What changed in this filing

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2024-02-29 compared with 2023-03-13 · 1423 added, 966 removed, 1018 unchanged (70% of the section changed)

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

We are subject to financial market risks,

6 unchanged sentences

change in market interest rates will not have a material adverse effect on our net investment income.

Assuming that the consolidated statement of

assets and liabilities as of December 31, 2022 were to remain constant and that we took no actions to alter our existing interest rate

sensitivity, the following table shows the annualized impact ($ in millions) of hypothetical base rate changes in interest rate (considering

interest rate floors for floating rate instruments).

Assuming that the consolidated

statement of assets and liabilities as of December 31, 2023 were to remain constant and that we took no actions to alter our existing

interest rate sensitivity, the following table shows the annualized impact ($ in millions) of hypothetical base rate changes in interest

rate (considering interest rate floors for floating rate instruments).

We do not include our debt investments on non-accrual status

and non-incoming producing as of December 31, 2023 in this calculation.

Change in Interest Rates

Increase (Decrease) in Interest Income

Increase (Decrease) in Interest Expense

Net Increase (Decrease) in Net Investment Income

Down 200 basis points

8 unchanged sentences

of lower interest rates with respect to our portfolio of investments with fixed interest rates.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Consolidated Financial Statements

3 unchanged sentences

Consolidated Statements of Changes in Net Assets for the years ended December 31, 2023, 2022 and 2021 F-5

Consolidated Statement of Cash Flows for the years

ended December 31, 2022 and 2021 F-6

Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022 and 2021 F-6

Consolidated Schedules of Investments as of December 31, 2023 and 2022 F-7

1 unchanged sentence

Report of Independent Registered Public Accounting

To the Board of Directors and Shareholders of Kayne Anderson BDC, Inc.

To the Board of Directors and Shareholders of

Kayne Anderson BDC, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets

and liabilities, including the consolidated schedules of investments, of Kayne Anderson BDC Inc.

(the “Company”) as of December

31, 2022, and December 31, 2021, and the related consolidated statements of operations, changes in net assets and cash flows for each

of the two years in the period ended December 31, 2022, including the related notes (collectively referred to as the “consolidated

financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial

position of the Company as of December 31, 2022, and December 31, 2021, and the results of its operations, changes in its net assets and

its cash flows for each of the two years in the period ended December 31, 2022, in conformity with accounting principles generally accepted

in the United States of America.

We have audited the accompanying consolidated

statements of assets and liabilities, including the consolidated schedules of investments, of Kayne Anderson BDC Inc.

and subsidiaries

(the “Company”) as of December 31, 2023, and December 31, 2022, the related consolidated statements of operations, changes

in net assets and cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively

referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly,

in all material respects, the financial position of the Company as of December 31, 2023, and December 31, 2022, and the results of its

operations, changes in its net assets and its cash flows for each of the three years in the period ended December 31, 2023, in conformity

with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the

Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based

on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and

are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements

in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance

about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material

misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as

evaluating the overall presentation of the consolidated financial statements.

Our procedures included confirmation of securities owned

as of December 31, 2022, and December 31, 2021, by correspondence with the custodian.

We believe that our audits provide a reasonable

basis for our opinion.

These consolidated financial statements are the

responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial

statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United

States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and

the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated

financial statements in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess

the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures

that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

consolidated financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by

management, as well as evaluating the overall presentation of the consolidated financial statements.

Our procedures included confirmation

of securities owned as of December 31, 2023, by correspondence with the custodian.

We believe that our audits provides a reasonable basis

for our opinion.

/s/ PricewaterhouseCoopers LLP

Los Angeles, California

March 10, 2023

We have served as the auditor of one or more investment companies in

Kayne Anderson Funds Family since 2004.

Anderson BDC, Inc.

Statements of Assets and Liabilities

in 000’s, except share and per share amounts)

December 31, 2022

December 31, 2021

February 29, 2024

We have served as the auditor of one or more investment

companies in Kayne Anderson Funds Family since 2004.

Kayne Anderson BDC, Inc.

Consolidated Statements of Assets and Liabilities

(amounts in 000’s, except share and per

share amounts)

Investments, at fair value:

2 unchanged sentences

Cash and cash equivalents

Deferred offering costs

Receivable for principal payments on investments

3 unchanged sentences

Unamortized Corporate Credit Facility issuance costs

Loan and Security Agreement (Note 6)

Unamortized Loan and Security Agreement issuance costs

Revolving Funding Facility (Note 6)

Unamortized Revolving Funding Facility issuance costs

Revolving Funding Facility II (Note 6)

Unamortized Revolving Funding Facility II issuance costs

Subscription Credit Agreement (Note 6)

Unamortized Subscription Credit Facility issuance costs

Accrued organizational and offering costs

Notes (Note 6)

Unamortized notes issuance costs

Payable for investments purchased

3 unchanged sentences

Accrued expenses and other liabilities

Accrued excise tax expense

Total Liabilities

Commitments and contingencies (Note 8)

4 unchanged sentences

Total distributable earnings (deficit)

Total Net Assets

Total Liabilities and Net Assets

Net Asset Value Per

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Statements of Operations

in 000’s, except share and per share amounts)

For the years ended

Net Asset Value Per Common Share

See accompanying notes to consolidated

financial statements.

Kayne Anderson BDC, Inc.

Consolidated Statements of Operations

(amounts in 000’s, except share and per

share amounts)

For the years ended December 31,

Investment income from investments:

Interest income

Dividend income

Total Investment Income

22 unchanged sentences

financial statements.

Anderson BDC, Inc.

Statements of Changes in Net Assets

For the years ended

Kayne Anderson BDC, Inc.

Consolidated Statements of Changes in Net Assets

(amounts in 000’s)

For the years ended December 31,

Increase (Decrease) in Net Assets Resulting from Operations:

13 unchanged sentences

Net Assets, End of Period

See accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Statements of Cash Flows

For the years ended

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Statements of Cash Flows

(amounts in 000’s)

For the years ended December 31,

Cash Flows from Operating Activities:

4 unchanged sentences

Net accretion of discount on investments

Purchases of short-term investments, net

Sales (purchases) of short-term investments, net

Purchases of portfolio investments

6 unchanged sentences

(Increase)/decrease in receivable for principal payments on investments

Increase/(decrease) in excise tax payable

(Increase)/decrease in prepaid expenses and other assets

7 unchanged sentences

Cash Flows from Financing Activities:

Borrowings on Corporate Credit Facility, net

Borrowings/(payments) on Corporate Credit Facility, net

Borrowings on Revolving Funding Facility, net

Borrowings on Revolving Funding Facility II, net

(Payments)/Borrowings on Loan and Security Agreement, net

(Payments)/Borrowings on Subscription and Credit Agreement, net

Borrowings/(payments) on Subscription Credit Agreement, net

Payments of debt issuance costs

1 unchanged sentence

Proceeds from issuance of common shares

Proceeds from issuance of Notes

Net cash provided by financing activities

5 unchanged sentences

Non-cash financing activities not included herein consisted of reinvestment of dividends

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

1 unchanged sentence

As of December 31, 2023

(amounts in 000’s, except number of shares,

of Net Assets

Debt and Equity Investments

Private Credit Investments (5)

Aerospace & defense

Acquisition Co., Inc.

senior secured revolving loan

11.51 % (S + 6.00 %)

First lien senior secured

11.51 % (S + 6.00 %)

Fastener Distribution Holdings, LLC

First lien senior secured

12.00 % (S + 6.50 %)

First lien senior secured

delayed draw loan

12.00 % (S + 6.50 %)

Precinmac (US) Holdings, Inc.

First lien senior secured

11.46 % (S + 6.00 %)

First lien senior secured

delayed draw loan

11.46 % (S + 6.00 %)

Vitesse Systems Parent, LLC

First lien senior secured

12.63 % (S + 7.00 %)

Automobile components

Speedstar Holding LLC

First lien senior secured

12.79 % (S + 7.25 %)

First lien senior secured

delayed draw loan

12.78 % (S + 7.25 %)

Vehicle Accessories, Inc.

First lien senior secured

10.72 % (S + 5.25 %)

First lien senior secured

revolving loan

10.72 % (S + 5.25 %)

Biotechnology

Alcami Corporation (Alcami)

First lien senior secured

delayed draw loan

12.46 % (S + 7.00 %)

First lien senior secured

revolving loan

12.46 % (S + 7.00 %)

First lien senior secured

12.46 % (S + 7.00 %)

Building products

Ruff Roofers Buyer, LLC

First lien senior secured

11.08 % (S + 5.75 %)

First lien senior secured

delayed draw loan

11.08 % (S + 5.75 %)

First lien senior secured

delayed draw loan

11.08 % (S + 5.75 %)

First lien senior secured revolving loan

11.08 % (S + 5.75 %)

Eastern Wholesale Fence

First lien senior secured

13.50 % (S + 8.00 %)

First lien senior secured

revolving loan

13.50 % (S + 8.00 %)

Capital markets

Atria Wealth Solutions, Inc.

First lien senior secured

11.97 % (S + 6.50 %)

First lien senior secured

delayed draw loan

11.97 % (S + 6.50 %)

Technologies Holdings, Inc.(f/k/a Cyalume Technologies Holdings, Inc.)

First lien senior secured

10.61 % (S + 5.00 %)

Fralock Buyer LLC

First lien senior secured

11.61 % (S + 6.00 %)

First lien senior secured

revolving loan

11.61 % (S + 6.00 %)

Shrieve Chemical Company, LLC

First lien senior secured

11.90 % (S + 6.38 %)

First lien senior secured

11.61 % (S + 6.00 %)

First lien senior secured

revolving loan

11.47 % (S + 6.00 %)

Commercial services & supplies

Advanced Environmental Monitoring

First lien senior secured

12.01 % (S + 6.50 %)

Allentown, LLC

First lien senior secured

11.46 % (S + 6.00 %)

First lien senior secured

delayed draw loan

11.46 % (S + 6.00 %)

First lien senior secured

revolving loan

13.50 % (P + 5.00 %)

American Equipment Holdings LLC

First lien senior secured

11.86 % (S + 6.00 %)

First lien senior secured

delayed draw loan

11.88 % (S + 6.00 %)

First lien senior secured

delayed draw loan

11.81 % (S + 6.00 %)

First lien senior secured

revolving loan

11.74 % (S + 6.00 %)

Arborworks Acquisition LLC

First lien senior secured

senior secured revolving loan

BLP Buyer, Inc.

(Bishop Lifting Products)

First lien senior secured

11.11 % (S + 5.75 %)

First lien senior secured

delayed draw loan

11.11 % (S + 5.75 %)

First lien senior secured

revolving loan

11.11 % (S + 5.75 %)

Gusmer Enterprises, Inc.

First lien senior secured

12.47 % (S + 7.00 %)

First lien senior secured

delayed draw loan

12.47 % (S + 7.00 %)

First lien senior secured

revolving loan

12.47 % (S + 7.00 %)

PMFC Holding, LLC

First lien senior secured

13.02 % (S + 7.50 %)

First lien senior secured

delayed draw loan

13.03 % (S + 7.50 %)

First lien senior secured

revolving loan

13.03 % (S + 7.50 %)

Regiment Security Partners LLC

First lien senior secured

13.52 % (S + 8.00 %)

First lien senior secured

delayed draw loan

13.52 % (S + 8.00 %)

First lien senior secured

revolving loan

13.52 % (S + 8.00 %)

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2023

(amounts in 000’s, except number of shares, units)

of Net Assets

Packaging Buyer, Inc.

(Century Box)

lien senior secured loan

11.39 % (S + 6.00 %)

lien senior secured revolving loan

11.39 % (S + 6.00 %)

Foam Companies, Inc.

lien senior secured loan

12.75 % (S + 7.25 %)

lien senior secured loan

12.80 % (S + 7.25 %)

LLC (FCA Packaging)

lien senior secured loan

11.90 % (S + 6.50 %)

lien senior secured revolving loan

11.90 % (S + 6.50 %)

Industries, Inc.

lien senior secured loan

11.71 % (S + 6.25 %)

telecommunication services

Connex (f/k/a NTI Connect, LLC)

lien senior secured loan

11.00 % (S + 5.50 %)

(Cuisine Solutions)

13.55 % (S + 8.00 %)

PJK Produce, LLC (Keany)

lien senior secured loan

11.50 % (S + 6.00 %)

lien senior secured delayed draw loan

11.46 % (S + 6.00 %)

Line Distributors, LLC

lien senior secured loan

11.47 % (S + 6.00 %)

lien senior secured delayed draw loan

11.47 % (S + 6.00 %)

lien senior secured revolving loan

11.47 % (S + 6.00 %)

Pacific Holdings, LLC

lien senior secured loan

11.25 % (S + 5.75 %)

lien senior secured delayed draw loan

11.38 % (S + 5.75 %)

lien senior secured revolving loan

11.29 % (S + 5.75 %)

Foods, LLC (FreshEdge)

lien senior secured loan

11.07 % (S + 5.63 %)

lien senior secured loan

11.48 % (S + 6.00 %)

lien senior secured delayed draw loan

11.07 % (S + 5.63 %)

lien senior secured revolving loan

10.91 % (S + 5.63 %)

Ingredients, LLC

lien senior secured loan

11.63 % (S + 6.25 %)

lien senior secured loan

11.99 % (S + 6.50 %)

lien senior secured revolving loan

11.99 % (S + 6.50 %)

Produce Acquisition, LLC

lien senior secured delayed draw loan

11.60 % (S + 6.25 %)

lien senior secured delayed draw loan

11.60 % (S + 6.25 %)

lien senior secured revolving loan

11.60 % (S + 6.25 %)

lien senior secured loan

11.60 % (S + 6.25 %)

care providers & services

lien senior secured loan

11.47 % (S + 6.00 %)

lien senior secured delayed draw loan

11.47 % (S + 6.00 %)

lien senior secured revolving loan

11.47 % (S + 6.00 %)

Dentistry Partners

lien senior secured loan

11.97 % (S + 6.50 %)

lien senior secured delayed draw loan

11.97 % (S + 6.50 %)

lien senior secured delayed draw loan

11.97 % (S + 6.50 %)

Practice Solutions:

Dental, LLC (GPS)

lien senior secured delayed draw loan

11.72 % (S + 6.25 %)

Wave Dental Management LLC

lien senior secured revolving loan

12.35 % (S + 7.00 %)

lien senior secured loan

12.35 % (S + 7.00 %)

Dental Partners Holdings, LLC

lien senior secured loan

11.67 % (S + 6.00 %)

lien senior secured loan

11.61 % (S + 6.00 %)

lien senior secured delayed draw loan

11.67 % (S + 6.00 %)

lien senior secured delayed draw loan

11.67 % (S + 6.00 %)

lien senior secured revolving loan

11.67 % (S + 6.00 %)

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2023

(amounts in 000’s, except number of shares, units)

of Net Assets

Health care equipment & supplies

LSL Industries, LLC (LSL Healthcare)

First lien senior secured

12.15 % (S + 6.50 %)

First lien senior secured

delayed draw loan

12.15 % (S + 6.50 %)

First lien senior secured

revolving loan

12.15 % (S + 6.50 %)

Household durables

Curio Brands, LLC

First lien senior secured

10.96 % (S + 5.50 %)

First lien senior secured

revolving loan

10.96 % (S + 5.50 %)

First lien senior secured

delayed draw loan

10.96 % (S + 5.50 %)

Household products

Home Brands Group Holdings, Inc.

First lien senior secured

10.29 % (S + 4.75 %)

First lien senior secured

revolving loan

10.29 % (S + 4.75 %)

Allcat Claims Service, LLC

First lien senior secured

11.53 % (S + 6.00 %)

First lien senior secured

delayed draw loan

11.53 % (S + 6.00 %)

First lien senior secured

revolving loan

11.53 % (S + 6.00 %)

Domain Information Services Inc.

First lien senior secured

11.29 % (S + 5.75 %)

Improving Acquisition LLC

First lien senior secured

12.22 % (S + 6.50 %)

First lien senior secured

revolving loan

12.22 % (S + 6.50 %)

Leisure products

BCI Burke Holding Corp.

First lien senior secured

11.11 % (S + 5.50 %)

First lien senior secured

delayed draw loan

11.11 % (S + 5.50 %)

First lien senior secured

revolving loan

11.11 % (S + 5.50 %)

VENUplus, Inc.

(f/k/a CTM Group, Inc.)

First lien senior secured

12.29 % (S + 6.75 %)

MacNeill Pride Group

First lien senior secured

11.86 % (S + 6.25 %)

First lien senior secured

delayed draw loan

11.86 % (S + 6.25 %)

First lien senior secured

revolving loan

11.86 % (S + 6.25 %)

Trademark Global LLC

First lien senior secured

12.97 % (S +7.50%, 1.50 % is PIK)

First lien senior secured

revolving loan

12.97 % (S +7.50%, 1.50 % is PIK)

Pennsylvania Machine Works, LLC

First lien senior secured

11.61 % (S + 6.00 %)

PVI Holdings, Inc

First lien senior secured

12.16 % (S + 6.77 %)

Techniks Holdings, LLC / Eppinger Holdings Germany GMBH

First lien senior secured

12.75 % (S + 7.25 %)

First lien senior secured

revolving loan

11.80 % (S + 6.25 %)

Personal care products

DRS Holdings III, Inc.

First lien senior secured

11.71 % (S + 6.25 %)

First lien senior secured

revolving loan

11.71 % (S + 6.25 %)

PH Beauty Holdings III, Inc.

First lien senior secured

10.65 % (S + 5.00 %)

Silk Holdings III Corp.

First lien senior secured

13.10 % (S + 7.75 %)

Pharmaceuticals

Foundation Consumer Brands

First lien senior secured

11.79 % (S + 6.25 %)

First lien senior secured

revolving loan

11.79 % (S + 6.25 %)

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2023

(amounts in 000’s, except number of shares, units)

of Net Assets

Over International, LLC

First lien senior

12.46 % (S + 7.00 %)

Holdings Corp.

senior secured delayed draw loan

10.84 % (S + 5.50 %)

First lien senior secured revolving

10.84 % (S + 5.50 %)

First lien senior secured loan

10.84 % (S + 5.50 %)

Marine Medical Supply International, LLC (Unimed)

First lien senior secured loan

13.01 % (S + 7.50 %)

senior secured revolving loan

13.00 % (S + 7.50 %)

Intermediate Co 2, LLC (Peak Technologies)

senior secured loan

11.80 % (S + 6.25 %)

Holdings Group, LLC

First lien senior secured loan

15.03 % (S + 9.50%, 1.50 % is PIK)

senior secured delayed draw loan

15.03 % (S + 9.50%, 1.50 % is PIK)

apparel & luxury goods

Soccer Company, Incorporated (SCORE)

First lien senior secured loan

12.75 % (S + 7.25 %)

First lien senior secured revolving

12.75 % (S + 7.25 %)

First lien senior secured loan

12.53 % (S + 7.00 %)

First lien senior secured loan

12.53 % (S + 7.00 %)

Garments, LLC

senior secured loan

13.00 % (S + 7.50 %)

companies & distributors

Meteor Acquisition, LLC (Meteor)

First lien senior secured loan

12.45 % (S + 7.00 %)

First lien senior secured loan

11.61 % (S+ 6.00 %)

Automated Manufacturing, LLC

First lien senior secured loan

12.61 % (S + 7.00 %)

First lien senior secured loan

12.61 % (S + 7.00 %)

First lien senior secured delayed

12.61 % (S + 7.00 %)

First lien senior secured revolving

12.61 % (S + 7.00 %)

First lien senior secured loan

11.24 % (S + 5.75 %)

First lien senior secured loan

11.27 % (S + 5.75 %)

First lien senior secured delayed

11.24 % (S + 5.75 %)

First lien senior secured revolving

11.24 % (S + 5.75 %)

Fastener Company, LLC (EFC International)

First lien senior secured loan

12.00 % (S + 6.50 %)

Cable Group, LLC

First lien senior secured loan

10.96 % (S + 5.50 %)

First lien senior secured loan

10.96 % (S + 5.50 %)

Images Acquisition, LLC

First lien senior secured loan

11.75 % (S + 6.25 %)

First lien senior secured delayed

11.75 % (S + 6.25 %)

First lien senior secured loan

11.70 % (S + 6.25 %)

First lien senior secured loan

11.75 % (S + 6.25 %)

First lien senior secured revolving

11.75 % (S + 6.25 %)

Holdings, Inc.

First lien senior secured delayed

11.20 % (S + 5.75 %)

First lien senior secured delayed

11.20 % (S + 5.75 %)

First lien senior secured revolving

11.20 % (S + 5.75 %)

First lien senior secured loan

11.20 % (S + 5.75 %)

Acquisitions, Inc.

First lien senior secured loan

11.61 % (S + 6.25 %)

First lien senior secured delayed

11.61 % (S + 6.25 %)

First lien senior secured revolving

11.61 % (S + 6.25 %)

Safety & Survivability Corporation (USSC)

First lien senior secured loan

11.79 % (S + 6.25 %)

First lien senior secured loan

11.79 % (S + 6.25 %)

First lien senior secured delayed

11.79 % (S + 6.25 %)

senior secured revolving loan

11.79 % (S + 6.25 %)

telecommunication services

Communications, LLC

First lien senior secured loan

11.53 % (S + 6.00 %)

First lien senior secured delayed

11.53 % (S + 6.00 %)

First lien senior secured delayed

11.53 % (S + 6.00 %)

First lien senior secured revolving

11.53 % (S + 6.00 %)

senior secured loan

11.53 % (S + 6.00 %)

Private Credit Debt Investments

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2023

(amounts in 000’s, except number of shares, units)

Percentage of Net Assets

Equity Investments(9)

Automobile components

Vehicle Accessories, Inc.

- Class A common

Vehicle Accessories, Inc.

Commercial services & supplies

American Equipment Holdings LLC- Class A units

BLP Buyer, Inc.

(Bishop Lifting Products) - Class A common

Arborworks Acquisition LLC – Class A preferred units

Arborworks Acquisition LLC – Class B preferred units

Arborworks Acquisition LLC – Class A common units

Food products

BC CS 2, L.P.

(Cuisine Solutions)

City Line Distributors, LLC - Class A units

Gulf Pacific Holdings, LLC - Class A common

Gulf Pacific Holdings, LLC - Class C common

IF&P Foods, LLC (FreshEdge) - Class A preferred

IF&P Foods, LLC (FreshEdge) - Class B common

Siegel Parent, LLC

Healthcare equipment & supplies

LSL Industries, LLC (LSL Healthcare)

Domain Information Services Inc.

Specialty retail

Sundance Direct Holdings, Inc.

Textiles, apparel & luxury goods

American Soccer Company, Incorporated (SCORE)

Total Private Equity Investments

Total Private Investments

of Net Assets

Short-Term Investments

First American Treasury Obligations Fund - Institutional Class Z, 5.21%

Total Short-Term Investments

Total Investments

Liabilities in Excess of Other Assets

(1) As of December 31, 2023, all investments are non-controlled, non-affiliated investments.

Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.

(2) Debt investments are pledged to the Company’s credit facilities, and a single debt investment may be divided into parts that are individually pledged to separate credit facilities.

(3) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

(4) As of December 31, 2023, the tax cost of the Company’s investments approximates their amortized cost.

(5) Loan contains a variable rate structure, that may be subject to an interest rate floor.

Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Funding Rate (“SOFR” or “S”) (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or “P”).

accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2023

(amounts in 000’s, except number of shares, units)

(6) Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940.

The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets.

As of December 31, 2023, 4.8% of the Company’s total assets were in non-qualifying investments.

(7) The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication.

In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss.

Certain lenders represent a “first out” portion of the investment and have priority to the “last-out” portion with respect to payments of principal and interest.

(8) Debt investment on non-accrual status as of December 31, 2023 .

(9) Non-income producing investment.

(10) In November 2023, the Company completed a restructure of the investment

in Arborworks Acquisition LLC whereby the existing term loan and revolver were restructured to a new term loan and preferred and common

KABDC Corp II, LLC, a wholly owned subsidiary of the Company, holds the preferred and common equity of Arborworks Acquisition

LLC that the Company owns following this restructure.

(11) The Company has a senior secured loan in an investment vehicle (BC CS 2, L.P.) that is collateralized by a preferred stock investment in Cuisine Solutions, Inc..

(12) The Company owns 0.19% of the common equity and 0.43% of the preferred equity of Vehicle Accessories, Inc.

(13) The Company owns 27.15% of a pass-through, taxable limited liability company, KSCF IV Equity Aggregator Blocker, LLC (the “Aggregator Blocker”), which holds the Company’s equity investments in American Equipment Holdings LLC, Gulf Pacific Holdings, LLC, IF&P Foods, LLC (FreshEdge) and LSL Industries, LLC (LSL Healthcare).

Through the Company’s ownership of the Aggregator Blocker, the Company owns the respective units of each company listed above in the Schedule of Investments.

(14) The Company owns 0.53% of the common equity BLP Buyer, Inc.

(Bishop Lifting Products).

(15) KABDC Corp, LLC, a wholly owned subsidiary of the Company, owns 0.62% of the common equity of City Line Distributors, LLC.

(16) The Company owns 33.95% of a pass-through limited liability company, KSCF IV Equity Aggregator, LLC (the “Aggregator”), which holds the Company’s equity investments in Siegel Parent, LLC and American Soccer Company, Incorporated (SCORE).

The Aggregator’s ownership of Siegel Parent, LLC is 1.1442%.

Through the Company’s ownership of the Aggregator, the Company owns the respective units of each company listed above in the Schedule of Investments.

(17) The indicated rate is the yield as of December 31, 2023.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2022

(amounts in 000’s)

120 unchanged sentences

9.98 % (L + 5.25 %)

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

103 unchanged sentences

9.93 % (S + 6.00 %)

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

83 unchanged sentences

10.15 % (L + 5.50 %)

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

89 unchanged sentences

Private Credit Debt Investments

See accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2022

See accompanying notes to consolidated

financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2022

(amounts in 000’s)

of Net Assets

12 unchanged sentences

IF&P Foods, LLC (FreshEdge) – Class A common

IF&P Foods, LLC (FreshEdge)

– Class B common (9)

IF&P Foods, LLC

(FreshEdge) – Class B common (9)

Gulf Pacific Holdings, LLC - Class A common (9)

9 unchanged sentences

of Net Assets

Short-Term Investments

American Treasury Obligations Fund - Institutional Class Z, 4.16% (12)

5 unchanged sentences

(3) As of December 31, 2022, the tax cost of the Company’s investments approximates their amortized cost.

See accompanying notes to

consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2022

(amounts in 000’s)

(4) Loan contains a variable rate structure, that may be subject to an interest rate floor.

21 unchanged sentences

Kayne Anderson BDC, Inc.

Schedule of Investments

As of December 31, 2021

(amounts in 000’s)

of Net Assets

and Equity Investments

Credit Investments (4)

First lien senior

8.00 % (L + 7.00 %)

First lien senior secured delayed

8.00 % (L + 7.00 %)

Accessories, Inc.

First lien senior secured loan

6.50 % (L + 5.50 %)

lien senior secured revolving loan

6.50 % (L + 5.50 %)

(US) Holdings, Inc.

First lien senior secured loan

7.00 % (L + 6.00 %)

First lien senior secured delayed

7.00 % (L + 6.00 %)

First lien senior secured loan

8.00 % (L + 7.00 %)

CGI Automated

Manufacturing, LLC

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured delayed

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

Wholesale Fence

First lien senior secured revolving

8.00 % (L + 7.00 %)

First lien senior secured loan

8.00 % (L + 7.00 %)

First lien senior secured loan

8.00 % (L + 7.00 %)

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured delayed

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

Distribution Holdings, LLC

First lien senior secured delayed

8.00 % (L + 7.00 %)

First lien senior secured loan

8.00 % (L + 7.00 %)

Acquisition, LLC

First lien senior secured delayed

7.25 % (L + 6.25 %)

First lien senior secured revolving

7.25 % (L + 6.25 %)

First lien senior secured loan

7.25 % (L + 6.25 %)

Refrigeration

First lien senior secured loan

7.50 % (L + 6.50 %)

Safety & Survivability Corporation (USSC)

First lien senior secured loan

7.00 % (L + 6.00 %)

First lien senior secured revolving

7.00 % (L + 6.00 %)

First lien senior secured delayed

7.00 % (L + 6.00 %)

& professional services

International, LLC

First lien senior secured loan

7.50 % (L + 6.50 %)

Environmental Monitoring (5)

First lien senior secured loan

8.00 % (L + 7.00 %)

Equipment Holdings LLC

First lien senior secured delayed

7.00 % (L + 6.00 %)

First lien senior secured revolving

7.00 % (L + 6.00 %)

First lien senior secured loan

7.00 % (L + 6.00 %)

Acquisition LLC

First lien senior secured revolving

7.00 % (L + 6.00 %)

First lien senior secured loan

8.00 % (L + 7.00 %)

Enterprises, Inc.

First lien senior secured delayed

7.00 % (L + 6.00 %)

First lien senior secured revolving

7.00 % (L + 6.00 %)

First lien senior secured loan

7.00 % (L + 6.00 %)

PMFC Holding,

First lien senior secured delayed

7.50 % (L + 6.50 %)

First lien senior secured loan

7.50 % (L + 6.50 %)

First lien senior secured revolving

7.50 % (L + 6.50 %)

Security Partners LLC

First lien senior secured loan

8.00 % (L + 7.00 %)

First lien senior secured delayed

8.00 % (L + 7.00 %)

First lien senior secured revolving

8.00 % (L + 7.00 %)

Kleinfelder Group, Inc.

lien senior secured loan

6.25 % (L + 5.25 %)

durables & apparel

Holding Corp.

First lien senior secured loan

6.75 % (L + 5.75 %)

First lien senior secured revolving

6.75 % (L + 5.75 %)

First lien senior secured delayed

6.75 % (L + 5.75 %)

First lien senior secured loan

9.50 % (L + 8.00 %)

First lien senior secured loan

8.50 % (L + 7.00%, includes 1.275% PIK)

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured delayed

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

First lien senior secured revolving

7.50 % (L + 6.50 %)

First lien senior secured delayed

7.50 % (L + 6.50 %)

First lien senior secured loan

7.50 % (L + 6.50 %)

Cap Company, Inc.

First lien senior secured loan

7.50 % (L + 6.50 %)

First lien senior secured loan

7.00 % (L + 6.00 %)

First lien senior secured revolving

7.00 % (L + 6.00 %)

First lien senior secured delayed

7.00 % (L + 6.00 %)

Garments, LLC

lien senior secured loan

7.00 % (L + 6.00 %)

Wealth Solutions, Inc.

lien senior secured loan

7.00 % (L + 6.00 %)

See accompanying notes to

financial statements.

Kayne Anderson BDC, Inc.

Schedule of Investments

As of December 31, 2021

(amounts in 000’s)

of Net Assets

and Equity Investments

Credit Investments (4)

First lien senior secured loan

7.00 % (L + 6.00 %)

lien senior secured revolving loan

7.00 % (L + 6.00 %)

care equipment & services

First lien senior secured loan

6.75 % (L + 5.75 %)

First lien senior secured delayed

6.75 % (L + 5.75 %)

First lien senior secured revolving

6.75 % (L + 5.75 %)

Dermatologists

of Southwestern Ohio, LLC

First lien senior secured loan

9.50 % (L + 8.50 %)

Dentistry Partners

First lien senior secured loan

6.75 % (L + 5.75 %)

First lien senior secured delayed

6.75 % (L + 5.75 %)

OMH-HealthEdge

Holdings, LLC

First lien senior secured loan

6.50 % (L + 5.25 %)

Partners Holdings, LLC

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured delayed

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

Dermatology Management Holdings, LLC

lien senior secured loan

7.00 % (L + 6.00 %)

& personal products

First lien senior secured loan

6.75 % (L + 5.75 %)

First lien senior secured revolving

6.75 % (L + 5.75 %)

Group Holdings, Inc.

First lien senior secured loan

6.00 % (L + 5.00 %)

First lien senior secured revolving

6.00 % (L + 5.00 %)

Beauty Holdings III, Inc.

lien senior secured loan

5.18 % (L + 5.00 %)

Technologies Holdings, Inc.

First lien senior secured loan

6.50 % (L + 5.50 %)

Companies, Inc.

First lien senior secured loan

7.00 % (L + 6.00 %)

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

First lien senior secured revolving

7.00 % (L + 6.00 %)

lien senior secured loan

7.00 % (L + 6.00 %)

Pharmaceuticals,

biotech & life sciences

Consumer Brands

First lien senior secured loan

7.38 % (L + 6.38 %)

lien senior secured revolving loan

7.38 % (L + 6.38 %)

Holdings Group, LLC (5)

lien senior secured loan

7.00 % (L + 6.00 %)

Acquisition LLC

First lien senior secured loan

7.50 % (L + 6.50 %)

Peak Technologies

First lien senior secured loan

8.09 % (L + 7.09 %)

lien senior secured loan

7.50 % (L + 6.50 %)

Telecommunication

Communications, LLC

First lien senior secured loan

6.50 % (L + 5.50 %)

First lien senior secured delayed

6.50 % (L + 5.50 %)

First lien senior secured revolving

6.50 % (L + 5.50 %)

First lien senior secured loan

6.50 % (L + 5.50 %)

Technology Solutions, Inc.

First lien senior secured revolving

6.00 % (L + 5.00 %)

First lien senior secured delayed

6.00 % (L + 5.00 %)

First lien senior secured loan

6.00 % (L + 5.00 %)

Connex (f/k/a NTI Connect, LLC)

lien senior secured loan

6.00 % (L + 5.00 %)

Private Credit Debt Investments

See accompanying notes to

financial statements.

Kayne Anderson BDC, Inc.

Schedule of Investments

As of December 31, 2021

(amounts in 000’s)

of Net Assets

Equity Investments

Food & beverage

Parent, LLC (6)

Private Equity Investments

Private Investments

Short-Term Investments

American Treasury Obligations Fund - Institutional Class Z, 0.01% (7)

Total Short-Term Investments

Total Investments

Liabilities in Excess of Other Assets

(1) As of December 31, 2021, all investments are non-controlled, non-affiliated investments.

(2) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

(3) As of December 31, 2021, the tax cost of the Company’s investments approximates their amortized cost.

(4) Loan contains a variable rate structure, that may be subject to an interest rate floor.

Variable rate loans bear interest at a rate that may be determined by reference to either the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR) or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

(5) The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication.

In exchange for the higher interest rate, the “last-out” portion is at a greater risk of loss.

Certain lenders represent a “first out” portion of the investment and have priority to the “last-out” portion with respect to payments of principal and interest.

(6) The Company owns 50% of a pass-through LLC, KSCF IV Equity Aggregator, LLC (the “Aggregator”), which holds 500 Class A units of Siegel Parent, LLC.

The Aggregator’s ownership of Siegel Parent, LLC is 1.1442%.

Through the Company’s ownership of the Aggregator, the Company owns 250 Class A units of Siegel Parent, LLC.

(7) The indicated rate is the yield as of December 31, 2021.

See accompanying notes to

financial statements.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Kayne Anderson BDC, Inc.

7 unchanged sentences

to make investments in middle-market companies and commenced operations on February 5, 2021.

The Company is managed by KA Credit Advisors,

LLC (the “Advisor”), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P.

(“Kayne Anderson”),

a prominent alternative investment management firm.

The Advisor is registered with the United States Securities and Exchange Commission

(the “SEC”) under the Investment Advisory Act of 1940, as amended.

Subject to the overall supervision of the Company’s

board of directors (the “Board”), the Advisor is responsible for originating prospective investments, conducting research

and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments,

determining the value of the investments and monitoring its investments and portfolio companies on an ongoing basis.

The Board consists

of seven directors, four of whom are independent.

The Company’s investment objective is to

generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.

As of December 31, 2023, the Company has entered

1 unchanged sentence

common stock.

See Note 12 – Subsequent Events.

KA Credit Advisors, LLC (the “Advisor”) is an indirect

subsidiary of Kayne Anderson Capital Advisors, L.P.

(“KACALP” or “Kayne Anderson”).

The Advisor is registered

with the Securities and Exchange Commission (“SEC”) as an investment advisor under the Investment Advisory Act of 1940, as

Subject to the overall supervision of the Company’s board of directors (the “Board”), the Advisor is responsible

for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment

opportunities, negotiating and structuring investments, determining the value of the investments and monitoring its investments and portfolio

companies on an ongoing basis.

The Board consists of seven directors, four of whom are independent.

See Note 12 – Subsequent Events.

The Company’s investment objective

is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.

The Company conducts private offerings of

its Common Stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the

On December 5, 2023, the Company completed its final close of subscription agreements with investors.

The Company conducts private offerings of its

Common Stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the

“Securities Act”).

At the closing of any private offering, each investor will make a capital commitment (a “Capital

Commitment”) to purchase shares of its Common Stock (“Shares”) pursuant to a subscription agreement entered into with

Investors will be required to fund drawdowns to purchase Shares up to the amount of their respective Capital Commitments

each time the Company delivers a notice to the investors.

Commitment”) to purchase shares of its common stock pursuant to a subscription agreement entered into with the Company.

will be required to fund drawdowns to purchase shares of common stock up to the amount of their respective Capital Commitments each time

the Company delivers a notice to the investors.

Following the initial closing of the private offering (the “Initial Closing”)

1 unchanged sentence

of the private offering.

A “Liquidity Event” is defined as (a) an initial public offering of Shares (the “Initial

Public Offering”) or the listing of Shares on an exchange (together with the Initial Public Offering, an “Exchange Listing”),

(b) the sale of the Company or (c) a disposition of the Company’s investments and distribution of the net proceeds (after repayment

of borrowed funds or other forms of leverage) to the Company’s investors.

A “Liquidity Event” is defined as (a) an initial public offering of shares of common stock (the

“Initial Public Offering”) or the listing of shares of common stock on an exchange (together with the Initial Public Offering,

an “Exchange Listing”), (b) the sale of the Company or (c) a disposition of the Company’s investments and distribution

of the net proceeds (after repayment of borrowings under credit facilities and issuances of senior unsecured notes) to the Company’s

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

Significant Accounting Policies

2 unchanged sentences

of America (“GAAP”).

The Company is an investment company and follows accounting and reporting guidance of the Financial

Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 — “Financial Services — Investment

Companies.” In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the

fair statement of the consolidated financial statements for the periods presented, have been included.

Consolidation —As provided

under Regulation S-X and ASC Topic 946 – “Financial Services – Investment Companies”, the Company will generally

not consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business

consists of providing services to the Company.

Accordingly, the Company consolidated the accounts of the Company’s wholly-owned

subsidiaries, Kayne Anderson BDC Financing, LLC, (“KABDCF”) and KABDC Corp, LLC, in its consolidated financial statements.

All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates —the

preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported

amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the

reported amounts of income and expenses during the period.

The Company is an investment company and follows accounting and reporting guidance of the Financial Accounting

Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 — “Financial Services — Investment Companies.”

In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of

the consolidated financial statements for the periods presented, have been included.

Consolidation —As provided under

Regulation S-X and ASC Topic 946 – “Financial Services – Investment Companies”, the Company will generally not

consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business consists

of providing services to the Company.

Accordingly, the Company consolidated the accounts

of the Company’s wholly-owned subsidiaries, Kayne Anderson BDC Financing, LLC, (“KABDCF”);

Kayne Anderson BDC Financing

II, LLC (“KABDCF II”);

KABDC Corp, LLC and KABDC Corp II, LLC in its consolidated financial statements.

All significant intercompany

balances and transactions have been eliminated in consolidation.

KABDC Corp, LLC and KABDC Corp II, LLC are Delaware LLCs that have elected

to be treated as corporations for U.S.

tax purposes and were formed to facilitate compliance with the requirements to be treated as a

RIC under the Code by holding (directly or indirectly through a subsidiary) equity or equity related investments in portfolio companies

organized as limited liability companies or limited partnerships.

Use of Estimates —the preparation

of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount

of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported

amounts of income and expenses during the period.

Actual results could differ materially from those estimates.

2 unchanged sentences

fund accounts.

Cash equivalents, which are the Company’s investments in money market fund accounts, are presented on the Company’s

consolidated schedule of investments, and within investments on the Company’s consolidated statement of assets and liabilities.

Investment Valuation, Fair Value —the

3 unchanged sentences

Standards Codification, Fair Value Measurement and Disclosures (“ASC 820”).

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act,

establishing requirements to determine fair value in good faith for purposes of the 1940 Act.

Pursuant to Rule 2a-5 and effective

September 1, 2022, the Board of Directors designated the Advisor as the “valuation designee” to perform fair value determinations

of the Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board.

The valuation designee will perform

fair valuation of the Company’s portfolio holdings in accordance with the Company’s Valuation Program, as approved by the

The Advisor’s internal valuation process did not materially change as a result of Rule 2a-5.

Pursuant to Rule 2a-5 under the 1940 Act,

the Board of Directors has designated the Advisor as the “valuation designee” to perform fair value determinations of the

Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board.

The valuation designee performs fair

valuation of the Company’s portfolio holdings in accordance with the Advisor’s Valuation Program, as approved by the Board.

Traded Investments (Level 1 or Level 2)

Investments for which market quotations are

readily available will typically be valued at those market quotations.

Traded investments such as corporate bonds, preferred stock, bank

notes, loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker,

the agent bank, syndicate bank or principal market maker.

When price quotes for investments are not available, or such prices are stale

or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the Company’s

valuation process for investments that are privately issued or otherwise restricted as to resale.

The Company may also invest, to a lesser

extent, in equity securities purchased in conjunction with debt investments.

While the Company anticipates these equity securities to

be issued by privately held companies, the Company may hold equity securities that are publicly traded.

Equity securities listed on any

exchange other than the NASDAQ Stock Market, Inc.

(“NASDAQ”) are valued, except as indicated below, at the last sale price

on the business day as of which such value is being determined.

If there has been no sale on such day, the securities are valued at the

mean of the most recent bid and ask prices on such day.

Securities admitted to trade on the NASDAQ are valued at the NASDAQ official

closing price.

Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as

of which such value is being determined at the close of the exchange representing the principal market for such securities.

Equity securities

traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing

Investments for which market quotations are readily

available will typically be valued at those market quotations.

Traded investments such as corporate bonds, preferred stock, bank notes,

broadly syndicated loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent

broker, the agent bank, syndicate bank or principal market maker.

When price quotes for investments are not available, or such prices

are stale or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the

Advisor’s valuation process for investments that are privately issued or otherwise restricted as to resale.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

The Company may also invest, to a lesser extent,

in equity securities purchased in conjunction with debt investments.

While the Company anticipates these equity securities to be issued

by privately held companies, the Company may hold equity securities that are publicly traded.

Equity securities listed on any exchange

other than the NASDAQ Stock Market, Inc.

(“NASDAQ”) are valued, except as indicated below, at the last sale price on the business

day as of which such value is being determined.

If there has been no sale on such day, the securities are valued at the mean of the most

recent bid and ask prices on such day.

Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price.

securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is

being determined at the close of the exchange representing the principal market for such securities.

Equity securities traded in the over-the-counter market,

but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

Non-Traded Investments (Level 3)

Investments that are privately issued or otherwise restricted as to

resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the Company’s

Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment

of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair

value of the security on the valuation date.

The Company expects that a significant majority of its investments will be Level 3 investments.

Unless otherwise determined by the Advisor, the following valuation process is used for the Company’s Level 3 investments:

Investments that are privately issued or otherwise

restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the

Company’s Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price

that in the judgment of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most

fairly reflects fair value of the security on the valuation date.

The Company expects that a significant majority of its investments will

be Level 3 investments.

Unless otherwise determined by the Advisor, the following valuation process is used for the Company’s

Level 3 investments:

Valuation Designee .

4 unchanged sentences

● Valuation Firm .

Quarterly, third-party valuation firms engaged by the Advisor review the valuation methodologies and calculations employed for each of the Company’s investments that the Advisor has placed on the “watch list” and approximately 25 % of the Company’s remaining investments.

The third-party valuation firms will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis.

The quarterly report issued by these third-party valuation firms will provide positive assurance on the fair values of the investments reviewed.

The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value

as permitted by Rule 2a-5 under the 1940 Act.

The Audit Committee shall aid the Board in overseeing the Advisor’s fair valuation

of securities that are not publicly traded or for which current market values are not readily available.

The Audit Committee shall

meet quarterly to review the fair value determinations, processes and written reports of the Advisor and third-party valuation firms

as part of the Board’s oversight responsibilities.

Quarterly, a third-party valuation firm engaged by the Advisor reviews the valuation methodologies and calculations employed for each of the Company’s investments that the Advisor has placed on the “watch list” and approximately 25 % of the Company’s remaining investments.

The third-party valuation firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis.

The quarterly report issued by the third-party valuation firm will provide positive assurance on the fair values of the investments reviewed.

The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act.

The Audit Committee shall aid the Board in overseeing the Advisor’s fair valuation of securities that are not publicly traded or for which current market values are not readily available.

The Audit Committee shall meet quarterly to review the fair value determinations, processes and written reports of the Advisor as part of the Board’s oversight responsibilities .

Determination of fair value involves subjective

1 unchanged sentence

Accordingly, the notes to the Company’s financial statements will express the uncertainty with respect

to the possible effect of such valuations, and any change in such valuations, on our financial statements.

to the possible effect of such valuations, and any change in such valuations, on the Company’s financial statements.

Interest Income Recognition —

1 unchanged sentence

(“PIK”) interest.

Discounts from and premiums to par value on investments purchased are accreted/amortized into interest

income over the life of the respective security using the effective yield method.

To the extent loans contain PIK provisions, PIK interest,

computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the

principal balance of the loan.

PIK interest income added to the principal balance is generally collected upon repayment of the outstanding

To maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders in the form

of dividends for the year the income was earned, even though the Company has not yet collected the cash.

The amortized cost of investments

represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.

Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income

over the life of the respective security using the effective yield method.

To the extent loans contain PIK provisions, PIK interest, computed

at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal

balance of the loan.

PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal.

The Company does not accrue PIK interest if, in the opinion of the Advisor, the portfolio company valuation indicates that the PIK interest

is not likely to be collectible.

If the Company believes PIK is not expected to be realized, the investment generating PIK will be placed

on non-accrual status.

When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed

through PIK interest income.

Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status.

maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends

for the year the income was earned, even though the Company has not yet collected the cash.

The amortized cost of investments represents

the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.

For years ended December 31, 2023,

2022 and 2021, the Company had $ 1,652 , $ 151 and $ 173 , respectively, of PIK interest included in interest income, which represents 1.0 %,

0.2 % and 0.9 %, respectively, of aggregate interest income.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

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.

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

Loans are generally placed on non-accrual status

when it has been determined that a significant impairment in the financial condition and ability of the borrower to repay principal and

interest has occurred and is expected to continue such that it is probable the collectability of full amount of the loan (principal and

interest) is doubtful.

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 the Company’s judgment regarding

collectability.

Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer

any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, are likely to remain

The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise

value of the portfolio company) or is in the process of collection.

Debt Issuance Costs —Costs

incurred by the Company related to the issuance of its debt (credit facilities) are capitalized and amortized over the period the debt

is outstanding.

The Company has classified the costs incurred to issue its credit facilities as a deduction from the carrying value of

the credit facilities on the Statement of Assets and Liabilities.

For the purpose of calculating the Company’s asset coverage ratios

pursuant to the 1940 Act, deferred issuance costs are not deducted from the carrying value of debt or preferred stock.

If cash payments

are received subsequent to a loan being placed on non-accrual status, these payments will first be applied to previously accrued but uncollected

interest, then to recover the principal.

Additionally, any original issue discount and market discount are no longer accreted to interest

income as of the date the loan is placed on non-accrual status.

Non-accrual loans are restored to accrual status when past due principal

and interest are paid or there is no longer a reasonable doubt that such principal or interest will be collected in full and, in the Company’s

judgment, principal and interest are likely to remain current.

The Company may make exceptions to this policy if the loan has sufficient

collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection.

As of December

31, 2023, the Company had one debt investment on non-accrual status, which represented 0.4 % and 0.4 % of total debt investments at cost

and fair value, respectively.

As of December 31, 2022, the Company did not have any debt investments in portfolio companies on non-accrual

Debt Issuance Costs —Costs incurred

by the Company related to the issuance of its debt (credit facilities) are capitalized and amortized over the period the debt is outstanding.

The Company has classified the costs incurred to issue its credit facilities as a deduction from the carrying value of the credit facilities

on the Statement of Assets and Liabilities.

For the purpose of calculating the Company’s asset coverage ratios pursuant to the 1940

Act, deferred issuance costs are not deducted from the carrying value of debt or preferred stock.

Dividends to Common Stockholders —Distributions

to common stockholders are recorded on the record date.

The amount to be paid out as a dividend is determined by the Company’s

board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed

taxable income carried forward from the prior year for distribution in the current year.

Net realized capital gains, if any, are generally

distributed, although the Company may decide to retain such capital gains for investment.

The amount to be paid out as a dividend is determined by the Company’s board

of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed taxable

income carried forward from the prior year for distribution in the current year.

Net realized capital gains, if any, are generally distributed,

although the Company may decide to retain such capital gains for investment.

Organizational Costs —organizational

expenses include costs and expenses relating to the formation and organization of the Company.

The Company has agreed to reimburse the

Advisor for these costs which are expensed as incurred.

Offering Costs —offering

costs include costs and expenses incurred in connection with the offering of the Company’s common stock.

These initial costs are

capitalized as deferred offering expenses and included in prepaid expenses and other assets on the Statement of Assets and Liabilities.

These costs are amortized over a twelve-month period beginning with the commencement of operations.

These expenses consist primarily

of legal fees and other costs incurred in connection with the Company’s share offerings, the preparation of the Company’s

registration statement and registration fees.

The Company has agreed to reimburse the Advisor for these costs.

Income Taxes —it is the

Company’s intention to continue to be treated as and to qualify each year for special tax treatment afforded a RIC under the Code.

As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution

of earnings to stockholders, the Company will not be subject to U.S.

federal income tax.

The Company must pay distributions equal to 90 % of its investment company

taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all of its taxable income (ordinary

income, short-term capital gains and long-term capital gains) to avoid federal income taxes.

The Company will be subject to federal income

tax on any undistributed portion of income.

For purposes of the distribution test, the Company may elect to treat as paid on the last

day of its taxable year all or part of any distributions that are declared after the end of its taxable year if such distributions are

declared before the due date of its tax return, including any extensions.

All RICs are subject to a non-deductible 4%

excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements.

the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for

the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable

year, and (iii) undistributed amounts from previous years on which the Company paid no U.S.

The Company has reimbursed the Advisor

for these costs which are expensed as incurred.

Offering Costs —offering costs

include costs and expenses incurred in connection with the offering of the Company’s common stock.

These initial costs were capitalized

as deferred offering expenses and included in prepaid expenses and other assets on the Statement of Assets and Liabilities.

were amortized over a twelve-month period beginning with the commencement of operations.

These expenses consist primarily of legal fees

and other costs incurred in connection with the Company’s share offerings, the preparation of the Company’s registration statement

and registration fees.

The Company reimbursed the Advisor for these costs.

Income Taxes —it is the Company’s

intention to continue to be treated as and to qualify each year for special tax treatment afforded a RIC under the Code.

As long as the

Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution of earnings to

stockholders, the Company will not be subject to U.S.

federal income tax.

A distribution will be

treated as paid during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December

of such year, payable to stockholders of record on a date during such months and paid by the Company no later than January of the following

Any such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of

the year the distributions are declared, rather than when the distributions are actually received.

The Company must pay distributions equal to 90 %

of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all

of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes.

will be subject to federal income tax on any undistributed portion of income.

For purposes of the distribution test, the Company may elect

to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year

if such distributions are declared before the due date of its tax return, including any extensions.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

The Company evaluates tax positions taken

or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

All RICs are subject to a non-deductible 4% excise

tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements.

To avoid the tax,

the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar

year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii)

undistributed amounts from previous years on which the Company paid no U.S.

federal income tax.

A distribution will be treated as paid

during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year,

payable to stockholders of record on a date during such months and paid by the Company no later than January of the following year.

such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year

the distributions are declared, rather than when the distributions are actually received.

The Company evaluates tax positions taken or expected

to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be

sustained by the applicable tax authority.

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including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.

LIBOR Transition — The

Financial Conduct Authority (“FCA”) announced that certain London Interbank Offered Rate (“LIBOR”) tenors

in certain currencies ceased to be provided at the end of 2021 with all remaining tenors ceasing in June 2023.

Alternatives to LIBOR have

been established, or are in development in most major currencies, including the Secured Overnight Financing Rate (“SOFR”)

that is intended to replace U.S.

dollar LIBOR.

Markets are developing in response to these new reference rates.

The LIBOR transition has

become increasingly well-defined in advance of its anticipated discontinuation, but uncertainty remains related to the liquidity impact

of the change in rates, and how to appropriately adjust these rates at the time of transition.

At this time, it is not possible to predict

fully the ultimate outcome of these changes.

Commitments and Contingencies —in

the normal course of business, the Company may enter into contracts that provide a variety of general indemnifications.

to the Company under these arrangements could involve future claims that may be made against the Company.

Any exposure to

the Company under these arrangements could involve future claims that may be made against the Company.

Currently, no such claims exist

1 unchanged sentence

Agreements and Related Party Transactions

Administration Agreement —on

February 5, 2021, the Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and will provide

or oversee the performance of its required administrative services and professional services rendered by others, which will include (but

not limited to), accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation and

filing of its tax returns, and preparation of financial reports provided to its stockholders and filed with the SEC.

The Company will reimburse the Administrator

for its costs and expenses incurred in performing its obligations under the Administration Agreement, which may include, after completion

Administration Agreement —on February

5, 2021, the Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and will provide or

oversee the performance of its required administrative services and professional services rendered by others, which will include (but

are not limited to), accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation

and filing of its tax returns, and preparation of financial reports provided to its stockholders and filed with the SEC.

On March 7, 2023,

the Board approved a one-year renewal of the Administration Agreement through March 15, 2024.

The Company will reimburse the Administrator for

its costs and expenses incurred in performing its obligations under the Administration Agreement, which may include, after completion

of our Exchange Listing, its allocable portion of office facilities, overhead, and compensation paid to or compensatory distributions

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be terminated by either party with 60 days’ written notice.

On March 7, 2023, the Board approved a one-year renewal of the Investment

Advisory Agreement through March 15, 2024.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

Base Management Fee

1 unchanged sentence

fee will be calculated at an annual rate of 0.90 % of the fair market value of the Company’s investments including, in each case,

assets purchased with borrowed funds or other forms of leverage, but excluding cash, U.S.

government securities and commercial paper

instruments maturing within one year of purchase.

After an Exchange Listing, the base management fee will be calculated at an annual

rate of 1.50 % of the fair market value of the Company’s investments.

However, following an Exchange Listing, if borrowed funds

or other forms of leverage utilized to finance the Company’s investments is greater than a debt-to-equity ratio of 1.0x, the base

management fee will be 1.00 % of the fair market value of the portion of the Company’s investments financed with borrowed funds

or other forms of leverage above a 1.0x debt-to-equity ratio.

The base management fee will be payable quarterly

in arrears and calculated based on the average of the Company’s fair market value of investments, at the end of the two most recently

completed calendar quarters, including, in each case, assets purchased with borrowed funds or other forms of leverage, but excluding

assets purchased with borrowings under credit facilities and issuances of senior unsecured notes, but excluding cash, U.S.

securities and commercial paper instruments maturing within one year of purchase.

The base management fee is payable quarterly in

arrears and calculated based on the average of the Company’s fair market value of investments, at the end of the two most recently

completed calendar quarters, including, in each case, assets purchased with borrowings under credit facilities and issuances of senior

unsecured notes, but excluding cash, U.S.

government securities and commercial paper instruments maturing within one year of purchase.

Base management fees for any

partial quarter will be appropriately pro-rated.

For the years ended December 31, 2022 and

2021, the Company incurred base management fees of $ 7,147 and $2,095, respectively

Incentive Fee

The Company will also pay the Advisor an

Base management fees for any partial quarter will be appropriately pro-rated.

For the years ended December 31, 2023, 2022 and 2021, the Company incurred

base management fees of $ 11,433 , $ 7,147 and $ 2,095 , respectively.

Incentive Fee

The Company will also pay the Advisor an incentive

The incentive fee will consist of two parts—an incentive fee on income and an incentive fee on capital gains.

in more detail below, these components of the incentive fee will be largely independent of each other with the result that one component

more detail below, these components of the incentive fee will be largely independent of each other with the result that one component

may be payable even if the other is not.

4 unchanged sentences

The Company’s quarterly pre-incentive fee net investment income must exceed a preferred return of 1.50 % of the

Company’s NAV at the end of the immediately preceding calendar quarter ( 6.0 % annualized but not compounded) (the “Hurdle Amount”)

in order for the Company to receive an income incentive fee.

The income incentive fee is calculated as follows:

Company’s net asset value (“NAV”) at the end of the immediately preceding calendar quarter ( 6.0 % annualized but not

compounded) (the “Hurdle Amount”) in order for the Company to receive an income incentive fee.

Prior to an Exchange Listing,

100% of our pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of 1.50% of the Company’s NAV at the end of the immediately preceding calendar quarter until the Advisor has received 10% of the total pre-incentive fee net income for that calendar quarter and, for pre-incentive fee net investment income in excess of 1.6667%, 10% of all remaining pre-incentive fee net investment income for that quarter.

After an Exchange Listing :

100% of the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter in excess

of 1.50% of the Company’s NAV at the end of the immediately preceding calendar quarter until the Advisor has received 15% of

the total pre-incentive fee net income for that calendar quarter and, for pre-incentive fee net investment income

the income incentive fee is calculated as 100% of our pre-incentive fee net investment income for the immediately preceding

calendar quarter in excess of 1.50% of the Company’s NAV at the end of the immediately preceding calendar quarter until the Advisor

has received 10% of the total pre-incentive fee net income for that calendar quarter and, for pre-incentive fee net investment income

in excess of 1.6667%, 10% of all remaining pre-incentive fee net investment income for that quarter.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

000’s, except share and per share amounts)

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

Incentive Fee on Capital Gains

The incentive fee on capital gains (the “capital gains incentive

fee”) will be calculated and payable in arrears in cash as follows:

● Prior to an Exchange Listing :

10 % of the Company’s realized capital gains, if any, on a cumulative basis from formation through (a) the day before an Exchange Listing, (b) upon consummation of a Liquidity Event or (c) upon the termination of the Investment Advisory Agreement, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis.

For the purpose of computing the capital gain incentive fee, the calculation methodology will look through derivative financial instruments or swaps as if the Company owned the reference assets directly.

● After an Exchange Listing :

15 % of the Company’s realized capital gains, if any, on a cumulative basis from formation through the end of a given calendar year or upon termination of the Investment Advisory Agreement, 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.

Prior to an Exchange Listing, the incentive fee

on capital gains (the “capital gains incentive fee”) will be calculated and payable in arrears in cash as 10 % of the Company’s

realized capital gains, if any, on a cumulative basis from formation through (a) the day before an Exchange Listing, (b) upon

consummation of a Liquidity Event or (c) upon the termination of the Investment Advisory Agreement, computed net of all realized

capital losses and unrealized capital depreciation on a cumulative basis.

For the purpose of computing the capital gain incentive fee,

the calculation methodology will look through derivative financial instruments or swaps as if the Company owned the reference assets directly.

Payment of Incentive Fees

Prior to an Exchange Listing, any incentive fees earned by the Advisor

shall accrue as earned but only become payable in cash to the Advisor upon consummation of an Exchange Listing.

To the extent the Company

does not complete an Exchange Listing, the incentive fees will be payable to the Advisor (a) upon consummation of a sale of the

Company or (b) once substantially all the proceeds from a Company Liquidation payable to the Company’s stockholders have been

distributed to such stockholders.

Prior to an Exchange Listing, any incentive fees

earned by the Advisor shall accrue as earned but only become payable in cash to the Advisor upon consummation of an Exchange Listing.

To the extent the Company does not complete an Exchange Listing, the incentive fees will be payable to the Advisor (a) upon consummation

of a sale of the Company or (b) once substantially all the proceeds from a Company Liquidation payable to the Company’s stockholders

have been distributed to such stockholders.

For the year ended December 31, 2023, the Company incurred incentive

1 unchanged sentence

For the year ended December 31, 2022, the Company incurred incentive

fees on income of $ 4,698 and no incentive fees on capital gains.

For the year ended December 31, 2021, the Company incurred incentive

fees on income of $ 31 and on realized gains $ 34 (total of $ 65 ).

Other— KACALP, an affiliate of the Advisor, made

an equity contribution of $ 10 to the Company on December 18, 2018.

The following table presents the composition of the Company’s

7 unchanged sentences

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

As of December 31, 2022, $ 45,901 of the Company’s total assets

were non-qualifying assets as defined by Section 55(a) of the 1940 Act.

As of December 31, 2021, all of the Company’s investments

were qualifying assets as defined by Section 55(a) of the 1940 Act.

Beginning with the three months ended March 31, 2022, the Company uses

Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies.

As of December 31, 2021, the Company used GICS, Level 2 – Industry Group.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

As of December 31, 2023 and December 31, 2022, $ 68,578 and $ 45,901 ,

respectively, of the Company’s total assets were non-qualifying assets, as defined by Section 55(a) of the 1940 Act.

The Company uses Global Industry Classification

Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies.

The industry composition of long-term investments based on fair value

1 unchanged sentence

Trading companies & distributors

Commercial services & supplies

Food products

Commercial services & supplies

Health care providers & services

Professional services

Containers & packaging

Aerospace & defense

Professional services

Leisure products

Textiles, apparel & luxury goods

Building products

Diversified telecommunication services

Personal care products

Wireless telecommunication services

Leisure products

Auto components

Automobile components

Building products

Household durables

equipment & supplies

Personal products

Health care equipment & supplies

Household products

1 unchanged sentence

Specialty retail

Capital markets

Pharmaceuticals

Asset management & custody banks

Diversified telecommunication services

Electronic equipment, instruments & components

Commercial & professional services

Capital goods

Consumer durables & apparel

Telecommunication services

Health care equipment & services

Household & personal products

Automobiles & components

Food & beverage

Software & services

Pharmaceuticals, biotech & life sciences

Diversified financials

Asset management & custody banks

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

The Fair Value Measurement Topic of the FASB Accounting Standards

Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would

take place between market participants under current market conditions at the measurement date.

As required by ASC 820, the Company has

performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their fair

value determination.

Inputs are the assumptions, along with considerations of risk, that a market participant would use to value an asset

or a liability.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

The Fair Value Measurement Topic of the FASB Accounting

Standards Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability

would take place between market participants under current market conditions at the measurement date.

As required by ASC 820, the Company

has performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their

fair value determination.

Inputs are the assumptions, along with considerations of risk, that a market participant would use to value

an asset or a liability.

In general, observable inputs are based on market data that is readily available, regularly distributed and verifiable

2 unchanged sentences

of how market participants would value an asset or a liability.

The fair value hierarchy prioritizes the inputs to valuation techniques

used to measure fair value into the following three broad categories.

Level 1 — Valuations based

on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access

at the date of measurement.

Level 2 — Valuations based

on quoted prices for similar instruments in active markets;

quoted prices for identical or similar instruments in markets that are not

The fair value hierarchy prioritizes the inputs

to valuation techniques used to measure fair value into the following three broad categories.

Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement.

Level 2 — Valuations based on quoted prices for similar instruments in active markets;

quoted prices for identical or similar instruments in markets that are not active;

and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information

exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 — Model derived

valuations in which one or more significant inputs or significant value drivers are unobservable.

Unobservable inputs are those inputs

that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best

available information.

In certain cases, the inputs used to measure fair value may fall into

different levels of the fair value hierarchy.

In such cases, the determination of which category within the fair value hierarchy is appropriate

for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement.

of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific

to the financial instrument.

The following table presents the fair value hierarchy of investments

as of December 31, 2022 and 2021.

Note that the valuation levels below are not necessarily an indication of the risk or liquidity associated

with the underlying investment.

Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable.

Unobservable inputs are those inputs that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best available information.

In certain cases, the inputs used to measure fair

value may fall into different levels of the fair value hierarchy.

In such cases, the determination of which category within the fair value

hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value

Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and

considers factors specific to the financial instrument.

Kayne Anderson BDC, Inc.

Notes to Consolidated

Financial Statements

(amounts in 000’s, except share and per share amounts)

The following tables present the fair value hierarchy

of investments as of December 31, 2023 and December 31, 2022.

Note that the valuation levels below are not necessarily an indication of

the risk or liquidity associated with the underlying investment.

Fair Value Hierarchy as of December 31, 2023

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Total Investments

For the years ended December 31, 2022 and 2021, the Company did not

recognize any transfers to or from Level 3.

The following tables present changes in the fair value of investments

for which Level 3 inputs were used to determine the fair value as of and for years ended December 31, 2022 and 2021:

senior secured

for which Level 3 inputs were used to determine the fair value as of and for the years ended December 31, 2023 and 2022.

For the year ended December 31, 2023

senior secured

debt investments

Fair value, beginning of period

Purchases of investments

Purchases of investments, including PIK, if any

Proceeds from sales of investments and principal repayments

4 unchanged sentences

Fair value, end of period

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

(1) Reflects non-cash conversions.

These transactions represent non-cash

investing activities.

senior secured

9 unchanged sentences

Fair value, end of period

The increase in unrealized gain (loss) relates to investments that

were held during the period.

The Company includes these unrealized gains and losses on the Statement of Operations – Net Change

in Unrealized Gains (Losses).

Valuation Techniques

and Unobservable Inputs

Non-traded debt investments are typically valued using either

a market yield analysis or an enterprise value analysis.

For debt investments that are not considered to be credit impaired, the Company

uses a market yield analysis to determine fair value.

If the debt investment is considered to be credit impaired (which is determined

by performing an enterprise value analysis), the Company will use the enterprise value analysis or a liquidation basis analysis to determine

To determine fair value using a market yield analysis, the Company

discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield).

To determine the estimated

market yield for its debt investments, the Company analyzes changes in the risk/reward (measured by yields and leverage) of middle market

indices as compared to changes in risk/reward for the underlying investment and estimates the appropriate discount rate for such debt

In this context, the discount rate and fair market value of the investment is impacted by the structure and pricing of the

security relative to current market yields for similar investments in similar businesses as well as the financial performance of such

In performing this analysis, the Company considers data sources including, but not limited to:

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

For the years ended December 31, 2023 and 2022,

the Company did not recognize any transfers to or from Level 3.

The increase in unrealized gain (loss) relates to investments that were

held during the period.

The Company includes these unrealized gains and losses on the Statement of Operations – Net Change in Unrealized

Gains (Losses).

Valuation Techniques and Unobservable

Non-traded debt investments are typically

valued using either a market yield analysis or an enterprise value analysis.

For debt investments that are not considered to be credit

impaired, the Advisor uses a market yield analysis to determine fair value.

If the debt investment is considered to be credit impaired

(which is determined by performing an enterprise value analysis), the Advisor will use the enterprise value analysis or a liquidation

basis analysis to determine fair value.

To determine fair value using a market yield analysis,

the Advisor discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield).

To determine the

estimated market yield for its debt investments, the Advisor analyzes changes in the risk/reward (measured by yields and leverage) of

middle market indices as compared to changes in risk/reward for the underlying investment and estimates the appropriate discount rate

for such debt investment.

In this context, the discount rate and the fair market value of the investment is impacted by the structure

and pricing of the security relative to current market yields for similar investments in similar businesses as well as the financial performance

of such business.

In performing this analysis, the Advisor considers data sources including, but not limited to:

(i) industry publications,

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of the Advisor, and (iii) information obtained and provided by the Advisor’s independent valuation managers.

To determine if a debt investment is credit impaired, the Company estimates

the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business.

The Company utilizes

the following valuation methodologies to determine the estimated enterprise value of the company:

(i) analysis of valuations of publicly

traded companies in a similar line of business (“public company comparable analysis”), (ii) analysis of valuations of M&A

transaction valuations for companies in a similar line of business (“precedent transaction analysis”), (iii) discounted

cash flows (“DCF analysis”) and (iv) other valuation methodologies.

In determining the non-traded debt investment valuations,

the following factors are considered, where relevant:

To determine if a debt investment is credit impaired,

the Advisor estimates the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business.

The Advisor utilizes the following valuation methodologies to determine the estimated enterprise value of the company:

of valuations of publicly traded companies in a similar line of business (“public company comparable analysis”), (ii) analysis

of valuations of M&A transaction valuations for companies in a similar line of business (“precedent transaction analysis”),

(iii) discounted cash flows (“DCF analysis”) and (iv) other valuation methodologies.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

In determining the non-traded debt investment

valuations, the following factors are considered, where relevant:

the nature and realizable value of any collateral;

the company’s ability

to make interest payments, amortization payments (if any) and other fixed charges;

call features, put features and other relevant terms

of the debt security;

the company’s

ability to make interest payments, amortization payments (if any) and other fixed charges;

call features, put features and other relevant

terms of the debt security;

the company’s historical and projected financial results;

the markets in which the company does business;

changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may

changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be

and other relevant factors.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Equity investments in private

companies are typically valued using one of or a combination of the following valuation techniques:

(i) public company comparable

analysis, (ii) precedent transaction analysis and (iii) DCF analysis.

Under all of these valuation techniques, the Advisor estimates operating

results of the companies in which it invests, including earnings before interest expense, income tax expense, depreciation and amortization

(“EBITDA”) and free cash flow.

These estimates utilize unobservable inputs such as historical operating results, which may

be unaudited, and projected operating results, which will be based on operating assumptions for such company.

Investment performance data

utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in information.

These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the industry.

Equity investments in private companies are typically

valued using one of or a combination of the following valuation techniques:

(i) public company comparable analysis, (ii) precedent

transaction analysis and (iii) DCF analysis.

Under all of these valuation techniques, the Advisor

estimates operating results of the companies in which it invests, including earnings before interest expense, income tax expense, depreciation

and amortization (“EBITDA”) and free cash flow.

These estimates utilize unobservable inputs such as historical operating results,

which may be unaudited, and projected operating results, which will be based on operating assumptions for such company.

Investment performance

data utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in

These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the

Other unobservable inputs utilized in the valuation techniques outlined above include:

discounts for lack of marketability, selection

of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected required

rates of return (discount rates).

discounts for lack of marketability,

selection of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected

required rates of return (discount rates).

Quantitative Table for Valuation Techniques

The following tables present quantitative information about the significant

unobservable inputs of the Company’s Level 3 investments as of December 31, 2022 and 2021.

The tables are not intended to be all-inclusive

but instead capture the significant unobservable inputs relevant to the Advisor’s determination of fair value.

The following tables present quantitative information

about the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2023 and December 31, 2022.

tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Advisor’s determination

of fair value.

The Company calculates weighted average, based on the value of the unobservable input of each investment relative to the

fair value of the investment compared to the total fair value of all investments.

As of December 31, 2023

2 unchanged sentences

Discount rate

8.4 % - 15.0 %

Equity investments

Precedent Transaction Analysis

Original Cost

Preferred equity investment

Discounted cash flow analysis

Discount rate

Other equity investments

Comparable Multiples

1 unchanged sentence

First-lien senior secured debt investments

Market Approach - Yield Analysis

Credit Spreads

Discounted cash flow analysis

Discount rate

8.4 % – 15.0 %

1 unchanged sentence

Precedent Transaction Analysis

Transaction Price

Original Cost

Comparable Multiples

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Subscription Credit Agreement

As of December 31, 2022, the Company had a $ 125,000 credit agreement

(the “Subscription Credit Agreement”) with certain lenders party thereto.

The Subscription Credit Agreement permits the Company

to elect the commitment amount each quarter to borrow up to $ 125,000 , subject to availability under the borrowing base which is calculated

based on the unused capital commitments of the investors meeting various eligibility requirements.

The interest rate under the Subscription

Credit Agreement is equal to the Secured Overnight Funding Rate (“SOFR”) plus 1.975 % (subject to a 0.275 % SOFR floor).

Company is also required to pay a commitment fee of 0.25 % per annum on any unused portion of the Subscription Credit Agreement.

also pays an extension fee of 0.05 % per quarter on the elected commitment amount on the first day of each calendar quarter.

The Subscription

Credit Agreement will expire on December 31, 2023.

For the years ended December 31, 2022 and 2021, the average amount

of borrowings outstanding under the Subscription Credit Agreement were $ 65,751 and $ 24,600 , respectively, with a weighted average interest

rate of 3.70 % and 2.26 %, respectively.

As of December 31, 2022 and 2021, the Company had $ 108,000 and $ 105,000 , respectively, outstanding

under the Subscription Credit Agreement at a weighted average interest rate of 6.32 % and 2.25 %, respectively.

As of December 31, 2023, the Company had a $ 50,000

credit agreement (the “Subscription Credit Agreement”) with certain lenders party thereto.

The Subscription Credit Agreement

permits the Company to elect the commitment amount each quarter to borrow up to $ 50,000 , subject to availability under the borrowing base

which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements.

The interest rate

under the Subscription Credit Agreement is equal to the Secured Overnight Funding Rate (“SOFR”) plus 2.25 % (subject to a 0.275 %

The Company is also required to pay a commitment fee of 0.25 % per annum on any unused portion of the Subscription Credit

The Company also pays an extension fee of 0.075 % per quarter on the elected commitment amount on the first day of each calendar

The Subscription Credit Agreement will expire on December 31, 2024.

For the years ended December 31, 2023 and 2022,

the average amount of borrowings outstanding under the Subscription Credit Agreement were $ 41,782 and $ 65,751 , respectively, with a weighted

average interest rate of 7.03 % and 3.70 %, respectively.

As of December 31, 2023, the Company had $ 10,750 outstanding under the Subscription

Credit Agreement at a weighted average interest rate of 7.35 %.

Corporate Credit Facility

As of December 31, 2022, the Company had a senior secured revolving

credit facility (the “Corporate Credit Facility”), that has a total commitment of $ 400,000 .

The Company entered into

the Corporate Credit Facility on February 18, 2022.

The Corporate Credit Facility’s commitment termination date and the final maturity

date are February 18, 2026 and February 18, 2027, respectively.

The Corporate Credit Facility also provides for a feature that allows

the Company, under certain circumstances, to increase the overall size of the Corporate Credit Facility to a maximum of $ 550,000 .

interest rate on the Corporate Credit Facility is equal to Term SOFR (a forward-looking rate based on SOFR futures) plus an applicable

As of December 31, 2023, the Company had a senior

secured revolving credit facility (the “Corporate Credit Facility”), that has a total commitment of $ 400,000 .

The Company entered

into the Corporate Credit Facility on February 18, 2022.

The Corporate Credit Facility’s commitment termination date and the final

maturity date are February 18, 2026 and February 18, 2027, respectively.

The Corporate Credit Facility also provides for a feature that

allows the Company, under certain circumstances, to increase the overall size of the Corporate Credit Facility to a maximum of $ 550,000 .

The interest rate on the Corporate Credit Facility is equal to Term SOFR (a forward-looking rate based on SOFR futures) plus an applicable

spread of 2.35 % per annum or an “alternate base rate” (as defined in the agreements governing the Corporate Credit Facility)

2 unchanged sentences

the Corporate Credit Facility.

Under the Corporate Credit Facility, the Company is required to comply

with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without

limitation, covenants related to:

(a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on

certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders’ equity,

and (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Company

and its consolidated subsidiaries of not less than 1.5:1.0.

These covenants are subject to important limitations and exceptions that are

described in the agreements governing the Corporate Credit Facility.

Amounts available to borrow under the Corporate Credit Facility are

subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as

determined pursuant to the Corporate Credit Facility) that are pledged as collateral.

Under the Corporate Credit Facility, the Company

is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities,

including, without limitation, covenants related to:

(a) limitations on the incurrence of additional indebtedness and liens, (b) limitations

on certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders’

equity, and (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness

of the Company and its consolidated subsidiaries of not less than 1.5:1.0.

These covenants are subject to important limitations and exceptions

that are described in the agreements governing the Corporate Credit Facility.

Amounts available to borrow under the Corporate Credit Facility

are subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value

as determined pursuant to the Corporate Credit Facility) that are pledged as collateral.

The Corporate Credit Facility is secured by certain

1 unchanged sentence

the Revolving Funding Facility (as defined below).

For the year ended December 31, 2022, the average amount of borrowings

outstanding under the Corporate Credit Facility was $ 134,239 with a weighted average interest rate of 4.26 %.

As of December 31, 2022,

the Company had $ 269,000 outstanding under the Corporate Credit Facility at a weighted average interest rate of 6.63 %.

For the years ended December 31, 2023 and 2022,

the average amount of borrowings outstanding under the Corporate Credit Facility was $ 251,655 and $ 134,239 , respectively, with a

weighted average interest rate of 7.35 % and 4.26 %, respectively.

As of December 31, 2023, the Company had $ 234,000 outstanding under the

Corporate Credit Facility at a weighted average interest rate of 7.71 %.

Revolving Funding Facility

As of December 31, 2022, the Company had a senior secured revolving

funding facility (the “Revolving Funding Facility”), that has a total commitment of $ 350,000 .

The Company and KABDCF

entered into the Revolving Funding Facility on February 18, 2022.

The Revolving Funding Facility is secured by all of the assets held

by KABDCF and the Company has agreed that it will not grant or allow a lien on the membership interest of KABDCF.

The end of the reinvestment

period and the stated maturity date for the Revolving Funding Facility are February 18, 2025 and February 18, 2027, respectively.

interest rate on the Revolving Funding Facility is equal to daily SOFR plus 2.75 % per annum.

KABDCF is also required to pay a commitment

fee of between 0.50 % and 1.50 % per annum depending on the size of the unused portion of the Revolving Funding Facility.

Amounts available

to borrow under the Revolving Funding Facility are subject to a borrowing base that applies different advance rates to different types

of assets held by KABDCF and is subject to limitations with respect to the loans securing the Revolving Funding Facility, including restrictions

on, loan size, payment frequency and status, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing

base and therefore amounts available to borrow.

The Company and KABDCF are also required to comply with various covenants, reporting requirements

and other customary requirements for similar facilities.

These covenants are subject to important limitations and exceptions that are

described in the agreements governing the Revolving Funding Facility.

As of December 31, 2023, the Company had a senior

secured revolving funding facility (the “Revolving Funding Facility”), that has a total commitment of $ 455,000 .

The Company and

KABDCF entered into the Revolving Funding Facility on February 18, 2022, and on June 29, 2023, amended the facility and increased the

commitment amount from $ 350,000 to $ 455,000 .

The interest rate and all other terms remained unchanged.

The Revolving Funding Facility

is secured by all of the assets held by KABDCF and the Company has agreed that it will not grant or allow a lien on the membership interest

The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are February 18, 2025 and

February 18, 2027, respectively.

The interest rate on the Revolving Funding Facility is equal to daily SOFR plus 2.75 % per annum.

is also required to pay a commitment fee of between 0.50 % and 1.50 % per annum depending on the size of the unused portion of the Revolving

Funding Facility.

Amounts available to borrow under the Revolving Funding Facility are subject to a borrowing base that applies different

advance rates to different types of assets held by KABDCF and is subject to limitations with respect to the loans securing the Revolving

Funding Facility, including restrictions on, loan size, industry concentration, payment frequency and status, as well as restrictions

on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow.

and KABDCF are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities.

These covenants are subject to important limitations and exceptions that are described in the agreements governing the Revolving Funding

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

For the years ended December 31, 2023 and 2022,

the average amount of borrowings outstanding under the Revolving Funding Facility was $ 290,890 and $ 147,808 , respectively, with a weighted

average interest rate of 7.74 % and 4.20 %, respectively.

As of December 31, 2023, the Company had $ 306,000 outstanding under the Revolving

Funding Facility at a weighted average interest rate of 8.06 %.

Revolving Funding Facility II

On December 22, 2023,

the Company and Kayne Anderson BDC Financing II, LLC (“KABDCF II”), a wholly-owned, special purpose financing subsidiary,

entered into a new senior secured revolving credit facility (the “Revolving Funding Facility II”).

The Revolving Funding Facility

II has an initial commitment of $ 150,000 which, under certain circumstances, can be increased up to $ 500,000 .

The Revolving Funding Facility

II is secured by all of the assets held by KABDCF II and the Company has agreed that it will not grant or allow a lien on the membership

interest of KABDCF II.

The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility II are December

22, 2026, and December 22, 2028, respectively.

The interest rate on the Revolving Funding Facility II is equal to 3-month term SOFR plus

2.70 % per annum.

KABDCF II is also required to pay a commitment fee of 0.50 % between December 22, 2023 and September 22, 2024 and 0.75 %

thereafter on the unused portion of the Revolving Funding Facility II.

Amounts available to borrow under the Revolving

Funding Facility II are subject to a borrowing base that has limitations with respect to the loans securing the Revolving Funding Facility

II, including limitations on, loan size, payment frequency and status, sector concentrations, as well as restrictions on portfolio company

leverage, all of which may also affect the borrowing base and therefore amounts available to borrow.

The Company and KABDCF II are also

required to comply with various covenants, reporting requirements and other customary requirements for similar facilities.

These covenants

are subject to important limitations and exceptions that are described in the agreements governing the Revolving Funding Facility II.

For the period ended December 22, 2023 through

December 31, 2023, the average amount of borrowings outstanding under the Revolving Funding Facility II was $ 70,000 , with a weighted average

interest rate of 8.07 %.

As of December 31, 2023, the Company had $ 70,000 outstanding under the Revolving Funding Facility II at a

weighted average interest rate of 8.07 %.

Loan and Security Agreement

On February 18, 2022, the Company and KABDCF established

two new credit facilities (described above) and fully repaid the $ 150,000 outstanding balance on the Loan and Security Agreement (the

“LSA”), which was entered into by KABDCF on February 5, 2021.

Advances under the LSA had an interest rate of LIBOR plus 4.25%

(subject to a 1.00% LIBOR floor ).

For the year ended December 31, 2022, the average amount of borrowings

outstanding under the Revolving Funding Facility was $ 147,808 with a weighted average interest rate of 4.20 %.

As of December 31,

2022, the Company had $ 200,000 outstanding under the Revolving Funding Facility at a weighted average interest rate of 7.05 %.

outstanding under the LSA were $ 20,384 with a weighted average interest rate of 5.25 %.

Senior Unsecured Notes

On June 29, 2023, the Company completed a private

placement of $ 75,000 of senior unsecured notes (the “Notes”).

Net proceeds from the offering was used to refinance existing

debt and for general corporate purposes.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

and Security Agreement

On February 18, 2022, the Company and KABDCF established two new credit

facilities (described above) and fully repaid the $ 150,000 outstanding balance on the Loan and Security Agreement (the “LSA”),

which was entered into by KABDCF on February 5, 2021.

Advances under the LSA had an interest rate of LIBOR plus 4.25% (subject to a 1.00%

LIBOR floor).

For the years ended December 31, 2022 and 2021, the average amount

of borrowings outstanding under the LSA were $ 20,384 and $ 66,755 , respectively, with a weighted average interest rate of 5.25 % and 5.25 %,

respectively.

As of December 31, 2021, the Company had $ 162,000 outstanding under the LSA at a weighted average interest rate of 5.25 %.

Debt obligations consisted of the following as of December 31, 2022

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

The table below sets forth a summary of the key

terms of each series of Notes outstanding at December 31, 2023.

Unamortized Issuance Costs

Estimated Fair Value December 31,

Holders of the Notes are entitled to receive cash

interest payments semi-annually (on January 30 and July 30) at the fixed rate.

As of December 31, 2023, the weighted average interest

rate on the outstanding Notes was 8.71 %.

As of December 31, 2023, the Notes were rated

“BBB” by Kroll Bond Rating Agency (“KBRA”).

The Company is required to maintain a current rating from one rating

agency with respect to the Notes.

In the event the Company does not maintain a current rating from a rating agency for a specified period

of time or the credit rating on the Notes falls below “BBB-” (a “Below Investment Grade Event”), the interest

rate per annum on the Notes will increase by 1.0 % during the period the Notes are rated below “BBB-”.

In the event the Company’s

Secured Debt Ratio exceeds 60 % (until June 29, 2024) or 55 % (on or after June 29, 2024) (a “Secured Debt Ratio Event”), the

interest rate per annum on the Notes will increase by 1.5 % during the period the ratio is above stated percentage.

If a Below Investment

Grade Event and a Secured Debt Ratio Event is continuing at the same time the aggregate increase in interest rate per annum will not exceed

The Notes were issued in private placement offerings

to institutional investors and are not listed on any exchange or automated quotation system.

The Notes contain various covenants related

to other indebtedness, liens and limits on the Company’s overall leverage.

The Company must maintain a minimum amount of shareholder

equity and the Company’s asset coverage ratio must be greater than 150 % as of the last business day of each fiscal quarter.

Notes are redeemable in certain circumstances at the option of the Company and may be redeemed under certain circumstances to cure the

asset coverage ratio covenant.

The Notes are unsecured obligations of the Company

and, upon liquidation, dissolution or winding up of the Company, will rank:

(1) senior to all of the Company’s outstanding common

(2) on parity with any unsecured creditors of the Company and any unsecured senior securities representing indebtedness of the

and (3) junior to any secured creditors of the Company.

At December 31, 2023, the Company was in compliance

with all covenants under the Notes agreements.

Debt obligations consisted of the following as

of December 31, 2023 and 2022.

December 31, 2023

1 unchanged sentence

Amount Available (1)

Net Carrying Value (2)

Corporate Credit Facility

Revolving Funding Facility

Revolving Funding Facility II

Subscription Credit Agreement

(1) The amount available reflects any limitations related to the

Credit Facility’s borrowing base as of December 31, 2022.

(2) The carrying value of the Corporate Credit Facility, Revolving

Funding Facility, and Subscription Credit Agreement are presented net of deferred financing costs totaling $ 5,409 .

(1) The amount available under the Company’s credit facilities reflects

the assets held at KABDCF and KABDCF II and any limitations related to each borrowing base as of December 31, 2023.

(2) The carrying value of the Notes, Corporate Credit Facility, Revolving

Funding Facility, Revolving Funding Facility II and Subscription Credit Agreement are presented net of deferred financing costs totaling

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

December 31, 2022

1 unchanged sentence

Amount Available (1)

Loan and Security Agreement (LSA)

Corporate Credit Facility

Revolving Funding Facility

Subscription Credit Agreement

(1) The amount available reflects any limitations related to the

Credit Facility’s borrowing base as of December 31, 2021.

(2) The carrying value of the LSA and Subscription Credit Agreement are presented net of deferred financing costs totaling $ 672 .

For the years ended December 31, 2022 and 2021, the components of interest

expense were as follows:

(1) The amount available under the Company’s credit facilities reflects

the assets held at KABDCF and any limitations related to the borrowing base as of December 31, 2022.

(2) The carrying value of the Corporate Credit Facility, Revolving Funding Facility, and Subscription Credit Agreement are presented net of deferred financing costs totaling $ 5,409 .

For the years ended December 31, 2023, 2022 and 2021, the components

of interest expense were as follows:

For the years ended

5 unchanged sentences

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Share Transactions

Common Stock Issuances

The following table summarizes the number of common stock shares issued

and aggregate proceeds received from such issuances related to the Company’s capital call notices pursuant to subscription agreements

with investors for the years ended December 31, 2022 and 2021.

The following tables summarize the number of common

stock shares issued and aggregate proceeds received from such issuances related to the Company’s capital call notices pursuant to

subscription agreements with investors for the years ended December 31, 2023, 2022 and 2021.

See Note 12 – Subsequent Events.

For the year ended December 31, 2023

1 unchanged sentence

shares issued

April 4, 2023

August 8, 2023

Total common stock issued

For the year ended December 31, 2022

Common stock issue date

shares issued

January 24, 2022

12 unchanged sentences

Total common stock issued

As of December 31, 2022, the Company had subscription agreements with

investors for an aggregate capital commitment of $ 808,212 to purchase shares of common stock.

Of this amount, the Company had $ 240,492

of undrawn commitments at December 31, 2022.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

On December 5, 2023, the Company completed its

final close of subscription agreements with investors.

As of December 31, 2023, the Company had subscription agreements with investors

for an aggregate capital commitment of $ 1,046,928 to purchase shares of common stock.

Of this amount, the Company had $ 388,634 of undrawn

commitments at December 31, 2023.

See Note 12 – Subsequent Events.

Dividends and Dividend Reinvestment

The following table summarizes the dividends declared and payable by

the Company for the year ended December 31, 2022.

The following tables summarize the dividends declared

and payable by the Company for the years ended December 31, 2023, 2022 and 2021.

See Note 12 – Subsequent Events.

For the year ended December 31, 2023

Dividend declaration date

1 unchanged sentence

Dividend payment date

March 7, 2023

March 31, 2023

April 14, 2023

June 30, 2023

July 14, 2023

August 10, 2023

September 29, 2023

October 13, 2023

November 9, 2023

December 29, 2023

January 16, 2024

Total dividends declared

For the year ended December 31, 2022

Dividend declaration date

Dividend record date

Dividend payment date

April 19, 2022

April 20, 2022

April 26, 2022

July 19, 2022

8 unchanged sentences

Total dividends declared

The following table summarizes the dividends declared and payable by

the Company for the year ended December 31, 2021.

For the year ended December 31, 2021

Dividend declaration date

14 unchanged sentences

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

The following table summarizes the amounts received and shares of common

stock issued to shareholders pursuant to the Company’s dividend reinvestment plan (“DRIP”) for the year ended December

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

The following tables summarize the amounts received

and shares of common stock issued to shareholders pursuant to the Company’s dividend reinvestment plan (“DRIP”) for

the years ended December 31, 2023, 2022 and 2021.

See Note 12 - Subsequent Events.

For the year ended December 31, 2023

Dividend record date

2 unchanged sentences

January 13, 2023

March 31, 2023

April 14, 2023

June 30, 2023

July 14, 2023

September 29, 2023

October 13, 2023

For the dividend declared on November 9, 2023

and paid on January 16, 2024, there were 95,791 shares issued with a DRIP value of $ 1,573 .

These shares are excluded from the table above,

as the DRIP shares were issued after December 31, 2023.

For the year ended December 31, 2022

Dividend record date

Dividend payment date

December 29, 2021

January 18, 2022

April 20, 2022

April 26, 2022

July 20, 2022

6 unchanged sentences

were issued after December 31, 2022.

The following table summarizes the amounts received and shares of common

stock issued to shareholders pursuant to the Company’s dividend reinvestment plan for the year ended December 31, 2021.

For the year ended December 31, 2021

Dividend record date

Dividend payment date

DRIP shares issued

April 20, 2021

3 unchanged sentences

November 2, 2021

For the dividend declared on December 2, 2021 and paid on January 18,

2022, there were 55,590 shares issued with a DRIP value of $ 902 .

These shares are excluded from the table above, as the DRIP shares were

issued after December 31, 2021.

For the dividend declared on December 2, 2021

and paid on January 18, 2022, there were 55,590 shares issued with a DRIP value of $ 902 .

These shares are excluded from the table above,

as the DRIP shares were issued after December 31, 2021.

Commitments and Contingencies

The Company had an aggregate of $ 149,338 and $ 97,810 , respectively,

of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2022 and 2021.

Such commitments are generally

subject to the satisfaction of certain financial and nonfinancial covenants and certain operational metrics.

The commitment period for

these amounts may be shorter than the maturity date if drawn or funded.

These commitments are not reflected in the Company’s consolidated

statement of assets and liabilities.

Consequently, such commitments result in an element of credit risk in excess of the amount recognized

The Company had an aggregate of $ 147,928 and $ 149,338 ,

respectively, of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2023 and December 31, 2022.

Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and certain operational metrics.

The commitment period for these amounts may be shorter than the maturity date if drawn or funded.

These commitments are not reflected

in the Company’s consolidated statement of assets and liabilities.

Consequently, such commitments result in an element of credit

risk in excess of the amount recognized in the Company’s consolidated statement of assets and liabilities.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

A summary of the composition of the unfunded

9 unchanged sentences

BCI Burke Holding Corp.

Blade (US) Holdings, Inc.

OAO Acquisitions, Inc.

BLP Buyer, Inc.

2 unchanged sentences

Brightview, LLC

Carton Packaging Buyer, Inc.

Centerline Communications, LLC

CGI Automated Manufacturing, LLC

Pavion Corp., f/k/a Corbett Technology Solutions, Inc.

City Line Distributors, LLC

Curio Brands, LLC

7 unchanged sentences

Fralock Buyer LLC

Guardian Dentistry Partners

Guided Practice Solutions:

Dental, LLC (GPS)

Gulf Pacific Holdings, LLC

4 unchanged sentences

Improving Acquisition LLC

Krayden Holdings, Inc.

Light Wave Dental Management LLC

1 unchanged sentence

MacNeill Pride Group

Pavion Corp., f/k/a Corbett Technology Solutions, Inc.

PMFC Holding, LLC

Regiment Security Partners LLC

Ruff Roofers Buyer, LLC

SGA Dental Partners Holdings, LLC

Siegel Egg Co., LLC

Speedstar Holding LLC

Sundance Holdings Group, LLC

Techniks Holdings, LLC / Eppinger Holdings Germany GMBH

Trademark Global LLC

2 unchanged sentences

Vehicle Accessories, Inc.

Worldwide Produce Acquisition, LLC

Total unfunded commitments

3 unchanged sentences

pending or threatened litigation that would require accounting recognition or financial statement disclosure.

Earnings Per Share

In accordance with the provisions of ASC Topic 260, Earnings per

Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted

average number of shares outstanding during the period.

Other potentially dilutive common shares, and the related impact to earnings,

are considered when calculating earnings per share on a diluted basis.

As of December 31, 2022 and 2021, there were no dilutive shares.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

The following table sets forth the computation of basic and diluted

earnings per share of common stock for the years ended December 31, 2022 and 2021:

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Earnings Per Share

In accordance with the provisions of ASC Topic

260, Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common

stockholders by the weighted average number of shares outstanding during the period.

Other potentially dilutive common shares, and the

related impact to earnings, are considered when calculating earnings per share on a diluted basis.

As of December 31, 2023, 2022 and 2021,

there were no dilutive shares.

The following table sets forth the computation

of basic and diluted earnings per share of common stock for the years ended December 31, 2023, 2022 and 2021.

For the years ended

December 31, 2022

December 31, 2021

Net increase (decrease) in net assets resulting from operations

13 unchanged sentences

or credited to additional paid in capital, or total distributable earnings (losses), as appropriate.

The permanent differences for tax purposes from distributable earnings

to additional paid in capital were reclassified for tax purposes for the tax years ended December 31, 2022 and 2021.

The permanent differences for tax purposes from

distributable earnings to additional paid in capital were reclassified for tax purposes for the tax years ended December 31, 2023, 2022

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

These reclassifications have no impact on net assets.

2 unchanged sentences

Increase (decrease) in additional paid-in capital

Taxable income generally differs from the net increase in net assets

resulting from operations for financial reporting purposes due to (1) unrealized appreciation (depreciation) on investments, as gains

and losses are generally not included in taxable income until these are realized;

(2) income or loss recognition on exited investments;

Taxable income generally differs from the net

increase in net assets resulting from operations for financial reporting purposes due to (1) unrealized appreciation (depreciation) on

investments, as gains and losses are generally not included in taxable income until these are realized;

(2) income or loss recognition

on exited investments;

(3) non-deductible U.S.

3 unchanged sentences

operations to taxable income for the years ended December 31, 2023, 2022 and 2021:

For the years

For the years ended

Net increase (decrease) in net assets resulting from operations

Net change in unrealized losses (gains) from investments

Non-deductible expenses, offering costs disallowed

Non-deductible expenses, including excise taxes, offering costs disallowed

Capital loss carryforward

Other book tax differences

Taxable income before deductions for distributions

For income tax purposes, distributions made to stockholders are reported

as ordinary income, capital gains, non-taxable return of capital, or a combination thereof.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

For income tax purposes, distributions made to

stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof.

For the year ended December 31, 2023, the Company

incurred $ 101 of U.S.

federal excise tax.

There was no U.S.

federal excise tax incurred for the years ended December 31, 2022 or 2021,

respectively.

The final determination of tax character will not be made until the

7 unchanged sentences

Return of capital

For the years ended December 31, 2022 and 2021, the components of accumulated

earnings on a tax basis were as follows:

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

For the years ended December 31, 2023, 2022 and 2021, the components

of accumulated earnings on a tax basis were as follows.

For the years ended

5 unchanged sentences

Net unrealized appreciation (depreciation)

Capital losses can be carried forward indefinitely to offset future

capital gains.

Capital losses can be carried forward indefinitely

to offset future capital gains.

As of December 31, 2023, the Company had a capital loss carryforward of $ 263 , which was characterized

as short-term, and $ 10,423 , which was characterized as long-term.

As of December 31, 2022 and 2021, the Company had no capital loss carryforwards.

As of December 31, 2022 and 2021, the Company’s aggregate unrealized

appreciation and depreciation on investments based on cost for U.S.

As of December 31, 2023, 2022 and 2021, the Company’s aggregate

unrealized appreciation and depreciation on investments based on cost for U.S.

federal income tax purposes was as follows:

3 unchanged sentences

Net unrealized appreciation/(depreciation) on investments

KABDC Corp, LLC, a wholly owned subsidiary that was formed in December

2021, is a Delaware LLC which has elected to be treated as a corporation for U.S.

KABDC Corp, LLC and KABDC Corp II, LLC are wholly

owned subsidiaries that were formed in December 2021 and October 2023, respectively.

Each of these wholly owned subsidiaries are Delaware

LLCs that have elected to be treated as a corporation for U.S.

tax purposes.

As such, KABDC Corp, LLC is subject to U.S.

Federal, state and local

For the Company’s tax years ended December 31, 2022 and 2021, KABDC Corp, LLC did not have activity resulting in any provision

for income taxes.

FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes (“ASC

740”) provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated

financial statements.

ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s

tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be

sustained assuming examination by tax authorities.

As of December 31, 2022 and 2021, management has analyzed the Company’s tax positions,

and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the Company’s

current year tax return.

The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized

tax benefits will change materially in the next 12 months.

Management’s determinations regarding ASC 740 may be subject to review

and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations

As such, KABDC Corp, LLC and KABDC Corp II, LLC are subject

Federal, state and local taxes.

For the Company’s tax years ended December 31, 2023, 2022 and 2021, KABDC Corp, LLC and

KABDC Corp II, LLC did not have a material provision for income taxes.

FASB ASC Topic 740, Accounting for Uncertainty

in Income Taxes (“ASC 740”) provides guidance for how uncertain tax positions should be recognized, measured, presented,

and disclosed in the consolidated financial statements.

ASC 740 requires the evaluation of tax positions taken or expected to be taken

in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not”

of being sustained by the applicable tax authority.

The Company recognizes the tax benefits of uncertain tax positions only where the

position is “more likely than not” to be sustained assuming examination by tax authorities.

As of December 31, 2023, 2022

and 2021, management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits

should be recorded related to uncertain tax positions taken in the Company’s current year tax return.

The Company is not aware of

any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the

next 12 months.

Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon

factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Financial Highlights

3 unchanged sentences

the years ended December 31, 2023, 2022 and 2021.

For the years ended

Per Common Share Operating Performance (1)

(amounts in thousands,

the years ended December 31,

(amounts in thousands, except share

and per share amounts)

Common Share Operating Performance (1)

Net Asset Value, Beginning of Period (2)

1 unchanged sentence

Net Investment Income

Net Realized and Unrealized Gain (Loss) on Investments (3)

Net Increase (Decrease) in Net Assets Resulting from Operations

Realized and Unrealized Gain (Loss) on Investments (3)

Net Increase (Decrease)

in Net Assets Resulting from Operations

Distributions to Common Stockholders

Distributions

Net Decrease in Net Assets Resulting from Distributions

Net Decrease in Net

Assets Resulting from Distributions

Net Asset Value, End of Period

Shares Outstanding, End of Period

Ratio/Supplemental Data

Ratio/Supplemental

Net assets, end of period

2 unchanged sentences

Portfolio turnover

Ratio of operating expenses to average net assets (5)

Ratio of net investment income (loss) to average net assets (5)

Ratio of operating expenses to average net

Ratio of net investment income (loss) to average

net assets (5)

(1) The per common share data was derived by using weighted average shares outstanding.

(2) On February 5, 2021, the initial offering price of $ 15.00 per share less

$ 0.14 per share of organizational costs.

(2) On February 5, 2021, the initial offering price of $ 15.00 per share less $ 0.14 per share of organizational costs.

(3) Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period and may not reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to share transactions during the period.

For the years ended December 31, 2022 and 2021, such share transactions

include the effect of share issuances of $ 0.04 and $ 0.19 per share, respectively.

During the period, shares were issued at prices that

reflect the aggregate amount of the Company's initial organizational and offering expenses.

As a result, investors subscribing after

the initial capital call are allocated organizational expenses consistently with all stockholders.

For the years ended December 31, 2023,

2022 and 2021, such share transactions include the effect of share issuances of $ 0.00 , $ 0.04 and $ 0.19 per share, respectively.

the period, shares were issued at prices that reflect the aggregate amount of the Company’s initial organizational and offering

As a result, investors subscribing after the initial capital call are allocated organizational expenses consistently with all

stockholders.

(4) Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share.

4 unchanged sentences

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial

000’s, except share and per share amounts)

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Subsequent Events

The Company’s management

has evaluated subsequent events through the date of issuance of the financial statements included herein.

There have been no subsequent

events that require recognition or disclosure in these financial statements except for the following described below.

On January 13, 2023, the Company paid a distribution of $ 0.43 per share

to each common stockholder of record as of December 29, 2022.

The total distribution was $ 15,428 and $ 955 was reinvested into the Company

through the purchase of 57,860 shares of common stock.

On January 24, 2023, the Board of Directors (the “Board”)

of the Company elected James (“Jim”) Robo as the Chairman of the Board.

Robo will serve as an interested director of the

Company until he stands for re-election at the 2025 Annual Meeting of Stockholders of the Company.

With the addition of Mr.

Company’s Board is comprised of seven individuals, four of which are independent.

The independent board members include Mariel Joliet

(Lead Independent Director), George Marucci, Jr., Susan Schnabel and Rhonda Smith.

On March 7, 2023, the Board declared a distribution of $ 0.47 per share

to each common stockholder of record as of March 31, 2023.

The distribution will be paid on April 14, 2023.

As of March 9, 2023, the Company has subscription agreements with investors

for an aggregate capital commitment of $ 832,342 to purchase shares of common stock ($ 264,612 of the commitments are undrawn).

CHANGES IN AND DISAGREEMENTS

WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

The Company’s management has evaluated subsequent

events through the date of issuance of the financial statements included herein.

There have been no subsequent events that require recognition

or disclosure in these financial statements except as described below.

On January 16, 2024, the Company paid a distribution

of $ 0.53 per share to each common stockholder of record as of December 29, 2023.

The total distribution was $ 22,050 and $ 1,573 was reinvested

into the Company through the issuance of 95,791 shares of common stock.

On February 14, 2024, the Company sold 7,089,771 shares

of its common stock for a total aggregate offering price of $ 118,689 .

As of February 22, 2024, the Company has subscription agreements

with investors for an aggregate capital commitment of $ 1,046,928 to purchase shares of common stock ($ 269,945 is undrawn).

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING

AND FINANCIAL DISCLOSURE

There are not and have not been any disagreements

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk