1、Direct Lending UpdatePortfolio Valuation and Fund Advisory ServicesFall 2024FIRST LIENFIRST LIENSOFR+525 bpsMedian Coupon for Newly Issued Loans in Q2 202499.2%Weighted AverageLoan Price11.39%Average Yield1.6%Nonaccrual Rate49.2%Implied Recovery Rate for Loans on Nonaccrual Status-25 bps QoQ+19 bps

2、QoQ-9 bps QoQ+12 bps QoQ-406 bps QoQSECOND LIENSECOND LIENSOFR+675 bpsMedian Coupon for Newly Issued Loans in Q2 202497.4%Weighted AverageLoan Price13.84%Average Yield$375.2BAggregate Fair Valueof Investments Held inBDC Portfolios34,829Aggregate Numberof Investments Held inBDC Portfolios-100 bps QoQ

3、+10 bps QoQ-1 bp QoQ+$27.6B QoQ+1,918 QoQ2Source:Advantage Data.9.2%9.0%9.3%8.8%8.6%8.4%8.1%7.8%7.8%7.7%7.8%8.7%10.2%11.2%11.6%11.8%11.9%11.8%11.5%11.4%11.0%10.9%12.0%11.2%10.7%10.2%9.9%9.5%9.3%9.1%9.2%10.5%12.1%13.7%14.1%14.4%14.2%14.1%13.9%13.8%6.5%7.5%8.5%9.5%10.5%11.5%12.5%13.5%14.5%15.5%Q319Q41

4、9Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Q323Q423Q124Q224First LienSecond LienYields Start to Flatten3 Refinancing and repricing activity continued the momentum from Q1 as credit spreads across the market landscape tightened.In Q2,direct lending outpaced the BSL market in net market

5、share growth,in part driven by its competitive pricing.With direct lending spreads at their lowest level in five years and the Feds first rate cut in four years,borrowers are rushing to lock in lower spreads now and hoping to ride the potential decline in base rates.Average first lien yields across

6、BDC portfolios decreased from 11.48%in Q1 2024 to 11.39%in Q2 2024.On a year-over-year basis,first lien yields decreased by 45 bps.Average second lien yields increased marginally from 13.85%in Q1 2024 to 13.84%in Q2 2024.On a year-over-year basis,second lien yields decreased by 53 bps.Sources:PitchB