Carlyle Secured Lending, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company achieved total investment income of $66.5 million for the quarter, a 19% increase from $55.9 million in the same period last year. This growth was primarily driven by a rise in interest income, which reached $53.3 million, up from $41.6 million year-over-year. Net investment income for the quarter was $26.8 million, or $0.37 per share, compared to $24.9 million, or $0.37 per share, in the prior year. However, the net asset value (NAV) per common share decreased to $16.36 from $16.80 at the end of the previous fiscal year.
The company’s total assets increased to $2.56 billion as of September 30, 2025, up from $1.93 billion at the end of 2024. This growth was attributed to the acquisition of Carlyle Secured Lending III (CSL III) and the Credit Fund II Purchase, which contributed to a substantial increase in the investment portfolio. The total investments at fair value reached $2.42 billion, with first lien debt comprising 85.7% of the portfolio. The company also reported a total of 221 investments across 158 portfolio companies, reflecting a diversified approach across various industries.
Carlyle Secured Lending's liabilities also saw a notable increase, rising to $1.37 billion from $1.02 billion at the end of 2024. This increase was largely due to higher secured borrowings, which amounted to $1.31 billion, up from $960.9 million. The company’s debt-to-equity ratio stood at 1.10x, indicating a leveraged position that is compliant with regulatory requirements. The asset coverage ratio was reported at 190.6%, well above the minimum requirement for business development companies.
In terms of strategic developments, the company 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 a purchase premium that will be amortized over the life of the acquired loans. Additionally, Carlyle Secured Lending announced a quarterly dividend of $0.40 per share, payable on January 16, 2026, reflecting its commitment to returning value to shareholders.
Looking ahead, Carlyle Secured Lending remains focused on its investment strategy, which emphasizes secured debt investments in U.S. middle market companies. The company is well-positioned with a total liquidity of $594.6 million, including cash and undrawn debt capacity, to support its ongoing investment activities and meet its financial obligations. The management anticipates that the current market conditions and the recent acquisitions will enhance its ability to generate income and achieve capital appreciation in the future.
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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