What changed in this filing

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2026-03-02 compared with 2025-03-03 · 1649 added, 1299 removed, 1465 unchanged (67% of the section changed)

1 unchanged sentence

We are subject to financial market risks, including

changes in interest rates.

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of

interest rates.

Because we fund a portion of our investments with borrowings, our net investment income will be affected by the difference

between the rate at which we invest and the rate at which we borrow.

As a result, there can be no assurance that a significant change

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

valuation risk and changes in interest rates.

Valuation Risk.

The majority of our investments

are in instruments that do not have readily ascertainable market prices and the Advisor, as our valuation designee, will value these

securities at fair value as determined in good faith under procedures approved by our Board of Directors.

There is no single standard

for determining fair value in good faith.

As a result, determining fair value requires that judgment be applied to the specific facts

and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments

If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different

from the amounts presented and such differences could be material.

Interest Rate Risk .

Interest rate sensitivity

refers to the change in our earnings that may result from changes in the level of interest rates.

Because we fund a portion of our investments

with borrowings, our net investment income will be affected by the difference between the rate at which we invest and the rate at which

As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse

effect on our net investment income.

Assuming that the consolidated statement of assets

2 unchanged sentences

rate floors for floating rate instruments).

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

We do not include investments on non-accrual status and classified as non-income producing

as of December 31, 2025 in this calculation.

Change in Interest Rates

(Decrease) in

Increase (Decrease) in Interest Income

Increase (Decrease) in Interest Expense (1)

Net Increase (Decrease) in Net Investment Income

Down 200 basis points

2 unchanged sentences

Up 200 basis points

The data in the table is based on the Company’s current statement

of assets and liabilities.

(1) Includes the impact of our interest rate swaps as a result of

interest rate changes.

The data in the table is based on the Company’s

current statement of assets and liabilities.

We may hedge against interest rate fluctuations

3 unchanged sentences

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

to Consolidated Financial Statements

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) F-2

5 unchanged sentences

Notes to Consolidated Financial Statements F-32

of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting

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

2 unchanged sentences

We have audited the accompanying consolidated statements of assets

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

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

and its subsidiaries (the "Company")

14 unchanged sentences

the Public Company Accounting Oversight Board (United States), the consolidated statements of assets and liabilities, including the consolidated

schedules of investments, of the Company as of December 31, 2022 and 2021, and the related consolidated statements of operations, changes

in net assets and cash flows for the year ended December 31, 2021 (none of which are presented herein), and we expressed unqualified opinions

on those consolidated financial statements.

In our opinion, the information set forth in the Senior Securities table of the Company for

each of the four years in the period ended December 31, 2024 is fairly stated, in all material respects, in relation to the consolidated

schedules of investments, of the Company as of December 31, 2023, 2022, and 2021, and the related consolidated statements of operations,

changes in net assets and cash flows for the year ended December 31, 2021 (none of which are presented herein), and we expressed unqualified

opinions on those consolidated financial statements.

In our opinion, the information set forth in the Senior Securities table of the Company

for each of the five years in the period ended December 31, 2025 is fairly stated, in all material respects, in relation to the consolidated

financial statements from which it has been derived.

2 unchanged sentences

statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal

control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing

under Item 9A.

Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's

internal control over financial reporting 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.

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

control over financial reporting, included in Report of Management on Internal Control over Financial Reporting appearing under Item 9A.

Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control

over financial reporting based on our audits.

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

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

federal securities

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

We conducted our audits in accordance with the standards of the PCAOB.

46 unchanged sentences

$2.11 billion of this total.

The fair values of the level 3 debt investments were determined by management using a discounted cash flow

analysis and inputs that are unobservable and reflect management’s judgments about assumptions that market participants would use

to determine a current transaction price.

The significant unobservable input in the discounted cash flow analysis is the discount rate.

The fair values of the level 3 debt investments

were determined by management using a discounted cash flow analysis and inputs that are unobservable and reflect management’s judgments

about assumptions that market participants would use to determine a current transaction price.

The significant unobservable input in the

discounted cash flow analysis is the discount rate.

The principal considerations for our determination that performing

14 unchanged sentences

to the discount rates;

or (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the external

market and industry data used in the discounted cash flow analysis and the reasonableness of management’s estimate by developing

an independent fair value estimate range for level 3 debt investments using independently determined significant unobservable inputs for

the discount rates and comparing the independent fair value estimate range to management’s estimates.

or (ii) leveraging recent market transactions ;

or (iii) the involvement of professionals with specialized skill

and knowledge to assist in evaluating the external market and industry data used in the discounted cash flow analysis and the reasonableness

of management’s estimate by developing an independent fair value estimate range for level 3 debt investments using independently

determined significant unobservable inputs for the discount rates and comparing the independent fair value estimate range to management’s

/s/ PricewaterhouseCoopers LLP

1 unchanged sentence

March 2, 2026

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)

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:

1 unchanged sentence

Non-controlled, affiliated investments (amortized cost of $ 118,459 and $ 15,438 , respectively)

Short-term investments (amortized cost of $ 48,683 and $ 12,802 )

Cash and cash equivalents

Investments in money market funds (amortized cost of $ 25,409 and $ 48,683 )

Deposits for investments

Receivable for sales of investments

Receivable for principal payments on investments

7 unchanged sentences

Unamortized Revolving Funding Facility II issuance costs

Subscription Credit Agreement (Note 6)

Unamortized Subscription Credit Facility issuance costs

Notes (Note 6)

Unamortized notes issuance costs

Shares repurchased payable (Note 7)

Distributions payable

13 unchanged sentences

Net Asset Value Per Common Share

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Statements of Operations

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

the years ended December 31,

Investment income

from investments:

income from non-controlled, non-affiliated investments

income from non-controlled, affiliated investments

Investment Income

general and administrative expenses

See accompanying notes to consolidated financial

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 from non-controlled, non-affiliated investments

Interest income from non-controlled, affiliated investments

Payment-in-kind interest income from non-controlled, non-affiliated investments

Dividend income

Total Investment Income

Management fees

Incentive fees

Interest expense

Professional fees

Directors fees

Other general and administrative expenses

Total Expenses

Management fee waiver (Note 3)

Incentive fee waiver (Note 3)

Investment Income (Loss)

and unrealized gains (losses) on investments

realized gains (losses):

Non-controlled,

non-affiliated investments

Net Investment Income (Loss)

Realized and unrealized gains (losses) on investments

Net realized gains (losses):

change in unrealized gains (losses):

Non-controlled,

non-affiliated investments

Non-controlled,

affiliated investments

income tax expense

Non-controlled, non-affiliated investments

Total net realized gains (losses)

Net change in unrealized gains (losses):

realized and unrealized gains (losses)

Increase (Decrease) in Net Assets Resulting from Operations

Common Share Data:

and diluted net investment income per common share

and diluted net increase in net assets resulting from operations

Average Common Shares Outstanding - Basic and Diluted

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Statements of Changes in Net Assets

the years ended December 31,

Increase (Decrease) in Net

Assets Resulting from Operations:

Net investment

income (loss)

Net realized gains (losses)

on investments

change in unrealized gains (losses) on investments, net of tax

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Total net change in unrealized gains (losses)

Total realized and unrealized gains (losses)

Income tax (expense) benefit on unrealized appreciation/depreciation on investments

Net Increase in Net Assets Resulting from Operations

Per Common Share Data:

Basic and diluted net investment income per common share

Basic and diluted net increase in net assets resulting from operations

Weighted Average Common Shares Outstanding - Basic and Diluted

See accompanying notes to consolidated

financial statements.

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:

Decrease in Net Assets Resulting

from Stockholder Dividends

to stockholders

Net investment income (loss)

Net realized gains (losses) on investments

Net change in unrealized gains (losses) on investments

Income tax (expense) benefit on unrealized appreciation/depreciation on investments

Net Increase in Net Assets Resulting from Operations

Decrease in Net Assets Resulting from Stockholder Dividends

Increase in Net Assets Resulting

from Capital Share Transactions

Dividends to stockholders

Net Decrease in Net Assets Resulting from Stockholder Dividends

Increase (Decrease) in Net Assets Resulting from Capital Share Transactions

Issuance of common shares

net of underwriting and offering costs

Common stock purchased

under the share repurchase program

Reinvestment of

Increase in Net Assets Resulting from Capital Share Transactions

Total Increase (Decrease)

in Net Assets

Common stock purchased under the share repurchase program

Reinvestment of dividends

Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions

Total Increase (Decrease) in Net Assets

Net Assets, Beginning of Period

Net Assets, End of Period

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Statements of Cash Flows

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,

1 unchanged sentence

Net increase (decrease) in net assets resulting from operations

Adjustments to reconcile net increase (decrease) in net assets resulting from

operations to net cash used in operating activities:

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:

Net realized (gains)/losses on investments

1 unchanged sentence

Net accretion of discount on investments

Sales (purchases) of short-term investments, net

Sales (purchases) of investments in money market funds, net

Purchases of portfolio investments

3 unchanged sentences

Increase/(decrease) in operating assets and liabilities:

(Increase)/decrease in deposits for investments

(Increase)/decrease in receivable for sales of investments

(Increase)/decrease in interest and dividends receivable

(Increase)/decrease in deferred offering costs

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

Increase/(decrease) in excise tax payable

Increase/(decrease) in accrued excise tax expense

(Increase)/decrease in prepaid expenses and other assets

2 unchanged sentences

Increase/(decrease) in incentive fee payable

Increase/(decrease) in accrued organizational and offering costs, net

Increase/(decrease) in accrued expenses and other liabilities

4 unchanged sentences

Borrowings on Revolving Funding Facility II, net

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

Borrowings/(payments) on Subscription Credit Agreement, net

Payments of debt issuance costs

Payable for shares repurchased

Dividends paid in cash

Proceeds from issuance of common shares, net of underwriting & offering costs

Proceeds from issuance of common shares

Proceeds from issuance of Notes

1 unchanged sentence

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Net increase (decrease) in cash

Cash, beginning of period

Cash, end of period

Supplemental and Non-Cash Information:

1 unchanged sentence

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

accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Debt and Equity Investments

Debt Investments

Aerospace & defense

Aviation Concepts, LLC First lien senior secured loan 9.24 % 5.50 % - SOFR(M) 12/17/2030 $ 16,420 $ 15,919 $ 16,420 1.5 %

First lien senior secured delayed draw loan 9.24 % 5.50 % - SOFR(M) 12/17/2030 - - - 0.0 %

First lien senior secured revolving loan 9.24 % 5.50 % - SOFR(M) 12/17/2030 - - - 0.0 %

Fastener Distribution Holdings, LLC First lien senior secured loan 8.42 % 4.75 % - SOFR(Q) 11/4/2031 19,866 19,724 20,065 1.8 %

First lien senior secured delayed draw loan 8.42 % 4.75 % - SOFR(Q) 11/4/2031 2,885 2,855 2,913 0.3 %

TransDigm Inc (7) First lien senior secured loan 6.22 % 2.50 % - SOFR(M) 2/28/2031 6,924 6,953 6,948 0.6 %

Vitesse Systems Parent, LLC First lien senior secured loan 10.93 % 7.26 % - SOFR(M) 12/22/2028 30,584 30,075 30,431 2.7 %

First lien senior secured revolving loan 10.96 % 7.26 % - SOFR(Q) 12/22/2028 6,239 6,128 6,208 0.6 %

82,918 81,654 82,985 7.5 %

Automobile components

Clarios Global LP (7)(8) First lien senior secured loan 6.22 % 2.50 % - SOFR(M) 5/6/2030 4,985 5,002 4,985 0.4 %

Speedstar Holding LLC First lien senior secured loan 9.84 % 6.00 % - SOFR(M) 7/22/2027 6,039 6,000 5,948 0.5 %

First lien senior secured delayed draw loan 9.84 % 6.00 % - SOFR(M) 7/22/2027 659 654 650 0.1 %

WAM CR Acquisition, Inc.

(Wolverine) First lien senior secured loan 10.09 % 6.25 % - SOFR(Q) 7/23/2029 26,561 26,151 26,826 2.4 %

38,244 37,807 38,409 3.4 %

Biotechnology

Alcami Corporation First lien senior secured delayed draw loan 10.83 % 7.10 % - SOFR(M) 12/21/2028 838 838 838 0.1 %

First lien senior secured revolving loan 10.83 % 7.10 % - SOFR(M) 12/21/2028 332 305 332 0.0 %

First lien senior secured loan 10.97 % 7.15 % - SOFR(Q) 12/21/2028 11,383 11,161 11,383 1.0 %

12,553 12,304 12,553 1.1 %

Building products

Ruff Roofers Buyer, LLC First lien senior secured loan 8.84 % 5.00 % - SOFR(Q) 11/19/2029 7,043 6,778 6,972 0.6 %

First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 11/19/2029 2,640 2,611 2,613 0.2 %

First lien senior secured revolving loan 8.84 % 5.00 % - SOFR(Q) 11/19/2029 - - - 0.0 %

First lien senior secured delayed draw loan 8.84 % 5.00 % - SOFR(Q) 11/19/2029 - - - 0.0 %

First lien senior secured delayed draw loan 8.84 % 5.00 % - SOFR(Q) 11/19/2029 5,264 5,234 5,211 0.5 %

First lien senior secured delayed draw loan 8.67 % 5.00 % - SOFR(Q) 11/19/2029 2,642 2,642 2,615 0.2 %

US Masonry & Building Products Co.

(f/k/a US Anchors Group, Inc.) First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 7/15/2029 17,021 16,741 17,021 1.5 %

First lien senior secured revolving loan 8.73 % 5.00 % - SOFR(M) 7/15/2029 370 321 370 0.1 %

34,980 34,327 34,802 3.1 %

Fralock Buyer LLC First lien senior secured loan 9.67 % 6.00 % - SOFR(Q) 9/30/2026 12,913 12,798 12,881 1.2 %

First lien senior secured loan 9.67 % 6.00 % - SOFR(Q) 9/30/2026 4,443 4,426 4,432 0.4 %

First lien senior secured revolving loan 9.67 % 6.00 % - SOFR(Q) 9/30/2026 3,338 3,336 3,330 0.3 %

Gage CR Acquisition, LLC First lien senior secured loan 8.92 % 5.25 % - SOFR(Q) 10/1/2030 27,048 26,570 27,048 2.4 %

First lien senior secured revolving loan 8.92 % 5.25 % - SOFR(Q) 10/1/2030 - - - 0.0 %

TL Atlas Merger Sub Corp.

(Zep) First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 6/30/2031 33,605 33,252 34,025 3.1 %

First lien senior secured revolving loan 8.67 % 5.00 % - SOFR(Q) 6/30/2031 - - - 0.0 %

81,347 80,382 81,716 7.4 %

Commercial services & supplies

Advanced Environmental Monitoring Intermediate, Inc.

(9) First lien senior secured loan 10.24 % 6.40 % - SOFR(Q) 12/31/2028 3,651 3,610 3,651 0.3 %

First lien senior secured loan 10.24 % 6.40 % - SOFR(Q) 12/31/2028 12,559 12,386 12,559 1.1 %

First lien senior secured loan 10.09 % 6.40 % - SOFR(Q) 12/31/2028 7,372 7,340 7,372 0.7 %

First lien senior secured loan 10.09 % 6.40 % - SOFR(Q) 12/31/2028 2,787 2,725 2,787 0.3 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

AeriTek Global Holdings LLC First lien senior secured loan 10.32 % 6.50 % - SOFR(Q) 8/27/2030 10,027 9,886 10,027 0.9 %

First lien senior secured revolving loan 10.32 % 6.50 % - SOFR(Q) 8/27/2030 415 400 415 0.0 %

Allentown, LLC First lien senior secured loan 10.97 % 6.15 % 1.00 % SOFR(Q) 4/22/2027 7,580 7,518 7,371 0.7 %

First lien senior secured delayed draw loan 10.97 % 6.15 % 1.00 % SOFR(Q) 4/22/2027 1,369 1,356 1,332 0.1 %

First lien senior secured revolving loan 12.75 % 5.00 % 1.00 % PRIME 4/22/2027 104 98 101 0.0 %

American Equipment Holdings LLC First lien senior secured loan 10.19 % 6.00 % - SOFR(S) 5/5/2028 13,056 12,813 13,056 1.2 %

First lien senior secured loan 10.19 % 6.00 % - SOFR(S) 5/5/2028 1,398 1,393 1,398 0.1 %

First lien senior secured loan 10.06 % 6.00 % - SOFR(S) 5/5/2028 1,679 1,662 1,679 0.1 %

First lien senior secured loan 10.20 % 6.00 % - SOFR(S) 5/5/2028 456 456 456 0.0 %

First lien senior secured loan 10.04 % 6.00 % - SOFR(S) 5/5/2028 520 514 520 0.0 %

First lien senior secured loan 10.01 % 6.00 % - SOFR(S) 5/5/2028 2,135 2,115 2,135 0.2 %

First lien senior secured delayed draw loan 10.19 % 6.00 % - SOFR(S) 5/5/2028 5,035 5,014 5,035 0.5 %

First lien senior secured delayed draw loan 10.06 % 6.00 % - SOFR(S) 5/5/2028 4,010 3,917 4,010 0.4 %

First lien senior secured revolving loan 10.19 % 6.00 % - SOFR(S) 5/5/2028 - - - 0.0 %

Arborworks Acquisition, LLC (10)(11) First lien senior secured loan - - - - 11/6/2028 4,688 4,688 4,688 0.4 %

First lien senior secured revolving loan - - - - 11/6/2028 2,139 2,139 2,139 0.2 %

Bloomington Holdco, LLC (BW Fusion) First lien senior secured loan 9.90 % 6.00 % - SOFR(Q) 5/1/2030 21,035 20,659 21,035 1.9 %

First lien senior secured revolving loan 9.67 % 6.00 % - SOFR(Q) 5/1/2030 3,612 3,442 3,612 0.3 %

BLP Buyer, Inc.

(Bishop Lifting Products) First lien senior secured loan 9.97 % 6.25 % - SOFR(M) 12/22/2029 25,708 25,360 25,708 2.3 %

First lien senior secured loan 9.97 % 6.25 % - SOFR(M) 12/22/2029 1,208 1,189 1,208 0.1 %

First lien senior secured loan 10.29 % 6.25 % - SOFR(S) 12/22/2029 506 499 506 0.0 %

First lien senior secured loan 9.97 % 6.25 % - SOFR(M) 12/22/2029 563 555 563 0.1 %

First lien senior secured delayed draw loan 9.97 % 6.25 % - SOFR(M) 12/22/2029 3,146 3,102 3,146 0.3 %

First lien senior secured revolving loan 9.97 % 6.25 % - SOFR(M) 12/22/2029 2,773 2,721 2,773 0.2 %

Connect America.Com, LLC (9) First lien senior secured loan 9.42 % 5.75 % - SOFR(Q) 10/11/2029 25,509 25,203 24,999 2.2 %

Diverzify Intermediate LLC First lien senior secured delayed draw loan 9.74 % 6.01 % - SOFR(M) 4/4/2026 - - - 0.0 %

First lien senior secured loan 9.74 % 6.01 % - SOFR(Q) 5/11/2027 5,972 5,909 5,823 0.5 %

Gusmer Enterprises, Inc.

First lien senior secured loan 9.33 % 5.61 % - SOFR(M) 5/7/2027 2,721 2,705 2,721 0.2 %

First lien senior secured delayed draw loan 9.33 % 5.61 % - SOFR(M) 5/7/2027 3,750 3,729 3,750 0.3 %

First lien senior secured delayed draw loan 9.33 % 5.61 % - SOFR(M) 5/7/2027 990 985 990 0.1 %

First lien senior secured revolving loan 9.39 % 5.61 % - SOFR(M) 5/7/2027 735 716 735 0.1 %

Superior Intermediate LLC (Landmark Structures) First lien senior secured loan 9.22 % 5.50 % - SOFR(M) 12/18/2029 17,223 16,834 17,395 1.6 %

First lien senior secured delayed draw loan 9.22 % 5.50 % - SOFR(M) 12/18/2029 - - - 0.0 %

First lien senior secured revolving loan 9.22 % 5.50 % - SOFR(M) 12/18/2029 - - - 0.0 %

PMFC Holding, LLC First lien senior secured loan 11.84 % 8.15 % - SOFR(Q) 7/31/2026 5,445 5,423 5,445 0.5 %

First lien senior secured delayed draw loan 11.99 % 8.15 % - SOFR(Q) 7/31/2026 2,731 2,730 2,731 0.2 %

First lien senior secured revolving loan 11.99 % 8.15 % - SOFR(Q) 7/31/2026 34 34 34 0.0 %

Regiment Security Partners LLC (12) First lien senior secured loan 13.84 % 10.15 % - SOFR(Q) 9/15/2026 6,360 6,325 5,381 0.5 %

First lien senior secured loan 15.50 % 8.75 % - PRIME 9/15/2026 3,305 3,305 2,796 0.3 %

First lien senior secured delayed draw loan 13.84 % 10.15 % - SOFR(Q) 9/15/2026 2,602 2,590 2,201 0.2 %

First lien senior secured revolving loan 13.84 % 10.15 % - SOFR(Q) 9/15/2026 780 774 660 0.1 %

Tempo Acquisition, LLC (7) First lien senior secured loan 5.47 % 1.75 % - SOFR(M) 8/31/2028 8,103 8,124 7,774 0.7 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Tapco Buyer LLC First lien senior secured loan 8.22 % 4.50 % - SOFR(M) 11/15/2030 10,471 10,340 10,576 1.0 %

First lien senior secured loan 8.23 % 4.50 % - SOFR(M) 11/15/2030 2,921 2,887 2,950 0.3 %

First lien senior secured delayed draw loan 8.23 % 4.50 % - SOFR(M) 11/15/2030 7,221 7,050 7,293 0.7 %

First lien senior secured revolving loan 8.22 % 4.50 % - SOFR(M) 11/15/2030 - - - 0.0 %

246,404 243,220 243,536 21.9 %

Containers & packaging

Carton Packaging Buyer, Inc.

(Century Box) First lien senior secured loan 10.09 % 6.25 % - SOFR(Q) 10/30/2028 23,776 23,400 23,538 2.1 %

First lien senior secured loan 9.99 % 6.25 % - SOFR(S) 10/30/2028 11,905 11,692 11,786 1.0 %

First lien senior secured revolving loan 9.98 % 6.25 % - SOFR(M) 10/30/2028 854 814 846 0.1 %

Drew Foam Companies Inc.

First lien senior secured loan 9.82 % 6.15 % - SOFR(Q) 12/5/2026 6,904 6,836 6,904 0.6 %

First lien senior secured loan 10.02 % 6.15 % - SOFR(Q) 12/5/2026 19,625 19,549 19,625 1.8 %

FCA, LLC First lien senior secured loan 9.21 % 5.00 % - SOFR(S) 7/18/2028 18,673 18,537 18,673 1.7 %

First lien senior secured loan 9.47 % 5.75 % - SOFR(M) 7/18/2028 740 731 748 0.1 %

M2S Group Intermediate Holdings, Inc.

First lien senior secured loan 8.59 % 4.75 % - SOFR(M) 8/25/2031 37,471 35,215 36,534 3.3 %

Monza Purchaser, LLC (Smyth) First lien senior secured loan 9.17 % 5.50 % - SOFR(Q) 2/28/2030 26,360 25,917 26,360 2.4 %

First lien senior secured revolving loan 9.17 % 5.50 % - SOFR(Q) 2/28/2030 1,234 1,095 1,234 0.1 %

First lien senior secured delayed draw loan 9.35 % 5.50 % - SOFR(Q) 2/28/2030 5,271 5,178 5,271 0.5 %

The Robinette Company First lien senior secured loan 9.84 % 6.00 % - SOFR(Q) 5/10/2029 10,123 9,976 10,225 0.9 %

First lien senior secured revolving loan 9.84 % 6.00 % - SOFR(Q) 5/10/2029 2,414 2,355 2,438 0.2 %

First lien senior secured delayed draw loan 9.84 % 6.00 % - SOFR(Q) 5/10/2029 - - - 0.0 %

WCHG Buyer, Inc.

(Handgards) First lien senior secured loan 8.47 % 4.75 % - SOFR(M) 4/10/2031 37,363 37,007 37,363 3.4 %

202,713 198,302 201,545 18.2 %

consumer services

BCDI Meteor Acquisition, LLC First lien senior secured loan

% - SOFR(Q) 6/29/2028 15,722

First lien senior secured loan 10.77

Diversified telecommunication services

Network Connex (f/k/a NTI Connect, LLC) First lien senior secured loan 8.57 % 4.90 % - SOFR(Q) 7/31/2027 3,552 3,542 3,552 0.3 %

Financial services

SGCP Intermediate, Inc.

(SG Credit) (13)(14) 11.00 % 11.00 % - FIXED 7/15/2030 80,000 78,557 80,000 7.2 %

11.00 % 11.00 % - FIXED 7/15/2030 13,000 12,547 13,000 1.2 %

93,000 91,104 93,000 8.4 %

Food products

BC CS 2, L.P.

(Cuisine Solutions, Inc.) (8)(14) 10.31 % 6.10 % - SOFR(S) 7/8/2028 14,793 14,604 14,793 1.3 %

BR PJK Produce, LLC (Keany) First lien senior secured loan 10.39 % 6.40 % - SOFR(Q) 12/14/2027 29,042 28,733 29,042 2.6 %

First lien senior secured loan 10.39 % 6.40 % - SOFR(Q) 12/14/2027 4,295 4,237 4,295 0.4 %

First lien senior secured delayed draw loan 10.38 % 6.40 % - SOFR(Q) 12/14/2027 4,321 4,253 4,321 0.4 %

First lien senior secured delayed draw loan 10.39 % 6.40 % - SOFR(Q) 12/14/2027 1,404 1,389 1,404 0.1 %

CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC) First lien senior secured loan 9.08 % 5.00 % - SOFR(S) 2/26/2030 13,757 13,500 13,894 1.3 %

First lien senior secured delayed draw loan 9.06 % 5.00 % - SOFR(S) 2/26/2030 8,375 8,264 8,459 0.8 %

First lien senior secured revolving loan 9.08 % 5.00 % - SOFR(S) 2/26/2030 - - - 0.0 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

City Line Distributors LLC First lien senior secured loan 10.10 % 6.26 % - SOFR(Q) 8/31/2028 8,717 8,586 8,717 0.8 %

First lien senior secured delayed draw loan 10.13 % 6.26 % - SOFR(Q) 8/31/2028 3,572 3,537 3,572 0.3 %

First lien senior secured revolving loan 10.10 % 6.26 % - SOFR(Q) 8/31/2028 - - - 0.0 %

Gulf Pacific Acquisition, LLC First lien senior secured loan 10.82 % 7.10 % - SOFR(M) 9/29/2028 19,771 19,523 19,771 1.8 %

First lien senior secured delayed draw loan 10.83 % 7.10 % - SOFR(M) 9/29/2028 1,667 1,664 1,667 0.2 %

First lien senior secured revolving loan 10.82 % 7.10 % - SOFR(M) 9/29/2028 2,697 2,635 2,697 0.2 %

IF&P Foods, LLC (FreshEdge) First lien senior secured loan 9.40 % 5.73 % - SOFR(Q) 10/3/2028 26,694 26,345 26,427 2.4 %

First lien senior secured loan 9.77 % 6.10 % - SOFR(Q) 10/3/2028 212 208 211 0.0 %

First lien senior secured loan 9.02 % 5.35 % - SOFR(Q) 10/3/2028 704 683 690 0.1 %

First lien senior secured delayed draw loan 9.40 % 5.73 % - SOFR(Q) 10/3/2028 3,964 3,917 3,924 0.4 %

First lien senior secured revolving loan 9.40 % 5.73 % - SOFR(Q) 10/3/2028 3,490 3,450 3,455 0.3 %

J&K Ingredients, LLC First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 11/16/2028 24,313 23,915 24,252 2.2 %

First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 11/16/2028 7,888 7,811 7,868 0.7 %

First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 11/16/2028 - - - 0.0 %

ML Buyer, LLC (Mama Lycha Foods, LLC) First lien senior secured loan 9.49 % 5.75 % - SOFR(Q) 9/7/2029 11,439 11,260 11,553 1.0 %

First lien senior secured revolving loan 9.49 % 5.75 % - SOFR(Q) 9/7/2029 798 739 806 0.1 %

Siegel Egg Co., LLC (10)(11) First lien senior secured loan - - - - 12/29/2026 14,727 14,620 8,615 0.8 %

First lien senior secured loan - - - - 12/29/2026 382 375 382 0.0 %

First lien senior secured loan - - - - 12/29/2026 912 894 912 0.1 %

First lien senior secured revolving loan - - - 12/29/2026 3,179 3,157 1,860 0.2 %

Texas Coffee Holdco LLC First lien senior secured delayed draw loan 11.49 % 7.65 % - SOFR(Q) 10/31/2030 15,000 14,451 15,000 1.3 %

First lien senior secured delayed draw loan 11.49 % 7.65 % - SOFR(Q) 10/31/2030 - - - 0.0 %

Worldwide Produce Acquisition, LLC First lien senior secured delayed draw loan 11.59 % 2.50 % 5.25 % SOFR(Q) 1/18/2029 571 561 553 0.0 %

First lien senior secured delayed draw loan 11.59 % 2.50 % 5.25 % SOFR(Q) 1/18/2029 474 455 459 0.0 %

First lien senior secured delayed draw loan 11.59 % 2.50 % 5.25 % SOFR(Q) 1/18/2029 - - - 0.0 %

First lien senior secured revolving loan 10.61 % 6.75 % - SOFR(Q) 1/18/2029 64 64 62 0.0 %

First lien senior secured loan 11.59 % 2.50 % 5.25 % SOFR(Q) 1/18/2029 2,913 2,864 2,819 0.3 %

230,135 226,694 222,480 20.1 %

Health care equipment & supplies

ECS Opco 1, LLC (Spectrum Vascular) First lien senior secured loan 8.42 % 4.75 % - SOFR(Q) 3/26/2031 5,861 5,775 5,670 0.5 %

First lien senior secured delayed draw loan 8.42 % 4.75 % - SOFR(Q) 3/26/2031 - - - 0.0 %

First lien senior secured revolving loan 8.42 % 4.75 % - SOFR(Q) 3/26/2031 - - - 0.0 %

LSL Industries, LLC First lien senior secured loan 10.67 % 6.76 % - SOFR(Q) 11/3/2027 17,897 17,531 17,763 1.6 %

First lien senior secured delayed draw loan 10.67 % 6.76 % - SOFR(Q) 11/3/2027 - - - 0.0 %

First lien senior secured revolving loan 10.67 % 6.76 % - SOFR(Q) 11/3/2027 - - - 0.0 %

23,758 23,306 23,433 2.1 %

Health care providers & services

Aegis Toxicology Sciences Corporation First lien senior secured loan 9.69 % 6.00 % - SOFR(Q) 6/20/2030 27,360 26,755 27,360 2.5 %

First lien senior secured revolving loan 9.69 % 6.00 % - SOFR(Q) 6/20/2030 - - - 0.0 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Brightview, LLC First lien senior secured loan 9.58 % 5.86 % - SOFR(M) 12/14/2026 12,607 12,602 12,607 1.1 %

First lien senior secured delayed draw loan 9.58 % 5.86 % - SOFR(M) 12/14/2026 1,684 1,683 1,684 0.2 %

First lien senior secured revolving loan 9.58 % 5.86 % - SOFR(M) 12/14/2026 620 618 620 0.1 %

Guardian Dentistry Practice Management, LLC First lien senior secured loan 9.33 % 5.61 % - SOFR(M) 8/20/2027 5,853 5,799 5,853 0.5 %

First lien senior secured delayed draw loan 9.33 % 5.61 % - SOFR(M) 8/20/2027 11,472 11,371 11,472 1.0 %

First lien senior secured delayed draw loan 9.33 % 5.61 % - SOFR(M) 8/20/2027 4,475 4,462 4,475 0.4 %

First lien senior secured revolving loan 11.25 % 4.50 % - Prime 8/20/2027 155 155 155 0.0 %

Guided Practice Solutions:

Dental, LLC (GPS) First lien senior secured delayed draw loan 10.08 % 6.36 % - SOFR(M) 11/24/2026 16,486 16,345 16,486 1.5 %

First lien senior secured delayed draw loan 10.08 % 6.36 % - SOFR(M) 11/24/2026 3,940 3,940 3,940 0.4 %

First lien senior secured delayed draw loan 10.08 % 6.36 % - SOFR(M) 11/24/2026 9,637 9,609 9,637 0.9 %

Integrated Dermatology LLC First lien senior secured delayed draw loan 10.35 % 6.50 % - SOFR(Q) 8/1/2030 25,425 24,907 25,552 2.3 %

First lien senior secured revolving loan 10.35 % 6.50 % - SOFR(Q) 8/1/2030 - - - 0.0 %

First lien senior secured delayed draw loan 10.36 % 6.50 % - SOFR(Q) 8/1/2030 938 835 942 0.1 %

Light Wave Dental Management, LLC First lien senior secured revolving loan 9.19 % 5.50 % - SOFR(Q) 6/30/2029 3,837 3,751 3,837 0.3 %

First lien senior secured loan 9.19 % 5.50 % - SOFR(Q) 6/30/2029 21,972 21,560 21,972 2.0 %

First lien senior secured loan 9.19 % 5.50 % - SOFR(Q) 6/30/2029 2,727 2,680 2,727 0.2 %

First lien senior secured loan 9.19 % 5.50 % - SOFR(Q) 6/30/2029 489 478 489 0.0 %

First lien senior secured loan 9.19 % 5.50 % - SOFR(Q) 6/30/2029 2,265 2,234 2,265 0.2 %

MVP VIP Borrower, LLC First lien senior secured loan 10.17 % 6.50 % - SOFR(Q) 1/3/2029 19,283 18,966 19,283 1.7 %

First lien senior secured delayed draw loan 10.17 % 6.50 % - SOFR(Q) 1/3/2029 1,555 1,530 1,555 0.1 %

NMA Holdings, LLC (Neuromonitoring Associates) First lien senior secured loan 8.70 % 5.00 % - SOFR(Q) 12/18/2030 16,261 15,974 16,423 1.5 %

First lien senior secured revolving loan 8.70 % 5.00 % - SOFR(Q) 12/18/2030 - - - 0.0 %

First lien senior secured delayed draw loan 8.70 % 5.00 % - SOFR(Q) 12/18/2030 769 732 777 0.1 %

Redwood MSO, LLC (Smile Partners) First lien senior secured loan 9.17 % 5.50 % - SOFR(Q) 12/20/2029 11,103 10,920 11,103 1.0 %

First lien senior secured delayed draw loan 9.17 % 5.50 % - SOFR(Q) 12/20/2029 1,216 1,190 1,216 0.1 %

First lien senior secured revolving loan 11.25 % 4.50 % - PRIME 12/20/2029 283 267 283 0.0 %

Refocus Management Services, LLC First lien senior secured loan 9.27 % 5.60 % - SOFR(Q) 2/14/2029 18,037 17,656 18,037 1.6 %

First lien senior secured delayed draw loan 9.44 % 5.60 % - SOFR(Q) 2/14/2029 7,091 6,933 7,091 0.6 %

First lien senior secured delayed draw loan 9.27 % 5.60 % - SOFR(Q) 2/14/2029 3,527 3,527 3,527 0.3 %

First lien senior secured revolving loan 9.44 % 5.60 % - SOFR(Q) 2/14/2029 496 464 496 0.1 %

Salt Dental Collective LLC First lien senior secured delayed draw loan 10.57 % 6.85 % - SOFR(M) 2/15/2028 3,940 3,940 3,940 0.4 %

235,503 231,883 235,804 21.2 %

Household durables

Curio Brands, LLC First lien senior secured loan 8.92 % 5.25 % - SOFR(Q) 4/2/2031 10,333 10,227 10,540 0.9 %

First lien senior secured revolving loan 8.92 % 5.25 % - SOFR(Q) 4/2/2031 - - - 0.0 %

First lien senior secured delayed draw loan 8.92 % 5.25 % - SOFR(Q) 4/2/2031 - - - 0.0 %

Del-Air Heating, Air Conditioning & Refrigeration, LLC First lien senior secured loan 9.37 % 5.50 % - SOFR(Q) 2/4/2031 5,259 5,190 5,259 0.5 %

First lien senior secured revolving loan 9.36 % 5.50 % - SOFR(Q) 2/4/2031 1,078 1,048 1,078 0.1 %

First lien senior secured delayed draw loan 9.32 % 5.50 % - SOFR(Q) 2/4/2031 3,362 3,306 3,362 0.3 %

20,032 19,771 20,239 1.8 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Household products

CREO Group Inc.

(HMS Manufacturing) First lien senior secured loan 10.35 % 6.51 % - SOFR(Q) 9/24/2029 33,794 33,211 32,949 3.0 %

First lien senior secured revolving loan 10.18 % 6.51 % - SOFR(Q) 9/24/2029 4,908 4,810 4,785 0.4 %

Home Brands Group Holdings, Inc.

(ReBath) First lien senior secured loan 8.72 % 5.00 % - SOFR(M) 1/8/2028 15,141 15,019 15,141 1.4 %

First lien senior secured revolving loan 8.72 % 5.00 % - SOFR(M) 1/8/2028 - - - 0.0 %

53,843 53,040 52,875 4.8 %

Allcat Claims Service, LLC First lien senior secured loan 8.57 % 4.85 % - SOFR(M) 7/7/2027 971 964 971 0.1 %

First lien senior secured delayed draw loan 8.57 % 4.85 % - SOFR(M) 7/7/2027 21,169 20,850 21,169 1.9 %

First lien senior secured delayed draw loan 8.57 % 4.85 % - SOFR(M) 7/7/2027 - - - 0.0 %

First lien senior secured revolving loan 8.57 % 4.85 % - SOFR(M) 7/7/2027 - - - 0.0 %

22,140 21,814 22,140 2.0 %

Improving Acquisition LLC First lien senior secured loan 10.32 % 6.65 % - SOFR(Q) 7/26/2027 34,538 34,264 34,538 3.1 %

First lien senior secured revolving loan 10.59 % 6.65 % - SOFR(M) 7/26/2027 167 156 167 0.0 %

34,705 34,420 34,705 3.1 %

Leisure products

MacNeill Pride Group Corp.

First lien senior secured loan 10.18 % 6.51 % - SOFR(Q) 4/22/2026 7,824 7,816 7,824 0.7 %

First lien senior secured delayed draw loan 10.18 % 6.51 % - SOFR(Q) 4/22/2026 1,465 1,463 1,465 0.1 %

First lien senior secured delayed draw loan 10.18 % 6.51 % - SOFR(Q) 4/22/2026 1,639 1,631 1,639 0.2 %

First lien senior secured revolving loan 10.18 % 6.51 % - SOFR(Q) 4/22/2026 - - - 0.0 %

Olibre Borrower LLC (Revelyst) First lien senior secured loan 9.42 % 5.75 % - SOFR(Q) 1/3/2030 33,586 33,021 33,670 3.0 %

TG Parent Newco LLC (Trademark Global LLC) (10)(11)(13) First lien senior secured loan - - - - 6/30/2027 12,623 12,555 7,100 0.6 %

First lien senior secured revolving loan - - - - 6/30/2027 2,815 2,800 1,583 0.2 %

VENUplus, Inc.

(f/k/a CTM Group, Inc.) First lien senior secured loan 11.32 % 6.85 % 0.75 % SOFR(M) 11/30/2026 4,446 4,410 4,424 0.4 %

64,398 63,696 57,705 5.2 %

MRC Keystone Acquisition LLC (Automated Handing Solutions) First lien senior secured loan 10.17 % 6.50 % - SOFR(Q) 12/18/2029 13,876 13,583 13,391 1.2 %

First lien senior secured revolving loan 10.17 % 6.50 % - SOFR(Q) 12/18/2029 - - - 0.0 %

CMT Intermediate Holdings, LLC (Capital Machine Technologies) First lien senior secured loan 9.22 % 5.50 % - SOFR(M) 3/29/2030 16,197 15,838 16,359 1.5 %

First lien senior secured revolving loan 9.22 % 5.50 % - SOFR(M) 3/29/2030 - - - 0.0 %

LEM Buyer, Inc.

(CFS Technologies Intermediate, Inc.) First lien senior secured loan 9.62 % 5.75 % - SOFR(Q) 4/24/2031 11,150 10,997 11,150 1.0 %

First lien senior secured loan 9.59 % 5.75 % - SOFR(Q) 4/24/2031 15,502 15,282 15,502 1.4 %

First lien senior secured delayed draw loan 9.59 % 5.75 % - SOFR(Q) 4/24/2031 4,899 4,807 4,899 0.5 %

First lien senior secured revolving loan 9.59 % 5.75 % - SOFR(Q) 4/24/2031 - - - 0.0 %

Eppinger Technologies, LLC (8) First lien senior secured loan 12.32 % 7.90 % 0.75 % SOFR(Q) 2/4/2026 24,847 24,810 24,847 2.2 %

First lien senior secured revolving loan 11.52 % 6.90 % 0.75 % SOFR(Q) 2/4/2026 1,884 1,880 1,884 0.2 %

Luxium Solutions, LLC First lien senior secured loan 8.92 % 5.25 % - SOFR(Q) 12/1/2027 3,776 3,742 3,776 0.3 %

First lien senior secured loan 8.92 % 5.25 % - SOFR(Q) 12/1/2027 4,650 4,608 4,650 0.4 %

First lien senior secured delayed draw loan 8.92 % 5.25 % - SOFR(Q) 12/1/2027 1,221 1,215 1,221 0.1 %

PVI Holdings, Inc (Vytl Controls Group Inc) First lien senior secured loan 8.92 % 4.94 % - SOFR(Q) 1/18/2028 23,411 23,250 23,411 2.1 %

RMH Systems, LLC First lien senior secured loan 8.90 % 5.00 % - SOFR(Q) 2/4/2030 10,185 10,013 9,930 0.9 %

First lien senior secured delayed draw loan 8.84 % 5.00 % - SOFR(Q) 2/4/2030 2,697 2,553 2,630 0.2 %

First lien senior secured revolving loan 8.90 % 5.00 % - SOFR(Q) 2/4/2030 - - - 0.0 %

United Titanium, LLC First lien senior secured loan 8.42 % 4.75 % - SOFR(M) 8/29/2031 18,412 18,146 18,596 1.7 %

First lien senior secured revolving loan 8.42 % 4.75 % - SOFR(M) 8/29/2031 - - - 0.0 %

152,707 150,724 152,246 13.7 %

See accompanying notes to

consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Personal care products

DRS Holdings III, Inc.

Scholl's) First lien senior secured loan 8.97 % 5.25 % - SOFR(M) 11/1/2028 10,039 9,984 10,039 0.9 %

First lien senior secured revolving loan 8.97 % 5.25 % - SOFR(M) 11/1/2028 - - - 0.0 %

PH Beauty Holdings III, Inc.

First lien senior secured loan 8.78 % 5.00 % - SOFR(S) 9/28/2027 13,920 13,699 13,920 1.3 %

23,959 23,683 23,959 2.2 %

Pharmaceuticals

Foundation Consumer Brands, LLC First lien senior secured loan 9.09 % 5.15 % - SOFR(Q) 2/12/2029 6,103 6,055 6,103 0.6 %

First lien senior secured revolving loan 9.09 % 5.15 % - SOFR(Q) 2/12/2029 - - - 0.0 %

6,103 6,055 6,103 0.6 %

Professional services

4 Over International, LLC (15) First lien senior secured loan 10.82 % 7.10 % - SOFR(M) 12/7/2026 18,772 18,511 18,209 1.7 %

CI (MG) Group, LLC (Mariani Premier Group) First lien senior secured loan 9.17 % 5.50 % - SOFR(Q) 3/27/2030 21,188 20,910 21,400 1.9 %

First lien senior secured delayed draw loan 9.17 % 5.50 % - SOFR(Q) 3/27/2030 4,407 4,316 4,451 0.4 %

First lien senior secured delayed draw loan 9.17 % 5.50 % - SOFR(Q) 3/27/2030 922 910 931 0.1 %

First lien senior secured revolving loan 9.17 % 5.50 % - SOFR(Q) 3/27/2030 1,537 1,503 1,552 0.1 %

DISA Holdings Corp.

First lien senior secured delayed draw loan 8.99 % 5.00 % - SOFR(Q) 9/9/2028 8,236 8,126 8,236 0.7 %

First lien senior secured delayed draw loan 8.99 % 5.00 % - SOFR(Q) 9/9/2028 1,051 1,050 1,051 0.1 %

First lien senior secured revolving loan 8.99 % 5.00 % - SOFR(Q) 9/9/2028 631 601 631 0.1 %

First lien senior secured loan 8.99 % 5.00 % - SOFR(Q) 9/9/2028 1,298 1,285 1,298 0.1 %

First lien senior secured loan 8.99 % 5.00 % - SOFR(Q) 9/9/2028 21,729 21,392 21,729 2.0 %

Envirotech Services, LLC First lien senior secured loan 9.34 % 5.50 % - SOFR(S) 1/18/2029 32,315 31,731 32,441 2.9 %

First lien senior secured loan 9.33 % 5.50 % - SOFR(S) 1/18/2029 121 120 122 0.0 %

First lien senior secured revolving loan 9.34 % 5.50 % - SOFR(S) 1/18/2029 - - - 0.0 %

PGI Parent LLC (Prime Electric) First lien senior secured loan 8.67 % 5.00 % - SOFR(Q) 12/31/2031 13,160 13,000 13,160 1.2 %

First lien senior secured revolving loan 8.67 % 5.00 % - SOFR(Q) 12/31/2031 - - - 0.0 %

KAMC Holdings, Inc.

(Franklin Energy) First lien senior secured loan 9.10 % 5.25 % - SOFR(Q) 8/1/2031 18,792 18,530 18,792 1.7 %

First lien senior secured revolving loan 9.07 % 5.25 % - SOFR(Q) 8/1/2031 472 447 472 0.0 %

144,631 142,432 144,475 13.0 %

Specialty retail

Harbor Freight Tools USA Inc (7) First lien senior secured loan 5.97 % 2.25 % - SOFR(M) 6/11/2031 17,281 17,295 17,096 1.6 %

Sundance Holdings Group, LLC (10)(11)(16) First lien senior secured loan - - - - 6/30/2025 9,246 9,210 239 0.0 %

First lien senior secured delayed draw loan - - - - 6/30/2025 628 628 16 0.0 %

First lien senior secured delayed draw loan - - - - 6/30/2025 173 152 260 0.0 %

27,328 27,285 17,611 1.6 %

Textiles, apparel & luxury goods

American Soccer Company, Incorporated (SCORE) First lien senior secured loan 14.07 % 7.40 % 3.00 % SOFR(Q) 7/20/2027 28,286 27,712 25,175 2.3 %

First lien senior secured revolving loan 14.07 % 7.40 % 3.00 % SOFR(Q) 7/20/2027 4,843 4,751 4,310 0.4 %

BEL USA, LLC (10)(11) First lien senior secured loan - - - - 6/2/2026 5,486 5,423 3,106 0.3 %

First lien senior secured loan - - - - 6/2/2026 90 89 51 0.0 %

YS Garments, LLC First lien senior secured loan 11.48 % 7.60 % - SOFR(Q) 8/9/2027 7,065 6,942 6,571 0.6 %

45,770 44,917 39,213 3.6 %

(Trading companies & distributors) (17)

AIDC IntermediateCo 2, LLC (Peak Technologies) First lien senior secured loan 8.97 % 5.25 % - SOFR(M) 7/22/2027 33,950 33,513 33,950 3.0 %

CGI Automated Manufacturing, LLC First lien senior secured loan 10.83 % 2.61 % 4.50 % SOFR(M) 12/15/2028 17,386 17,072 17,298 1.6 %

First lien senior secured loan 10.83 % 2.61 % 4.50 % SOFR(M) 12/15/2028 3,178 3,127 3,162 0.3 %

First lien senior secured loan 10.83 % 2.61 % 4.50 % SOFR(M) 12/15/2028 6,699 6,614 6,665 0.6 %

First lien senior secured delayed draw loan 10.83 % 2.61 % 4.50 % SOFR(M) 12/15/2028 3,625 3,524 3,607 0.3 %

First lien senior secured revolving loan 10.83 % 7.11 % - SOFR(M) 12/15/2028 3 - 3 0.0 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

(amounts in 000’s,

except number of shares, units)

Portfolio Company Footnotes (1)(2) Investment (3) Interest Rate Spread (4) PIK Rate Reference (5) Maturity

Date Principal /Par Amortized

Cost (6) Fair

Value Percentage

of Net Assets

Dusk Acquisition II Corporation (Motors & Armatures, Inc.

– MARS) First lien senior secured loan 9.67 % 6.00 % - SOFR(Q) 7/12/2029 7,394 7,147 7,394 0.7 %

First lien senior secured loan 9.67 % 6.00 % - SOFR(Q) 7/12/2029 3,905 3,835 3,905 0.4 %

Engineered Fastener Company, LLC (EFC International) First lien senior secured loan 10.32 % 6.65 % - SOFR(Q) 11/1/2027 23,128 22,871 23,128 2.1 %

Genuine Cable Group, LLC First lien senior secured loan 9.57 % 5.85 % - SOFR(M) 11/1/2026 28,468 28,246 28,397 2.5 %

First lien senior secured loan 9.57 % 5.85 % - SOFR(M) 11/1/2026 5,394 5,348 5,381 0.5 %

Images Acquisition, LLC First lien senior secured loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 5,591 5,542 5,591 0.5 %

First lien senior secured loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 7,770 7,731 7,770 0.7 %

First lien senior secured loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 4,427 4,394 4,427 0.4 %

First lien senior secured loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 1,021 1,016 1,021 0.1 %

First lien senior secured delayed draw loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 2,433 2,401 2,433 0.2 %

First lien senior secured revolving loan 9.47 % 5.75 % - SOFR(M) 7/30/2027 - - - 0.0 %

Krayden Holdings, Inc.

First lien senior secured delayed draw loan 8.42 % 4.75 % - SOFR(Q) 3/1/2029 1,772 1,772 1,772 0.2 %

First lien senior secured revolving loan 8.48 % 4.75 % - SOFR(M) 3/1/2029 608 575 608 0.0 %

First lien senior secured loan 8.42 % 4.75 % - SOFR(Q) 3/1/2029 9,300 9,121 9,300 0.8 %

Lakewood Acquisition Corporation (R&B Wholesale) First lien senior secured loan 9.37 % 5.50 % - SOFR(Q) 1/24/2030 29,473 28,803 29,767 2.7 %

First lien senior secured revolving loan 9.37 % 5.50 % - SOFR(Q) 1/24/2030 - - - 0.0 %

OAO Acquisitions, Inc.

(BearCom) First lien senior secured loan 8.74 % 5.00 % - SOFR(M) 12/27/2029 20,996 20,764 20,996 1.9 %

First lien senior secured loan 8.74 % 5.00 % - SOFR(M) 12/27/2029 851 844 851 0.1 %

First lien senior secured delayed draw loan 8.74 % 5.00 % - SOFR(M) 12/27/2029 4,463 4,433 4,463 0.4 %

First lien senior secured revolving loan 8.74 % 5.00 % - SOFR(M) 12/27/2029 - - - 0.0 %

TL Alpine Holding Corp.

(Air Distribution Technologies Inc.) First lien senior secured loan 9.72 % 6.00 % - SOFR(Q) 8/1/2030 18,070 17,772 18,070 1.6 %

Univar (Windsor Holdings LLC) (7) First lien senior secured loan 6.47 % 2.75 % - SOFR(M) 8/1/2030 9,860 9,907 9,874 0.9 %

Workholding US Holdings, LLC (Forkardt Hardinge) First lien senior secured loan 9.36 % 5.50 % - SOFR(Q) 10/23/2029 7,303 7,164 7,303 0.6 %

First lien senior secured revolving loan 9.27 % 5.50 % - SOFR(Q) 10/23/2029 3,422 3,365 3,422 0.3 %

262,262 258,673 262,330 23.6 %

Wireless telecommunication services

Centerline Communications, LLC (15) First lien senior secured loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 6,529 6,452 5,909 0.5 %

(15) First lien senior secured loan 11.97 % - 11.97 % SOFR(Q) 8/10/2027 936 924 941 0.1 %

(15) First lien senior secured loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 10,108 10,031 9,148 0.8 %

(15) First lien senior secured delayed draw loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 7,842 7,785 7,097 0.6 %

(15) First lien senior secured delayed draw loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 6,826 6,771 6,178 0.6 %

(15) First lien senior secured revolving loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 1,998 1,979 1,808 0.2 %

(15) First lien senior secured loan 11.47 % - 11.47 % SOFR(Q) 8/10/2027 1,119 1,103 1,013 0.1 %

35,358 35,045 32,094 2.9 %

Total Debt Investments 2,196,232 2,163,739 2,157,399 194.4 %

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Acquisition Number of Fair Percentage

Investment Date Shares/Units Cost Value of Net Assets

Equity Investments(10)(18)

Building products

US Masonry & Building Products Co.

(f/k/a US Anchors Group, Inc.) (19) Class A common 7/15/2024 566,666 - - 0.0 %

US Masonry & Building Products Co.

(f/k/a US Anchors Group, Inc.) (19) Preferred 7/15/2024 566,666 566 608 0.1 %

566 608 0.1 %

Commercial services & supplies

American Equipment Holdings LLC (20) Class A units 4/8/2022 175 284 477

ArborWorks Intermediate Holdco, LLC (19) Class A preferred units 11/6/2023 21,716 9,179 15,767

ArborWorks Intermediate Holdco, LLC (19) Class B preferred units 11/6/2023 21,716 - - 0.0 %

ArborWorks Intermediate Holdco, LLC (19) Class A common units 11/6/2023 2,604 - - 0.0 %

Bloomington Holdings, LP (BW Fusion) (19) Class A1 common units 11/5/2024 500 500 400 0.0 %

BLP Buyer, Inc.

(Bishop Lifting Products) (21) Class A common 2/1/2022 582,469 652 814 0.1 %

10,615 17,458 1.6 %

Containers & packaging

Robinette Company Acquisition, LLC (19) Class A common units 5/10/2024 9 - 90 0.0 %

Robinette Company Acquisition, LLC (19) Class A preferred units 5/10/2024 500 500 515 0.0 %

500 605 0.0 %

Financial services

SGCP Holdings, LLC (SG Credit) (13) Class A common 7/15/2025 408,387 11,437 11,437 1.0 %

SGCP Holdings, LLC (SG Credit) (13) Class C common 7/15/2025 102,260 563 563 0.1 %

12,000 12,000 1.1 %

Food products

BC CS 2, L.P.

(Cuisine Solutions, Inc.) (8)(14) Series A preferred stock 7/8/2022 2,000,000 2,000 3,440 0.3 %

CCFF Parent, LLC (California Custom Fruits & Flavors, LLC) (19) Class A-1 units 2/26/2024 750 511 1,000 0.1 %

City Line Distributors, LLC (19) Class A units 8/31/2023 669,866 670 621 0.1 %

Gulf Pacific Holdings, LLC (20) Class A common 9/30/2022 250 250 - 0.0 %

Gulf Pacific Holdings, LLC (20) Class C common 9/30/2022 - - 0.0 %

ML Buyer, LLC (Mama Lycha Foods, LLC) (19) Class A units 9/9/2024 250 250 188 0.0 %

Siegel Parent, LLC (22) Common 12/29/2021 250 250 - 0.0 %

Siegel Parent, LLC (22) Convertible note 1/19/2024 28 28 - 0.0 %

NSC Coffee Investors, LLC (19) Class A preferred 10/31/2025 182,277 2,000 2,000 0.2 %

WPP Fairway Aggregator A, L.P.

(IF&P Foods, LLC - FreshEdge) (20) Class A preferred 10/3/2022 773 773 476 0.0 %

WPP Fairway Aggregator A, L.P.

(IF&P Foods, LLC - FreshEdge) (20) Class B common 10/3/2022 - - 0.0 %

6,732 7,725 0.7 %

Health care equipment & supplies

LSL Industries, LLC (LSL Healthcare) (20) Common 11/1/2022 7,500 750 363 0.0 %

Health care providers & services

NMA Super Holdings, LLC (Neuromonitoring Associates) (19) Class A membership interests 12/18/2024 1,000,000 1,000 1,963 0.2 %

Leisure products

TG Parent Newco LLC (Trademark Global LLC) (13)(19) Common 9/16/2024 8 - - 0.0 %

RMH Parent LLC (RMH Systems) (19) Class A-1 Units 2/4/2025 500 500 300 0.0 %

Specialty retail

Sundance Direct Holdings, Inc.

(16) Common 10/27/2023 21,479 - - 0.0 %

Textiles, apparel & luxury goods

BVG SCORE Buyer, Inc.

(American Soccer Company, Incorporated) (22) Common 7/20/2022 1,000,000 1,000 - 0.0 %

BVG SCORE Buyer, Inc.

(American Soccer Company, Incorporated) (22) Preferred 7/20/2022 97,964 98 - 0.0 %

Total Equity Investments 33,761 41,022 3.7 %

Total Debt and Equity Investments 2,197,500 2,198,421 198.1 %

of Net Assets

in Money Market Funds

Morgan Stanley Institutional Liquidity Fund, Institutional Class, 3.63 %

Investments in Money Market Funds

in Excess of Other Assets

( 1,113,899 )

of December 31, 2025, unless otherwise noted, 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.

As of December 31, 2025, the

total value of the Company’s non-controlled, non-affiliated investments was $2,084,737.

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

(2) Unless otherwise noted, security is a Level 3 holding.

As of December 31, 2025, the aggregate value of Level 3 securities held by the Company was $2,151,743.

See Note 5 – Fair Value.

(3) 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.

(4) Includes Secured Overnight Financing Rate (“SOFR”) credit spread adjustment if applicable.

(5) Unless otherwise noted, all loans contain 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 SOFR (which can include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

(6) 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.

(7) Security is a Level 2 holding.

As of December 31, 2025, the aggregate value of Level 2 securities held by the Company was $46,678.

See Note 5 – Fair Value.

(8) 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, 2025, 2.2% of the Company’s total assets were in non-qualifying investments.

(9) 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.

(10) Debt investment on non-accrual status as of December 31, 2025.

(11) Non-income producing investment.

(12) On February 5, 2026, the Company amended its senior credit facility with Regiment Security Partners LLC and capitalized all interest earned during fiscal 2025.

As a result, the Company is reflecting all cash pay interest accrued in fiscal year 2025 as PIK interest income.

(13) As defined in the 1940 Act, the Company is deemed

to be an “affiliated person” of this portfolio company as the Company owns more than 5% but less than 25% of the portfolio

company’s voting securities or has the power to exercise control over management or policies of such portfolio company, including

through a management agreement (“non-controlled affiliate”).

As of December 31, 2025, the total value of the

Company’s investments in non-controlled affiliates was $113,684 (5.4% of amortized cost of total long-term investments) and are

described below.

In September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing

term loan and revolver became a restructured term loan and revolver and no debt was converted to equity.

The Company received new common

units in TG Parent Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities in aggregate own 20.77%).

In July 2025, the Company made an investment in

SG Credit Partners, Inc.

through debt and equity investments in SGCP Intermediate, Inc.

and SGCP Holdings, LLC (collectively “SG

Credit), an independent national credit platform focused on lower middle market investments.

The Company’s investment in SG Credit

was structured as an $80,000 term loan facility, $34,000 unfunded delayed draw term loan facility and a $12,000 common equity investment.

Through the common equity investment, the Company owns 22.5% of the outstanding common equity of SG Credit.

The common equity investment includes a call option providing the

Company the right, but not the obligation, to purchase additional equity interests in SG Credit through June 30, 2028 (the “Option

Expiration Date”).

The fixed call option price is based on the performance of SG Credit over the option period.

Upon exercise,

the Company would own 72.0% - 91.0% of the outstanding common equity of SG Credit depending upon certain tag-along rights and any shares

issued under SG Credit’s management incentive plan.

If the call option is exercised, the Company would still not control

SG Credit, nor would it consolidate its common equity investment in SG Credit.

See accompanying notes to consolidated financial statements.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2025

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

Investment (1) Value at 12/31/2024 Gross Additions (a) Gross Reductions (b) Net Change in Unrealized Gains(Losses) Value at 12/31/2025 Interest and PIK Income Dividend Income Other Income

TG Parent Newco LLC (Trademark Global LLC) - debt investment $ 12,196 $ - $ (82 ) $ (3,430 ) $ 8,684 $ - $ - $ -

TG Parent Newco LLC (Trademark Global LLC) - equity investment - - - - - - - -

SGCP Intermediate, Inc.

(SG Credit) - debt investment - 91,103 - 1,897 93,000 4,763 - -

SGCP Holdings, LLC (SG Credit) - equity investment - 12,000 - - 12,000 - - -

Total $ 12,196 $ 103,103 $ (82 ) $ (1,533 ) $ 113,684 $ 4,763 $ - $ -

(a) Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind (“PIK”) interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this controlled affiliated category from a different category.

(b) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.

(14) 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.

that is characterized as subordinated debt.

In addition, the Company’s senior secured loan in SG Credit is considered subordinated debt.

(15) All or a portion of the stated interest rate may be settled in PIK

for a specified period pursuant to the credit agreement.

(16) Portfolio company is in a liquidation process and, as such, the maturity

date of our debt investment in this portfolio company will not be finally determined until such process is complete.

Our debt investment

in this portfolio company is on non-accrual status.

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

In instances where the composition of portfolio companies within a category does not as closely align with the GICS, Level 3 – Industry, the Company presents a more specific description, keeping the GICS, Level 3 – Industry in parenthesis for reference.

(18) Security is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.

(19) KABDC Corp, LLC, a wholly owned subsidiary of the Company, owns common and/or preferred equity of ArborWorks Intermediate Holdco, LLC, Bloomington Holdings, LP (BW Fusion), City Line Distributors LLC, CCFF Parent, LLC (California Custom Fruits & Flavors, LLC), ML Buyer, LLC (Mama Lycha Foods, LLC), NMA Super Holdings, LLC (Neuromonitoring Associates), NSC Coffee Investors, LLC (Texas Coffee Partners Ltd.), Robinette Company Acquisition, LLC, RMH Parent LLC (RMH Systems), TG Parent Newco LLC (Trademark Global LLC) and US Masonry & Building Products Co.

(f/k/a US Anchors Group, Inc.).

(20) The Company owns 31.07% 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, WPP Fairway Aggregator A, L.P.

(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.

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

(Bishop Lifting Products).

(22) The Company owns 17.59% 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 BVG SCORE Buyer, Inc.

(American Soccer Company, Incorporated).

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

(23) The indicated rate is the yield as of December 31, 2025.

Interest rate swap contracts

Below are the Company’s outstanding interest rate swap contracts

as of December 31, 2025.

The Company designed each interest rate swap as the hedging instrument in a qualifying hedge accounting relationship.

See Note 6 – Debt.

Counterparty Hedged Instrument Company Receives Company Pays Maturity Date Notional Amount Fair Value Unrealized Appreciation (Depreciation) Upfront Payments / Receipts

Regions Bank Series D Notes 5.80 % S + 2.3700% 6/30/2028 $ 60,000 $ (24 ) $ (24 ) -

Regions Bank Series E Notes 6.15 % S + 2.6565% 10/15/2030 100,000 (275 ) (275 ) -

$ 160,000 $ (299 ) $ (299 )

See accompanying notes to

consolidated financial statements.

Anderson BDC, Inc.

155 unchanged sentences

SOFR(M) 12/18/2029 - - - 0.0 %

First lien senior secured revolving loan 10.38 % 6.00 % - SOFR(M) 12/18/2029 - - - 0.0 %

First lien senior secured revolving loan 10.38 % 6.00 % -

SOFR(M) 12/18/2029 - - - 0.0 %

PMFC Holding, LLC First lien senior secured loan 12.74 % 8.00 % -

8 unchanged sentences

SOFR(Q) 9/15/2026 2,602 2,582 2,602 0.2 %

First lien senior secured revolving loan 12.50 % 8.00 % -

SOFR(Q) 9/15/2026 1,452 1,434 1,452 0.1 %

accompanying notes to consolidated financial statements.

8 unchanged sentences

Value Percentage of

First lien senior secured revolving loan 12.50 % 8.00 % - SOFR(Q) 9/15/2026 1,452 1,434 1,452 0.1 %

Tapco Buyer LLC First lien senior secured loan 9.52 % 5.00 % -

106 unchanged sentences

SOFR(Q) 7/23/2030 4,004 3,941 4,004 0.3 %

First lien senior secured revolving loan 10.05 % 5.63 % -

SOFR(Q) 7/23/2030 2,303 2,248 2,303 0.2 %

First lien senior secured revolving loan 10.05 % 5.63 % - SOFR(Q) 7/23/2030 2,303 2,248 2,303 0.2 %

J&K Ingredients, LLC First lien senior secured loan 10.83 % 6.50 % -

10 unchanged sentences

SOFR(S) 1/18/2029 461 437 452 0.0 %

First lien senior secured revolving loan 11.00 % 6.75 % - SOFR(S) 1/18/2029 - - - 0.0 %

First lien senior secured revolving loan 11.00 % 6.75 % -

SOFR(S) 1/18/2029 - - - 0.0 %

First lien senior secured loan 11.00 % 6.75 % -

233 unchanged sentences

Trading companies & distributors

AIDC Intermediate Co 2, LLC (Peak Technologies)

AI DC Intermediate Co 2, LLC (Peak Technologies)

First lien senior secured loan 9.59 % 5.25 % - SOFR(M) 7/22/2027 34,300 33,591 34,129 2.9 %

134 unchanged sentences

Total Debt and Equity Investments 1,972,055 1,995,143 168.2 %

Number of Shares Cost Fair Value Percentage of Net Assets

Shares Cost Fair Value Percentage

of Net Assets

Short-Term Investments

8 unchanged sentences

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2024

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

(2) Unless otherwise noted, security is a Level 3 holding.

As of December 31, 2024, the aggregate value of Level 3 securities held by the Company was $1,741,919.

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

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

otherwise noted, security is a Level 3 holding.

As of December 31, 2024, the aggregate value of Level 3 securities held by the Company

was $1,741,919.

See Note 5 – Fair Value.

(3) 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.

(4) Unless otherwise noted, all loans contain 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 Financing Rate (“SOFR”) (which can include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

(5) 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.

(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, 2024, 9.0% 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) Security is a Level 2 holding.

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.

otherwise noted, all loans contain 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 Financing Rate (“SOFR”) (which can

include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or 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.

(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, 2024, 9.0% of the Company’s total assets were in non-qualifying investments.

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

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.

is a Level 2 holding.

As of December 31, 2024, the aggregate value of Level 2 securities held by the Company was $253,224.

See Note 5 – Fair Value.

(9) Debt investment on non-accrual status as of December 31, 2024.

(10) Non-income producing investment.

(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.

– Fair Value.

investment on non-accrual status as of December 31, 2024.

(10) Non-income

producing investment.

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.

This investment is characterized as subordinated debt.

(12) In September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing term loan and revolver became a restructured term loan and revolver and no debt was converted to equity.

The Company did receive new common units in TG Parent Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities as a whole own 20.77%).

As of December 31, 2024, the amortized cost basis of Trademark Global LLC was $15,438 and was 0.8% of the total amortized cost basis of our debt investments of $1,952,708.

September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing term loan and revolver

became a restructured term loan and revolver and no debt was converted to equity.

The Company did receive new common units in TG Parent

Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities as a whole own 20.77%).

As of December 31, 2024, the

amortized cost basis of Trademark Global LLC was $15,438 and was 0.8% of the total amortized cost basis of our debt investments of $1,952,708.

The restructure extended the maturity from July 30, 2024 to July 30, 2030;

the rate changed from S + 5.75% to S + 8.50%.

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2024

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

defined in the 1940 Act, the Company is deemed to be an “affiliated person” of this portfolio company as the Company owns

more than 5% but less than 25% of the portfolio company’s voting securities or has the power to exercise control over management

or policies of such portfolio company, including through a management agreement (“non-controlled affiliate”).

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

31, 2024, the total value of the Company’s non-controlled affiliated investments was $12,196.

Transactions related to the Company’s

investment in a non-controlled affiliate for the period December 31, 2024 were as follows:

Investment (1) Value at 12/30/2023 Gross Additions (a) Gross Reductions (b) Net Change in Unrealized Gains(Losses) Value at 12/31/2024 Interest and PIK Income Dividend Income Other Income

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

As defined in the 1940 Act, the Company

is deemed to be an “affiliated person” of this portfolio company as the Company owns more than 5% but less than 25% of the

portfolio company’s voting securities or has the power to exercise control over management or policies of such portfolio company,

including through a management agreement (“non-controlled affiliate”).

As of December 31, 2024, the total value of the Company’s

non-controlled affiliated investments was $12,196.

Transactions related to the Company’s investment in a non-controlled affiliate

for the period December 31, 2024 were as follows:

Investment (1) Value at

12/30/2023 Gross

Additions (a) Gross Reductions (b) Net Change

in Unrealized

12/31/2024 Interest

Income Dividend

Trademark Global, LLC $ 13,129 $ 1,035 $ - $ (1,968 ) $ 12,196 $ 754 $ - $ -

1 unchanged sentence

Total $ 13,129 $ 1,035 $ - $ (1,968 ) $ 12,196 $ 754 $ - $ -

(13) Security is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.

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

(15) KABDC Corp, LLC, a wholly owned subsidiary of the Company, owns common and/or preferred equity of Arborworks Acquisition LLC, Bloomington Holdings, LP (BW Fusion), City Line Distributors, LLC, CCFF Parent, LLC (California Custom Fruits & Flavors, LLC), ML Buyer, LLC (Mama Lycha Foods, LLC), NMA Super Holdings, LLC (Neuromonitoring Associates), Robinette Company Acquisition, LLC, TG Parent Newco LLC (Trademark Global LLC) and US Anchors, LP (Mechanical Plastics Corp.).

(16) The Company owns 33.46% 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.

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

(Bishop Lifting Products).

(18) The Company owns 17.15% 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).

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

(19) The indicated rate is the yield as of December 31, 2024.

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

Maturity Principal / Amortized Fair Percentage of

Portfolio Company (1) Footnotes Investment (2) Interest Rate Date Par Cost (3)(4) Value Net Assets

Debt and Equity Investments

Private Credit Investments (5)

Aerospace & defense

Acquisition Co., Inc.

(IAC) (6) First lien senior secured revolving loan 11.51% (S + 6.00%) 12/5/2028 $ - $ - $ - 0.0 %

First lien senior secured loan 11.51% (S + 6.00%) 12/5/2028 18,494 18,066 18,679 2.7 %

Fastener Distribution Holdings, LLC First lien senior secured loan 12.00% (S + 6.50%) 10/1/2025 20,494 20,090 20,494 3.0 %

First lien senior secured delayed draw loan 12.00% (S + 6.50%) 10/1/2025 9,098 9,009 9,098 1.3 %

Precinmac (US) Holdings, Inc.

First lien senior secured loan 11.46% (S + 6.00%) 8/31/2027 5,352 5,281 5,272 0.8 %

First lien senior secured delayed draw loan 11.46% (S + 6.00%) 8/31/2027 1,102 1,087 1,086 0.2 %

Vitesse Systems Parent, LLC First lien senior secured loan 12.63% (S + 7.00%) 12/22/2028 31,208 30,430 31,208 4.6 %

85,748 83,963 85,837 12.6 %

Automobile components

Speedstar Holding LLC First lien senior secured loan 12.79% (S + 7.25%) 1/22/2027 6,012 5,925 5,982 0.9 %

First lien senior secured delayed draw loan 12.78% (S + 7.25%) 1/22/2027 271 265 270 0.0 %

Vehicle Accessories, Inc.

First lien senior secured loan 10.72% (S + 5.25%) 11/30/2026 21,011 20,770 21,011 3.1 %

First lien senior secured revolving loan 10.72% (S + 5.25%) 11/30/2026 - - - 0.0 %

27,294 26,960 27,263 4.0 %

Biotechnology

Alcami Corporation (Alcami) First lien senior secured delayed draw loan 12.46% (S + 7.00%) 6/30/2024 - - - 0.0 %

First lien senior secured revolving loan 12.46% (S + 7.00%) 12/21/2028 - - - 0.0 %

First lien senior secured loan 12.46% (S + 7.00%) 12/21/2028 11,618 11,197 11,850 1.7 %

11,618 11,197 11,850 1.7 %

Building products

Ruff Roofers Buyer, LLC First lien senior secured loan 11.08% (S + 5.75%) 11/19/2029 7,186 6,910 7,186 1.1 %

First lien senior secured delayed draw loan 11.08% (S + 5.75%) 11/17/2024 - - - 0.0 %

First lien senior secured delayed draw loan 11.08% (S + 5.75%) 11/17/2025 - - - 0.0 %

First lien senior secured revolving loan 11.08% (S + 5.75%) 11/19/2029 - - - 0.0 %

Eastern Wholesale Fence First lien senior secured loan 13.50% (S + 8.00%) 10/30/2025 20,271 19,875 20,069 2.9 %

First lien senior secured revolving loan 13.50% (S + 8.00%) 10/30/2025 368 364 365 0.0 %

27,825 27,149 27,620 4.0 %

Capital markets

Atria Wealth Solutions, Inc.

First lien senior secured loan 11.97% (S + 6.50%) 5/31/2024 5,087 5,080 5,087 0.7 %

First lien senior secured delayed draw loan 11.97% (S + 6.50%) 5/31/2024 3,218 3,211 3,218 0.5 %

8,305 8,291 8,305 1.2 %

FAR Technologies Holdings, Inc.(f/k/a Cyalume Technologies Holdings, Inc.) First lien senior secured loan 10.61% (S + 5.00%) 8/30/2024 1,274 1,271 1,274 0.2 %

Fralock Buyer LLC First lien senior secured loan 11.61% (S + 6.00%) 4/17/2024 11,654 11,628 11,567 1.7 %

First lien senior secured revolving loan 11.61% (S + 6.00%) 4/17/2024 449 449 446 0.1 %

Shrieve Chemical Company, LLC First lien senior secured loan 11.90% (S + 6.38%) 12/2/2024 8,720 8,628 8,720 1.3 %

USALCO, LLC First lien senior secured loan 11.61% (S + 6.00%) 10/19/2027 18,989 18,684 18,989 2.8 %

First lien senior secured revolving loan 11.47% (S + 6.00%) 10/19/2026 1,049 1,021 1,049 0.1 %

42,135 41,681 42,045 6.2 %

Commercial services & supplies

Advanced Environmental Monitoring (7) First lien senior secured loan 12.01% (S + 6.50%) 1/29/2026 10,158 9,994 10,158 1.5 %

Allentown, LLC First lien senior secured loan 11.46% (S + 6.00%) 4/22/2027 7,586 7,535 7,586 1.1 %

First lien senior secured delayed draw loan 11.46% (S + 6.00%) 4/22/2027 1,370 1,354 1,370 0.2 %

First lien senior secured revolving loan 13.50% (P + 5.00%) 4/22/2027 235 234 235 0.0 %

American Equipment Holdings LLC First lien senior secured loan 11.86% (S + 6.00%) 11/5/2026 20,045 19,812 19,945 2.9 %

First lien senior secured delayed draw loan 11.88% (S + 6.00%) 11/5/2026 6,239 6,167 6,208 0.9 %

First lien senior secured delayed draw loan 11.81% (S + 6.00%) 11/5/2026 4,969 4,905 4,944 0.7 %

First lien senior secured revolving loan 11.74% (S + 6.00%) 11/5/2026 2,736 2,672 2,723 0.4 %

Arborworks Acquisition LLC (8)(9)(10) First lien senior secured loan 11/6/2028 4,688 4,688 4,688 0.7 %

First lien senior secured revolving loan 11/6/2028 1,253 1,253 1,253 0.2 %

BLP Buyer, Inc.

(Bishop Lifting Products) First lien senior secured loan 11.11% (S + 5.75%) 12/22/2029 26,099 25,549 26,099 3.8 %

First lien senior secured delayed draw loan 11.11% (S + 5.75%) 12/22/2025 - - - 0.0 %

First lien senior secured revolving loan 11.11% (S + 5.75%) 12/22/2029 273 196 273 0.0 %

Gusmer Enterprises, Inc.

First lien senior secured loan 12.47% (S + 7.00%) 5/7/2027 4,747 4,682 4,735 0.7 %

First lien senior secured delayed draw loan 12.47% (S + 7.00%) 5/7/2027 7,951 7,798 7,931 1.2 %

First lien senior secured revolving loan 12.47% (S + 7.00%) 5/7/2027 - - - 0.0 %

PMFC Holding, LLC First lien senior secured loan 13.02% (S + 7.50%) 7/31/2025 5,561 5,427 5,561 0.8 %

First lien senior secured delayed draw loan 13.03% (S + 7.50%) 7/31/2025 2,789 2,787 2,789 0.4 %

First lien senior secured revolving loan 13.03% (S + 7.50%) 7/31/2025 547 547 547 0.1 %

Regiment Security Partners LLC First lien senior secured loan 13.52% (S + 8.00%) 9/15/2026 6,383 6,309 6,383 1.0 %

First lien senior secured delayed draw loan 13.52% (S + 8.00%) 9/15/2026 2,609 2,588 2,609 0.4 %

First lien senior secured revolving loan 13.52% (S + 8.00%) 9/15/2026 1,448 1,427 1,448 0.2 %

117,686 115,924 117,485 17.2 %

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

Maturity Principal / Amortized Fair Percentage of

Portfolio Company (1) Footnotes Investment (2) Interest Rate Date Par Cost (3)(4) Value Net Assets

Containers & packaging

Carton Packaging Buyer, Inc.

(Century Box) First lien senior secured loan 11.39% (S + 6.00%) 10/30/2028 24,261 23,605 24,262 3.6 %

First lien senior secured revolving loan 11.39% (S + 6.00%) 10/30/2028 - - - 0.0 %

Drew Foam Companies, Inc.

First lien senior secured loan 12.75% (S + 7.25%) 11/5/2025 7,052 6,997 6,999 1.0 %

First lien senior secured loan 12.80% (S + 7.25%) 11/5/2025 20,045 19,789 19,895 2.9 %

FCA, LLC (FCA Packaging) First lien senior secured loan 11.90% (S + 6.50%) 7/18/2028 18,673 18,419 19,047 2.8 %

First lien senior secured revolving loan 11.90% (S + 6.50%) 7/18/2028 - - - 0.0 %

Innopak Industries, Inc.

First lien senior secured loan 11.71% (S + 6.25%) 3/5/2027 28,224 27,564 28,224 4.1 %

98,255 96,374 98,427 14.4 %

Diversified telecommunication services

Network Connex (f/k/a NTI Connect, LLC) First lien senior secured loan 11.00% (S + 5.50%) 1/31/2026 5,195 5,140 5,196 0.8 %

5,195 5,140 5,196 0.8 %

Food products

BC CS 2, L.P.

(Cuisine Solutions) (6)(11) 13.55% (S + 8.00%) 7/8/2028 21,555 21,063 21,555 3.2 %

BR PJK Produce, LLC (Keany) First lien senior secured loan 11.50% (S + 6.00%) 11/14/2027 29,564 28,973 29,564 4.3 %

First lien senior secured delayed draw loan 11.46% (S + 6.00%) 11/14/2027 2,938 2,812 2,938 0.4 %

City Line Distributors, LLC First lien senior secured loan 11.47% (S + 6.00%) 8/31/2028 8,895 8,576 8,895 1.3 %

First lien senior secured delayed draw loan 11.47% (S + 6.00%) 3/3/2025 - - - 0.0 %

First lien senior secured revolving loan 11.47% (S + 6.00%) 8/31/2028 - - - 0.0 %

Gulf Pacific Holdings, LLC First lien senior secured loan 11.25% (S + 5.75%) 9/30/2028 20,180 19,847 20,079 2.9 %

First lien senior secured delayed draw loan 11.38% (S + 5.75%) 9/30/2028 1,701 1,618 1,693 0.2 %

First lien senior secured revolving loan 11.29% (S + 5.75%) 9/30/2028 2,697 2,602 2,683 0.4 %

IF&P Foods, LLC (FreshEdge) First lien senior secured loan 11.07% (S + 5.63%) 10/3/2028 27,245 26,684 26,904 4.0 %

First lien senior secured loan 11.48% (S + 6.00%) 10/3/2028 216 211 213 0.0 %

First lien senior secured delayed draw loan 11.07% (S + 5.63%) 10/3/2028 4,045 3,969 3,994 0.6 %

First lien senior secured revolving loan 10.91% (S + 5.63%) 10/3/2028 1,759 1,690 1,737 0.3 %

J&K Ingredients, LLC First lien senior secured loan 11.63% (S + 6.25%) 11/16/2028 11,581 11,295 11,581 1.7 %

Siegel Egg Co., LLC First lien senior secured loan 11.99% (S + 6.50%) 12/29/2026 15,466 15,290 14,616 2.1 %

First lien senior secured revolving loan 11.99% (S + 6.50%) 12/29/2026 2,594 2,557 2,451 0.4 %

Worldwide Produce Acquisition, LLC First lien senior secured delayed draw loan 11.60% (S + 6.25%) 1/18/2029 631 587 625 0.1 %

First lien senior secured delayed draw loan 11.60% (S + 6.25%) 4/18/2024 - - - 0.0 %

First lien senior secured revolving loan 11.60% (S + 6.25%) 1/18/2029 198 190 196 0.0 %

First lien senior secured loan 11.60% (S + 6.25%) 1/18/2029 2,860 2,786 2,832 0.4 %

154,125 150,750 152,556 22.3 %

Health care providers & services

Brightview, LLC First lien senior secured loan 11.47% (S + 6.00%) 12/14/2026 12,870 12,855 12,645 1.9 %

First lien senior secured delayed draw loan 11.47% (S + 6.00%) 12/14/2026 1,719 1,714 1,689 0.3 %

First lien senior secured revolving loan 11.47% (S + 6.00%) 12/14/2026 774 774 761 0.1 %

Guardian Dentistry Partners First lien senior secured loan 11.97% (S + 6.50%) 8/20/2026 8,057 7,929 8,057 1.2 %

First lien senior secured delayed draw loan 11.97% (S + 6.50%) 8/20/2026 15,682 15,464 15,682 2.3 %

First lien senior secured delayed draw loan 11.97% (S + 6.50%) 8/20/2026 5,808 5,808 5,808 0.9 %

Guided Practice Solutions:

Dental, LLC (GPS) First lien senior secured delayed draw loan 11.72% (S + 6.25%) 12/29/2025 6,475 6,056 6,475 0.9 %

Light Wave Dental Management LLC First lien senior secured revolving loan 12.35% (S + 7.00%) 6/30/2029 2,181 2,099 2,181 0.3 %

First lien senior secured loan 12.35% (S + 7.00%) 6/30/2029 22,423 21,834 22,423 3.3 %

SGA Dental Partners Holdings, LLC First lien senior secured loan 11.67% (S + 6.00%) 12/30/2026 11,828 11,683 11,828 1.7 %

First lien senior secured loan 11.61% (S + 6.00%) 12/30/2026 1,681 1,563 1,681 0.2 %

First lien senior secured delayed draw loan 11.67% (S + 6.00%) 12/30/2026 11,024 10,856 11,024 1.6 %

First lien senior secured delayed draw loan 11.67% (S + 6.00%) 4/19/2024 - - - 0.0 %

First lien senior secured revolving loan 11.67% (S + 6.00%) 12/30/2026 - - - 0.0 %

100,522 98,635 100,254 14.7 %

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

Maturity Principal / Amortized Fair Percentage of

Portfolio Company (1) Footnotes Investment (2) Interest Rate Date Par Cost (3)(4) Value Net Assets

Health care equipment & supplies

LSL Industries, LLC (LSL Healthcare) First lien senior secured loan 12.15% (S + 6.50%) 11/3/2027 19,529 18,911 19,334 2.8 %

First lien senior secured delayed draw loan 12.15% (S + 6.50%) 11/3/2024 - - - 0.0 %

First lien senior secured revolving loan 12.15% (S + 6.50%) 11/3/2027 - - - 0.0 %

19,529 18,911 19,334 2.8 %

Household durables

Curio Brands, LLC First lien senior secured loan 10.96% (S + 5.50%) 12/21/2027 17,173 16,859 16,830 2.5 %

First lien senior secured revolving loan 10.96% (S + 5.50%) 12/21/2027 - - - 0.0 %

First lien senior secured delayed draw loan 10.96% (S + 5.50%) 12/21/2027 4,121 4,121 4,039 0.6 %

21,294 20,980 20,869 3.1 %

Household products

Home Brands Group Holdings, Inc.

(ReBath) First lien senior secured loan 10.29% (S + 4.75%) 11/8/2026 17,052 16,826 16,967 2.5 %

First lien senior secured revolving loan 10.29% (S + 4.75%) 11/8/2026 - - - 0.0 %

17,052 16,826 16,967 2.5 %

Allcat Claims Service, LLC First lien senior secured loan 11.53% (S + 6.00%) 7/7/2027 7,717 7,551 7,717 1.1 %

First lien senior secured delayed draw loan 11.53% (S + 6.00%) 7/7/2027 21,605 21,266 21,605 3.2 %

First lien senior secured revolving loan 11.53% (S + 6.00%) 7/7/2027 - - - 0.0 %

29,322 28,817 29,322 4.3 %

Domain Information Services Inc.

(Integris) First lien senior secured loan 11.29% (S + 5.75%) 9/30/2025 20,444 20,122 20,342 3.0 %

Improving Acquisition LLC First lien senior secured loan 12.22% (S + 6.50%) 7/26/2027 31,650 31,140 31,492 4.6 %

First lien senior secured revolving loan 12.22% (S + 6.50%) 7/26/2027 - - - 0.0 %

52,094 51,262 51,834 7.6 %

Leisure products

BCI Burke Holding Corp.

First lien senior secured loan 11.11% (S + 5.50%) 12/14/2027 15,373 15,219 15,603 2.3 %

First lien senior secured delayed draw loan 11.11% (S + 5.50%) 12/14/2027 578 545 586 0.1 %

First lien senior secured revolving loan 11.11% (S + 5.50%) 6/14/2027 - - - 0.0 %

VENUplus, Inc.

(f/k/a CTM Group, Inc.) First lien senior secured loan 12.29% (S + 6.75%) 11/30/2026 4,420 4,325 4,398 0.6 %

MacNeill Pride Group First lien senior secured loan 11.86% (S + 6.25%) 4/22/2026 8,254 8,198 8,151 1.2 %

First lien senior secured delayed draw loan 11.86% (S + 6.25%) 4/22/2026 3,277 3,221 3,236 0.5 %

First lien senior secured revolving loan 11.86% (S + 6.25%) 4/22/2026 - - - 0.0 %

Trademark Global LLC First lien senior secured loan 12.97% (S +7.50%, 1.50% is PIK) 7/30/2024 11,798 11,776 10,736 1.6 %

First lien senior secured revolving loan 12.97% (S +7.50%, 1.50% is PIK) 7/30/2024 2,630 2,627 2,393 0.3 %

46,330 45,911 45,103 6.6 %

Pennsylvania Machine Works, LLC First lien senior secured loan 11.61% (S + 6.00%) 3/6/2027 1,908 1,896 1,908 0.3 %

PVI Holdings, Inc First lien senior secured loan 12.16% (S + 6.77%) 1/18/2028 23,895 23,602 24,074 3.5 %

Techniks Holdings, LLC / Eppinger Holdings Germany GMBH (6) First lien senior secured loan 12.75% (S + 7.25%) 2/4/2025 24,812 24,468 24,688 3.6 %

First lien senior secured revolving loan 11.80% (S + 6.25%) 2/4/2025 1,050 1,003 1,045 0.2 %

51,665 50,969 51,715 7.6 %

Personal care products

DRS Holdings III, Inc.

Scholl’s) First lien senior secured loan 11.71% (S + 6.25%) 11/1/2025 11,004 10,954 11,004 1.6 %

First lien senior secured revolving loan 11.71% (S + 6.25%) 11/1/2025 - - - 0.0 %

PH Beauty Holdings III, Inc.

First lien senior secured loan 10.65% (S + 5.00%) 9/28/2025 9,442 9,278 9,183 1.3 %

Silk Holdings III Corp.

(Suave) First lien senior secured loan 13.10% (S + 7.75%) 5/1/2029 19,900 19,351 20,298 3.0 %

40,346 39,583 40,485 5.9 %

Pharmaceuticals

Foundation Consumer Brands First lien senior secured loan 11.79% (S + 6.25%) 2/12/2027 6,781 6,744 6,832 1.0 %

First lien senior secured revolving loan 11.79% (S + 6.25%) 2/12/2027 - - - 0.0 %

6,781 6,744 6,832 1.0 %

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

Maturity Principal / Amortized Fair Percentage

Portfolio Company (1) Footnotes Investment (2) Interest Rate Date Par Cost (3)(4) Value of Net Assets

Professional services

4 Over International, LLC First lien senior secured loan 12.46% (S + 7.00%) 12/7/2026 19,438 18,757 19,438 2.8 %

DISA Holdings Corp.

(DISA) First lien senior secured delayed draw loan 10.84% (S + 5.50%) 9/9/2028 3,714 3,578 3,714 0.5 %

First lien senior secured revolving loan 10.84% (S + 5.50%) 9/9/2028 392 347 392 0.1 %

First lien senior secured loan 10.84% (S + 5.50%) 9/9/2028 22,177 21,625 22,177 3.2 %

Universal Marine Medical Supply International, LLC (Unimed) First lien senior secured loan 13.01% (S + 7.50%) 12/5/2027 13,527 13,253 13,527 2.0 %

First lien senior secured revolving loan 13.00% (S + 7.50%) 12/5/2027 2,544 2,494 2,544 0.4 %

61,792 60,054 61,792 9.0 %

AIDC Intermediate Co 2, LLC (Peak Technologies) First lien senior secured loan 11.80% (S + 6.25%) 7/22/2027 34,650 33,736 34,650 5.1 %

Specialty retail

Sundance Holdings Group, LLC (7) First lien senior secured loan 15.03% (S + 9.50%, 1.50% is PIK) 5/1/2024 9,210 9,022 8,911 1.3 %

First lien senior secured delayed draw loan 15.03% (S + 9.50%, 1.50% is PIK) 5/1/2024 - - - 0.0 %

9,210 9,022 8,911 1.3 %

Textiles, apparel & luxury goods

American Soccer Company, Incorporated (SCORE) First lien senior secured loan 12.75% (S + 7.25%) 7/20/2027 29,816 29,317 29,145 4.3 %

First lien senior secured revolving loan 12.75% (S + 7.25%) 7/20/2027 2,128 2,067 2,080 0.3 %

BEL USA, LLC First lien senior secured loan 12.53% (S + 7.00%) 6/2/2026 5,804 5,774 5,804 0.8 %

First lien senior secured loan 12.53% (S + 7.00%) 6/2/2026 96 95 96 0.0 %

YS Garments, LLC First lien senior secured loan 13.00% (S + 7.50%) 8/9/2026 6,849 6,758 6,729 1.0 %

44,693 44,011 43,854 6.4 %

Trading companies & distributors

BCDI Meteor Acquisition, LLC (Meteor) First lien senior secured loan 12.45% (S + 7.00%) 6/29/2028 16,297 15,955 16,297 2.4 %

Broder Bros., Co.

First lien senior secured loan 11.61% (S+ 6.00%) 12/4/2025 4,640 4,439 4,640 0.7 %

CGI Automated Manufacturing, LLC First lien senior secured loan 12.61% (S + 7.00%) 12/17/2026 20,510 19,849 20,459 3.0 %

First lien senior secured loan 12.61% (S + 7.00%) 12/17/2026 6,681 6,559 6,664 1.0 %

First lien senior secured delayed draw loan 12.61% (S + 7.00%) 12/17/2026 3,616 3,510 3,607 0.5 %

First lien senior secured revolving loan 12.61% (S + 7.00%) 12/17/2026 327 244 327 0.0 %

EIS Legacy, LLC First lien senior secured loan 11.24% (S + 5.75%) 11/1/2027 18,079 17,838 18,079 2.6 %

First lien senior secured loan 11.27% (S + 5.75%) 11/1/2027 9,666 9,356 9,666 1.4 %

First lien senior secured delayed draw loan 11.24% (S + 5.75%) 4/20/2025 - - - 0.0 %

First lien senior secured revolving loan 11.24% (S + 5.75%) 11/1/2027 - - - 0.0 %

Engineered Fastener Company, LLC (EFC International) First lien senior secured loan 12.00% (S + 6.50%) 11/1/2027 23,604 23,113 23,899 3.5 %

Genuine Cable Group, LLC First lien senior secured loan 10.96% (S + 5.50%) 11/1/2026 29,057 28,336 28,984 4.2 %

First lien senior secured loan 10.96% (S + 5.50%) 11/1/2026 5,506 5,347 5,492 0.8 %

Images Acquisition, LLC First lien senior secured loan 11.75% (S + 6.25%) 7/30/2026 13,651 13,538 13,651 2.0 %

First lien senior secured delayed draw loan 11.75% (S + 6.25%) 7/30/2026 2,486 2,450 2,486 0.4 %

First lien senior secured loan 11.70% (S + 6.25%) 7/30/2026 4,522 4,457 4,522 0.7 %

First lien senior secured loan 11.75% (S + 6.25%) 7/30/2026 1,043 1,033 1,043 0.2 %

First lien senior secured revolving loan 11.75% (S + 6.25%) 7/30/2026 - - - 0.0 %

Krayden Holdings, Inc.

First lien senior secured delayed draw loan 11.20% (S + 5.75%) 3/1/2025 - - - 0.0 %

First lien senior secured revolving loan 11.20% (S + 5.75%) 3/1/2029 - - - 0.0 %

First lien senior secured loan 11.20% (S + 5.75%) 3/1/2029 9,491 9,099 9,491 1.4 %

OAO Acquisitions, Inc.

(BearCom) First lien senior secured loan 11.61% (S + 6.25%) 12/27/2029 21,370 20,979 21,370 3.1 %

First lien senior secured delayed draw loan 11.61% (S + 6.25%) 12/27/2025 - - - 0.0 %

First lien senior secured revolving loan 11.61% (S + 6.25%) 12/27/2029 - - - 0.0 %

United Safety & Survivability Corporation (USSC) First lien senior secured loan 11.79% (S + 6.25%) 9/30/2027 12,436 12,147 12,436 1.8 %

First lien senior secured loan 11.79% (S + 6.25%)

First lien senior secured delayed draw loan 11.79% (S + 6.25%) 9/30/2027 3,160 3,110 3,160 0.5 %

First lien senior secured revolving loan 11.79% (S + 6.25%) 9/30/2027 870 860 870 0.1 %

208,619 203,709 208,750 30.6 %

Wireless telecommunication services

Centerline Communications, LLC First lien senior secured loan 11.53% (S + 6.00%) 8/10/2027 14,945 14,751 13,936 2.0 %

First lien senior secured delayed draw loan 11.53% (S + 6.00%) 8/10/2027 7,044 6,954 6,568 1.0 %

First lien senior secured delayed draw loan 11.53% (S + 6.00%) 8/10/2027 6,202 6,112 5,783 0.9 %

First lien senior secured revolving loan 11.53% (S + 6.00%) 8/10/2027 1,800 1,778 1,679 0.2 %

First lien senior secured loan 11.53% (S + 6.00%) 8/10/2027 1,020 996 952 0.1 %

31,011 30,591 28,918 4.2 %

Total Private Credit Debt Investments 1,353,096 1,327,190 1,346,174 197.1 %

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

Percentage of

Equity Investments(9)

Automobile components

Accessories, Inc.

- Class A common

Accessories, Inc.

services & supplies

Equipment Holdings LLC - Class A units

(Bishop Lifting Products) - Class A common

Acquisition LLC – Class A preferred units

Acquisition LLC – Class B preferred units

Acquisition LLC – Class A common units

(Cuisine Solutions)

Line Distributors, LLC - Class A units

Pacific Holdings, LLC - Class A common

Pacific Holdings, LLC - Class C common

Foods, LLC (FreshEdge) - Class A preferred

Foods, LLC (FreshEdge) - Class B common

equipment & supplies

Industries, LLC (LSL Healthcare)

Information Services Inc.

Direct Holdings, Inc.

apparel & luxury goods

Soccer Company, Incorporated (SCORE)

Private Equity Investments

Private Investments

Percentage of

Short-Term Investments

American Treasury Obligations Fund - Institutional Class Z, 5.21%

Short-Term Investments

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.

accompanying notes to consolidated financial statements.

Anderson BDC, Inc.

Schedule of Investments

of December 31, 2023

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

(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”).

(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 equity.

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.

additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind (“PIK”)

interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more

existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this controlled

affiliated category from a different category.

reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments

and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.

(13) Security

is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may be deemed to be

“restricted securities” under the Securities Act.

Company owns 0.19% of the common equity and 0.43% of the preferred equity of Vehicle Accessorie s, Inc.

Corp, LLC, a wholly owned subsidiary of the Company, owns common and/or preferred equity of Arborworks Acquisition LLC, Bloomington Holdings,

LP (BW Fusion), City Line Distributors, LLC, CCFF Parent, LLC (California Custom Fruits & Flavors, LLC), ML Buyer, LLC (Mama Lycha

Foods, LLC), NMA Super Holdings, LLC (Neuromonitoring Associates), Robinette Company Acquisition, LLC, TG Parent Newco LLC (Trademark

Global LLC) and US Anchors, LP (Mechanical Plastics Corp.).

Company owns 33.46% 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.

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.

Company owns 17.15% 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 Company’s ownership of the Aggregator, the Company owns the respective units of each company listed above in the Schedule of

(19) The indicated rate is the yield as of December 31, 2024.

accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial

Kayne Anderson BDC, Inc.

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

Following its initial public offering, the Company’s

common stock began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “KBDC” on May 22, 2024.

The Company is managed by KA Credit Advisors,

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

On May 24, 2024, the Company completed its initial

public offering (“IPO”), issuing 6,000,000 shares of its common stock at a public offering price of $ 16.63 per share.

of underwriting fees and offering expenses, the Company received net cash proceeds of $ 92,363 .

The Company’s common stock began

trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “KBDC” on May 22, 2024.

Prior to its IPO, the Company conducted 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 made a capital commitment to purchase

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

From its initial closing of the private

offering (the “Initial Closing”) on February 5, 2021 through its final capital call closing on April 2, 2024, the Company

issued shares of its common stock equal to the aggregate capital commitment of $ 1,046,928 .

Following the final closing on April 2, 2024,

the Company had no remaining undrawn capital commitments.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

Significant Accounting Policies

Basis of Presentation —the

accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States

Basis of Presentation —

the accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States

of America (“GAAP”).

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

Certain prior period information has been reclassified

or conformed to the current period presentation and has no effect on the Company’s consolidated statements of assets and liabilities

or consolidated statement of operations as previously reported.

Consolidation — as provided under

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of providing services to the Company.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

Accordingly, the Company consolidated the accounts

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tax purposes and was formed to facilitate compliance with the requirements to be treated as a RIC under the Code by holding (directly

or indirectly through subsidiaries) equity or equity related investments in portfolio companies organized as limited liability companies

or indirectly through a subsidiary) equity or equity related investments in portfolio companies organized as limited liability companies

or limited partnerships.

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Actual results could differ materially from those estimates.

Cash and Cash Equivalents —cash

and cash equivalents include short-term, liquid investments with an original maturity of three months or less and include money market

Cash and Cash Equivalents —

cash and cash equivalents include short-term, liquid investments with an original maturity of three months or less and include money market

fund accounts.

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

Investment Valuation, Fair Value —the

Company conducts the valuation of its investments consistent with GAAP and the 1940 Act.

Investment Valuation, Fair Value —

the Company conducts the valuation of its investments consistent with GAAP and the 1940 Act.

The Company’s investments will be valued

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Level 3 investments:

Valuation Designee .

The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made.

The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment.

The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value.

The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

● Valuation Firm .

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 judgments and estimates.

Accordingly, the notes to the Company’s financial statements express the uncertainty with respect to the possible effect of such

valuations, and any change in such valuations, on the Company’s financial statements.

The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued

at the time such investment was made.

The value of each Level 3 investment will be initially reviewed by the persons responsible for

such portfolio company or investment.

The Advisor will use a standardized template designed to approximate fair market value based on

observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value.

The Advisor will specify

the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions

for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company

such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values

ascribed to portfolio investments.

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.

● Oversight .

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

judgments and estimates.

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

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

Interest Income Recognition —

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As of December

31, 2024, the Company had three debt investments on non-accrual status, which compromised 1.6 % and 1.3 %, respectively, of total debt investments

31, 2025, the Company had five debt investments on non-accrual status, which comprised 2.6 % and 1.4 %, respectively, of total debt investments

at cost and fair value.

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 status.

As of December 31, 2024, the Company had three debt investment on non-accrual status, which comprised 1.6 % and

1.3 %, respectively, of total debt investments at cost and fair value.

Debt Issuance Costs — Costs incurred

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

The Company’s wholly owned subsidiary, KABDC Corp,

LLC has elected to be a corporation and is obligated to pay federal and state income tax on its taxable income.

KABDC Corp, LLC invests

in partnerships and includes its allocable share of the taxable income or loss in computing its own taxable income.

Deferred income taxes

reflect (i) taxes on unrealized gains (losses), which are attributable to the difference between fair value and tax cost basis, (ii) the

net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the

amounts used for income tax purposes and (iii) the net tax benefit of accumulated net operating and capital losses.

To the extent KABDC Corp, LLC has a deferred tax asset, consideration

is given as to whether or not a valuation allowance is required.

The need to establish a valuation allowance for deferred tax assets is

assessed periodically based on the Income Tax Topic of the FASB Accounting Standards Codification (ASC 740), that it is more likely than

not that some portion or all of the deferred tax asset will not be realized.

In the assessment for a valuation allowance, consideration

is given to all positive and negative evidence related to the realization of the deferred tax asset.

This assessment considers, among

other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of

statutory carryforward periods and the associated risk that certain loss carryforwards may expire unused.

The Company’s wholly owned subsidiary, KABDC

Corp, LLC has elected to be a corporation and is obligated to pay federal and state income tax on its taxable income.

KABDC Corp, LLC

invests in partnerships and includes its allocable share of the taxable income or loss in computing its own taxable income.

Deferred income

taxes reflect (i) taxes on unrealized gains (losses), which are attributable to the difference between fair value and tax cost basis,

(ii) the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes

and the amounts used for income tax purposes and (iii) the net tax benefit of accumulated net operating and capital losses.

expense, if any, is included under the income category for which it relates in the Consolidated Statements of Operations.

To the extent KABDC Corp, LLC has a deferred tax

asset, consideration is given as to whether or not a valuation allowance is required.

The need to establish a valuation allowance for

deferred tax assets is assessed periodically based on the Income Tax Topic of the FASB Accounting Standards Codification (ASC 740), that

it is more likely than not that some portion or all of the deferred tax asset will not be realized.

In the assessment for a valuation

allowance, consideration is given to all positive and negative evidence related to the realization of the deferred tax asset.

This assessment

considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability,

the duration of statutory carryforward periods and the associated risk that certain loss carryforwards may expire unused.

KABDC Corp, LLC may rely to some extent on information

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or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

Recent Accounting Pronouncements — In

November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU

2023-07”), which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating

decision maker (the “CODM”).

ASU 2023-07, among other things, (i) requires a single segment public entity to provide all of

the disclosures as required by ASC 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation

of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources

and (iii) provides the ability for a public entity to elect more than one performance measure.

ASU 2023-07 is effective for the fiscal

years beginning after December 15, 2023, and interim periods beginning with the first quarter ended March 31, 2025.

Early adoption is

permitted and retrospective adoption is required for all prior periods presented.

The Company has adopted ASU 2023-07 effective December

31, 2024, and concluded that the application of this guidance did not have any material impact on its consolidated financial statements.

See Note 12 – Segment Reporting, for more information on the effects of the adoption of ASU 2023-07.

Recent Accounting Pronouncements —

In December 2023, the FASB issued Accounting Standards Update (“ASU”) No.

2023-09, Income Taxes (Topic 740):

to Income Tax Disclosures.

2023-09 requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation

and additional details on income taxes paid.

2023-09 is effective on a prospective basis, with the option for retrospective application,

for annual periods beginning after December 15, 2024 and early adoption is permitted.

The Company adopted ASU 2023-09 for the year ended

December 31, 2025 on a prospective basis and concluded that the application of this guidance did not have any material impact on its consolidated

financial statements.

See Note 10 – Income Taxes.

Derivative Instruments —

The Company follows the guidance in ASC 815 Derivatives and Hedging, when accounting for its derivative instruments.

The Company designated

certain interest rate swaps as hedging instruments, and as a result, the entire change in the fair value of the hedging instrument shall

be recorded in the same line item of the Consolidated Statements of Operations as the hedged item.

The Company’s interest rate swaps

are used to hedge the Company’s fixed rate debt, and therefore both the periodic payment and the change in fair value for the effective

hedge, if applicable, will be recognized as components of interest expense in the Consolidated Statements of Operations.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

Agreements and Related Party Transactions

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investments is contained in the accompanying consolidated financial statements, including the consolidated schedule of investments.

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 February 19,

2025, the Board approved an additional one-year term of the Administration Agreement through March 15, 2026.

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 its initial public offering, its allocable portion of office facilities, overhead, and compensation paid to or compensatory distributions

received by its officers (including our Chief Compliance Officer and Chief Financial Officer) and its respective staff who provide services

to the Company.

As the Company reimburses the Administrator for its expenses, the Company will indirectly bear such cost.

The Administration

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

Investment Advisory Agreement — on February 5,

2021, the Company entered into an Investment Advisory Agreement with its Advisor.

Pursuant to the Investment Advisory Agreement with its

Advisor, the Company will pay its Advisor a fee for investment advisory and management services consisting of two components—a base

management fee and an incentive fee.

The Advisor may, from time-to-time, grant waivers on the Company’s obligations, including waivers

of the base management fee and/or incentive fee, under the Investment Advisory Agreement.

The Investment Advisory Agreement may be terminated

by either party with 60 days’ written notice.

On February 19, 2025, the Board approved an additional one-year term of the Investment

Advisory Agreement from March 15, 2025 to March 15, 2026.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

In addition, on March 6, 2024, the Board approved

an amended and restated investment advisory agreement (the “Amended Investment Advisory Agreement”) and a fee waiver agreement

(the “Fee Waiver Agreement”) between the Company and the Advisor, which became effective upon the completion of the initial

public offering of the Company’s shares of common stock on May 24, 2024 (the “IPO Date”).

Administration Agreement — on February 5, 2021, the

Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and provides or oversees the performance

of its required administrative services and professional services rendered by others, which 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 February 12, 2026, the Board approved an

additional one-year term of the Administration Agreement through March 15, 2027.

The Company reimburses the Administrator for its

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

of office facilities, overhead, and compensation paid to or compensatory distributions received by its officers (including our Chief Compliance

Officer and Chief Financial Officer) and its respective staff who provide services to the Company.

As the Company reimburses the Administrator

for its expenses, the Company indirectly bears such cost.

The Administration Agreement may be terminated by either party with 60 days’

written notice.

Investment Advisory Agreement —

on February 5, 2021, the Company entered into an Investment Advisory Agreement with its Advisor.

Pursuant to the Investment Advisory Agreement

with its Advisor, the Company pays its Advisor a fee for investment advisory and management services consisting of two components—a

base management fee and an incentive fee.

The Advisor may, from time-to-time, grant waivers on the Company’s obligations, including

waivers of the base management fee and/or incentive fee, under the Investment Advisory Agreement.

The Investment Advisory Agreement may

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

On March 6, 2024, the Board approved an amended

and restated investment advisory agreement (the “Amended Investment Advisory Agreement”) and a fee waiver agreement (the “Fee

Waiver Agreement”) between the Company and the Advisor, which became effective upon the completion of the initial public offering

of the Company’s shares of common stock on May 24, 2024 (the “IPO Date”).

The Amended Investment Advisory Agreement is materially

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are not subject to recoupment by the Advisor.

On February 12, 2026, the Board approved an additional one-year term

of the Investment Advisory Agreement through March 15, 2027.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

Base Management Fee

Pre-IPO Base Management Fee

Prior to the IPO Date, the base management fee

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and commercial paper instruments maturing within one year of purchase.

Post-IPO Base Management Fee

Commencing on the IPO Date, the base management

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incurred base management fees of $ 19,668 net of waiver of $ 2,071 .

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

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

For the year ended December 31, 2024, the Company incurred base management

fees of $ 14,587 , net of waiver of $ 2,900 .

For the year ended December 31, 2023, the Company incurred base management fees of $ 11,433 .

Incentive Fee

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an income incentive fee.

Prior to the IPO Date, 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.

Pre-incentive fee net investment income excludes any realized capital gains, realized capital losses or

unrealized capital appreciation or depreciation.

Pre-IPO Incentive Fee on Income

Prior to the IPO Date, 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.

Pre-incentive fee net investment income

excludes any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

Post-IPO Incentive Fee on Income

Commencing on the IPO Date, the Company pays the

Advisor an income incentive fee based on its aggregate pre-incentive fee net investment income with respect to (i) the quarter

ended June 30, 2024 (the “First Calendar Quarter”) and (ii) each subsequent calendar quarter, with the then-current calendar

quarter and the eleven preceding calendar quarters beginning with the quarter ended September 30, 2024 (or the appropriate portion thereof

in the case of any of the Company’s first eleven calendar quarters that commence after the First Calendar Quarter) (those calendar

quarters after the First Calendar Quarter, the “Trailing Twelve Quarters”).

Kayne Anderson BDC, Inc.

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

Commencing on the IPO Date, the Company will pay

the Advisor an income incentive fee based on its aggregate pre-incentive fee net investment income with respect to (i) the quarter

ended June 30, 2024 (the “First Calendar Quarter”) and (ii) each subsequent calendar quarter, with the then-current calendar

quarter and the eleven preceding calendar quarters beginning with the calendar quarter after the First Calendar Quarter (or the appropriate

portion thereof in the case of any of the Company’s first eleven calendar quarters that commence after the First Calendar Quarter)

(those calendar quarters after the First Calendar Quarter, the “Trailing Twelve Quarters”).

For the First Calendar Quarter, pre-incentive fee

net investment income in respect of the First Calendar Quarter will be compared to a hurdle rate of 1.50 % ( 6.00 % annualized).

incentive fee for the First Calendar Quarter will be determined as follows:

no income incentive fee is payable to the Advisor if the aggregate pre-incentive fee net investment income for the First Calendar Quarter does not exceed that hurdle rate;

● 100 % of the aggregate pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds that hurdle rate, but is less than a quarterly rate of 1.6667 % for the portion of the First Calendar Quarter before the initial public offering and a quarterly rate of 1.7647 % for the portion of the First Calendar Quarter after the initial public offering, referred to the “catch-up.” The “catch-up” is meant to provide the Advisor with 10.0 % of the Company’s pre-incentive fee net investment income for the portion of the First Calendar Quarter before the initial public offering and 15.0 % for the balance of that First Calendar Quarter, as if the hurdle rate did not apply;

● 10.0 % of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.6667 % for the portion of the First Calendar Quarter before the initial public offering and 15.0 % of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.7647 % for the balance of the First Calendar Quarter.

Commencing with the calendar quarter beginning

immediately after the First Calendar Quarter, subject to the Incentive Fee Cap (described below), the pre-incentive fee net investment

income in respect of the relevant Trailing Twelve Quarters will be compared to a “Hurdle Rate” equal to the product of (i) the

hurdle rate of 1.50 % per quarter ( 6.00 % annualized) and (ii) the sum of our net assets at the beginning of each applicable calendar

quarter comprising the relevant Trailing Twelve Quarters.

The Hurdle Rate will be calculated after making appropriate adjustments to the

Company’s net asset value at the beginning of each applicable calendar quarter for all issuances by the Company of shares of its

common stock, including issuances pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter.

The income incentive fee for each calendar quarter will be determined as follows:

no income incentive fee is payable to the Advisor in any calendar quarter in which aggregate pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarters does not exceed the Hurdle Rate;

● 100 % of the aggregate pre-incentive fee net investment income in respect of the Trailing Twelve Quarters with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the Hurdle Rate, but is less than or equal to an amount, which we refer to as the “Catch-up Amount,” determined on a quarterly basis by multiplying 1.7647 % by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters (after making appropriate adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for all issuances by the Company of shares of its common stock, including issuances pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter);

For the First Calendar Quarter, pre-incentive fee net investment

income in respect of the First Calendar Quarter was compared to a hurdle rate of 1.50 % ( 6.00 % annualized).

The income incentive fee for

the First Calendar Quarter was determined as follows:

income incentive fee is payable to the Advisor if the aggregate pre-incentive fee net investment income for the First Calendar Quarter

does not exceed that hurdle rate;

of the aggregate pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment

income, if any, that exceeds that hurdle rate, but is less than a quarterly rate of 1.6667 % for the portion of the First Calendar Quarter

before the initial public offering and a quarterly rate of 1.7647 % for the portion of the First Calendar Quarter after the initial public

offering, referred to the “catch-up.” The “catch-up” is meant to provide the Advisor with 10.0 % of the Company’s

pre-incentive fee net investment income for the portion of the First Calendar Quarter before the initial public offering and 15.0 %

for the balance of that First Calendar Quarter, as if the hurdle rate did not apply;

of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.6667 % for the portion of the

First Calendar Quarter before the initial public offering and 15.0 % of the aggregate pre-incentive fee net investment income, if

any, that exceeds a quarterly rate of 1.7647 % for the balance of the First Calendar Quarter.

Commencing with the quarter ended September 30,

2024, subject to the Incentive Fee Cap (described below), the pre-incentive fee net investment income in respect of the relevant

Trailing Twelve Quarters is compared to a “Hurdle Rate” equal to the product of (i) the hurdle rate of 1.50 % per quarter

( 6.00 % annualized) and (ii) the sum of our net assets at the beginning of each applicable calendar quarter comprising the relevant

Trailing Twelve Quarters.

The Hurdle Rate is calculated after making appropriate adjustments to the Company’s net asset value at

the beginning of each applicable calendar quarter for all issuances by the Company of shares of its common stock, including issuances

pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter.

The income incentive fee for each

calendar quarter is determined as follows:

income incentive fee is payable to the Advisor in any calendar quarter in which aggregate pre-incentive fee net investment income

in respect of the relevant Trailing Twelve Quarters does not exceed the Hurdle Rate;

of the aggregate pre-incentive fee net investment income in respect of the Trailing Twelve Quarters with respect to that portion

of such pre-incentive fee net investment income, if any, that exceeds the Hurdle Rate, but is less than or equal to an amount, which

we refer to as the “Catch-up Amount,” determined on a quarterly basis by multiplying 1.7647 % by the Company’s

net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters (after making appropriate

adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for all issuances by the Company

of shares of its common stock, including issuances pursuant to its dividend reinvestment plan, and distributions during the applicable

calendar quarter);

of the aggregate pre-incentive fee net investment income in respect of the Trailing Twelve Quarters that exceeds the Catch-up Amount.

2 unchanged sentences

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

Commencing with the quarter that begins immediately

after the First Calendar Quarter, each income incentive fee will be subject to an “Incentive Fee Cap” that in respect of any

calendar quarter is an amount equal to 15.0 % of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the Trailing

Twelve Quarters less the aggregate income incentive fees that were paid to the Advisor in the preceding eleven calendar quarters (or portion

thereof) comprising the relevant Trailing Twelve Quarters.

In the event the Incentive Fee Cap is zero or a negative value then no income

incentive fee shall be payable and if the Incentive Fee Cap is less than the amount of income incentive fee that would otherwise be payable,

the amount of income incentive fee shall be reduced to an amount equal to the Incentive Fee Cap.

Commencing with the quarter ended September 30,

2024, each income incentive fee is subject to an “Incentive Fee Cap” that in respect of any calendar quarter is an amount

equal to 15.0 % of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the Trailing Twelve Quarters less the aggregate

income incentive fees that were paid to the Advisor in the preceding eleven calendar quarters (or portion thereof) comprising the relevant

Trailing Twelve Quarters.

In the event the Incentive Fee Cap is zero or a negative value then no income incentive fee shall be payable

and if the Incentive Fee Cap is less than the amount of income incentive fee that would otherwise be payable, the amount of income incentive

fee shall be reduced to an amount equal to the Incentive Fee Cap.

“Cumulative Pre-Incentive Fee Net Return”

20 unchanged sentences

Incentive Fee on Capital Gains

Pre-IPO Incentive Fee on Capital Gains

Prior to the IPO Date, the incentive fee on capital

6 unchanged sentences

fee, the calculation methodology looked through derivative financial instruments or swaps as if the Company owned the reference assets

Post-IPO Incentive Fee on Capital Gains

Commencing on the IPO Date, the incentive fee

6 unchanged sentences

For the year ended December 31, 2025, the Company

incurred incentive fees on income of $ 17,296 , and no incentive fees on capital gains.

For the year ended December 31, 2024, the Company

incurred incentive fees on income of $ 2,631 , net of waivers of $ 14,818 , and no incentive fees on capital gains.

For the years ended December

31, 2023 and 2022, the Company incurred incentive fees on income of $ 9,433 and $ 4,698 , respectively, and no incentive fees on capital

gains in either of these years.

Kayne Anderson BDC, Inc.

For the year ended December

31, 2023, the Company incurred incentive fees on income of $ 9,433 and no incentive fees on capital gains.

Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

Payment of Incentive Fees Prior to the IPO

Prior to the Company’s IPO, incentive fees

earned by the Advisor accrued as earned but only became payable in cash to the Advisor upon consummation the IPO.

In June 2024, the Company

paid $ 16,826 to the Advisor for these accrued as earned fees through the quarter ended March 31, 2024.

The following table presents the composition of

the Company’s investment portfolio at amortized cost and fair value as of December 31, 2024 and 2023:

following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of December 31,

2025 and 2024:

December 31, 2025

2 unchanged sentences

Equity investments

Short-term investments

Investments in money market funds

Total Investments

(1) Includes debt investment in Trademark

(2) Includes equity investment in

TG Parent Newco LLC (Trademark Global LLC).

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

As of December 31, 2024 and 2023, $ 188,253 and $ 68,578 , 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

as of December 31, 2024 and 2023 was as follows:

Trading companies & distributors

As of December 31, 2025 and 2024, $ 49,949 and

$ 188,253 , respectively, of the Company’s total assets were non-qualifying assets, as defined by Section 55(a) of the 1940 Act.

Company uses Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its

portfolio companies.

industry composition of long-term investments based on fair value as of December 31, 2025 and 2024 was as follows:

Commercial services & supplies

Food products

Health care providers & services

Food products

Containers & packaging

Professional services

Financial services (1)

Aerospace & defense

Personal care products

Automobile components

Leisure products

Building products

Household products

Textiles, apparel & luxury goods

Automobile components

Building products

Wireless telecommunication services

Personal care products

Health care equipment & supplies

Household durables

Diversified consumer services

Specialty retail

Biotechnology

Pharmaceuticals

Diversified telecommunication services

Wireless telecommunication services

Health care equipment & supplies

Hotels, restaurants & leisure

Household durables

Household products

Diversified consumer services

Construction materials

Biotechnology

Semiconductors & semiconductor equipment

Electrical equipment

Diversified consumer services

Capital markets

Kayne Anderson BDC, Inc.

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

that the Company obtains from independent, third-party sources.

Unobservable inputs are developed by the Company based on its own assumptions

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 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

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.

the Company’s debt and equity investment in SGCP Partners, Inc .

(SG Credit), through investments in SGCP Intermediate, Inc.

and SGCP Holdings, LLC, an asset based lending platform company, where the Company has a minority investment.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

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 that the Company obtains from independent, third-party sources.

inputs are developed by the Company based on its own assumptions of how market participants would value an asset or a liability.

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

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.

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.

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

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.

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.

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, 2024 and December 31, 2023.

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

the risk or liquidity associated with the underlying investment.

following tables present the fair value hierarchy of investments as of December 31, 2025 and December 31, 2024.

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, 2025

1 unchanged sentence

Equity investments

Short-term investments

Investments in money market funds

Total Investments

(1) Includes debt investment in Trademark

(2) Includes equity investment in

TG Parent Newco LLC (Trademark Global LLC).

Fair Value Hierarchy as of December 31, 2023

First-lien senior secured debt investments

Interest rate swaps

Value Hierarchy as of December 31, 2024

First-lien senior

secured debt investments

Equity investments

Short-term investments

Total Investments

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 the years ended December 31, 2024 and 2023.

For the year ended December 31, 2024

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 the years ended December 31, 2025 and 2024.

senior secured

For the year ended December 31, 2025

debt investments

investments (2)

Fair value, beginning of period

Purchases of investments, including PIK, if any

Purchases of investments

Proceeds from sales of investments and principal repayments

2 unchanged sentences

Net accretion of discount on investments

PIK interest and dividends

Transfers into (out of) Level 3

Fair value, end of period

(1) Includes debt investment in Trademark

(2) Includes equity investment in

TG Parent Newco LLC (Trademark Global LLC).

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

For the year ended December 31, 2024

2 unchanged sentences

Fair value, beginning of period

Purchases of investments, including PIK, if any

Purchases of investments

Proceeds from sales of investments and principal repayments

2 unchanged sentences

Net accretion of discount on investments

PIK interest and dividends

Transfers into (out of) Level 3

Fair value, end of period

(1) Reflects non-cash conversions.

These transactions represent non-cash investing activities.

For the years ended December 31, 2024 and 2023,

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 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 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,

such as S&P Global’s High-End Middle Market Lending Review;

Thomson Reuter’s Refinitiv Middle Market Monthly

Anderson BDC, Inc.

to Consolidated Financial Statements

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

the years ended December 31, 2025 and 2024, 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).

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 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.

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, such as S&P Global’s High-End Middle Market Lending

Thomson Reuter’s Refinitiv Middle Market Monthly Stats;

Pitchbook News;

The Lead Left, and other data sources;

(ii) comparable investments reviewed or completed by affiliates

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 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 historical and projected financial results;

(ii) comparable investments reviewed or completed by affiliates of the Advisor, and (iii) information obtained and provided

by the Advisor’s independent valuation managers.

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:

(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.

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

call features, put features and other relevant terms of the debt security;

the company’s historical and projected financial

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 be

changes in the interest rate environment and the credit markets generally that

may affect the price at which similar investments may be valued;

and other relevant factors.

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).

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, 2024 and December 31, 2023.

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.

First-lien senior secured debt investments include the

Company’s senior secured loan in an investment vehicle (BC CS 2, L.P.), which is considered subordinated debt since it is collateralized

by a preferred stock investment in Cuisine Solutions, Inc.

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

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

Anderson BDC, Inc.

to Consolidated Financial Statements

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

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.

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).

Table for Valuation Techniques

following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments

as of December 31, 2025 and December 31, 2024.

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 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.

First-lien senior secured debt investments include the Company’s senior secured loan in an investment vehicle (BC CS 2, L.P.),

which is considered subordinated debt since it is collateralized by a preferred stock investment in Cuisine Solutions, Inc.

As of December 31, 2025

Valuation Unobservable Weighted

Fair Value Technique Input Range Average

First-lien senior secured debt investments $ 2,110,721 Discounted cash flow analysis Discount rate 6.4 % - 15.0 % 9.5 %

Preferred equity investment 15,767 Discounted cash flow analysis Discount rate 15.0 % 15.0 %

Common equity investments 14,000 Precedent Transaction Analysis Original cost 1.0 1.0

Other equity investments 11,255 Comparable Multiples EV / EBITDA 6.3 - 17.2 10.6

As of December 31, 2024

Fair Value Valuation

6 unchanged sentences

Other equity investments 9,373 Comparable Multiples EV / EBITDA 7.6 - 17.2 11.3

As of December 31, 2023

Valuation Unobservable Weighted

Fair Value Technique Input Range Average

First-lien senior secured debt investments $ 1,346,174 Discounted cash flow analysis Discount rate 8.3 % – 15.0 % 10.2 %

Preferred equity investment 9,287 Discounted cash flow analysis Discount rate 15.0 % 15.0 %

Other equity investments 8,037 Comparable Multiples EV / EBITDA 7.1 – 17.2 11.5

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Corporate Credit Facility

As of December 31, 2024, the Company had a senior

secured revolving credit facility (the “Corporate Credit Facility”), that has a total commitment of $ 475,000 , $ 400,000 of

which has a maturity date of November 22, 2029 and the remaining $ 75,000 of which has a maturity date of February 18, 2027 , following

the Company’s amendment of the Corporate Credit Facility on November 22, 2024.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

Credit Facility

of December 31, 2025, the Company had a senior secured revolving credit facility (the “Corporate Credit Facility”), that

has a total commitment of $ 475,000 which has a maturity date of November 22, 2029 .

The Corporate Credit Facility also provides for a

1 unchanged sentence

of $ 600,000 .

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 2.10 % per annum or an “alternate base rate” (as defined in the agreements governing the Corporate

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 2.10 % per annum or an “alternate base rate” (as defined in the agreements governing the Corporate

Credit Facility) plus an applicable spread of 1.00 %.

The Company is also required to pay a commitment fee of 0.375 % per annum on any unused

portion of 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.

The Corporate Credit Facility is secured by certain

assets in the Company’s portfolio and excludes investments held by Kayne Anderson BDC Financing LLC (“KABDCF”) under

the Revolving Funding Facility and by Kayne Anderson BDC Financing II, LLC (“KABDCF II”) under the Revolving Funding Facility

II (each as defined below).

For the years ended December 31, 2024 and 2023, the average amount

of borrowings outstanding under the Corporate Credit Facility was $ 173,911 and $ 251,655 , respectively, with a weighted average interest

rate of 7.42 % and 7.35 %, respectively, for the Corporate Facility portion.

As of December 31, 2024, the Company had $ 250,000 outstanding

under the Corporate Credit Facility at a weighted average interest rate of 6.49 %.

See Note 13 – Subsequent Events.

Revolving Funding Facility

As of December 31, 2024, the Company had a senior

secured revolving funding facility (the “Revolving Funding Facility”), that has a total commitment of $ 600,000 .

2024, the Company and its wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing, LLC (“KABDCF”),

amended the Revolving Funding Facility.

Under the terms of the third amendment, the Company and KABDCF increased the commitment amount

from $ 455,000 to $ 600,000 .

The end of the reinvestment period was extended to April 2, 2027, and the maturity date was extended to April

The interest rate on the Revolving Funding Facility was reduced from daily SOFR plus 2.75 % per annum to SOFR plus 2.375 % - 2.50 %

per annum depending on the mix of loans securing the Revolving Funding Facility.

All other terms of the Revolving Funding Facility remained

substantially the same.

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.

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, 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.

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.

The Company is also required to pay a commitment fee of 0.375 % per annum on any

unused portion of the Corporate Credit Facility.

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.

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 assets in the Company’s portfolio and excludes investments held

by Kayne Anderson BDC Financing LLC (“KABDCF”) under the Revolving Funding Facility and by Kayne Anderson BDC Financing II,

LLC (“KABDCF II”) under the Revolving Funding Facility II (each as defined below).

For the years ended December 31, 2025 and 2024,

the average amount of borrowings outstanding under the Corporate Credit Facility was $ 234,921 and $ 173,911 , respectively, with a

weighted average interest rate of 6.35 % and 7.42 %, respectively, for the Corporate Facility portion.

As of December 31, 2025, the Company

had $ 135,000 outstanding under the Corporate Credit Facility at a weighted average interest rate of 5.87 %.

Funding Facility

As of December 31, 2025, the Company and KABDCF,

a wholly-owned, special purpose financing subsidiary, had a senior secured revolving funding facility (the “Revolving Funding Facility”),

that has a total commitment of $ 675,000 .

The end of the reinvestment period is February 13, 2028 , and the maturity date is February 13,

The interest rate on the Revolving Funding Facility is SOFR plus 2.15 % per annum.

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.

See Note 13 – Subsequent Events.

Kayne Anderson BDC, Inc.

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

Anderson BDC, Inc.

Notes to Consolidated Financial Statements

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

For the years ended December 31, 2024 and 2023,

For the years ended December 31, 2025 and 2024, the average amount of

borrowings outstanding under the Revolving Funding Facility was $ 531,522 and $ 371,041 , respectively, with a weighted average interest

rate of 6.44 % and 7.67 %, respectively.

As of December 31, 2025, the Company had $ 525,000 outstanding under the Revolving Funding Facility

at a weighted average interest rate of 5.81 %.

See Note 13 – Subsequent Events.

Funding Facility II

As of December 31, 2025, the Company and KABDCF II, a wholly-owned,

special purpose financing subsidiary, had a senior secured revolving credit facility (the “Revolving Funding Facility II”).

The Revolving Funding Facility II has an initial commitment of $ 250,000 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 is December 22, 2027, and the maturity date

is December 22, 2029.

The interest rate on the Revolving Funding Facility II is 3-month term SOFR plus 2.25 %.

KABDCF II is also required

to pay a commitment fee of 0.55 % on the unused portion of the Revolving Funding Facility II.

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

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 year ended December 31, 2025 and 2024,

the average amount of borrowings outstanding under the Revolving Funding Facility was $ 170,178 and $ 82,432 , respectively, with a weighted

1 unchanged sentence

As of December 31, 2025, the Company had $ 195,000 outstanding under the Revolving

Funding Facility at a weighted average interest rate of 6.72 %.

Revolving Funding Facility II

As of December 31, 2024, the Company and Kayne Anderson BDC Financing

II, LLC (“KABDCF II”), a wholly-owned, special purpose financing subsidiary, had a 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 year ended December 31, 2024, the average amount of borrowings

outstanding under the Revolving Funding Facility was $ 82,432 , with a weighted average interest rate of 7.84 %.

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, 2024, the Company had $ 113,000 outstanding under the

Revolving Funding Facility II at a weighted average interest rate of 7.29 %.

See Note 13 – Subsequent Events.

Subscription Credit Agreement

On April 1, 2024, the Company fully repaid all

amounts outstanding and terminated the remaining commitment of $ 50,000 under its credit agreement (the “Subscription Credit Agreement”)

that was scheduled to mature on December 31, 2024.

The Subscription Credit Agreement permitted the Company to elect the commitment amount

each quarter to borrow up to $ 50,000 , subject to availability under the borrowing base which was calculated based on the unused capital

commitments of the investors meeting various eligibility requirements.

The interest rate under the Subscription Credit Agreement was equal

to the Secured Overnight Financing Rate (“SOFR”) plus 2.25 % (subject to a 0.275 % SOFR floor).

The Company was also required

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

The Company also paid an extension

fee of 0.075 % per quarter on the elected commitment amount on the first day of each calendar quarter.

For the years ended December 31, 2024 and 2023, the average amount

of borrowings outstanding under the Subscription Credit Agreement were $ 3,306 and $ 41,782 , respectively, with a weighted average interest

rate of 7.61 % and 7.03 %, respectively.

Senior Unsecured Notes

As of December 31, 2024, the Company had $ 75,000

aggregate principal amount of senior unsecured notes (the “Notes”).

Kayne Anderson BDC, Inc.

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, 2024.

Series Principal

Funding Facility II at a weighted average interest rate of 6.23 %.

Unsecured Notes

of December 31, 2025, the Company had $ 275,000 aggregate principal amount of senior unsecured notes (the “Notes”).

15, 2025, the Company completed a private placement offering of $ 200,000 of senior unsecured notes (the “Series C, D and E Notes”).

The private placement consisted of $ 40,000 of floating rate Series C Notes with an interest rate of SOFR plus 2.32 % per annum due June

$ 60,000 of 5.80 % Series D Notes due June 2028 and $ 100,000 of 6.15 % Series E Notes due October 2030.

Net proceeds from the offering

were used to refinance existing debt and for general corporate purposes.

connection with the Series D and Series E Notes, the Company entered into interest rate swaps to more closely align the interest rates

of the Company’s liabilities with the Company’s investment portfolio, which consists of predominantly floating rate loans.

Under the interest rate swap agreement related to the Series D Notes, the Company receives a fixed interest rate of 5.80 % per annum and

pays a floating interest rate of SOFR plus 2.37 % per annum on the $ 60,000 of the Series D Notes.

Under the interest rate swap agreement

related to the Series E Notes, the Company receives a fixed interest rate of 6.15 % per annum and pays a floating interest rate of SOFR

plus 2.6565 % per annum on the $ 100,000 of the Series E Notes.

The Company designated each interest rate swap as the hedging instrument

in a qualifying hedge accounting relationship.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

table below sets forth a summary of the key terms of each series of Notes outstanding at December 31, 2025.

Principal Estimated

Outstanding Fair Value Fixed/Floating

Series December 31,

2025 Unamortized

Costs Estimated

Issuance Costs December 31,

2025 Interest

Rate Maturity

1 unchanged sentence

B 50,000 319 53,756 8.74 % 6/30/2028

C 40,000 322 41,024 SOFR

+ 2.32 % 6/30/2028

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, 2024, the weighted average interest

rate on the outstanding Notes was 8.71 %.

D 60,000 484 61,894 5.80 % (1) 6/30/2028

E 100,000 1,317 103,488 6.15 % (2) 10/15/2030

$ 275,000 $ 2,560 $ 286,358

(1) The effective interest rate including the effects of the interest

rate swap is SOFR + 2.37 %.

(2) The effective interest rate including the effects of the interest

rate swap is SOFR + 2.6565 %.

Holders of the fixed rate Series A, B, D and E

Notes are entitled to receive cash interest payments semi-annually (on January 30 and July 30) at the fixed rate.

Holders of the floating

rate Series C Notes are entitled to receive cash interest payments quarterly (on January 30, April 30, July 30 and October 30) at the

floating rate.

As of December 31, 2025, the weighted average interest rate on the outstanding Notes was 6.77 %.

As of December 31, 2025, the Notes were rated

10 unchanged sentences

at the same time the aggregate increase in interest rate per annum will not exceed 2.0 %.

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

Notes were issued in private placement offerings to institutional investors and are not listed on any exchange or automated quotation

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.

The 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.

Notes are unsecured obligations of the Company and, upon liquidation, dissolution or winding up of the Company, will rank:

to all of the Company’s outstanding common shares;

(2) on parity with any unsecured creditors of the Company and any unsecured

senior securities representing indebtedness of the Company;

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

At December 31, 2024, the Company was in compliance

with all covenants under the Notes agreements.

Debt obligations consisted of the following as

of December 31, 2024 and 2023.

December 31, 2025, the Company was in compliance with all covenants under the Notes agreements.

As a result of the Company’s designation of the interest rate

swaps as hedging instruments in qualifying fair value hedge accounting relationships, the Company is required to fair value the hedging

instruments and the related hedged items, with the changes in the fair value of each being recorded in interest expense.

The net losses

related to the fair value hedges were approximately zero for the year ended December 31,2025, which is included in “Interest expense”

in the Company’s consolidated statement of operations.

The balance sheet impact of fair valuing the interest rate swaps as of December

31, 2025, is presented below.

There was no interest rate swap activity for the years ended December 31, 2024 and 2023.

As of December 31, 2025

Description Notional Amount Maturity Date Gross

Liabilities Balance Sheet Location

Interest rate swap 60,000 6/30/2028 $ -

$ ( 24 ) Accrued expenses and other liabilities

Interest rate swap 100,000 10/15/2030 -

( 275 ) Accrued expenses and other liabilities

Anderson BDC, Inc.

to Consolidated Financial Statements

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

obligations consisted of the following as of December 31, 2025 and 2024.

December 31, 2025

Principal Committed

Available (1)

Aggregate Principal Committed

Outstanding Principal

Amount Available (1)

Net Carrying Value (2)

Corporate Credit Facility

1 unchanged sentence

Revolving Funding Facility II

(1) The amounts available under the Company’s credit facilities do

not reflect any limitations related to each borrowing base as of December 31, 2024.

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

do not reflect any limitations related to each borrowing base as of December 31, 2025.

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

Revolving Funding Facility and Revolving Funding Facility II are presented net of deferred financing costs totaling $ 12,703 .

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

December 31, 2023

Outstanding Principal

Amount Available (1)

Net Carrying Value (2)

(3) Net carrying value is inclusive of change in fair market value

of effective hedges.

Principal Committed

Available (1)

Corporate Credit Facility

Revolving Funding Facility

Revolving Funding Facility II

Subscription Credit Agreement

(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 $ 6,431 .

For the years ended December 31, 2024, 2023 and 2022, the components

of interest expense were as follows:

For the years ended

Revolving Funding Facility

(1) The amounts available under the Company’s credit facilities do not reflect any limitations related to each borrowing base as of December 31, 2024.

(2) The carrying value of the Notes, Corporate Credit Facility, Revolving Funding Facility and Revolving Funding Facility II are presented net of deferred financing costs totaling $ 9,875 .

the years ended December 31, 2025, 2024 and 2023, the components of interest expense were as follows:

For the years ended December 31,

Interest expense

3 unchanged sentences

Average borrowings

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Share Transactions

Common Stock Issuances

Anderson BDC, Inc.

to Consolidated Financial Statements

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

Common Stock and Share Transactions

As of December 31, 2025, the Company had 100,000,000

shares of common stock authorized and 67,998,184 shares outstanding.

As of December 31, 2025, KAPC Investment Holdings, L.P., a controlled

affiliate of Kayne Anderson, owned 957,217 shares of the Company.

These shares were purchased on May 22, 2024 in conjunction with the

Company’s IPO.

Stock Issuances

The following tables summarize the number of common

1 unchanged sentence

subscription agreements with investors for the years ended December 31, 2024 and 2023.

See Note 13 – Subsequent Events.

On May 24, 2024, the Company completed its IPO

issuing 6,000,000 shares of its common stock at a public offering price of $ 16.63 per share.

Net of underwriting fees and offering

expenses, the Company received net cash proceeds of $ 92,363 .

The Company’s common stock began trading on the NYSE under the ticker

symbol “KBDC” on May 22, 2024.

and began trading on the NYSE under the ticker symbol “KBDC.”

For the year ended December 31, 2024

7 unchanged sentences

For the year ended December 31, 2023

Common stock issue date

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

July 22, 2022

October 31, 2022

December 9, 2022

Total common stock issued

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Share Repurchase Plan

On May 21, 2024, the Company entered into a share

repurchase plan, or the Company 10b5-1 Plan, to acquire up to $ 100,000 in the aggregate of the Company’s Common Stock at prices

below the Company’s net asset value per share over a specified period, in accordance with the guidelines specified in Rule 10b5-1

and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

The Company 10b5-1 Plan was approved by the Board of Directors on

March 6, 2024.

The Company 10b5-1 Plan requires Morgan Stanley Corporation as the Company’s agent, to repurchase Common Stock on

its behalf when the market price per share is below the most recently reported net asset value per share (including any updates, corrections

or adjustments publicly announced by the Company to any previously announced net asset value per share, including any distributions declared).

Under the Company 10b5-1 Plan, the volume of purchases would be expected to increase as the price of the Company’s Common Stock

declines, subject to volume restrictions.

The timing and amount of any share repurchases will depend on the terms and conditions of the

Company 10b5-1 Plan, the market price of the Company’s Common Stock and trading volumes, and no assurance can be given that Common

Stock be repurchased in any particular amount or at all.

The repurchase of shares pursuant to the Company 10b5-1 Plan is intended to satisfy

the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act, and will otherwise be subject to applicable law, including Regulation

M, which may prohibit repurchases under certain circumstances.

The Company 10b5-1 Plan commenced beginning 60 calendar days following

the end of the “restricted period” under Regulation M and will terminate upon the earliest to occur of (i) the close of business

on May 24, 2025, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased under the Company 10b5-1

Plan equals $ 100,000 and (iii) the occurrence of certain other events described in the Company 10b5-1 Plan.

The “restricted period” under Regulation

M ended upon the closing of the Company’s IPO and, therefore, the Common Stock repurchases/purchases described above began on July

For the year ended December 31, 2024, the agent

has repurchased shares of common stock pursuant to the Plan as follows:

Total number of shares

have been purchased

common stock issued

Anderson BDC, Inc.

to Consolidated Financial Statements

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

Repurchase Plan

May 21, 2024, the Company entered into a share repurchase plan, or the Company 10b5-1 Plan, to acquire up to $ 100,000 in the aggregate

of the Company’s Common Stock at prices below the Company’s net asset value per share over a specified period, in accordance

with the guidelines specified in Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

The Company 10b5-1 Plan

was approved by the Board of Directors on March 6, 2024.

The Company 10b5-1 Plan requires Morgan Stanley Corporation as the Company’s

agent, to repurchase Common Stock on its behalf when the market price per share is below the most recently reported net asset value per

share (including any updates, corrections or adjustments publicly announced by the Company to any previously announced net asset value

per share, including any distributions declared).

Under the Company 10b5-1 Plan, the volume of purchases would be expected to increase

as the price of the Company’s Common Stock declines, subject to volume restrictions.

The timing and amount of any share repurchases

will depend on the terms and conditions of the Company 10b5-1 Plan, the market price of the Company’s Common Stock and trading

volumes, and no assurance can be given that Common Stock be repurchased in any particular amount or at all.

The repurchase of shares

pursuant to the Company 10b5-1 Plan is intended to satisfy the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act, and

will otherwise be subject to applicable law, including Regulation M, which may prohibit repurchases under certain circumstances.

Company 10b5-1 Plan commenced on July 23, 2024.

On May 1, 2025, the Board of Directors

of the Company authorized an amendment to the Company 10b5-1 Plan to extend the expiration to May 24, 2026.

Under the amended and restated

plan (effective May 25, 2025), the Company may repurchase up to $ 100,000 of the outstanding common stock in the open market at a price

per share that meets certain thresholds below its net asset value per share.

The Company 10b5-1 Plan will terminate upon the earliest

to occur of (i) the close of business on May 24, 2026, (ii) the end of the trading day on which the aggregate purchase price for all

shares purchased under the Company 10b5-1 Plan equals $ 100,000 and (iii) the occurrence of certain other events described in the Company

the year ended December 31, 2025, the agent has repurchased shares of common stock pursuant to the Plan as follows:

Average price

paid per share

Approximate dollar

value of shares that have

been purchased

under the plan

Approximate dollar

value of shares that may

yet be purchased

under the plan

March 1 - 31, 2025

April 1 - 30, 2025

May 1 - 24, 2025

May 25 - 31, 2025

June 1 - 30, 2025

July 1 - 31, 2025

3 unchanged sentences

November 1 - 30, 2025

December 1 - 31, 2025

Total stock repurchased

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

Dividends and Dividend Reinvestment

The following tables summarize the dividends declared and payable by

the Company for the years ended December 31, 2024, 2023 and 2022.

For the year ended December 31, 2024, the $ 0.10 per share dividend with

a payment date of December 20, 2024 was one of three special dividends declared by the Board of Directors in conjunction with the Company’s

IPO in May 2024.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

and Dividend Reinvestment

The following tables summarize the dividends declared

and payable by the Company for the years ended December 31, 2025, 2024 and 2023 .

For the year ended December 31, 2025, both of the $ 0.10

per share dividend with payment dates of March 18, 2025 and June 24, 2025 were the final two of three special dividends declared by the

Board of Directors in conjunction with the Company’s IPO in May 2024.

For the year ended December 31, 2024, the $ 0.10 per share

dividend with a payment date of December 20, 2024 was the first of three special dividends declared by the Board of Directors in conjunction

with the Company’s IPO in May 2024.

See Note 13 – Subsequent Events.

1 unchanged sentence

Dividend declaration date Dividend record date Dividend payment date Dividend

May 8, 2024 March 3, 2025 March 18, 2025 $ 0.10

March 3, 2025 March 31, 2025 April 15, 2025 0.40

May 8, 2024 June 9, 2025 June 24, 2025 0.10

May 1, 2025 June 30, 2025 July 16, 2025 0.40

August 5, 2025 September 30, 2025 October 16, 2025 0.40

May 8, 2024 December 5, 2024 December 20, 2024 0.10

November 4, 2025 December 31, 2025 January 16, 2026 0.40

1 unchanged sentence

For the year ended December 31, 2024

Dividend declaration date Dividend record date Dividend payment date per share

Dividend declaration date Dividend record date Dividend payment date Dividend

March 6, 2024 March 29, 2024 April 17, 2024 $ 0.40

1 unchanged sentence

August 7, 2024 September 30, 2024 October 15, 2024 0.40

May 8, 2024 December 5, 2024 December 20, 2024 0.10

November 6, 2024 December 31, 2024 January 15, 2025 0.40

2 unchanged sentences

Dividend declaration date Dividend record date Dividend payment date per share

April 19, 2022 April 20, 2022 April 26, 2022 $ 0.26

July 19, 2022 July 20, 2022 July 27, 2022 0.30

October 18, 2022 October 13, 2022 October 25, 2022 0.35

December 16, 2022 December 29, 2022 January 13, 2023 0.43

March 7, 2023 March 31, 2023 April 14, 2023 $ 0.47

May 10, 2023 June 30, 2023 July 14, 2023 0.53

August 10, 2023 September 29, 2023 October 13, 2023 0.53

November 9, 2023 December 29, 2023 January 16, 2024 0.53

Total dividends declared

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, 2024, 2023 and 2022.

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, 2025, 2024 and 2023.

See Note 13 - Subsequent Events.

For the year ended December 31, 2025

Dividend record date Dividend payment date issued value

Dividend record date Dividend payment date DRIP

December 31, 2024 January 15, 2025 205,626 $ 3,434

March 3, 2025 March 18, 2025 35,346 593

March 31, 2025 April 15, 2025 -

June 9, 2025 June 24, 2025 -

June 30, 2025 July 16, 2025 -

September 30, 2025 October 16, 2025 -

December 5, 2024 December 20, 2024 37,843 632

240,972 $ 4,027

For the dividend paid on July 15, 2024, the DRIP

value was $ 4,431 and fulfilled through open market purchases of common stock.

For the dividend paid on October 15, 2024, the

DRIP value was $ 4,521 and was fulfilled through open market purchases of common stock.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

For the dividend paid on December 20, 2024, the

DRIP value was $ 1,084 .

Of this DRIP amount, $ 452 was fulfilled through open market purchases of common stock and $ 632 was fulfilled with

the issuance of 37,843 shares of common stock.

For the dividend paid on January 15, 2025, the

DRIP value was $ 3,923 .

This DRIP is excluded from the table above, as the DRIP share activity was after December 31, 2024.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

the dividend paid on January 15, 2025, the DRIP value was $ 3,923 .

Of this amount, $ 3,434 was reinvested into the Company through the

issuance of 205,626 shares of common stock and $ 489 was fulfilled through open market purchases of common stock.

the dividend paid on April 15, 2025, the DRIP value was $ 2,401 and was fulfilled through open market purchases of common stock.

the special dividend paid on June 24, 2025, the DRIP value was $ 257 and was fulfilled through open market purchases of common stock.

the dividend paid on July 16, 2025, the DRIP value was $ 380 and was fulfilled through open market purchases of common stock.

the dividend paid on October 16, 2025, the DRIP value was $ 174 and was fulfilled through open market purchases of common stock.

the dividend paid on January 16, 2026, the DRIP value was $ 219 .

This DRIP is excluded from the table above, as the DRIP share activity

was after December 31, 2025.

For the year ended December 31, 2024

4 unchanged sentences

September 30, 2024 October 15, 2024 - -

December 5, 2024 December 20, 2024 37,843 632

228,450 $ 3,782

For the dividend 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,

the dividend paid on July 15, 2024, the DRIP value was $ 4,431 and fulfilled through open market purchases of common stock.

the dividend paid on October 15, 2024, the DRIP value was $ 4,521 and was fulfilled through open market purchases of common stock.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

the dividend paid on December 20, 2024, the DRIP value was $ 1,084 .

Of this DRIP amount, $ 452 was fulfilled through open market purchases

of common stock and $ 632 was fulfilled with the issuance of 37,843 shares of common stock.

the dividend paid on January 15, 2025, the DRIP value was $ 3,923 .

This DRIP is excluded from the table above, as the DRIP share activity

was after December 31, 2024.

For the year ended December 31, 2023

1 unchanged sentence

December 29, 2022 January 13, 2023 57,860 $ 955

April 20, 2022 April 26, 2022 75,270 1,222

July 20, 2022 July 27, 2022 88,081 1,431

October 13, 2022 October 25, 2022 127,414 2,087

March 31, 2023 April 14, 2023 65,733 1,089

June 30, 2023 July 14, 2023 81,527 1,352

September 29, 2023 October 13, 2023 96,731 1,586

301,851 $ 4,982

For the dividend paid on January 13, 2023, there were 57,860 shares

issued with a DRIP value of $ 955 .

These shares are excluded from the table above, as the DRIP shares were issued after December 31, 2022.

On May 10, 2024, in conjunction with the

Company’s IPO, the Board of Directors declared the following special dividends:

the dividend 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.

On May 8, 2024, in conjunction with the Company’s

IPO, the Board of Directors declared the following special dividends:

Record date Pay date Special Dividend

4 unchanged sentences

The Company had an aggregate of $ 287,456 and $ 186,282 ,

respectively, of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2024 and December 31, 2023.

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 Statements

(amounts in 000’s, except share and per

share amounts)

A summary of the composition of the unfunded commitments

as of December 31, 2024 and 2023 is shown in the table below.

Alcami Corporation (Alcami)

respectively, of unfunded commitments, including $ 171,137 and $ 126,738 , respectively, of unfunded commitments on revolvers, to provide

debt financing to its portfolio companies as of December 31, 2025 and December 31, 2024.

These commitments are not reflected in the Company’s

consolidated statement of assets and liabilities but are generally incorporated into the Company’s determination of its liquidity.

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.

Company’s unfunded revolving commitments are generally available on a borrower’s demand and may remain outstanding until

the maturity date of the underlying senior secured loan.

The Company’s unfunded delayed draw term loan commitments are generally

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

The commitment period for

unfunded delayed draw term loan commitments may be shorter than the maturity date if drawn or funded.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

summary of the composition of the unfunded commitments as of December 31, 2025 and 2024 is shown in the table below.

Aegis Toxicology Sciences Corporation

AeriTek Global Holdings LLC

Alcami Corporation

Allcat Claims Service, LLC

3 unchanged sentences

Arborworks Acquisition, LLC

MRC Keystone Acquisition LLC (Automated Handing Solutions)

Aviation Concepts, LLC

Acquisition Co., Inc.

BCI Burke Holding Corp.

OAO Acquisitions, Inc.

Bloomington Holdco, LLC (BW Fusion)

1 unchanged sentence

(Bishop Lifting Products)

BR PJK Produce, LLC (Keany)

Brightview, LLC

Carton Packaging Buyer, Inc.

CCFF Buyer, Inc (California Custom Fruits & Flavors, LLC)

(Century Box)

CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)

CGI Automated Manufacturing, LLC

CI (MG) Group, LLC (Mariani Premier Group)

City Line Distributors LLC

CMT Intermediate Holdings, LLC (Capital Machine Technologies)

CREO Group Inc.

(HMS Manufacturing)

Curio Brands, LLC

Del-Air Heating, Air Conditioning & Refrigeration, LLC

DISA Holdings Corp.

2 unchanged sentences

Eastern Wholesale Fence

EIS Legacy, LLC

ECS Opco 1, LLC (Spectrum Vascular)

Energy Acquisition LP (Electrical Components International, Inc.

1 unchanged sentence

Eppinger Technologies, LLC

FCA, LLC (FCA Packaging)

Fastener Distribution Holdings, LLC

Foundation Consumer Brands

Foundation Consumer Brands, LLC

Fralock Buyer LLC

Guardian Dentistry Partners

Guided Practice Solutions:

Dental, LLC (GPS)

Gulf Pacific Holdings, LLC

Gage CR Acquisition, LLC

Guardian Dentistry Practice Management, LLC

Gulf Pacific Acquisition, LLC

Gusmer Enterprises, Inc.

3 unchanged sentences

Improving Acquisition LLC

Integrated Dermatology LLC

J&K Ingredients, LLC

KAMC Holdings, Inc.

(Franklin Energy)

Krayden Holdings, Inc.

Superior Intermediate LLC (Landmark Structures)

Lakewood Acquisition Corporation (R&B Wholesale)

LEM Buyer, Inc.

(CFS Technologies Intermediate, Inc.)

Light Wave Dental Management, LLC

LSL Industries, LLC (LSL Healthcare)

LSL Industries, LLC

MacNeill Pride Group

ML Buyer, LLC (Mama Lycha Foods, LLC)

Monza Purchaser, LLC (Smyth)

MRC Keystone Acquisition LLC (Automated Handing Solutions)

NMA Holdings, LLC (Neuromonitoring Associates)

OAO Acquisitions, Inc.

PGI Parent LLC (Prime Electric)

PH Beauty Holdings III, Inc.

Phoenix YW Buyer, Inc.

2 unchanged sentences

PMFC Holding, LLC

Redwood MSO, LLC

Redwood MSO, LLC (Smile Partners)

Refocus Management Services, LLC

Regiment Security Partners LLC

RMH Systems, LLC

The Robinette Company

Ruff Roofers Buyer, LLC

SGA Dental Partners Holdings, LLC

SGCP Intermediate, Inc.

Siegel Egg Co., LLC

2 unchanged sentences

Sundance Holdings Group, LLC

Superior Intermediate LLC (Landmark Structures)

Tapco Buyer LLC

Texas Coffee Holdco LLC

TL Atlas Merger Sub Corp.

Trademark Global LLC

US Anchors Group, Inc.

(Mechanical Plastics Corp.)

United Safety & Survivability Corporation (USSC)

United Titanium, LLC

US Masonry & Building Products Co.

(f/k/a US Anchors Group, Inc.)

Vehicle Accessories, Inc.

2 unchanged sentences

Total unfunded commitments

From time to time, the Company may become a party

to certain legal proceedings incidental to the normal course of its business.

As of December 31, 2024 and 2023, management was not aware

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

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business.

As of December

31, 2025 and 2024, management was not aware of any material pending or threatened litigation that would require accounting recognition

or financial statement disclosure.

Anderson BDC, Inc.

to Consolidated Financial Statements

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, 2024, 2023 and 2022,

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, 2024, 2023 and 2022.

For the years ended

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.

of December 31, 2025, 2024 and 2023, there were no dilutive shares.

following table sets forth the computation of basic and diluted earnings per share of common stock for the years ended December 31, 2025,

2024 and 2023.

For the years ended December 31,

Net increase (decrease) in net assets resulting from operations

1 unchanged sentence

Earnings (loss) per share of common stock - basic and diluted

The Company has elected to be treated as a RIC

under the Code beginning with the taxable year end December 31, 2021.

As a RIC, the Company is not subject to a federal excise tax based

on distributive requirements of its taxable income on a calendar year basis.

Depending on the level of taxable income earned in a tax

year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a

4 % excise tax on such income, to the extent required.

The Company makes certain adjustments to the classification

of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets

and liabilities, and nondeductible federal taxes or losses among other items.

To the extent these differences are permanent, they are

charged or credited to additional paid in capital, 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, 2024, 2023

These reclassifications have no impact on net

For the years ended

Company has elected to be treated as a RIC under the Code beginning with the taxable year end December 31, 2021.

As a RIC, the Company

is not subject to a federal excise tax based on distributive requirements of its taxable income on a calendar year basis.

the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions

into the next tax year and pay a 4 % excise tax on such income, to the extent required.

Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include

differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items.

To the extent these differences are permanent, they are charged or credited to additional paid in capital, or total distributable earnings

(losses), as appropriate.

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, 2025, 2024 and 2023.

reclassifications have no impact on net assets.

For the years ended December 31,

Increase (decrease) in distributable earnings

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.

1 unchanged sentence

and (4) other non-deductible expense.

The following reconciles net increase in net assets resulting from

operations to taxable income for the years ended December 31, 2024, 2023 and 2022:

For the years ended

The following reconciles net increase in net assets resulting

from operations to taxable income for the years ended December 31, 2025, 2024 and 2023:

For the years ended December 31,

Net increase (decrease) in net assets resulting from operations

5 unchanged sentences

Taxable income before deductions for distributions

(1) The realized gains of $ 570 are offset by capital losses generated for

the year ended December 31, 2023 of $ 10,686 .

(1) The realized gains of $ 570 are offset by capital losses generated

for the year ended December 31, 2023 of $ 10,686 .

Anderson BDC, Inc.

to Consolidated Financial Statements

in 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.

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, 2024 and 2023,

the Company incurred $ 817 and $ 101 , respectively, of U.S.

For the years ended December 31, 2025, 2024 and 2023, the

Company incurred $ 431 , $ 817 and $ 101 , respectively, of U.S.

federal excise tax.

There was no U.S.

federal excise tax incurred for the

year ended December 31, 2022.

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

Company files its tax return for each tax year and the tax characteristics of all distributions will be reported to stockholders on Form

1099 after the end of each calendar year.

The tax character of distributions paid to stockholders during the tax years ended December

31, 2024, 2023 and 2022 were as follows.

For the years ended

The final determination of tax character will

not be made until the Company files its tax return for each tax year and the tax characteristics of all distributions will be

reported to stockholders on Form 1099 after the end of each calendar year.

The tax character of distributions paid to stockholders

during the tax years ended December 31, 2025, 2024 and 2023 were as follows.

For the years ended December 31,

Ordinary income

1 unchanged sentence

Return of capital

For the years ended December 31, 2024, 2023 and 2022, the components

of accumulated earnings on a tax basis were as follows.

For the years ended

For the years ended December 31, 2025, 2024 and 2023, the

components of accumulated earnings on a tax basis were as follows.

For the years ended December 31,

Undistributed net investment income (loss)

3 unchanged sentences

Other temporary book / tax differences

Net unrealized appreciation (depreciation), net of deferred income tax expense, if any

Net unrealized appreciation (depreciation), net of deferred income tax expense

Capital losses can be carried forward indefinitely

5 unchanged sentences

As of December 31, 2023, the Company

had no capital loss carryforwards.

As of December 31, 2024, 2023 and 2022, the Company’s aggregate

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

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, 2025, 2024 and 2023, the Company’s

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

federal income tax purposes was as follows:

For the years ended

For the years ended December 31,

Gross unrealized appreciation

1 unchanged sentence

Net unrealized appreciation/(depreciation) on investments

KABDC Corp, LLC, a wholly owned subsidiary, has elected to be treated

as a corporation for U.S.

KABDC Corp, LLC, a wholly owned subsidiary, has

elected to be treated as a corporation for U.S.

tax purposes.

1 unchanged sentence

Federal, state and local taxes.

For the Company’s

tax year ended December 31, 2024, KABDC Corp, LLC had a deferred income tax expense and a net deferred tax liability of $ 717 .

deferred tax liability of $ 717 is included in accrued expense and other liabilities on the Company’s Consolidated Statement of Assets

and Liabilities as of December 31, 2024.

For the Company’s tax years ended December 31, 2023 and 2022, KABDC Corp, LLC did not have

For year ended December 31, 2025, KABDC Corp, LLC had a deferred income tax expense of $ 1,658 and its net deferred tax liability was $ 2,375 .

For the year ended December 31, 2024, KABDC Corp, LLC had a deferred tax expense and net deferred tax liability of $ 717 .

The net deferred

tax liability of $ 2,375 and $ 717 is included in accrued expense and other liabilities on the Company’s Consolidated Statement of

Assets and Liabilities as of December 31, 2025 and 2024, respectively.

For the year ended December 31, 2023, KABDC Corp, 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, 2024, 2023

and 2022, 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 Statements

(amounts in 000’s, except share and per

share amounts)

Anderson BDC, Inc.

to Consolidated Financial Statements

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

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, 2025, 2024 and 2023, 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.

Financial Highlights

The following per share of common stock data has been derived from

information provided in the audited financial statements.

The following is a schedule of financial highlights for the years ended December

31, 2024, 2023, 2022 and 2021.

following per share of common stock data has been derived from information provided in the audited financial statements.

The following

is a schedule of financial highlights for the years ended December 31, 2025, 2024, 2023, 2022 and 2021.

For the years ended December 31,

6 unchanged sentences

Net Increase (Decrease) in Net Assets Resulting from Operations

Distributions to Common Stockholders

Distributions

Net Decrease in Net Assets Resulting from Distributions

Dividends to Common Stockholders

Net Decrease in Net Assets Resulting from Dividends

Capital Share Transactions

Issuance of Common Stock, net of Underwriting and Offering Costs

Repurchase of Common Stock

Net Increase (Decrease) Resulting from Capital Share Transactions

11 unchanged sentences

Ratio of net investment income (loss) to average net assets (6)

(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.

(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

For the years ended December 31, 2024,

2023, 2022 and 2021, such share transactions include the effect of share issuances of $ 0.00 , $ 0.00 , $ 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

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.

The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company’s dividend

reinvestment plan.

per common share data was derived by using weighted average shares outstanding.

Anderson BDC, Inc.

to Consolidated Financial Statements

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

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

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.

the years ended December 31, 2025, 2024, 2023, 2022 and 2021, such share transactions include the effect of share issuances of $ 0.00 ,

$ 0.00 , $ 0.00 , $ 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.

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.

The calculation also assumes reinvestment of dividends at actual prices pursuant to the

Company’s dividend reinvestment plan.

Total return is not annualized.

Kayne Anderson BDC, Inc.

Notes to Consolidated Financial Statements

(amounts in 000’s, except share and per

share amounts)

(5) Total return based on market value

is calculated as the change in market value per share during the respective periods, plus distributions per share, if any, divided by

the beginning market value per share.

The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company’s

dividend reinvestment plan.

The beginning market value per share is based on the initial public offering price of $ 16.63 per share

and not annualized.

(6) The ratios reflect an annualized amount, except in the case of non-recurring expenses (e.g.

initial organizational expense of $ 175 for the period February 5, 2021 (commencement of operations) through December 31, 2021).

return based on market value is calculated as the change in market value per share during the respective periods, plus distributions

per share, if any, divided by the beginning market value per share.

The calculation also assumes reinvestment of dividends at actual

prices pursuant to the Company’s dividend reinvestment plan.

The beginning market value per share is based on the initial public

offering price of $ 16.63 per share and not annualized.

ratios reflect an annualized amount, except in the case of non-recurring expenses (e.g.

initial organizational expense of $ 175 for the

period February 5, 2021 (commencement of operations) through December 31, 2021).

Segment Reporting

The Company operates through a single operating and reporting segment

with an investment objective to generate both current income and capital appreciation through debt and equity investments.

comprised of the Company’s co-chief executive officers and these CODMs assess the performance and make operating decisions of the

Company on a consolidated basis primarily based on the Company’s net increase in stockholders’ equity resulting from operations

(“net income”).

In addition to numerous other factors and metrics, the CODMs utilize net income as a key metric in determining

the amount of dividends to be distributed to the Company’s stockholders.

As the Company’s operations comprise of a single

reporting segment, the segment assets are reflected on the accompanying consolidated balance sheet as “total assets” and the

significant segment expenses are listed on the accompanying consolidated statement of operations.

Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital

appreciation through debt and equity investments.

The CODM is comprised of the Company’s co-chief executive officers and these

CODMs assess the performance and make operating decisions of the Company on a consolidated basis primarily based on the Company’s

net increase in stockholders’ equity resulting from operations (“net income”).

In addition to numerous other factors

and metrics, the CODMs utilize net income as a key metric in determining the amount of dividends to be distributed to the Company’s

stockholders.

As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying

consolidated balance sheet as “total assets” and the significant segment expenses are listed on the accompanying consolidated

statement of operations.

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 as described below.

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, 2026, the Company paid a regular

dividend of $ 0.40 per share to each common stockholder of record as of December 31, 2025.

The total dividend was $ 28,424 and $ 3,923 of

the total was DRIP.

On February 5, 2025, the Company and KABDCF II

entered into an amendment of its Revolving Funding Facility II.

Under the terms of the amendment, the lender increased its commitment

from $ 150,000 to $ 250,000 and decreased the interest rate on borrowings outstanding from 3-month term SOFR plus 2.70 % to 3-month term

SOFR plus 2.25 %.

Additionally, the maturity date of the facility was extended one year to December 22, 2029.

All other terms of the Revolving

Funding Facility II remain substantially the same.

On February 13, 2025, the Company and KABDCF entered

into an amendment of its Revolving Funding Facility.

Under the terms of the amendment, the lenders increased their commitments from $ 600,000

to $ 675,000 and decreased the interest rate on borrowings outstanding from daily SOFR plus 2.375 % - 2.50 %, depending upon the mix of loans,

to daily SOFR plus 2.15 %.

Additionally, the maturity date of the facility was extended to February 13, 2030 .

All other terms of the Revolving

Funding Facility remain substantially the same.

On February 14, 2025, the Company reduced the

size of its Corporate Credit Facility from $ 475,000 to $ 400,000 .

This commitment reduction was done in conjunction with the $ 75,000 increase

to its Revolving Funding Facility from $ 600,000 to $ 675,000 .

The total dividend was $ 27,213 , and, of this

amount, $ 219 was DRIP which was fulfilled through open market purchases of common stock.

On February 12, 2026, the Board of Directors of

3 unchanged sentences

stock of the Company pursuant to the Company’s Dividend Reinvestment Plan, as amended.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

ON ACCOUNTING AND FINANCIAL DISCLOSURE

There are not and have not been any disagreements

between us and our accountant on any matter of accounting principles, practices or financial statement disclosure.

On February 20, 2026, the Company and its wholly

owned special purposes financing subsidiary, KABDCF, amended the Revolving Funding Facility.

Under the terms of the amendment, the Company

extended the final maturity date to February 20, 2031 and reduced the interest rate on borrowings from daily SOFR plus 2.15 % to daily

SOFR plus 1.95 % per annum.

From January 1, 2026 to February 20, 2026, the

Company’s agent repurchased 1,020,586 shares of common stock at an average price of $ 14.25 per share for a total amount of $ 14,543 .

As of February 20, 2026, $ 45,398 remains for repurchase under the Company’s amended 10b5-1 Plan.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

are not and have not been any disagreements between us and our accountant on any matter of accounting principles, practices or financial

statement disclosure.

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