Carlyle Secured Lending, Inc. reported significant financial performance for the second quarter of 2025, with total investment income reaching $67.3 million, a 15% increase from $58.3 million in the same period last year. The company’s net investment income for the quarter was $28.3 million, or $0.39 per common share, compared to $26.9 million, or $0.35 per share, in the prior year. For the first half of 2025, total investment income was $122.1 million, slightly up from $120.3 million in the first half of 2024. The increase in income was primarily attributed to a higher average outstanding investment balance due to net origination activity, including assets acquired in the recent CSL III Merger and the Credit Fund II Purchase.
The company’s total assets as of June 30, 2025, amounted to $2.57 billion, a notable increase from $1.93 billion at the end of 2024. This growth was driven by the acquisition of new investments, which totaled $376.9 million during the quarter. The total fair value of investments rose to $2.33 billion, up from $1.80 billion at the end of the previous fiscal year. The company also reported a decrease in net assets per common share to $16.43 from $16.80 at the end of 2024, reflecting the impact of the merger and other capital activities.
Strategically, Carlyle Secured Lending completed the CSL III Merger on March 27, 2025, which involved the issuance of approximately 18.9 million shares of common stock to former CSL III shareholders. This merger was accounted for under the asset acquisition method, resulting in the recognition of a purchase premium that will amortize over the life of the acquired loans. Additionally, the company acquired Credit Fund II, which is now a wholly owned subsidiary, further expanding its investment portfolio.
Operationally, the company held 202 investments across 148 portfolio companies and 28 industries as of June 30, 2025. The portfolio included a mix of first lien debt (85.6% of fair value), second lien debt (3.9%), equity investments (5.4%), and investment funds (5.1%). The company reported that 3.0% of its portfolio was on non-accrual status, indicating a slight increase in risk. The weighted average yield on total debt and income-producing investments was 10.9% as of June 30, 2025.
Looking ahead, Carlyle Secured Lending anticipates continued growth driven by its strategic acquisitions and a robust investment pipeline. The company has increased its total commitments under its Credit Facility to $960 million and declared a quarterly common stock dividend of $0.40 per share, payable on October 17, 2025. The company remains focused on generating current income and capital appreciation through its portfolio of secured debt investments in U.S. middle market companies.
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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