Carlyle Secured Lending, Inc. (CGBD) Earnings

Management highlights

### Overall Investment Environment & Originations * Despite market volatility, geopolitical uncertainty, and a 25% year-over-year decline in U.S. private equity deal activity, the Carlisle Direct Lending platform grew total originations 14% year-over-year, gaining market share. The investment environment is becoming increasingly lender-friendly, with wider spreads and tighter documentation on new originations * In Q1 2026, the platform closed $1.2 billion in new and incremental commitments, and CGBD funded $217 million in new investments. Average spreads on new CGBD investments widened 50 bps compared to Q4 2025, and first lien deals had 0.25x lower leverage at origination. The expanded origination team closed deals with two new private equity partners * The portfolio remains resilient: overall credit quality is stable, with consistent portfolio company margins, leverage, and LTV ratios. Software portfolio companies continue to grow revenue and EBITDA year-over-year, with no material near-term AI disruption exposure identified

Guidance

* Portfolio growth is expected in Q2 2026, following net portfolio contraction in Q1 2026 driven by elevated repayments and asset sales to MMCF * Earnings are expected to trough in Q2 2026, with earnings growth projected to begin in Q3 2026 as the MMCF and SCP joint ventures ramp up * Over the medium term, management expects a wave of M&A activity, and the firm is positioned to continue gaining market share as deal volume increases * The base dividend was reset to $0.35 per share for Q2 2026, down from the prior $0.40 per share base dividend, with the existing supplemental dividend policy maintained (targeting payout of at least 50% of excess earnings above the base dividend). There is currently $0.70 per share of spillover income to support dividend payments * Two additional CLOs are expected to price and close for SCP in 2026, subject to market conditions, consistent with the planned ramp cadence of four CLO issuances per year for vintage diversification

Segment performance

1. Core CGBD Portfolio: Total investment income for Q1 2026 was $64 million, down from the prior quarter. Net investment income was $25 million, equal to $0.36 per share on both GAAP and adjusted bases. Total investments decreased from $2.5 billion to $2.3 billion quarter-over-quarter due to repayments and asset sales to the MMCF joint venture. Net asset value per share as of March 31, 2026 was $15.89, down from $16.26 at the end of Q4 2025, with an aggregate realized and unrealized net loss of $29 million (equal to $0.42 per share) for the quarter. 94% of core portfolio investments are senior secured loans, across 171 companies in 25+ industries, with single company exposure averaging less than 60 bps of total investments. Non-accrual investments represent only 0.9% of total investments at fair value and 1% at amortized cost. 2. MMCF Joint Venture: Total investments grew to over $1 billion in Q1 2026. Equity commitments were upsized from $175 million to $250 million per partner, and the credit facility was upsized from $800 million to $1.2 billion at SOFR plus 170 bps. The joint venture generates a 15% dividend yield with no management or incentive fees, and contributed $153 million in asset purchases from CGBD in Q1. 3. Structured Credit Partners (SCP) Joint Venture: This new joint venture has total committed equity of $600 million ($150 million from CGBD), with a target of $6-$7 billion in total fee-free assets under management over time. Two CLOs were priced and closed in April 2026 ahead of schedule, with two more CLOs planned for pricing and closing before the end of 2026, aligned with the target ramp cadence of four CLO issuances per year. The joint venture is expected to deliver a 400-500 bps total return uplift to CGBD.

Risks & headwinds

* Ongoing market volatility and geopolitical uncertainty create valuation headwinds: two-thirds of Q1 2026's $29 million net unrealized loss stemmed from spread widening driven by broad market volatility, particularly impacting software investments * Persistently wider credit spreads can lead to further unrealized valuation declines on the existing portfolio * Current portfolio earnings are still impacted by lower investment yields from legacy investments originated during the period of tight market spreads in prior years * All forward-looking statements are subject to inherent uncertainty, and actual results may differ materially from current projections due to unforeseen market and credit risks * Only 0.9% of the portfolio by fair value is currently on non-accrual, but broader economic weakness could lead to increased credit delinquencies and losses

Analyst Q&A

• Q: Given the better origination terms you've highlighted, where do we stand in the current credit cycle for spreads and deal structure? Are we back to mid-cycle levels, or are we in an environment where lenders can extract premium and stronger terms? /

  A: Management notes that capital supply rebalancing across the direct lending space has driven increased underwriting discipline. The dynamic is clearly a shift back to a lender-friendly environment: Q1 originations saw 50 bps of additional spread, higher original issue discount, and tighter documentation that favors lenders. This dynamic is expected to continue for the foreseeable future based on the current active deal pipeline.

• Q: Is it correct that even with some ongoing core portfolio yield compression, earnings will trough in Q2 2026 as you mentioned, ahead of a ramp from the joint ventures? /

  A: Management confirms this outlook. Most spread pressure and the impact of prior base rate cuts has already worked through the portfolio. Average assets will be lower in Q2 than Q1 due to end-of-Q1 asset sales to MMCF, and Q1 benefited from atypically high one-time exit and prepayment fees that added over $0.01 per share to NII. While modest SCP ramp will begin in Q2, major earnings benefits will come in late 2026 and 2027, leading to a Q2 earnings trough followed by a rebound in Q3.

• Q: How were the $153 million in assets sold to MMCF selected, and what were the key details on yield and pricing? /

  A: These were primarily 2025 originations of deals originally structured with 400-475 bps spreads. These lower-spread deals were never intended to be held long-term on CGBD's balance sheet; they were originated with the pre-planned intention of selling them to the MMCF joint venture. The sale was simply a timing milestone for pre-planned portfolio strategy, completed at market terms.