Crescent Capital BDC (CCAP) 10-Q 2018 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                      to                     

Commission file number814-01132

Crescent Capital BDC, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	47-3162282
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
11100 Santa Monica Blvd., Suite 2000, Los Angeles, CA	90025
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (310)235-5900

Not applicable

Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☐    No  ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of RegulationS-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-Accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule12b-2 of the Securities Exchange Act of 1934).    Yes  ☐    No  ☒

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at November 9, 2018 was 12,609,898.

CRESENT CAPITAL BDC, INC.

FORM10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2018

Table of Contents

	INDEX	PAGE NO.
PART I.	FINANCIAL INFORMATION		2
Item 1.	Financial Statements		2
	Consolidated Statements of Assets and Liabilities as of September 30, 2018 (Unaudited) and December 31, 2017		2
	Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and September 30, 2017 (Unaudited)		3
	Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2018 and September 30, 2017 (Unaudited)		4
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and September 30, 2017 (Unaudited)		5
	Consolidated Schedule of Investments as of September 30, 2018 (Unaudited)		6
	Consolidated Schedule of Investments as of December 31, 2017		13
	Notes to Consolidated Financial Statements (Unaudited)		19
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		53
Item 4.	Controls and Procedures		54
PART II.	OTHER INFORMATION		54
Item 1.	Legal Proceedings		54
Item 1A.	Risk Factors		54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		54
Item 3.	Defaults Upon Senior Securities		55
Item 4.	[Reserved]		55
Item 5.	Other Information		55
Item 6.	Exhibits		55

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

The following factors and factors listed under “Risk Factors” in this report and other documents Crescent Capital BDC, Inc. has filed with the Securities and Exchange Commission, or SEC, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:

• Potential fluctuation in quarterly operating results

• Potential impact of economic recessions or downturns

• Adverse developments in the credit markets

• Operation in a highly competitive market for investment opportunities

• Regulations governing our operation as a business development company

• Financing investments with borrowed money

• Lack of liquidity in investments

• Defaults by portfolio companies

• Uncertainty as to the value of certain portfolio investments

• Potential resignation of the Advisor and or the Administrator

• Changes in interest rates may affect our cost of capital and net investment income

• Potential adverse effects of price declines and illiquidity in the corporate debt markets

• Risks associated with original issue discount (“OID”) andpayment-in-kind (“PIK”) interest income

• Risks regarding distributions

• Potential adverse effects of new or modified laws and regulations

Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form10-K, quarterly reports on Form10-Q and current reports on Form8-K. The safe harbor provisions of Section 21E of the 1934 Act, which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this report because we are an investment company.

See accompanying notes

1

Crescent Capital BDC, Inc.

Consolidated Statements of Assets and Liabilities

	As of     September 30, 2018     (Unaudited)			As of     December 31,     2017
Assets
Investments,non-controlled andnon-affiliated, at fair value (cost of $449,697,944 and $317,215,906, respectively)	$	449,779,516		$	319,126,672
Cash and cash equivalents		11,827,378			8,791,778
Cash denominated in foreign currency (cost of $511,048 and $452,924, respectively)		501,275			479,134
Receivable for investments sold		51,793			11,957
Interest receivable		1,448,285			1,333,277
Prepaid expenses and other assets		55,674			74,357
Total assets	$	463,663,921		$	329,817,175
Liabilities
Debt (net of deferred financing costs of $1,873,978 and $856,042, respectively)	$	202,638,087		$	150,847,928
Payable for investments purchased		21,455,133			—
Distributions payable		4,464,640			2,707,232
Management fees payable - affiliate		888,973			734,504
Income incentive fee payable - affiliate		—			504,295
Due to Advisor - affiliate		97,310			38,924
Due to Administrator - affiliate		222,080			232,779
Professional fees payable		391,661			289,899
Directors’ fees payable		61,813			57,063
Interest and other debt financing costs payable		1,366,871			1,018,332
Deferred tax liability		199,875			217,149
Accrued expenses and other liabilities		288,810			369,081
Total liabilities	$	232,075,253		$	157,017,186
Commitments and Contingencies (Note 7)
Net Assets
Preferred stock, par value $0.001 per share (10,000 shares authorized, zero outstanding, respectively)	$	—		$	—
Common stock, par value $0.001 per share (200,000,000 shares authorized, 11,599,480 and 8,597,116 shares issued and outstanding, respectively)		11,599			8,597
Paid-in capital in excess of par value		230,997,573			170,755,891
Accumulated net realized loss		(636,597	)		(455,135	)
Accumulated undistributed net investment income		918,069			536,613
Net unrealized appreciation (depreciation) on investments and foreign currency translation, net of deferred taxes		298,024			1,954,023
Total Net Assets	$	231,588,668		$	172,799,989
Total Liabilities and Net Assets	$	463,663,921		$	329,817,175
Net asset value per share	$	19.97		$	20.10

See accompanying notes

2

Crescent Capital BDC, Inc.

Consolidated Statements of Operations

(Unaudited)

	For the three months ended September 30,				For the nine months ended September 30,
	2018		2017		2018			2017
Investment Income:
Interest income fromnon-controlled andnon-affiliated investments	$	8,363,489	$	6,164,352	$	22,372,435		$	15,900,326
Paid-in-kind interest		157,455		21,785		210,442			42,483
Dividend income		202,803		—		202,803			—
Total investment income		8,723,747		6,186,137		22,785,680			15,942,809
Expenses:
Interest and other debt financing costs		2,175,202		1,416,125		5,783,370			3,752,347
Management fees (net of waiver of $724,415, $416,321, $1,768,203 and $1,099,417, respectively)		888,973		710,176		2,421,971			1,982,695
Income incentive fees (net of waiver of $731,150, $0, $1,292,056 and $0, respectively)		—		504,005		554,977			1,118,540
Directors’ fees		72,500		72,500		217,500			217,500
Professional fees		200,097		184,802		575,177			536,368
Organization expenses		40,564		16,226		97,354			56,790
Other general and administrative expenses		471,191		426,276		1,369,047			1,226,985
Total expenses		3,848,527		3,330,110		11,019,396			8,891,225
Net investment income before taxes		4,875,220		2,856,027		11,766,284			7,051,584
Income and excise taxes		880		—		7,701			1,689
Net investment income after taxes		4,874,340		2,856,027		11,758,583			7,049,895
Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on investments		—		(87,129)		(219,319)			(349,060)
Net realized gain (loss) on foreign currency transactions		32,697		(514)		37,857			(2,510)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation		(114,625)		(37,227)		(1,673,273)			2,539,686
Net realized and unrealized gains (losses) on investments		(81,928)		(124,870)		(1,854,735)			2,188,116
Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments		11,775		(380,145)		17,274			(380,145)
Net increase in net assets resulting from operations	$	4,804,187	$	2,351,012	$	9,921,122		$	8,857,866
Per Common Share Data:
Net increase in net assets resulting from operations per share (basic and diluted):	$	0.42	$	0.30	$	0.99		$	1.21
Net investment income per share (basic and diluted):	$	0.43	$	0.36	$	1.17		$	0.96
Weighted average shares outstanding (basic and diluted):		11,394,307		7,848,043		10,043,636			7,349,165
Distributions declared per share:	$	0.38	$	0.30	$	1.08	��	$	0.87

See accompanying notes

3

Crescent Capital BDC, Inc.

Consolidated Statements of Changes in Net Assets

(Unaudited)

	For the nine   months ended   September 30, 2018			For the nine   months ended   September 30, 2017
Increase (decrease) in net assets resulting from operations:
Net investment income	$	11,758,583		$	7,049,895
Net realized loss on investments and foreign currency transactions		(181,462	)		(351,570	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation		(1,673,273	)		2,539,686
Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments		17,274			(380,145	)
Net increase in net assets resulting from operations		9,921,122			8,857,866
Distributions to shareholders from:
Net investment income		(11,377,127	)		(6,634,449	)
Total distributions to shareholders		(11,377,127	)		(6,634,449	)
Capital transactions:
Issuance of common stock		60,000,000			35,000,000
Issuance of common stock pursuant to dividend reinvestment plan		380,875			63,435
Equity offering costs		(136,191	)		(79,445	)
Net increase in net assets resulting from capital transactions		60,244,684			34,983,990
Total increase in net assets		58,788,679			37,207,407
Net assets at beginning of period		172,799,989			128,056,028
Net assets at end of period	$	231,588,668		$	165,263,435
Accumulated undistributed (distributions in excess of) net investment income	$	918,069		$	365,928
Changes in Shares
Common stock, at beginning of period		8,597,116			6,376,850
Issuance of common stock		2,983,418			1,722,924
Issuance of common stock pursuant to dividend reinvestment plan		18,946			3,142
Common stock, at end of period		11,599,480			8,102,916

See accompanying notes

4

Crescent Capital BDC, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	For the nine months ended   September 30, 2018			For the nine months ended   September 30, 2017
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	9,921,122		$	8,857,866
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
Purchases of investments		(211,921,254	)		(123,484,975	)
Paid-in-kind interest income		(210,442	)		(42,483	)
Proceeds from sales of investments and principal repayments		80,725,817			42,998,915
Net realized (gain) loss on investments		219,319			349,060
Net change in unrealized (appreciation) depreciation on investments and foreign currency translation		1,673,273			(2,539,686	)
Amortization of premium and accretion of discount, net		(1,295,478	)		(880,170	)
Amortization of deferred financing costs		584,661			568,144
Increase (decrease) in operating assets and liabilities:
(Increase) decrease in receivable for investments sold		(39,836	)		992,402
(Increase) decrease in interest receivable		(115,008	)		321,607
(Increase) decrease in prepaid expenses and other assets		18,683			(61,182	)
Increase (decrease) in payable for investments purchased		21,455,133			1,995,000
Increase (decrease) in management fees payable - affiliate		154,469			188,309
Increase (decrease) in income incentive fees payable - affiliate		(504,295	)		42,468
Increase (decrease) in due to Advisor - affiliate		58,386			11,677
Increase (decrease) in due to Administrator - affiliate		(10,699	)		(7,649	)
Increase (decrease) in professional fees payable		101,762			154,311
Increase (decrease) in directors’ fees payable		4,750			3,813
Increase (decrease) in interest and credit facility fees and expenses payable		348,539			464,217
Increase (decrease) in deferred tax liability		(17,274	)		380,145
Increase (decrease) in accrued expenses and other liabilities		(80,271	)		102,583
Net cash provided by (used for) operating activities		(98,928,643	)		(69,585,628	)
Cash flows from financing activities:
Issuance of common stock		60,000,000			35,000,000
Financing costs paid related to revolving credit facilities		(1,602,598	)		(643,712	)
Distributions paid		(9,238,844	)		(5,850,435	)
Equity offering costs		(136,191	)		(79,445	)
Borrowings on debt		148,000,000			96,000,000
Repayments on debt		(95,000,000	)		(52,200,000	)
Net cash provided by (used for) financing activities		102,022,367			72,226,408
Effect of exchange rate changes on cash denominated in foreign currency		(35,983	)		28,322
Net increase (decrease) in cash, cash equivalents and foreign currency		3,057,741			2,669,102
Cash, cash equivalents and foreign currency, beginning of period		9,270,912			5,119,325
Cash, cash equivalents and foreign currency, end of period	$	12,328,653		$	7,788,427
Supplemental andnon-cash financing activities:
Cash paid during the period for interest	$	4,686,246		$	2,570,120
Issuance of common stock pursuant to distribution reinvestment plan	$	380,875		$	63,435
Accrued but unpaid equity offering costs	$	56,747		$	22,698
Accrued but unpaid distributions	$	4,464,640		$	2,470,579

See accompanying notes

5

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Investments(1)
United States
Debt Investments
Automobiles & Components
AP Exhaust Acquisition, LLC(2)	Senior Secured Second Lien		L + 850	(3)		11.08	%		05/2025	$	9,072,563	$	8,793,138			3.5	%	$	8,029,218
Auto-Vehicle Parts, LLC(2)	Senior Secured First Lien		L + 450	(4)		6.74	%		01/2023		4,869,750		4,804,688			2.1			4,869,750
Auto-Vehicle Parts, LLC(2) (5) (6)	Senior Secured First Lien								01/2023		—		(7,664	)		—			—
Continental Battery Company(2) (6)	Senior Secured First Lien		L + 450	(4)		6.74	%		12/2022		3,234,303		3,173,042			1.4			3,234,303
Continental Battery Company(2)	Senior Secured First Lien		L + 450	(4)		6.74	%		12/2022		3,473,750		3,421,478			1.5			3,473,750
Empire Auto Parts, LLC(2)	Senior Secured First Lien		L + 550	(3)		7.82	%		09/2024		2,500,000		2,450,475			1.1			2,475,728
Empire Auto Parts, LLC(2) (5) (6)	Senior Secured First Lien								09/2024		—		(7,905	)		—			(3,883	)
POC Investors, LLC(2)	Senior Secured First Lien		L + 550	(3)		7.89	%		11/2021		5,363,828		5,308,055			2.3			5,363,828
POC Investors, LLC(2) (5) (6)	Senior Secured First Lien								11/2021		—		(7,183	)		—			—
											28,514,194		27,928,124			11.9			27,442,694
Capital Goods
Alion Science and Technology Corporation	Senior Secured First Lien		L + 450	(4)		6.74	%		08/2021		3,000,000		3,000,000			1.3			3,020,640
Alion Science and Technology Corporation(2)	Unsecured Debt					11.00	%		08/2022		6,542,905		6,400,204			2.8			6,542,905
Midwest Industrial Rubber(2)	Senior Secured First Lien		L + 550	(3)		7.89	%		12/2021		4,681,310		4,623,913			2.0			4,681,310
Midwest Industrial Rubber(2) (5) (6)	Senior Secured First Lien								12/2021		—		(6,264	)		—			—
Potter Electric Signal Company(2) (5) (6)	Senior Secured First Lien								12/2022		—		(4,744	)		—			(2,250	)
Potter Electric Signal Company(2)	Senior Secured First Lien		L + 450	(7)		7.27	%		12/2023		2,537,250		2,509,029			1.1			2,524,564
Potter Electric Signal Company(2) (5) (6)	Senior Secured First Lien								12/2023		—		(7,380	)		—			(3,500	)
											16,761,465		16,514,758			7.2			16,763,669
Commercial & Professional Services
Advantage Sales & Marketing, Inc.	Senior Secured First Lien		L + 325	(4)		5.49	%		07/2021		822,166		822,381			0.3			764,273
Advantage Sales & Marketing, Inc.	Senior Secured Second Lien		L + 650	(4)		8.74	%		07/2022		500,000		502,086			0.2			425,625
ASP MCS Acquisition Corp.	Senior Secured First Lien		L + 475	(3)		7.14	%		05/2024		5,307,812		5,285,524			2.0			4,524,910
BFC Solmetex LLC & Bonded Filter Co. LLC(2) (6)	Senior Secured First Lien		L + 625	(3)		8.62	%		04/2023		120,000		104,776			0.1			120,000
BFC Solmetex LLC & Bonded Filter Co. LLC(2)	Senior Secured First Lien		L + 625	(3)		8.66	%		09/2023		6,057,182		5,933,978			2.6			6,057,182
BFC Solmetex LLC & Bonded Filter Co. LLC(2)	Senior Secured First Lien		L + 625	(3)		8.64	%		09/2023		631,068		618,615			0.3			631,068
BFC Solmetex LLC & Bonded Filter Co. LLC(2) (5) (6)	Senior Secured First Lien								09/2023		—		(8,500	)		—			—
CHA Holdings Inc(2)	Senior Secured First Lien		L + 450	(3)		6.89	%		04/2025		4,916,250		4,892,978			2.1			4,953,122
CHA Holdings Inc(2) (5) (6)	Senior Secured First Lien								04/2025		—		(5,006	)		—			8,036
DFS Intermediate Holdings, LLC(2)	Senior Secured First Lien		L + 525	(4)		7.49	%		03/2022		8,909,750		8,780,257			3.8			8,909,750
DFS Intermediate Holdings, LLC(2) (5) (6)	Senior Secured First Lien								03/2022		—		(37,283	)		—			—
DFS Intermediate Holdings, LLC(2) (6)	Senior Secured First Lien		L + 525	(4)		7.49	%		03/2022		1,846,045		1,709,701			0.8			1,846,045
GH Holding Company(2)	Senior Secured First Lien		L + 450	(4)		6.74	%		02/2023		1,492,500		1,485,774			0.6			1,492,500

See accompanying notes

6

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
GI Revelation Acquisition LLC	Senior Secured First Lien		L + 500	(4)		7.24	%		04/2025	$	3,990,000	$	3,971,027			1.7	%	$	4,004,962
Hepaco, LLC(2) (6)	Senior Secured First Lien		L + 500	(4)		7.10	%		08/2021		333,333		329,733			0.1			333,333
Hepaco, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		08/2022		5,217,500		5,173,300			2.3			5,217,500
Hepaco, LLC(2) (6)	Senior Secured First Lien		L + 500	(4)		7.21	%		08/2022		189,142		177,432			0.1			189,142
Jordan Healthcare Inc.(2)	Senior Secured First Lien		L + 600	(3)		8.39	%		07/2022		4,072,761		4,039,157			1.8			4,072,761
Jordan Healthcare Inc.(2) (6)	Senior Secured First Lien		L + 600	(3)		8.39	%		07/2022		706,988		695,985			0.3			706,988
Jordan Healthcare Inc.(2) (6)	Senior Secured First Lien		L + 600	(3)		8.39	%		07/2022		90,000		86,472			—			90,000
MHS Acquisition Holdings, LLC(2)	Senior Secured Second Lien		L + 875	(3)		11.14	%		03/2025		8,101,633		7,899,644			3.4			7,920,653
MHS Acquisition Holdings, LLC(2) (6)	Senior Secured Second Lien		L + 875	(3)		11.14	%		03/2025		466,576		448,020			0.2			443,080
MHS Acquisition Holdings, LLC(2)	Unsecured Debt					13.50	%		03/2026		803,957		792,281			0.3			697,083
SavATree, LLC(2)	Senior Secured First Lien		L + 525	(3)		7.64	%		06/2022		3,655,875		3,602,479			1.6			3,655,875
SavATree, LLC(2) (5) (6)	Senior Secured First Lien								06/2022		—		(8,072	)		—			—
SavATree, LLC(2) (6)	Senior Secured First Lien		L + 525	(3)		7.64	%		06/2022		90,773		85,641			—			90,773
TecoStar Holdings, Inc.(2)	Senior Secured Second Lien		L + 850	(4)		10.62	%		11/2024		5,000,000		4,892,092			2.2			5,062,500
USAGM HoldCo LLC(2)	Senior Secured Second Lien					11.00	%		07/2023		2,380,952		2,340,844			1.0			2,351,858
USAGM HoldCo LLC	Senior Secured Second Lien		L + 850	(8)		10.79	%		07/2023		10,000,000		9,721,809			4.3			9,935,950
Valet Waste Holdings, Inc.(2)	Senior Secured First Lien								07/2025		15,000,000		14,962,500			6.5			15,075,000
Xcentric Mold and Engineering Acquisition Company, LLC(2)	Senior Secured First Lien		L + 550	(4)		7.62	%		01/2022		4,974,250		4,905,739			2.2			4,974,250
Xcentric Mold and Engineering Acquisition Company, LLC(2) (6)	Senior Secured First Lien		L + 550	(4)		7.62	%		01/2022		393,750		384,626			0.2			393,750
											96,070,263		94,585,990			41.0			94,947,969
Consumer Durables & Apparel
C.F. Stinson, LLC(2)	Senior Secured First Lien		L + 600	(4) (9)		8.00	%		06/2021		3,000,000		2,964,322			1.3			3,000,000
EiKo Global, LLC(2)	Senior Secured First Lien		L + 600	(4)		8.24	%		06/2023		2,493,750		2,446,627			1.1			2,493,750
EiKo Global, LLC(2) (6)	Senior Secured First Lien		L + 600	(4)		8.24	%		06/2023		37,500		29,101			—			37,500
											5,531,250		5,440,050			2.4			5,531,250
Consumer Services
Counsel On Call, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.25	%		09/2022		1,188,000		1,177,809			0.5			1,199,880
Counsel On Call, LLC(2) (6)	Senior Secured First Lien		L + 550	(4)		7.75	%		09/2022		285,714		282,365			0.1			289,714
Counsel On Call, LLC(2)	Senior Secured First Lien		L + 550	(4)		7.72	%		09/2022		300,000		297,488			0.1			303,000
Iconic Group, Inc.(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		05/2024		1,346,625		1,333,743			0.6			1,346,625
Iconic Group, Inc.(2) (5) (6)	Senior Secured First Lien								05/2024		—		(2,368	)		—			—
Learn-It Systems, LLC(2) (6)	Senior Secured First Lien		L + 425	(4)		6.62	%		07/2023		132,353		122,055			0.1			125,598
Learn-It Systems, LLC(2) (5) (6)	Senior Secured First Lien								07/2023		—		(4,337	)		—			(2,026	)
Learn-It Systems, LLC(2)	Senior Secured First Lien		L + 425	(4)		6.49	%		07/2023		1,446,375		1,425,349			0.6			1,436,605
New Mountain Learning(2)	Senior Secured First Lien		L + 550	(3)		7.89	%		03/2024		1,850,000		1,815,647			0.8			1,826,143

See accompanying notes

7

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
New Mountain Learning(2) (5) (6)	Senior Secured First Lien								03/2024	$	—	$	(10,911	)		—	%	$	(7,737	)
New Mountain Learning(2) (6)	Senior Secured First Lien		L + 550	(4)		7.74	%		03/2024		375,000		365,908			0.2			368,552
NS Intermediate Holdings, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		09/2021		3,276,601		3,237,763			1.4			3,277,953
NS Intermediate Holdings, LLC(2) (5) (6)	Senior Secured First Lien								09/2021		—		(2,619	)		—			103
Oncourse Learning Corporation(2)	Senior Secured First Lien		L + 650	(3)		8.89	%		09/2021		15,093,943		14,944,937			6.6			15,093,943
Pre-Paid Legal Services, Inc.	Senior Secured First Lien		L + 325	(4)		5.49	%		05/2025		3,670,118		3,652,688			1.6			3,696,506
Pre-Paid Legal Services, Inc.	Senior Secured Second Lien		L + 750	(4)		9.74	%		05/2026		7,000,000		6,932,741			3.0			7,078,750
SkillSoft Corporation	Senior Secured First Lien		L + 475	(4)		6.99	%		04/2021		967,213		957,700			0.4			921,962
Teaching Strategies LLC(2)	Senior Secured First Lien		L + 600	(3)		8.39	%		05/2024		9,351,563		9,129,440			4.0			9,351,563
Teaching Strategies LLC(2) (5) (6)	Senior Secured First Lien								05/2024		—		(14,725	)		—			—
United Language Group, Inc.(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		12/2021		4,427,750		4,351,354			1.9			4,472,028
United Language Group, Inc.(2) (6)	Senior Secured First Lien		L + 500	(4)		7.24	%		12/2021		340,000		333,222			0.1			344,000
Vistage Worldwide, Inc.	Senior Secured First Lien		L + 400	(4)		6.15	%		02/2025		8,575,905		8,583,424			3.7			8,618,827
Wrench Group LLC(2) (5) (6)	Senior Secured First Lien								12/2023		—		(4,747	)		—			—
Wrench Group LLC(2)	Senior Secured First Lien		L + 450	(3)		6.89	%		12/2024		4,587,556		4,544,426			2.0			4,587,556
Wrench Group LLC(2)	Senior Secured First Lien		L + 450	(3)		6.83	%		12/2024		139,370		137,484			0.1			139,370
Wrench Group LLC(2) (5) (6)	Senior Secured First Lien								12/2024		—		(1,398	)		—			—
											64,354,086		63,584,438			27.8			64,468,915
Diversified Financials
Vanguard Holdings Corp.(2) (6)	Senior Secured First Lien		L + 550	(4)		7.74	%		09/2023		1,329,583		1,301,074			0.6			1,315,320
Vanguard Holdings Corp.(2) (5) (6)	Senior Secured First Lien								09/2023		—		(14,255	)		—			(7,131	)
Vanguard Holdings Corp.(2)	Senior Secured First Lien		L + 550	(4)		7.74	%		09/2023		11,850,000		11,614,091			5.0			11,732,081
											13,179,583		12,900,910			5.6			13,040,270
Energy
Murray Energy Corporation	Senior Secured First Lien		L + 725	(4)		9.49	%		10/2022		348,827		339,739			0.1			320,766
Food & Staples Retailing
Isagenix International, LLC	Senior Secured First Lien		L + 575	(3)		8.14	%		06/2025		6,912,500		6,874,728			3.0			6,929,781
Health Care Equipment & Services
Ameda, Inc.(2)	Senior Secured First Lien		L + 650	(4)		8.74	%		09/2022		2,623,500		2,583,571			1.1			2,567,633
Ameda, Inc.(2) (6)	Senior Secured First Lien		L + 650	(4)		8.74	%		09/2022		187,500		183,084			0.1			181,112
Beaver-Visitec International, Inc.(2) (10)	Senior Secured First Lien		L + 400	(3)		6.39	%		08/2023		11,389,337		11,324,759			4.9			11,446,284
CDRH Parent, Inc.	Senior Secured First Lien		L + 425	(3)		6.58	%		07/2021		362,415		364,063			0.1			341,757
Centauri Health Solutions, Inc.(2)	Senior Secured First Lien		L + 575	(4)		7.99	%		01/2022		13,462,250		13,250,016			5.9			13,596,872
Centauri Health Solutions, Inc.(2) (6)	Senior Secured First Lien		L + 575	(4)		7.99	%		01/2022		787,500		773,492			0.3			803,250
ExamWorks Group, Inc.(2)	Senior Secured Second Lien		L + 725	(4)		9.48	%		07/2024		5,735,294		5,596,753			2.5			5,735,294
GrapeTree Medical Staffing, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		10/2022		1,683,000		1,658,446			0.7			1,699,830

See accompanying notes

8

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
GrapeTree Medical Staffing, LLC(2) (5) (6)	Senior Secured First Lien								10/2022	$	—	$	(6,379	)		—	%	$	4,500
Ivory Merger Sub, Inc.	Senior Secured First Lien		L + 350	(3)		5.84	%		03/2025		8,942,065		8,942,494			3.8			8,891,766
MDVIP, Inc.	Senior Secured First Lien								11/2024		6,492,633		6,492,633			2.8			6,525,096
MDVIP, Inc.(2)	Senior Secured Second Lien		L + 800	(4)		10.17	%		11/2025		5,333,333		5,173,208			2.4			5,440,000
NMSC Holdings, Inc.(2)	Senior Secured Second Lien		L + 1000	(3)		12.59	%		10/2023		4,307,480		4,176,050			1.8			4,234,654
Onex Carestream Finance LP(10)	Senior Secured First Lien		L + 400	(4)		6.24	%		06/2019		214,464		214,522			0.1			214,642
Onex Carestream Finance LP(10)	Senior Secured Second Lien		L + 850	(4)		10.74	%		12/2019		153,081		153,081			0.1			152,813
Professional Physical Therapy(2)	Senior Secured First Lien		L + 750 PIK	(3)		9.69	%		12/2022		8,347,138		7,877,548			3.1			7,075,034
PT Network, LLC(2) (6)	Senior Secured First Lien		P + 450	(11)		9.50	%		11/2021		200,000		198,734			0.1			191,848
PT Network, LLC(2) (5) (6)	Senior Secured First Lien								11/2021		—		(4,351	)		—			(37,704	)
PT Network, LLC(2)	Senior Secured First Lien		L + 550	(3)		7.84	%		11/2021		4,698,827		4,684,031			2.0			4,603,062
Smile Doctors LLC(2) (6)	Senior Secured First Lien		L + 600	(3)		8.33	%		10/2022		57,042		56,155			—			63,208
Smile Doctors LLC(2)	Senior Secured First Lien		L + 600	(3)		8.39	%		10/2022		3,213,306		3,175,631			1.4			3,277,572
Smile Doctors LLC(2) (6)	Senior Secured First Lien		L + 600	(3)		8.09	%		10/2022		95,695		90,717			0.1			136,810
Upstream Rehabilition, Inc.(2)	Senior Secured First Lien		L + 450	(3)		6.64	%		01/2024		2,133,875		2,124,321			0.9			2,133,875
Upstream Rehabilition, Inc.(2) (6)	Senior Secured First Lien		L + 450	(4)		6.65	%		01/2024		20,000		19,124			—			20,000
											80,439,735		79,101,703			34.2			79,299,208
Household & Personal Products
Paris Presents Incorporated(2)	Senior Secured First Lien		P + 400	(11)		9.25	%		12/2020		—		30			—			—
Tranzonic(2)	Senior Secured First Lien		L + 475	(4)		6.98	%		03/2023		3,179,348		3,150,357			1.4			3,179,348
Tranzonic(2) (5) (6)	Senior Secured First Lien								03/2023		—		(4,933	)		—			—
											3,179,348		3,145,454			1.4			3,179,348
Insurance
Integro Parent Inc.(2)	Senior Secured First Lien		L + 575	(3)		8.06	%		10/2022		486,392		480,417			0.2			487,608
Integro Parent Inc.(2)	Senior Secured Second Lien		L + 925	(3)		11.56	%		10/2023		2,915,493		2,873,282			1.2			2,900,915
Integro Parent Inc.(2)	Senior Secured Second Lien		L + 925	(3)		11.59	%		10/2023		380,282		375,454			0.2			378,381
											3,782,167		3,729,153			1.6			3,766,904
Materials
Emerald Performance Materials, LLC	Senior Secured First Lien		L + 350	(4)		5.74	%		08/2021		960,422		962,582			0.4			968,427
Maroon Group, LLC(2)	Senior Secured First Lien		L + 600	(3)		8.39	%		08/2022		2,443,868		2,421,327			1.1			2,443,868
Maroon Group, LLC(2) (6)	Senior Secured First Lien		L + 600	(3)		8.32	%		08/2022		42,000		38,818			—			42,000
Maroon Group, LLC(2) (5) (6)	Senior Secured First Lien								08/2022		—		(11,364	)		—			—
											3,446,290		3,411,363			1.5			3,454,295
Media
Acosta Holdco, Inc.	Senior Secured First Lien		L + 325	(4)		5.49	%		09/2021		967,864		968,397			0.3			730,132
Tribune Media Company(10)	Senior Secured First Lien		L + 300	(4)		5.24	%		12/2020		155,650		156,000			0.1			156,477

See accompanying notes

9

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Vivid Seats Ltd.(2)	Senior Secured Second Lien		L + 875	(4)		10.99	%		06/2025	$	540,540	$	512,283			0.2	%	$	551,352
											1,664,054		1,636,680			0.6			1,437,961
Pharmaceuticals, Biotechnology & Life Sciences
Amyris, Inc.(2) (10)	Senior Secured First Lien		P + 625	(11)		11.25	%		07/2021		5,000,000		4,952,466			2.2			5,000,000
Trinity Partners, LLC(2)	Senior Secured First Lien		L + 500	(8)		7.45	%		02/2023		3,237,489		3,192,848			1.4			3,237,489
Trinity Partners, LLC(2) (5) (6)	Senior Secured First Lien								02/2023		—		(7,906	)		—			—
											8,237,489		8,137,408			3.6			8,237,489
Retailing
Slickdeals Holdings, LLC(2) (5) (6)	Senior Secured First Lien								06/2023		—		(18,784	)		—			—
Slickdeals Holdings, LLC(2)	Senior Secured First Lien		L + 625	(3)		8.58	%		06/2024		10,881,837		10,594,355			4.7			10,881,837
Strategic Partners, Inc.(2)	Senior Secured First Lien		L + 375	(4)		5.99	%		06/2023		6,402,947		6,390,676			2.8			6,426,957
											17,284,784		16,966,247			7.5			17,308,794
Software & Services
Ansira Partners, Inc.(2)	Senior Secured First Lien		L + 575	(4)		7.99	%		12/2022		6,954,216		6,902,354			3.0			6,936,831
Ansira Partners, Inc.(2) (6)	Senior Secured First Lien		L + 575	(4)		7.99	%		12/2022		236,727		231,333			0.1			234,342
Avaap USA LLC(2)	Senior Secured First Lien		L + 475	(4)		6.99	%		03/2023		1,840,750		1,807,256			0.8			1,840,750
Avaap USA LLC(2) (5) (6)	Senior Secured First Lien								03/2023		—		(3,130	)		—			—
Avaap USA LLC(2) (6)	Senior Secured First Lien		L + 475	(4)		6.99	%		03/2023		61,250		54,990			—			61,250
C-4 Analytics, LLC(2)	Senior Secured First Lien		L + 525	(4)		7.49	%		08/2023		10,444,500		10,290,241			4.6			10,548,945
C-4 Analytics, LLC(2) (5) (6)	Senior Secured First Lien								08/2023		—		(8,559	)		—			6,000
List Partners, Inc.(2)	Senior Secured First Lien		L + 500	(3)		7.39	%		01/2023		3,726,875		3,660,728			1.6			3,764,144
List Partners, Inc.(2) (5) (6)	Senior Secured First Lien								01/2023		—		(7,674	)		—			4,500
List Partners, Inc.(2) (5) (6)	Senior Secured First Lien								01/2023		—		(4,050	)		—			9,500
Mediaocean LLC	Senior Secured First Lien		L + 425	(4)		6.50	%		08/2022		8,393,212		8,346,856			3.6			8,435,177
Merrill Communications, LLC	Senior Secured First Lien		L + 525	(3)		7.59	%		06/2022		438,938		439,904			0.2			443,602
SMS Systems Maintenance Services, Inc.(2) (12)	Senior Secured Second Lien								10/2024		4,703,478		4,443,207			1.6			3,696,934
SMS Systems Maintenance Services, Inc.(2) (12)	Senior Secured Second Lien								10/2024		9,015,000		8,534,747			2.8			6,580,950
Transportation Insight, LLC(2) (6)	Senior Secured First Lien		L + 450	(4)		6.74	%		08/2024		112,500		108,064			0.1			110,250
Transportation Insight, LLC(2) (5) (6)	Senior Secured First Lien								08/2024		—		(21,196	)		—			(10,750	)
Transportation Insight, LLC(2)	Senior Secured First Lien		L + 450	(4)		6.74	%		08/2024		2,900,000		2,871,342			1.3			2,885,500
Winxnet Holdings LLC(2) (5) (6)	Senior Secured First Lien								06/2023		—		(3,793	)		—			—
Winxnet Holdings LLC(2)	Senior Secured First Lien		L + 600	(4)		8.24	%		06/2023		1,995,000		1,956,795			0.9			1,995,000
Winxnet Holdings LLC(2) (5) (6)	Senior Secured First Lien								06/2023		—		(7,588	)		—			—
Zoom Information, Inc.(2)	Senior Secured First Lien		L + 600	(3) (9)		8.39	%		08/2022		16,600,000		16,241,393			7.2			16,766,000
											67,422,446		65,833,220			27.8			64,308,925
Technology Hardware & Equipment
Onvoy, LLC(2)	Senior Secured Second Lien		L + 1050	(3)		12.89	%		02/2025		2,635,052		2,526,238			1.0			2,382,610

See accompanying notes

10

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Transportation
Pilot Air Freight, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		10/2022	$	3,291,501	$	3,267,858			1.4	%	$	3,291,501
Pilot Air Freight, LLC(2) (6)	Senior Secured First Lien		L + 500	(4)		7.24	%		10/2022		1,223,789		1,223,789			0.5			1,223,789
Pilot Air Freight, LLC(2) (5) (6)	Senior Secured First Lien								07/2024		—		(5,814	)		—			—
Pilot Air Freight, LLC(2)	Senior Secured First Lien		L + 500	(4)		7.24	%		07/2024		2,194,500		2,183,805			1.0			2,194,500
Pilot Air Freight, LLC(2) (5) (6)	Senior Secured First Lien								07/2024		—		(484	)		—			—
											6,709,790		6,669,154			2.9			6,709,790
Total Debt Investments United States										$	426,473,323	$	419,325,357			181.1	%	$	419,530,638
Equity Investments
Automobiles & Components
AP Centric(2) (13)	Common Stock										927		927,437			0.3			603,342
Capital Goods
Alion Science and Technology Corporation(2) (13)	Common Stock										745,504		766,483			0.3			820,054
Commercial & Professional Services
MHS Acquisition Holdings, LLC(2) (13)	Common Stock										913		912,639			0.2			457,076
TecoStar Holdings, Inc.(2) (13)	Common Stock										500,000		500,000			0.3			618,004
Universal Services Equity Investments(2) (13)	Common Stock										1,000,000		1,000,000			0.7			1,533,038
USAGM HoldCo LLC(2) (13)	Common Stock										238,095		238,095			0.1			365,009
											1,739,008		2,650,734			1.3			2,973,127
Consumer Services
Legalshield(2) (13)	Common Stock										527		526,882			0.3			702,118
Diversified Financials
Gacp II LP(2) (6) (10) (13) (14)	Partnership Interest										12,248,978		12,248,978			5.4			12,402,353
Health Care Equipment & Services
ExamWorks Group, Inc.(2) (13)	Common Stock										7,500		750,000			0.5			1,013,461
MDVIP, Inc.(2) (13)	Common Stock										46,807		666,667			0.3			758,990
											54,307		1,416,667			0.8			1,772,451
Insurance
Integro Equity(2) (13)	Common Stock										4,468		454,072			0.2			580,832
Media
Vivid Seats Ltd.(2) (13)	Common Stock										608,108		608,108			0.3			806,808
Vivid Seats Ltd.(2) (13)	Preferred Stock										1,891,892		1,891,892			1.0			2,203,059
											2,500,000		2,500,000			1.3			3,009,867
Retailing
Slickdeals Holdings, LLC(2) (13)	Common Stock										109		1,090,911			0.5			1,240,383
Software & Services
SMS Systems Maintenance Services, Inc.(2) (13)	Common Stock										1,142,789		1,144,520			—			—
Technology Hardware & Equipment
Onvoy, LLC(2) (13)	Common Stock, Class A										3,649		364,948			0.1			228,172
Onvoy, LLC(2) (13)	Common Stock, Class B										2,536		—			—			—
											6,185		364,948			0.1			228,172
Total Equity Investments United States										$	18,442,802	$	24,091,632			10.5	%	$	24,332,699
Total United States												$	443,416,989			191.6	%	$	443,863,337

See accompanying notes

11

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

September 30, 2018

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value  or Shares		Cost		Percentage of Net Assets **			Fair Value
France
Debt Investments
Technology Hardware & Equipment
Parkeon, Inc.(10)	Senior Secured First Lien		L + 475	(15)		4.75	%		04/2023	€	$1,994,499	$	2,094,198		1.0	%	$	2,315,637
Total Debt Investments France										€	1,994,499	$	2,094,198		1.0	%	$	2,315,637
Total France												$	2,094,198		1.0	%	$	2,315,637
United Kingdom
Debt Investments
Software & Services
CB-SDG Limited(2) (10)	Senior Secured First Lien		L + 650, 0.50	%(16)		7.68	%		07/2022	£	1,987,392		3,017,642		1.1			2,591,658
CB-SDG Limited(2) (6) (10)	Senior Secured First Lien		L + 650, 0.50	%(16)		7.68	%		07/2022		773,654		1,169,115		0.5			1,008,884
Total Debt Investments United Kingdom										£	2,761,046	$	4,186,757		1.6	%	$	3,600,542
Total United Kingdom												$	4,186,757		1.6	%	$	3,600,542
Total Investments												$	449,697,944		194.2	%	$	449,779,516

* The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) and which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect at September 30, 2018. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.

** Percentage is based on net assets of $231,588,668 as of September 30, 2018.

(1) All positions held arenon-controlled/non-affiliated investments as defined by the Investment Company Act of 1940, as amended (“1940 Act”).Non-controlled/non-affiliated investments are investments that are neither controlled investments nor affiliated investments.

(2) The fair value of the investment was determined using significant unobservable inputs. See Note 2 “Summary of Significant Accounting Policies”.

(3) The interest rate on these loans is subject to the greater of a LIBOR floor or 3 month LIBOR plus a base rate. The 3 month LIBOR as of September 30, 2018 was 2.40%. For some of these loans, the interest rate is based on the last reset date.

(4) The interest rate on these loans is subject to the greater of a LIBOR floor or 1 month LIBOR plus a base rate. The 1 month LIBOR as of September 30, 2018 was 2.26%. For some of these loans, the interest rate is based on the last reset date.

(5) The negative cost, if applicable, is the result of the capitalized discount or unfunded commitment being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount or unfunded commitment on the loan.

(6) Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. See Note 7 “Commitments and Contingencies”.

(7) The interest rate on these loans is subject to the greater of a LIBOR floor or 12 month LIBOR plus a base rate. The 12 month LIBOR as of September 30, 2018 was 2.92%. For some of these loans, the interest rate is based on the last reset date.

(8) The interest rate on these loans is subject to the greater of a LIBOR floor or 2 month LIBOR plus a base rate. The 2 month LIBOR as of September 30, 2018 was 2.31%. For some of these loans, the interest rate is based on the last reset date.

(9) These loans are firstlien/last-out term loans. In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders whereby the loan has been allocated to“first-out” and“last-out” tranches, whereby the“first-out” tranche will have priority as to the“last-out” tranche with respect to payments of principal, interest and any amounts due thereunder. The Company holds the“last-out” tranche.

(10) Investment is not a qualifying investment as defined under section 55 (a) of the Investment Company Act of 1940. Qualifying assets must represent at least 70% of total assets at the time of acquisition.

(11) The interest rate on these loans is subject to the U.S. Prime rate, which as of September 30, 2018 was 5.25%.

(12) The investment is onnon-accrual status as of September 30, 2018.

(13) Non-income producing security.

(14) This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.

(15) The interest rate on these loans is subject to the greater of a EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of September 30, 2018 was (0.32)%. For some of these loans, the interest rate is based on the last reset date.

(16) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 3 month GBP LIBOR plus a base rate. The 3 month GBP LIBOR as of September 30, 2018 was 0.80%. For some of these loans, the interest rate is based on the last reset date.

PIK PaymentIn-Kind

See accompanying notes

12

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Investments(1)
United States
Debt Investments
Automobiles & Components
AP Exhaust Acquisition, LLC	Senior Secured Second Lien		L + 850	(2)		10.07	%		05/2025	$	9,072,563	$	8,772,269			5.1	%	$	8,755,023
Continental Battery Company(3) (4) (5)	Senior Secured First Lien								12/2022		—		(14,728	)		—			(8,417	)
Continental Battery Company(4)	Senior Secured First Lien		L + 450	(2)		5.97	%		12/2022		3,500,000		3,439,279			2.0			3,465,339
POC Investors, LLC(4)	Senior Secured First Lien		L + 550	(2)		7.19	%		11/2021		5,455,000		5,386,590			3.1			5,455,000
POC Investors, LLC(3) (4)	Senior Secured First Lien		P + 450	(6)		9.00	%		11/2021		291,666		282,750			0.2			291,666
											18,319,229		17,866,160			10.4			17,958,611
Capital Goods
Alion Science and Technology Corporation(4)	Unsecured Debt					11.00	%		08/2022		5,000,000		4,888,189			2.9			5,000,000
MB Aerospace Holdings Inc.(7)	Senior Secured First Lien		L + 550	(8)		7.13	%		12/2022		4,316,796		4,285,785			2.5			4,316,796
Midwest Industrial Rubber(4)	Senior Secured First Lien		L + 550	(2)		7.19	%		12/2021		4,059,000		4,001,434			2.4			4,059,000
Midwest Industrial Rubber(3) (4) (5)	Senior Secured First Lien								12/2021		—		(5,829	)		—			—
Potter Electric Signal Company(3) (4)	Senior Secured First Lien		P + 350	(6)		8.00	%		12/2022		45,000		39,415			—			40,525
Potter Electric Signal Company(3) (4) (5)	Senior Secured First Lien								12/2023		—		(8,688	)		—			(6,962	)
Potter Electric Signal Company(4)	Senior Secured First Lien		L + 450	(2)		6.11	%		12/2023		2,550,000		2,518,322			1.5			2,524,637
Pro Mach Group, Inc.	Senior Secured First Lien		L + 375	(8)		5.32	%		10/2021		731,156		734,727			0.4			736,822
											16,701,952		16,453,355			9.7			16,670,818
Commercial & Professional Services
ADMI Corp.	Senior Secured First Lien		L + 375	(2)		5.13	%		04/2022		975,000		982,876			0.6			985,667
Advantage Sales & Marketing, Inc.	Senior Secured First Lien		L + 325	(2)		4.63	%		07/2021		828,589		828,859			0.5			809,946
Advantage Sales & Marketing, Inc.	Senior Secured Second Lien		L + 650	(2)		7.88	%		07/2022		500,000		502,431			0.3			470,000
ASP MCS Acquisition Corp.	Senior Secured First Lien		L + 475	(8)		6.25	%		05/2024		5,348,125		5,323,240			3.1			5,388,236
Brickman Group Ltd. LLC	Senior Secured Second Lien		L + 650	(8)		7.99	%		12/2021		234,042		234,832			0.1			235,652
DFS Intermediate Holdings, LLC (3) (4)	Senior Secured First Lien		L + 525	(8)		6.82	%		03/2022		551,400		509,092			0.3			551,400
DFS Intermediate Holdings, LLC(4)	Senior Secured First Lien		L + 525	(8)		6.61	%		03/2022		7,294,875		7,168,177			4.2			7,294,875
Hepaco, LLC(3) (4)	Senior Secured First Lien		P + 400	(6)		8.50	%		08/2021		125,000		120,465			0.1			125,000
Hepaco, LLC(4)	Senior Secured First Lien		L + 500	(2)		6.67	%		08/2022		5,257,250		5,205,291			3.0			5,257,250
Hepaco, LLC(3) (4)	Senior Secured First Lien		L + 500	(2)		6.49	%		08/2022		190,571		176,591			0.1			190,571
Jordan Healthcare Inc.(3) (4) (5)	Senior Secured First Lien								07/2022		—		(13,197	)		—			—
Jordan Healthcare Inc.(4)	Senior Secured First Lien		L + 600	(2)		7.69	%		07/2022		4,103,615		4,064,096			2.4			4,103,615
Jordan Healthcare Inc.(3) (4) (5)	Senior Secured First Lien								07/2022		—		(3,999	)		—			—
MHS Acquisition Holdings, LLC(4)	Senior Secured Second Lien		L + 875	(2)		10.44	%		03/2025		8,101,633		7,881,618			4.5			7,878,838
MHS Acquisition Holdings, LLC(3) (4)	Senior Secured Second Lien		L + 875	(2)		10.44	%		03/2025		466,576		445,780			0.2			437,651
MHS Acquisition Holdings, LLC(4)	Unsecured Debt					13.50 PIK	%		03/2026		545,279		536,003			0.3			509,835
MHS Acquisition Holdings, LLC(4)	Unsecured Debt					13.50	%		03/2026		140,887		138,336			0.1			131,730

See accompanying notes

13

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
PowerTeam Services, LLC	Senior Secured First Lien		L + 325	(2)		4.94	%		05/2020	$	975,408	$	974,174			0.6	%	$	979,680
SavATree, LLC(4)	Senior Secured First Lien		L + 525	(2)		6.94	%		06/2022		3,683,625		3,620,467			2.1			3,683,625
SavATree, LLC(3) (4) (5)	Senior Secured First Lien								06/2022		—		(9,717	)		—			—
SavATree, LLC(3) (4) (5)	Senior Secured First Lien								06/2022		—		(6,183	)		—			—
TecoStar Holdings, Inc.(4)	Senior Secured Second Lien		L + 850	(2)		9.88	%		11/2024		5,000,000		4,882,850			3.0			5,150,000
USAGM HoldCo LLC(4)	Senior Secured Second Lien					11.00	%		07/2023		2,000,000		1,957,275			1.2			2,051,324
USAGM HoldCo LLC	Senior Secured Second Lien		L + 850	(2)		9.88	%		07/2023		10,000,000		9,689,631			5.8			9,991,700
Valet Waste Holdings, Inc.(4)	Senior Secured First Lien		L + 700	(8)		8.57	%		09/2021		4,790,761		4,742,306			2.8			4,832,273
Valet Waste Holdings, Inc.(3) (4) (5)	Senior Secured First Lien								09/2021		—		(5,253	)		—			4,709
Vencore, Inc.	Senior Secured First Lien		L + 475	(2)		6.44	%		11/2019		481,973		482,292			0.3			487,169
William Morris Endeavor Entertainment, LLC	Senior Secured Second Lien		L + 725	(2)		8.63	%		05/2022		166,667		163,744			0.1			167,500
Xcentric Mold and Engineering Acquisition Company, LLC(4)	Senior Secured First Lien		L + 550	(8)		6.88	%		01/2022		5,012,125		4,929,254			2.9			5,012,125
Xcentric Mold and Engineering Acquisition Company, LLC(3) (4)	Senior Secured First Lien		L + 550	(8)		6.88	%		01/2022		175,000		163,783			0.1			175,000
											66,948,401		65,685,114			38.7			66,905,371
Consumer Durables & Apparel
C.F. Stinson, LLC(4)	Senior Secured First Lien		L + 600	(8) (9)		7.88	%		06/2021		3,000,000		2,956,173			1.8			3,030,000
Consumer Services
Catapult Learning, LLC(4)	Senior Secured First Lien		L + 650	(2) (9)		7.88	%		07/2020		4,934,211		4,906,471			2.8			4,884,868
Counsel On Call, LLC(3) (4) (5)	Senior Secured First Lien								09/2022		—		(6,979	)		—			(7,001	)
Counsel On Call, LLC(4)	Senior Secured First Lien		L + 550	(8)		7.07	%		09/2022		1,197,000		1,185,060			0.7			1,185,028
NS Intermediate Holdings, LLC(3) (4) (5)	Senior Secured First Lien								09/2021		—		(3,273	)		—			2,238
NS Intermediate Holdings, LLC(4)	Senior Secured First Lien		L + 550	(8)		7.07	%		09/2021		2,532,110		2,497,657			1.5			2,554,778
Oncourse Learning Corporation(3) (4)	Senior Secured First Lien		L + 650	(2)		7.83	%		09/2021		13,190,175		13,033,704			7.6			13,190,175
SkillSoft Corporation	Senior Secured First Lien		L + 475	(8)		6.32	%		04/2021		969,713		957,665			0.5			936,292
Teaching Company, LLC(4)	Senior Secured First Lien		L + 475	(2)		6.44	%		02/2023		4,962,500		4,918,925			2.9			5,012,125
Wrench Group LLC(3) (4) (5)	Senior Secured First Lien								03/2022		—		(5,753	)		—			—
Wrench Group LLC(4)	Senior Secured First Lien		L + 450	(2)		6.19	%		03/2022		3,772,222		3,730,704			2.2			3,772,222
Wrench Group LLC(3) (4) (5)	Senior Secured First Lien								12/2024		—		(2,615	)		—			—
Wrench Group LLC(4)	Senior Secured First Lien		L + 450	(2)		6.19	%		12/2024		850,000		844,099			0.5			850,000
											32,407,931		32,055,665			18.7			32,380,725
Diversified Financials
Edelman Financial Group, The	Senior Secured First Lien		L + 425	(2)		5.65	%		11/2024		3,485,500		3,476,920			2.0			3,531,247
Energy
Murray Energy Corporation	Senior Secured First Lien		L + 725	(2)		8.94	%		04/2020		351,585		339,560			0.2			311,446
Food & Staples Retailing
Good Source Solutions, Inc.(4)	Senior Secured First Lien		L + 725	(2)		8.94	%		07/2021		2,598,346		2,578,786			1.5			2,619,644

See accompanying notes

14

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
HLF Financing S.a r.l.(7)	Senior Secured First Lien		L + 550	(8)		7.07	%		02/2023	$	4,718,750	$	4,635,945			2.7	%	$	4,718,019
											7,317,096		7,214,731			4.2			7,337,663
Food, Beverage & Tobacco
Shearer’s Foods, Inc.	Senior Secured First Lien		L + 425	(2)		5.94	%		06/2021		735,000		730,176			0.4			736,837
Health Care Equipment & Services
Ameda, Inc.(4)	Senior Secured First Lien		L + 600	(8)		7.35	%		09/2022		2,643,375		2,596,923			1.5			2,610,648
Ameda, Inc.(3) (4) (5)	Senior Secured First Lien								09/2022		—		(5,242	)		—			(3,714	)
Beaver-Visitec International, Inc.(7)	Senior Secured First Lien		L + 500	(2)		6.69	%		08/2023		9,396,174		9,333,914			5.4			9,396,174
CDRH Parent, Inc.	Senior Secured First Lien		L + 425	(2)		5.75	%		07/2021		365,246		367,319			0.2			321,051
Centauri Health Solutions, Inc(3) (4)	Senior Secured First Lien		L + 550	(8)		6.87	%		01/2022		1,181,250		1,164,103			0.7			1,197,000
Centauri Health Solutions, Inc(4)	Senior Secured First Lien		L + 550	(8)		6.87	%		01/2022		8,237,750		8,099,349			4.8			8,320,127
ExamWorks Group, Inc.(4)	Senior Secured Second Lien		L + 1050	(2)		10.50	%		07/2024		5,000,000		4,868,280			3.0			5,150,000
GrapeTree Medical Staffing, LLC(4)	Senior Secured First Lien		L + 500	(8)		6.37	%		10/2022		1,695,750		1,667,116			1.0			1,695,750
GrapeTree Medical Staffing, LLC(3) (4) (5)	Senior Secured First Lien								10/2022		—		(7,556	)		—			—
MDVIP, Inc.(4)	Senior Secured Second Lien		L + 800	(2)		9.41	%		11/2025		5,333,333		5,161,946			3.1			5,333,333
NMSC Holdings, Inc.(4)	Senior Secured Second Lien		L + 1000	(2)		11.69	%		10/2023		4,307,480		4,162,549			2.5			4,307,480
NVA Holdings, Inc.	Senior Secured First Lien		L + 350	(2)		5.19	%		08/2021		4,013,697		3,943,661			2.3			4,052,168
Onex Carestream Finance LP(7)	Senior Secured First Lien		L + 400	(2)		5.69	%		06/2019		214,464		214,583			0.1			215,134
Onex Carestream Finance LP(7)	Senior Secured Second Lien		L + 850	(2)		10.19	%		12/2019		153,081		153,081			0.1			151,168
Professional Physical Therapy	Senior Secured First Lien		P + 500	(6)		9.50	%		12/2022		7,944,750		7,881,928			4.5			7,825,579
PT Network, LLC(3) (4) (5)	Senior Secured First Lien								11/2021		—		(6,944	)		—			—
PT Network, LLC(4)	Senior Secured First Lien		L + 550	(2)		6.86	%		11/2021		4,770,793		4,752,367			2.8			4,770,793
Smile Doctors LLC(3) (4)	Senior Secured First Lien		P + 475	(6)		9.25	%		10/2022		58,333		55,952			—			58,333
Smile Doctors LLC(4)	Senior Secured First Lien		L + 575	(2)		7.32	%		10/2022		1,596,000		1,580,685			0.9			1,596,000
Smile Doctors LLC(3) (4)	Senior Secured First Lien		L + 575	(2)		7.11	%		10/2022		296,060		280,351			0.2			296,060
Snow Companies LLC(4)	Senior Secured First Lien		L + 600	(8)		7.35	%		01/2022		9,256,500		9,101,027			5.4			9,256,500
Zest Holdings, LLC	Senior Secured First Lien		L + 425	(8)		5.82	%		08/2023		4,912,875		4,881,278			2.9			4,965,074
											71,376,911		70,246,670			41.4			71,514,658
Household & Personal Products
Paris Presents Incorporated	Senior Secured First Lien		L + 500	(8)		6.57	%		12/2020		1,723,494		1,710,533			1.0			1,723,494
Paris Presents Incorporated	Senior Secured Second Lien		L + 875	(8)		10.32	%		12/2021		504,468		496,189			0.3			501,946
											2,227,962		2,206,722			1.3			2,225,440
Insurance
Integro Parent Inc.	Senior Secured First Lien		L + 575	(2)		7.13	%		10/2022		455,883		449,455			0.3			454,743
Integro Parent Inc.	Senior Secured First Lien		L + 575	(2)		7.31	%		10/2022		34,259		33,768			—			34,174
Integro Parent Inc.	Senior Secured Second Lien		L + 925	(2)		10.63	%		10/2023		2,408,451		2,367,126			1.4			2,360,282

See accompanying notes

15

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Integro Parent Inc.	Senior Secured Second Lien		L + 925	(2)		10.61	%		10/2023	$	380,282	$	374,743			0.2	%	$	372,676
											3,278,875		3,225,092			1.9			3,221,875
Materials
Emerald Performance Materials, LLC	Senior Secured First Lien		L + 350	(8)		5.07	%		08/2021		966,381		969,084			0.5			974,842
IBC Capital Limited(7)	Senior Secured First Lien		L + 375	(2)		5.29	%		09/2021		828,697		820,264			0.5			829,836
Tank Holding Corp.	Senior Secured First Lien		L + 425	(2)		5.59	%		03/2022		858,427		864,170			0.5			864,599
											2,653,505		2,653,518			1.5			2,669,277
Media
Acosta Holdco, Inc.	Senior Secured First Lien		L + 325	(8)		4.82	%		09/2021		975,253		975,914			0.5			861,475
Tribune Media Company(7)	Senior Secured First Lien		L + 300	(8)		4.57	%		12/2020		155,650		156,110			0.1			156,072
Vivid Seats Ltd.(4)	Senior Secured Second Lien		L + 875	(8)		10.32	%		06/2025		2,500,000		2,359,918			1.4			2,476,663
											3,630,903		3,491,942			2.0			3,494,210
Real Estate
DTZ U.S. Borrower, LLC(7)	Senior Secured Second Lien		L + 825	(2)		9.63	%		11/2022		425,532		420,617			0.3			426,596
Retailing
Academy, Ltd.	Senior Secured First Lien		L + 400	(2)		5.57	%		07/2022		920,172		923,909			0.4			728,661
Petco Animal Supplies, Inc.	Senior Secured First Lien		L + 300	(2)		4.38	%		01/2023		163,750		161,376			0.1			124,348
Strategic Partners, Inc.	Senior Secured First Lien		L + 450	(8)		6.07	%		06/2023		6,435,122		6,421,364			3.7			6,475,341
											7,519,044		7,506,649			4.2			7,328,350
Software & Services
Ansira Partners, Inc.(4)	Senior Secured First Lien		L + 650	(2)		8.19	%		12/2022		6,480,000		6,424,409			3.7			6,431,400
Ansira Partners, Inc.(3) (4)	Senior Secured First Lien		L + 650	(2)		8.19	%		12/2022		526,850		518,968			0.3			519,710
C-4 Analytics, LLC(4)	Senior Secured First Lien		L + 525	(8)		6.60	%		08/2023		10,523,625		10,348,612			6.1			10,523,625
C-4 Analytics, LLC(3) (4) (5)	Senior Secured First Lien								08/2023		—		(9,867	)		—			—
Epicor Software Corporation	Senior Secured First Lien		L + 375	(8)		5.32	%		06/2022		968,400		969,651			0.6			972,032
Informatica Corporation(7)	Senior Secured First Lien		L + 350	(2)		5.19	%		08/2022		819,327		820,167			0.5			823,350
Mediaocean LLC	Senior Secured First Lien		L + 425	(8)		5.82	%		08/2022		8,457,689		8,402,969			4.9			8,499,977
Merrill Communications, LLC	Senior Secured First Lien		L + 525	(2)		6.63	%		06/2022		874,992		877,258			0.5			882,649
Ministry Brands Intermediate, LLC(3)	Senior Secured First Lien		L + 500	(2)		6.38	%		12/2022		406,144		401,553			0.2			406,144
Ministry Brands Intermediate, LLC	Senior Secured First Lien		L + 500	(2)		6.38	%		12/2022		5,200,325		5,155,302			3.1			5,200,325
SMS Systems Maintenance Services, Inc.(4)	Senior Secured Second Lien		L + 850	(2)		9.75	%		10/2024		4,703,478		4,562,956			2.3			4,009,934
SMS Systems Maintenance Services, Inc.(4)	Senior Secured Second Lien					10.00	%		10/2024		9,015,000		8,751,579			4.4			7,528,573
Transportation Insight, LLC(4)	Senior Secured First Lien		L + 525	(8)		6.82	%		09/2019		2,127,655		2,114,282			1.2			2,127,655
Zoom Information, Inc.(4)	Senior Secured First Lien		L + 600	(2) (9)		9.56	%		08/2022		9,000,000		8,774,982			5.3			9,180,000
											59,103,485		58,112,821			33.1			57,105,374
Technology Hardware & Equipment
Onvoy, LLC(4)	Senior Secured Second Lien		L + 1050	(2)		12.19	%		02/2025		2,635,052		2,518,250			1.3			2,307,906

See accompanying notes

16

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost		Percentage of Net Assets **			Fair Value
Transportation
Kenan Advantage Group, Inc.	Senior Secured First Lien		L + 300	(8)		4.57	%		07/2022	$	776,460	$	778,044		0.5	%	$	780,016
Pilot Air Freight, LLC(4)	Senior Secured First Lien		L + 525	(8)		6.82	%		10/2022		3,316,500		3,288,946		1.9			3,316,500
											4,092,960		4,066,990		2.4			4,096,516
Total Debt Investments United States										$	306,210,923	$	301,227,125		175.5	%	$	303,252,920
Equity Investments
Automobiles & Components
AP Centric(4) (10)	Common Stock										927		927,437		0.5			890,572
Capital Goods
Alion Science and Technology Corp.(4) (10)	Common Stock										535,714		535,714		0.2			425,403
Commercial & Professional Services
MHS Acquisition Holdings, LLC (4) (10)	Common Stock										891		890,485		0.4			646,655
TecoStar Holdings Inc.(4) (10)	Common Stock										500,000		500,000		0.3			500,000
Universal Services Equity Investments(4) (10)	Common Stock										1,000,000		1,000,000		1.1			1,823,696
USAGM HoldCo, LLC(4) (10)	Common Stock										238,095		238,095		0.2			434,213
											1,738,986		2,628,580		2.0			3,404,564
Health Care Equipment & Services
ExamWorks Group, Inc.(4) (10)	Common Stock										7,500		750,000		0.4			755,805
MDVIP, Inc.(4) (10)	Common Stock										46,807		666,667		0.4			666,667
											54,307		1,416,667		0.8			1,422,472
Insurance
Integro Equity(4) (10)	Common Stock										4,225		422,535		0.3			437,407
Media
Vivid Seats Ltd.(4) (10)	Common Stock										608,108		608,108		0.3			488,893
Vivid Seats Ltd.(4) (10)	Preferred Stock										1,891,892		1,891,892		1.1			2,011,108
											2,500,000		2,500,000		1.4			2,500,001
Software & Services
SMS Systems Maintenance Services, Inc.(4) (10)	Common Stock										1,142,789		1,144,520		0.3			552,848
Technology Hardware & Equipment
Onvoy, LLC(4) (10)	Common Stock, Class A										3,649		364,948		0.2			301,172
Onvoy, LLC(4) (10)	Common Stock, Class B										2,536		—		—			—
											6,185		364,948		0.2			301,172
Total Equity Investments United States										$	5,983,133	$	9,940,401		5.7	%	$	9,934,439
Total United States												$	311,167,526		181.2	%	$	313,187,359
France
Debt Investments
Technology Hardware & Equipment
Parkeon, Inc.(7)	Senior Secured First Lien		L + 575	(11)		5.75	%		04/2023	€	1,994,499		2,069,877		1.4			2,383,020
Total Debt Investments France										€	1,994,499	$	2,069,877		1.4	%	$	2,383,020
Total France												$	2,069,877		1.4	%	$	2,383,020
United Kingdom
Debt Investments
Software & Services
CB-SDG Limited(4) (7)	Senior Secured First Lien		L + 650, 0.5 PIK	%  (12)		7.50	%		07/2022	£	1,983,314		3,006,739		1.6			2,682,927
CB-SDG Limited(3) (4) (7)	Senior Secured First Lien		L + 650 0.5 PIK	%  (12)		7.00	%		07/2022		645,624		971,764		0.5			873,366
Total Debt Investments United Kingdom										£	2,628,938	$	3,978,503		2.1	%	$	3,556,293
Total United Kingdom												$	3,978,503		2.1	%	$	3,556,293
Total Investments												$	317,215,906		184.7	%	$	319,126,672

See accompanying notes

17

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2017

* The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) and which resets daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect at December 31, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.

** Percentage is based on net assets of $172,799,989 as of December 31, 2017.

(1) All positions held arenon-controlled/non-affiliated investments as defined by the Investment Company Act of 1940, as amended (“1940 Act”).Non-controlled/non-affiliated investments are investments that are neither controlled investments nor affiliated investments.

(2) The interest rate on these loans is subject to the greater of a LIBOR floor or 3 month LIBOR plus a base rate. The 3 month LIBOR as of December 31, 2017 was 1.69%. For some of these loans, the interest rate is based on the last reset date.

(3) Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. See Note 7 “Commitments and Contingencies”.

(4) The fair value of the investment was determined using significant unobservable inputs. See Note 2 “Summary of Significant Accounting Policies”.

(5) The negative cost, if applicable, is the result of the capitalized discount or unfunded commitment being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount or unfunded commitment on the loan.

(6) The interest rate on these loans is subject to the U.S. Prime rate, which as of December 31, 2017 was 4.50%.

(7) Investment is not a qualifying investment as defined under section 55 (a) of the Investment Company Act of 1940. Qualifying assets must represent at least 70% of total assets at the time of acquisition.

(8) The interest rate on these loans is subject to the greater of a LIBOR floor or 1 month LIBOR plus a base rate. The 1 month LIBOR as of December 31, 2017 was 1.56%. For some of these loans, the interest rate is based on the last reset date.

(9) These loans are firstlien/last-out term loans. In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders whereby the loan has been allocated to“first-out” and“last-out” tranches, whereby the“first-out” tranche will have priority as to the“last-out” tranche with respect to payments of principal, interest and any amounts due thereunder. The Company holds the“last-out” tranche.

(10) Non-income producing security.

(11) The interest rate on these loans is subject to the greater of a EURIBOR floor or 3 month EURIBOR plus a base rate. The 3 month EURIBOR as of December 31, 2017 was (0.33)%. For some of these loans, the interest rate is based on the last reset date.

(12) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 3 month GBP LIBOR plus a base rate. The 3 month GBP LIBOR as of December 31, 2017 was 0.52%. For some of these loans, the interest rate is based on the last reset date.

PIK PaymentIn-Kind

See accompanying notes

18

CRESCENT CAPITAL BDC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2018 (Unaudited)

Note 1. Organization and Basis of Presentation

Crescent Capital BDC, Inc. (the “Company”) was formed on February 5, 2015 (“Inception”) as a Delaware corporation structured as an externally managed,closed-end,non-diversified management investment company. The Company commenced investment operations on June 26, 2015 (“Commencement”). The Company has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

The Company is managed by CBDC Advisors, LLC (the “Advisor”), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended. CBDC Administration, LLC (the “Administrator”) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Advisor and Administrator along with the Company’s Board of Directors (the “Board”). The Advisor directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company’s investment assets to the Advisor. The Board consists of five directors, three of whom are independent.

On July 23, 2015, the Company formed CBDC Universal Equity, Inc., a wholly-owned subsidiary. This subsidiary allows the Company to hold equity securities of portfolio companies organized as a pass-through entity while continuing to satisfy the requirements of a RIC under the Code. On February 25, 2016, the Company formed Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned subsidiary. The financial statements of these two entities are consolidated into the financial statements of the Company. All intercompany balances and transactions have been eliminated.

The Company’s primary investment objective is to maximize the total return to the Company’s stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company will seek to achieve its investment objectives by investing primarily in secured debt (including senior secured, unitranche and second lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. The Company may purchase interests in loans or make debt investments, either (i) directly from its target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated“over-the-counter” market (i.e., broadly syndicated loans and bonds). Although the Company’s focus is to invest in private credit transactions, in certain circumstances it will also invest in broadly syndicated loans and bonds.

“Unitranche” loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. The term “mezzanine” refers to an investment in a company that, among other factors, includes debt that generally ranks senior to a borrower’s equity securities and junior in right of payment to such borrower’s other indebtedness. The Company may make multiple investments in the same portfolio company.

Basis of Presentation

The Company’s functional currency is the United States dollar and these consolidated financial statements have been prepared in that currency. The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to RegulationS-X.

Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form10-Q and Article 10 of RegulationS-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited interim financial results included herein contain all adjustments and reclassifications that are necessary for the fair presentation of consolidated financial statements for the periods included herein. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ended December 31, 2018.

19

The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946,Financial Services – Investment Companies.

Note 2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that may affect the amounts reported in the consolidated financial statements and accompanying notes. These consolidated financial statements reflect adjustments that in the opinion of management are necessary for the fair statement of the results for the periods presented. Although management believes that the estimates and assumptions are reasonable, changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially.

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits and highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments) with original maturities of three months or less. Cash and cash equivalents other than money market mutual funds, are carried at cost plus accrued interest, which approximates fair value. Money market mutual funds are carried at their net asset value, which approximates fair value. The Company deposits its cash and cash equivalents with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.

Investment Transactions

Investments purchased on a secondary market are recorded on the trade date. Loan originations are recorded on the date of the binding commitment. Realized gains or losses are recorded on the First In, First Out (“FIFO”) method as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized, and include investments written off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment fair values as of the last business day of the reporting period and also includes the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period.

Investment Valuation

Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Board, based on, among other things, the input of the Advisor, the Company’s Audit Committee and independent third-party valuation firms engaged at the direction of the Board.

The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following:

• The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.

• The Advisor’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee.

• The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.

• The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith based on, among other things, the input of the Advisor, Audit Committee and, where applicable, other third parties.

The Company applies Financial Accounting Standards Board ASC 820, Fair Value Measurement (ASC 820), as amended, which establishes a framework for measuring fair value in accordance with GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, the Company considers its principal market to be the market that has the greatest volume and level of activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in the determination of fair value. In accordance with ASC 820, these levels are summarized below:

20

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Investments in investment companies are valued at fair value. Fair values are generally determined utilizing the net asset value (“NAV”) supplied by, or on behalf of, management of each investment company, which is net of management and incentive fees or allocations charged by the investment company and is in accordance with the “practical expedient”, as defined by ASC 820. NAVs received by, or on behalf of, management of each investment company are based on the fair value of the investment company’s underlying investments in accordance with policies established by management of each investment company, as described in each of their financial statements and offering memorandum. Investments which are valued using NAV as a practical expedient are excluded from the above hierarchy.

The Company has invested in Great American Capital Partners II LP (“GACP II”) which is an investment company and measured using the net asset value per share as a practical expedient for fair value. GACP II has a fiscal year end as of December 31, and the Company accounts for its investments in GACP II using a three-month lag due to the timing of financial information received from the investments held by GACP II. The investment in GACP II is not redeemable. As of September 30, 2018 and December 31, 2017, the Company had an unfunded commitment to GACP II of $12,751,023 and $0, respectively.

In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various criteria in making the determination as to whether a particular investment would qualify for classification as a Level 2 or Level 3 investment. For example, the Company reviews pricing methodologies provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality. Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. During the nine months ended September 30, 2018, the Company recorded $0 in transfers from Level 3 to Level 2 and $27,967,138 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. During the nine months ended September 30, 2017, the Company recorded $0 in transfers from Level 3 to Level 2 and $0 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein. See Note 4. Investments and Note 5. Fair Value of Financial Instruments for additional information on the Company’s investment portfolio.

Foreign Currency

Foreign currency amounts are translated into U.S. dollars on the following basis:

• cash and cash equivalents, fair value of investments, outstanding debt on revolving credit facilities, other assets and liabilities: at the spot exchange rate on the last business day of the period; and

• purchases and sales of investments, borrowings and repayments of such borrowings, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Gains or losses on foreign currency transactions are included with net realized gain (loss) on foreign currency transactions on the Consolidated Statements of Operations. Fluctuations arising from the translation of foreign currency on investments and borrowings are included with net change in unrealized appreciation (depreciation) on investments and foreign currency translation on the Consolidated Statements of Operations.

21

The Company’s current approach to hedging the foreign currency exposure in itsnon-U.S. dollar denominated investments is primarily to borrow local currency under the Company’s revolving credit facility to partially or fully fund these investments.

Equity Offering and Organization Expenses

The Company has agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. To the extent such costs relate to equity offerings, these costs are charged as a reduction of capital upon the issuance of common shares. To the extent such costs relate to organization costs, these costs are expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Advisor is responsible for organization and private equity offerings costs in excess of $1.5 million. At the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. With the approval of the Commitment Period extension, the Advisor agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

Debt Issuance Costs

The Company records costs related to issuance of debt obligations as deferred financing costs. These costs are deferred and amortized using the effective yield method for revolving credit facilities, over the stated maturity life of the obligation. As of September 30, 2018 and December 31, 2017, there were $1,873,978 and $856,042, respectively, of deferred financing costs netted against debt balances on the Company’s Consolidated Statements of Assets and Liabilities.

Interest and Dividend Income Recognition

Interest income is recorded on an accrual basis and includes the amortization of purchase discounts and premiums. Discounts and premiums to par value on securities purchased are accreted or amortized into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income.

Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on theex-dividend date for publicly-traded portfolio companies.

Certain investments have contractualpayment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or cost basis of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed onnon-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed onnon-accrual status.

Loans are generally placed onnon-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed onnon-accrual status. Interest payments received onnon-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability.Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan onnon-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2018, the Company had one investment onnon-accrual status, which represented 2.9% and 2.3% of the total investments at cost and fair value, respectively. As of December 31, 2017, no loans had been placed onnon-accrual status by the Company.

Other Income

From time to time, the Company may receive fees for services provided to portfolio companies by the Advisor under the Investment Advisory Agreement. The fees for services that the Advisor provides vary by investment, but generally include syndication, structuring or diligence fees, and fees for providing managerial assistance to the portfolio companies. The Company may also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized; such amounts are accreted or amortized into income over the life of the loan. Fees for providing managerial assistance to the portfolio companies are generallynon-recurring and are recognized as revenue when services are provided.

In certain instances where the Company is invited to participate as aco-lender in a transaction and does not provide significant services in connection with the investment, all or a portion of any loan fees received by the Company in such situations will be deferred and amortized over the investment’s life using the effective yield method.

22

Income Taxes

The Company has elected to be treated as a BDC under the 1940 Act. The Company also has elected to be treated as a RIC under the Internal Revenue Code. So long as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are“more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to,on-going analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements.

The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of September 30, 2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending.

In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company will accrue excise tax on estimated undistributed taxable income as required. For the three and nine months ended September 30, 2018, the Company expensed an excise tax of $80 and $80, respectively, of which $0 remained payable. There were no excise tax expenses or payables for the three and nine months ended September 30, 2017.

CBDC Universal Equity, Inc. is a taxable entity (the “Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the three and nine months ended September 30, 2018, the Company recognized a benefit/(provision) for taxes on unrealized appreciation/(depreciation) on investments of $11,775 and $17,274 related to the Taxable Subsidiary. There is a corresponding deferred tax liability of $199,875 related to the Taxable Subsidiary as of September 30, 2018. For the three and nine months ended September 30, 2017, the Company recognized a benefit/(provision) for income taxes on unrealized appreciation/(depreciation) on investments of $(380,145) and $(380,145) related to the Taxable Subsidiary. There is a corresponding deferred tax liability of $380,145 related to the Taxable Subsidiary as of September 30, 2017.

Dividends and Distributions

Dividends and distributions to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions the Company declares in cash on behalf of the Company’s stockholders for those stockholders electing not to receive cash. As a result, if the Board authorizes, and the Company declares, a cash dividend, then the Company’s stockholders who have “opted in” to the Company’s dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividend.

23

New Accounting Standards

In May 2014, the FASB issued Accounting Standards Update (“ASU”)2014-09 (“ASU2014-09”), “Revenue from Contracts with Customers (Topic 606).” The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU2014-09 were effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. This standard did not have a material impact on the consolidated financial statements, primarily because the majority of the Company’s revenue is accounted for under FASB ASC Topic 320,“Investments – Debt and Equity Securities”, which is scoped out of this standard.

In August 2018, the FASB issued ASU2018-13 “Changes to the Disclosure for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance to the Company.

Note 3. Agreements and Related Party Transactions

Administration Agreement

On June 2, 2015, the Company entered into the Administration Agreement with the Administrator. Under the terms of the Administration Agreement, the Administrator provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Administrator under the terms of the Administration Agreement. In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to the Administrator. The Administration Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party.

For the three and nine months ended September 30, 2018, the Company incurred administrative services expenses of $161,148 and $491,240, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the Administration Agreement, of which $222,080 was payable at September 30, 2018. For the three and nine months ended September 30, 2017, the Company incurred administrative services expenses of $141,590 and $424,769, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the Administration Agreement, of which $146,754 was payable at September 30, 2017.

No person who is an officer, director or employee of the Administrator or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director. However, the Company reimburses the Administrator (or its affiliates) for an allocable portion of the compensation paid by the Administrator or its affiliates to the Company’s Chief Compliance Officer, Chief Financial Officer, and other professionals who spend time on such related activities (based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company). The allocable portion of the compensation for these officers and other professionals are included in the administration expenses paid to Administrator. Directors who are not affiliated with the Administrator or its affiliates receive compensation for their services and reimbursement of expenses incurred to attend meetings.

On June 5, 2015, the Company entered intosub-administration, accounting, transfer agent, and custodian agreements with State Street Bank and Trust Company (“SSB”) to perform certain administrative, custodian, transfer agent and other services on behalf of the Company. The sub-administration agreements with SSB have an initial term of three years ending June 5, 2018 and shall automatically renew for1-year terms unless a written notice ofnon-renewal is delivered by the Company or SSB. The Company does not reimburse the Administrator for any services for which it pays a separatesub-administrator and custodian fee to SSB. For the three and nine months ended September 30, 2018, the Company incurred expenses of $205,547 and $573,160, respectively, which is included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of thesub-administration agreements, of which $205,535 was payable at September 30, 2018. For the three and nine months ended September 30, 2017, the Company incurred expenses of $170,238 and $494,247, respectively, which is included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of thesub-administration agreements, of which $169,968 was payable at September 30, 2017.

24

Investment Advisory Agreement

On June 2, 2015, the Company entered into the Investment Advisory Agreement with the Advisor. Under the terms of the Investment Advisory Agreement, the Advisor will provide investment advisory services to the Company and its portfolio investments. The Advisor’s services under the Investment Advisory Agreement are not exclusive, and the Advisor is free to furnish similar or other services to others so long as its services to the Company are not impaired. Under the terms of the Investment Advisory Agreement, the Company will pay the Advisor the Base Management Fee, as discussed below, and may also pay certain Incentive Fees, as discussed below.

The Base Management Fee is calculated and payable quarterly in arrears at an annual rate of 1.5% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Base Management Fee is calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter.

The Advisor, however, has agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay the Company’s expenses) during any period prior to a qualified initial public offering, as defined by the Investment Advisory Agreement (“Qualified IPO”). The Advisor will not be permitted to recoup any waived amounts at any time and the waiver agreement may only be modified or terminated prior to a Qualified IPO with the approval of the Board. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper maturing within one year of purchase.

For the three and nine months ended September 30, 2018, the Company incurred management fees, which are net of waived amounts, of $888,973 and $2,421,971, respectively, of which $888,973 was payable at September 30, 2018. For the three and nine months ended September 30, 2017, the Company incurred management fees, which are net of waived amounts, of $710,176 and $1,982,695, respectively, of which $710,175 was payable at September 30, 2017.

The Advisor has voluntarily waived its right to receive management fees on the investment in GACP II for any period in which GACP II remains in the investment portfolio. For the three and nine months ended September 30, 2018, management fees of $21,884 and $31,934, respectively, were waived attributable to the Company’s investment in GACP II.

The Incentive Fees consists of two parts. The first part, the income incentive fee, is calculated and payable quarterly in arrears and (a) equals 100% of the excess of thepre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.5% per quarter (6% annualized) (the “Hurdle”), and acatch-up feature until the Advisor has received, (i) prior to a Qualified IPO, 15%, or (ii) after a Qualified IPO, 17.5%, of thepre-incentive fee net investment income for the current quarter up to, (i) prior to a Qualified IPO, 1.7647%, or (ii) after a Qualified IPO, 1.8182% (the“Catch-up”), and (b) (i) prior to a Qualified IPO, 15% or (ii) after a Qualified IPO, 17.5%, of all remainingpre-incentive fee net investment income above the“Catch-up.”

Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during each calendar quarter, minus operating expenses for such quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee).Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, OID, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash.Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.Pre-incentive fee net investment income will be compared to a “Hurdle Amount” equal to the product of (i) the Hurdle rate of 1.50% per quarter (6.00% annualized) and (ii) net assets (defined as total assets less indebtedness, before taking into account any incentive fees payable during the period), at the end of the immediately preceding calendar quarter, subject to a“catch-up” provision incurred at the end of each calendar quarter.

At the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the Commitment Period. The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. In exchange for the Commitment Period extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the income incentive fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

Upon a Qualified IPO and the Advisor begins to earn income incentive fees, the Advisor will voluntarily waive the income incentive fees attributable to the investment income accrued by the Company as a result of its investment in GACP II.

For the three and nine months ended September 30, 2018, the Company incurred income incentive fees, which are net of waived amounts, of $0 and $554,977, respectively, of which $0 was payable at September 30, 2018. For the three and nine months ended September 30, 2017, the Company incurred income incentive fees of $504,005 and $1,118,540, respectively, of which $504,005 was payable at September 30, 2017.

25

The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year (or upon a Qualified IPO or termination of the Investment Advisory Agreement), (i) prior to a Qualified IPO, 15.0%, or (ii) after a Qualified IPO, 17.5% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. If a Qualified IPO occurs on a date other than the first day of a calendar quarter, the income incentive fee shall be calculated for such calendar quarter at a weighted rate calculated based on the fee rates applicable before and after a Qualified IPO based on the number of days in such calendar quarter before and after a Qualified IPO. If a Qualified IPO occurs on a date other than the first day of a fiscal year, a capital gains incentive fee shall be calculated as of the day before the Qualified IPO, with such capital gains incentive fee paid to the Advisor following the end of the fiscal year in which the Qualified IPO occurred. For the avoidance of doubt, such capital gains incentive fee shall be equal to 15.0% of the Company’s realized capital gains on a cumulative basis from inception through the day before the Qualified IPO, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. Following a Qualified IPO, solely for the purposes of calculating the capital gains incentive fee, the Company will be deemed to have previously paid capital gains incentive fees prior to a Qualified IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to a Qualified IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15.0%. In the event that the Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee.

At the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the deadline to consummate a Qualified IPO (the “Qualified IPO Deadline”). The Qualified IPO Deadline was extended to June 30, 2022. In exchange for the Qualified IPO Deadline extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the capital gain incentive fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

No capital gains incentive fees were incurred for the nine months ended September 30, 2018 and 2017.

From time to time, the Advisor may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Advisor for such amounts paid on its behalf. Amounts payable to the Advisor are settled in the normal course of business without formal payment terms. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

A portion of the outstanding shares of the Company’s common stock are owned by Crescent Capital Group LP (“CCG LP”). CCG LP is also the majority member of the Advisor and sole member of the Administrator. The Company has entered into a license agreement with CCG LP under which CCG LP granted the Company anon-exclusive, royalty-free license to use the name “Crescent Capital”. The Advisor has entered into a resource sharing agreement with CCG LP. CCG LP will provide the Advisor with the resources necessary for the Advisor to fulfill its obligations under the Investment Advisory Agreement.

Directors’ Fees

Each of the Company’s independent directors receive (i) an annual fee of $75,000, and (ii) $2,500 plus reimbursement of reasonableout-of-pocket expenses incurred in connection with attending each regular Board meeting and $500 each special meeting. The Company’s independent directors also receive $1,000 plus reimbursement of reasonableout-of-pocket expenses incurred in connection with each committee meeting attended. The Chairman of the Audit Committee receives an additional annual fee of $7,500. The Chairperson of the Nominating and Corporate Governance Committee and the Compensation Committee receive an additional annual fee of $2,500 and $2,500, respectively. The Company has obtained directors’ and officers’ liability insurance on behalf of the Company’s directors and officers. For the three and nine months ended September 30, 2018, the Company recorded directors’ fees of $72,500 and $217,500, respectively, of which $61,813 was payable at September 30, 2018. For the three and nine months ended September 30, 2017, the Company recorded directors’ fees of $72,500 and $217,500, respectively, of which $52,188 was payable at September 30, 2017.

Note 4. Investments

The Company’s investments at any time may include securities and other financial instruments or other assets of any sort, including, without limitation, corporate and government bonds, convertible securities, collateralized loan obligations, term loans, trade claims, equity securities, privately negotiated securities, direct placements, working interests, warrants and investment derivatives (including, but not limited to credit default swaps, recovery swaps, total return swaps, options, forward contracts, and futures) (all of the foregoing collectively referred to in these consolidated financial statements as “investments”).

Under the 1940 Act, the Company is required to separately identifynon-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “controlled” companies. Detailed information with respect to the Company’snon-controlled,non-affiliated;non-controlled, affiliated; and controlled affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedule of Investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they arenon-controllednon-affiliated,non-controlled affiliated or controlled affiliated investments. As of September 30, 2018 and December 31, 2017, all investments held arenon-controlled/non-affiliated investments.

26

Certain Risk Factors

In the ordinary course of business, the Company manages a variety of risks including market risk and liquidity risk. The Company identifies, measures and monitors risk through various control mechanisms, including trading limits and diversifying exposures and activities across a variety of instruments, markets and counterparties.

Market risk is the risk of potential adverse changes to the value of financial instruments because of changes in market conditions, including as a result of changes in the credit quality of a particular issuer, credit spreads, interest rates, and other movements and volatility in security prices or commodities. In particular, the Company may invest in issuers that are experiencing or have experienced financial or business difficulties (including difficulties resulting from the initiation or prospect of significant litigation or bankruptcy proceedings), which involves significant risks. The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques.

The Company’s investments may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Investments at fair value consisted of the following at September 30, 2018 and December 31, 2017:

Investment Type	Cost		Fair Value		Unrealized Appreciation/ (Depreciation)
Senior Secured First Lien	$	342,519,150	$	344,905,292	$	2,386,142
Senior Secured Second Lien		75,894,677		73,301,537		(2,593,140	)
Unsecured Debt		7,192,485		7,239,988		47,503
Preferred Stock		1,891,892		2,203,059		311,167
Common Stock & Other		22,199,740		22,129,640		(70,100	)
Total Investments	$	449,697,944	$	449,779,516	$	81,572

Investment Type	Cost		Fair Value		Unrealized Appreciation/ (Depreciation)
Senior Secured First Lien	$	230,985,313	$	233,486,423	$	2,501,110
Senior Secured Second Lien		70,727,664		70,064,245		(663,419	)
Unsecured Debt		5,562,528		5,641,565		79,037
Preferred Stock		1,891,892		2,011,108		119,216
Common Stock & Other		8,048,509		7,923,331		(125,178	)
Total Investments	$	317,215,906	$	319,126,672	$	1,910,766

The industry composition of investments at fair value at September 30, 2018 and December 31, 2017 is as follows:

Industry	Fair Value		Percentage of Fair Value			Fair Value		Percentage of Fair Value
Automobiles & Components	$	28,046,036		6.24	%	$	18,849,183		5.91	%
Capital Goods		17,583,723		3.90			17,096,221		5.36
Commercial & Professional Services		97,921,096		21.77			70,309,935		22.03
Consumer Durables & Apparel		5,531,250		1.23			3,030,000		0.95
Consumer Services		65,171,033		14.49			32,380,725		10.15
Diversified Financials		25,442,623		5.66			3,531,247		1.11
Energy		320,766		0.07			311,446		0.10
Food & Staples Retailing		6,929,781		1.54			7,337,663		2.30
Food, Beverage & Tobacco		—		—			736,837		0.23
Health Care Equipment & Services		81,071,659		18.02			72,937,130		22.85
Household & Personal Products		3,179,348		0.71			2,225,440		0.70
Insurance		4,347,736		0.97			3,659,282		1.15
Materials		3,454,295		0.77			2,669,277		0.84
Media		4,447,828		0.99			5,994,211		1.88
Pharmaceuticals, Biotechnology & Life Sciences		8,237,489		1.83			—		—
Real Estate		—		—			426,596		0.13
Retailing		18,549,177		4.12			7,328,350		2.29
Software & Services		67,909,467		15.10			61,214,515		19.18
Technology Hardware & Equipment		4,926,419		1.10			4,992,098		1.56
Transportation		6,709,790		1.49			4,096,516		1.28
Total Investments	$	449,779,516		100.00	%	$	319,126,672		100.00	%

27

The geographic composition of investments at fair value at September 30, 2018 and December 31, 2017 is as follows:

Geographic Region	Fair Value		Percentage of Fair Value			Fair Value		Percentage of Fair Value
United States	$	443,863,337		98.68	%	$	313,187,359		98.14	%
United Kingdom		3,600,542		0.80			3,556,293		1.11
France		2,315,637		0.52			2,383,020		0.75
Total Investments	$	449,779,516		100.00	%	$	319,126,672		100.00	%

Note 5. Fair Value of Financial Instruments

Investments

The following table presents fair value measurements of investments as of September 30, 2018:

Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total
Senior Secured First Lien	$	—	$	61,825,340	$	283,079,952	$	344,905,292
Senior Secured Second Lien		—		17,593,138		55,708,399		73,301,537
Unsecured Debt		—		—		7,239,988		7,239,988
Preferred Stock		—		—		2,203,059		2,203,059
Common Stock		—		—		9,727,287		9,727,287
Subtotal	$	—	$	79,418,478	$	357,958,685	$	437,377,163
Investment Measured at NAV(1)								12,402,353
Total Investments							$	449,779,516

(1) In accordance with ASC820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

The following table presents fair value measurements of investments as of December 31, 2017:

Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total
Senior Secured First Lien	$	—	$	79,571,639	$	153,914,784	$	233,486,423
Senior Secured Second Lien		—		23,432,543		46,631,702		70,064,245
Unsecured Debt		—		—		5,641,565		5,641,565
Preferred Stock		—		—		2,011,108		2,011,108
Common Stock		—		—		7,923,331		7,923,331
Total Investments	$	—	$	103,004,182	$	216,122,490	$	319,126,672

28

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2018 based off of the fair value hierarchy at September 30, 2018:

	Senior			Senior
	Secured			Secured			Unsecured			Preferred		Common
	First Lien			Second Lien			Debt			Stock		Stock			Total
Balance as of January 1, 2018	$	153,914,784		$	46,631,702		$	5,641,565		$	2,011,108	$	7,923,331		$	216,122,490
Amortized discounts/premiums		795,904			243,015			16,164			-		-			1,055,083
Paidin-kind interest		133,635			-			76,807			-		-			210,442
Net realized gain (loss)		(85,063	)		(6,245	)		-			-		-			(91,308	)
Net change in unrealized appreciation (depreciation)		1,043,369			(1,929,108	)		(31,533	)		191,951		(98,296	)		(823,617	)
Purchases		162,306,959			14,933,301			1,536,985			-		1,902,252			180,679,497
Sales/return of capital/principal repayments/paydowns		(51,508,793	)		(15,652,247	)		-			-		-			(67,161,040	)
Transfers in		16,479,157			11,487,981			-			-		-			27,967,138
Transfers out		-			-			-			-		-			-
Balance as of September 30, 2018	$	283,079,952		$	55,708,399		$	7,239,988		$	2,203,059	$	9,727,287		$	357,958,685
Net change in unrealized appreciation (depreci\ation) from investments still held as of September 30, 2018	$	1,899,971		$	(1,837,606	)	$	(31,533	)	$	191,951	$	(98,296	)	$	124,487

During the nine months ended September 30, 2018, the Company recorded $0 in transfers from Level 3 to Level 2 and $27,967,138 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data.

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2017, based off of the fair value hierarchy at September 30, 2017:

	Senior			Senior
	Secured			Secured			Unsecured			Preferred		Common
	First Lien			Second Lien			Debt			Stock		Stock			Total
Balance as of January 1, 2017	$	65,399,107		$	21,353,680		$	4,950,000		$	-	$	3,943,634		$	95,646,421
Amortized discounts/premiums		225,371			78,638			13,368			-		-			317,377
Paidin-kind interest		4,405			-			38,078			-		-			42,483
Net realized gain (loss)		19,060			51,847			19			-		-			70,926
Net change in unrealized appreciation (depreciation)		1,968,119			440,031			(96,825	)		59,608		715,960			3,086,893
Purchases		71,189,955			23,614,442			618,473			1,891,892		4,327,003			101,641,765
Sales/return of capital/principal repayments/paydowns		(10,909,433	)		(1,976,508	)		(988	)		-		(876,504	)		(13,763,433	)
Transfers in		-			-			-			-		-			-
Transfers out		-			-			-			-		-			-
Balance as of September 30, 2017	$	127,896,584		$	43,562,130		$	5,522,125		$	1,951,500	$	8,110,093		$	187,042,432
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2017	$	2,113,471		$	457,930		$	(96,825	)	$	59,608	$	715,960		$	3,250,144

During the nine months ended September 30, 2017, the Company recorded $0 in transfers from Level 3 to Level 2 and $0 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data.

The following tables present the fair value of Level 3 investments and the ranges of significant unobservable inputs used to value the Company’s Level 3 investments as of September 30, 2018 and December 31, 2017. These ranges represent the significant unobservable inputs that were used in the valuation of each type of investment. These inputs are not representative of the inputs that could have been used in the valuation of any one investment. For example, the highest market yield presented in the table for senior secured first lien investments is appropriate for valuing a specific investment but may not be appropriate for valuing any other investment. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 investments.

29

Quantitative information about Level 3 Fair Value Measurements
	Fair value as of September 30, 2018	Valuation Techniques	Unobservable Input	Range   (Weighted Average)
Senior Secured First Lien	$232,115,958	Discounted Cash Flows	Discount Rate	0.0%-13.2%(8.2%)
	$50,963,994	Broker Quoted	Broker Quote	N/A
Senior Secured Second Lien	$47,366,602	Discounted Cash Flows	Discount Rate	7.2%-17.3%(12.4%)
	$8,341,797	Broker Quoted	Broker Quote	N/A
Unsecured Debt	$7,239,988	Discounted Cash Flows	Discount Rate	11.0%-16.6%(11.5%)
Preferred Stock	$2,203,059	Market Multiple	Comparable EBITDA Multiple	16.2x
Common Stock	$9,727,287	Market Multiple	Comparable EBITDA Multiple	7.5x-16.2x(12.7x)
Quantitative information about Level 3 Fair Value Measurements
	Fair value as of December 31, 2017	Valuation Techniques	Unobservable Input	Range   (Weighted Average)
Senior Secured First Lien	$153,914,784	Discounted Cash Flows	Discount Rate	5.6%-9.5%(6.9%)
Senior Secured Second Lien	$46,631,702	Discounted Cash Flows	Discount Rate	8.0%-14.3%(11.0%)
Unsecured Debt	$5,641,565	Discounted Cash Flows	Discount Rate	11.0%-14.9%(11.4%)
Preferred Stock	$2,011,108	Market Multiple	Comparable EBITDA Multiple	15.8x
Common Stock	$7,923,331	Market Multiple	Comparable EBITDA Multiple	7.4x-15.8x(11.7x)

As noted above, the discounted cash flows and market multiple approaches were used in the determination of fair value of certain Level 3 assets as of September 30, 2018 and December 31, 2017. The significant unobservable inputs used in the discounted cash flow approach is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate would result in a decrease in the fair value. Included in the consideration and selection of discount rates is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market multiple approach are the multiples of similar companies’ earnings before income taxes, depreciation and amortization (“EBITDA”) and comparable market transactions. Increases or decreases in market EBITDA multiples would result in an increase or decrease in the fair value.

Financial Instruments Not Carried at Fair Value

Debt

The carrying value of the Company’s debt, as of September 30, 2018 and December 31, 2017, approximates its fair value as the debt, issued at market terms, includes variable interest rates, as discussed in Note 6.

30

Note 6. Debt

Debt consisted of the following as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Aggregate Principal		Drawn		Amount		Carrying
	Amount Committed		Amount(4)		Available (1)		Value (2)
SPV Asset Facility	$	175,000,000	$	119,828,575	$	55,171,425	$	119,828,575
Revolving Credit Facility		-		-		-		-
Revolving Credit Facility II(3)(5)		85,000,000		85,109,591		376,951		84,683,490
Total Debt	$	260,000,000	$	204,938,166	$	55,548,376	$	204,512,065
	December 31, 2017
	Aggregate Principal		Drawn		Amount		Carrying
	Amount Committed		Amount(4)		Available (1)		Value (2)
SPV Asset Facility	$	125,000,000	$	86,628,575	$	38,371,425	$	86,628,575
Revolving Credit Facility		-		-		-		-
Revolving Credit Facility II(3)(5)		75,000,000		65,309,591		9,955,454		65,075,395
Total Debt	$	200,000,000	$	151,938,166	$	48,326,879	$	151,703,970

(1) The amount available reflects any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments.

(2) The difference between drawn amount and the carrying value is attributable to the effect of foreign currency translation adjustments.

(3) The Company had outstanding debt denominated in Pound Sterling (GBP) of 2.5 million and Euro (EUR) of 1.8 million on its Revolving Credit Facility and Revolving Credit Facility II.

(4) For borrowings innon-USD, the drawn amount represents the USD equivalent at the time of borrowing (i.e. cost).

(5) Total drawn amount payable after the effect of foreign currency translation as of September 30, 2018 and December 31, 2017, was $84,623,049 and $65,044,546, respectively.

As of September 30, 2018 and December 31, 2017, the Company was in compliance with the terms and covenants of its debt arrangements.

SPV Asset Facility

On March 28, 2016 Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned and consolidated subsidiary of the Company, entered into a loan and security agreement (the “SPV Asset Facility”) with the Company as the collateral manager, seller and equityholder, CBDC SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. The SPV Asset Facility is effective as of March 28, 2016. On February 8, 2017, the Company amended the SPV Asset Facility increasing the facility limit from $75 million to $125 million. On September 28, 2018, the Company further amended the SPV Asset Facility increasing the facility limit from $125 million to $175 million and extending the maturity date to September 28, 2021.

The maximum commitment amount under the SPV Asset Facility is $175 million, and may be increased with the consent of Wells Fargo or reduced upon request of the Company. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to the Company in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of: (a) the date the Borrower voluntarily reduces the commitments to zero, (b) the Facility Maturity Date (September 28, 2021) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Also on March 28, 2016, the Company, as Seller, and CBDC SPV, as Purchaser, entered into a loan sale agreement whereby the Company will sell certain assets to CBDC SPV. CBDC SPV will be consolidated into the Company’s financial statements and no gain or loss is expected to result from the sale of assets to CBDC SPV. The Company retains a residual interest in assets contributed to or acquired by CBDC SPV through its 100% ownership of CBDC SPV. The facility size is subject to availability under the borrowing base, which is based on the amount of CBDC SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits.

31

Costs incurred in connection with obtaining the SPV Asset Facility have been recorded as deferred financing costs and are being amortized over the life of the SPV Asset Facility on an effective yield basis. As of September 30, 2018 and December 31, 2017, deferred financing costs related to the SPV Asset Facility were $1,784,971 and $776,117, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities.

Revolving Credit Facility II

On June 29, 2017, the Company entered into the “Revolving Credit Facility II” with Capital One, National Association (“CONA”), as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender. Proceeds from the Revolving Credit Facility II may be used for investment activities, expenses, working capital requirements and general corporate purposes. The Company’s obligations to the Committed Lender are secured by a first priority security interest in the unused capital commitments (See Note 7. Commitments, Contingencies and Indemnifications) and certain investments and cash held by the Company. The Revolving Credit Facility II contains certain covenants, including, but not limited to maintaining an asset coverage ratio of total assets to total borrowings of at least 2 to 1. The maximum principal amount of the Revolving Credit Facility II is $75 million, subject to availability under the borrowing base.

Borrowings under the Revolving Credit Facility II bear interest at the London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company may elect either the LIBOR or prime rate at the time of draw-down, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company pays unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility II. Interest is payable monthly in arrears. On June 28, 2018, the Company amended the Revolving Credit Facility II increasing the facility limit from $75 million to $85 million and extending the maturity date to June 29, 2019. Any amounts borrowed under the Revolving Credit Facility II, and all accrued and unpaid interest, will be due and payable, on June 29, 2019.

Costs incurred in connection with obtaining the Revolving Credit Facility II have been recorded as deferred financing costs and are being amortized over the life of the Revolving Credit Facility II on an effective yield basis. As of September 30, 2018 and December 31, 2017, deferred financing costs related to the Revolving Credit Facility II were $89,007 and $79,925, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities.

Revolving Credit Facility

On June 29, 2015, the Company entered into the “Revolving Credit Facility” with Natixis, New York Branch (“Natixis”), as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The Company’s obligations to the lenders are secured by a first priority security interest in the unused capital commitments (See Note 7. Commitments, Contingencies and Indemnifications) and certain investments and cash held by the Company. The Revolving Credit Facility contains certain covenants, including, but not limited to maintaining an asset coverage ratio of total assets to total borrowings of at least 2 to 1. The maximum principal amount of the Revolving Credit Facility is $75 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

Borrowings under the Revolving Credit Facility bore interest at either (i) London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor or (ii) at lenders’ cost of funds plus a margin. The Company paid unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility. Interest was payable monthly in arrears.

The summary information regarding the SPV Asset Facility, Revolving Credit Facility, and the Revolving Credit Facility II for the three and nine months ended September 30, 2018 and 2017 were as follows:

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Borrowing interest expense	$	1,958,201		$	1,152,097		$	5,065,592		$	3,012,006
Facility fees		24,401			64,630			133,117			172,197
Amortization of financing costs		192,600			199,398			584,661			568,144
Total	$	2,175,202		$	1,416,125		$	5,783,370		$	3,752,347
Weighted average interest rate		4.08	%		3.27	%		3.99	%		3.16	%
Average outstanding balance	$	190,528,564		$	139,727,139		$	169,851,030		$	127,512,491

32

Note 7. Commitments, Contingencies and Indemnifications

The Company’s investment portfolio may contain debt investments that are in the form of lines of credit and unfunded delayed draw commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of September 30, 2018 and December 31, 2017, the Company had unfunded commitments denominated in USD totaling $50,359,800 and $21,116,031, respectively, under loan and financing agreements. The Company also had outstanding an unfunded commitment denominated in GBP totaling £251,138 and £377,841 at September 30, 2018 and December 31, 2017, respectively.

Other Commitments and Contingencies

As of September 30, 2018, the Company had $394.3 million in total capital commitments from investors. Of this amount, $10.0 million was from Crescent Capital Group LP (“CCG LP”) and its affiliates. The remaining unfunded capital commitments totaled $163.3 million as of September 30, 2018.

Up to June 25, 2015, the Company’s efforts had been limited to organizational activities, the cost of which has been borne by the Advisor. The Company has agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment. The Advisor incurred costs on behalf of the Company of $794,450 of equity offering costs and $567,895 of organization costs through Commencement. For the nine months ended September 30, 2018, the Advisor allocated to the Company $136,191 of equity offering costs and $97,354 of organization costs, of which $97,310 was included in Due to Advisor on the Consolidated Statements of Assets and Liabilities at September 30, 2018. Since June 26, 2015 (Commencement) through September 30, 2018, the Advisor has allocated to the Company $524,337 of equity offering costs and $374,811 of organization costs.

In the normal course of business, the Company enters into contracts which provide a variety of representations and warranties, and that provide general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements is unknown as it would involve future claims that may be made against the Company; however, based on the Company’s experience, the risk of loss is remote and no such claims are expected to occur. As such, the Company has not accrued any liability in connection with such indemnifications.

Note 8. Stockholders’ Equity

Since commencement, the Company has entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP and its affiliates, providing for the private placement of the Company’s common stock. Under the terms of the Subscription Agreements, investors are required to fund capital drawdowns to purchase the Company’s common stock up to the amount of their respective capital commitments on anas-needed basis as determined by the Company with a minimum of 10 business days’ prior notice. The remaining unfunded capital commitments related to these Subscription Agreements totaled $163.3 million and $220.7 million as of September 30, 2018 and December 31, 2017, respectively.

The following table summarizes the total shares issued and amount received related to capital drawdowns delivered pursuant to the Subscription Agreements during the nine months ended September 30, 2018 and 2017:

	For the nine months ended                  September 30, 2018
Quarter Ended	Shares		Amount
September 30, 2018		1,249,626	$	25,000,000
June 30, 2018		991,916		20,000,000
March 31, 2018		741,876		15,000,000
Total Capital Drawdowns		2,983,418	$	60,000,000
	For the nine months ended September 30, 2017
Quarter Ended	Shares		Amount
September 30, 2017		488,138	$	10,000,000
June 30, 2017		490,701		10,000,000
March 31, 2017		744,085		15,000,000
Total Capital Drawdowns		1,722,924	$	35,000,000

33

Prior to the listing of the Company’s shares on an exchange, stockholders who “opt in” to the Company’s dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of the Company’s common stock, rather than receiving cash dividends and distributions. The number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the cash dividend or distribution payable to a stockholder by the net asset value per share of the common stock as of the last day of the Company’s fiscal quarter or such other date and price per share as determined by the Board preceding the date such dividend was declared.

The Company has authorized 200,000,000 shares of its common stock with a par value of $0.001 per share. The Company has authorized 10,000 shares of its preferred stock with a par value of $0.001 per share. Shares of preferred stock have not been issued. On February 5, 2015, the Company issued 1,000 common shares to CCG LP. On April 15, 2015, CCG LP contributed $499,000 of additionalpaid-in-capital to the Company. On June 29, 2015, CCG LP exchanged its 1,000 shares issued on February 5, 2015 for 25,000 common shares, which were subsequently redeemed on June 30, 2015.

At September 30, 2018 and December 31, 2017, CCG LP and its affiliates owned 2.57% and 3.32%, respectively, of the outstanding common shares of the Company.

For the nine months ended September 30, 2018, distributions made by the Company are as follows:

Quarter Ended	Total Amount		Per Share Amount
September 30, 2018	$	4,464,639	$	0.38
June 30, 2018	$	3,876,874	$	0.37
March 31, 2018	$	3,035,614	$	0.32

For the nine months ended September 30, 2017, distributions made by the Company are as follows:

Quarter Ended	Total Amount		Per Share Amount
September 30, 2017	$	2,470,579	$	0.30
June 30, 2017	$	2,169,823	$	0.29
March 31, 2017	$	1,994,047	$	0.28

Note 9. Earnings Per Share

In accordance with the provisions of ASC Topic 260 –Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of September 30, 2018 and December 31, 2017, there are no dilutive shares.

The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the following periods:

	For the three months ended September 30,				For the nine months ended September 30,
	2018		2017		2018		2017
Net increase (decrease) in net assets resulting from operations	$	4,804,187	$	2,351,012	$	9,921,122	$	8,857,866
Weighted average common shares outstanding		11,394,307		7,848,043		10,043,636		7,349,165
Net increase (decrease) in net assets resulting from operations per common share-basic and diluted	$	0.42	$	0.30	$	0.99	$	1.21

34

Note 10. Income Taxes

As of September 30, 2018, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was:

Tax cost	$	449,705,259
Gross unrealized appreciation	$	8,632,305
Gross unrealized depreciation		(8,558,048	)
Net unrealized investment appreciation	$	74,257

As of December 31, 2017, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was:

Tax cost	$	317,447,028
Gross unrealized appreciation	$	5,965,295
Gross unrealized depreciation		(4,285,767	)
Net unrealized investment appreciation	$	1,679,528

Note 11. Financial Highlights

Below is the schedule of financial highlights of the Company for the nine months ended September 30, 2018 and 2017, relating to the common shares issued through September 30, 2018 and 2017 pursuant to the Subscription Agreements:

	For the nine months ended September 30, 2018			For the nine months ended September 30, 2017
Per Share Data:(1)
Net asset value, beginning of period	$	20.10		$	20.08
Net investment income after tax		1.17			0.96
Net realized and unrealized gains (losses) on investments(2)		(0.20	)		0.25
Net increase (decrease) in net assets resulting from operations		0.97			1.21
Distributions declared from net investment income(3)		(1.08	)		(0.87	)
Offering costs		(0.02	)		(0.02	)
Total increase (decrease) in net assets		(0.13	)		0.32
Net asset value, end of period	$	19.97		$	20.40
Shares outstanding, end of period		11,599,480			8,102,916
Weighted average shares outstanding		10,043,636			7,349,165
Total return(4)(5)		6.32	%		7.85	%
Ratio/Supplemental Data:
Net assets, end of period	$	231,588,668		$	165,263,435
Ratio of total expenses to average net assets(6)(7)		7.39	%		7.97	%
Ratio of expenses (without incentive fees and interest and other debt expenses) to average net assets(6)		3.13	%		3.60	%
Ratio of net investment income to average net assets(6)		7.93	%		6.34	%
Ratio of interest and credit facility expenses to average net assets(5)		3.89	%		3.37	%
Ratio of incentive fees to average net assets(5)		0.37	%		1.00	%
Portfolio turnover rate(8)		21.92	%		15.88	%
Asset coverage ratio(9)		2.12			2.18

⁽¹⁾  Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.

35

⁽²⁾  The amount shown does not correspond with the aggregate realized and unrealized gains (losses) on investment transactions for the period as it includes the effect of the timing of equity issuances.

⁽³⁾  The per share data for distributions per share reflects the actual amount of distributions declared per share for the applicable period.

⁽⁴⁾  Total return based on net asset value is calculated as the change in net asset value per share during the period plus declared dividends per share during the period, divided by the beginning net asset value per share.

⁽⁵⁾  Annualized.

⁽⁶⁾  Annualized except for organization expenses.

⁽⁷⁾  The ratio of total expenses to average net assets in the table above reflects the Advisor’s voluntary waivers of its right to receive a portion of the management fees and income incentive fees with respect to the Company’s ownership in GACP II. Excluding the effects of waivers, the ratio of total expenses to average net assets would have been 7.42% for the nine months ended September 30, 2018.The GACP II investment was made in 2018, and as such, the 2017 ratios were not affected.

⁽⁸⁾  Not annualized.

⁽⁹⁾  Asset coverage ratio is equal to (i) the sum of (A) net assets at end of period and (B) total debt outstanding at end of period, divided by (ii) total debt outstanding at the end of the period.

Note 12. Subsequent Events

The Company’s management evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than the item below, there has been no subsequent events that occurred during such period that would require disclosure in this Form10-Q or would be required to be recognized in the consolidated financial statements as of September 30, 2018 and for the nine months ended September 30, 2018.

The Company issued common shares and received gross proceeds of approximately $20 million subsequent to September 30, 2018.

36

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information contained in this section should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward Looking Statements” set forth on page 1 of this Quarterly Reporton Form 10-Q. In this report, “we,” “us,” “our” and “Company” refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries.

OVERVIEW

We are a specialty finance company focused on lending to middle-market companies and are incorporated under the laws of the State of Delaware on February 5, 2015 (Inception). We have elected to be treated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code). As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income andtax-exempt interest.

The Company is managed by CBDC Advisors, LLC (the “Advisor”), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940. CBDC Administration, LLC (the “Administrator”) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Advisor and Administrator along with the Company’s Board of Directors (the “Board”). The Advisor directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company’s investment assets to the Advisor. The Board consists of five directors, three of whom are independent.

The Company’s primary investment objective is to maximize the total return to the Company’s stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company seeks to achieve its investment objectives by investing primarily in secured debt (including senior secured first-lien, unitranche and senior secured second-lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from its target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated“over-the-counter” market (i.e., broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, broadly syndicated loans and bonds are generally more liquid than and complement our private credit transactions.

“Unitranche” loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. The term “mezzanine” refers to an investment in a company that, among other factors, includes debt that generally ranks senior to a borrower’s equity securities and junior in right of payment to such borrower’s other indebtedness. The Company may make multiple investments in the same portfolio company. From February 5, 2015 (Inception) through June 25, 2015, the Company devoted substantially all of its efforts to establishing the business and raising capital commitments from private investors. On June 26, 2015, the Company entered into subscription agreements with several investors, including Crescent Capital Group LP and its affiliates (CCG LP), providing for the private placement of the Company’s common stock. The Company commenced investment operations on June 26, 2015 (Commencement).

KEY COMPONENTS OF OPERATIONS

Investments

We expect our investment activity to vary substantially from period to period depending on many factors, the general economic environment, the amount of capital we have available to us, the level of merger and acquisition activity for middle-market companies, including the amount of debt and equity capital available to such companies and the competitive environment for the type of investments we make. In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors.

37

We must not invest in any assets other than “qualifying assets” specified in the 1940 Act, unless, at the time the investments are made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the SEC, “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

The Investment Advisor

Our investment activities are managed by the Advisor, which will be responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Advisor has entered into a Resource Sharing Agreement (the “Resource Sharing Agreement”) with Crescent Capital Group LP (“CCG LP”), pursuant to which CCG LP will provide the Advisor with experienced investment professionals (including the members of the Advisor’s investment committee) and access to the resources of CCG LP so as to enable the Advisor to fulfill its obligations under the Investment Advisory Agreement. Through the Resource Sharing Agreement, the Advisor intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of CCG LP’s investment professionals.

In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) that date of an initial public offering of the Company’s common stock that results in an unaffiliated public float of at least the lower of (i) $75 million and (ii) 15% of the aggregate capital commitments received by the Company prior to the date of such initial public offering (a “Qualified IPO”) and (ii) June 30, 2020. In exchange for the Commitment Period extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the Income Incentive Fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

Revenues

We generate revenue primarily in the form of interest income on debt investments and, to a lesser extent, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable.

Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on theex-dividend date for publicly-traded portfolio companies.

In addition, we may receive fees for services provided to portfolio companies by the Advisor under the Investment Advisory Agreement. The services that the Advisor provides vary by investment, but generally include syndication, structuring or diligence fees, and fees for providing managerial assistance to our portfolio companies. We also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into income over the life of the loan. Fees for providing managerial assistance to our portfolio companies are generallynon-recurring and are recognized as revenue when services are provided. In certain instances where the Company is invited to participate as aco-lender in a transaction and does not provide significant services in connection with the investment, all or a portion of any loan fees received by the Company in such situations will be deferred and amortized over the investment’s life using the effective yield method.

Expenses

Our primary operating expenses include the payment of Management fees and Incentive fees to the Advisor under the Investment Advisory Agreement, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with oursub-administration, custodian and transfer agent agreements with State Street Bank and Trust Company (the“Sub-Administration Agreements”) and other operating costs described below. The Management and Incentive fees compensate our investment adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all otherout-of-pocket costs and expenses of our operations and transactions, including:

• allocated organization costs from the Advisor incurred prior to the commencement of our operations up to a maximum of $1.5 million;

38

• the cost of calculating our net asset value, including the cost of any third-party valuation services;

• fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;

• direct costs, such as printing, mailing, long distance telephone and staff;

• fees and expenses associated with independent audits and outside legal costs;

• independent directors’ fees and expenses;

• administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, rent and the allocable portion of the cost of certain professional services provided to the Company, including but not limited to, our chief compliance officer, chief financial officer and their respective staffs);

• U.S. federal, state and local taxes;

• the cost of effecting sales and repurchases of shares of our common stock and other securities;

• fees payable to third parties relating to making investments, includingout-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments;

• out-of-pocket fees and expenses associated with marketing efforts;

• federal and state registration fees and any stock exchange listing fees;

• brokerage commissions;

• costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws;

• debt service and other costs of borrowings or other financing arrangements; and

• all other expenses reasonably incurred by us in connection with making investments and administering our business.

We have agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment. The Advisor has agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. The Advisor is responsible for organization and private equity offerings costs in excess of $1.5 million.

We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines. Incentive Fees and costs relating to future offerings of securities would be incremental.

Leverage

Our financing facilities allow us to borrow money and lever our investment portfolio, subject to the limitations of the 1940 Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our stockholders. The use of leverage involves significant risks. As a BDC, with certain limited exceptions, we will only be permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 2 to 1 after such borrowing. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ will depend on our Advisor’s and our Board assessment of market conditions and other factors at the time of any proposed borrowing.

39

PORTFOLIO INVESTMENT ACTIVITY

We seek to create a broad and varied portfolio that generally includes senior secured first-lien, unitranche, senior secured second lien and subordinated loans and minority equity securities of U.S. middle market companies. The size of our individual investments will vary proportionately with the size of our capital base. We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities have speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity.

As of September 30, 2018 and December 31, 2017, our portfolio at fair value was comprised of the following:

	September 30, 2018				December 31, 2017
($ in millions)	Fair Value (1)		Percentage		Fair Value (1)		Percentage
Senior secured first-lien	$	260.1		57.8%	$	191.0		59.8%
Unitranche		84.9		18.9		42.5		13.3
Senior secured second-lien		73.3		16.3		70.1		22.0
Unsecured		7.2		1.6		5.6		1.8
Equity & Other		24.3		5.4		9.9		3.1
Total investments	$	449.8		100.0%	$	319.1		100.0%

(1) Excludes unfunded commitments at fair value of $50.8 million and $21.6 million as of September 30, 2018 and December 31, 2017, respectively.

The following table shows the asset mix of our new investment commitments for the three and nine months ended September 30, 2018 and September 30, 2017:

	Three Months Ended September 30, 2018				Three Months Ended September 30, 2017
($ in millions)	Cost		Percentage		Cost		Percentage
Senior secured first-lien	$	54.9		68.0%	$	24.4		68.6%
Unitranche		23.5		29.0		9.3		26.2
Senior secured second-lien		2.2		2.7		1.8		5.2
Unsecured		—		—		—		—
Equity & Other		0.2		0.3		0.0		0.0
Total investment commitments	$	80.8		100.0%	$	35.5		100.0%
	Nine Months Ended September 30, 2018				Nine Months Ended September 30, 2017
($ in millions)	Cost		Percentage		Cost		Percentage
Senior secured first-lien	$	139.0		59.5%	$	80.8		62.5%
Unitranche		57.6		24.7		9.3		7.2
Senior secured second-lien		10.0		4.3		33.1		25.7
Unsecured		0.0		0.0		0.6		0.5
Equity & Other		26.9		11.5		5.3		4.1
Total investment commitments	$	233.5		100.0%	$	129.1		100.0%

For the three months ended September 30, 2018, we had principal repayments of $25.5 million. For this period, we had no sales of securities. For the three months ended September 30, 2018, we had a net of unfunded commitments portfolio increase of $52.7 million aggregate principal amount (amortized cost).

For the three months ended September 30, 2017, we had principal repayments of $16.5 million. For this period, we had sales of securities in three portfolio companies aggregating approximately $3.2 million in net proceeds. For the three months ended September 30, 2017, we had a net of unfunded commitments portfolio increase of $14.2 million aggregate principal amount (amortized cost).

40

For the nine months ended September 30, 2018, we had principal repayments of $78.0 million. For this period, we had sales of securities in five portfolio companies aggregating approximately $2.4 million in net proceeds. For the nine months ended September 30, 2018, we had a net of unfunded commitments portfolio increase of $132.5 million aggregate principal amount (amortized cost).

For the nine months ended September 30, 2017, we had principal repayments of $32.2 million. For this period, we had sales of securities in fifteen portfolio companies aggregating approximately $10.8 million in net proceeds. For the nine months ended September 30, 2017, we had a net of unfunded commitments portfolio increase of $81.1 million aggregate principal amount (amortized cost).

The following table presents certain selected information regarding our investment portfolio at fair value as of September 30, 2018 and December 31, 2017:

	September 30, 2018		December 31, 2017
Weighted average total yield to maturity of debt and income producing securities (at fair value)		8.5%		8.0%
Weighted average total yield to maturity of debt and income producing securities (at cost)		8.6%		8.3%
Weighted average interest rate of debt and income producing securities		8.2%		7.9%
Percentage of debt bearing a floating rate		92.7%		91.3%
Percentage of debt bearing a fixed rate		7.3%		8.7%
Number of portfolio companies		80		80

The following table shows the amortized cost of our performing andnon-accrual investments as of September 30, 2018 and December 31, 2017.

	September 30, 2018				December 31, 2017
($ in millions)	Amortized Cost (1)		Percentage		Amortized Cost (1)		Percentage
Performing	$	436.7		97.1%	$	317.2		100.0%
Non-accrual		13.0		2.9		—		—
Total assets	$	449.7		100.0%	$	317.2		100.0%

(1) Excludes unfunded commitments at cost of $50.7 million and $21.7 million as of September 30, 2018 and December 31, 2017, respectively.

Loans are generally placed onnon-accrual status when there is reasonable doubt that principal or interest will be collected in full.Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan onnon-accrual status if the loan has sufficient collateral value and is in the process of collection. See Note 2 to the consolidated financial statements included in Part I, Item 1 of this10-Q for more information on the accounting policies.

The Advisor monitors our portfolio companies on an ongoing basis. The Advisor monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Advisor has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

• assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;

• review of monthly and quarterly financial statements and financial projections for portfolio companies.

• contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;

• comparisons to other companies in the industry; and

• possible attendance at, and participation in, board meetings.

41

As part of the monitoring process, the Advisor regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories:

1 Involves the least amount of risk in our portfolio. The investment/borrower is performing above expectations since investment, and the trends and risk factors are generally favorable, which may include the financial performance of the borrower or a potential exit.

2 Involves an acceptable level of risk that is similar to the risk at the time of investment. The investment/borrower is generally performing as expected, and the risk factors are neutral to favorable.

3 Involves an investment/borrower performing below expectations and indicates that the investment’s risk has increased somewhat since investment. The borrower’s loan payments are generally not past due and more likely than not the borrower will remain in compliance with debt covenants. An investment rating of 3 requires closer monitoring.

4 Involves an investment/borrower performing materially below expectations and indicates that the loan’s risk has increased materially since investment. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due). Placing loans onnon-accrual status should be considered for investments rated 4.

5 Involves an investment/borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since investment. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are not anticipated to be repaid in full and the fair market value of the loan should be reduced to the anticipated recovery amount. Loans with an investment rating of 5 should be placed onnon-accrual status.

The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of September 30, 2018 and December 31, 2017. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors.

	September 30, 2018 (1)				December 31, 2017 (1)
Investment Performance Rating	Investments at Fair Value     ($ in millions)		Percentage of     Total Portfolio		Investments at Fair Value     ($ in millions)		Percentage of     Total Portfolio
1	$	10.2		2.3%	$	0.8		0.3%
2		393.4		87.4		275.1		86.2
3		35.9		8.0		43.2		13.5
4		10.3		2.3		—		—
5		—		—		—		—
Total	$	449.8		100.0%	$	319.1		100.0%

(1) Excludes unfunded commitments at fair value of $50.8 million and $21.6 million as of September 30, 2018 and December 31, 2017, respectively.

As of September 30, 2018, the Company had one investment onnon-accrual status, which represented 2.9% and 2.3% of the total investments at cost and fair value, respectively. As of December 31, 2017, no loans had been placed onnon-accrual status by the Company.

The remaining debt investments were performing and current on their interest payments as of September 30, 2018 and December 31, 2017.

42

RESULTS OF OPERATIONS

Operating results for the three months ended September 30, 2018 and September 30, 2017 and for the nine months ended September 30, 2018 and September 30, 2017, were as follows:

	For the three months ended September 30, 2018		For the three months ended September 30, 2017			For the nine months ended September 30, 2018		For the nine months ended September 30, 2017
Total investment income	$	8,723,747	$	6,186,137		$	22,785,680	$	15,942,809
Less: Total expenses		3,848,527		3,330,110			11,019,396		8,891,225
Net investment income before taxes	$	4,875,220	$	2,856,027		$	11,766,284	$	7,051,584
Income and excise taxes		880		—			7,701		1,689
Net investment income		4,874,340		2,856,027			11,758,583		7,049,895
Net realized gain (loss) on investments (1)		32,697		(87,643)			(181,462)		(351,570	)
Net unrealized appreciation (depreciation) on investments (1)		(114,625)		(37,227)			(1,673,273)		2,539,686
Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments		11,775		(380,145	)		17,274		(380,145	)
Net increase in net assets resulting from operations	$	4,804,187	$	2,351,012		$	9,921,122	$	8,857,866

(1) Includes foreign currency transactions and translation.

Investment Income

	For the three months ended September 30, 2018		For the three months ended September 30, 2017		For the nine months ended September 30, 2018		For the nine months ended September 30, 2017
Interest from investments	$	8,364,283	$	6,142,354	$	22,214,789	$	15,825,733
Dividend Income		202,803		—		202,803		—
Other income		156,661		43,783		368,088		117,076
Total	$	8,723,747	$	6,186,137	$	22,785,680	$	15,942,809

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $6.1 million for the three months ended September 30, 2017 to $8.4 million for the three months ended September 30, 2018, due to the increase in the size of our portfolio. The average size of our total investment portfolio increased from $290.2 million during the three months ended September 30, 2017 to 423.4 million during the three months ended September 30, 2018. Included in interest from investments for the three months ended September 30, 2018 and 2017 is $0.0 million and $0.1 million, respectively, in prepayment fees and $0.3 million and $0.3 million, respectively, in accelerated accretion of upfront fees. Dividend income increased from $0.0 million for the three months ended September 30, 2017, to $0.2 million for the three months ended September 30, 2018. Other investment income relates to the amortization of loan administration fees earned as the administration agent and other miscellaneous fee income.

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $15.8 million for the nine months ended September 30, 2017 to $22.2 million for the nine months ended September 30, 2018, due to the increase in the size of our portfolio. The average size of our total investment portfolio increased from $264.4 million during the nine months ended September 30, 2017 to 372.6 million during the nine months ended September 30, 2018. Included in interest from investments for the nine months ended September 30, 2018 and 2017 is $0.0 million and $0.1 million, respectively, in prepayment fees and $0.7 million and $0.4 million, respectively, in accelerated accretion of upfront fees. Dividend income increased from $0.0 million for the nine months ended September 30, 2017, to $0.2 million for the nine months ended September 30, 2018. Other investment income relates to the amortization of loan administration fees earned as the administration agent and other miscellaneous fee income.

43

Expenses

	For the three months ended September 30, 2018		For the three months ended September 30, 2017		For the nine months ended September 30, 2018		For the nine months ended September 30, 2017
Interest and credit facility expenses	$	2,175,202	$	1,416,125	$	5,783,370	$	3,752,347
Management fees		888,973		710,176		2,421,971		1,982,695
Income Incentive Fees		—		504,005		554,977		1,118,540
Directors’ fees		72,500		72,500		217,500		217,500
Professional fees		200,097		184,802		575,177		536,368
Organization expenses		40,564		16,226		97,354		56,790
Other general and administrative expenses		471,191		426,276		1,369,047		1,226,985
Total expenses	$	3,848,527	$	3,330,110	$	11,019,396	$	8,891,225

Interest and credit facility expenses

Interest and credit facility expenses include interest, amortization of deferred financing costs, upfront commitment fees and unused fees on the Revolving Credit Facility, Revolving Credit Facility II and SPV Asset Facility. The Company first drew on the Revolving Credit Facility in July 2015, on the SPV Asset Facility in April 2016, and on the Revolving Credit Facility II in June 2017. Interest and credit facility expenses increased from $1.4 million for the three months ended September 30, 2017 to $2.2 million for the three months ended September 30, 2018. This increase was primarily due to an increase 1) in the weighted average debt outstanding from $139.7 million for the three months ended September 30, 2017 to $190.5 million for the three months ended September 30, 2018 and 2) an increase in the average interest rate (excluding deferred upfront financing costs and unused fees) on the weighted average debt outstanding from 3.3% for the three months ended September 30, 2017 to 4.1% for the three months ended September 30, 2018.

Interest and credit facility expenses increased from $3.8 million for the nine months ended September 30, 2017 to $5.8 million for the nine months ended September 30, 2018. This increase was primarily due to an increase 1) in the weighted average debt outstanding from 127.5 million for the nine months ended September 30, 2017 to $169.9 million for the nine months ended September 30, 2018 and 2) an increase in the average interest rate (excluding deferred upfront financing costs and unused fees) on the weighted average debt outstanding from 3.2% for the nine months ended September 30, 2017 to 4.0% for the nine months ended September 30, 2018.

Management fees

Management fees are calculated and payable quarterly in arrears at an annual rate of 1.5% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Advisor, however, has agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay the Company’s expenses) during any period prior to a qualified initial public offering, as defined by the Investment Advisory Agreement (“Qualified IPO”). Management fees, net of waived management fees, increased from $0.7 million for the three months ended September 30, 2017 to $0.9 million for the three months ended September 30, 2018 due to the increase in total assets, which increased from an average of $304.0 million for the three months ended September 30, 2017 to an average of $435.9 million for the three months ended September 30, 2018. Waived management fees for the three months ended September 30, 2018 and September 30, 2017 were approximately $0.7 million and $0.4 million, respectively. The Advisor is not permitted to recoup any waived amounts at any time.

Management fees, net of waived management fees, increased from $2.0 million for the nine months ended September 30, 2017 to $2.4 million for the nine months ended September 30, 2018 due to the increase in total assets, which increased from an average of $277.0 million for the nine months ended September 30, 2017 to an average of $385.5 million for the nine months ended September 30, 2018. Waived management fees for the nine months ended September 30, 2018 and September 30, 2017 were approximately $1.8 million and $1.1 million, respectively.

44

Income incentive fees

Income incentive fees decreased from $0.5 million and $1.1 million for the three and nine months ended September 30, 2017, respectively, to zero and $0.6 million for the three and nine months ended September 30, 2018, respectively. The decrease was due to the Advisor agreeing to waive its rights to income incentive fees effective April 1, 2018. For the three and nine months ended September 30, 2018, income incentive fees as a percentage ofPre-Incentive Fee Net Investment Income was 0.0% and 4.5% compared to 15.0% and 13.7% for the three and nine months ended September 30, 2017.“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies, but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management fee, taxes, any expenses payable under the Investment Advisory Agreement and the Administration Agreement and any interest expense, but excluding the Incentive fee).Pre-Incentive Fee Net Investment Income includes accrued income that we have not yet received in cash, such as debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities.

Professional Fees and Other General and Administrative Expenses

Professional fees generally include expenses from independent auditors, tax advisors, legal counsel and third party valuation agents. Other general and administrative expenses generally include expenses from theSub-Administration Agreements, insurance premiums, overhead and staffing costs allocated from the Administrator and other miscellaneous general and administrative costs associated with the operations and investment activity of the Company. Professional fees remained flat at $0.2 million for the three months ended September 30, 2018 and September 30, 2017, respectively, while other general and administrative expenses increased from $0.4 million for the three months ended September 30, 2017 to $0.5 million for the three months ended September 30, 2018. The net increase in costs was due to an increase in costs associated with servicing a growing investment portfolio.

Professional fees increased from $0.5 million for the nine months ended September 30, 2017 to $0.6 million for the nine months ended September 30, 2018, while other general and administrative expenses increased from $1.2 million for the nine months ended September 30, 2017 to $1.4 million for the nine months ended September 30, 2018. The net increase in costs was due to an increase in costs associated with servicing a growing investment portfolio.

Organization expenses

We have agreed to repay the Advisor for the organization costs and offering costs (not to exceed $1.5 million) on a pro rata basis over the first $350 million of capital contributed to the Company. For the three and nine months ended September 30, 2018, we called $25.0 and $60.0 million, respectively, and the Advisor allocated $0.0 million and $0.1 million, respectively of organization costs to the Company, which was included in the Consolidated Statements of Operations. For the three and nine months ended September 30, 2018, the Advisor also allocated $0.1 million and $0.1 million, respectively of equity offering costs to the Company that was recorded as an offset toPaid-in capital in excess of par value on the Consolidated Statement of Assets and Liabilities.

During the three and nine months ended September 30, 2017, we called $10.0 million and $35.0 million, respectively, and the Advisor allocated $0.0 million and $0.1 million, respectively of organization costs to the Company, which was included in the Consolidated Statements of Operations. During the three and nine months ended September 30, 2017, the Advisor also allocated $0.0 million and $0.1 million, respectively of equity offering costs to the Company that was recorded as an offset toPaid-in capital in excess of par value on the Consolidated Statement of Assets and Liabilities.

Income Tax Expense, Including Excise Tax

We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must generally (among other requirements) timely distribute to our stockholders at least 90% of our investment company taxable income, as defined by the Code, for each year. In order to maintain our RIC status, we intend to make the requisite distributions to our stockholders which will generally relieve us from corporate-level income taxes.

In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions into the next tax year and pay a 4% excise tax on such income, as required. If we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax on estimated excess taxable income as such taxable income is earned. For the three and nine months ended September 30, 2018, the Company expensed an excise tax of $80 and $80, respectively, of which $0 remained payable. There were no excise tax expenses or payables for the three and nine months ended September 30, 2017.

45

Net Realized and Unrealized Gains and Losses

We value our portfolio investments quarterly and any changes in fair value are recorded as unrealized appreciation (depreciation) on investments. For the three and nine months ended September 30, 2018 and September 30, 2017, net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following:

	For the three months ended       September 30, 2018		For the three months ended       September 30, 2017		For the nine months ended       September 30, 2018		For the nine months ended       September 30, 2017
Realized losses on investments	$	—	$	(121,126)	$	(234,477)	$	(408,679)
Realized gains on investments		0		33,998		15,158		59,618
Realized gains on foreign currency transactions		1,204		327		6,372		1,075
Realized losses on foreign currency transactions		31,493		(842)		31,485		(3,584)
Net realized gains (losses)	$	32,697	$	(87,643)	$	(181,462)	$	(351,570)
Change in unrealized depreciation on investments	$	(1,165,971)	$	(223,945)	$	(4,195,104)	$	(440,787)
Change in unrealized appreciation on investments		1,071,579		153,194		2,583,333		2,900,807
Change in unrealized depreciation on foreign currency translation		3,112		(54,705)		46,823		(35,239)
Change in unrealized appreciation on foreign currency translation		(23,344)		88,229		(108,325)		114,905
Net unrealized appreciation (depreciation)	$	(114,625)	$	(37,227)	$	(1,673,273)	$	2,539,686

Hedging

We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks. Generally, we do not intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to the Company’s business or results of operations. These hedging activities, which will be in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We will bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful.

We did not enter into any interest rate, foreign exchange or other derivative agreements during the three and nine months ended September 30, 2018 and September 30, 2017.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2018, we had $12.3 million in cash on hand. The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments and to comply with certain portfolio diversification requirements; (2) the cost of operations (including paying our Advisor); (3) debt service, repayment, and other financing costs; and, (4) cash distributions to the holders of our common shares.

We expect to generate additional cash from (1) future offerings of our common or preferred shares; (2) borrowings from our Revolving Credit Facility II, SPV Asset Facility and from other banks or lenders; and, (3) cash flows from operations.

Cash on hand of $12.3 million combined with our uncalled capital commitments of $163.3 million, $0.4 million undrawn amount on our Revolving Credit Facility II and $55.2 million undrawn amount on our SPV Asset Facility, is expected to be sufficient for our investing activities and to conduct our operations for the foreseeable future.

46

Capital Share Activity

Since June 26, 2015 (Commencement), we have entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP, providing for the private placement of our common shares. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase our common shares up to the amount of their respective capital commitments on anas-needed basis with a minimum of 10 business days’ prior notice. At September 30, 2018, we had received capital commitments totaling $394.3 million, of which $10.0 million was from CCG LP.

Since June 26, 2015 (Commencement), pursuant to the Subscription Agreements, we have delivered fifteen capital drawdown notices to our investors relating to the issuance of 11,599,480 of our common shares for an aggregate offering of $231.0 million. Proceeds from the issuance were used to fund our investing activities and for other general corporate purposes. As of September 30, 2018, the Company received all amounts relating to the fifteen capital drawdown notices.

During the three and nine months ended September 30, 2018, we issued 8,768 and 18,946 shares of our common stock, respectively, to investors who have opted into our dividend reinvestment plan for proceeds of $175,417 and $380,875. For the three and nine months ended September 30, 2017, we issued 1,364 and 3,142 shares of our common stock, respectively, to investors who have opted into our dividend reinvestment plan for proceeds of $27,799 and $63,435.

Debt

Debt consisted of the following as of September 30, 2018 and December 31, 2017:

	September 30, 2018
($ in millions)	Aggregate Principal     Amount Committed		Drawn     Amount (4)		Amount     Available (1)		Carrying     Value (2)
SPV Asset Facility	$	175.0	$	119.8	$	55.2	$	119.8
Revolving Credit Facility		—		—		—		—
Revolving Credit Facility II (3)(5)		85.0		85.1		0.4		84.7
Total Debt	$	260.0	$	204.9	$	55.6	$	204.5
	December 31, 2017
($ in millions)	Aggregate Principal Amount Committed		Drawn Amount (4)		Amount Available (1)		Carrying Value (2)
SPV Asset Facility	$	125.0	$	86.6	$	38.4	$	86.6
Revolving Credit Facility		—		—		—		—
Revolving Credit Facility (3)(5)		75.0		65.3		9.9		65.1
Total Debt	$	200.0	$	151.9	$	48.3	$	151.7

(1) The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments.

(2) The difference between the drawn amount and the carrying value is attributable to the effect of foreign currency rates as of the balance sheet dates versus foreign currency rates at the time of the respectivenon-USD borrowings.

(3) The Company had outstanding debt denominated in Pound Sterling (GBP) of 2.5 million and Euro (EUR) of 1.8 million on its Revolving Credit Facility II.

(4) For borrowings innon-USD, the drawn amount represents the USD equivalent at the time of borrowing (i.e. cost).

(5) Total drawn amount payable after the effect of foreign currency translation as of September 30, 2018 and December 31, 2017, was $84,623,049 and $65,044,546, respectively.

47

SPV Asset Facility

On March 28, 2016 Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned and consolidated subsidiary of the Company, entered into a loan and security agreement (the “SPV Asset Facility”) with the Company as the collateral manager, seller and equityholder, CBDC SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. The SPV Asset Facility is effective as of March 28, 2016. On February 8, 2017 the Company amended the SPV Asset Facility increasing the facility limit from $75 million to $125 million. On September 28, 2018 the Company further amended the SPV Asset Facility increasing the facility limit from $125 million to $175 million and extending the maturity date to September 28, 2023.

The maximum commitment amount under the SPV Asset Facility is $175 million, and may be increased with the consent of Wells Fargo or reduced upon request of the Company. Proceeds of the Advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to the Company in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of: (a) the date the borrower voluntarily reduces the commitments to zero, (b) the Facility Maturity Date (September 28, 2023) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Also on March 28, 2016, the Company, as seller, and CBDC SPV, as purchaser, entered into a loan sale agreement whereby the Company will sell certain assets to CBDC SPV. We consolidate CBDC SPV in our consolidated financial statements and no gain or loss is expected to result from the sale of assets to CBDC SPV. We retain a residual interest in assets contributed to or acquired by CBDC SPV through our 100% ownership of CBDC SPV. The facility size is subject to availability under the borrowing base, which is based on the amount of CBDC SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits.

Revolving Credit Facility II

On June 29, 2017, the Company entered into the “Revolving Credit Facility II” with Capital One, National Association (“CONA”), as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender. Proceeds from the Revolving Credit Facility II may be used for investment activities, expenses, working capital requirements and general corporate purposes. The maximum principal amount of the Revolving Credit Facility II is $75 million, subject to availability under the borrowing base.

Borrowings under the Revolving Credit Facility II bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company may elect either the LIBOR or prime rate at the time of draw-down, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company pays unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility II. Interest is payable monthly in arrears. On June 28, 2018, the Company amended the Revolving Credit Facility II increasing the facility limit from $75 million to $85 million and extending the maturity date to June 29, 2019. Any amounts borrowed under the Revolving Credit Facility II, and all accrued and unpaid interest, will be due and payable, on June 29, 2019.

Revolving Credit Facility

On June 29, 2015, we entered into the Revolving Credit Facility with Natixis, New York Branch (“Natixis”) as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The maximum principal amount of the Revolving Credit Facility is $75 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

Borrowings under the Revolving Credit Facility bore interest at either (i) London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor or (ii) at lenders’ cost of funds plus a margin. The Company paid unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility. Interest was payable monthly in arrears.

48

The summary information regarding the SPV Asset Facility, Revolving Credit Facility II, and the Revolving Credit Facility for the three and nine months ended September 30, 2018 and September 30, 2017, were as follows:

	For the three months ended       September 30, 2018			For the three months ended       September 30, 2017			For the nine months ended       September 30, 2018			For the nine months ended       September 30, 2017
Borrowing interest expense	$	1,958,201		$	1,152,097		$	5,065,593		$	3,012,006
Unused facility fees		24,401			64,630			133,117			172,197
Amortization of upfront commitment fees		161,944			160,336			477,338			459,932
Amortization of deferred financing costs		30,656			39,062			107,323			108,212
Total interest and credit facility expenses	$	2,175,202		$	1,416,125		$	5,783,370		$	3,752,347
Weighted average interest rate		4.1	%		3.3	%		4.0	%		3.2	%
Weighted average outstanding balance	$	190,528,564		$	139,727,139		$	169,851,030		$	127,512,491

To the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities, or if our Board otherwise determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders, we may enter into credit facilities in addition to our Revolving Credit Facility II and SPV Asset Facility. We would expect any such credit facilities may be secured by certain of our assets and may contain advance rates based upon pledged collateral. The pricing and other terms of any such facilities would depend upon market conditions when we enter into any such facilities as well as the performance of our business, among other factors. In accordance with applicable SEC staff guidance and interpretations, as a BDC, with certain limited exceptions, we are only permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 2 to 1 after such borrowing. As of September 30, 2018 and December 31, 2017, our asset coverage ratio was 2.12 to 1 and 2.13 to 1, respectively. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities.

OFF BALANCE SHEET ARRANGEMENTS

Information on our off balance sheet arrangements is contained in Note 7. Commitments, Contingencies and Indemnifications to our consolidated financial statements.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. The critical accounting policies should be read in connection with our risk factors as disclosed herein and in our Registration Statement on Form 10.

In addition to the discussion below, our critical accounting policies are further described in Note 2. Summary of Significant Accounting Policies to our consolidated financial statements.

49

Investment Valuation

The Company applies Financial Accounting Standards Board ASC 820, Fair Value Measurement (ASC 820), as amended, which establishes a framework for measuring fair value in accordance with GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, the Company considers its principal market to be the market that has the greatest volume and level of activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in the determination of fair value. In accordance with ASC 820, these levels are summarized below:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various criteria in making the determination as to whether a particular investment would qualify for classification as a Level 2 or Level 3 investment. For example, the Company reviews pricing methodologies provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality. Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. During the nine months ended September 30, 2018, the Company recorded $0 in transfers from Level 3 to Level 2 and $27,967,138 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. During the nine months ended September 30, 2017, the Company recorded $0 in transfers from Level 3 to Level 2 and $0 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data.

Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Board, based on, among other things, the input of the Advisor, the Company’s Audit Committee and independent third-party valuation firms engaged at the direction of the Board.

The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following:

• The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.

• The Advisor’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee.

• The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.

• The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith based on, among other things, the input of the Advisor, Audit Committee and, where applicable, other third parties.

The Company currently conducts this valuation process on a quarterly basis.

In connection with debt and equity securities that are valued at fair value in good faith by the Board, the Board will engage independent third-party valuation firms to perform certain limited procedures that the Board has identified.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

50

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein. See Note 4. Investments and Note 5. Fair Value of Financial Instruments for additional information on the Company’s investment portfolio.

Equity Offering and Organization Expenses

The Company has agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. To the extent such costs relate to equity offerings, these costs are charged as a reduction of capital upon the issuance of common shares. To the extent such costs relate to organization costs, these costs are expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Advisor is responsible for organization and private equity offerings costs in excess of $1.5 million. At the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. With the approval of the Commitment Period extension, the Advisor agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

The Advisor incurred costs on behalf of the Company of $794,450 of equity offering costs and $567,895 of organization costs through Commencement. For the nine months ended September 30, 2018, the Advisor allocated to the Company $136,191 of equity offering costs and $97,353 of organization costs, of which $233,545 was included in Due to Advisor on the Consolidated Statements of Assets and Liabilities at September 30, 2018. Since June 26, 2015 (Commencement), the Advisor has allocated to the Company $524,337 of equity offering costs and $374,811 of organization costs.

Interest and Dividend Income Recognition

Interest income is recorded on an accrual basis and includes the amortization of purchase discounts and premiums. Discounts and premiums to par value on securities purchased are accreted or amortized into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income.

Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on theex-dividend date for publicly-traded portfolio companies.

Certain investments have contractualpayment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or cost basis of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed onnon-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed onnon-accrual status.

Loans are generally placed onnon-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed onnon-accrual status. Interest payments received onnon-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability.Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan onnon-accrual status if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2018, the Company had one investment onnon-accrual status, which represented 2.9% and 2.3% of the total investments at cost and fair value, respectively. As of December 31, 2017, no loans had been placed onnon-accrual status by the Company.

51

Income Taxes

The Company has elected to be treated as a BDC under the 1940 Act. The Company also has elected to be treated as a RIC under the Internal Revenue Code. So long as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are“more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to,on-going analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements.

As of September 30, 2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending. In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company will accrue excise tax on estimated undistributed taxable income as required. For the three and nine months ended September 30, 2018, the Company expensed an excise tax of $80 and $80, respectively, of which $0 remained payable. There were no excise tax expenses or payables for the three and nine months ended September 30, 2017.

CBDC Universal Equity, Inc. is a taxable entity (the “Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the three and nine months ended September 30, 2018, the Company recognized a benefit/(provision) for taxes on unrealized appreciation/(depreciation) on investments of $11,775 and $17,274 related to the Taxable Subsidiary. There is a corresponding deferred tax liability of $199,875 related to the Taxable Subsidiary as of September 30, 2018. For the three and nine months ended September 30, 2017, the Company recognized a benefit/(provision) for income taxes on unrealized appreciation/(depreciation) on investments of $(380,145) and $(380,145) related to the Taxable Subsidiary. There is a corresponding deferred tax liability of $380,145 related to the Taxable Subsidiary as of September 30, 2017.

The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of September 30, 2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending.

New Accounting Standards

In May 2014, the FASB issued Accounting Standards Update (“ASU”)2014-09 (“ASU2014-09”), “Revenue from Contracts with Customers (Topic 606).” The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU2014-09 were effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. This standard did not have a material impact on the consolidated financial statements, primarily because the majority of the Company’s revenue is accounted for under FASB ASC Topic 320,“Investments – Debt and Equity Securities”, which is scoped out of this standard.

In August 2018, the FASB issued ASU2018-13 “Changes to the Disclosure for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance to the Company.

52

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including valuation risk, interest rate risk and currency risk.

Valuation Risk

We have invested, and plan to continue to invest, in illiquid debt and equity securities of private companies. These investments will generally not have a readily available market price, and we will value these investments at fair value as determined in good faith by our Board in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material. See Note 2. Summary of Significant Account Policies to our consolidated financial statements for more details on estimates and judgments made by us in connection with the valuation of our investments.

Interest Rate Risk

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund a portion of our investments with borrowings and our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

As of September 30, 2018, 92.7% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The Revolving Credit Facility II and SPV Asset Facility also bear interest at variable rates.

Assuming that our Consolidated Statements of Assets and Liabilities as of September 30, 2018 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):

($ in millions)

Basis Point Change	Interest Income		Interest Expense		Increase (decrease)      in net assets resulting from operations
Up 300 basis points	$	12.5	$	6.1	$	6.4
Up 200 basis points	$	8.3	$	4.1	$	4.2
Up 100 basis points	$	4.2	$	2.0	$	2.2
Down 25 basis points	$	(1.0)	$	(0.5)	$	(0.5)
Down 100 basis points	$	(4.2)	$	(2.0)	$	(2.2)

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using hedging instruments such as interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio investments.

53

Currency Risk

From time to time, we may make investments that are denominated in a foreign currency. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates. We also have the ability to borrow in certain foreign currencies under our Revolving Credit Facility II. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment. To the extent the loan or investment is based on a floating rate other than a rate under which we can borrow under our Revolving Credit Facility II, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate. As of September 30, 2018, we had £2.5 million and €1.8 million outstanding on the Revolving Credit Facility II as a natural hedge against a £3.0 million investment and €1.8 million investment, respectively.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule13a-15 under the Securities Exchange Act of 1934). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them to material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934.

Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form10-K for the fiscal year ended December 31, 2017, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Sales of unregistered securities

(a) None

(b) None

54

(c) Issuer purchases of equity securities

The following table provides information regarding purchases of our common shares by CCG LP for each month in the three month period ended September 30, 2018:

Period	Average Price Paid      per Share		Total Number of     Shares Purchased		Total Number of     Shares Purchased as      Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of     Shares that May Yet      Be Purchased Under the Plans or Programs
July 2018	$	20.01		13,037.02		—	$	4,102,043
August 2018		—		—		—		4,102,043
September 2018		—		—		—		4,102,043
Total	$	—		—		—	$	4,102,043

Item 3. Defaults Upon Senior Securities

None.

Item 4. [Reserved]

Item 5. Other Information

None.

Item 6. Exhibits.

(a)    Exhibits.

3.1	Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
3.2	Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
4.1	Dividend Reinvestment Plan (incorporated by reference to Exhibit 10.6 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
10.1	Investment Advisory Agreement, dated June  2, 2015, by and between the Company and the Advisor (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June  5, 2015).
10.2	Administration Agreement, dated June  2, 2015, by and between the Company and the Administrator (incorporated by reference to Exhibit 10.2 to the Company’s Registration Statement on Form 10 (File No.  000-55380) filed on June 5, 2015).
10.3	Trademark License Agreement, dated April  30, 2015, by and between the Company and CCG LP (incorporated by reference to Exhibit 10.3 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June  5, 2015).
10.4	Form of Advisory Fee Waiver Agreement by and between the Company and the Advisor (incorporated by reference to Exhibit 10.4 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
10.5	Form of Subscription Agreement (incorporated by reference to Exhibit 10.5 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
10.6	Custodian Agreement by and between the Company and State Street Bank and Trust Company (incorporated by reference to Exhibit 10.7 to the Company’s Registration Statement on Form 10 (File No. 000-55380) filed on June 5, 2015).
10.7	Revolving Credit Agreement, dated June  29, 2015, among the Company, as Borrower, Natixis, New York Branch, as Administrative Agent and Lender (incorporated by reference to Exhibit 10.1 to the Company’s current report on Form8-K filed on July2, 2015).

55

10.8	Loan and Security Agreement, dated March  28, 2016, among the Company as the Collateral Manager, Seller and Equityholder, Crescent Capital BDC Funding, LLC as the Borrower, the banks and other financial institutions from time to time party thereto as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, and Lender (incorporated by reference to Exhibit 10.1 to the Company’s copy of the Loan and Security Agreement on Form8-K filed on March 28, 2016).
10.9	Revolving Credit Agreement, dated June  29, 2017, among the Company, as Borrower, Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (incorporated by reference to Exhibit 10.1 to the Company’s current report on Form8-K filed on June 30, 2017).
10.10	First Amendment to Revolving Credit Agreement, dated June  29, 2018, among the Company, as Borrower, Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (incorporated by reference to Exhibit 10.10 to the Company’s current report on Form10-Q filed on August 10, 2018).
10.11	Amended and Restated Advisory Fee Waiver Agreement, dated August  7, 2018, by and between the Company and the Advisor (incorporated by reference to Exhibit 10.11 to the Company’s current report on Form10-Q filed on August 10, 2018).
10.12	Second Amendment to Loan and Security Agreement, dated September  28, 2018, among the Company as the Collateral Manager, Seller and Equityholder, Crescent Capital BDC Funding, LLC as the Borrower, the banks and other financial institutions from time to time party thereto as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, and Lender (filed herewith)
31.1	Certification of Chief Executive Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Financial Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32	Certification of Chief Executive Officer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section  906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Crescent Capital BDC, INC.
Date: November 9, 2018	By:	/s/ Jason A. Breaux
		Jason A. Breaux
		Chief Executive Officer
Date: November 9, 2018	By:	/s/ Mike L. Wilhelms
		Mike L. Wilhelms
		Chief Financial Officer

57