Carlyle Secured Lending has recently released its 10-Q report. Carlyle Secured Lending, Inc. is a closed-end, externally managed business development company that focuses on direct lending to U.S. middle market companies. Its core portfolio is built around first lien senior secured loans and second lien senior secured loans, with smaller allocations to unsecured debt, mezzanine debt, structured products and equity investments. It targets companies with about $25 million or more of EBITDA, with emphasis on sponsor-backed borrowers in sectors including healthcare, aerospace and defense, software, business services and leisure.
In Item 2, management said the company’s first-quarter 2026 net investment income was $25.2 million, or $0.36 per common share, matching adjusted net investment income per share after purchase accounting adjustments. Dividends declared on common shares totaled $28.1 million, or $0.40 per share, while basic earnings per share were a loss of $0.06. Net investment income increased from the prior-year period because of a higher average outstanding investment balance, driven by net origination activity over the past 12 months, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025, partly offset by lower investment yields.
Net asset value per common share fell to $15.89 at March 31, 2026 from $16.26 at December 31, 2025. The portfolio had 248 investments across 171 portfolio companies in 31 industries, with a fair value of $2.3 billion, down from $2.5 billion at year-end mainly because of sales to Credit Fund. Non-accrual investments represented 1.0% of the portfolio at cost and 0.9% at fair value.
Liquidity and capital activity remained active. Total liquidity was $641.9 million in cash and unused debt capacity at March 31, 2026. On February 11, 2026, the company and Credit Partners amended the Credit Fund LLC agreement, increasing each member’s capital commitment to $250.0 million. On February 18, 2026, the board expanded the stock repurchase authorization by $100.0 million to $300.0 million. During the quarter, the company repurchased 1,536,254 common shares for about $18.5 million, which management said added roughly $0.09 to NAV per share. From April 1 through May 8, 2026, it repurchased another 773,808 shares for about $8.8 million, also cited as producing $0.09 per share of NAV accretion.
Management also disclosed that on April 29, 2026, it declared a $0.35 per share common dividend payable July 16, 2026. The market has reacted to these announcements by moving the company's shares -0.22% to a price of $11.495. For the full picture, make sure to review Carlyle Secured Lending's 10-Q report.
