Carlyle Secured Lending, Inc. reported a net investment income of $25.2 million, or $0.36 per common share, for the first quarter of 2026, reflecting an increase from $24.0 million, or $0.33 per share, in the previous quarter. The company’s total investment income for the quarter was $64.1 million, compared to $66.9 million in the prior quarter, primarily due to a decrease in interest income, which fell to $49.7 million from $54.6 million. The decline in interest income was attributed to lower yields on investments and a reduced average outstanding principal balance, which decreased from $2.5 billion to $2.3 billion during the period.
In terms of expenses, Carlyle Secured Lending incurred total expenses of $38.9 million for the quarter, down from $42.9 million in the previous quarter. This reduction was driven by lower interest expenses and credit facility fees, which decreased to $21.8 million from $25.5 million. The company also reported a net decrease in net assets resulting from operations of $4.2 million, a significant decline from the net increase of $17.4 million reported in the previous quarter. The net asset value per common share decreased to $15.89 as of March 31, 2026, down from $16.26 at the end of 2025.
Carlyle Secured Lending's investment portfolio consisted of 248 investments across 171 portfolio companies, with a total fair value of $2.3 billion as of March 31, 2026. The company reported that non-accrual investments represented 1.0% of the portfolio based on cost and 0.9% based on fair value. The company’s liquidity position improved, with total liquidity of $641.9 million, including cash and unused debt capacity, compared to $472.8 million at the end of the previous quarter.
Strategically, the company completed the acquisition of Carlyle Secured Lending III in March 2025, which contributed to the increase in its investment balance. Additionally, Carlyle Secured Lending repurchased 1.5 million shares of its common stock during the first quarter of 2026 for approximately $18.5 million, resulting in an accretion to net asset value per share of about $0.09. The company also declared a dividend of $0.40 per share for the quarter, consistent with the previous quarter's dividend.
Looking ahead, Carlyle Secured Lending remains focused on its investment strategy of generating current income through secured debt investments in U.S. middle market companies. The company is well-positioned with a strong liquidity position and a diversified investment portfolio, although it acknowledges potential challenges from fluctuating interest rates and market conditions. The company’s management continues to monitor its portfolio closely to manage risks and capitalize on investment opportunities.
About Carlyle Secured Lending, Inc.
Carlyle Secured Lending, Inc. is a Maryland-based specialty finance company and business development company (BDC) that primarily invests in secured debt of U.S. middle market companies. It focuses on direct origination of senior secured loans, including first and second lien debt, supporting private equity-backed firms. Backed by Carlyle’s global credit platform, it offers flexible, credit-driven investment solutions aimed at generating current income and capital appreciation.
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