69,331 Subtotal $ — $ 35,235 $ 943,877 $ 979,112 Investments Measured at NAV (1) 54,889 Total Investments $ 1,034,001 Foreign Currency Forward Contracts $ — $ (632 ) $ — $ (632 ) 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. 113 The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the year ended December 31, 2020, based off of the fair value hierarchy at December 31, 2020 (in thousands): Senior Secured First Lien Unitranche First Lien Unitranche First - Last Out Senior Secured Second Lien Unsecured Debt Equity & 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 1,776 1,669 35 218 119 10 3,827 Paid in-kind interest 1,399 352 — 267 175 1,432 3,625 Net realized gain (loss) (334 ) — — (9,002 ) — (667 ) (10,003 ) Net change in unrealized appreciation (depreciation) (3,670 ) 833 (949 ) 5,855 (114 ) 23,467 25,422 Purchases 155,047 239,785 — 62,622 1,981 22,376 481,811 Sales/return of capital/principal repayments/paydowns (89,512 ) (47,512 ) (213 ) (4,873 ) (6,543 ) (219 ) (148,872 ) Transfers in 6,999 — — — — — 6,999 Transfers out — — — — — — — Balance as of December 31, 2020 $ 339,898 $ 413,543 $ 14,917 $ 104,656 $ 3,032 $ 67,831 $ 943,877 Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2020 $ (3,286 ) $ (2,116 ) $ (949 ) $ (253 ) $ 46 $ 2,518 $ (4,040 ) During the year ended December 31, 2020, the Company recorded $0 in transfers from Level 3 to Level 2 and $6,999 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the year ended December 31, 2019, based off of the fair value hierarchy at December 31, 2019 (in thousands): Senior Secured First Lien Unitranche First Lien Unitranche First - Last Out Senior Secured Second Lien Unsecured Debt Equity & Other Total Balance as of January 1, 2019 $ 232,214 $ 84,891 $ — $ 53,857 $ 7,263 $ 13,806 $ 392,031 Amortized discounts/premiums 1,090 1,097 47 290 33 — 2,557 Paid in-kind interest 440 — — — 120 — 560 Net realized gain (loss) (597 ) 10 — (7,900 ) — 1,299 (7,188 ) Net change in unrealized appreciation (depreciation) 819 2,597 198 911 (2 ) 2,072 6,595 Purchases 102,410 164,399 16,012 2,425 — 7,183 292,429 Sales/return of capital/principal repayments/paydowns (50,060 ) (34,578 ) (213 ) (4,669 ) — (2,928 ) (92,448 ) Transfers in — — — 4,655 — — 4,655 Transfers out (18,123 ) — — — — — (18,123 ) Balance as of December 31, 2019 $ 268,193 $ 218,416 $ 16,044 $ 49,569 $ 7,414 $ 21,432 $ 581,068 Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2019 $ 395 $ 3,375 $ 199 $ (1,528 ) $ (2 ) $ 2,780 $ 5,219 114 During the year ended December 31, 2019, the Company recorded $18,123 in transfers from Level 3 to Level 2 and $4,655 in transfers from Level 2 to Level 3 due to an increase and a decrease, respectively, 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 December 31, 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 December 31, 2020 (in thousands) Valuation Techniques Unobservable Input Range (Weighted Average) Senior Secured First Lien $ 301,956 Discounted Cash Flows Discount Rate 4.7%-25.2% (7.3%) 21,189 Enterprise Value Comparable EBITDA Multiple 3.7x-16.6x (7.9x) 16,753 Broker Quoted Broker Quote N/A Subtotal: $ 339,898 Unitranche First Lien $ 392,281 Discounted Cash Flows Discount Rate 4.8%-15.0% (7.0%) 5,673 Enterprise Value Comparable EBITDA Multiple 5.9x-5.9x (5.9x) 2,668 Collateral Analysis Recovery Rate 100.0% 12,921 Broker Quoted Broker Quote N/A Subtotal $ 413,543 Unitranche First Lien - Last Out $8,454 Discounted Cash Flows Discount Rate 6.2%-6.2% (6.2%) 6,463 Collateral Analysis Recovery Rate 80.0% Subtotal $ 14,917 Senior Secured Second Lien $ 104,362 Discounted Cash Flows Discount Rate 7.5%-14.0% (9.5%) 294 Broker Quoted Broker Quote N/A Subtotal: $ 104,656 Unsecured Debt $3,032 Discounted Cash Flows Discount Rate 12.5%-21.4% (16.6%) Equity & Other $66,002 Enterprise Value Comparable EBITDA Multiple 1.5x-25.9x (10.2x) 1,829 Broker Quoted Broker Quote N/A Subtotal: $ 67,831 115 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) 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 December 31, 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. 116 Note 6. Debt Debt consisted of the following as of December 31, 2020 and December 31, 2019 (in thousands): December 31, 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 $ 260,210 $ 89,790 $ 260,210 $ 235,263 2.63 % Corporate Revolving Facility 200,000 149,904 50,096 149,904 150,378 2.93 % Unsecured Notes 50,000 50,000 — 50,000 15,027 6.49 % InterNotes ® 16,418 16,418 — 16,418 20,398 6.40 % Total Debt $ 616,418 $ 476,532 $ 139,886 $ 476,532 $ 421,066 3.26 % 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 December 31, 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 December 31, 2020 and December 31, 2019, the debt would be deemed to be Level 3 of the fair value hierarchy. As of December 31, 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. 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. 117 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 December 31, 2020 and December 31, 2019, deferred financing costs related to the SPV Asset Facility were $2,540 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 December 31, 2020 and December 31, 2019, deferred financing costs related to the Corporate Revolving Facility were $1,360 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 closed on 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 December 31, 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 December 31, 2020 and December 31, 2019, deferred financing costs related to the Unsecured Notes were $700 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 December 31, 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. 118 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 years ended December 31, 2020, 2019 and 2018, were as follows (in thousands): For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Borrowing interest expense $ 13,417 $ 12,068 $ 7,502 Unused facility fees 740 254 187 Amortization of financing costs 1,328 1,040 761 Total interest and credit facility expenses $ 15,485 $ 13,362 $ 8,450 Weighted average outstanding balance $ 421,066 $ 275,905 $ 182,328 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 years ended December 31, 2020, 2019 and 2018, the Company’s average USD notional exposure to foreign currency forward contracts was $35,788, $23,342 and $7,975, 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 December 31, 2020 and December 31, 2019. As of December 31, 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. $ 264 $ (896 ) $ (632 ) $ — $ (632 ) Total $ 264 $ (896 ) $ (632 ) $ — $ (632 ) 119 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. The effect of transactions in derivative instruments to the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, was as follows (in thousands): For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Net realized gain (loss) on foreign currency forward contracts $ — $ — $ — Net change in unrealized appreciation (depreciation) on foreign currency forward contracts (1,324 ) 675 17 Total net realized and unrealized gains (losses) on foreign currency forward contracts $ (1,324 ) $ 675 $ 17 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 December 31, 2020 and December 31, 2019, the Company had aggregated unfunded commitments totaling $80,837 and $82,745 including foreign denominated commitments converted to USD at the balance sheet date, respectively, under loan and financing agreements. As of December 31, 2020 and December 31, 2019, the Company has the following unfunded commitments to portfolio companies (in thousands): December 31, 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 $ 1,150 8/25/2025 $ 862 Affinitiv, Inc. 8/26/2024 567 8/26/2024 850 Ameda, Inc. 9/29/2022 113 9/29/2022 113 Anne Arundel Dermatology Management, LLC 10/16/2022 1,159 — — Anne Arundel Dermatology Management, LLC 10/16/2025 550 — — 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 3/22/2023 650 120 December 31, 2020 December 31, 2019 Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) 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 2,128 CC SAG Acquisition Corp. — — 9/9/2025 1,050 Centauri Health Solutions, Inc. — — 1/31/2022 1,575 Centria Subsidiary Holdings, LLC 12/09/2025 1,816 12/9/2025 1,974 Claritas, LLC 12/21/2023 188 12/21/2023 180 Colibri Group LLC 5/1/2025 1,000 5/1/2025 733 Consolidated Label Co., LLC 7/15/2026 650 — — Continental Battery Company — — 1/15/2020 1,811 Continental Battery Company 12/14/2022 567 12/14/2022 170 COP Home Services Holdings, Inc. — — 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 336 EiKo Global, LLC 6/1/2023 750 6/1/2023 750 Empire Auto Parts, LLC 9/5/2024 400 9/5/2023 400 Everlast Parent Inc. 10/30/2022 3,412 — — Everlast Parent Inc. 10/30/2026 1,611 — — 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 92 8/18/2023 257 Hepaco, LLC 8/18/2024 112 — — Hercules Borrower LLC 12/15/2026 2,222 — — HGH Purchaser, Inc. 11/1/2021 557 11/1/2021 3,378 HGH Purchaser, Inc. 11/3/2025 912 11/3/2025 828 Hospice Care Buyer, Inc. 6/09/2021 2,679 — — Hospice Care Buyer, Inc. 12/09/2026 1,386 — — Hospice Care Buyer, Inc. 12/09/2026 1,668 — — Hsid Acquisition, LLC 1/31/2026 750 — — 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 ISS Compressors Industries, Inc. 2/05/2026 833 — — IvyRehab Intermediate II, LLC 12/04/2022 1,450 — — IvyRehab Intermediate II, LLC 12/04/2024 500 — — Kestrel Parent, LLC 11/13/2023 871 11/13/2023 871 Learn-It Systems, LLC 3/18/2022 1,456 3/18/2022 2,288 Learn-It Systems, LLC 3/18/2025 600 3/18/2025 108 Lightspeed Buyer, Inc. 8/3/2021 648 Lightspeed Buyer, Inc. 2/03/2026 700 List Partners, Inc. — — 7/6/2022 156 List Partners, Inc. 1/5/2023 450 1/5/2023 450 Mann Lake Ltd. 10/04/2024 60 10/4/2024 456 Maroon Group, LLC — — 8/31/2022 252 Midwest Industrial Rubber — — 12/2/2021 525 MRI Software LLC 2/10/2022 519 — — MRI Software LLC 2/10/2026 1,184 — — 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 2/28/2021 623 — — Ontario Systems, LLC 9/5/2021 1,100 9/5/2021 1,100 Ontario Systems, LLC 8/30/2025 300 8/30/2025 500 Pilot Air Freight, LLC — — 7/25/2020 1,200 121 December 31, 2020 December 31, 2019 Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Pilot Air Freight, LLC 7/25/2024 100 7/25/2024 100 Pinnacle Treatment Centers, Inc. 1/17/2022 457 — — Pinnacle Treatment Centers, Inc. 12/31/2022 571 — — POC Investors, LLC — — 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 550 — — 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 232 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 122 6/2/2020 745 SavATree, LLC 6/2/2022 550 6/2/2022 550 Seniorlink Incorporated 7/17/2026 1,037 — — Slickdeals Holdings, LLC 6/12/2023 727 6/12/2023 727 Smile Brands, Inc. — — 10/12/2020 419 Smile Brands, Inc. 10/12/2023 300 10/12/2023 260 Smile Doctors LLC — — 04/06/20 198 Smile Doctors LLC 10/6/2022 1,070 10/6/2022 170 Southern HVAC Corporation 10/30/2022 2,450 — — Southern HVAC Corporation 10/30/2022 1,000 — — Spear Education 2/3/2026 3,125 — — Teal Acquisition Co., Inc 9/22/2026 1,642 — — Teal Acquisition Co., Inc 9/22/2026 1,004 — — The Hilb Group, LLC — — 12/2/2021 1,020 The Hilb Group, LLC 12/2/2025 340 — — Teaching Strategies LLC 5/14/2024 629 5/14/2024 447 THG Acquisition, LLC 12/15/2022 1,728 — — THG Acquisition, LLC 12/02/2025 142 — — Transportation Insight, LLC — — 12/18/2020 576 Transportation Insight, LLC 12/3/2024 750 12/3/2024 750 Tranzonic 3/27/2023 110 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 12/10/2025 538 12/5/2020 2,977 Crusoe Bidco Limited 12/10/2025 169 12/10/2025 2,233 VetStrategy 7/31/2027 347 — — VetStrategy 7/31/2027 2,355 — — Vital Care Buyer, LLC 10/19/2025 2,222 — — PharComp Parent B.V. 2/20/2026 2,056 2/20/2026 2,096 Total Senior Secured and Unitranche First Lien 78,405 72,613 Senior Secured Second Lien Service Logic Acquisition, Inc 10/30/2022 2,432 — — NMN Holdings III Corp. — — 11/13/2020 1,667 Total Senior Secured Second Lien 2,432 1,667 LLC/LP Equity Interests CBDC Senior Loan Fund LLC — $ — — $ 6,000 GACP II LP — — — 2,465 Total LLC/LP Equity Interests — — — 8,465 Total $ 80,837 $ 82,745 122 (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 December 31, 2020 and December 31, 2019. As of December 31, 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 liquidity. 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 Crescent, 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 Crescent. 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 a private offering were terminated. For the years ended December 31, 2020, 2019 and 2018, the Company issued 30,128, 76,969 and 29,914 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 November 4, 2020 December 31, 2020 January 15, 2021 $ 0.41 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 December 31, 2018 December 31, 2018 January 15, 2019 $ 0.40 September 27, 2018 September 28, 2018 October 12, 2018 $ 0.38 June 19, 2018 June 20, 2018 July 13, 2018 $ 0.37 March 29, 2018 March 30, 2018 April 13, 2018 $ 0.32 At December 31, 2020 and December 31, 2019, Crescent owned 2.11% 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 December 31, 2020 and December 31, 2019, there are no dilutive shares. 123 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 year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Net increase (decrease) in net assets resulting from operations $ 54,672 $ 29,279 $ 8,115 Weighted average common shares outstanding 27,681,757 17,344,640 10,719,485 Net increase (decrease) in net assets resulting from operations per common share-basic and diluted $ 1.98 $ 1.69 $ 0.76 Note 11. Income Taxes The tax character of shareholder distributions attributable to the years ended December 31, 2020, 2019 and 2018, were as follows (in thousands): 2020 2019 2018 Ordinary Income (1) $ 46,216 $ 29,258 $ 16,720 Capital Gains — — — Total $ 46,216 $ 29,258 $ 16,720 (1) For years ended December 31, 2020, 2019 and 2018, 98.0%, 100% and 100%, respectively, of ordinary income qualified as interest related dividend which is exempt from U.S. withholding tax applicable to non U.S. shareholders. For the years ended December 31, 2020, 2019 and 2018, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Consolidated Statements of Assets and Liabilities by temporary and other book/tax differences, primarily relating to the tax treatment of wash sales, organizational expenses, partnership basis adjustments, forward contracts mark to market and defaulted bond income accruals is as follows (in thousands): 2020 2019 2018 Undistributed net investment income $ 8,439 $ 6,685 $ 2,454 Other temporary differences (456 ) (465 ) (366 ) Post October loss deferrals — — — Capital loss carryover (1) (63,271 ) (8,716 ) (916 ) Unrealized appreciation (depreciation) 20,630 (4,901 ) (7,630 ) Components of tax distributable earnings at year end $ (34,658 ) $ (7,397 ) $ (6,458 ) (1) Capital loss carryforward is subject to limitations under IRC Sections 382 & 383. Note: Taxable income is an estimate and is not fully determined until the Company’s tax return is filed. Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The Company makes certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate. The Company neither has any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes , nor did the Company have any unrecognized tax benefits as of the periods presented herein. Although the Company files federal and state tax returns, the Company’s major tax jurisdiction is federal. The Company’s inception-to-date federal tax returns remain subject to examination by the Internal Revenue Service. A portion of losses acquired from Alcentra Capital may be subject to limitations under the Internal Revenue Code. 124 Permanent differences between Investment Company Taxable Income (“ICTI”) and net investment income for financial reporting purposes are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes. For the years ended December 31, 2020, 2019 and 2018, the Company reclassified for book purposes amounts arising from permanent book/tax differences related to the different tax treatment of foreign currency gain/(loss), defaulted bonds and non-deductible-excise tax as follows (in thousands): 2020 2019 2018 Accumulated net realized gain (loss) $ (35,651 ) $ (1,379 ) $ 670 Distributions in excess of Investment Company Taxable Income (94 ) 419 (558 ) Total $ 35,745 $ 960 $ (112 ) The tax cost of the Company’s investments as of December 31, 2020, approximates their amortized cost. As of December 31, 2020 and December 31, 2019, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was (in thousands): As of December 31, 2020 As of December 31, 2019 Tax cost $ 1,038,153 $ 730,999 Gross unrealized appreciation $ 26,684 $ 14,809 Gross unrealized depreciation (30,836 ) (19,277 ) Net unrealized investment appreciation (depreciation) $ (4,152 ) $ (4,468 ) Note 12. Financial Highlights Below is the schedule of financial highlights of the Company for the years ended December 31, 2020, 2019, 2018, 2017 and 2016 relating to the common shares issued through December 31, 2020 pursuant to the Subscription Agreements (in thousands, except share and per share data): For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 Per Share Data: (1) Net asset value, beginning of period $ 19.50 $ 19.43 $ 20.10 $ 20.08 $ 19.13 Net investment income after tax 1.80 1.83 1.65 1.31 1.23 Net realized and unrealized gains (losses) on investments, asset acquisition and forward contracts, net of taxes 0.18 (0.14 ) (0.89 ) (0.11 ) 1.04 Net increase (decrease) in net assets resulting from operations 1.98 1.69 0.76 1.20 2.27 Effect of equity issuances, net of share repurchases 0.04 0.03 0.06 0.02 (0.20 ) Distributions declared from net investment income (2) (1.64 ) (1.64 ) (1.47 ) (1.18 ) (1.10 ) Offering costs — (0.01 ) (0.02 ) (0.02 ) (0.02 ) Total increase (decrease) in net assets 0.38 0.07 (0.67 ) 0.02 0.95 Net asset value, end of period $ 19.88 $ 19.50 $ 19.43 $ 20.10 $ 20.08 125 For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 Shares outstanding, end of period 28,167,360 20,862,314 13,358,289 8,597,116 6,376,850 Market value, end of period $ 14.57 $ — $ — $ — $ — Weighted average shares outstanding 27,681,757 17,344,640 10,719,485 7,562,447 5,191,589 Total return based on market value (3) 1.47 % — % — % — % — % Total return based on net asset value (4) 10.36 % 8.81 % 4.06 % 5.99 % 10.70 % Ratio/Supplemental Data: Net assets, end of period $ 560,000 $ 406,917 $ 259,579 $ 172,800 $ 128,056 Ratio of total net expenses to average net assets (5)(6) 5.34 % 6.54 % 7.33 % 8.02 % 7.17 % Ratio of net expenses (without incentive fees and interest and other debt expenses) to average net assets (6) 2.24 % 2.50 % 3.06 % 3.53 % 4.08 % Ratio of net investment income before taxes to average net assets (6) 10.10 % 9.61 % 8.48 % 6.45 % 6.14 % Ratio of interest and credit facility expenses to average net assets (7) 3.10 % 4.03 % 4.01 % 3.44 % 2.59 % Ratio of net incentive fees to average net assets — % — % 0.26 % 1.05 % 0.50 % Ratio of portfolio turnover to average investments at fair value 28.01 % 23.97 % 27.89 % 19.27 % 34.36 % Weighted average debt outstanding $ 421,066 $ 275,905 $ 182,328 $ 133,486 $ 78,294 Asset coverage ratio 217 % 225 % 209 % 214 % 236 % (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 market value is calculated as the change in market value per share during the period, taking into account dividends, if any, reinvested in accordance with the Company’s dividend reinvestment plan. The beginning market value per share is based on the market price of $16.40 per share on February 3, 2020, the date of the Company’s listing on NASDAQ, and not annualized. (4) Total return based on net asset value is calculated as the change in net asset value per share during the period plus declared dividends per share during the period, divided by the beginning net asset value per share. (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 5.37%, 6.58% and 7.36% for the years ended December 31, 2020, 2019 and 2018, respectively. The GACP II investment was made in 2018, and as such, the 2017 and 2016 ratios were not affected. (6) Annualized except for organization expenses. (7) Annualized. 126 Note 13. Selected Quarterly Financial Data (Unaudited) Quarter Ended December 31, 2020 Quarter Ended September 30, 2020 Quarter Ended June 30, 2020 Quarter Ended March 31, 2020 Investment income $ 20,281 $ 18,674 $ 19,327 $ 18,831 Net expenses 7,057 6,335 6,260 7,040 Net investment income before taxes 13,224 12,339 13,067 11,791 Income and excise taxes 61 131 111 238 Net investment income after taxes 13,163 12,208 12,956 11,553 Net realized and unrealized gains (losses) 21,586 26,294 43,654 (82,728 ) Realized loss on asset acquisition — — — (3,825 ) Benefit/(Provision) for taxes on realized gain on investments 46 — — — Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments (336 ) (161 ) (193 ) 455 Net increase (decrease) in net assets resulting from operations after tax $ 34,459 $ 38,341 $ 56,417 $ (74,545 ) Net investment income per share (basic and diluted) $ 0.47 $ 0.43 $ 0.46 $ 0.44 Net increase (decrease) in net assets resulting from operations per share (basic and diluted) $ 1.22 $ 1.36 $ 2.00 $ (2.84 ) Weighted average shares outstanding 28,167,360 28,167,360 28,168,643 26,212,991 Net asset value per share $ 19.88 $ 19.07 $ 18.12 $ 16.52 Quarter Ended December 31, 2019 Quarter Ended September 30, 2019 Quarter Ended June 30, 2019 Quarter Ended March 31, 2019 Investment income $ 14,667 $ 14,836 $ 12,519 $ 11,455 Total expenses 6,232 5,659 5,140 4,624 Net investment income before taxes 8,435 9,177 7,379 6,831 Income and excise taxes 125 9 3 2 Net investment income after taxes 8,310 9,168 7,376 6,829 Net realized and unrealized gains 584 (6,415 ) 1,167 2,481 Provision for taxes on realized gain on investments (67 ) Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments 352 (26 ) (31 ) (449 ) Net increase in net assets resulting from operations after tax $ 9,179 $ 2,727 $ 8,512 $ 8,861 Net investment income per share (basic and diluted) $ 0.41 $ 0.49 $ 0.47 $ 0.47 Net increase in net assets resulting from operations per share (basic and diluted) $ 0.45 $ 0.15 $ 0.54 $ 0.61 Weighted average shares outstanding 20,320,131 18,810,099 15,703,473 14,464 ,405 Net asset value per share $ 19.50 $ 19.48 $ 19.75 $ 19.63 Quarter Ended December 31, 2018 Quarter Ended September 30, 2018 Quarter Ended June 30, 2018 Quarter Ended March 31, 2018 Investment income $ 10,509 $ 8,724 $ 7,251 $ 6,811 Total expenses 4,426 3,848 3,504 3,667 Net investment income before taxes 6,083 4,876 3,747 3,144 Income and excise taxes 114 1 7 (1 ) Net investment income after taxes 5,969 4,875 3,740 3,145 Net realized and unrealized gains (losses) (7,671 ) (82 ) (1,439 ) (334 ) Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments (105 ) 12 (26 ) 31 Net increase (decrease) in net assets resulting from operations after tax $ (1,807 ) $ 4,805 $ 2,275 $ 2,842 Net investment income per share (basic and diluted) $ 0.47 $ 0.43 $ 0.38 $ 0.36 Net increase (decrease) in net assets resulting from operations per share (basic and diluted) $ (0.14 ) $ 0.42 $ 0.23 $ 0.32 Weighted average shares outstanding 12,725,993 11,394,307 9,902,467 8,805,686 Net asset value per share $ 19.43 $ 19.97 $ 19.93 $ 20.08 Note 14. 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”). 127 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 a 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 year ended December 31, 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. 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 ) 128 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 15. 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 year ended December 31, 2020. There were no share repurchases for the years ended December 31, 2019 and December 31, 2018 (in thousands, except share and per share data). Year Ended December 31, 2020 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 16. 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-K or would be required to be recognized in the consolidated financial statements as of December 31, 2020 and for the year ended December 31, 2020. On January 5, 2021, Sun Life Financial Inc. acquired a majority interest in Crescent. Consummation of the Sun Life Transaction resulted in a change of control of Crescent. There were no changes to the Company’s investment objective, strategies and process or to the Crescent team responsible for the investment operations of the Company as a result of the Sun Life Transaction. On February 15, 2021, $5,401 of InterNotes ® matured and were redeemed at par. The Company provided notice to redeem the remaining $11,017 of InterNotes ® which is expected to be paid off on March 19, 2021. On February 17, 2021, the Company completed a private offering of $135,000 aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the “2026 Unsecured Notes”). The 2026 Unsecured Notes have a delayed draw feature. The initial issuance of $50,000 of Unsecured Notes closed February 17, 2021. The issuance of the remaining $85,000 of 2026 Unsecured Notes is expected to close on or before May 17, 2021. On February 22, 2021, the Company’s Board of Directors declared a regular cash dividend of $0.41 per share, which will be paid on April 15, 2021 to stockholders of record as of March 31, 2021 On February 22, 2021, the Adviser notified the Board of Directors of its intent to voluntarily waive incentive fees to the extent net investment income falls short of the declared dividend on a full dollar basis. The waiver will become effective upon expiration of the current waivers on July 31, 2021 and will continue through December 31, 2022. 129 ITEM 9. CHANGES IN DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.