Kayne Anderson BDC, Inc.

Hello everyone. Thank you for joining us and welcome to the Kane Anderson BDC, Inc.'s second quarter 2026 earnings call. As a reminder, this call is being recorded. It is now my pleasure to turn the call over to Andy Wedderburn-Maxwell, Managing Director.

Good morning and welcome to Kane Anderson BDC, Inc.'s second quarter 2026 earnings call. Today I'm joined by Ken Leonard and Doug Goodwillie, co-CEOs of KBDC, Frank Karl, President, and Terry Hart, CFO. Following our prepared remarks, we'll be available to take your questions. Today's call may include forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors, and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the company, our current and prospective portfolio investments, our industry, our beliefs and our opinions, and our assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Actual results may differ materially from those expressed or forecasted in the forward-looking statements. We ask that you refer to the company's most recent filings with the SEC for important risk factors. Any forward-looking statements made today do not guarantee future performance and undue reliance should not be placed on them. The company assumes no obligation to update any forward-looking statements at any time. Our earnings release, 10Q, and supplemental earnings presentation are available on the financial section of our website at kanebdc.com. Now I'd like to turn the call over to Ken Leonard.

Good morning, everyone. I'm pleased to report that Kane Anderson BDC delivered another quarter of solid performance, demonstrating the continued resilience of our value lending approach in what remains a challenging and bifurcated market environment. I'll provide an overview of KBDC's performance this quarter. Frank Karl will then provide a more detailed overview of our portfolio with some relevant market commentary, and Terry Hart will conclude with KBDC's financial results. For the second quarter of 2026, we generated net investment income of 42 cents per share. Our board of directors has declared a regular quarterly dividend of 40 cents per share for the third quarter. This represents our annualized dividend yield of approximately 10% based on our current NAD per share. The dividend will be payable on October 16th to shareholders of record as of September 30th. This payout represents a dividend coverage ratio of 105%. Our annualized return on equity based on net investment income was 10.5%, reflecting the attractive risk-adjusted returns we have continued to generate for our shareholders. As communicated in our last two earnings calls, we remain confident in our ability to sustain this dividend through 2026. Net asset value per share as of June 30th was $16, representing a decline of 23 cents per share, or approximately 1.4% from the prior quarter's $16.23. We experienced realized and unrealized losses totaling 26 cents per share during the quarter, driven primarily by fair market value adjustments on certain portfolio positions and our completion of our strategic rotation out of our remaining broadly syndicated loan positions. These losses were partially offset by net investment income, exceeding the dividend combined with the impact of creative share repurchases. Our overall credit quality remains strong. KBDC's Non-accrual rate was 2.7%, up just 20 basis points from last quarter. In terms of specific companies, we added 4over and Diversify's last out tranche to non-accrual status and took Sundance off non-accrual as the position was fully realized during the quarter. Turning to investment activity, we closed $138.7 million in new private credit commitments during the quarter. demonstrating our continued ability to source attractive opportunities that meet our rigorous underwriting standards. The pricing environment for new originations remains favorable, with our new floating rate loans averaging 566 basis points over SOFR during the quarter, which was 17 basis points wider than in the first quarter. The current pricing environment reflects sustained demand for private credit amongst middle-market borrowers, slowing capital formation in non-traded and private vehicles, and a general increase in risk premiums. Regardless, we remain disciplined and passed on numerous opportunities during the second quarter, where either risk-adjusted returns fell short of our standards, sector exposure raised concern, or leverage profiles exceeded our comfort levels. We continue to see quality deal flow from sponsors who value our consistency, our ability to move quickly on transactions that fit our criteria, and our track record as constructive partners. Our fundings for the quarter totaled 146.4 million, which included both new investments and draws on existing unfunded commitments from our portfolio companies. On the repayment side, we saw 67.9 million of activity including 38.1 million private credit repayments and 29.8 million from the sale of our remaining broadly syndicated loan positions, which we have discussed in our prior calls. Turning to our balance sheet strength and liquidity positions, we ended the quarter with a debt-to-equity ratio of 1.17 times, comfortably within our target range of 1 to 1.25. This positioning gives us flexibility to be opportunistic when we see compelling investment opportunities while maintaining conservative leverage. Our total liquidity position as of June 30th was $476.7 million, consisting of $39.7 million in cash and cash equivalents and $437 million in undrawn committed debt capacity under our credit lines. M&A activity in our core middle market segment shows encouraging signs. After muted activity in late 2025 and in the first half of 2026, deal flow has picked up modestly in recent months. Private equity sponsors are more active and financing markets while selective remain open for quality business. We continue to see opportunities in our target sectors and win our fair share of pursued deals based on our reputation and execution capabilities. For the second half of 2026, we expect to maintain this disciplined approach, deploying capital that meets our return and credit standards while preserving defensive positioning and sector diversification. In closing, we are encouraged that investors are increasingly differentiating BDCs based on portfolio composition, sector exposure, credit performance, and track record, rather than treating the sector as homogenous. We expect this trend to continue as performance divergence among managers becomes more pronounced. Our conviction in our value lending strategy has never been stronger, and we remain fully committed to delivering sustainable value for our shareholders. I will now pass the call over to Frank Karl to discuss our portfolio.