Crescent Capital BDC, Inc. 10-Q

10-Q 1 d205002d10q.htm 10-Q 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number 814-01132 Crescent Capital BDC, Inc. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-3162282 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 11100 Santa Monica Blvd., Suite 2000, Los Angeles, CA 90025 (Address of Principal Executive Offices) (Zip Code) Registrant’s Telephone Number, Including Area Code: (310) 235-5900 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $0.001 par value per share CCAP The Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit files). Yes ☐ No ☐ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-Accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒ The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at November 10, 2021 was 28,167,360 Table of Contents CRESCENT CAPITAL BDC, INC. FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021 Table of Contents INDEX PAGE NO. PART I. FINANCIAL INFORMATION 2 Item 1. Financial Statements 2 Consolidated Statements of Assets and Liabilities as of September 30, 2021 (Unaudited) and December 31, 2020 2 Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (Unaudited) 3 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 and 2020 (Unaudited) 4 Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (Unaudited) 6 Consolidated Schedule of Investments as of September 30, 2021 (Unaudited) 7 Consolidated Schedule of Investments as of December 31, 2020 25 Notes to Consolidated Financial Statements (Unaudited) 44 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 72 Item 3. Quantitative and Qualitative Disclosures About Market Risk 86 Item 4. Controls and Procedures 87 PART II. OTHER INFORMATION 88 Item 1. Legal Proceedings 88 Item 1A Risk Factors 88 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88 Item 3. Defaults Upon Senior Securities 89 Item 4. Mine Safety Disclosures 89 Item 5. Other Information 89 Item 6. Exhibits 90 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “will,” “should,” “targets,” “projects,” and variations of these words and similar expressions identify forward-looking statements, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The following factors and factors listed under “Risk Factors” in this report and other documents Crescent Capital BDC, Inc. has filed with the Securities and Exchange Commission, or SEC, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: • uncertainty surrounding the financial stability of the United States, Europe and China; • the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; • potential fluctuation in quarterly operating results; • potential impact of economic recessions or downturns; • adverse developments in the credit markets; • regulations governing our operation as a business development company; • operation in a highly competitive market for investment opportunities; • changes in interest rates may affect our cost of capital and net investment income; • the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results; • financing investments with borrowed money; • potential adverse effects of price declines and illiquidity in the corporate debt markets; • the impact of COVID-19 on our portfolio companies and the markets in which they operate, interest rates and the economy in general; • lack of liquidity in investments; • the outcome and impact of any litigation; • the timing, form and amount of any dividend distributions; • risks regarding distributions; • potential adverse effects of new or modified laws and regulations; • the social, geopolitical, financial, trade and legal implications of Brexit; • potential resignation of the Adviser and or the Administrator; • uncertainty as to the value of certain portfolio investments; • defaults by portfolio companies; • our ability to successfully complete and integrate any acquisitions; • risks associated with original issue discount (“OID”) and payment-in-kind (“PIK”) interest income; and • the market price of our common stock may fluctuate significantly. Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions may be based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this report because we are an investment company. 1 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of September 30, 2021 (Unaudited) As of December 31, 2020 Assets Investments, at fair value Non-controlled non-affiliated (cost of $1,030,512 and $920,693, respectively) $ 1,047,087 $ 923,912 Non-controlled affiliated (cost of $42,997 and $50,431, respectively) 51,336 71,354 Controlled (cost of $40,000 and $40,000, respectively) 40,207 38,735 Cash and cash equivalents 6,467 1,896 Restricted cash and cash equivalents 13,027 12,953 Receivable for investments sold 15,302 6 Interest and dividend receivable 7,581 3,859 Unrealized appreciation on foreign currency forward contracts 1,915 264 Deferred tax assets 54 630 Other assets 210 543 Total assets $ 1,183,186 $ 1,054,152 Liabilities Debt (net of deferred financing costs of $4,830 and $4,600) $ 557,071 $ 471,932 Distributions payable 11,549 11,549 Incentive fees payable 7,882 — Interest and other debt financing costs payable 3,503 3,923 Management fees payable 3,055 1,867 Deferred tax liabilities 1,079 1,324 Unrealized depreciation on foreign currency forward contracts 587 896 Directors’ fees payable 127 98 Accrued expenses and other liabilities 2,181 2,563 Total liabilities $ 587,034 $ 494,152 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 shares issued and outstanding, respectively) 28 28 Paid-in capital in excess of par value 594,658 594,658 Accumulated earnings (loss) 1,466 (34,686 ) Total net assets $ 596,152 $ 560,000 Total liabilities and net assets $ 1,183,186 $ 1,054,152 Net asset value per share $ 21.16 $ 19.88 See accompanying notes 2 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Investment Income: From non-controlled non-affiliated investments: Interest income $ 22,232 $ 16,132 $ 60,570 $ 48,424 Paid-in-kind interest 184 501 966 1,747 Dividend income 1,373 7 1,427 182 Other income 254 — 577 1,060 From non-controlled affiliated investments: Interest income 305 338 904 1,009 Paid-in-kind interest 139 485 1,168 970 Dividend income 291 511 2,134 1,940 From controlled investments: Dividend income 700 700 2,100 1,500 Total investment income 25,478 18,674 69,846 56,832 Expenses: Interest and other debt financing costs 5,695 3,504 14,482 11,484 Management fees 3,531 2,909 10,082 8,327 Income based incentive fees 2,663 2,136 7,528 6,335 Capital gains based incentive fees 757 — 6,150 — Professional fees 522 354 1,516 1,060 Directors’ fees 127 100 361 339 Other general and administrative expenses 692 631 2,076 1,852 Total expenses 13,987 9,634 42,195 29,397 Management fee waiver (476 ) (1,163 ) (3,096 ) (3,427 ) Income based incentive fees waiver (931 ) (2,136 ) (5,796 ) (6,335 ) Net expenses 12,580 6,335 33,303 19,635 Net investment income before taxes 12,898 12,339 36,543 37,197 Income and excise taxes 170 131 1,403 480 Net investment income 12,728 12,208 35,140 36,717 Net realized and unrealized gains (losses) on investments: Net realized gain (loss) on: Non-controlled non-affiliated investments 280 2 4,497 (1,021 ) Non-controlled affiliated investments 27,513 (526 ) 27,513 (526 ) Foreign currency transactions 80 6 359 (155 ) Foreign currency forward contracts (56 ) — (193 ) — Net change in unrealized appreciation (depreciation) on: Non-controlled non-affiliated investments and foreign currency translation 2,897 19,051 13,336 (20,274 ) Non-controlled affiliated investments (28,198 ) 5,694 (12,583 ) 14,086 Controlled investments 302 3,416 1,472 (5,513 ) Foreign currency forward contracts 1,523 (1,349 ) 1,959 623 Net realized and unrealized gains (losses) on investments 4,341 26,294 36,360 (12,780 ) Realized loss on asset acquisition — — — (3,825 ) Net realized and unrealized gains (losses) on investments and asset acquisition 4,341 26,294 36,360 (16,605 ) Benefit (provision) for taxes on realized gain on investments 2 — (370 ) — Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments (392 ) (161 ) (332 ) 101 Net increase (decrease) in net assets resulting from operations $ 16,679 $ 38,341 $ 70,798 $ 20,213 Per common share data: Net increase (decrease) in net assets resulting from operations per share (basic and diluted): $ 0.59 $ 1.36 $ 2.51 $ 0.73 Net investment income per share (basic and diluted): $ 0.45 $ 0.43 $ 1.25 $ 1.33 Weighted average shares outstanding (basic and diluted): 28,167,360 28,167,360 28,167,360 27,518,708 See accompanying notes 3 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) (Unaudited) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Loss Total Net Assets Balance at June 30, 2021 28,167,360 $ 28 $ 594,658 $ (3,664 ) $ 591,022 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 12,728 12,728 Net realized gain (loss) on investments, foreign currency transactions and foreign currency forwards — — — 27,817 27,817 Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — (23,476 ) (23,476 ) Benefit (provision) for taxes on realized gain on investments — — — 2 2 Benefit (provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (392 ) (392 ) Stockholder distributions: Distributions to stockholders — — — (11,549 ) (11,549 ) Total increase (decrease) for the three months ended September 30, 2021 — $ — $ — $ 5,130 $ 5,130 Balance at September 30, 2021 28,167,360 $ 28 $ 594,658 $ 1,466 $ 596,152 Distributions declared per share $ 0.41 Balance at December 31, 2020 28,167,360 $ 28 $ 594,658 $ (34,686 ) $ 560,000 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 35,140 35,140 Net realized gain (loss) on investments, foreign currency transactions and foreign currency forwards — — — 32,176 32,176 Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — 4,184 4,184 Benefit (provision) for taxes on realized gain on investments — — — (370 ) (370 ) Benefit (provision) for taxes on unrealized appreciation/(depreciation) on investments — — — (332 ) (332 ) Stockholder distributions: — — — Distributions to stockholders — — — (34,646 ) (34,646 ) Total increase (decrease) for the nine months ended September 30, 2021 — $ — $ — $ 36,152 $ 36,152 Balance at September 30, 2021 28,167,360 $ 28 $ 594,658 $ 1,466 $ 596,152 Distributions declared per share $ 1.23 See accompanying notes 4 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Changes in Net Assets (in thousands, except share and per share data) (Unaudited) Common Stock Shares Par Amount Paid in Capital in Excess of Par Value Accumulated Loss Total Net Assets Balance at June 30, 2020 28,167,360 $ 28 $ 558,913 $ (48,643 ) $ 510,298 Net increase (decrease) in net assets resulting from operations: Net investment income — — — 12,208 12.208 Net realized gain (loss) on investments and foreign currency transactions — — — (518 ) (518 ) Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation — — — 26,812 26,812 Benefit/(Provision)) for taxes on unrealized appreciation/(depreciation)) on investment — — — ( 161 ) (161 ) Stockholder distributions: Distributions to stockholders — — — (11,549 ) (11,549 ) Total increase (decrease) for the three months ended September 30, 2020 26,792 26,792 Balance at September 30, 2020 28,167,360 $ 28 $ 558,913 $ (21,851 ) $ 537,090 Distributions declared $ 0.41 Balance at December 31, 2019 20,862.314 $ 21 $ 414,293 $ (7,397 ) $ 406,917 Net increase (decrease) net assets resulting from operations: Net investment income — — — 36.717 36.717 Net realized gain (loss) on investments and foreign currency transactions — — — (1,702 ) (1,702 ) Net change in unrealized appreciation (depreciation) on investments. foreign currency Forward contracts and foreign currency translation — — — (11,078 ) (11,078 ) Realized loss on asset acquisition — — — (3,825 ) (3,825 ) Benefit/(Provision) for taxes on unrealized appreciation/(depreciation) on investments — — — 101 101 Stockholder distributions: Issuance of common stock 2,265,021 2 44,293 — 44,297 Issuance in connection with asset acquisition (Note 13) 5,202.312 5 101,944 — 101.949 Issuance of common shares pursuant to dividend reinvestment plan 30,128 — 589 — 589 Repurchase of common stock (192,415 ) — (2.208 ) — (2.208 ) Distributions to stockholders — — — (34,667 ) (34,667 ) Total increase (decrease) for the nine months ended September 30, 2020 7,305,046 7 144,620 (14,454 ) 130,173 Balance at September 30, 2020 28,167,360 $ 28 $ 558,913 $ (21,851 ) $ 537,090 Distributions declared $ 1.23 See accompanying notes 5 Table of Contents Crescent Capital BDC, Inc. Consolidated Statements of Cash Flows (in thousands, except share and per share data) (Unaudited) For the nine months ended September 30, 2021 2020 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations 70,798 20,213 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities: Purchases of investments (367,663 ) (228,280 ) Paid-in-kind interest income (2,372 ) (2,717 ) Proceeds from sales of investments and principal repayments 309,592 182,275 Net realized (gain) loss on investments, foreign currency transactions and foreign currency forwards (32,652 ) 1,903 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 (2,225 ) 11,701 Net change in unrealized (appreciation) depreciation on foreign currency forward contracts (1,959 ) (623 ) Amortization of premium and accretion of discount, net (9,289 ) (3,714 ) Amortization of deferred financing costs 1,956 985 Change in operating assets and liabilities: (Increase) decrease in receivable for investments sold (15,296 ) (515 ) (Increase) decrease in interest receivable (3,722 ) 232 (Increase) decrease in deferred tax asset 576 (355 ) (Increase) decrease in other assets 333 2,421 Increase (decrease) in management fees payable 1,188 403 Increase (decrease) in incentive fees payable 7,882 — Increase (decrease) in directors’ fees payable 29 26 Increase (decrease) in interest and other debt financing costs payable (420 ) (1,286 ) Increase (decrease) in deferred tax liability (245 ) 254 Increase (decrease) in accrued expenses and other liabilities (382 ) (1,116 ) Net cash provided by (used for) operating activities $ (43,871 ) $ (27,252 ) Cash flows from financing activities: Issuance of common stock — 44,297 Repurchase of common stock — (2,208 ) Deferred financing and debt issuance costs paid (2,186 ) (2,199 ) Distributions paid (34,646 ) (31,083 ) Borrowings on credit facilities 332,737 279,592 Repayments on credit facilities (365,950 ) (229,127 ) Issuance of unsecured debt 135,000 — Repayments on InterNotes ® (16,418 ) (33,853 ) Net cash provided by (used for) financing activities 48,537 25,419 Effect of exchange rate changes on cash denominated in foreign currency (21 ) (25 ) Net increase (decrease) in cash, cash equivalents, restricted cash and foreign currency 4,645 (1,858 ) Cash, cash equivalents, restricted cash and foreign currency, beginning of period 14,849 13,427 Cash, cash equivalents, restricted cash and foreign currency, end of period (1) $ 19,494 $ 11,569 Supplemental and non-cash financing activities: Cash paid during the period for interest $ 12,325 $ 11,407 Issuance of common stock pursuant to dividend reinvestment plan — $ 589 Accrued but unpaid distributions $ 11,549 $ 11,549 Issuance of shares in connection with asset acquisition (Note 13) — 101,949 (1) As of September 30, 2021, the balance included cash and cash equivalents of $6,467 (including cash denominated in foreign currency of $1,899) and restricted cash and cash equivalents of $13,027 (including cash denominated in foreign currency of $131). As of September 30, 2020, the balance included cash and cash equivalents of $3,047 (including cash denominated in foreign currency of $861) and restricted cash and cash equivalents of $8,522, respectively. (2) After the close of business on January 31, 2020, in connection with the Alcentra Acquisition (as defined in Note 1 and further discussed in Note 13), the Company acquired net assets of $114,431 which included $195,682 of investments, $3,409 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 6 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 $ — $ (2 ) — % $ — Auto-Vehicle Parts, LLC (6) Senior Secured First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 01/2023 4,529 4,510 0.8 4,529 Auto-Vehicle Parts, LLC (6) Senior Secured First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 01/2023 2,294 2,270 0.4 2,294 Continental Battery Company (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 01/2027 7,285 7,152 1.2 7,299 Continental Battery Company (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 01/2027 — (24 ) 0.0 5 Empire Auto Parts, LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,352 2,324 0.4 2,352 Empire Auto Parts, LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 09/2024 2,425 2,400 0.4 2,425 Empire Auto Parts, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 09/2024 — (4 ) — — Sun Acquirer Corp. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 575 (75 Floor) (8) 6.50 % 09/2028 1,359 1,250 0.2 1,359 Sun Acquirer Corp. (3)(4)(5)(6) Unitranche First Lien Revolver 09/2028 — (36 ) — — Sun Acquirer Corp. (6) Unitranche First Lien Term Loan L + 575 (75 Floor) (8) 6.50 % 09/2028 13,043 12,785 2.2 13,043 33,287 32,625 5.6 33,306 Capital Goods Envocore Holding, LLC (6) Senior Secured First Lien Term Loan L + 750 (200 Floor) (including 150 PIK) (8) 11.00 % 06/2022 18,619 15,971 2.1 12,361 Painters Supply & Equipment Company (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 08/2027 — (9 ) — (9 ) Painters Supply & Equipment Company (3)(4)(5)(6) Unitranche First Lien Revolver 08/2027 — (10 ) — (5 ) Painters Supply & Equipment Company (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (7) 6.75 % 08/2027 2,050 2,009 0.3 2,030 Potter Electric Signal Company (5)(6)(9) Senior Secured First Lien Delayed Draw Term Loan L + 425 (100 Floor) (8) 5.25 % 12/2025 848 834 0.1 846 Potter Electric Signal Company (3)(4)(5) Senior Secured First Lien Revolver 12/2024 — (3 ) — (2 ) Potter Electric Signal Company (6) Senior Secured First Lien Term Loan L + 425 (100 Floor) (8) 5.25 % 12/2025 2,461 2,445 0.4 2,455 Potter Electric Signal Company (6) Senior Secured First Lien Term Loan L + 425 (100 Floor) (8) 5.25 % 12/2025 468 465 0.1 466 24,446 21,702 3.0 18,142 Commercial & Professional Services ASP MCS Acquisition Corp. (6)(10) Senior Secured Second Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 293 272 0.0 289 Battery Solutions, Inc. (6)(10) Unsecured Debt 1400 PIK (11) 14.00 % 06/2023 1,387 1,378 0.2 1,306 See accompanying notes 7 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Battery Solutions, Inc. (6)(10) Unsecured Debt 1400 PIK (11) 14.00 % 06/2023 370 370 0.1 348 CHA Holdings, Inc. (6) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 1,005 1,002 0.2 954 CHA Holdings, Inc. (6) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 04/2025 4,765 4,753 0.8 4,527 Consolidated Label Co., LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 07/2026 — (10 ) — (1 ) Consolidated Label Co., LLC (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 07/2026 4,317 4,246 0.7 4,313 Consolidated Label Co., LLC (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 07/2026 3,840 3,768 0.6 3,836 GH Parent Holdings Inc. (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 05/2027 13,175 12,985 2.2 13,057 GH Parent Holdings Inc. (4)(5)(6) Unitranche First Lien Revolver L + 550 (100 Floor) (7) 6.50 % 05/2027 208 179 0.0 190 GH Parent Holdings Inc. (5)(6) Unitranche First Lien Delayed Draw Term Loan 05/2027 — — — (50 ) Hepaco, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (including 50 PIK) (7) 6.50 % 08/2024 4,131 4,110 0.6 3,866 Hepaco, LLC (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (including 50 PIK) (7) 6.50 % 08/2024 5,065 5,040 0.8 4,741 Hepaco, LLC (4)(5)(6) Senior Secured First Lien Revolver L + 500 (100 Floor) (including 50 PIK) (7) 6.50 % 08/2024 765 765 0.1 706 Hercules Borrower LLC (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 12/2026 19,030 18,615 3.4 19,409 Hercules Borrower LLC (3)(4)(5)(6) Unitranche First Lien Revolver 12/2026 — (48 ) — 44 Hercules Borrower LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 12/2026 — — — — Hercules Borrower LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 12/2026 247 242 0.0 247 Hsid Acquisition, LLC (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 01/2026 3,834 3,776 0.6 3,834 Hsid Acquisition, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (7) 6.00 % 01/2026 2,871 2,829 0.5 2,871 Hsid Acquisition, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 01/2026 — (11 ) — — Hsid Acquisition, LLC (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (7) 5.75 % 01/2026 250 245 0.0 250 ISS Compressors Industries, Inc. (3)(4)(5)(6) Senior Secured First Lien Revolver 02/2026 — (6 ) — (19 ) ISS Compressors Industries, Inc. (6) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 8,988 8,922 1.5 8,779 MHS Acquisition Holdings, LLC (6) Unsecured Debt 1350 PIK (11) 13.50 % 03/2026 214 206 0.0 214 MHS Acquisition Holdings, LLC (6) Unsecured Debt 1350 PIK (11) 13.50 % 03/2026 644 640 0.1 644 MHS Acquisition Holdings, LLC (5)(6)(9) Senior Secured First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 07/2027 11 9 0.0 11 MHS Acquisition Holdings, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 07/2027 — (3 ) — — MHS Acquisition Holdings, LLC (6) Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 07/2027 1,728 1,694 0.3 1,728 See accompanying notes 8 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Nexant Volt MergerSub, Inc. (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 05/2027 5,686 5,575 1.0 5,686 Nexant Volt MergerSub, Inc. (4)(5)(6) Senior Secured First Lien Revolver L + 500 (100 Floor) (8) 6.00 % 05/2027 335 325 0.1 335 Pinstripe Holdings, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 01/2025 9,750 9,584 1.6 9,652 Pye-Barker Fire & Safety, LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 11/2025 4,981 4,892 0.8 5,030 Pye-Barker Fire & Safety, LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 11/2025 3,705 3,620 0.6 3,742 Pye-Barker Fire & Safety, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 11/2025 9,948 9,740 1.7 10,047 Pye-Barker Fire & Safety, LLC (4)(5)(6) Unitranche First Lien Delayed Draw Term Loan L + 575 (75 Floor) 6.50 % 11/2025 1,188 1,157 0.2 1,188 Receivable Solutions, Inc. (3)(4)(5)(6) Senior Secured First Lien Revolver 10/2024 — (3 ) — — Receivable Solutions, Inc. (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 10/2024 1,837 1,816 0.3 1,837 Receivable Solutions, Inc. (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 10/2024 718 706 0.1 718 SavATree, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 525 (100 Floor) (8) 6.25 % 06/2022 888 885 0.1 888 SavATree, LLC (6) Senior Secured First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 06/2022 3,880 3,868 0.7 3,880 SavATree, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 06/2022 — (1 ) — — Seko Global Logistics Network, LLC (4)(5)(6)(17) Senior Secured First Lien Revolver 12/2026 — — — (13 ) Seko Global Logistics Network, LLC (6)(17) Senior Secured First Lien Term Loan L + 500 (100 Floor) 6.00 % 12/2026 5,050 4,974 0.8 5,000 Service Logic Acquisition, Inc. (6) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 10/2028 8,755 8,515 1.5 9,018 Service Logic Acquisition, Inc. (3)(5)(6)(9) Senior Secured Second Lien Delayed Draw Term Loan 10/2028 — (69 ) — 73 Spear Education (3)(5)(6)(9) Senior Secured First Lien Delayed Draw Term Loan 02/2025 — (22 ) — — Spear Education (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 02/2025 6,772 6,723 1.1 6,772 TecoStar Holdings, Inc. (6) Senior Secured Second Lien Term Loan L + 850 (100 Floor) (8) 9.50 % 11/2024 5,000 4,938 0.8 4,840 UP Acquisition Corp. (6) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 1,179 1,165 0.2 1,160 UP Acquisition Corp. (4)(5)(6) Unitranche First Lien Revolver L + 625 (100 Floor) (7) 7.25 % 05/2024 339 325 0.1 318 UP Acquisition Corp. (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (7) 7.25 % 05/2024 4,301 4,251 0.7 4,232 Xcentric Mold and Engineering Acquisition Company, LLC (6) Senior Secured First Lien Revolver L + 600 (100 Floor) (including 100 PIK) (7) 8.00 % 01/2022 716 715 0.1 608 Xcentric Mold and Engineering Acquisition Company, LLC (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (including 100 PIK) (7) 8.00 % 01/2022 4,411 4,404 0.6 3,750 156,577 154,051 25.8 154,855 See accompanying notes 9 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Durables & Apparel EiKo Global, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 06/2023 — (5 ) — — EiKo Global, LLC (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 06/2023 3,142 3,116 0.5 3,142 3,142 3,111 0.5 3,142 Consumer Services Everlast Parent Inc. (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 10/2026 13,923 13,618 2.3 13,819 Everlast Parent Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 10/2026 — (34 ) — (12 ) Everlast Parent Inc. (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 10/2026 — (36 ) — (26 ) HGH Purchaser, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 11/2025 989 969 0.2 1,023 HGH Purchaser, Inc. (6) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 11/2025 3,348 3,269 0.6 3,381 HGH Purchaser, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 11/2025 — (17 ) — 10 HGH Purchaser, Inc. (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 11/2025 7,966 7,820 1.3 8,046 Learn-It Systems, LLC (4)(5)(6) Senior Secured First Lien Revolver L + 450 (100 Floor) (13) 5.50 % 03/2025 150 132 0.0 143 Learn-It Systems, LLC (5)(6)(14) Senior Secured First Lien Delayed Draw Term Loan L + 450 (100 Floor) (8) 5.50 % 03/2025 2,544 2,491 0.4 2,524 Learn-It Systems, LLC (6) Senior Secured First Lien Term Loan L + 450 (100 Floor) (8) 5.50 % 03/2025 4,304 4,215 0.7 4,270 Learn-It Systems, LLC (3)(5)(6)(14) Senior Secured First Lien Delayed Draw Term Loan 05/2023 — (41 ) — — Southern HVAC Corporation (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 10/2025 7,215 7,091 1.2 7,287 Southern HVAC Corporation (4)(5)(6) Unitranche First Lien Revolver L + 625 (100 Floor) (8) 7.25 % 10/2025 329 312 0.1 339 Southern HVAC Corporation (6) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 10/2025 2,444 2,410 0.4 2,468 Stepping Stones Healthcare Services, LLC (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 03/2027 5,871 5,790 1.0 5,871 Stepping Stones Healthcare Services, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 03/2026 — (10 ) — — Stepping Stones Healthcare Services, LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 03/2027 253 242 0.0 253 United Language Group, Inc. (4)(6) Senior Secured First Lien Revolver L + 675 (100 Floor) (7) 7.75 % 12/2021 400 400 0.1 388 United Language Group, Inc. (6) Senior Secured First Lien Term Loan L + 675 (100 Floor) (7) 7.75 % 12/2021 4,605 4,601 0.7 4,468 WeddingWire, Inc. Senior Secured Second Lien Term Loan L + 825 (8) 8.38 % 12/2026 5,000 4,960 0.8 4,950 Wrench Group LLC (6) Senior Secured Second Lien Term Loan L + 788 (8) 8.01 % 04/2027 2,500 2,442 0.4 2,525 61,841 60,624 10.2 61,727 Energy BJ Services, LLC (6) Unitranche First Lien Term Loan L + 700 (150 Floor) (8) 8.50 % 01/2023 1,195 1,191 0.2 1,195 See accompanying notes 10 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 BJ Services, LLC (6)(15)(16) Unitranche First Lien—Last Out Term Loan 01/2023 8,075 8,014 0.9 5,507 Black Diamond Oilfiefld Rentals, LLC (6) Senior Secured First Lien Term Loan L + 950 (100 Floor) (8) 10.50 % 03/2022 9,533 9,533 1.6 9,294 18,803 18,738 2.7 15,996 Food & Staples Retailing Isagenix International, LLC Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 06/2025 5,729 5,712 0.8 4,798 Food, Beverage & Tobacco JTM Foods LLC (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 05/2027 5,037 4,953 0.8 4,995 JTM Foods LLC (4)(5)(6) Senior Secured First Lien Revolver L + 475 (100 Floor) (8) 5.75 % 05/2027 160 147 0.0 153 JTM Foods LLC (3)(4)(5)(6) Senior Secured First Lien Delayed Draw Term Loan 05/2027 — (7 ) — (6 ) Mann Lake Ltd. (4)(5)(6) Senior Secured First Lien Revolver L + 675 (100 Floor) (8) 7.75 % 10/2024 720 711 0.1 712 Mann Lake Ltd. (6) Senior Secured First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 10/2024 3,797 3,754 0.6 3,764 9,714 9,558 1.5 9,618 Health Care Equipment & Services ACI Group Holdings, Inc. (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 08/2028 — (25 ) — — ACI Group Holdings, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 08/2027 — (14 ) — — ACI Group Holdings, Inc. (6) Unitranche First Lien Term Loan L + 550 (75 Floor) (7) 6.25 % 08/2028 7,010 6,870 1.2 7,010 Advanced Diabetes Supply (6) Senior Secured First Lien Term Loan L + 525 (100 Floor) (8) 6.25 % 07/2025 3,750 3,714 0.6 3,713 Aegis Sciences Corporation (6) Senior Secured First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 05/2025 5,942 5,624 1.0 5,772 Ameda, Inc. (6) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 09/2022 2,181 2,172 0.3 2,068 Ameda, Inc. (4)(5)(6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 09/2022 188 186 0.0 172 Anne Arundel Dermatology Management, LLC (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 2,432 2,391 0.4 2,432 Anne Arundel Dermatology Management, LLC (4)(5)(6) Senior Secured First Lien Revolver L + 600 (100 Floor) (8) 7.00 % 10/2025 110 101 0.0 110 Anne Arundel Dermatology Management, LLC (5)(6)(9) Senior Secured First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 1,291 1,265 0.2 1,291 Avalign Technologies, Inc. (6) Senior Secured First Lien Term Loan L + 450 (8) 4.63 % 12/2025 16,708 16,602 2.8 16,457 Centria Subsidiary Holdings, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 12/2025 — (41 ) — 9 See accompanying notes 11 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2025 11,664 11,409 2.0 11,718 CRA MSO, LLC (6) Senior Secured First Lien Term Loan L + 700 (100 Floor) (7) 8.00 % 12/2023 1,216 1,204 0.2 1,188 CRA MSO, LLC (4)(5)(6) Senior Secured First Lien Revolver L + 700 (100 Floor) (7) 8.00 % 12/2023 60 58 0.0 56 ExamWorks Group, Inc. (6) Senior Secured Second Lien Term Loan L + 725 (100 Floor) (8) 8.25 % 07/2024 5,735 5,657 1.0 5,793 FH MD Buyer, Inc Senior Secured First Lien Term Loan L + 500 (75 Floor) (8) 5.75 % 722/2028 20,000 19,805 3.5 19,974 GrapeTree Medical Staffing, LLC (6) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,299 1,290 0.2 1,299 GrapeTree Medical Staffing, LLC (6) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 10/2022 1,545 1,539 0.3 1,545 GrapeTree Medical Staffing, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 10/2022 — (2 ) — — Great Lakes Dental Partners, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2026 4,988 4,892 0.8 4,944 Great Lakes Dental Partners, LLC (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 06/2026 — (16 ) — (7 ) Great Lakes Dental Partners, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 06/2026 — (8 ) — (3 ) HCAT Acquisition, Inc. (6) Unitranche First Lien Term Loan L + 825 (100 Floor) (8) 9.25 % 11/2022 14,302 13,603 2.3 13,873 HCAT Acquisition, Inc. (6) Unitranche First Lien Revolver L + 825 (100 Floor) (8) 9.25 % 11/2022 3,836 3,649 0.6 3,721 HCAT Acquisition, Inc. (6) Unitranche First Lien Delayed Draw Term Loan L + 825 (100 Floor) (8) 9.25 % 11/2022 2,250 2,140 0.4 2,183 HCOS Group Intermediate III LLC (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 09/2026 11,484 11,287 1.9 11,254 HCOS Group Intermediate III LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 09/2026 — (15 ) — (18 ) Homecare Partners Management, LLC (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 05/2027 4,550 4,461 0.8 4,489 Homecare Partners Management, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 05/2027 — (21 ) — (15 ) Homecare Partners Management, LLC (5)(6)(9) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 05/2027 1,836 1,804 0.3 1,791 Hospice Care Buyer, Inc. (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 12/2026 14,343 13,991 2.4 14,343 Hospice Care Buyer, Inc. (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 12/2026 2,620 2,549 0.4 2,620 Hospice Care Buyer, Inc. (4)(5)(6) Unitranche First Lien Revolver L + 650 (100 Floor) (7) 7.50 % 12/2026 577 535 0.1 577 Hospice Care Buyer, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 650 (100 Floor) (13) 7.50 % 12/2026 1,287 1,235 0.2 1,287 IvyRehab Intermediate II, LLC (6) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 12/2024 7,970 7,839 1.3 7,970 IvyRehab Intermediate II, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 12/2024 — (8 ) — — IvyRehab Intermediate II, LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 675 (100 Floor) (8) 7.75 % 12/2024 1,379 1,356 0.2 1,379 IvyRehab Intermediate II, LLC (3)(5)(6) Unitranche First Lien Delayed Draw Term Loan 12/2024 — (18 ) — — IvyRehab Intermediate II, LLC (6) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 12/2024 6,800 6,688 1.1 6,800 Lightspeed Buyer, Inc. (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 02/2026 9,850 9,700 1.7 9,850 See accompanying notes 12 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Lightspeed Buyer, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 02/2026 — (15 ) — — Lightspeed Buyer, Inc. (6) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (7) 6.50 % 02/2026 1,784 1,762 0.3 1,784 Lightspeed Buyer, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 02/2026 — — — — Lightspeed Buyer, Inc. (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (7) 6.75 % 02/2026 2,750 2,696 0.5 2,750 MDVIP, Inc. Senior Secured First Lien Term Loan L + 425 (100 Floor) (7) 5.25 % 11/2024 9,487 9,487 1.6 9,487 NMN Holdings III Corp. (6) Senior Secured Second Lien Delayed Draw Term Loan L + 775 (7) 7.83 % 11/2026 1,667 1,630 0.3 1,646 NMN Holdings III Corp. (6) Senior Secured Second Lien Term Loan L + 775 (7) 7.83 % 11/2026 7,222 7,067 1.2 7,131 NMSC Holdings, Inc. (6) Senior Secured Second Lien Term Loan L + 1000 (100 Floor) (8) 11.00 % 10/2023 4,307 4,249 0.7 4,307 Omni Ophthalmic Management Consultants, LLC (6) Senior Secured First Lien Revolver L + 750 (100 Floor) (7) 8.50 % 05/2023 850 845 0.1 850 Omni Ophthalmic Management Consultants, LLC (6) Senior Secured First Lien Term Loan L + 750 (100 Floor) (7) 8.50 % 05/2023 6,825 6,784 1.1 6,825 Omni Ophthalmic Management Consultants, LLC (6) Senior Secured First Lien Term Loan L + 750 (100 Floor) (7) 8.50 % 05/2023 896 881 0.2 896 Patriot Acquisition Topco S.A.R.L (6)(17) Unitranche First Lien Term Loan L + 675 (100 Floor) (8) 7.75 % 01/2028 5,031 4,915 0.9 5,116 Patriot Acquisition Topco S.A.R.L (3)(4)(5)(6)(17) Unitranche First Lien Revolver 01/2026 — (38 ) — 30 Patriot Acquisition Topco S.A.R.L (6)(17) Unitranche First Lien Delayed Draw Term Loan L + 675 (100 Floor) (8) 7.75 % 01/2028 12,200 11,921 2.1 12,406 Pharmalogics Recruiting, LLC (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 02/2027 7,384 7,249 1.2 7,310 Pharmalogics Recruiting, LLC (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 02/2027 — (26 ) — (14 ) Pinnacle Treatment Centers, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2022 679 674 0.1 679 Pinnacle Treatment Centers, Inc. (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2022 8,052 8,015 1.4 8,052 Pinnacle Treatment Centers, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 12/2022 — (3 ) — — Premier Dental Care Management, LLC (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 08/2028 — (25 ) — (103 ) Premier Dental Care Management, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 08/2027 — (30 ) — (31 ) Premier Dental Care Management, LLC (6) Unitranche First Lien Term Loan L + 575 (75 Floor) (7) 6.50 % 08/2028 9,524 9,335 1.6 9,333 Professional Physical Therapy (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (including 250 PIK) (8) 9.50 % 12/2022 9,079 8,783 1.1 6,261 PromptCare Intermediate, LP (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 09/2027 — (44 ) — (89 ) PromptCare Intermediate, LP (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 09/2027 10,500 10,292 1.7 10,290 PT Network, LLC (4)(5)(6) Senior Secured First Lien Revolver 11/2023 — — — — See accompanying notes 13 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 PT Network, LLC (6) Senior Secured First Lien Term Loan L + 550 (100 Floor) (including 200 PIK) (8) 8.50 % 11/2023 4,827 4,821 0.8 4,827 Safco Dental Supply, LLC (4)(5)(6) Unitranche First Lien Revolver L + 400 (100 Floor) (8) 5.00 % 06/2025 240 233 0.0 240 Safco Dental Supply, LLC (6) Unitranche First Lien Term Loan L + 400 (100 Floor) (8) 5.00 % 06/2025 4,043 3,995 0.7 4,043 Seniorlink Incorporated (3)(4)(5)(6) Unitranche First Lien Revolver 07/2026 — (25 ) — — Seniorlink Incorporated (6) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 07/2026 11,220 10,940 1.9 11,220 Smile Doctors LLC (4)(5)(6) Senior Secured First Lien Revolver 10/2022 — — — — Smile Doctors LLC (6) Senior Secured First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2022 16,158 16,146 2.7 16,158 Unifeye Vision Partners (6) Senior Secured First Lien Delayed Draw Term Loan L + 500 (100 Floor) (8) 6.00 % 09/2025 3,042 2,991 0.5 3,042 Unifeye Vision Partners (3)(4)(5)(6) Senior Secured First Lien Revolver 09/2025 — (23 ) — — Unifeye Vision Partners (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (8) 6.00 % 09/2025 5,306 5,231 0.9 5,306 Unifeye Vision Partners (5)(6)(14) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 09/2025 45 45 0.0 45 Vital Care Buyer, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 10/2025 6,981 6,878 1.2 6,981 Vital Care Buyer, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 10/2025 — (32 ) — — Zest Acquisition Corp. Senior Secured First Lien Term Loan L + 350 (7) 3.59 % 03/2025 6,586 6,583 1.1 6,444 325,888 319,635 54.1 320,867 Household & Personal Products Tranzonic (4)(5)(6) Senior Secured First Lien Revolver L + 450 (100 Floor) (7) 5.50 % 03/2023 713 708 0.1 713 Tranzonic (6) Senior Secured First Lien Term Loan L + 450 (100 Floor) (7) 5.50 % 03/2023 3,782 3,769 0.6 3,782 4,495 4,477 0.7 4,495 Insurance Comet Acquisition, Inc. Senior Secured Second Lien Term Loan L + 750 (8) 7.63 % 10/2026 1,782 1,779 0.3 1,741 Evolution BuyerCo, Inc. (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 04/2028 8,313 8,224 1.4 8,479 Evolution BuyerCo, Inc. (3)(5)(6) Unitranche First Lien Revolver 04/2028 — (8 ) — 15 Evolution BuyerCo, Inc. (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 04/2028 — (8 ) — 29 Integrity Marketing Acquisition, LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 08/2025 5,029 4,936 0.8 5,017 Integrity Marketing Acquisition, LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 08/2025 3,041 2,985 0.5 3,033 Integrity Marketing Acquisition, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 08/2025 — (33 ) — (4 ) Integrity Marketing Acquisition, LLC (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 08/2025 12,781 12,562 2.1 12,749 Integro Parent, Inc. (17) Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 10/2022 469 468 0.1 461 See accompanying notes 14 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Integro Parent, Inc. (6)(17) Senior Secured Second Lien Term Loan L + 925 (100 Floor) (7) 10.25 % 10/2023 2,915 2,897 0.5 2,755 Integro Parent, Inc. (6)(17) Senior Secured Second Lien Delayed Draw Term Loan L + 925 (100 Floor) (7) 10.25 % 10/2023 380 378 0.1 359 The Hilb Group, LLC (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2026 3,576 3,506 0.6 3,562 The Hilb Group, LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2026 1,011 991 0.2 1,007 The Hilb Group, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 12/2025 — (6 ) — (1 ) The Hilb Group, LLC (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2026 1,061 1,037 0.2 1,072 The Hilb Group, LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (8) 7.25 % 12/2026 512 490 0.1 530 The Hilb Group, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 12/2025 — (3 ) — 1 40,870 40,195 6.9 40,805 Materials Kestrel Parent, LLC (3)(5)(6)(19) Unitranche First Lien Revolver 11/2023 — (9 ) — — Kestrel Parent, LLC (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 11/2025 6,621 6,516 1.1 6,621 6,621 6,507 1.1 6,621 Pharmaceuticals, Biotechnology & Life Sciences Teal Acquisition Co., Inc (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 09/2026 9,056 8,821 1.5 9,056 Teal Acquisition Co., Inc (3)(4)(5)(6) Unitranche First Lien Revolver 09/2026 — (32 ) — — Teal Acquisition Co., Inc (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 09/2026 — (20 ) — — Trinity Partners, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 02/2025 — (3 ) — — Trinity Partners, LLC (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 02/2025 3,681 3,659 0.6 3,681 12,737 12,425 2.1 12,737 Retailing Savers Senior Secured First Lien Term Loan L + 575 (75 Floor) (8) 6.50 % 04/2028 20,000 19,813 3.5 20,249 Slickdeals Holdings, LLC (3)(5)(6)(10)(19) Unitranche First Lien Revolver 06/2023 — (7 ) — 2 Slickdeals Holdings, LLC (6)(10) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 06/2024 14,417 14,170 2.4 14,456 34,417 33,976 5.9 34,707 Software & Services Affinitiv, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 08/2024 — (6 ) — — Affinitiv, Inc. (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 08/2024 6,386 6,315 1.1 6,386 Ansira Partners, Inc. (6)(15) Unitranche First Lien Term Loan 12/2024 7,518 6,687 0.9 5,454 Ansira Partners, Inc. (6)(15) Unitranche First Lien Delayed Draw Term Loan 12/2024 1,029 931 0.1 747 Apps Associates LLC (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 07/2027 — (9 ) — (18 ) See accompanying notes 15 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Apps Associates LLC (3)(4)(5)(6) Unitranche First Lien Revolver 07/2027 — (15 ) — (8 ) Apps Associates LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 07/2027 5,650 5,540 0.9 5,594 Banker’s Toolbox, Inc. (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 07/2027 — (65 ) — — Banker’s Toolbox, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 07/2027 — (47 ) — — Banker’s Toolbox, Inc. (6) Unitranche First Lien Term Loan L + 550 (75 Floor) (8) 6.25 % 07/2027 15,883 15,572 2.7 15,883 Belay Inc. (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 06/2026 4,938 4,855 0.8 4,938 Belay Inc. (3)(4)(5)(6) Senior Secured First Lien Revolver 06/2026 — (11 ) — — Benesys Inc. (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (7) 5.75 % 10/2024 1,403 1,392 0.2 1,403 Benesys Inc. (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (7) 5.75 % 10/2024 298 293 0.0 298 Benesys Inc. (3)(4)(5)(6) Senior Secured First Lien Revolver 10/2024 — (1 ) — — C-4 Analytics, LLC (3)(4)(5)(6) Senior Secured First Lien Revolver 08/2023 — (3 ) — — C-4 Analytics, LLC (6) Senior Secured First Lien Term Loan L + 525 (100 Floor) (7) 6.25 % 08/2023 9,837 9,775 1.7 9,837 CAT Buyer, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 04/2024 — (6 ) — — CAT Buyer, LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (7) 6.50 % 04/2024 6,114 6,048 1.0 6,114 Claritas, LLC (4)(5)(6) Senior Secured First Lien Revolver L + 575 (100 Floor) (7) 6.75 % 12/2023 23 21 0.0 23 Claritas, LLC (6) Senior Secured First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 12/2023 1,071 1,065 0.2 1,071 Granicus, Inc. (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 01/2027 9,172 8,976 1.5 8,988 Granicus, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 01/2027 — (17 ) — (16 ) Granicus, Inc. (6) Unitranche First Lien Delayed Draw Term Loan 01/2027 — — — — Granicus, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (8) 7.00 % 01/2027 4,781 4,658 0.8 4,623 List Partners, Inc. (3)(4)(5)(6) Senior Secured First Lien Revolver 01/2023 — (2 ) — (6 ) List Partners, Inc. (6) Senior Secured First Lien Term Loan L + 500 (100 Floor) (7) 6.00 % 01/2023 4,109 4,087 0.7 4,053 MRI Software LLC (3)(5)(9) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (2 ) — — MRI Software LLC Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 17,943 17,736 3.1 17,931 MRI Software LLC (3)(4)(5) Unitranche First Lien Revolver 02/2026 — (14 ) — (1 ) MRI Software LLC (3)(5)(9) Unitranche First Lien Delayed Draw Term Loan 02/2026 — (2 ) — — MRI Software LLC Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 02/2026 935 921 0.2 935 New Era Technology, Inc. (6) Unitranche First Lien Term Loan L + 625 (100 Floor) (8) 7.25 % 10/2026 3,166 3,105 0.5 3,180 New Era Technology, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 10/2026 — (4 ) — 1 New Era Technology, Inc. (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 625 (100 Floor) (13) 7.25 % 10/2026 1,126 1,098 0.2 1,135 See accompanying notes 16 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (in thousands, except share and per share data) Company/Security/Country Investment Type Interest Term * Interest Rate Maturity/ Dissolution Date Principal Amount, Par Value or Shares ** Cost Percentage of Net Assets *** Fair Value Ontario Systems, LLC (5)(6)(9) Unitranche First Lien Delayed Draw Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 1,100 1,081 0.2 1,079 Ontario Systems, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 08/2025 — (3 ) — (6 ) Ontario Systems, LLC (6) Unitranche First Lien Term Loan L + 550 (100 Floor) (8) 6.50 % 08/2025 3,634 3,602 0.6 3,587 Park Place Technologies, LLC (6) Unsecured Debt 1250 PIK (11) 12.50 % 05/2029 758 758 0.1 758 Perforce Software, Inc. (6) Senior Secured Second Lien Term Loan L + 800 (7) 8.08 % 07/2027 5,000 4,981 0.8 5,000 Prism Bidco, Inc. (3)(4)(5)(6) Unitranche First Lien Revolver 06/2026 — (20 ) — 17 Prism Bidco, Inc. (6) Unitranche First Lien Term Loan L + 700 (100 Floor) (8) 8.00 % 06/2026 7,406 7,222 1.3 7,554 Prism Bidco, Inc. (6) Unitranche First Lien Term Loan L + 575 (100 Floor) (8) 6.75 % 06/2026 1,466 1,438 0.2 1,466 Right Networks, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 05/2026 — (3 ) — — Right Networks, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 05/2026 9,301 9,162 1.6 9,301 Right Networks, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 05/2026 8,328 8,167 1.4 8,328 Right Networks, LLC (3)(5)(6)(9) Unitranche First Lien Delayed Draw Term Loan 05/2026 — (40 ) — — Ruffalo Noel Levitz, LLC (3)(4)(5)(6) Unitranche First Lien Revolver 05/2022 — (1 ) — (1 ) Ruffalo Noel Levitz, LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (8) 7.00 % 05/2022 2,486 2,477 0.4 2,480 Saturn Borrower Inc (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 09/2026 20,370 19,845 3.4 19,906 Saturn Borrower Inc (6) Unitranche First Lien Term Loan L + 650 (100 Floor) (8) 7.50 % 09/2026 2,481 2,414 0.4 2,425 Saturn Borrower Inc (4)(5)(6) Unitranche First Lien Revolver L + 650 (100 Floor) (8) 7.50 % 09/2026 605 567 0.1 571 Transportation Insight, LLC (6) Senior Secured First Lien Term Loan L + 450 (7) 4.58 % 12/2024 5,102 5,074 0.9 5,089 Transportation Insight, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 450 (7) 4.58 % 12/2024 1,268 1,260 0.2 1,264 Transportation Insight, LLC (4)(6)(5) Senior Secured First Lien Revolver L + 450 (7) 4.58 % 12/2024 179 175 0.0 177 Trident Technologies, LLC (6) Senior Secured First Lien Term Loan L + 600 (150 Floor) (8) 7.50 % 12/2025 14,738 14,572 2.5 14,738 Trident Technologies, LLC (6) Senior Secured First Lien Term Loan L + 600 (150 Floor) (8) 7.50 % 12/2025 4,988 4,953 0.8 4,988 Winxnet Holdings LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 636 630 0.1 636 Winxnet Holdings LLC (6) Unitranche First Lien Delayed Draw Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 1,042 1,027 0.2 1,042 Winxnet Holdings LLC (3)(4)(5)(6) Unitranche First Lien Revolver 06/2023 — (3 ) — — Winxnet Holdings LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 1,935 1,920 0.3 1,935 Winxnet Holdings LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 1,542 1,518 0.3 1,542 Winxnet Holdings LLC (3)(4)(5)(6) Unitranche First Lien Revolver 06/2023 — (4 ) — — Winxnet Holdings LLC (6) Unitranche First Lien Term Loan L + 600 (100 Floor) (7) 7.00 % 06/2023 1,150 1,130 0.2 1,150 196,897 192,770 32.6 193,571 See accompanying notes 17 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Technology, Hardware & Equipment Onvoy, LLC (6) Senior Secured Second Lien Term Loan L + 1050 (100 Floor) (7) 11.50 % 02/2025 1,459 1,422 0.2 1,459 Transportation Pilot Air Freight, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 765 764 0.1 765 Pilot Air Freight, LLC (5)(6)(9) Senior Secured First Lien Revolver 07/2024 — — — — Pilot Air Freight, LLC (6) Senior Secured First Lien Delayed Draw Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 1,184 1,184 0.2 1,184 Pilot Air Freight, LLC (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 5,321 5,305 0.9 5,321 Pilot Air Freight, LLC (6) Senior Secured First Lien Term Loan L + 475 (100 Floor) (8) 5.75 % 07/2024 800 788 0.1 800 8,070 8,041 1.3 8,070 Total Debt Investments United States $ 944,993 $ 925,569 155.0 % $ 924,916 Equity Investments Automobiles & Components Sun Acquirer Corp. (6) Common Stock Common Equity 5,435 543 0.1 543 543 0.1 543 Capital Goods Envocore Holding, LLC (6) Preferred Stock 1,139,725 — — — — — — Commercial & Professional Services Allied Universal Holdings, LLC (6) Common Stock Class A 2,805,726 1,011 0.8 4,919 Allied Universal Holdings, LLC (6) Common Stock Class A 684,903 685 0.2 1,201 ASP MCS Acquisition Corp. (10) Common Stock 11,792 1,150 0.2 1,362 Battery Solutions, Inc. (6)(10) Preferred Stock Class E 5,417,655 3,669 0.2 1,201 Battery Solutions, Inc. (6)(10) Preferred Stock Class A 50,000 — — — Battery Solutions, Inc. (6)(10) Preferred Stock Class F 3,333,333 — — — Hercules Borrower LLC (6) Common Stock 1,153,075 1,153 0.2 1,126 IGT Holdings LLC (6) Preferred Stock 645,730 — — — IGT Holdings LLC (6) Common Stock 1,000,000 — — — MHS Acquisition Holdings, LLC (6) Preferred Stock 1,018 923 0.2 1,030 MHS Acquisition Holdings, LLC (6) Common Stock 10 9 — — Receivable Solutions, Inc. (6) Preferred Stock Class A 137,000 137 0.1 309 Service Logic Acquisition, Inc. (6) Common Stock 13,132 1,313 0.2 1,416 TecoStar Holdings, Inc. (6) Common Stock 500,000 500 0.1 460 10,550 2.2 13,024 See accompanying notes 18 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Everlast Parent Inc. (6) Common Stock 948 948 0.2 1,305 HGH Purchaser, Inc. (6) Common Stock Class A 4,171 417 0.1 770 Legalshield (6) Common Stock 372 372 0.1 663 Southern Technical Institute, Inc. (6)(10) Common Stock Common Equity 3,164,063 — 0.1 309 Southern Technical Institute, Inc. (6)(10) Common Stock Common Equity 6,000,000 — 1.4 8,135 Wrench Group LLC (6) Common Stock Common Equity 4,082 410 0.1 770 Wrench Group LLC (6) Common Stock Common Equity 1,143 115 0.0 216 2,262 2.0 12,168 Diversified Financials CBDC Senior Loan Fund LLC (17)(21)(22) Partnership Interest 40,000,000 40,000 6.8 40,207 GACP II LP (10)(17)(22)(23) Partnership Interest 13,763,514 13,665 2.3 13,437 WhiteHawk III Onshore Fund L.P. (5)(10)(17)(22)(23) Partnership Interest 4,835,531 4,939 0.8 4,919 58,604 9.9 58,563 Health Care Equipment & Services ACI Group Holdings, Inc. (6) Common Stock 907,499 909 0.1 800 ACI Group Holdings, Inc. (6) Preferred Stock 3,719 3,645 0.6 3,719 Centria Subsidiary Holdings, LLC (6) Common Stock 11,911 1,191 0.3 1,719 ExamWorks Group, Inc. (6) Common Stock 7,500 750 0.3 1,646 Hospice Care Buyer, Inc. (6) Common Stock 13,985 1,398 0.4 2,147 MDVIP, Inc. (6) Common Stock 46,807 648 0.4 2,117 NMN Holdings III Corp. (6) Common Stock 11,111 1,111 0.2 1,321 Patriot Acquisition Topco S.A.R.L (6)(17) Common Stock Class A 913 913 0.2 962 Patriot Acquisition Topco S.A.R.L (6)(17) Common Stock Class B 12,576 — 0.0 95.0 PT Network, LLC (6) Common Stock Class C 0.93 — — — Seniorlink Incorporated (6) Common Stock 68,182 518 0.2 1,098 11,083 2.7 15,624 Insurance Evolution BuyerCo, Inc. (6) Common Stock 2,917 292 0.0 292 Integrity Marketing Acquisition, LLC (6) Common Stock 539,693 648 0.3 2,075 Integrity Marketing Acquisition, LLC (6) Preferred Stock 1,247 1,215 0.3 1,631 Integro Parent, Inc. (6)(17) Common Stock 4,468 454 0.1 542 2,609 0.7 4,540 Materials Kestrel Parent, LLC (6) Common Stock Class A 41,791 209 0.0 286 See accompanying notes 19 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Pharmaceuticals, Biotechnology & Life Sciences Teal Acquisition Co., Inc (6) Common Stock 4,562 456 0.1 492 Retailing Palmetto Moon LLC (6) Common Stock 61 — 0.2 928 Slickdeals Holdings, LLC (6)(10) Common Stock 89 891 0.3 1,529 Vivid Seats Ltd. (6)(10) Common Stock 608,109 608 0.1 849 Vivid Seats Ltd. (6)(10) Preferred Stock 1,891,892 1,892 0.5 3,194 3,391 1.1 6,500 Software & Services Curvature (6)(24) Residual Interest 1,975,461 1,975 0.3 1,603 Park Place Technologies, LLC (6) Common Stock Class A2 479 479 0.1 479 Park Place Technologies, LLC (6) Common Stock Class W 685,018 — — — Park Place Technologies, LLC (6) Common Stock Class B2 442,203 27 0.0 27 Saturn Borrower Inc (6) Common Stock 434,163 434 0.1 444 2,915 0.5 2,553 Technology, Hardware & Equipment Onvoy, LLC (6) Common Stock Class A 3,649 365 0.1 464 Onvoy, LLC (6) Common Stock Class B 2,536 — 0.0 88 365 0.1 552 Transportation Xpress Global Systems, LLC (6) Common Stock 12,544 — — — Total Equity Investments United States $ 92,987 $ 19.4 % $ 114,845 Total United States $ 1,018,556 174.4 % $ 1,039,761 Canada Debt Investments Health Care Equipment & Services VetStrategy (6)(17) Unsecured Debt 1050 PIK (25) 11.50 % 03/2031 C$ 2,671 $ 2,040 0.4 $ 2,109 VetStrategy (6)(9)(17) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 1,716 1,253 0.2 1,382 VetStrategy (6)(9)(17) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 1,716 1,308 0.2 1,382 VetStrategy (6)(9)(17) Unitranche First Lien Delayed Draw Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 4,981 3,883 0.7 4,012 VetStrategy (6)(17) Unitranche First Lien Term Loan C + 700 (100 Floor) (26) 8.00 % 07/2027 9,199 6,688 1.2 7,410 VetStrategy (5)(6)(9)(17) Unitranche First Lien Delayed Draw Term Loan C + 575 (100 Floor) (26) 6.75 % 07/2027 5,071 3,799 0.7 4,144 25,354 18,971 3.4 20,439 Telecommunication Services Sandvine Corporation (17) Senior Secured Second Lien Term Loan L + 800 (7) 8.08 % 11/2026 $ 4,500 4,374 0.8 4,489 Total Debt Investments Canada $ 23,345 4.2 % $ 24,928 See accompanying notes 20 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 (6)(17) Common Stock 1,016,357 $ 776 0.3 $ 1,521 Total Equity Investments Canada 1,016,357 776 0.3 % 1,521 Total Canada $ 24,121 4.5 % $ 26,449 United Kingdom Debt Investments Commercial & Professional Services Crusoe Bidco Limited (6)(17) Unitranche First Lien Term Loan L + 625 (28) 6.30 % 12/2025 £ 6,067 $ 7,454 1.4 % $ 8,176 Crusoe Bidco Limited (5)(6)(17)(28) Unitranche First Lien Delayed Draw Term Loan 12/2025 — — — — Crusoe Bidco Limited (5)(6)(17)(28) Unitranche First Lien Delayed Draw Term Loan L + 625 (28) 6.30 % 12/2025 303 398 0.1 409 Nurture Landscapes (6)(17) Unitranche First Lien Term Loan S + 650 (34) 6.50 % 06/2028 1,416 1,940 0.3 1,851 Nurture Landscapes (6)(17) Unitranche First Lien Delayed Draw Term Loan S + 650 (34) 6.50 % 06/2028 392 519 0.1 512 8,178 10,311 1.9 10,948 Consumer Durables & Apparel Lion Cashmere Bidco Limited (6)(17) Unitranche First Lien Term Loan L + 600 (50 Floor) (28) 6.50 % 03/2028 $ 4,352 $ 4,241 0.7 $ 4,352 Lion Cashmere Bidco Limited (6)(17) Unitranche First Lien Term Loan L + 600 (50 Floor) (28) 6.50 % 03/2028 9,939 9,687 1.7 9,939 Lion Cashmere Bidco Limited (6)(17) Unitranche First Lien Term Loan L + 600 (50 Floor) (28) 6.50 % 03/2028 4,953 4,828 0.8 4,953 Lion Cashmere Bidco Limited (4)(5)(6)(17)(30) Unitranche First Lien Revolver L + 600 (50 Floor) (28) 6.50 % 03/2026 € 319 374 0.1 365 Lion Cashmere Bidco Limited (3)(5)(6)(17)(30) Unitranche First Lien Delayed Draw Term Loan 03/2028 — (85 ) — — 19,045 3.3 19,609 Software & Services Jordan Bidco, Ltd. (5)(6)(17) Unitranche First Lien Delayed Draw Term Loan 08/2028 £ — $ — — $ (113 ) Jordan Bidco, Ltd. (5)(6)(17) Senior Secured First Lien Revolver 02/2028 — — — (57 ) Jordan Bidco, Ltd. (6)(17) Unitranche First Lien Term Loan S + 650 (34) 6.50 % 08/2028 13,234 17,700 2.9 17,342 17,700 2.9 17,172 Total Debt Investments United Kingdom $ 47,056 8.1 % $ 47,729 Total United Kingdom $ 47,056 8.1 % $ 47,729 See accompanying notes 21 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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 Netherlands Debt Investments Pharmaceuticals, Biotechnology & Life Sciences PharComp Parent B.V. (5)(6)(17)(27) Unitranche First Lien Delayed Draw Term Loan E + 650 (31)(32) 6.50 % 02/2026 € 1,245 $ 1,417 0.2 % $ 1,442 PharComp Parent B.V. (6)(16)(17) Unitranche First Lien—Last Out Term Loan E + 650 (31) (32) 6.50 % 02/2026 6,910 7,676 1.3 8,004 8,155 9,093 1.5 9,446 Total Debt Investments Netherlands $ 9,093 1.5 % $ 9,446 Total Netherlands $ 9,093 1.5 % $ 9,446 Belgium Debt Investments Commercial & Professional Services Miraclon Corporation (6)(17) Unitranche First Lien Term Loan E + 625 (31) (32) 6.25 % 04/2026 € 9,507 10,519 1.8 11,013 Miraclon Corporation (6)(17) Unitranche First Lien Term Loan L + 625 (12) 6.46 % 04/2026 $ 4,162 4,072 0.7 4,162 14,591 2.5 15,175 Total Debt Investments Belgium $ 14,591 2.5 % $ 15,175 Equity Investments Commercial & Professional Services Miraclon Corporation (6)(17) Common Stock 921 1 — — Miraclon Corporation (6)(17) Preferred Stock 81,384 91 0.0 70 92 0.0 70 Total Equity Investments Belgium $ 92 0.0 % $ 70 Total Belgium $ 14,683 2.5 % $ 15,245 Total Investments $ 1,113,509 191.0 % $ 1,138,630 See accompanying notes 22 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (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”), EURIBOR (“E”), or SONIA (“S”) 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 Septemebr 30, 2021. 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. ** The total par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Canadian Dollar (“C$”), Euro (“€”), or Pound Sterling (“£”). *** Percentage is based on net assets of $596,152 as of September 30, 2021 (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 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. (4) Investment pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (5) 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”. (6) The fair value of the investment was determined using significant unobservable inputs. See Note 2 “Summary of Significant Accounting Policies”. (7) The interest rate on these loans is subject to the greater of a LIBOR floor or 1 month LIBOR plus a base rate. The 1 month LIBOR as of September 30, 2021 was 0.08%. For some of these loans, the interest rate is based on the last reset date. (8) The interest rate on these loans is subject to the greater of a LIBOR floor or 3 month LIBOR plus a base rate. The 3 month LIBOR as of September 30, 2021 was 0.13%. 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 September 30, 2021 was 0.16%. 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 September 30, 2021 was 0.11%. 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) The investment is on non-accrual status as of September 30, 2021. (16) 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. (17) 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 16.38% as of September 30, 2021. (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 September 30, 2021 was 0.24%. For some of these loans, the interest rate is based on the last reset date. (19) Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (20) The interest rate on these loans is subject to the U.S. Prime rate, which as of September 30, 2021 was 3.25%. (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) Residual interest in Curvature (Beijing) Technology Limited. (25) The interest rate on these loans is subject to the greater of a CDOR floor or 3 month CDOR plus a base rate. The 3 month CDOR as of September 30, 2021 was 0.45%. For some of these loans, the interest rate is based on the last reset date. (26) The interest rate on these loans is subject to the greater of a CDOR floor or 1 month CDOR plus a base rate. The 1 month CDOR as of September 30, 2021 was 0.43%. 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 September 30, 2021 was 0.08%. 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 September 30, 2021 was 0.17%. For some of these loans, the interest rate is based on the last reset date. (30) Investment pays 1.80% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities. (31) The interest rate on these loans is subject to the greater of a EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of September 30, 2021 was (0.55)%. For some of these loans, the interest rate is based on the last reset date. (32) For EURIBOR rate investments where negative rates can be prevalent, a 0% floor is presumed. (33) The interest rate on these loans is subject to the greater of a EURIBOR floor or 6 month EURIBOR plus a base rate. The 6 month EURIBOR as of September 30, 2021 was (0.53)%. For some of these loans, the interest rate is based on the last reset date. (34) The interest rate on these loans is subject to the Daily SONIA plus a base rate. The Daily SONIA as of June 30, 2021 was 0.05%. For some of these loans, the interest rate is based on the last reset date. See accompanying notes 23 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) September 30, 2021 (in thousands, except share and per share data) Foreign Currency Exchange Contracts Counterparty Currency Purchased Currency Sold Settlement Unrealized Appreciation (Depreciation) Wells Fargo Bank, N.A. USD 1,049 CAD 1,348 7/15/2025 $ (1 ) Wells Fargo Bank, N.A. USD 7,089 CAD 9,712 7/31/2025 (464 ) Wells Fargo Bank, N.A. USD 635 CAD 864 7/31/2025 (37 ) Wells Fargo Bank, N.A. USD 622 CAD 839 7/31/2025 (31 ) Wells Fargo Bank, N.A. USD 612 CAD 801 7/31/2025 (11 ) Wells Fargo Bank, N.A. USD 325 CAD 422 7/31/2025 (4 ) Wells Fargo Bank, N.A. USD 576 CAD 738 7/31/2025 — Wells Fargo Bank, N.A. USD 775 CAD 994 7/31/2025 1 Wells Fargo Bank, N.A. USD 789 CAD 1,005 7/31/2025 5 Wells Fargo Bank, N.A. USD 1,033 CAD 1,274 7/31/2025 39 Wells Fargo Bank, N.A. USD 193 CAD 244 7/31/2025 3 Wells Fargo Bank, N.A. USD 17 CAD 22 7/31/2025 — Wells Fargo Bank, N.A. USD 493 CAD 632 7/31/2025 1 Wells Fargo Bank, N.A. USD 933 CAD 1,192 7/31/2025 4 Wells Fargo Bank, N.A. USD 1,035 CAD 1,336 7/31/2025 (6 ) Wells Fargo Bank, N.A. USD 1,306 CAD 1,703 7/31/2025 (20 ) Wells Fargo Bank, N.A. USD 1,795 CAD 2,370 2/28/2031 11 Wells Fargo Bank, N.A. USD 8,603 EUR 6,703 2/20/2024 644 Wells Fargo Bank, N.A. USD 209 EUR 187 2/20/2024 (13 ) Wells Fargo Bank, N.A. USD 992 EUR 809 2/20/2024 31 Wells Fargo Bank, N.A. USD 308 EUR 249 2/20/2024 12 Wells Fargo Bank, N.A. USD 11,682 EUR 9,222 4/10/2024 710 Wells Fargo Bank, N.A. USD 7,975 GBP 5,885 12/1/2023 73 Wells Fargo Bank, N.A. USD 395 GBP 294 12/1/2023 — Wells Fargo Bank, N.A. USD 193 GBP 138 2/13/2025 8 Wells Fargo Bank, N.A. USD 191 GBP 138 2/13/2025 5 Wells Fargo Bank, N.A. USD 1,944 GBP 1,362 6/3/2026 91 Wells Fargo Bank, N.A. USD 170 GBP 121 6/3/2026 6 Wells Fargo Bank, N.A. USD 371 GBP 272 6/3/2026 1 Wells Fargo Bank, N.A. USD 17,790 GBP 12,870 8/24/2026 270 Total Foreign Currency Exchange Contracts $ 1,328 CAD Canadian Dollar EUR Euro GBP Great British Pound PIK Payment In-Kind USD United States Dollar See accompanying notes 24 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 See accompanying notes 25 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 ) — — See accompanying notes 26 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 ) — — See accompanying notes 27 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 See accompanying notes 28 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 See accompanying notes 29 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 ) — — See accompanying notes 30 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 ) — — See accompanying notes 31 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 1300 (11) 13.00 % 03/2022 7,945 7,907 1.4 7,859 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 See accompanying notes 32 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 ) 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 See accompanying notes 33 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 ) — — See accompanying notes 34 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 (1007 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 See accompanying notes 35 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 See accompanying notes 36 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 See accompanying notes 37 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 See accompanying notes 38 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 GACP II LP (10) (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 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 See accompanying notes 39 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 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 See accompanying notes 40 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 See accompanying notes 41 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) 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 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 * 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. ** The total par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Canadian Dollar (“C$”), Euro (“€”), or Pound Sterling (“£”). *** 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. (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. See accompanying notes 42 Table of Contents CRESCENT CAPITAL BDC, INC. Consolidated Schedule of Investments (Unaudited) December 31, 2020 (in thousands, except share and per share data) Foreign Currency Exchange Contracts Counterparty Currency Purchased Currency Sold Settlement Unrealized Appreciation/ (Depreciation) Wells Fargo Bank, N.A. USD 7,089 CAD 9,712 7/31/2025 $ (12 ) Wells Fargo Bank, N.A. USD 612 CAD 801 7/31/2025 (485 ) Wells Fargo Bank, N.A. USD 325 CAD 422 7/31/2025 (4 ) Wells Fargo Bank, N.A. USD 622 CAD 839 7/31/2025 (32 ) Wells Fargo Bank, N.A. USD 635 CAD 864 7/31/2025 (39 ) Wells Fargo Bank, N.A. USD 209 EUR 187 2/20/2024 (26 ) Wells Fargo Bank, N.A. USD 8,063 EUR 6,703 2/20/2024 183 Wells Fargo Bank, N.A. USD 11,682 EUR 9,222 4/10/2024 81 Wells Fargo Bank, N.A. USD 7,975 GBP 5,885 12/1/2023 (125 ) Wells Fargo Bank, N.A. USD 395 GBP 294 12/1/2023 (10 ) Wells Fargo Bank, N.A. USD 4,317 GBP 3,239 2/13/2025 (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 43 Table of Contents CRESCENT CAPITAL BDC, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share amounts) September 30, 2021 (Unaudited) Note 1. Organization and Basis of Presentation Crescent Capital BDC, Inc. (the “Company”) was formed on February 5, 2015 (“Inception”) as a Delaware corporation structured as an externally managed, closed-end management investment company. The Company commenced investment operations on June 26, 2015. On January 30, 2020, the Company changed its state of incorporation from the State of Delaware to the State of Maryland. The Company has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and currently operates as a diversified investment company. In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. The Company’s 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 invests primarily in secured debt (including first lien, unitranche first lien and second lien debt) and unsecured debt (including mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. 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 expenses 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. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent Capital Group LP (“Crescent”), the majority member of the Adviser (the “Sun Life Transaction”). Consummation of the Sun Life Transaction resulted in a change of control of Crescent. Basis of Presentation The Company’s functional currency is the United States dollar and these consolidated financial statements have been prepared in that currency. The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to Regulation S-X. The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies. The accompanying interim consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited interim financial results included herein contain all adjustments and reclassifications that are necessary for the fair presentation of consolidated financial statements for the periods included herein. All significant intercompany balances and transactions have been eliminated. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2021. 44 Table of Contents 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 and cash collateral held at Wells Fargo Bank N.A. related to the Company’s credit facility and foreign currency forward contracts. 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. 45 Table of Contents • 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 from 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 enter 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 on a gross basis, not taking into account collateral posted which is recorded separately, if applicable. All foreign currency forward contracts are currently held with a single counterparty. Notional amounts and the gross fair value of foreign currency forward contract assets and liabilities are presented separately on the Consolidated Schedules of Investments. Purchases and sales of foreign currency forward contracts having the same notional value, settlement date and counterparty are generally settled net (which results in a net foreign currency position of zero with the counterparty) and any realized gains or losses are recognized on the settlement date. 46 Table of Contents 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. Debt Issuance Costs The Company records costs related to the issuance of debt obligations as deferred financing costs. These costs are amortized over the life of the related debt instrument using the straight-line method or the effective yield method, depending on the type of debt instrument. As of September 30, 2021 and December 31, 2020, there were $4,830 and $4,600, respectively, of deferred financing costs netted against debt balances on the Company’s Consolidated Statements of Assets and Liabilities. Equity Offering Expenses The Company records expenses related to registration statement filings and applicable offering costs as deferred offering costs. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of paid-in-capital upon each such offering. 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 are accreted or amortized into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Each distribution received from an equity investment is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments as dividend income unless there is sufficient current or accumulated earnings prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. Certain investments have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or cost basis of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2021, the Company had two portfolio companies with three investment positions on non-accrual status, which represented 1.5% and 1.1% of the total debt investments at cost and fair value, respectively. 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. Other Income Other income may include income such as consent, waiver, amendment, agency, underwriting and arranger fees associated with the Company’s investment activities. Such fees are recognized as income when earned or the services are rendered. 47 Table of Contents Income Taxes The Company has elected to be treated as a BDC under the 1940 Act. The Company also has elected to be treated as a RIC under the Internal Revenue Code. So long as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company. The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC 740 — Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of September 30, 2021, 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 three and nine months ended September 30, 2021, the Company expensed an excise tax of $170 and $431, respectively, of which $480 remained payable. For the three and nine months ended September 30, 2020 the Company expensed an excise tax of $116 and $458, respectively, of which $294 remained payable. CBDC Universal Equity, Inc., a wholly-owned subsidiary of the Company, 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 three and nine months ended September 30, 2021, the Company recognized a benefit/(provision) for taxes of $(392) and $(332), respectively, on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiary. For the three and nine months ended September 30, 2020, the Company recognized a benefit/(provision) for taxes of $(161) and $101, respectively, on unrealized appreciation/(depreciation) on investments and net operating losses and federal tax credits related to the Taxable Subsidiary. As of September 30, 2021 and December 31, 2020, $54 and $630, respectively, was included in deferred tax assets on the Consolidated Statements of Assets and Liabilities relating to net operating loss carryforwards and unrealized losses on investments and other temporary book to tax differences that are expected to be used in future periods. As of September 30, 2021 and December 31, 2020, $1,079 and $1,324, respectively, was included in deferred tax liabilities on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments held in the Company’s corporate subsidiary and other temporary book to tax differences of the corporate subsidiary. For the three and nine months ended September 30, 2021, the Company recognized an income tax expense of $0 and $972 related to allocated taxable income. For the three and nine months ended September 30, 2021, the Company recognized a benefit/(provision) of $2 and $(370) related to realized gains on investments. For the three and nine months ended September 30, 2020, the Company recognized no income tax expense or provision on realized gains. 48 Table of Contents 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. 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” and in January 2021, the FASB issued Accounting Standards Update 2021-01 (“ASU 2021-01”) “Reference Rate Reform (Topic 848): Scope. 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 and 2021-01 are 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. Note 3. Agreements and Related Party Transactions Administration Agreement On June 2, 2015, the Company entered into the administration agreement with the Administrator, as amended and restated on February 1, 2020. Under the terms of (the “Administration Agreement”), the Administrator provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Administrator under the terms of the Administration Agreement. In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to the Administrator. The Administration Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party. For the three and nine months ended September 30, 2021, the Company incurred administrative services expenses of $257 and $771, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations. For the three and nine months ended September 30, 2020, the Company incurred administrative expenses of $204 and $615, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations. In addition to administrative services expenses, the payable balances may include other operating expenses paid by the Administrator on behalf of the Company. As of September 30, 2021 and December 31, 2020, $441 and $321, respectively, was payable to the Administrator. 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 accounting professionals, legal counsel, and compliance 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. Investment Advisory Agreement On June 2, 2015, the Company entered into an investment advisory agreement with the Adviser, which was subsequently amended and restated (the “Investment Advisory Agreement”) and approved by the Company’s stockholders on January 29, 2020 in connection with the Alcentra Acquisition. Subsequently on December 17, 2020 in connection with the Sun Life Transaction, the Investment Advisory Agreement was re-approved by the Company’s stockholders. Under the terms of the Investment Advisory Agreement, the Adviser provides investment advisory services to the Company and its portfolio investments. The Adviser’s services under the 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. 49 Table of Contents Base Management Fee Effective February 1, 2020, pursuant to the 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, cash equivalents and restricted cash. 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. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper maturing within one year of purchase. Under the terms of the Investment 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 has also voluntarily waived its right to receive management fees on the Company’s investments in GACP II LP and WhiteHawk III Onshore Fund LP for any period in which these investments remain in the investment portfolio. Prior to February 1, 2020, 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 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 during the period prior to February 3, 2020, the date of the Company’s qualified initial public offering. For the three and nine months ended September 30, 2021, the Company incurred management fees of $3,055 and $6,986 respectively, which are net of waived amounts of $476 and $3,096, respectively. For the three and nine months ended September 30, 2020, the Company incurred management fees of $1,746 and $4,900, respectively, which are net of waived amounts of $1,163 and $3,427, respectively. As of September 30, 2021 and December 31, 2020, $3,055 and $1,867 of management fees, respectively, remained payable. Incentive Fee per Investment Advisory Agreement Under the 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% (1.50% prior to February 1, 2020) per quarter (7.0% annualized or 6.0% annualized prior to February 1, 2020) (the “Hurdle”), and a catch-up feature until the Adviser has received 17.5% (15.0% prior to February 1, 2020), of the pre-incentive fee net investment income for the current quarter up to 2.1212% (1.7647% prior to February 1, 2020) (the “Catch-up”), and (b) 17.5% (15.0% prior to February 1, 2020) of all remaining pre-incentive fee net investment income above the “Catch-up.” 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% (15.0% prior to February 1, 2020) of the Company’s realized capital gains, if any, on a cumulative basis from the Company’s 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. In the event that the 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. Under the terms of the Investment Advisory Agreement, the Adviser agreed to waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021. The income and capital gains incentive fees were previously waived from April 1, 2018 through February 1, 2020. Additionally, On February 22, 2021, the Adviser notified the Board of Directors of its intent to voluntarily waive income incentive fees to the extent net investment income falls short of the declared dividend on a full dollar basis. The waiver is effective from July 31, 2021 through December 31, 2022. The Adviser has also voluntarily waived its right to receive the income incentive fees attributable to the investment income accrued by the Company as a result of its investments in GACP II and WhiteHawk III Onshore Fund LP. 50 Table of Contents Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during each calendar quarter, minus operating expenses for such quarter (including the base management fee , expenses payable under the Administration Agreement and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, original issue discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income will be compared to a “Hurdle Amount” equal to the product of (i) the Hurdle rate of 1.50% or 1.75% per quarter, 6.0% or 7.0% annualized, prior to and effective February 1, 2020, respectively, and (ii) our net assets (defined as total assets less indebtedness, before taking into account any incentive fees payable during the period), at the end of the immediately preceding calendar quarter, subject to a “catch-up” provision incurred at the end of each calendar quarter. For the three and nine months ended September 30, 2021, the Company incurred income incentive fees of $1,732 and $1,732, which are net of waived amounts, of $931 and $5,796 respectively, of which $1,732 was payable at September 30, 2021. For the three and nine months ended September 30, 2020, the Company incurred income incentive fees of $0, which are net of waived amounts of $2,136 and $6,335, respectively, of which $0 was payable at September 30, 2020. 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 Investment Advisory Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then the Company records a capital gains incentive fee equal to 15% (prior to February 3, 2020) or 17.5% (effective February 3, 2020) of such amount, minus the aggregate amount of actual incentive fees based on capital gains paid in all prior periods. If such amount is negative, then there is no accrual for such period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three and nine months ended September 30, 2021, the Company recorded capital gains incentive fees on unrealized capital appreciation of $757 and $6,150, respectively, of which $6,150 was accrued and unpaid at September 30, 2021. For the three and nine months ended September 30, 2020, the Company recorded no incentive fee on cumulative unrealized capital appreciation. Other Related Party Transactions From time to time, the Administrator may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Administrator for such amounts paid on its behalf. Amounts payable to the Administrator are settled in the normal course of business without formal payment terms. In conjunction with the closing of Alcentra Capital merger, the Company and the Adviser executed a Transaction Support Agreement, as described in Note 13. A portion of the outstanding shares of the Company’s common stock is owned by Crescent. At September 30, 2021 and December 31, 2020, Crescent and other related parties owned 2.28% and 2.11%, respectively, of the outstanding common shares of the Company. 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. Sun Life is the sole lender of the Company’s 2023 Unsecured Notes and a $10,000 participating lender in the Company’s 2026 Unsecured Notes, both described further in Note 6. 51 Table of Contents Investments in and affiliated and controlled companies 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 and the summary tables below. The Company’s investments in non-controlled affiliates for the nine months ended September 30, 2021 were as follows (in thousands): Fair Value as of December 31, 2020 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2021 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates ASP MCS Acquisition $ 1,793 $ 2 $ (2) $ — $ (142 ) $ 1,651 $ 18 Battery Solutions, Inc. 3,565 499 — — (1,209 ) 2,855 165 Conisus, LLC 22,865 1,026 (38,628 ) 27,441 (12,704 ) — 1,026 GACP II, LP (1) 16,154 — (2,563 ) — (154 ) 13,437 1,093 Slickdeals Holdings, LLC 16,010 61 (282 ) 72 126 15,987 863 Southern Technical Institute, Inc. 7,253 — — — 1,191 8,444 1,041 Vivid Seats Ltd. 3,714 — — — 329 4,043 — WhiteHawk III Onshore Fund L.P. — 4,939 — — (20 ) 4,919 — Total Non-Controlled Affiliates $ 71,354 $ 6,527 $ (41,475 ) $ 27,513 $ (12,583 ) $ 51,336 $ 4,206 The Company’s investments in non-controlled affiliates for the nine months ended September 30, 2020 were as follows (in thousands): Fair Value as of December 31, 2019 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2020 Dividend, Interest, PIK and Other Income Non-Controlled Affiliates APC Auto Technology Intermediate, LLC $ 928 $ — $ — $ (1,847 ) $ 919 $ — $ — Battery Solutions, Inc. — 4,907 — — (1,361 ) 3,546 129 Conisus, LLC — 9,681 — — 11,095 20,776 953 GACP II, LP (1) 18,564 2,465 (822 ) — (496 ) 19,711 1,940 Slickdeals Holdings, LLC 15,933 62 (311 ) 50 213 15,947 897 Southern Technical Institute, Inc. — — (1,271 ) 1,271 3,753 3,753 — Vivid Seats Ltd. 3,646 — — — (37 ) 3,609 — Xpress Global Systems, LLC — — — — — — — Total Non-Controlled Affiliates $ 39,071 $ 17,115 $ (2,404 ) $ (526 ) $ 14,086 $ 67,342 $ 3,919 (1) Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. The Company’s investment in GACP II, LP and the related income generated by it were reclassified from non-controlled non-affiliated to non-controlled affiliated investment for the prior periods presented in the consolidated financial statements. (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. 52 Table of Contents The Company’s investments in controlled affiliates for the nine months ended September 30, 2021 were as follows (in thousands): Fair Value as of December 31, 2020 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2021 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ 38,735 $ — $ — $ — $ 1,472 $ 40,207 $ 2,100 The Company’s investments in controlled affiliates for the nine months ended September 30, 2020 were as follows (in thousands): Fair Value as of December 31, 2019 Gross Additions (2) Gross Reductions (3) Net Realized Gains/ (Losses) Change in Unrealized Gains/ (Losses) Fair Value as of September 30, 2020 Dividend, Interest, PIK and Other Income Controlled Affiliates CBDC Senior Loan Fund LLC (1) $ 34,442 $ 6,000 $ (1,000 ) $ — $ (5,513 ) $ 33,929 $ 1,500 (1) Together with Masterland Enterprise Holdings, Ltd. (“Masterland”, and collectively with the Company, the “Members”), the Company invests through the Senior Loan Fund. The Senior Loan Fund is not an extension of the Company’s investment operations given shared power/voting rights exist with Masterland, Additionally, the Company’s investment strategy focuses on middle market lending in senior secured first lien, second lien and equity investments, while the Senior Loan Fund focuses on senior secured broadly syndicated loans. 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” for further detail. (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. Note 4. 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. 53 Table of Contents Investments at fair value consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Investment Type Cost Fair Value Unrealized Appreciation/ (Depreciation) Cost Fair Value Unrealized Appreciation/ (Depreciation) Senior Secured First Lien $ 357,295 $ 349,942 $ (7,353 ) $ 380,909 $ 373,633 $ (7,276 ) Unitranche First Lien 585,785 596,987 11,202 408,177 413,543 5,366 Unitranche First Lien - Last Out 15,690 13,511 (2,179 ) 15,668 14,917 (751 ) Senior Secured Second Lien 55,492 56,375 883 105,056 104,656 (400 ) Unsecured Debt 5,392 5,379 (13 ) 3,112 3,032 (80 ) Equity & Other 35,251 57,873 22,622 41,974 69,331 27,357 LLC/LP Equity Interests 58,604 58,563 (41 ) 56,228 54,889 (1,339 ) Total investments $ 1,113,509 $ 1,138,630 $ 25,121 $ 1,011,124 $ 1,034,001 $ 22,877 The industry composition of investments at fair value at September 30, 2021 and December 31, 2020 is as follows (in thousands): Industry Fair Value September 30, 2021 Percentage of Fair Value Fair Value December 31, 2020 Percentage of Fair Value Health Care Equipment & Services $ 358,451 31.49 % $ 269,614 26.08 % Software & Services 213,296 18.74 134,374 13.00 Commercial & Professional Services 194,072 17.05 207,151 20.03 Consumer Services 73,895 6.49 123,704 11.96 Diversified Financials 58,563 5.14 65,128 6.30 Insurance 45,345 3.98 38,018 3.68 Retailing 41,207 3.62 23,537 2.28 Automobiles & Components 33,849 2.97 7,257 0.70 Consumer Durables & Apparel 22,751 2.00 22,865 2.21 Pharmaceuticals, Biotechnology & Life Sciences 22,675 1.99 23,449 2.27 Capital Goods 18,142 1.59 18,643 1.80 Energy 15,996 1.40 18,220 1.76 Food, Beverage & Tobacco 9,618 0.84 4,253 0.41 Transportation 8,070 0.71 6,912 0.67 Materials 6,907 0.61 4,666 0.45 Food & Staples Retailing 4,798 0.42 18,776 1.82 Household & Personal Products 4,495 0.39 3,223 0.31 Telecommunication Services 4,489 0.39 4,062 0.39 Technology, Hardware & Equipment 2,011 0.18 2,995 0.29 Media & Entertainment — — 37,154 3.59 Total investments $ 1,138,630 100.00 % $ 1,034,001 100.00 % 54 Table of Contents The geographic composition of investments at fair value at September 30, 2021 and December 31, 2020 is as follows (in thousands): Geographic Region Fair Value September 30, 2021 Percentage of Fair Value Fair Value December 31, 2020 Percentage of Fair Value United States $ 1,039,761 91.32 % $ 971,838 93.99 % United Kingdom 47,729 4.19 23,960 2.32 Canada 26,449 2.32 15,208 1.47 Belgium 15,245 1.34 14,312 1.38 Netherlands 9,446 0.83 8,683 0.84 Total investments $ 1,138,630 100.00 % $ 1,034,001 100.00 % Note 5. Fair Value of Financial Instruments Investments The following table presents fair value measurements of investments as of September 30, 2021 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Total Senior Secured First Lien $ — $ 67,188 $ 282,753 $ 349,941 Unitranche First Lien — 18,865 578,125 596,990 Unitranche First Lien – Last Out — — 13,511 13,511 Senior Secured Second Lien — 6,691 49,684 56,375 Unsecured Debt — — 5,379 5,379 Equity & Other — — 57,872 57,872 Subtotal $ — $ 92,744 $ 987,324 $ 1,080,068 Investments Measured at NAV (1) 58,562 Total Investments $ 1,138,630 Foreign Currency Forward Contracts $ — $ 1,328 $ — $ 1,328 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 ) (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. 55 Table of Contents The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2021, based off of the fair value hierarchy at September 30, 2021 (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, 2021 $ 339,898 $ 413,543 $ 14,917 $ 104,656 $ 3,032 $ 67,831 $ 943,877 Amortized discounts/premiums 5,612 2,448 22 1,000 14 3 9,099 Paid in-kind interest 890 - - - 455 1,026 2,371 Net realized gain (loss) (11 ) 298 - 1 (104 ) 32,330 32,514 Net change in unrealized appreciation (depreciation) (3,341 ) 5,813 (1,428 ) 653 68 (4,741 ) (2,976 ) Purchases 61,363 250,625 - - 2,257 7,334 321,579 Sales/return of capital/principal repayments/paydowns (120,744 ) (76,455 ) - (48,791 ) (343 ) (47,412 ) (293,745 ) Transfers in 6,092 - - - - 1,501 7,593 Transfers out (7,006 ) (18,147 ) - (7,835 ) - - (32,988 ) Balance as of September 30, 2021 $ 282,753 $ 578,125 $ 13,511 $ 49,684 $ 5,379 $ 57,872 $ 987,324 Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021 $ (899 ) $ 6,120 $ (1,429 ) $ 636 $ 68 $ 8,581 $ 13,078 During the nine months ended September 30, 2021, the Company recorded $32,988 in transfers from Level 3 to Level 2 due to an increase in observable inputs in market data and $7,593 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 nine months ended September 30, 2020, based off of the fair value hierarchy at September 30, 2020 (in thousands): Senior Secured First Lien Unitranche First Lien Unitranche First - Last Out 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 1,222 1,067 28 215 114 8 2,654 Paid in-kind interest 717 461 - 2 77 474 1,731 Net realized gain (loss) (334 ) - - - - (718 ) (1,052 ) Net change in unrealized appreciation (depreciation) (7,190 ) (4,617 ) (845 ) (4,671 ) (99 ) 16,705 (717 ) Purchases 121,290 173,918 - 49,381 1,252 15,832 361,673 Sales/return of capital/principal repayments/paydowns (56,113 ) (27,271 ) (213 ) (8,815 ) (6,543 ) (150 ) (99,105 ) Transfers in 6,441 - - 9,318 - - 15,759 Transfers out - - - - - - - Balance as of September 30, 2020 $ 334,226 $ 361,974 $ 15,014 $ 94,999 $ 2,215 $ 53,583 $ 862,011 Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2020 $ (6,161 ) $ (4,703 ) $ (845 ) $ (3,889 ) $ 18 $ 1,688 $ (13,892 ) During the nine months ended September 30, 2020, the Company recorded $0 in transfers from Level 3 to Level 2 and $15,759 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. The following tables present the fair value of Level 3 investments and the ranges of significant unobservable inputs used to value the Company’s Level 3 investments as of September 30, 2021 and December 31, 2020. 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. 56 Table of Contents Security Type Fair Value as of September 30, 2021 (in thousands) Valuation Technique Unobservable Input Range (Weighted Average) Senior Secured First Lien $ 201,403 Discounted Cash Flows Discount Rate 5.3%-25.4% (8.0%) 18,622 Enterprise Value Comparable EBITDA Multiple 4.3x-8.4x (5.6x) 62,728 Broker Quoted Broker Quote N/A $ 282,753 Unitranche First Lien $ 545,002 Discounted Cash Flows Discount Rate 5.0%-13.2% (7.2%) 6,201 Enterprise Value Comparable EBITDA Multiple 9.3x-9.3x (9.3x) 1,195 Collateral Analysis Recovery Rate 100.0% 25,727 Broker Quoted Broker Quote N/A $ 578,125 Unitranche First Lien - Last Out $ 8,004 Discounted Cash Flows Discount Rate 6.2%-6.2% (6.2%) 5,507 Collateral Analysis Recovery Rate 68.2% $ 13,511 Senior Secured Second Lien $ 41,792 Discounted Cash Flows Discount Rate 7.8%-11.5% (9.0%) 7,892 Broker Quoted Broker Quote N/A $ 49,684 Unsecured Debt $ 5,379 Discounted Cash Flows Discount Rate 11.5%-17.9% (13.9%) Equity & Other $ 56,510 Enterprise Value Comparable EBITDA Multiple 2.5x-28.1x (12.5x) 1,362 Broker Quoted Broker Quote N/A $ 57,872 Total $ 987,324 57 Table of Contents Security Type 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 $ 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 $ 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% $ 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 $ 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 $ 67,831 Total $ 943,877 As noted above, the discounted cash flows and market multiple approaches were used in the determination of fair value of certain Level 3 assets as of September 30, 2021 and December 31, 2020. 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. 58 Table of Contents Note 6. Debt Debt consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 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 $ 276,747 $ 73,253 $ 276,747 $ 263,642 2.42 % Corporate Revolving Facility 200,000 100,154 99,846 100,154 101,629 3.00 % 2023 Unsecured Notes 50,000 50,000 — 50,000 50,000 6.50 % 2026 Unsecured Notes 135,000 135,000 — 135,000 87,784 4.21 % InterNotes ® — — — — 4,017 — % Total Debt $ 735,000 $ 561,901 $ 173,099 $ 561,901 $ 507,072 3.32 % 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 % 2023 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 % (1) The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments. (2) The amount presented excludes netting of deferred financing costs. As of September 30, 2021 and December 31, 2020, the carrying amount of the Company’s outstanding debt approximated fair value. The fair values of the Company’s debt are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s debt is estimated based upon market interest rates and entities with similar credit risk. As of September 30, 2021 and December 31, 2020, the debt would be deemed to be Level 3 of the fair value hierarchy. As of September 30, 2021 and December 31, 2020, 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 from time to time (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. 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) June 22, 2026 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 2.10% 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 unused facility fee rate may vary based on the utilization. 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. 59 Table of Contents Costs incurred in connection with obtaining the SPV Asset Facility were recorded as deferred financing costs and are being amortized over the life of the SPV Asset Facility on an effective yield basis. As of September 30, 2021 and December 31, 2020, deferred financing costs related to the SPV Asset Facility were $2,871 and $2,540, respectively, and were netted against debt outstanding 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, 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% 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. The unused facility fee rate may vary based on the utilization. Interest is payable quarterly in arrears. Any amounts borrowed under the Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on August 20, 2024. Costs incurred in connection with obtaining the Corporate Revolving Facility have been recorded as deferred financing costs and are being amortized over the life of the Corporate Revolving Facility on an effective yield basis. As of September 30, 2021 and December 31, 2020, deferred financing costs related to the Corporate Revolving Facility were $206 and $1,360, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities. 2023 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 “2023 Unsecured Notes”). The 2023 Unsecured Notes were issued in two $25,000 issuances on July 30, 2020 and October 28, 2020. The 2023 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 2023 Unsecured Notes is due and payable semiannually in arrears on January 30 th and July 30 th of each year. As of September 30, 2021, the Company was in compliance with the terms of the note purchase agreement governing the 2023 Unsecured Notes. Costs incurred in connection with issuing the 2023 Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the 2023 Unsecured Notes on an effective yield basis. As of September 30, 2021 and December 31, 2020, deferred financing costs related to the 2023 Unsecured Notes were $498 and $700, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities. 2026 Unsecured Notes 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 initial issuance of $50,000 of 2026 Unsecured Notes closed February 17, 2021. The issuance of the remaining $85,000 of 2026 Unsecured Notes closed on May 5, 2021. The 2026 Unsecured Notes will mature on February 17, 2026 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 2026 Unsecured Notes is due and payable semiannually in arrears on February 17 th and August 17 th of each year. As of September 30, 2021, the Company was in compliance with the terms of the note purchase agreement governing the 2026 Unsecured Notes. Costs incurred in connection with issuing the 2026 Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the 2026 Unsecured Notes on an effective yield basis. As of September 30, 2021 and December 31, 2020, deferred financing costs related to the 2026 Unsecured Notes were $1,253 and $0, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities. 60 Table of Contents InterNotes ® On January 31, 2020, in connection with the Alcentra Acquisition, the Company assumed direct unsecured fixed interest rate obligations or “InterNotes ® ”. The InterNotes ® bore interest at fixed interest rates ranging between 6.25% and 6.75% and offered a variety of maturities ranging between February 15, 2021 and April 15, 2022. The Company redeemed or paid down the remaining $16,418 of InterNotes ® during the first quarter of 2021. Summary of Interest and Credit Facility Expenses The summary information regarding the SPV Asset Facility, Corporate Revolving Facility, 2023 Unsecured Notes, 2026 Unsecured Notes, and InterNotes ® , for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Borrowing interest expense $ 4,172 $ 2,913 $ 11,707 $ 9,942 Unused facility fees 334 221 819 557 Amortization of financing costs 1,189 370 1,956 985 Total interest and other debt financing costs $ 5,695 $ 3,504 $ 14,482 $ 11,484 Weighted average outstanding balance $ 507,072 $ 410,892 $ 529,842 $ 405,912 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 under restricted cash and cash equivalents on the Consolidated Statement of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $210 and $0, respectively, has been pledged to cover obligations of the Company. 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. During the nine months ended September 30, 2021 and 2020 the Company’s average USD notional exposure to foreign currency forward contracts was $70,100 and $34,052, respectively. 61 Table of Contents The following table sets forth the Company’s net exposure to foreign currency forward contracts that are subject to ISDA Master Agreements or similar agreements as of September 30, 2021 and December 31, 2020. As of September 30, 2021 (in thousands): Counterparty Gross Amount of Assets on the Consolidated Statements of Assets and Liabilities Gross Amount of (Liabilities) on the Consolidated Statements of Assets and Liabilities Net Amount of Assets or (Liabilities) Presented on the Consolidated Statements of Assets and Liabilities Collateral (Received) Pledged (1) Net Amounts (2) Wells Fargo Bank, N.A. $ 1,915 $ (587 ) $ 1,328 $ 210 $ — 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 ) (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 three and nine months ended September 30, 2021 and 2020, was as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Net realized gain (loss) on foreign currency forward contracts $ (56 ) $ — $ (193 ) $ — Net change in unrealized appreciation (depreciation) on foreign currency forward contracts 1,523 (1,349 ) 1,959 623 Total net realized and unrealized gains (losses) on foreign currency forward contracts $ 1,467 $ (1,349 ) $ 1,766 $ 623 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, the total commitment amount does not necessarily represent future cash requirements. As of September 30, 2021 and December 31, 2020, the Company had aggregated unfunded commitments totaling $166,320 and $80,837 including foreign denominated commitments converted to USD at the balance sheet date, respectively, under loan and financing agreements. 62 Table of Contents As of September 30, 2021 and December 31, 2020, the Company has the following unfunded commitments to portfolio companies (in thousands): September 30, 2021 December 31, 2020 Company Investment Type Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Abode Healthcare, Inc. Revolver — $ — 8/25/2025 $ 1,150 ACI Group Holdings, Inc. Delayed Draw Term Loan 8/2/2023 2,583 — — ACI Group Holdings, Inc. Revolver 8/2/2027 738 — — Affinitiv, Inc. Revolver 8/26/2024 567 8/26/2024 567 Ameda, Inc. Revolver 9/29/2022 113 9/29/2022 113 Anne Arundel Dermatology Management, LLC Revolver 10/16/2025 440 10/16/2022 1,159 Anne Arundel Dermatology Management, LLC Delayed Draw Term Loan 10/16/2022 353 10/16/2025 550 Apps Associates LLC Delayed Draw Term Loan 7/2/2023 1,800 — — Apps Associates LLC Revolver 7/2/2027 800 — — Auto-Vehicle Parts, LLC Revolver 1/3/2023 600 1/3/2023 600 Avaap USA LLC Revolver — — 3/22/2023 650 Banker’s Toolbox, Inc. Delayed Draw Term Loan 7/27/2023 6,711 — — Banker’s Toolbox, Inc. Revolver 7/27/2027 2,406 — — Belay Inc. Revolver 11/15/2025 650 — — Benesys, Inc. Revolver 10/5/2024 150 10/5/2024 150 C-4 Analytics, LLC Revolver 8/22/2023 600 8/22/2023 600 CAT Buyer, LLC Revolver 4/11/2024 550 4/11/2024 550 Centria Subsidiary Holdings, LLC Revolver 12/9/2025 1,974 12/9/2025 1,816 Claritas, LLC Revolver 12/21/2023 278 12/21/2023 188 Colibri Group LLC Revolver — — 5/1/2025 1,000 Consolidated Label Co., LLC Revolver 7/15/2026 650 7/15/2026 650 Continental Battery Company Delayed Draw Term Loan 1/20/2023 2,679 12/14/2022 567 CRA MSO, LLC Revolver 12/17/2023 140 12/17/2023 120 Crusoe Bidco Limited Delayed Draw Term Loan 12/10/2022 530 12/5/2020 538 Crusoe Bidco Limited Delayed Draw Term Loan 12/10/2022 167 12/10/2025 169 EiKo Global, LLC Revolver 6/1/2023 750 6/1/2023 750 Empire Auto Parts, LLC Revolver 9/5/2023 400 9/5/2023 400 Everlast Parent Inc. Revolver 10/30/2026 1,611 10/30/2022 3,412 Everlast Parent Inc. Delayed Draw Term Loan 10/30/2022 3,412 10/30/2026 1,611 Evolution BuyerCo, Inc. Revolver 4/30/2027 729 — — Evolution BuyerCo, Inc. Delayed Draw Term Loan 4/30/2023 1,458 — — GH Parent Holdings Inc. Revolver 5/4/2027 1,875 — — GH Parent Holdings Inc. Delayed Draw Term Loan 5/4/2023 5,542 — — Granicus, Inc. Revolver 1/29/2027 805 — — Granicus, Inc. Delayed Draw Term Loan — — — — Granicus, Inc. Delayed Draw Term Loan 4/23/2023 3,135 — — GrapeTree Medical Staffing, LLC Revolver 10/19/2022 450 10/19/2022 450 Great Lakes Dental Partners, LLC Delayed Draw Term Loan 6/23/2023 850 — — Great Lakes Dental Partners, LLC Revolver 6/23/2026 400 — — HCOS Group Intermediate III LLC Revolver 9/30/2026 900 9/30/2026 900 Hepaco, LLC Revolver 8/18/2024 152 8/18/2023 92 63 Table of Contents September 30, 2021 December 31, 2020 Company Investment Type Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Hepaco, LLC Delayed Draw Term Loan — — 8/18/2024 112 Hercules Borrower LLC Revolver 12/15/2026 2,222 12/15/2026 2,222 Hercules Borrower LLC Delayed Draw Term Loan 9/10/2023 2,252 — — HGH Purchaser, Inc. Delayed Draw Term Loan 2/10/2023 2,389 — — HGH Purchaser, Inc. Delayed Draw Term Loan — — 11/1/2021 557 HGH Purchaser, Inc. Revolver 11/3/2025 1,014 11/3/2025 912 Homecare Partners Management, LLC Revolver 5/25/2027 1,100 — — Homecare Partners Management, LLC Delayed Draw Term Loan 5/25/2023 1,564 — — Hospice Care Buyer, Inc. Revolver 12/9/2026 1,039 6/9/2021 2,679 Hospice Care Buyer, Inc. Delayed Draw Term Loan 8/11/2022 1,386 12/9/2026 1,386 Hospice Care Buyer, Inc. Term Loan — — 12/9/2026 1,668 Hsid Acquisition, LLC Revolver 1/31/2026 750 1/31/2026 750 Integrity Marketing Acquisition, LLC Revolver 8/27/2025 1,409 8/27/2025 1,409 ISS Compressors Industries, Inc. Revolver 2/5/2026 833 2/5/2026 833 IvyRehab Intermediate II, LLC Revolver 12/4/2024 500 12/4/2022 1,450 IvyRehab Intermediate II, LLC Delayed Draw Term Loan 12/4/2022 71 12/4/2024 500 IvyRehab Intermediate II, LLC Delayed Draw Term Loan 9/13/2023 2,400 — — Jordan Bidco, Ltd. Delayed Draw Term Loan 8/31/2024 4,115 — — Jordan Bidco, Ltd. Revolver 2/28/2028 2,058 — — Jordan Health Products, Inc. Revolver — — — — JTM Foods LLC Revolver 5/14/2027 640 — — JTM Foods LLC Delayed Draw Term Loan 11/14/2022 750 — — Kestrel Parent, LLC Revolver 11/13/2023 871 11/13/2023 871 Learn-It Systems, LLC Revolver 3/18/2025 750 3/18/2022 1,456 Learn-It Systems, LLC Delayed Draw Term Loan 3/18/2022 42 3/18/2025 600 Learn-It Systems, LLC Delayed Draw Term Loan 5/4/2023 2,600 — — Lightspeed Buyer, Inc. Revolver 2/3/2026 1,050 8/3/2021 648 Lightspeed Buyer, Inc. Delayed Draw Term Loan — — 2/3/2026 700 Lightspeed Buyer, Inc. Delayed Draw Term Loan 2/28/2023 5,100 — — Lion Cashmere Bidco Limited Revolver 2/23/2026 2,025 — — Lion Cashmere Bidco Limited Delayed Draw Term Loan 9/23/2024 3,194 — — List Partners, Inc. Revolver 1/5/2023 450 1/5/2023 450 Mann Lake Ltd. Revolver 10/4/2024 180 10/4/2024 60 MHS Acquisition Holdings, LLC Delayed Draw Term Loan 7/21/2023 214 — — MHS Acquisition Holdings, LLC Revolver 7/21/2027 150 — — MRI Software LLC Delayed Draw Term Loan 2/10/2026 98 2/10/2022 519 MRI Software LLC Revolver 2/10/2026 1,266 2/10/2026 1,184 MRI Software LLC Delayed Draw Term Loan 2/10/2022 316 2/10/2026 1,266 New Era Technology, Inc. Revolver 10/31/2026 228 — — 64 Table of Contents September 30, 2021 December 31, 2020 Company Investment Type Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) New Era Technology, Inc. Delayed Draw Term Loan 10/31/2022 905 — — Nexant Volt MergerSub, Inc. Revolver 5/11/2027 165 — — Nurture Landscapes Delayed Draw Term Loan — — — — Omni Ophthalmic Management Consultants, LLC Delayed Draw Term Loan — — 2/28/2021 623 Ontario Systems, LLC Delayed Draw Term Loan 8/19/2023 550 9/5/2021 1,100 Ontario Systems, LLC Revolver 8/30/2025 500 8/30/2025 300 Painters Supply & Equipment Company Delayed Draw Term Loan 8/10/2023 900 — — Painters Supply & Equipment Company Revolver 8/10/2027 500 — — Patriot Acquisition Topco S.A.R.L Revolver 1/29/2026 1,770 — — PharComp Parent B.V. Delayed Draw Term Loan 2/20/2022 721 2/20/2026 2,056 Pharmalogics Recruiting, LLC Delayed Draw Term Loan 2/5/2027 1,436 — — Pilot Air Freight, LLC Revolver 7/25/2024 100 7/25/2024 100 Pinnacle Treatment Centers, Inc. Delayed Draw Term Loan 1/17/2022 457 1/17/2022 457 Pinnacle Treatment Centers, Inc. Revolver 12/31/2022 571 12/31/2022 571 Potter Electric Signal Company Delayed Draw Term Loan 12/19/2021 271 12/19/2021 1,123 Potter Electric Signal Company Revolver 12/19/2024 550 12/19/2024 550 Premier Dental Care Management, LLC Delayed Draw Term Loan 8/5/2023 5,148 — — Premier Dental Care Management, LLC Revolver 8/5/2027 1,544 — — Prism Bidco, Inc. Revolver 6/25/2026 833 6/25/2026 833 PromptCare Intermediate, LP Delayed Draw Term Loan 9/1/2023 4,444 — — PT Network, LLC Revolver 11/30/2023 400 11/30/2023 400 Pye-Barker Fire & Safety, LLC Delayed Draw Term Loan — — — — Pye-Barker Fire & Safety, LLC Delayed Draw Term Loan 11/19/2022 812 — — Receivable Solutions, Inc. Revolver 10/1/2024 300 10/1/2024 300 Right Networks, LLC Revolver 11/4/2024 233 11/4/2024 232 Right Networks, LLC Delayed Draw Term Loan 12/31/2021 2,117 — — Ruffalo Noel Levitz, LLC Revolver 5/29/2022 300 5/29/2022 60 Safco Dental Supply, LLC Revolver 6/14/2025 360 6/14/2025 600 Saturn Borrower Inc Revolver 9/30/2026 908 9/30/2026 1,513 SavATree, LLC Delayed Draw Term Loan — — 6/2/2020 122 SavATree, LLC Revolver 6/2/2022 550 6/2/2022 550 Seko Global Logistics Network, LLC Revolver 12/20/2026 1,300 — — Seniorlink Incorporated Revolver 7/17/2026 1,038 7/17/2026 1,037 Service Logic Acquisition, Inc Delayed Draw Term Loan 10/30/2022 2,432 10/30/2022 2,432 Slickdeals Holdings, LLC Revolver 6/12/2023 727 6/12/2023 727 Smile Brands, Inc. Revolver — — 10/12/2023 300 Smile Doctors LLC Revolver 10/6/2022 1,070 10/6/2022 1,070 Southern HVAC Corporation Revolver 10/30/2022 671 10/30/2022 2,450 Southern HVAC Corporation Delayed Draw Term Loan — — 10/30/2022 1,000 65 Table of Contents September 30, 2021 December 31, 2020 Company Investment Type Commitment Expiration Date (1) Unfunded Commitment (2) Commitment Expiration Date (1) Unfunded Commitment (2) Spear Education Delayed Draw Term Loan 2/26/2022 3,125 2/3/2026 3,125 Stepping Stones Healthcare Services, LLC Revolver 3/9/2026 750 — — Stepping Stones Healthcare Services, LLC Delayed Draw Term Loan 3/9/2023 547 — — Sun Acquirer Corp. Delayed Draw Term Loan 9/8/2023 8,243 — — Sun Acquirer Corp. Revolver 9/8/2027 1,812 — — Teaching Strategies LLC Revolver — — 5/14/2024 629 Teal Acquisition Co., Inc Revolver 9/22/2026 1,277 9/22/2026 1,642 Teal Acquisition Co., Inc Delayed Draw Term Loan 9/22/2026 1,642 9/22/2026 1,004 The Hilb Group, LLC Revolver 12/2/2025 340 12/2/2025 340 The Hilb Group, LLC Delayed Draw Term Loan 12/15/2022 1,269 12/15/2022 1,728 The Hilb Group, LLC Revolver 12/2/2025 143 12/2/2025 142 Transportation Insight, LLC Revolver 12/3/2024 571 12/3/2024 750 Tranzonic Revolver 3/27/2023 38 3/27/2023 110 Trinity Partners, LLC Revolver 2/21/2023 450 2/21/2023 450 Unifeye Vision Partners Delayed Draw Term Loan — — 9/13/2021 2,237 Unifeye Vision Partners Revolver 9/13/2025 1,700 9/13/2025 1,247 Unifeye Vision Partners Delayed Draw Term Loan 9/7/2023 5,005 — — UP Acquisition Corp Revolver 5/23/2024 911 5/23/2024 859 VetStrategy Delayed Draw Term Loan — — 7/31/2027 347 VetStrategy Delayed Draw Term Loan — — 7/31/2027 2,355 VetStrategy Delayed Draw Term Loan 7/31/2027 2,904 — — Vital Care Buyer, LLC Revolver 10/19/2025 2,222 10/19/2025 2,222 WhiteHawk III Onshore Fund L.P. Partnership Interest — 5,164 — — Winxnet Holdings, LLC Revolver 6/29/2023 400 6/29/2023 160 Winxnet Holdings, LLC Revolver 6/29/2023 250 — — Total $ 166,320 $ 80,837 (1) Commitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which may be shorter than its maturity. (2) Unfunded commitments denominated in currencies other than USD have been converted to USD using the applicable foreign currency exchange rate as of September 30, 2021 and December 31, 2020. As of September 30, 2021, 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. 66 Table of Contents 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 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 nine months ended September 30, 2021 and 2020, the Company issued 0 and 30,128 new common shares, respectively, in connection with its dividend reinvestment plan. The following table summarizes the Company’s recent distributions declared: Date Declared Record Date Payment Date Amount Per Share August 11, 2021 September 30, 2021 October 15, 2021 $ 0.41 May 10, 2021 June 30, 2021 July 15, 2021 $ 0.41 February 22, 2021 March 31, 2021 April 15, 2021 $ 0.41 November 4, 2020 December 31, 2020 January 15, 2021 $ 0.41 August 7, 2020 September 30, 2020 October 15, 2020 $ 0.41 At September 30, 2021 and December 31, 2020, Crescent and other related parties owned 2.28% and 2.11%, respectively, of the outstanding common shares of the Company. Note 10. Earnings Per Share In accordance with the provisions of ASC 260 – Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of September 30, 2021 and December 31, 2020, there are no dilutive shares. The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the following periods (in thousands): For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Net increase (decrease) in net assets resulting from operations $ 16,679 $ 38,341 $ 70,798 $ 20,213 Weighted average common shares outstanding 28,167,360 28,167,360 28,167,360 27,518,708 Net increase (decrease) in net assets resulting from operations per common share-basic and diluted $ 0.59 $ 1.36 $ 2.51 $ 0.73 67 Table of Contents Note 11. Income Taxes As of September 30, 2021 and December 31, 2020, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was (in thousands): As of September 30, 2021 As of December 31, 2020 Tax Cost $ 1,118,797 $ 1,038,153 Gross Unrealized Appreciation $ 22,727 $ 26,684 Gross Unrealized Depreciation (17,238 ) (30,836 ) Net Unrealized Investment Appreciation (Depreciation) $ 5,489 $ (4,152 ) Note 12. Financial Highlights Below is the schedule of financial highlights of the Company for the nine months ended September 30, 2021 and 2020 (in thousands, except share and per share data): For the nine months ended September 30, 2021 2020 Per Share Data: (1) Net asset value, beginning of period $ 19.88 $ 19.50 Net investment income after tax 1.25 1.33 Net realized and unrealized gains (losses) on investments, asset acquisition and forward contracts, net of taxes 1.26 (0.60 ) Net increase (decrease) in net assets resulting from operations 2.51 0.73 Effect of equity issuances, net of share repurchases and rounding — 0.07 Distributions declared from net investment income (2) (1.23 ) (1.23 ) Total increase (decrease) in net assets 1.28 (0.43 ) Net asset value, end of period $ 21.16 $ 19.07 Shares outstanding, end of period 28,167,360 28,167,360 Market value, end of period $ 19.13 $ 12.75 Weighted average shares outstanding 28,167,360 27,518,708 Total return based on market value (3) 40.31 % -14.10 % Total return based on net asset value (4) 12.63 % 4.10 % Ratio/Supplemental Data: Net assets, end of period $ 596,152 $ 537,090 Ratio of total net expenses to average net assets (5)(6) 8.01 % 5.43 % Ratio of net expenses (without incentive fees and interest and other debt expenses) to average net assets (6) 2.85 % 2.25 % Ratio of net investment income before taxes to average net assets (6) 8.43 % 10.29 % Ratio of interest and credit facility expenses to average net assets (6) 3.34 % 3.18 % Ratio of net incentive fees to average net assets (6) 1.82 % — Ratio of portfolio turnover to average investments at fair value (7) 28.50 % 20.31 % Asset coverage ratio 205 % 225 % (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 for the comparative period 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, and not annualized. 68 Table of Contents (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 and WhiteHawk III Onshore Fund LP. Excluding the effects of waivers, the ratio of total expenses to average net assets would have been 8.03% and 5.46% for the nine months ended September 30, 2021 and 2020, respectively. (6) Annualized. (7) Not annualized. Note 13. Alcentra Acquisition On August 12, 2019, the Company entered into an Agreement and Plan of Merger (as amended on September 27, 2019, the “Merger Agreement”) to acquire Alcentra Capital Corporation (“Alcentra Capital”) in a cash and stock transaction (the “Alcentra Acquisition”). In connection with the Alcentra Acquisition, which was completed on January 31, 2020, each share of Alcentra Capital common stock issued and outstanding immediately prior to the effective time of the Alcentra Acquisition was converted into the right to receive from the Company, in accordance with the Merger Agreement, (a) approximately $1.50 per share in cash consideration less $0.80 per share spillover dividend declared by Alcentra Capital, and (b) stock consideration at the fixed exchange ratio of 0.4041 shares, par value $0.001 per share, of the Company’s common stock (the “Exchange Ratio”) (and, if applicable, cash in lieu of fractional shares of the Company’s common stock). The Exchange Ratio was fixed on the date of the Merger Agreement, and was not subject to adjustment based on changes in the trading price of Alcentra Capital’s common stock before the closing of the Alcentra Acquisition. Based on the number of shares of Alcentra Capital common stock outstanding on the date of the merger, approximately 5,203,016 of the Company’s shares of common stock were exchanged for approximately 12,875,566 outstanding shares of Alcentra Capital common stock, subject to adjustment in certain limited circumstances. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in the 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 three months ended March 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. 69 Table of Contents The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as a result of the Alcentra Acquisition (in thousands): Consideration Paid by the Company Common stock issued by the Company (1) $ 101,963 Cash Consideration paid by the Company 9,043 Transaction costs 7,250 Total Purchase Price $ 118,256 Assets (Liabilities) Acquired Investment portfolio (2) $ 195,682 Cash 3,409 Portfolio receivables 1,003 Other receivable 395 InterNotes ® (50,271 ) Secured credit facility (34,558 ) Borrowing expense payable (834 ) Other payables (395 ) Net Assets Acquired $ 114,431 Realized loss on asset acquisition $ 3,825 (1) Common stock consideration was issued at the Company’s Net Asset Value of $19.60 at the date of the Alcentra Acquisition. (2) Investments acquired were recorded at fair value at the date of the acquisition, which is also the Company’s initial cost basis. Note 14. Stock Repurchase Program On January 31, 2020, the Company entered into a $20,000 repurchase plan which allowed it to purchase shares in the open market any time the Company’s common stock trades below ninety percent (90%) of its most recently disclosed net asset value per share. The plan was subject to compliance with the Company’s liquidity, covenant, leverage and regulatory requirements. Pursuant to the terms of the repurchase plan, repurchases began on March 2, 2020. On April 9, 2020, the Company’s Board of Directors unanimously approved the termination of the Company’s stock repurchase program. The following table summarizes share repurchases under the Company’s stock repurchase program for the three and nine months ended September 30, 2021 and 2020 (in thousands, except share and per share data). Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Nine months ended September 30, 2021 Nine months ended September 30, 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 15. Subsequent Events The Company’s management evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than the items below, there have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of September 30, 2021 and for the nine months ended September 30, 2021. 70 Table of Contents On October 27, 2021, the Company entered into a senior secured revolving credit agreement (the “SMBC Corporate Revolving Facility”) with Sumitomo Mitsui Banking Corporation, as Administrative Agent, Collateral Agent and Lender and concurrently terminated its $200,000 Corporate Revolving Facility with Ally Bank. The maximum principal amount of the SMBC Corporate Revolving Facility is $300,000, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at LIBOR plus 1.875% or 2.000%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no LIBOR floor. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on October 27, 2026. On November 5, 2021, the Company’s Board of Directors declared the following cash dividends: Cash Dividend Type Record Date Payment Date Amount Per Share Regular December 31, 2021 January 17, 2022 $ 0.41 Special December 3, 2021 December 15, 2021 $ 0.05 Special March 4, 2022 March 15, 2022 $ 0.05 Special June 3, 2022 June 15, 2022 $ 0.05 Special September 2, 2022 September 15, 2022 $ 0.05 71 Table of Contents ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The information contained in this section should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward Looking Statements” set forth on page 1 of this Quarterly Report on Form 10-Q. In this report, “we,” “us,” “our” and “Company” refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries. OVERVIEW We are a specialty finance company focused on lending to middle-market companies. We were incorporated under the laws of the State of Delaware on February 5, 2015 and on January 30, 2020, we changed our state of incorporation from the State of Delaware to the State of Maryland. We have elected to be treated as a BDC under the 1940 Act. In addition, we have elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income and tax-exempt interest. On January 31, 2020, we completed a transaction to acquire Alcentra Capital Corporation in a cash and stock transaction (the “Alcentra Acquisition”). We were listed and began trading on the NASDAQ stock exchange on February 3, 2020. We are managed by Crescent Cap Advisors, LLC (the “Adviser”), an investment adviser that is registered with the SEC under the 1940 Act. CCAP Administration, LLC (the “Administrator”), provides the administrative services necessary for us to operate. Company management consists of investment and administrative professionals from the Adviser and Administrator along with our Board. The Adviser directs and executes our investment operations and capital raising activities subject to oversight from the Board, which sets our broad policies. The Board has delegated investment management of our investment assets to the Adviser. The Board consists of five directors, four of whom are independent. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We invest primarily in secured debt (including first lien, unitranche first lien and second-lien debt) and unsecured debt (including mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from our target companies as primary market or private credit investments ( i.e. , private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated “over-the-counter” market ( i.e. , broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, we may from time to time invest in more liquid broadly syndicated loans to complement our private credit transactions. “First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets. “Unitranche first lien” investments are loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, we may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. “Second lien” investments are loans with a second priority lien on 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. “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. CRITICAL ACCOUNTING POLICIES Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. The critical accounting policies should be read in connection with our risk factors as disclosed herein. 72 Table of Contents For a description of our critical accounting policies, see Note 2 “Significant Accounting Policies” to our consolidated financial statements included in this report. We consider the most significant accounting policies to be those related to our Valuation of Portfolio Investments, Revenue Recognition, Non-Accrual Investments, Distribution Policy, and Income Taxes. COMPONENTS OF OPERATIONS Investments We expect our investment activity to vary substantially from period to period depending on many factors, the general economic environment, the amount of capital we have available to us, the level of merger and acquisition activity for middle-market companies, including the amount of debt and equity capital available to such companies and the competitive environment for the type of investments we make. In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors. We may not invest in any assets other than “qualifying assets” specified in the 1940 Act, unless, at the time the investments are made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the SEC, “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million. The Investment Adviser Our investment activities are managed by the Adviser, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“Crescent”), pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals. 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”). There were no changes to our investment objective, strategies and process or to the Crescent team responsible for the investment operations as a result of the Sun Life Transaction. Revenues We generate revenue primarily in the form of interest income on debt investments, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. We also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into income over the life of the loan using the effective yield method. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. We may receive other income, which may include income such as consent, waiver, amendment, underwriting, and arranger fees associated with our investment activities as well as any fees for managerial assistance services rendered to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. Expenses Our primary operating expenses include the payment of management fees and incentive fees to the Adviser under the Investment Advisory Agreement, as amended, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with our sub-administration agreement and other operating costs described below. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including: • the cost of calculating our net asset value, including the cost of any third-party valuation services; • fidelity bond, directors’ and officers’ liability insurance and other insurance premiums; 73 Table of Contents • fees and expenses associated with independent audits and outside legal costs; • independent directors’ fees and expenses; • administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, rent and the allocable portion of the cost of certain professional services provided to us, including but not limited to, our accounting professionals, our legal counsel and compliance professionals); • U.S. federal, state and local taxes; • the cost of effecting sales and repurchases of shares of our common stock and other securities; • fees payable to third parties relating to making investments, including out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments; • out-of-pocket fees and expenses associated with marketing efforts; • federal and state registration fees and any stock exchange listing fees; • brokerage commissions; • costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; • debt service and other costs of borrowings or other financing arrangements; and • all other expenses reasonably incurred by us in connection with making investments and administering our business. We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines. Leverage Our financing facilities allow us to borrow money and lever our investment portfolio, subject to the limitations of the 1940 Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our stockholders. The use of leverage involves significant risks. Prior to the Small Business Credit Availability Act being signed into law, a BDC generally was not permitted to incur indebtedness unless immediately after such borrowing it has an asset coverage for total borrowings of at least 200%. The Small Business Credit Availability Act, signed into law on March 23, 2018, contains a provision that grants a BDC the option, subject to certain conditions and disclosure obligations, to reduce the asset coverage requirement to 150%. On March 3, 2020, our Board of Directors approved, and on May 4, 2020, at an annual meeting of our stockholders, our stockholders approved, the application to us of the reduced asset coverage requirements in Section 61(a) of the 1940 Act. The application of the reduced asset coverage requirement, which became effective on May 4, 2020, permits us, provided certain requirements are satisfied, to double the maximum amount of leverage that it is permitted to incur by reducing the asset coverage requirement applicable to us from 200% to 150% (i.e., we are permitted to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us) in order to issue senior securities. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing. PORTFOLIO INVESTMENT ACTIVITY We seek to create a broad and diversified portfolio that generally includes senior secured first lien, unitranche, senior secured second lien, unsecured loans and minority equity securities of U.S. middle market companies. The size of our individual investments varies proportionately with the size of our capital base. We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities have speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity. 74 Table of Contents As of September 30, 2021 and December 31, 2020, our portfolio at fair value was comprised of the following: $ in millions September 30, 2021 December 31, 2020 Investment Type Fair Value Percentage Fair Value Percentage Senior Secured First Lien $ 349.8 30.7% $ 373.6 36.1% Unitranche First Lien 597.0 52.4 413.6 40.0 Unitranche First Lien - Last Out 13.5 1.2 14.9 1.5 Senior Secured Second Lien 56.4 5.0 104.7 10.1 Unsecured Debt 5.4 0.5 3.0 0.3 Equity & Other 57.9 5.1 69.3 6.7 LLC/LP Equity Interests 58.6 5.1 54.9 5.3 Total investments $ 1,138.6 100.0% $ 1,034.0 100.0% The following table shows our investment activity by investment type: $ in millions For the three months ended For the nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (1) New investments at cost: Senior Secured First Lien $ 36.4 $ 30.4 $ 101.0 $ 79.2 Unitranche First Lien 114.1 51.6 252.2 129.1 Unitranche First Lien – Last Out — — — — Senior Secured Second Lien — — — 9.4 Unsecured Debt — — 2.3 — Equity & Other 5.3 2.1 7.3 2.1 LLC/LP Equity Interests 2.7 — 4.9 8.5 Total $ 158.5 $ 84.1 $ 367.7 $ 228.3 Proceeds from investments sold or repaid: Senior Secured First Lien $ 59.0 $ 26.3 $ 131.3 $ 127.2 Unitranche First Lien 14.5 3.9 77.4 27.3 Unitranche First Lien - Last Out — — — 0.2 Senior Secured Second Lien 9.1 10.1 50.6 18.8 Unsecured Debt 0.3 6.6 0.3 6.6 Equity & Other 39.8 — 47.4 0.4 LLC/LP Equity Interests 0.1 — 2.6 1.8 Total $ 122.8 $ 46.9 $ 309.6 $ 182.3 Net increase (decrease) in portfolio $ 35.7 $ 37.2 $ 58.1 $ 46.0 (1) Excludes $195.7 million of assets at cost acquired in connection with the Alcentra Acquisition. The assets acquired, at cost, were comprised of $82.2 million of senior secured first lien, $45.0 million of unitranche first lien, $53.0 million of senior secured second lien, $1.2 million of unsecured debt and $14.3 million of equity investments. The following table presents certain selected information regarding our investment portfolio as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Weighted average yield on income producing securities (at cost) (1) 7.6% 8.0% Percentage of debt bearing a floating rate (at fair value) 99.7% 98.4% Percentage of debt bearing a fixed rate (at fair value) 0.3% 1.6% Number of portfolio companies 132 132 (1) Yield excludes investments on non-accrual status. 75 Table of Contents The following table shows the amortized cost of our performing and non-accrual debt and income producing debt securities as of September 30, 2021 and December 31, 2020. $ in millions September 30, 2021 December 31, 2020 Cost % of Cost Fair Value % of Fair Value Cost % of Cost Fair Value % of Fair Value Performing $ 1,004.0 98.5% $ 1,010.5 98.9% $ 899.2 98.3% $ 899.5 98.7% Non-Accrual 15.6 1.5% 11.7 1.1% 15.6 1.7% 12.1 1.3% Total $ 1,019.6 100.0% $ 1,022.2 100.0% $ 914.8 100.0% $ 911.6 100.0% Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2021, we had investments in two portfolio companies with three investment positions on non-accrual status, which represented 1.5% and 1.1% of the total debt investments at cost and fair value, respectively. As of December 31, 2020, we had investments in 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. The remaining debt investments were performing and current on their interest payments as of September 30, 2021 and December 31, 2020. The Adviser monitors our portfolio companies on an ongoing basis. The Adviser monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Adviser has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following: • assessment of success of the portfolio company in adhering to its business plan and compliance with covenants; • review of monthly and quarterly financial statements and financial projections for portfolio companies. • contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments; • comparisons to other companies in the industry; and • attendance and participation in board meetings. As part of the monitoring process, the Adviser regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories: 1 Involves the least amount of risk in our portfolio. The investment/borrower is performing above expectations since investment, and the trends and risk factors are generally favorable, which may include the financial performance of the borrower or a potential exit. 2 Involves an acceptable level of risk that is similar to the risk at the time of investment. The investment/borrower is generally performing as expected, and the risk factors are neutral to favorable. 3 Involves an investment/borrower performing below expectations and indicates that the investment’s risk has increased somewhat since investment. The borrower’s loan payments are generally not past due and more likely than not the borrower will remain in compliance with debt covenants. An investment rating of 3 requires closer monitoring. 4 Involves an investment/borrower performing materially below expectations and indicates that the loan’s risk has increased materially since investment. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due). Placing loans on non-accrual status should be considered for investments rated 4. 5 Involves an investment/borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since investment. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are not anticipated to be repaid in full and the fair market values of the loans are generally reduced to the anticipated recovery amounts. Loans with an investment rating of 5 are generally placed on non-accrual status. 76 Table of Contents The following table shows the composition of our portfolio on the 1 to 5 investment performance rating scale as of September 30, 2021 and December 31, 2020. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors. $ in millions September 30, 2021 December 31, 2020 Investment Performance Rating Investments at Fair Value Percentage of Total Portfolio Investments at Fair Value Percentage of Total Portfolio 1 $ 13.4 1.2 % $ 9.8 0.9 % 2 1,003.7 88.2 895.1 86.6 3 109.8 9.6 117.0 11.3 4 11.7 1.0 12.1 1.2 5 — — — — Total $ 1,138.6 100.0 % $ 1,034.0 100.0 % RESULTS OF OPERATIONS Operating results for the three and nine months ended September 30, 2021 and 2020 were as follows: $ in millions For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Total investment income $ 25.5 $ 18.7 $ 69.8 $ 56.8 Total net expenses 12.8 6.5 34.7 20.1 Net investment income $ 12.7 $ 12.2 $ 35.1 $ 36.7 Net realized gain (loss) on investments 27.9 (0.5 ) 32.2 (1.7 ) Net unrealized appreciation (depreciation) on investments and forward contracts (23.5 ) 26.8 4.2 (11.1 ) Net realized and unrealized gains (losses) $ 4.4 $ 26.3 $ 36.4 $ (12.8 ) Realized loss on asset acquisition — — — (3.8 ) Benefit/(Provision) for taxes on realized and unrealized appreciation (depreciation) on investments (0.4 ) (0.2 ) (0.7 ) 0.1 Net increase (decrease) in net assets resulting from operations $ 16.7 $ 38.3 $ 70.8 $ 20.2 Investment Income $ in millions For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Interest from investments $ 22.8 $ 17.5 $ 63.5 $ 52.1 Dividend Income 2.4 1.2 5.7 3.6 Other Income 0.3 — 0.6 1.1 Total investment income $ 25.5 $ 18.7 $ 69.8 $ 56.8 77 Table of Contents Interest income, which includes amortization of upfront fees, increased from $17.5 million for the three months ended September 30, 2020 to $22.8 million for the three months ended September 30, 2021, due to higher accelerated accretion of OID and organic net deployment. Included in interest from investments for the three months ended September 30, 2021 and 2020 are $3.9 million and $0.3 million of accelerated accretion of OID related to paydown activity, respectively. Dividend income increased from $1.2 million for the three months ended September 30, 2020 to $2.4 million for the three months ended September 30, 2021 due to a one-time dividend distribution from a portfolio company. Other income which includes consent, waiver, amendment, agency, underwriting and arranger fees associated with our investment activities increased from $0 for the three months ended September 30, 2020 to $0.3 million for the three months ended September 30, 2021. Interest income, which includes amortization of upfront fees, increased from $52.1 million for the nine months ended September 30, 2020 to $63.5 million for the nine months ended September 30, 2021, due to organic net deployment and higher accelerated accretion of OID related to paydown activity. Included in interest from investments for the nine months ended September 30, 2021 and 2020 are $7.0 million and $1.6 million of accelerated accretion of OID, respectively. Dividend income increased from $3.6 million for the nine months ended September 30, 2020 to $5.7 million for the nine months ended September 30, 2021 due to a one-time dividend distribution from a portfolio company. Other income which includes consent, waiver, amendment, agency, underwriting and arranger fees associated with our investment activities decreased from $1.1 million for the nine months ended September 30, 2020 to $0.6 million for the nine months ended September 30, 2021. Expenses $ in millions For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Interest and other debt financing costs $ 5.7 $ 3.5 $ 14.5 $ 11.5 Management fees 3.5 2.9 10.1 8.3 Income based incentive fees 2.7 2.1 7.5 6.3 Capital gains based incentive fees 0.8 — 6.2 — Professional fees 0.5 0.4 1.5 1.1 Directors’ fees 0.1 0.1 0.4 0.3 Other general and administrative expenses 0.7 0.7 2.0 1.8 Total expenses $ 14.0 $ 9.7 $ 42.2 $ 29.3 Management fee waiver (0.5 ) (1.2 ) (3.1 ) (3.4 ) Income based incentive fees waiver (0.9 ) (2.1 ) (5.8 ) (6.3 ) Net expenses $ 12.6 $ 6.4 $ 33.3 $ 19.6 Income and excise taxes 0.2 0.1 1.4 0.5 Total $ 12.8 $ 6.5 $ 34.7 $ 20.1 Interest and other debt financing costs Interest and other debt financing costs include interest, amortization of deferred financing costs including upfront commitment fees and unused fees on our credit facilities. For the three months ended September 30, 2021 and 2020 interest and other debt financing costs were $5.7 million and $3.5 million, respectively. For the nine months ended September 30, 2021 and 2020 interest and other debt financing costs were $14.5 million and $11.5 million, respectively. The increase for both periods was due to a higher weighted average debt outstanding, higher weighted average cost of debt and acceleration of certain deferred financing costs. Base Management Fees For the three months ended September 30, 2021 and 2020, we incurred management fees of $3.0 million and $1.7 million, respectively, which are net of waived amounts of $0.5 million and $1.2 million, respectively. For the nine months ended September 30, 2021 and 2020, we incurred management fees of $7.0 million and $4.9 million, respectively, which are net of waived amounts of $3.1million and $3.4 million, respectively. The increase in net management fees for both three and nine month periods was driven by growing assets under management and expiration of the management fee waiver on July 31, 2021. 78 Table of Contents The Adviser has voluntarily waived its right to receive management fees on our investments in GACP II LP and WhiteHawk III Onshore Fund LP for any period in which these investments remain in the investment portfolio. Incentive Fees For the three months ended September 30, 2021 and 2020 we incurred income based incentive fees of $2.7 million and $2.1 million, of which $0.9 million and $2.1 million, respectively, were waived. For the nine months ended September 30, 2021 and 2020 we incurred income based incentive fees of $7.5 million and $6.3 million, of which $5.8 million and $6.3 million, respectively, were waived. The increase in net incentive fees for both three and nine month periods was driven by expiration of the income based incentive fee waiver on July 31, 2021. For the three months ended September 30, 2021 and 2020 we accrued $0.8 million and $0, respectively, of capital gains based incentive fees. For the nine months ended September 30, 2021 and 2020 we accrued $6.2 million and $0, respectively, of capital gains based incentive fees. As of September 30, 2021 and December 31, 2020, $6.2 million and $0, respectively, was accrued and unpaid. The increase in incentive fees on cumulative unrealized capital appreciation was attributable to the inception to date performance of the investment portfolio. Professional Fees and Other General and Administrative Expenses Professional fees generally include expenses from independent auditors, tax advisors, legal counsel and third party valuation agents. Other general and administrative expenses generally include overhead and staffing costs allocated from the Administrator, insurance premiums, sub-administration expenses and miscellaneous administrative costs associated with our operations and investment activity. For the three months ended September 30, 2021 and 2020, professional fees were $0.5 million and $0.4 million, respectively. For the nine months ended September 30, 2021 and 2020, professional fees were $1.5 million and $1.1 million, respectively. For the three months ended September 30, 2021 and 2020, other general and administrative expenses were $0.7 million and $0.7 million, respectively. For the nine months ended September 30, 2021 and 2020, other general and administrative expenses were $2.0 million and $1.8 million, respectively. The increase in professional fees and other general and administrative expenses was attributable to servicing a growing investment portfolio. Income and Excise Taxes For the three months ended September 30, 2021 and 2020, we expensed income and excise taxes of $0.2 million and $0.1 million. For the nine months ended September 30, 2021 and 2020, we expensed income and excise taxes of $1.4 million and $0.5 million. The increase in income and excise tax was attributable to taxes due on allocated taxable income from an equity investment held in a blocker. We accrued an offsetting tax distribution, which was declared by the portfolio company, under dividend income. Net Investment Income For the three months ended September 30, 2021 and 2020, GAAP net investment income was $12.7 million or $0.45 per share and $12.2 million or $0.43 per share, respectively. The increase was due to higher accelerated amortization income. For the nine months ended September 30, 2021 and 2020, GAAP net investment income was $35.1 million or $1.25 per share and $36.7 million or $1.33 per share, respectively. The decrease was due to accrued capital gains based incentive fees recorded during current year. For the three months ended September 30, 2021 and 2020, net investment income excluding capital gains incentive fees (“Adjusted Net Investment Income”), was $13.5 million or $0.48 per share and $12.2 million or $0.43 per share, respectively. For the nine months ended September 30, 2021 and 2020, Adjusted Net Investment Income was $41.3 million or $1.47 per share and $36.7 million or $1.33 per share, respectively. The increase was due to a higher investment income from a growing investment portfolio and higher accelerated amortization income. 79 Table of Contents The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to Adjusted Net Investment Income for the periods presented: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Amount Per Share Amount Per Share Amount Per Share Amount Per Share GAAP net investment income $ 12.7 $ 0.45 $ 12.2 $ 0.43 $ 35.1 $ 1.25 $ 36.7 $ 1.33 Capital gains based incentive fee 0.8 0.03 — — 6.2 0.22 — — Adjusted Net Investment Income $ 13.5 $ 0.48 $ 12.2 $ 0.43 $ 41.3 $ 1.47 $ 36.7 $ 1.33 On a supplemental basis, we are disclosing Adjusted Net Investment Income and per share Adjusted Net Investment Income, each of which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (“non-GAAP”). Adjusted Net Investment Income represents net investment income, excluding capital gains incentive fees. We use this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believe that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends without giving effect to capital gains incentive fees. The Company’s investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized capital depreciation on a cumulative basis. We believe that Adjusted Net Investment Income is a useful performance measure because it reflects the net investment income produced on the Company’s investments during a period without giving effect to any changes in the value of such investments and any related capital gains incentive fees between periods. The presentation of Adjusted Net Investment Income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation. 80 Table of Contents Net Realized and Unrealized Gains and Losses We value our portfolio investments quarterly and any changes in fair value are recorded as unrealized appreciation (depreciation) on investments. For the three and nine months ended September 30, 2021 and 2020, net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following: $ in millions For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Realized losses on non-controlled and non-affiliated investments $ (0.1 ) $ — $ (0.2 ) $ (1.5 ) Realized gains on non-controlled and non-affiliated investments 0.5 — 5.1 0.4 Realized losses on non-controlled and affiliated investments — (1.8 ) — (1.8 ) Realized gains on non-controlled and affiliated investments 27.5 1.3 27.5 1.3 Realized losses on foreign currency forwards (0.1 ) — (0.1 ) (0.3 ) Realized gains on foreign currency forwards — — — 0.2 Realized losses on foreign currency transactions — — (0.2 ) (0.3 ) Realized gains on foreign currency transactions 0.1 — 0.1 0.2 Net realized gains (losses) on investments $ 27.9 $ (0.5 ) $ 32.2 $ (1.8 ) Change in unrealized depreciation on non-controlled and non-affiliated investments (9.3 ) — (15.0 ) (21.0 ) Change in unrealized appreciation on non-controlled and non-affiliated investments 12.2 18.7 28.2 0.8 Change in unrealized depreciation on foreign currency translation — (0.3 ) — (0.5 ) Change in unrealized appreciation on foreign currency translation — 0.6 — 0.5 Change in unrealized depreciation on non-controlled and affiliated investments (28.8 ) (0.5 ) (14.2 ) (1.0 ) Change in unrealized appreciation on non-controlled and affiliated investments 0.6 6.2 1.7 15.0 Change in unrealized depreciation on controlled and affiliated investments — — — (5.5 ) Change in unrealized appreciation on controlled and affiliated investments 0.3 3.4 1.5 — Change in unrealized depreciation on foreign currency forwards — (1.3 ) — (0.1 ) Change in unrealized appreciation on foreign currency forwards 1.5 — 2.0 0.7 Net unrealized appreciation (depreciation) on investments (23.5 ) 26.8 4.2 (11.1 ) Realized loss on asset acquisition — — — (3.8 ) Net realized and unrealized gains (losses) on investments and asset acquisition $ 4.4 $ 26.3 $ 36.4 $ (16.7 ) Hedging We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks. Generally, we do not intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to our business or results of operations. These hedging activities, which are in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful. During the nine months ended September 30, 2021 and 2020, our average U.S. Dollar notional exposure to foreign currency forward contracts were $70.1 million and $34.1 million, respectively. 81 Table of Contents FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments; (2) the cost of operations (including paying the Adviser); (3) debt service, repayment, and other financing costs; and (4) cash distributions to the holders of our common stock. We expect to generate additional liquidity from (1) future offerings of securities, (2) future borrowings and (3) cash flows from operations. As of September 30, 2021, we had $19.5 million in cash and cash equivalents and restricted cash and cash equivalents and $173.1 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of September 30, 2021, the undrawn capacity under our facilities is in excess of our unfunded commitments. As of September 30, 2021, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we were in compliance with all the financial covenant requirements of our credit facilities as of September 30, 2021. However, any increase in realized losses or unrealized depreciation of our investment portfolio or significant reductions in our net asset value as a result of the effects of the COVID-19 pandemic, increase the risk of breaching the relevant covenants requirements. Any breach of these requirements may adversely affect the access to sufficient debt and equity capital. Capital Share Activity Between June 26, 2015, commencement of operations, and January 31, 2020, the date of Alcentra Acquisition, we entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including Crescent, providing for the private placement of our common shares. Pursuant to the Subscription Agreements, between June 26, 2015 and January 31, 2020, we issued 23,127,335 common shares for aggregate proceeds of $456.3 million, of which $10.0 million was from Crescent. Proceeds from the issuances were used to fund our investing activities and for other general corporate purposes. Subsequently, on January 31, 2020, we issued 5,203,016 shares in connection with the Alcentra Acquisition. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in the private offering were terminated. During the nine months ended September 30, 2021 we issued no common stock. During the nine months ended September 30, 2020, we issued 30,128 shares of our common stock to investors who have opted into our dividend reinvestment plan for proceeds of $0.6 million. Debt Debt consisted of the following as of September 30, 2021 and December 31, 2020: $ in millions September 30, 2021 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value (2) Weighted Average Debt Outstanding Weighted Average Interest Rate SPV Asset Facility $ 350.0 $ 276.7 $ 73