Crescent Capital BDC (CCAP) 10-K 2021 FY Annual report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2021

or

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

Commission file number 814-01132

Crescent Capital BDC, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.001 par value per share	CCAP	The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☐    No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ☐    No  ☒

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit files).    Yes  ☐    No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).    Yes  ☐    No  ☒

The aggregate market value of the voting common equity held by non-affiliates of the registrant, was $187.4 million based on the number of shares held by non-affiliates of the registrant as of June 30, 2021 (the last business day of the registrant’s most recently completed second fiscal quarter). Shares of the registrant’s common stock held by each executive officer, director and holder of 5% or more of the outstanding common stock have been excluded in that such persons may be deemed affiliates. The calculation does not reflect a determination that certain persons are affiliates of the registrant for any other purpose.

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at February 23, 2022 was 30,887,360.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s proxy statement for the 2022 annual meeting of stockholders to be filed not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III.

CRESCENT CAPITAL BDC, INC.

FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2021

Table of Contents

		PAGE
PART I
ITEM 1.	Business		4
ITEM 1A.	Risk Factors		18
ITEM 1B.	Unresolved Staff Comments		43
ITEM 2.	Properties		43
ITEM 3.	Legal Proceedings		43
ITEM 4.	Mine Safety Disclosures		43
PART II
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		44
ITEM 6.	[Reserved]		46
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		47
ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risk		63
ITEM 8.	Consolidated Financial Statements and Supplementary Data		65
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		150
ITEM 9A.	Controls and Procedures		150
ITEM 9B.	Other Information		150
ITEM 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		150
PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance		151
ITEM 11.	Executive Compensation		151
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		151
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence		151
ITEM 14.	Principal Accountant Fees and Services		151
PART IV
ITEM 15.	Exhibits and Financial Statement Schedules		152
ITEM 16.	Form 10-K Summary		154
	Signatures		155

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,” “will,” “should,” “targets,” “projects,” and variations of these words and similar expressions identify forward-looking statements, although not all forward-looking statements include these words. 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:

• uncertainty surrounding the financial stability of the United States, Europe and China;

• the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments;

• potential fluctuation in quarterly operating results;

• potential impact of economic recessions or downturns;

• adverse developments in the credit markets;

• regulations governing our operation as a business development company;

• operation in a highly competitive market for investment opportunities;

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

• the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results;

• financing investments with borrowed money;

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

• the impact of COVID-19 on our portfolio companies and the markets in which they operate, interest rates and the economy in general;

• lack of liquidity in investments;

• the outcome and impact of any litigation;

• the timing, form and amount of any dividend distributions;

• risks regarding distributions;

• potential adverse effects of new or modified laws and regulations;

• the social, geopolitical, financial, trade and legal implications of Brexit;

• potential resignation of the Adviser and or the Administrator;

• uncertainty as to the value of certain portfolio investments;

• defaults by portfolio companies;

• our ability to successfully complete and integrate any acquisitions;

• risks associated with original issue discount (“OID”) and payment-in-kind (“PIK”) interest income; and

• the market price of our common stock may fluctuate significantly.

Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions may be 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 Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange 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.

SUMMARY OF RISK FACTORS

The following summarizes the principal factors that make an investment in our company speculative or risky, all of which are more fully described in “Item 1A. Risk Factors.” This summary should be read in conjunction with “Item 1A. Risk Factors” and should not be relied upon as an exhaustive summary of the material risks facing our business.

Risks Relating to the COVID-19 pandemic

• Global economic, political and market conditions caused by the current public health crisis have (and in the future, could further) adversely affect our business, results of operations and financial condition and those of our portfolio companies.

Risks Relating to our Business and Structure

• We have a limited operating history and are dependent upon Crescent and key personnel of Crescent and the Adviser.

• We may not replicate the historical results achieved by Crescent.

• Global capital markets could enter a period of severe disruption and instability. These conditions have historically affected and could again materially and adversely affect debt and equity capital markets in the United States and around the world and our business.

• Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations.

• Adverse developments in the credit markets may impair our ability to enter into new debt financing arrangements.

• The Adviser, the investment committee of the Adviser, Crescent and their affiliates, officers, directors and employees may face certain conflicts of interest. Conflicts of interest may be created by the valuation process for certain portfolio holdings. Conflicts may arise related to other arrangements with Crescent and the Adviser and other affiliates.

• Crescent’s principals and employees, the Adviser or their affiliates may, from time to time, possess material non-public information, limiting our investment discretion.

• Our management and incentive fee structure may create incentives for the Adviser that are not fully aligned with our stockholders’ interests and may induce the Adviser to make speculative investments.

• Our Investment Advisory Agreement was negotiated with the Adviser and the Administration Agreement was negotiated with the Administrator, which are both our related parties. The Adviser has limited liability and is entitled to indemnification under the Investment Advisory Agreement.

• We operate in an increasingly competitive market for investment opportunities, which could make it difficult for us to identify and make investments that are consistent with our investment objectives. Our ability to enter into transactions with our affiliates is restricted. Our ability to sell or otherwise exit investments also invested in by other Crescent investment vehicles is restricted.

• We may have difficulty paying our required distributions if it recognizes income before, or without, receiving cash representing such income. We will be subject to corporate level income tax if we are unable to qualify as a RIC. Our business may be adversely affected if it fails to maintain its qualification as a RIC. Stockholders may be required to pay tax in excess of the cash they receive. We may be subject to withholding of U. S. Federal income tax on distributions for non-U.S. stockholders. We may retain income and capital gains in excess of what is permissible for excise tax purposes and such amounts will be subject to 4% U.S. federal excise tax, reducing the amount available for distribution to stockholders.

• We may need to raise additional capital. Regulations governing our operation as a BDC affect our ability to, and the way in which we may, raise additional capital. Certain investors are limited in their ability to make significant investments in us.

• Our business could be adversely affected in the event we default under our existing credit facilities or any future credit or other borrowing facility.

• Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and increases the risk of investing in us. The risks of investment in a highly leveraged fund include volatility and possible distribution restrictions.

• We are subject to risks associated with the current interest rate environment, and to the extent we use debt to finance our investments, changes in interest rates may affect our cost of capital and net investment income. Further, changes in LIBOR or its discontinuation may adversely affect the value of LIBOR-indexed securities, loans, and other financial obligations or extensions of credit in our portfolio.

• We are and may be subject to restrictions under our credit facilities and any future credit or other borrowing facility that could adversely impact our business.

• We may be the target of litigation.

• There is a risk that investors in our common stock may not receive dividends or that our dividends may not grow over time and that investors in our debt securities may not receive all of the interest income to which they are entitled.

• If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy.

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• The majority of our portfolio investments are recorded at fair value as determined in good faith by our Board and, as a result, there may be uncertainty as to the value of our portfolio investments.

• We may experience fluctuations in our quarterly operating results.

• New or modified laws or regulations governing our operations may adversely affect our business.

• The United Kingdom referendum decision to leave the European Union may create significant risks and uncertainty for global markets and our investments.

• Our Board may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

• The Adviser and the Administrator each have the ability to resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in operations that could adversely affect our financial condition, business and results of operations.

• We are highly dependent on information systems, and systems failures or cyber-attacks could significantly disrupt its business, which may, in turn, negatively affect the value of shares of our common stock and our ability to pay distributions.

• Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of its confidential information and/or damage to its business relationships.

• We and the Adviser are subject to regulations and SEC oversight. If we or the Adviser fail to comply with applicable requirements, it may adversely impact our results relative to companies that are not subject to such regulations.

• We are subject to risks related to corporate social responsibility.

Risks Relating to Our Investments

• We may hold the debt securities of leveraged companies. Economic recessions or downturns could impair our portfolio companies, and defaults by our portfolio companies will harm our operating results. Our portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity, and rising interests rates may make it more difficult for portfolio companies to make periodic payments on their loans.

• We typically invest in middle-market companies, which involves higher risk than investments in large companies.

• The due diligence process that the Adviser undertakes in connection with our investments may not reveal all the facts that may be relevant in connection with an investment.

• The lack of liquidity in our investments may adversely affect our business. We may invest in high yield debt, or junk bonds, which has greater credit and liquidity risk than more highly rated debt obligations. Our subordinated investments may be subject to greater risk than investments that are not similarly subordinated.

• Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing NAV through increased net unrealized depreciation.

• Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

• The disposition of our investments may result in contingent liabilities.

• We will be subject to the risk that the debt investments we make in our portfolio companies may be repaid prior to maturity.

• We may be subject to risks under hedging transactions and may become subject to risk if it invests in non-U.S. securities.

• We may not realize anticipated gains on the equity interests in which it invests.

• Our investments in OID and PIK interest income may expose us to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash. You may receive shares of our common stock as dividends, which could result in adverse tax consequences to you.

• Changes in healthcare laws and other regulations applicable to some of our portfolio companies businesses may constrain their ability to offer their products and services.

• Our investments in the consumer products and services sector are subject to various risks including cyclical risks associated with the overall economy. Our investments in the financial services sector are subject to various risks including volatility and extensive government regulation. Our investments in technology companies are subject to many risks, including volatility, intense competition, shortened product life cycles, litigation risk and periodic downturn.

Risks Relating to Our Common Stock

• The market price of our common stock may fluctuate significantly. Our shares of common stock have traded at a discount from net asset value and may do so again, which could limit our ability to raise additional equity capital.

• Our stockholders will experience dilution in their ownership percentage if they opt out of our dividend reinvestment plan.

• Provisions of the Maryland General Corporation Law and of the Charter and the Bylaws could deter takeover attempts and have an adverse effect on the price of our common stock.

• Our Charter designates the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.

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• We will incur significant costs as a result of being a publicly traded company.

PART I

In this Annual Report, except where the context suggests otherwise, the terms “CCAP,” “we,” “us,” “our,” and “the Company” refer to Crescent Capital BDC, Inc. The term “Adviser” refers to Crescent Cap Advisors, LLC, a Delaware limited liability company. The term “Administrator” refers to CCAP Administration, LLC, a Delaware limited liability company. The term “Crescent” refers to Crescent Capital Group LP and its affiliates.

Item 1. Business

General

We are a specialty finance company focused on lending to middle-market companies. We were incorporated under the laws of the State of Delaware on February 5, 2015 and on January 30, 2020, we changed our state of incorporation from the State of Delaware to the State of Maryland. We were listed and began trading on the NASDAQ stock exchange on February 3, 2020 concurrently with the completion of the acquisition of Alcentra Capital Corporation in a cash and stock transaction (the “Alcentra Acquisition”). We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). In addition, we have 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 and tax-exempt interest.

Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We invest primarily in secured debt (including first lien, unitranche first lien, and second-lien debt) and unsecured debt (including 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 our 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, we may from time to time invest in more liquid broadly syndicated loans to complement our private credit transactions.

Our investment objective is accomplished through:

• accessing the origination channels that have been developed and established by Crescent;

• originating investments in what we believe to be middle-market companies with strong business fundamentals, generally controlled by private equity investors that require capital for growth, acquisitions, recapitalizations, refinancings and leveraged buyouts;

• applying Crescent’s underwriting standards; and

• leveraging Crescent’s experience and resources to monitor our investments.

Our investment philosophy emphasizes capital preservation through credit selection and risk mitigation. We expect our targeted portfolio to provide downside protection through conservative cash flow and asset coverage requirements, priority in the capital structure and information requirements.

As a BDC under the Act and a RIC under the Code, our portfolio is subject to diversification and other requirements. See “—Certain U.S. Federal Income Tax Consequences.”

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

From time to time we may form wholly owned subsidiaries to facilitate the normal course of business if the Adviser determines that for legal, tax, regulatory, accounting or other similar reasons it is in our best interest to do so. We have formed a wholly owned subsidiary that is structured as a tax blocker, to hold equity or equity-like investments in portfolio companies organized as limited liability companies or other forms of pass-through entities. This corporate subsidiary is not consolidated for income tax purposes and may incur income tax expense as a result of its ownership of portfolio companies. We have also formed a special purpose vehicle that holds certain debt investments in connection with a credit facility.

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We may borrow money from time to time within the levels permitted by the 1940 Act (up to 150% of asset coverage requirement). In determining whether to borrow money, we analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook. The use of borrowed funds or the proceeds of preferred stock offerings to make investments would have its own specific set of benefits and risks, and all of the costs of borrowing funds or issuing preferred stock would be borne by holders of our common stock. See “Item 1A. Risk Factors—Risks Relating to Our Business and Structure—We are subject to risks associated with the current interest rate environment, and to the extent we use debt to finance our investments, changes in interest rates may affect our cost of capital and net investment income. Further, changes in LIBOR or its discontinuation may adversely affect the value of LIBOR-indexed securities, loans, and other financial obligations or extensions of credit in our portfolio.”

The Investment Adviser

The Adviser, a Delaware limited liability company and an affiliate of Crescent, acts as our investment adviser. The Adviser is a registered investment adviser under the Advisers Act. Our investment activities are managed by the Adviser, which is 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 Adviser has entered into a Resource Sharing Agreement (the “Resource Sharing Agreement”) with Crescent, pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the Resource Sharing Agreement, the Adviser capitalizes on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals.

About Crescent

Crescent is a global credit investment manager with over $38 billion of assets under management. Crescent Capital Corporation, a predecessor to the business of Crescent, was formed in 1991 by Mark Attanasio and Jean-Marc Chapus as an asset management firm specializing in below-investment grade debt securities. In 1995, Crescent Capital Corporation was acquired by The TCW Group, Inc. (“TCW”) and rebranded as TCW’s Leveraged Finance Group. On January 1, 2011, Messrs. Attanasio and Chapus, along with the entire investment team, spun out of TCW and formed Crescent, an employee-owned, registered investment adviser. With its headquarters in Los Angeles, Crescent has over 200 employees based in four offices in the U.S. and Europe. Messrs. Attanasio and Chapus head Crescent’s management committee, which oversees all of Crescent’s operations. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent (the “Sun Life Transaction”). There were no changes to our investment objective, strategies and process or to the Crescent team responsible for the investment operations as a result of the Sun Life Transaction.

The Board of Directors

Our business and affairs are managed under the direction of our Board. Our Board consists of five members, four of whom are not “interested persons” of CCAP, the Adviser, the Administrator or their respective affiliates as defined in Section 2(a)(19) of the 1940 Act. We refer to these individuals as our “Independent Directors.” The Independent Directors compose a majority of our Board. Our Board elects our officers, who serve at the discretion of our Board. The responsibilities of our Board include quarterly determinations of the fair value of our assets, corporate governance activities, oversight of our financing arrangements and oversight of our investment activities.

Investment Strategy

We follow Crescent’s approach to investing, which is based upon fundamental credit research and risk analysis. This approach reflects Crescent’s view that the cornerstone of successful investing is fundamental credit analysis.

Specifically, we pursue an investment strategy targeting companies primarily in the middle-market. We believe that the middle-market is attractive as a result of the lack of available lending sources to smaller companies. We believe many financing providers have chosen to focus on large corporate clients and managing capital markets transactions rather than lending to middle-market businesses. Further, many financial institutions and traditional lenders are faced with constrained balance sheets. We also believe hedge funds and collateralized debt obligation/collateralized loan obligation managers are less likely to pursue investment opportunities in our target market as a result of reduced liquidity for new investments. Specifically, Crescent’s sourcing platform should enable it, on our behalf and through our Adviser, to identify and invest in creditworthy borrowers. In addition, to take advantage of investment opportunities in middle-market companies that are identified for us by Crescent, we may invest alongside other pools of capital, including bank debt, high-yield and mezzanine funds managed by Crescent. See “Item 13. Certain Relationships and Related Transactions, and Director Independence” for a discussion of certain conflicts of interest of Crescent and certain limitations on our ability to co-invest with other accounts advised by Crescent.

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We target investments in companies that exhibit one or more of the following characteristics:

• businesses with strong franchises and sustainable competitive advantages;

• businesses operating in industries with barriers to entry;

• businesses in industries with positive long-term dynamics;

• businesses with cash flows that are dependable and predictable;

• businesses with management teams with demonstrated track records and economic incentives; or

• businesses controlled by private equity investors that require capital for growth, acquisitions, and leveraged buyouts.

We seek to create a diversified portfolio of investments across various industries as a method to manage risk and capitalize on specific sector trends, although our investments may be concentrated in a small number of industries.

Investment Focus

Generally, we focus on investing in secured debt (including first lien, unitranche first lien 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. By “middle-market companies,” we mean companies that have annual EBITDA, which we believe is a useful proxy for cash flow, of $10 million to $250 million. We may on occasion invest in larger or smaller companies.

“First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets.

“Unitranche first lien” investments are 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, we 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 we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.

“Second lien” investments are loans with a second priority lien on all existing and future assets of the portfolio company. The security interest ranks below the security interests of any first lien and unitranche first lien lenders in those assets.

“Unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other senior indebtedness.

We generally invest in securities that are rated below investment grade (e.g., junk bonds) by rating agencies or that would be rated below investment grade if they were rated. See “Item 1A. Risk Factors—Risks Relating to Our Investments— We may invest in high yield debt, or junk bonds, which has greater credit and liquidity risk than more highly rated debt obligations.” Our investments may include non-cash income features, including PIK interest and OID. See “Item 1A. Risk Factors—Risks Relating to Our Investments— Our investments in OID and PIK interest income may expose us to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash.”

Our business model is focused on the direct origination of loans to middle-market companies. The companies in which we invest use our capital to support organic growth, acquisitions, market or product expansion and recapitalizations. We expect to generate revenues primarily in the form of interest income from debt investments, dividend income from direct equity investments, capital gains on the sales of debt and equity securities and various loan origination and other fees.

We may purchase interests in loans or make debt investments, either (i) directly from our 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, we may from time to time invest in more liquid broadly syndicated loans and bonds to complement our private credit transactions. In addition, and because we often receive more attractive financing terms on broadly syndicated loans and bonds than we do on our less liquid assets, we are able to leverage the broadly syndicated portfolio in such a way that can maximize the levered return potential of our portfolio.

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Investment Decision Process

Through its affiliation with Crescent, the Adviser has access to origination capabilities and research resources, experienced investment professionals, internal information systems and a credit analysis framework and investment process. Over the years, Crescent has designed its investment process to seek investments which it believes have the most attractive risk/reward characteristics. The process involves multiple levels of review and is coordinated in an effort to identify risks in potential investments. Our Adviser applies Crescent’s expertise to screen our investment opportunities as described below. Depending on the type of investment and the borrower, the Adviser may apply all or some of these levels of review, in its discretion. Based upon a favorable outcome of the diligence process described below, our Adviser’s investment committee will make a final decision on such investment and such investment will only be funded after approval by the Adviser’s investment committee.

Private Credit Originations: New private credit investment opportunities are initially reviewed by a Crescent senior investment professional to determine whether additional consideration is warranted. Factors influencing this decision include fundamental business considerations, including borrower industry, borrower financial leverage and cash flows and quality of management as well as private equity sponsor involvement (if any). In the event of an initial positive review, potential investments are further reviewed with senior and junior investment professionals. If the team agrees on the fundamental attractiveness of the investment, the review phase proceeds with preliminary due diligence and financial analyses. At this point, Crescent utilizes its credit analysis methodology to outline credit and operating statistics and identify key business characteristics and risks through available diligence materials in addition to dialogue with company management and the proposed private equity sponsor (if any). Following this analysis, Crescent considers an initial structure and pricing proposal for the investment and preliminarily informs the broader investment team of such proposal.

After satisfactory preliminary analysis and review, further due diligence continues, including completion of credit analysis, on-site due diligence (if deemed necessary), visits and meetings with management, and could include consultation with third-party experts. The credit analysis is a detailed, bottom-up analysis on the proposed portfolio company that generally includes an assessment of its industry, market, competition, products, services, management and the equity sponsor or owner. Detailed financial analysis is also performed at this stage with a focus on historical financial results. Projected financial information developed by the proposed portfolio company is analyzed and sensitized based upon the portfolio company’s historical results and assessment of the portfolio company’s future prospects. The sensitivity analysis highlights the variability of revenues and earnings, “worst case” debt service coverage and available sources of liquidity. As part of the overall evaluation, comparisons are made to similar companies to help assess a portfolio company’s asset and enterprise value coverage of debt, interest servicing capacity and competitive strength within its industry and market. Additionally during this stage, Crescent typically works with the management of the proposed portfolio company and its other capital providers to develop the structure of an investment, including negotiating among these parties on how the investment is expected to perform relative to the other forms of capital in its capital structure.

Syndicated Investments: For syndicated investments, Crescent seeks to pursue an investment process based upon evaluation of the credit fundamentals of issuers. The foundation of this process is the “bottom-up” credit research process that Crescent employs across multiple strategies. In selecting investments, Crescent’s investment professionals perform comprehensive analysis of credit worthiness, including an assessment of the business, an evaluation of management, an analysis of business strategy and industry trends, an examination of financial results and projections and a review of the security’s proposed terms. Credit research is a critical component of the investment process. In selecting investments, Crescent’s respective portfolio management teams analyze opportunities with an emphasis on principal preservation (i.e., an issuer’s ability to service its debt and maintain cash flow).

Investment Funding

Upon completion of the investment decision process described above, the investment team working on an investment delivers a memorandum to the Adviser’s investment committee. Once an investment has been approved by the investment committee, the Adviser moves through a series of steps with the respective investment team towards negotiation of final documentation.

Investment Monitoring

The Adviser monitors our portfolio companies on an ongoing basis. The Adviser 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 Adviser 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

• attendance and participation in board meetings.

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As part of the monitoring process, the Adviser 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 on non-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 are generally reduced to the anticipated recovery amount. Loans with an investment rating of 5 are generally placed on non-accrual status.

Investment Advisory Agreement

On June 2, 2015, we entered into an investment advisory agreement with the Adviser which was most recently amended and restated (the “Investment Advisory Agreement”) on January 5, 2021. Under the terms of the Investment Advisory Agreement, the Adviser provides investment advisory services to us and our portfolio investments. The Adviser’s services under the Investment Advisory Agreement are not exclusive, and the Adviser is free to furnish similar or other services to others so long as its services to us are not impaired. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive a base management fee and may also receive incentive fees, as discussed below.

Base Management Fee

Effective February 1, 2020, pursuant to the Investment Advisory Agreement, the base management fee is calculated and payable quarterly in arrears at an annual rate of 1.25% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash, cash equivalents and restricted cash. 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. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper maturing within one year of purchase.

Under the terms of the Investment Advisory Agreement, the Adviser agreed to waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the closing of the Alcentra Acquisition so that only 0.75% was charged for such time period. The Adviser has also voluntarily waived its right to receive management fees that would result from our investments in GACP II LP and WhiteHawk III Onshore Fund LP.

Prior to February 1, 2020, the base management fee was calculated and payable quarterly in arrears at an annual rate of 1.50% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Adviser 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 during the period prior to February 3, 2020, the date of our qualified initial public offering.

Incentive Fee

Under the Investment Advisory Agreement, the incentive fee 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 the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.75% (1.50% prior to February 1, 2020) per quarter (7.0% annualized or 6.0% annualized prior to February 1, 2020) (the “Hurdle”), and a catch-up feature until the Adviser has received 17.5% (15.0% prior to February 1, 2020), of the pre-incentive fee net investment income for the current quarter up to 2.1212% (1.7647% prior to February 1, 2020) (the “Catch-up”), and (b) 17.5% (15.0% prior to February 1, 2020) of all remaining pre-incentive fee net investment income above the “Catch-up.”

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The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year at a rate of 17.5% (15.0% prior to February 1, 2020) of our realized capital gains, if any, on a cumulative basis from the 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. 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.

Under the terms of the Investment Advisory Agreement, the Adviser agreed to waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021. The income and capital gains incentive fees were previously waived from April 1, 2018 through February 1, 2020. Additionally, On February 22, 2021, the Adviser notified the Board of Directors of its intent to voluntarily waive income incentive fees to the extent net investment income falls short of the regular declared dividend on a full dollar basis. The waiver is effective from July 31, 2021 through December 31, 2022. The Adviser has also voluntarily waived its right to receive income incentive fees that would result from our investments in GACP II LP and WhiteHawk III Onshore Fund LP.

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 we receive 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, original issue discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that we have 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 1.75% per quarter, or 7.0% annualized (1.50% per quarter, or 6.0% annualized prior to February 1, 2020) and (ii) our 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.

See “Item 1A. Risk Factors—Risks Relating to Our Business and Structure—Our management and incentive fee structure may create incentives for the Adviser that are not fully aligned with the interests of our stockholders and may induce the Adviser to make speculative investments.”

GAAP Incentive Fee on Cumulative Unrealized Capital Appreciation

We accrue, but do not pay, a portion of the incentive fee based on capital gains with respect to net unrealized appreciation.

Under GAAP, we are required to accrue an incentive fee based on capital gains that includes net realized capital gains and losses and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the accrual for the incentive fee based on capital gains, we consider the cumulative aggregate unrealized capital appreciation in the calculation, since an incentive fee based on capital gains would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee payable under the Investment Advisory Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we would record a capital gains incentive fee equal to 17.5% (15.0% prior to February 1, 2020) of such amount, minus the aggregate amount of actual incentive fees based on capital gains paid in all prior periods. If such amount is negative, then there is no accrual for such period. There can be no assurance that such unrealized capital appreciation will be realized in the future.

Our Board monitors the mix and performance of our investments over time and will seek to satisfy itself that the Adviser is acting in our interests and that our fee structure appropriately incentivizes the Adviser to do so.

Term

The Investment Advisory Agreement has been unanimously approved by the Board. Unless terminated earlier as described below, the Investment Advisory Agreement will remain in effect until January 5, 2023 and will remain in effect from year to year thereafter if approved annually by (i) the vote of the Board, or by the vote of a majority of our outstanding voting securities, and (ii) the vote of a majority of our independent directors. The Investment Advisory Agreement will automatically terminate in the event of its assignment (as defined in the 1940 Act). The Investment Advisory Agreement may be terminated by either party without penalty upon not less than 60 days’ written notice to the other. See “Item 1A. Risk Factors—Risks Relating to our Business and Structure—We are dependent upon key personnel of Crescent and the Adviser.”

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Indemnification

Under the Investment Advisory Agreement, the Adviser has not assumed any responsibility to us other than to render the services called for under that agreement. The Adviser will not be responsible for any action of the Board in following or declining to follow the Adviser’s advice or recommendations. Under the Investment Advisory Agreement, the Adviser, its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including, without limitation, the Administrator, and any person controlling or controlled by the Adviser will not be liable to us, any of our subsidiaries, our directors, our stockholders or any subsidiary’s stockholders or partners for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting gross negligence, willful misfeasance, bad faith or reckless disregard of the duties that the Adviser owes to us under the Investment Advisory Agreement. In addition, as part of the Investment Advisory Agreement, we have agreed to indemnify the Adviser and each of its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement, except where attributable to gross negligence, willful misfeasance, bad faith or reckless disregard of such person’s duties under the Investment Advisory Agreement. These protections may lead the Adviser to act in a riskier manner when acting on our behalf than it would when acting for its own account. The Investment Advisory Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party.

United States federal and state securities laws may impose liability under certain circumstances on persons who act in good faith. Nothing in the Investment Advisory Agreement constitutes a waiver or limitation of any rights that we may have under any applicable federal or state securities laws.

Administration Agreement

On June 2, 2015, we entered into the Administration Agreement with the Administrator, as amended and restated on February 1, 2020. Under the terms of the Administration Agreement, the Administrator provides administrative services. 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, we 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.

No person who is an officer, director or employee of the Administrator or its affiliates and who serves as a director receives any compensation for his or her services as a director. However, we reimburse the Administrator (or its affiliates) for an allocable portion of the compensation paid by the Administrator or its affiliates to our compliance professionals, legal counsel, and other professionals who spend time on such related activities (based on the percentage of time those individuals devote, on an estimated basis, to our business and affairs). The allocable portion of the compensation for these officers and other professionals are included in the administration expenses paid to the 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.

The Administration Agreement has been approved by our Board. Unless earlier terminated as described below, the Administration Agreement will remain in effect for a period of two years from their effective date and will remain in effect from year to year thereafter if approved annually by (i) the vote of our Board, or by the vote of a majority of our outstanding voting securities, and (ii) the vote of a majority of our independent directors. The Administration Agreement will automatically terminate in the event of assignment. The Administration Agreement may be terminated by either party without penalty upon not less than 60 days’ written notice to the other. See “Item 1A. Risk Factors—Risks Relating to Our Business and Structure—Dependence Upon Key Personnel of Crescent.”

License Agreement

We have entered into a license agreement with Crescent under which Crescent granted us a non-exclusive, royalty-free license to use the name “Crescent Capital”.

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Competition

Our primary competitors in providing financing to middle-market companies include public and private funds, other business development companies, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or to the distribution and other requirements we must satisfy to maintain our qualification as a RIC.

We expect to use the expertise of Crescent’s investment professionals to which we will have access to assess investment risks and determine appropriate pricing for our investments in portfolio companies. In addition, we expect that the relationships of Crescent’s senior members will enable us to learn about, and compete effectively for, financing opportunities with attractive middle-market companies in the industries in which we seek to invest. For additional information concerning the competitive risks we face, see “Item 1A. Risk Factors—Risks Relating to our Business and Structure — We operate in an increasingly competitive market for investment opportunities, which could make it difficult for us to identify and make investments that are consistent with our investment objectives.”

Expenses

Our primary operating expenses include the payment of management fees and incentive fees to the Adviser under the Investment Advisory Agreement, as amended, our allocable portion of overhead expenses under the Administration Agreement, operating costs associated with our third party sub-administrator and other operating costs described below. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

• 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;

• 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 us, including but not limited to, our compliance professionals, our legal counsel and other professionals);

• 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, including out-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 agreed to repay the Adviser for initial organization costs and equity offering costs incurred prior to the commencement of our operations up to a maximum of $1.5 million on a pro rata basis over the first $350.0 million of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. The initial 3 year term was later extended to June 30, 2019, with shareholder approval. To the extent such costs related to equity offerings, these costs were charged as a reduction of capital upon the issuance of common shares. To the extent such costs related to organization costs, these costs were expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Adviser was responsible for organization and private equity offerings costs in excess of $1.5 million.

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Capital Resources and Borrowings

We anticipate cash to be generated from future offerings of securities, and cash flows from operations, including interest earned from the temporary investment of cash in cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less. Additionally, we are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. Furthermore, while any indebtedness and senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. In connection with borrowings, our lenders may require us to pledge assets, investor commitments to fund capital calls and/or the proceeds of those capital calls. In addition, the lenders may ask us to comply with positive or negative covenants that could have an effect on our operations.

For more information on our debt, see “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Financial Condition, Liquidity and Capital Resources.”

Dividend Reinvestment Plan (“DRIP”)

We adopted a dividend reinvestment plan that provides for reinvestment of our dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board authorizes, and we declare, a cash dividend or other distribution then stockholders who are participating in the dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of common stock, rather than receiving cash dividends and distributions.

Resource Sharing Agreement

We do not currently have any employees. We depend on the diligence, skill and network of business contacts of the investment professionals of the Adviser to achieve our investment objective. The Adviser is an affiliate of Crescent and depends upon access to the investment professionals and other resources of Crescent and its affiliates to fulfill its obligations to us under the Investment Advisory Agreement. The Adviser also depends upon Crescent to obtain access to deal flow generated by Crescent’s investment professionals and its affiliates. Each of our officers will also be an employee of the Adviser, Crescent or its affiliates.

Pursuant to its Resource Sharing Agreement with Crescent, the Adviser will have access to the individuals who comprise our Adviser’s investment committee, and a team of additional experienced investment professionals who, collectively, comprise the Adviser’s investment team. The Adviser may hire additional investment professionals to provide services to us, based upon its needs.

Regulation as a Business Development Company

We are regulated as a BDC under the 1940 Act. A BDC must be organized in the United States for the purpose of investing in or lending primarily to private companies and making significant managerial assistance available to them. A BDC may use capital provided by public stockholders and from other sources to make long-term, private investments in businesses. A publicly-traded BDC provides stockholders the ability to retain the liquidity of a publicly-traded stock while sharing in the possible benefits, if any, of investing in primarily privately owned companies. Prior to February 3, 2020, which is the date of our listing on NASDAQ in connection with the Alcentra Acquisition, our stock was privately held.

We may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC unless authorized by vote of a majority of our outstanding voting securities, as required by the 1940 Act. A majority of our outstanding voting securities is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business.

As with other companies regulated by the 1940 Act, a BDC must adhere to certain substantive regulatory requirements. A majority of our directors must be persons who are not interested persons, as that term is defined in the 1940 Act. Additionally, we are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the BDC. Furthermore, as a BDC, we will be prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office. We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our directors who are not interested persons and, in some cases, prior approval by the SEC through an exemptive relief order (other than in certain limited situations pursuant to current regulatory guidance).

Also, while we may borrow funds to make investments, our ability to use debt is limited in certain significant aspects. In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with shareholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. 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 depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing.

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We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds, we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of investment companies in the aggregate, unless certain conditions are met. The portion of our portfolio invested in securities issued by investment companies ordinarily will subject our stockholders to additional expenses. Such investments will also generally be considered “non-qualifying assets” under the 1940 Act as discussed below. Our investment portfolio is also subject to diversification requirements by virtue of our intention to be a RIC for U.S. tax purposes.

We are subject to periodic examinations by the SEC for compliance with the 1940 Act.

As a BDC, we are subject to certain risks and uncertainties. See “Item 1A. Risk Factors.”

Qualifying Assets

We may invest up to 30% of our portfolio opportunistically in “non-qualifying assets”. However, under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as “qualifying assets,” unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. The principal categories of qualifying assets relevant to our business are the following:

1. Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. The principal categories of qualifying assets relevant to our business are the following:

a) Issuer is organized under the laws of, and has its principal place of business in, the United States;

b) Issuer is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and

c) Issuer satisfies any of the following:

i. does not have any class of securities that is traded on a national securities exchange;

ii. has a class of securities listed on a national securities exchange, but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million;

iii. is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a director of the eligible portfolio company; or

iv. is a small and solvent company having total assets of not more than $4.0 million and capital and surplus of not less than $2.0 million.

2. Securities of any eligible portfolio company which we control.

3. Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities, was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.

4. Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.

5. Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities.

6. Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.

Managerial Assistance to Portfolio Companies

A BDC must be operated for the purpose of making investments in the types of securities described under “Qualifying Assets” above. However, in order to count portfolio securities as qualifying assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities (other than small and solvent companies described above) significant managerial assistance; except that, where the BDC purchases such securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors or officers, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

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Monitoring Investments

In most cases, we will not have board influence over portfolio companies. In some instances, the Adviser’s investment professionals may obtain board representation or observation rights in conjunction with our investments. In conjunction with our Adviser’s investment committee and our Board, the Adviser will take an active approach in monitoring all investments, which includes reviews of financial performance on at least a quarterly basis and may include discussions with management and/or the equity sponsor. The monitoring process will begin with structuring terms and conditions which require the timely delivery and access to critical financial and business information regarding portfolio companies.

Temporary Investments

Pending investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as “temporary investments,” so that 70% of our assets are qualifying assets. See “Item I. Certain U.S. Federal Income Tax Consequences—Election to be Taxed as a RIC.” Typically, we will invest in U.S. Treasury bills or in repurchase agreements, provided that such agreements are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, if more than 25% of our gross assets constitute repurchase agreements from a single counterparty, we would not meet the diversification tests in order to qualify as a RIC. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. Our Adviser will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

Senior Securities

We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, as amended, is at least equal to 150% immediately after each such issuance. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage.

The 1940 Act imposes limitations on a BDC’s issuance of preferred shares, which are considered “senior securities” and thus are subject to the 150% asset coverage requirement described above. In addition, (i) preferred shares must have the same voting rights as the common stockholders (one share, one vote); and (ii) preferred stockholders must have the right, as a class, to appoint directors to the board of directors.

Code of Ethics

As required by Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, respectively, we and the Adviser have adopted codes of ethics which apply to, among others, our and our Adviser’s executive officers, including our Chief Executive Officer and Chief Financial Officer, as well as our Adviser’s officers, directors and employees. Our codes of ethics generally will not permit investments by our and the Adviser’s personnel in securities that may be purchased or sold by us.

We hereby undertake to provide a copy of the codes to any person, without charge, upon request. Requests for a copy of the codes may be made in writing addressed to our Secretary, George Hawley, Crescent Capital BDC, Inc., 11100 Santa Monica Boulevard, Suite 2000, Los Angeles, California, 90025, Attention: CCAP Investor Relations, or by emailing us at investor.relations@crescentcap.com. Our code of ethics is available without charge on our website, at http://www.crescentbdc.com.

Compliance Policies and Procedures

We and our Adviser have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and we are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a Chief Compliance Officer to be responsible for administering the policies and procedures.

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Sarbanes-Oxley Act of 2002 and NASDAQ Corporate Governance Regulations

The Sarbanes-Oxley Act imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

• pursuant to Rule 13a-14 of the Exchange Act, our principal executive officer and principal financial officer must certify the accuracy of the financial statements contained in our periodic reports;

• pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;

• pursuant to Rule 13a-15 of the Exchange Act, our management must prepare an annual report regarding its assessment of our internal control over financial reporting and (once we cease to be an emerging growth company under the JOBS Act or, if later, for the year following our first annual report required to be filed with the SEC) must obtain an audit of the effectiveness of internal control over financial reporting performed by our independent registered public accounting firm; and

• pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

In addition, NASDAQ has adopted various corporate governance requirements as part of its listing standards. We monitor our compliance with such listing standards to the extent applicable and will take actions necessary to ensure that we remain in compliance therewith.

Proxy Voting Policies and Procedures

We delegate our proxy voting responsibility to our Adviser. The Proxy Voting Policies and Procedures of the Adviser are set forth below. The guidelines are reviewed periodically by the Adviser and our non-interested directors, and, accordingly, are subject to change.

An investment adviser registered under the Advisers Act has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, the Adviser recognizes that it must vote portfolio securities in a timely manner free of conflicts of interest and in the best interests of its clients.

These policies and procedures for voting proxies are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

The Adviser votes all proxies based upon the guiding principle of seeking to maximize the ultimate long-term economic value of our stockholders’ holdings, and ultimately all votes are cast on a case-by-case basis, taking into consideration the contractual obligations under the relevant advisory agreements or comparable documents, and all other relevant facts and circumstances at the time of the vote. The Adviser reviews on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by us. Although the Adviser generally votes against proposals that may have a negative impact on our portfolio securities, the Adviser may vote for such a proposal if there exists compelling long-term reasons to do so.

The Adviser’s proxy voting decisions are made by our Adviser’s investment committee. To ensure that the vote is not the product of a conflict of interest, the Adviser will require that: (1) anyone involved in the decision making process disclose to our Adviser’s investment committee, and disinterested directors, any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (2) employees involved in the decision making process or vote administration are prohibited from revealing how the Adviser intends to vote on a proposal in order to reduce any attempted influence from interested parties.

Reporting Obligations

We furnish our stockholders with annual reports containing audited financial statements, quarterly reports, and such other periodic reports as we determine to be appropriate or as may be required by law. We are required to comply with all periodic reporting, proxy solicitation and other applicable requirements under the Exchange Act.

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Stockholders and the public may also read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may also obtain information on the operation of the Public Reference Room by calling the SEC at (202) 551-8090. The SEC also maintains a website (www.sec.gov) that contains such information.

Election to be Taxed as a RIC

We qualify and intend to continue to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, we generally do not pay corporate-level U.S. federal income taxes on any income or gains that we timely distribute to our stockholders as dividends. Rather, dividends we distribute generally are taxable to our stockholders, and any net operating losses, foreign tax credits and other of our tax attributes generally do not pass through to our stockholders, subject to special rules for certain items such as net capital gains and qualified dividend income we recognize. See “ —Taxation of U.S. Stockholders” and “ —Taxation of Non-U.S. Stockholders” below.

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, to qualify as a RIC, we must timely distribute to our stockholders at least 90% of our investment company taxable income (determined without regard to the dividends paid deduction), which is generally our net ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses, if any, for each taxable year (the “Annual Distribution Requirement”).

Taxation as a RIC

As a RIC and if we satisfy the Annual Distribution Requirement, then we will not be subject to U.S. federal income tax on the portion of our investment company taxable income and net capital gain (generally, net long-term capital gain in excess of net short-term capital loss) that we timely distribute (or are deemed to timely distribute) to our stockholders. We are subject to U.S. federal income tax at the regular corporate rates on any income or capital gain not distributed (or deemed distributed) to our stockholders.

We generally are subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for each calendar year, (2) 98.2% of our capital gains in excess of capital losses for the one-year period ending October 31 in that calendar year and (3) any net ordinary income and capital gains in excess of capital losses recognized, but not distributed, in preceding years (the “Excise Tax Avoidance Requirement”). We will not be subject to the U.S. federal excise tax on amounts on which we are required to pay U.S. federal income tax (such as retained net capital gains). Depending upon the level of taxable income earned in a year, we may choose to carry forward taxable income for distribution in the following year and pay the applicable U.S. federal excise tax.

To maintain our status as a RIC for U.S. federal income tax purposes, we must, among other things:

• qualify and have in effect an election to be treated as a BDC under the 1940 Act at all times during each taxable year;

• derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to loans of certain securities, gains from the sale of stock or other securities, net income derived from an interest in a “qualified publicly traded partnership” (as defined in the Code), or other income derived with respect to our business of investing in such stock or securities (the “90% Income Test”); and

• diversify our holdings so that at the end of each quarter of the taxable year:

i. at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and

ii. no more than 25% of the value of our assets is invested in (a) the securities, other than U.S. government securities or securities of other RICs, of one issuer or of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (b) the securities of one or more qualified publicly traded partnerships (the “Diversification Tests”).

For U.S. federal income tax purposes, we will include in our taxable income certain amounts that we have not yet received in cash. For example, if we hold debt obligations that are treated under applicable U.S. federal income tax rules as having OID (such as debt instruments with PIK interest or, in certain cases, that have increasing interest rates or are issued with warrants), we must include in our taxable income in each year a portion of the OID that accrues over the life of the obligation, regardless of whether we receive cash representing such income in the same taxable year. We may also have to include in our taxable income other amounts that we have not yet received in cash, such as accruals on a contingent payment debt instrument or deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock. Because such OID or other amounts accrued are included in our investment company taxable income for the year of accrual, we may be required to make distributions to our stockholders in order to satisfy the Annual Distribution Requirement and/or the Excise Tax Avoidance Requirement, even though we will have not received any corresponding cash payments. Accordingly, to enable us to make distributions to our stockholders that will be sufficient to enable us to satisfy the Annual Distribution Requirement, we may need to sell some of our assets at times and/or at prices that we would not consider advantageous, we may need to raise additional equity or debt capital or we may need to forego new investment opportunities or otherwise take actions that are disadvantageous to our business (or be unable to take actions that are advantageous to our business). If we are unable to obtain cash from other sources to enable us to satisfy the Annual Distribution Requirement, we may fail to qualify for the U.S. federal income tax benefits allowable to RICs and, thus, become subject to a corporate-level U.S. federal income tax (and any applicable state and local taxes).

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Because we expect to use debt financing, we may be prevented by financial covenants contained in our debt financing agreements from making distributions to our stockholders in certain circumstances. In addition, under the 1940 Act, we are generally not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain “asset coverage” tests are met. Limits on our distributions to our stockholders may prevent us from satisfying the Annual Distribution Requirement and, therefore, may jeopardize our qualification for taxation as a RIC, or subject us to the 4% U.S. federal excise tax.

Although we do not presently expect to do so, we may borrow funds and sell assets in order to make distributions to our stockholders that are sufficient for us to satisfy the Annual Distribution Requirement. However, our ability to dispose of assets may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous. Alternatively, although we currently do not intend to do so, to satisfy the Annual Distribution Requirement, we may declare a taxable dividend payable in our stock or cash at the election of each stockholder. In such case, for U.S. federal income tax purposes, the amount of the dividend paid in our common stock will generally be equal to the amount of cash that could have been received instead of our stock. See “ —Taxation of Stockholders” below for a discussion of the tax consequences to stockholders upon receipt of such dividends.

Distributions we make to our stockholders may be made from our cash assets or by liquidation of our investments, if necessary. We may recognize gains or losses from such liquidations. In the event we recognize net capital gains from such transactions, investors may receive a larger capital gain distribution than they would have received in the absence of such transactions.

Failure to Qualify as a RIC

If we fail to satisfy the 90% Income Test for any taxable year or the Diversification Tests for any quarter of a taxable year, we might nevertheless continue to qualify as a RIC for such year if certain relief provisions of the Code applied (which might, among other things, require us to pay certain corporate-level U.S. federal taxes or to dispose of certain assets). If we failed to qualify for treatment as a RIC and such relief provisions did not apply to us, we would be subject to U.S. federal income tax on all of our taxable income at regular corporate U.S. federal income tax rates (and we also would be subject to any applicable state and local taxes), regardless of whether we make any distributions to our stockholders. We would not be able to deduct distributions to our stockholders, nor would distributions to our stockholders be required to be made for U.S. federal income tax purposes. Any distributions we make generally would be taxable to our U.S. stockholders as ordinary dividend income and, subject to certain limitations under the Code, would be eligible for the 20% maximum rate applicable to individuals and other non-corporate U.S. stockholders, to the extent of our current or accumulated earnings and profits. Subject to certain limitations under the Code, U.S. stockholders that are corporations for U.S. federal income tax purposes would be eligible for the dividends-received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s adjusted tax basis, and any remaining distributions would be treated as a capital gain.

Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that re-qualify as a RIC no later than the second year following the non-qualifying year, we could be subject to U.S. federal income tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized during the 10-year period after our requalification as a RIC, unless we made a special election to pay corporate-level U.S. federal income tax on such net built-in gains at the time of our requalification as a RIC. We may decide to be taxed as a regular corporation even if we would otherwise qualify as a RIC if we determine that treatment as a corporation for a particular year would be in our best interests.

AVAILABLE INFORMATION

We file with or submit to the SEC annual, quarterly and current periodic reports, proxy statements and other information meeting the informational requirements of the Exchange Act. This information is available free of charge on our website at http://www.crescentbdc.com. Information contained on our website is not incorporated into this Annual Report and you should not consider such information to be part of this Annual Report. Such information is also available from the EDGAR database on the SEC’s web site at http://www.sec.gov.

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Item 1A. Risk Factors

Investing in our common stock involves a number of significant risks. Before an investor invests in our common stock, the investor should be aware of various risks, including those described below. The investor should carefully consider these risk factors, together with all of the other information included in this Annual Report, before the investor decides whether to make an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair business, financial condition, and/or operating results. If any of the following events occur, our business, financial condition, and results of operations could be materially and adversely affected. In such case, the net asset value of our common stock and the trading price, if any, of our securities could decline, and an investor may lose all or part of his or her investment.

Risks Relating to the COVID-19 pandemic

Global economic, political and market conditions caused by the current public health crisis have (and in the future, could further) adversely affect our business, results of operations and financial condition and those of our portfolio companies.

A novel strain of coronavirus initially appeared in China in late 2019 and rapidly spread to other countries, including the United States. In an attempt to slow the spread of the coronavirus, governments around the world, including the United States, placed restrictions on travel, issued stay at home” orders and ordered the temporary closure of certain businesses, such as factories and retail stores. Such restrictions and closures impacted supply chains, consumer demand and/or the operations of many businesses. As jurisdictions around the United States and the world continue to experience surges in cases of COVID-19 and governments consider pausing the lifting of or re-imposing restrictions, there is considerable uncertainty surrounding the full economic impact of the coronavirus pandemic and the long-term effects on the U.S. and global financial markets.

Any disruptions in the capital markets, as a result of the COVID-19 pandemic or otherwise, may increase the spread between the yields realized on risk-free and higher risk securities and can result in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of credit risk in the broadly syndicated market. These and any other unfavorable economic conditions could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. During the spring of 2020, the occurrence of these events negatively impacted the fair value of the investments that we held and, if they were to occur again in the future, could limit our investment originations (including as a result of the investment professionals of our Adviser diverting their time to the restructuring of certain investments), negatively impact our operating results and limit our ability to grow. In addition, our success depends in substantial part on the management, skill and acumen of our Adviser, whose operations may be adversely impacted, including through quarantine measures and travel restrictions imposed on its investment professionals or service providers, or any related health issues of such investment professionals or service providers.

In addition, the restrictions and closures and related market conditions resulted in, and if re-imposed in the future, could further result in certain of our portfolio companies halting or significantly curtailing operations and negative impacts to the supply chains of certain of our portfolio companies. The financial results of middle-market companies, like those in which we invest, experienced deterioration, which could ultimately lead to difficulty in meeting debt service requirements and an increase in defaults, and further deterioration will further depress the outlook for those companies. Further, adverse economic conditions decreased and may in the future decrease the value of collateral securing some of our loans and the value of our equity investments. Such conditions have required and may in the future require us to modify the payment terms of our investments, including changes in PIK interest provisions and/or cash interest rates. The performance of certain of our portfolio companies has been, and in the future may be, negatively impacted by these economic or other conditions, which can result in our receipt of reduced interest income from our portfolio companies and/or realized and unrealized losses related to our investments, and, in turn, may adversely affect distributable income and have a material adverse effect on our results of operations. In addition, as governments ease COVID-19 related restrictions, certain of our portfolio companies may experience increased health and safety expenses, payroll costs and other operating expenses.

As the potential long-term impact of the coronavirus pandemic remains difficult to predict, the extent to which the pandemic could negatively affect our and our portfolio companies’ operating results or the duration or reoccurrence of any potential business or supply-chain disruption is uncertain. Any potential impact to our results of operations will depend to a large extent on future developments regarding the duration and severity of the pandemic and the actions taken by governments (including stimulus measures or the lack thereof) and their citizens to contain the coronavirus or treat its impact, all of which are beyond our control.

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Risks Relating to our Business and Structure

We are dependent upon key personnel of Crescent and the Adviser.

We do not have any internal management capacity or employees. Our ability to achieve our investment objective will depend on our ability to manage our business and to grow our investments and earnings. This will depend, in turn, on the diligence, skill and network of business contacts of Crescent’s senior professionals. We expect that these senior professionals will evaluate, negotiate, structure, close and monitor our investments in accordance with the terms of our Investment Advisory Agreement. We can offer no assurance, however, that Crescent’s senior professionals will continue to provide investment advice to us. If these individuals do not maintain their employment or other relationships with Crescent and do not develop new relationships with other sources of investment opportunities available to us, we may not be able to grow our investment portfolio. In addition, individuals with whom Crescent’s senior professionals have relationships are not obligated to provide us with investment opportunities. Therefore, we can offer no assurance that such relationships will generate investment opportunities for us.

The Adviser is an affiliate of Crescent and will depend upon access to the investment professionals and Crescent’s other resources to fulfill its obligations to us under the Investment Advisory Agreement. The Adviser will also depend upon such investment professionals to obtain access to deal flow generated by Crescent. Under a Resource Sharing Agreement, Crescent has agreed to provide the Adviser with the experienced investment professionals necessary to fulfill its obligations under the Investment Advisory Agreement. The Resource Sharing Agreement provides that Crescent will make available to the Adviser experienced investment professionals and access to Crescent’s resources for purposes of evaluating, negotiating, structuring, closing and monitoring our investments. Although we are a third-party beneficiary of the Resource Sharing Agreement, it may be terminated by either party on 60 days’ notice. We cannot assure investors that Crescent will fulfill its obligations under the agreement. We cannot assure investors that the Adviser will enforce the Resource Sharing Agreement if Crescent fails to perform, that such agreement will not be terminated by either party or that we will continue to have access to Crescent’s investment professionals and its affiliates or their information and deal flow.

Crescent’s and the Adviser’s investment professionals, which are currently composed of the same personnel, have substantial responsibilities in connection with the management of other Crescent clients. Crescent’s personnel may be called upon to provide managerial assistance to our portfolio companies. These demands on their time, which may increase as the number of investments grow, may distract them or slow our rate of investment.

The Adviser’s investment committee, which provides oversight over our investment activities, is provided to us by the Adviser under the Investment Advisory Agreement. The loss of any member of the Adviser’s investment committee or of Crescent’s other senior professionals would limit our ability to achieve our investment objective and operate as we anticipate. This could have a material adverse effect on our financial condition, results of operations and cash flows.

Further, we depend upon Crescent to maintain its relationships with private equity sponsors, placement agents, investment banks, management groups and other financial institutions, and we expect to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If Crescent fails to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom Crescent’s senior professionals have relationships are not obligated to provide us with investment opportunities, and we can offer no assurance that these relationships will generate investment opportunities in the future.

We may not replicate the historical results achieved by Crescent.

Our primary focus in making investments may differ from those of existing investment funds, accounts or other investment vehicles that are or have been managed by members of the Adviser’s investment committee or by Crescent. Past performance should not be relied upon as an indication of future results. There can be no guarantee that we will replicate our own historical performance, the historical success of Crescent or the historical performance of investment funds, accounts or other investment vehicles that are or have been managed by members of the Adviser’s investment committee or by Crescent or its employees, and we caution investors that our investment returns could be substantially lower than the returns achieved by them in prior periods. We cannot assure you that we will be profitable in the future or that the Adviser will be able to continue to implement our investment objectives with the same degree of success that it has had in the past. Additionally, all or a portion of the prior results may have been achieved in particular market conditions which may never be repeated. Moreover, current or future market volatility and regulatory uncertainty may have an adverse impact on our future performance.

We depend on Crescent to manage our business effectively.

Our ability to achieve our investment objective will depend on our ability to manage our business and to grow our investments and earnings. This will depend, in turn, on Crescent’s ability to identify, invest in and monitor portfolio companies that meet our investment criteria. The achievement of our investment objectives on a cost-effective basis will depend upon Crescent’s execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our access to financing on acceptable terms. Crescent’s investment professionals will have substantial responsibilities in connection with the management of other investment funds, accounts and investment vehicles. Crescent’s personnel may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them from servicing new investment opportunities for us or slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition, results of operations and cash flows.

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Global capital markets could enter a period of severe disruption and instability. These conditions have historically affected and could again materially and adversely affect debt and equity capital markets in the United States and around the world and our business.

From time to time, the global capital markets may experience periods of disruption and instability resulting in increasing spreads between the yields realized on riskier debt securities and those realized on risk-free securities and a lack of liquidity in parts of the debt capital markets, significant write-offs in the financial services sector relating to subprime mortgages and the re-pricing of credit risk in the broadly syndicated market. Deteriorating market conditions could result in increasing volatility and illiquidity in the global credit, debt and equity markets generally. The duration and ultimate effect of such market conditions cannot be forecasted. Deteriorating market conditions and uncertainty regarding economic markets generally could result in declines in the market values of potential investments or declines in the market values of investments after they are made or acquired by us and affect the potential for liquidity events involving such investments or portfolio companies.

Such declines may be exacerbated by other events, such as the failure of significant financial institutions or hedge funds, dislocations in other investment markets or other extrinsic events. Applicable accounting standards require us to determine the fair value of our investments as the amount that would be received in an orderly transaction between market participants at the measurement date. While most of our investments are not publicly traded, as part of the valuation process we consider a number of measures, including comparison to publicly traded securities. As a result, volatility in the public capital markets can adversely affect our investment valuations.

During any such periods of market disruption and instability, we and other companies in the financial services sector may have limited access, if any, to alternative markets for debt and equity capital. Equity capital may be difficult to raise because, subject to some limited exceptions that will apply to us as a BDC, we will generally not be able to issue additional shares of our common stock at a price less than net asset value (“NAV”) without first obtaining approval for such issuance from our stockholders and independent directors. In addition, our ability to incur indebtedness (including by issuing preferred stock) is limited by applicable regulations such that our asset coverage, as defined in the 1940 Act, as amended, must equal at least 150% immediately after each time we incur indebtedness. The debt capital that will be available, if any, may be at a higher cost and on less favorable terms and conditions in the future. Any inability to raise capital could have a negative effect on our business, financial condition and results of operations.

A prolonged period of market illiquidity may cause us to reduce the volume of loans and debt securities we originate and/or fund and adversely affect the value of our portfolio investments, which could have a material and adverse effect on our business, financial condition, results of operations and cash flows.

Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations.

Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general, could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on favorable terms. In addition, a decreased U.S. government credit rating could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock.

Deterioration in the economic conditions in the Eurozone and globally, including instability in financial markets, may pose a risk to our business. In recent years, financial markets have been affected at times by a number of global macroeconomic and political events, including the following: large sovereign debts and fiscal deficits of several countries in Europe and in emerging markets jurisdictions, levels of non-performing loans on the balance sheets of European banks, the potential effect of any European country leaving the Eurozone, the potential effect of the United Kingdom leaving the European Union, and market volatility and loss of investor confidence driven by political events. Market and economic disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels of incurrence and default on consumer debt and home prices, among other factors. We cannot assure you that market disruptions in Europe, including the increased cost of funding for certain governments and financial institutions, will not impact the global economy, and we cannot assure you that assistance packages will be available, or if available, be sufficient to stabilize countries and markets in Europe or elsewhere affected by a financial crisis. To the extent uncertainty regarding any economic recovery in Europe negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be significantly and adversely affected.

The current global financial market situation, as well as various social and political circumstances in the U.S. and around the world, including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, adverse effects of climate crisis and global health epidemics (including the COVID-19), may contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Additionally, the U.S. government’s credit and deficit concerns, the European sovereign debt crisis, and the potential trade war with China, could cause interest rates to be volatile, which may negatively impact our ability to access the debt markets on favorable terms.

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Adverse developments in the credit markets may impair our ability to enter into new debt financing arrangements.

During the economic downturn in the United States that began in mid-2007, many commercial banks and other financial institutions stopped lending or significantly curtailed their lending activity. In addition, in an effort to stem losses and reduce their exposure to segments of the economy deemed to be high risk, some financial institutions limited refinancing and loan modification transactions and reviewed the terms of existing facilities to identify bases for accelerating the maturity of existing lending facilities. If these conditions recur, it may be difficult for us to enter into a new credit or other borrowing facility, obtain other financing to finance the growth of its investments, or refinance any outstanding indebtedness on acceptable economic terms, or at all.

The Adviser, the investment committee of the Adviser, Crescent and their affiliates, officers, directors and employees may face certain conflicts of interest.

As a result of our arrangements with Crescent, the Adviser and the Adviser’s investment committee, there may be times when the Adviser or such persons have interests that differ from those of our stockholders, giving rise to a conflict of interest.

The members of the Adviser’s investment committee serve, or may serve, as officers, directors, members, or principals of entities that operate in the same or a related line of business as we do, or of investment funds, accounts, or investment vehicles managed by Crescent and/or its affiliates. Similarly, Crescent and its affiliates may have other clients with similar, different or competing investment objectives.

In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of, or which may be adverse to the interests of, us or our stockholders. For example, Crescent has, and will continue to have management responsibilities for other investment funds, accounts and investment vehicles. There is a potential that we will compete with these funds, and other entities managed by Crescent and its affiliates, for capital and investment opportunities. As a result, members of the Adviser’s investment committee who are affiliated with Crescent will face conflicts in the allocation of investment opportunities among us, and other investment funds, accounts and investment vehicles managed by Crescent and its affiliates and may make certain investments that are appropriate for us but for which we receive a relatively small allocation or no allocation at all. Crescent intends to allocate investment opportunities among eligible investment funds, accounts and investment vehicles in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time and we may not be given the opportunity to participate in investments made by investment funds managed by Crescent or its affiliates. We expect that Crescent and the Adviser will agree with our Board that, subject to applicable law, allocations among us and other investment funds, accounts and investment vehicles managed by Crescent will generally be made based on capital available for investment in the asset class being allocated and the respective governing documents of such investment funds, accounts and investment vehicles. We expect that available capital for our investments will be determined based on the amount of cash on-hand, existing commitments and reserves, if any, the targeted leverage level, targeted asset mix and diversification requirements and other investment policies and restrictions set by our Board or as imposed by applicable laws, rules, regulations or interpretations. However, there can be no assurance that we will be able to participate in all investment opportunities that are suitable to us.

Further, to the extent permitted by applicable law, we and our affiliates may own investments at different levels of a portfolio company’s capital structure or otherwise own different classes of a portfolio company’s securities, which may give rise to conflicts of interest or perceived conflicts of interest. Conflicts may also arise because decisions regarding our portfolio may benefit our affiliates. Our affiliates may pursue or enforce rights with respect to one of its portfolio companies, and those activities may have an adverse effect on us.

Crescent’s principals and employees, the Adviser or their affiliates may, from time to time, possess material non-public information, limiting our investment discretion.

Crescent’s executive officers and directors, principals and other employees, including members of the Adviser’s investment committee, may serve as directors of, or in a similar capacity with, portfolio companies in which we invest, the securities of which are purchased or sold on our behalf and may come into possession of material non-public information with respect to issuers in which we may be considering making an investment. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies, Crescent’s policies or as a result of applicable law or regulations, we could be prohibited for a period of time or indefinitely from purchasing or selling the securities of such companies, or we may be precluded from providing such information or other ideas to other funds affiliated with Crescent that might benefit from such information, and this prohibition may have an adverse effect on us.

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Our management and incentive fee structure may create incentives for the Adviser that are not fully aligned with our stockholders’ interests and may induce the Adviser to make speculative investments.

In the course of our investing activities, we will pay management and incentive fees to the Adviser. We have entered into the Investment Advisory Agreement with the Adviser that provides that these fees are based on the value of our gross assets (which includes assets purchased with borrowed amounts or other forms of leverage but excludes cash and cash equivalents), instead of net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable). As a result, investors in our common stock will invest on a “gross” basis and receive distributions on a “net” basis after expenses, including the costs of leverage, resulting in a lower rate of return than one might achieve if distributions were made on a gross basis. Because our management fees are based on the value of our gross assets, incurrence of debt or the use of leverage will increase the management fees due to the Adviser. As such, the Adviser may have an incentive to use leverage to make additional investments. In addition, as additional leverage would magnify positive returns, if any, on our portfolio, the incentive fee would become payable to the Adviser (i.e., exceed the Hurdle Amount (as defined herein under the heading “Incentive Fee”)) at a lower average return on our portfolio. Thus, if we incur additional leverage, the Adviser may receive additional incentive fees without any corresponding increase (and potentially with a decrease) in the performance of our portfolio.

Additionally, under the incentive fee structure, the Adviser may benefit when capital gains are recognized and, because the Adviser will determine when to sell a holding, the Adviser will control the timing of the recognition of such capital gains. As a result of these arrangements, there may be times when the management team of the Adviser has interests that differ from those of our stockholders, giving rise to a conflict. Furthermore, there is a risk the Adviser will make more speculative investments in an effort to receive this payment. PIK interest and OID would increase our pre-incentive fee net investment income by increasing the size of the loan balance of underlying loans and increasing our assets under management and would make it easier for the Adviser to surpass the Hurdle Amount and increase the amount of incentive fees payable to the Adviser.

The part of the incentive fee payable to the Adviser relating to our net investment income is computed and paid on income that may include interest income that has been accrued but not yet received in cash. This fee structure may give rise to a conflict of interest for the Adviser to the extent that it encourages the Adviser to favor debt financings that provide for deferred interest, rather than current cash payments of interest. The Adviser may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because, under the Investment Advisory Agreement, the Adviser is not obligated to reimburse us for incentive fees it receives even if we subsequently incur losses or never receives in cash the deferred income that was previously accrued.

Our Board is charged with protecting our interests by monitoring how the Adviser addresses these and other conflicts of interest associated with its services and compensation. While our Board is not expected to review or approve each investment decision or incurrence of leverage, our independent directors will periodically review the Adviser’s services and fees as well as its portfolio management decisions and portfolio performance. In connection with these reviews, our independent directors will consider whether the Adviser’s fees and expenses (including those related to leverage) remain appropriate.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent it so invests, bear its ratable share of any such investment company’s expenses, including management and performance fees. We also remain obligated to pay management and incentive fees to the Adviser with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our stockholders bears his or her share of the management and incentive fees of the Adviser as well as indirectly bearing the management and performance fees and other expenses of any investment companies in which we invest.

Conflicts of interest may be created by the valuation process for certain portfolio holdings.

We make many of our portfolio investments in the form of loans and securities that are not publicly traded and for which no market based price quotation is available. As a result, our Board will determine the fair value of these loans and securities in good faith as described below in “—The majority of our portfolio investments are recorded at fair value as determined in good faith by our Board and, as a result, there may be uncertainty as to the value of our portfolio investments.” Each of the interested members of our Board has an indirect pecuniary interest in the Adviser. The participation of the Adviser’s investment professionals in our valuation process, and the pecuniary interest in the Adviser by certain members of the our Board, could result in a conflict of interest as the Adviser’s management fee is based, in part, on the value of our gross assets, and our incentive fees will be based, in part, on realized gains and realized and unrealized losses.

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Conflicts may arise related to other arrangements with Crescent and the Adviser and other affiliates.

We have entered into a license agreement with Crescent under which Crescent has agreed to grant us a non-exclusive, royalty-free license to use the name “Crescent Capital.” In addition, the Administration Agreement with the Administrator, an affiliate of Crescent, requires we pay to the Administrator our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, such as rent and our allocable portion of the cost of our chief financial officer and chief compliance officer and their respective staffs. In addition, the Adviser has entered into a Resource Sharing Agreement with Crescent pursuant to which Crescent provides the Adviser with the resources necessary to fulfill its obligations under the Investment Advisory Agreement. These agreements create conflicts of interest that the independent members of our Board will monitor. For example, under the terms of the license agreement, we will be unable to preclude Crescent from licensing or transferring the ownership of the “Crescent Capital” name to third parties, some of whom may compete against us. Consequently, it will be unable to prevent any damage to goodwill that may occur as a result of the activities of Crescent or others. Furthermore, in the event the license agreement is terminated, we will be required to change our name and cease using “Crescent Capital” as part of our name. Any of these events could disrupt our recognition in the market place, damage any goodwill it may have generated and otherwise harm its business.

Our Investment Advisory Agreement was negotiated with the Adviser and the Administration Agreement was negotiated with the Administrator, which are both our related parties.

The Investment Advisory Agreement, and the Administration Agreement were negotiated between related parties. Consequently, their terms, including fees payable to the Adviser, may not be as favorable to us as if they had been negotiated exclusively with an unaffiliated third party. In addition, we may desire not to enforce, or to enforce less vigorously, its rights and remedies under these agreements because of our desire to maintain our ongoing relationship with the Adviser, the Administrator and their respective affiliates. Any such decision, however, could breach our fiduciary obligations to its stockholders.

The Adviser has limited liability and is entitled to indemnification under the Investment Advisory Agreement.

Under the Investment Advisory Agreement, the Adviser has not assumed any responsibility to us other than to render the services called for under that agreement. The Adviser will not be responsible for any action of our Board in following or declining to follow the Adviser’s advice or recommendations. Under the Investment Advisory Agreement the Adviser, its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including, without limitation, its general partner and the Administrator, and any person controlling or controlled by the Adviser will not be liable to us, any of our subsidiaries, our directors, our stockholders or any subsidiary’s stockholders or partners for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting gross negligence, willful misfeasance, bad faith or reckless disregard of the duties that the Adviser owes to us under the Investment Advisory Agreement. In addition, as part of the Investment Advisory Agreement, we have agreed to indemnify the Adviser and each of its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including, without limitation, its general partner and the Administrator, and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by such party in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of us or our security holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or obligations under the Investment Advisory Agreement or otherwise as an investment adviser of us, except in respect of any liability to us or our security holders to which such party would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s duties and obligations under the Investment Advisory Agreement. These protections may lead the Adviser to act in a riskier manner when acting on our behalf than the Adviser would when acting for its own account.

Our ability to enter into transactions with our affiliates is restricted.

We are prohibited under the 1940 Act from participating in certain transactions with our affiliates without the prior approval of our independent directors and, in some cases, the SEC. We consider the Adviser and its affiliates, including Crescent, to be our affiliates for such purposes. In addition, any person that owns, directly or indirectly, 5% or more of our outstanding voting securities will be our affiliate for purposes of the 1940 Act, and we are generally prohibited from buying or selling any security from or to such affiliate without the prior approval of our independent directors. We consider the Adviser and its affiliates, including Crescent, to be our affiliates for such purposes. The 1940 Act also prohibits certain “joint” transactions with certain of our affiliates, which could include investments in the same portfolio company, without prior approval of our independent directors and, in some cases, of the SEC. We are prohibited from buying or selling any security from or to any person who owns more than 25% of our voting securities or certain of that person’s affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC.

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We may, however, invest alongside Crescent’s investment funds, accounts and investment vehicles in certain circumstances where doing so is consistent with our investment strategy as well as applicable law and SEC staff interpretations or exemptive orders. For example, we may invest alongside such investment funds, accounts and investment vehicles consistent with guidance promulgated by the SEC staff to purchase interests in a single class of privately placed securities so long as certain conditions are met, including that Crescent, acting on our behalf and on behalf of such investment funds, accounts and investment vehicles, negotiates no term other than price. We may also invest alongside Crescent’s investment funds, accounts and investment vehicles as otherwise permissible under regulatory guidance, applicable regulations or exemptive orders and Crescent’s allocation policy. If the Company is prohibited by applicable law from investing alongside Crescent’s investment funds, accounts and investment vehicles with respect to an investment opportunity, we may not be able to participate in such investment opportunity. This allocation policy provides that allocations among us and investment funds, accounts and investment vehicles managed by Crescent and its affiliates will generally be made pro rata based on capital available for investment, as determined, in our case, by our Board as well as the terms of our governing documents and those of such investment funds, accounts and investment vehicles. It is our policy to base our determinations on such factors as: the amount of cash on-hand, existing commitments and reserves, if any, our targeted leverage level, our targeted asset mix and diversification requirements and other investment policies and restrictions set by our Board or imposed by applicable laws, rules, regulations or interpretations. We expect that these determinations will be made similarly for investment funds, accounts and investment vehicles managed by Crescent. However, we can offer no assurance that investment opportunities will be allocated to us fairly or equitably in the short-term or over time.

In situations where co-investment with investment funds, accounts and investment vehicles managed by Crescent is not permitted or appropriate, such as when there is an opportunity to invest in different securities of the same issuer or where the different investments could be expected to result in a conflict between our interests and those of Crescent’s clients, subject to the limitations described in the preceding paragraph, Crescent will need to decide which client will proceed with the investment. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates. These restrictions will limit the scope of investment opportunities that would otherwise be available to us.

We, the Adviser and Crescent have been granted exemptive relief from the SEC which permits greater flexibility to negotiate the terms of co-investments if our Board determines that it would be advantageous for us to co-invest with investment funds, accounts and investment vehicles managed by Crescent in a manner consistent with our investment objectives, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors. We believe that co-investment by us and investment funds, accounts and investment vehicles managed by Crescent may afford us additional investment opportunities and an ability to achieve a more varied portfolio. Accordingly, our exemptive order permits us to invest with investment funds, accounts and investment vehicles managed by Crescent in the same portfolio companies under circumstances in which such investments would otherwise not be permitted by the 1940 Act. The exemptive relief permitting co-investment transactions generally applies only if our independent directors and directors who have no financial interest in such transaction review and approve in advance each co-investment transaction.

Our ability to sell or otherwise exit investments also invested in by other Crescent investment vehicles is restricted.

We may be considered affiliates with respect to certain of our portfolio companies because our affiliates, which may include certain investment funds, accounts or investment vehicles managed by Crescent, also hold interests in these portfolio companies and as such these interests may be considered a joint enterprise under the 1940 Act. To the extent that our interests in these portfolio companies may need to be restructured in the future or to the extent that we choose to exit certain of these transactions, our ability to do so will be limited. We intend to seek exemptive relief in relation to certain joint transactions; however, there is no assurance that we will obtain relief that would permit us to negotiate future restructurings or other transactions that may be considered a joint enterprise.

We operate in an increasingly competitive market for investment opportunities, which could make it difficult for us to identify and make investments that are consistent with our investment objectives.

A number of entities compete with us to make the types of investments that we make and plan to make. We compete with public and private funds, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the source-of-income, asset diversification and distribution requirements we must satisfy to maintain our RIC qualification. The competitive pressures we face may have a material adverse effect on our business, financial condition, results of operations and cash flows. As a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objectives.

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With respect to the investments we make, we will not seek to compete based primarily on the interest rates we will offer, and we believe that some of our competitors may make loans with interest rates that will be lower than the rates we offer. In the secondary market for acquiring existing loans, we expect to compete generally on the basis of pricing terms. With respect to all investments, we may lose some investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may experience decreased net interest income, lower yields and increased risk of credit loss. We may also compete for investment opportunities with investment funds, accounts and investment vehicles managed by Crescent. Although Crescent will allocate opportunities in accordance with its policies and procedures, allocations to such investment funds, accounts and investment vehicles will reduce the amount and frequency of opportunities available to us and may not be in the best interests of us and our stockholders. Moreover, the performance of investments will not be known at the time of allocation. See —“The Adviser, the investment committee of the Adviser, Crescent and their affiliates, officers, directors and employees may face certain conflicts of interest.”

We will be subject to corporate level income tax if we are unable to qualify as a RIC.

To qualify as a RIC under the Code, we must meet certain source-of-income, asset diversification and distribution requirements. The distribution requirement for a RIC is satisfied if we distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders on an annual basis. We will be subject, to the extent we use debt financing, to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to qualify as a RIC. If we are unable to obtain cash from other sources, we may fail to qualify as a RIC and, thus, may be subject to corporate-level income tax. To qualify as a RIC, we must also meet certain asset diversification requirements at the end of each calendar quarter. Failure to meet these tests may result in our having to dispose of certain investments quickly in order to prevent the loss of our qualifications as a RIC. Because most of our investments will be in private or thinly traded public companies, any such dispositions could be made at disadvantageous prices and may result in substantial losses. If we fail to qualify as a RIC for any reason and become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distributions to our stockholders and the amount of funds available for new investments. Such a failure would have a material adverse effect on us and our stockholders.

We may need to raise additional capital.

We intend to access the capital markets periodically to issue debt or equity securities or borrow from financial institutions in order to obtain additional capital to fund new investments and grow our portfolio of investments. Unfavorable economic conditions could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. A reduction in the availability of new capital could limit our ability to grow. In addition, we will be required to distribute in respect of each taxable year at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, for such taxable year to our stockholders to maintain our qualification as a RIC. Amounts so distributed will not be available to fund new investments or repay maturing debt. An inability on our part to access the capital markets successfully could limit our ability to grow our business and execute our business strategy fully and could decrease our earnings, if any, which would have an adverse effect on the value of our securities.

Further, we may pursue growth through acquisitions or strategic investments in new businesses. Completion and timing of any such acquisitions or strategic investments may be subject to a number of contingencies and risks. There can be no assurance that the integration of an acquired business will be successful or that an acquired business will prove to be profitable or sustainable.

Regulations governing our operation as a BDC affect our ability to, and the way in which we may, raise additional capital.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we will be permitted as a BDC to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, as amended, equals at least 150% of our gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments at a time when such sales may be disadvantageous to us in order to repay a portion of its indebtedness. If we issue senior securities, we will be exposed to typical risks associated with leverage, including an increased risk of loss.

Furthermore, equity capital may be difficult to raise because, subject to some limited exceptions we are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, or warrants, options or rights to acquire shares of our common stock, at a price below the then-current NAV per share of our common stock if our Board determines that such sale is in our best interests, and if our stockholders, including a majority of those stockholders that are not affiliated with us, approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). We do not currently have authorization from our stockholders to issue our common stock at a price below the then-current NAV per share.

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Stockholders may be required to pay tax in excess of the cash they receive.

Under our dividend reinvestment plan, if a stockholder owns shares of our common stock, the stockholder will have all cash distributions automatically reinvested in additional shares of our common stock unless such stockholder, or his, her or its nominee on such stockholder’s behalf, specifically “opts out” of the dividend reinvestment plan by delivering a written notice to the plan administrator prior to the record date of the next distribution. If a stockholder does not “opt out” of the dividend reinvestment plan, that stockholder will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, a stockholder may have to use funds from other sources to pay U.S. federal income tax liability on the value of the common stock received. Even if a stockholder chooses to “opt out” of the dividend reinvestment plan, we will have the ability to declare a large portion of a dividend in shares of our common stock instead of in cash in order to satisfy the Annual Distribution Requirement (as defined herein under the heading “Item 1(c). Description of Business—Regulation as a Business Development Company—Election to Be Taxed as a RIC”). As long as a portion of this dividend is paid in cash and certain requirements are met, the entire distribution will be treated as a dividend for U.S. federal income tax purposes. As a result, a stockholder generally will be subject to tax on 100% of the fair market value of the dividend on the date the dividend is received by the stockholder in the same manner as a cash dividend, even though most of the dividend was paid in shares of common stock.

We may have difficulty paying our required distributions if we recognize income before, or without, receiving cash representing such income.

For U.S. federal income tax purposes, we will include in income certain amounts that we have not yet received in cash, such as the accretion of OID. This may arise if we receive warrants in connection with the making of a loan and in other circumstances, or through contracted PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such OID, which could be significant relative to our overall investment activities, or increases in loan balances as a result of contracted PIK arrangements, will be included in income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash.

Since in certain cases we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to maintain our qualification as a RIC. In such a case, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are not able to obtain such cash from other sources, we may fail to qualify as a RIC and thus be subject to corporate-level income tax.

We may be subject to withholding of U. S. Federal income tax on distributions for non-U.S. stockholders.

Distributions by a RIC generally are treated as dividends for U.S. tax purposes, and will be subject to U.S. income or withholding tax unless the stockholder receiving the dividend qualifies for an exemption from U.S. tax, or the distribution is subject to one of the special look-through rules described below. Distributions paid out of net capital gains can qualify for a reduced rate of taxation in the hands of an individual U.S. stockholder, and an exemption from U.S. tax in the hands of a non-U.S. stockholder.

Properly reported dividend distributions by RICs paid out of certain interest income (such distributions, “interest-related dividends”) are generally exempt from U.S. withholding tax for non-U.S. stockholders. Under such exemption, a non-U.S. stockholder generally may receive interest-related dividends free of U.S. withholding tax if the stockholder would not have been subject to U.S. withholding tax if it had received the underlying interest income directly. No assurance can be given as to whether any of our distributions will be eligible for this exemption from U.S. withholding tax or, if eligible, will be designated as such by us. In particular, the exemption does apply to distributions paid in respect of a RIC’s non-U.S. source interest income, its dividend income or its foreign currency gains. In the case shares of our common stock held through an intermediary, the intermediary may withhold U.S. federal income tax even if we designate the payment as a dividend eligible for the exemption. Also, because our common stock will be subject to significant transfer restrictions, and an investment in our common stock will generally be illiquid, non-U.S. stockholders whose distributions on our common stock are subject to U.S. withholding tax may not be able to transfer their shares of our common stock easily or quickly or at all.

We may retain income and capital gains in excess of what is permissible for excise tax purposes and such amounts will be subject to 4% U.S. federal excise tax, reducing the amount available for distribution to stockholders.

We may retain some income and capital gains in the future, including for purposes of providing additional liquidity, which amounts would be subject to the 4% U.S. federal excise tax. In that event, we will be liable for the tax on the amount by which it does not meet the foregoing distribution requirement. See Item 1(c). Description of Business—Regulation as a Business Development Company—Taxation as a RIC.”

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Our business may be adversely affected if it fails to maintain its qualification as a RIC.

To maintain RIC tax treatment under the Code, we must meet the Annual Distribution Requirement, 90% Income Test and Diversification Tests described below and defined and further described in “Item 1(c). Description of Business—Regulation as a Business Development Company—Election to Be Taxed as a RIC.” The Annual Distribution Requirement will be satisfied if we distribute dividends to our stockholders in respect of each taxable year of an amount generally at least equal to 90% of its investment company taxable income, determined without regard to any deduction for distributions paid. In this regard, a RIC may, in certain cases, satisfy the Annual Distribution Requirement by distributing dividends relating to a taxable year after the close of such taxable year under the “spillback dividend” provisions of Subchapter M of the Code. We will be subject to tax, at regular corporate rates, on any retained income and/or gains, including any short-term capital gains or long-term capital gains. We must also satisfy the Excise Tax Avoidance Requirement, which is an additional distribution requirement with respect to each calendar year in order to avoid the imposition of a 4% excise tax on the amount of any under-distribution. Because we use debt financing, we are subject to (i) an asset coverage ratio requirement under the 1940 Act and are subject to (ii) certain financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirements. If we are unable to obtain cash from other sources, or chose or be required to retain a portion of our taxable income or gains, it could (i) be required to pay excise tax and (ii) fail to qualify for RIC tax treatment, and thus become subject to corporate-level income tax on its taxable income (including gains).

The 90% Income Test will be satisfied if we earn at least 90% of its gross income each taxable year from distributions, interest, gains from the sale of stock or securities, or other income derived from the business of investing in stock or securities. The Diversification Tests will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To satisfy the Diversification Tests, at least 50% of the value of our assets at the close of each quarter of each taxable year must consist of cash, cash equivalents (including receivables), U.S. government securities, securities of other RICs, and other acceptable securities, and no more than 25% of the value of its assets can be invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain “qualified publicly traded partnerships.” Failure to meet these requirements may result in us having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses.

We may invest in certain debt and equity investments through taxable subsidiaries and the net taxable income of these taxable subsidiaries will be subject to federal and state corporate income taxes. We also may invest in certain foreign debt and equity investments that could be subject to foreign taxes (such as income tax, withholding, and value added taxes). If we fail to maintain RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution, and the amount of our distributions.

Certain investors are limited in their ability to make significant investments in us.

Private funds that are excluded from the definition of “investment company” either pursuant to Section 3(c)(1) or 3(c)(7) of the 1940 Act are restricted from acquiring directly or through a controlled entity more than 3% of our total outstanding voting stock (measured at the time of the acquisition). Investment companies registered under the 1940 Act and BDCs, such as us, are also currently subject to this restriction as well as other limitations under the 1940 Act that would restrict the amount that they are able to invest in our securities. As a result, certain investors will be limited in their ability to make significant investments in us at a time that they might desire to do so. The SEC has proposed Rule 12d1-4 under the 1940 Act. Subject to certain conditions, proposed Rule 12d1-4 would provide an exemption to permit acquiring funds to invest in the securities of other registered investment companies and BDCs in excess of the limits currently prescribed by the 1940 Act.

Our business could be adversely affected in the event we default under our existing credit facilities or any future credit or other borrowing facility.

We have entered into, and additionally may enter into, one or more credit facilities. The closing of any additional credit facilities is contingent on a number of conditions including, without limitation, the negotiation and execution of definitive documents relating to such credit facility. If we obtain any additional credit facilities, we intend to use borrowings under such credit facilities to make additional investments and for other general corporate purposes. However, there can be no assurance that we will be able to close such additional credit facilities or obtain other financing.

In the event we default under one of our credit facilities or any other future borrowing facility, our business could be adversely affected as we may be forced to sell a portion of our investments quickly and prematurely at what may be disadvantageous prices to us in order to meet our outstanding payment obligations and/or support working capital requirements under the relevant credit facility or such future borrowing facility, any of which would have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, following any such default, the agent for the lenders under any future borrowing facility could assume control of the disposition of any or all of our assets, including the selection of such assets to be disposed and the timing of such disposition, which would have a material adverse effect on our business, ability to pay dividends, financial condition, results of operations and cash flows. If we were unable to obtain a waiver of a default from the lenders or holders of that indebtedness, as applicable, those lenders or holders could accelerate repayment under that indebtedness, which might result in cross-acceleration of other indebtedness. An acceleration could have a material adverse impact on our business, financial condition and results of operations.

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In addition, following any such default, the agent for the lenders under the relevant credit facility or such future credit or other borrowing facility could assume control of the disposition of any or all of our assets, including the selection of such assets to be disposed and the timing of such disposition, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Lastly, as a result of any such default, we may be unable to obtain additional leverage, which could, in turn, affect our return on capital.

Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and increases the risk of investing in us. The risks of investment in a highly leveraged fund include volatility and possible distribution restrictions.

The use of leverage magnifies the potential for gain or loss on amounts invested. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities. However, we have borrowed from, and may in the future issue debt securities to, banks, insurance companies and other lenders. Lenders of these funds have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such lenders to seek recovery against our assets in the event of a default. We may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instruments we may enter into with lenders. In addition, under the terms of our credit facilities and any borrowing facility or other debt instrument we may enter into, we are likely to be required to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged, thereby magnifying losses or eliminating our stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have had we not borrowed. Such a decline would also negatively affect our ability to make dividend payments on our common stock or preferred stock. Our ability to service any debt will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses and any increase in the base management fee payable to the Adviser.

There can be no assurance that our business will generate sufficient cash flow from operations or that future borrowings will be available to us under our credit facilities or otherwise in an amount sufficient to enable us to repay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness on or before it matures. There can be no assurance that we will be able to refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot service our indebtedness, we may have to take actions such as selling assets or seeking additional equity. There can be no assurance that any such actions, if necessary, could be effected on commercially reasonable terms or at all, or on terms that would not be disadvantageous to stockholders or on terms that would not require us to breach the terms and conditions of our existing or future debt agreements.

As a BDC, we are generally required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all of our borrowings and any preferred stock that we may issue in the future, of at least 150%. If this ratio declines below 150%, we will not be able to incur additional debt and could be required to sell a portion of our investments to repay some debt when we are otherwise disadvantageous for us to do so. This could have a material adverse effect on our operations, and we may not be able to make distributions. The amount of leverage that we employ will depend on the Adviser’s assessment of market and other factors at the time of any proposed borrowing. We cannot assure stockholders that we will be able to obtain credit at all or on terms acceptable to it.

We are subject to risks associated with the current interest rate environment, and to the extent we use debt to finance our investments, changes in interest rates may affect our cost of capital and net investment income. Further, changes in LIBOR or its discontinuation may adversely affect the value of LIBOR-indexed securities, loans, and other financial obligations or extensions of credit in our portfolio.

An increase in interest rates from their comparatively low present levels may make it more difficult for our portfolio companies to service their obligations under the debt investments that we hold. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults.

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In July 2017, the head of the United Kingdom Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. However, in March 2021, the FCA announced that most U.S. dollar LIBOR would continue to be published through June 30, 2023 effectively extending the LIBOR transition period to June 30, 2023. However, the FCA has indicated it will not compel panel banks to continue to contribute to LIBOR after the end of 2021 and the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have encouraged banks to cease entering into new contracts that use U.S. dollar LIBOR as a reference rate no later than December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, supports replacing U.S.-dollar LIBOR with the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities. Although there have been a few issuances utilizing SOFR or the Sterling Over Night Index Average, an alternative reference rate that is based on transactions, it is unknown whether these alternative reference rates will attain market acceptance as replacements for LIBOR. Any transition away from LIBOR to alternative reference rates is complex and could have a material adverse effect on our business, financial condition and results of operations, including as a result of any changes in the pricing of our investments, changes to the documentation for certain of our investments and the pace of such changes, disputes and other actions regarding the interpretation of current and prospective loan documentation or modifications to processes and systems.

There can be no assurance that all of the LIBOR-indexed securities, loans, and other financial obligations or extensions of credit in which we are invested do or will include, or be amended to include, an alternative rate-setting methodology to be used in the event that LIBOR ceases to exist. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for or value of any LIBOR- linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations.

To the extent we borrow money to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates would not have a material adverse effect on our net investment income in the event we use debt to finance our investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income.

In addition, a rise in the general level of interest rates typically leads to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates may result in an increase of the amount of our pre-incentive fee net investment income, which could make it easier for us to meet or exceed the Hurdle Amount and, as a result, increase the in incentive fees payable to the Adviser.

In anticipation of the cessation of LIBOR, we may need to renegotiate credit facilities and any credit agreements extending beyond 2022 with our prospective portfolio companies that utilize LIBOR as a factor in determining the interest rate or rely on certain fallback provisions that could cause interest rates to shift to a base rate plus a margin. Any such renegotiations may have a material adverse effect on our business, financial condition and results of operations, including as a result of changes in interest rates payable to us by our portfolio companies or payable by us under our credit facilities.

We are and may be subject to restrictions under our credit facilities and any future credit or other borrowing facility that could adversely impact our business.

Our credit facilities, and any future borrowing facility, may be backed by all or a portion of our loans and securities on which the lenders may have a security interest. We currently pledge and may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instrument we enter into with lenders. Like with its current credit facilities, we expect that any future security interests we grant will be set forth in a pledge and security agreement and evidenced by the filing of financing statements by the agent for the lenders, and we expect that the custodian for our securities serving as collateral for such loan would include in the custodian’s electronic systems notices indicating the existence of such security interests and, following notice of occurrence of an event of default, if any, and during its continuance, will only accept transfer instructions with respect to any such securities from the lender or its designee. Under our current credit facilities, we are subject to customary events of default. If we were to default under the terms of our current credit facilities and any future borrowing facility, the agent for the applicable lenders would be able to assume control of the timing of disposition of the assets pledged under the facility, which could include any or all of our assets securing such debt. Such remedial action would have a material adverse effect on our business, financial condition, results of operations and cash flows.

In addition, the security interests as well as negative covenants under its credit facilities, or any other future borrowing facility, may limit our ability to create liens on assets to secure additional debt and may make it difficult for us to restructure or refinance indebtedness at or prior to maturity or obtain additional debt or equity financing. In addition, if our borrowing base under our credit facilities or any other borrowing facility were to decrease, we would be required to secure additional assets in an amount equal to any borrowing base deficiency. In the event that all of our assets are secured at the time of such a borrowing base deficiency, we could be required to repay advances under the relevant credit facility or any other borrowing facility or make deposits to a collection account, either of which could have a material adverse impact on our ability to fund future investments and to pay dividends.

In addition, under our credit facilities, or any other future borrowing facility, we may be limited as to how borrowed funds may be used, which may include restrictions on geographic and industry concentrations, loan size, payment frequency and status, average life, collateral interests and investment ratings, as well as regulatory restrictions on leverage which may affect the amount of funding that may be obtained.

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There may also be certain requirements relating to portfolio performance, including required minimum portfolio yield and limitations on delinquencies and charge-offs, a violation of which could limit further advances and, in some cases, result in an event of default. An event of default under our credit facilities or any other borrowing facility could result in an accelerated maturity date for all amounts outstanding thereunder, which could have a material adverse effect on our business and financial condition. This could reduce our revenues and, by delaying any cash payment allowed to us under the relevant credit facility or any other borrowing facility until the lenders have been paid in full, reduce our liquidity and cash flow and impair its ability to grow its business and maintain its qualification as a RIC.

We may be the target of litigation.

We may be the target of securities litigation in the future, particularly if the value of shares of our common stock fluctuates significantly. We could also generally be subject to litigation, including derivative actions by stockholders. In addition, our investment activities subject it to litigation relating to the bankruptcy process and the normal risks of becoming involved in litigation by third parties. This risk is somewhat greater where we exercise control or significant influence over a portfolio company’s direction. Any litigation could result in substantial costs and divert management’s attention and resources from our business and cause a material adverse effect on our business, financial condition and results of operations.

There is a risk that investors in our common stock may not receive dividends or that our dividends may not grow over time and that investors in our debt securities may not receive all of the interest income to which they are entitled.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. If we declare a dividend and if more stockholders opt to receive cash distributions rather than participate in its reinvestment plan, we may be forced to sell some of its investments in order to make cash dividend payments.

In addition, due to the asset coverage test applicable to us as a BDC, we may be limited in our ability to make distributions. Certain of our credit facilities may also limit our ability to declare dividends if we default under certain provisions. Further, if we invest a greater amount of assets in equity securities that do not pay current dividends, it could reduce the amount available for distribution.

The above-referenced restrictions on distributions may also inhibit our ability to make required interest payments to holders of our debt, which may cause a default under the terms of its debt agreements. Such a default could materially increase our cost of raising capital, as well as cause us to incur penalties under the terms of its debt agreements.

If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy.

To maintain its status as a BDC, we are not permitted to acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Subject to certain exceptions for follow-on investments and distressed companies, an investment in an issuer that has outstanding securities listed on a national securities exchange may be treated as a qualifying asset only if such issuer has a common equity market capitalization that is less than $250 million at the time of such investment. Subject to certain exceptions for follow-on investments and investments in distressed companies, an investment in an issuer that has outstanding securities listed on a national securities exchange may be treated as qualifying assets only if such issuer has a common equity market capitalization that is less than $250 million at the time of such investment.

We may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to BDCs. As a result of such violation, specific rules under the 1940 Act could prevent us, for example, from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inappropriate times in order to come into compliance with the 1940 Act. If we need to dispose of such investments quickly, it could be difficult to dispose of such investments on favorable terms. We may not be able to find a buyer for such investments and, even if we do find a buyer, we may have to sell the investments at a substantial loss. Any such outcomes would have a material adverse effect on our business, financial condition, results of operations and cash flows.

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The majority of our portfolio investments are recorded at fair value as determined in good faith by our Board and, as a result, there may be uncertainty as to the value of our portfolio investments.

Many of our portfolio investments are in the form of loans and securities that are not publicly traded. The fair value of loans, securities and other investments that are not publicly traded may not be readily determinable, and we will value these investments at fair value as determined in good faith by our Board, including to reflect significant events affecting the value of our investments. Most, if not all, of our investments (other than cash and cash equivalents) will be classified as Level 3 under the FASB Accounting Standards Codification, Fair Value Measurements and Disclosures (ASC Topic 820). This means that our portfolio valuations will be based on unobservable inputs and our own assumptions about how market participants would price the asset or liability in question. We expect that inputs into the determination of fair value of our portfolio investments will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. We retain the services of one or more independent service providers to review the valuation of these loans and securities. However, the ultimate determination of fair value will be made by our Board and not by such third-party valuation firm. The types of factors that our Board may take into account in determining the fair value of our investments generally include, as appropriate, comparison to publicly-traded securities including such factors as yield, maturity and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future, comparisons to publicly traded companies, relevant credit market indices and other relevant factors.

Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these loans and securities existed. Also, since these valuations are, to a large extent, based on estimates, comparisons and qualitative evaluations of private information, our fair valuation process could make it more difficult for investors to accurately value our investments and could lead to undervaluation or overvaluation of our securities. In addition, the valuation of these types of securities may result in substantial write-downs and earnings volatility. Also, privately held companies frequently have less diverse product lines and smaller market presence than larger public competitors.

Our NAV could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such loans and securities. Further, our NAV as of a particular date may be materially greater than or less than the value that would be realized if our assets were to be liquidated as of such date. For example, if we were required to sell a certain asset or all or a substantial portion of our assets on a particular date, the actual price that we would realize upon the disposition of such asset or assets could be materially less than the value of such asset or assets as reflected in our NAV. Volatile market conditions could also cause reduced liquidity in the market for certain assets, which could result in liquidation values that are materially less than the values of such assets as reflected in the NAV.

We will adjust quarterly the valuation of our portfolio to reflect our Board’s determination of the fair value of each investment in our portfolio. Any changes in fair value are recorded in our statement of operations as net change in unrealized appreciation or depreciation.

We may experience fluctuations in our quarterly operating results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including the interest rate payable on the loans and debt securities we acquire, the default rate on such loans and securities, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. In light of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

New or modified laws or regulations governing our operations may adversely affect our business.

We and our portfolio companies are subject to regulation by laws at the U.S. federal, state and local levels. These laws and regulations, as well as their interpretation, may change from time to time, including as the result of interpretive guidance or other directives from the U.S. President and others in the executive branch, and new laws, regulations and interpretations may also come into effect. Any such new or changed laws or regulations could have a material adverse effect on our business. In addition, if we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of its business and may be subject to civil fines and criminal penalties.

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Additionally, changes to the laws and regulations governing our operations, including those associated with RICs, may cause us to alter our investment strategy in order to avail our self of new or different opportunities or result in the imposition of corporate-level taxes on us. Such changes could result in material differences to the strategies and plans set forth therein and may shift our investment focus from the areas of Crescent’s expertise to other types of investments in which Crescent may have little or no expertise or experience. Any such changes, if they occur, could have a material adverse effect on our results of operations and the value of an investor’s investment. If we invest in commodity interests in the future, the Adviser may determine not to use investment strategies that trigger additional regulation by the U.S. Commodity Futures Trading Commission (“CFTC”) or may determine to operate subject to CFTC regulation, if applicable. If we or the Adviser were to operate subject to CFTC regulation, we may incur additional expenses and would be subject to additional regulation.

On January 20, 2021, Mr. Joseph R. Biden was inaugurated as President of the United States. As a candidate, President Biden called for significant policy changes and the reversal of several of the prior presidential administration’s policies, including significant changes to U.S. fiscal, tax, trade, healthcare, immigration, foreign, and government regulatory policy. To the extent the U.S. Congress or the current presidential administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation, interest rates, fiscal or monetary policy and other areas in ways that adversely impact us or our portfolio companies.

Further, there has been increasing commentary amongst regulators and intergovernmental institutions, including the Financial Stability Board and International Monetary Fund, on the topic of so called “shadow banking” (a term generally taken to refer to credit intermediation involving entities and activities outside the regulated banking system). We are an entity outside the regulated banking system and certain of our activities may be argued to fall within this definition and, in consequence, may be subject to regulatory developments. As a result, we and the Adviser could be subject to increased levels of oversight and regulation. This could increase costs and limit operations. In an extreme eventuality, it is possible that such regulations could render our continued operation unviable and lead to our premature termination or restructuring.

The United Kingdom referendum decision to leave the European Union may create significant risks and uncertainty for global markets and our investments.

On January 31, 2020, the United Kingdom (“UK”) officially withdrew from the European Union (“EU”), commonly referred to as “Brexit”. Following a transition period, the UK and the EU signed a Trade and Cooperation Agreement (“UK/EU Trade Agreement”), which came into full force on May 1, 2021 and set out the foundation of the economic and legal framework for trade between the UK and the EU. As the UK/EU Trade Agreement is a new legal framework, the implementation of the UK/EU Trade Agreement may result in uncertainty in its application and periods of volatility in both the UK and wider European markets. The UK’s exit from the EU is expected to result in additional trade costs and disruptions in this trading relationship. Furthermore, there is the possibility that either party may impose tariffs on trade in the future in the event that regulatory standards between the EU and the UK diverge. The terms of the future relationship may cause continued uncertainty in the global financial markets, and adversely affect our ability, and the ability of our portfolio companies, to execute our respective strategies and to receive attractive returns.

In particular, currency volatility may mean that our returns and the returns of our portfolio companies will be adversely affected by market movements and may make it more difficult, or more expensive, for us to implement appropriate currency hedging. Potential declines in the value of the British Pound and/or the euro against other currencies, along with the potential downgrading of the UK’s sovereign credit rating, may also have an impact on the performance of any of our portfolio companies located in the UK or Europe.

In addition to the effects on our investments in European issuers, the unavoidable uncertainties and events related to Brexit could negatively affect the value and liquidity of the our other investments, increase taxes and costs of business and cause volatility in currency exchange rates and interest rates. European, UK or worldwide political, regulatory, economic or market conditions and could contribute to instability in political institutions, regulatory agencies and financial markets. Brexit could also lead to legal uncertainty and politically divergent national laws and regulations as the new relationship between the UK and EU is further defined and as the UK determines which EU laws to replace or replicate. In addition, Brexit could lead to further disintegration of the EU and related political stresses (including those related to sentiment against cross border capital movements and activities of investors like us), prejudice to financial services businesses that are conducting business in the EU and which are based in the UK, legal uncertainty regarding achievement of compliance with applicable financial and commercial laws and regulations in view of the expected steps to be taken pursuant to or in contemplation of Brexit. Any of these effects of Brexit, and others that cannot be anticipated, could adversely affect the Company’s business, results of operations and financial condition.

Our Board may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

Our Board has the authority, except as otherwise provided in the 1940 Act, to modify or waive certain of our investment objectives, operating policies and strategies without prior notice and without stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. Under Maryland law, we also cannot be dissolved without prior stockholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and the market price of its common stock. Nevertheless, any such changes could adversely affect our business and impair our ability to make distributions to our stockholders.

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The Adviser and the Administrator each have the ability to resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in operations that could adversely affect our financial condition, business and results of operations.

The Adviser has the right under the Investment Advisory Agreement to resign as our investment adviser at any time upon not less than 60 days’ written notice, whether we have found a replacement or not. Similarly, the Administrator has the right under the Administration Agreement to resign at any time upon not less than 60 days’ written notice, whether we have found a replacement or not. If the Adviser or the Administrator were to resign, we may not be able to find a new investment adviser or administrator, as applicable, or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions to our stockholders are likely to be adversely affected and the market price of our shares may decline. In addition, the coordination of our internal management and investment or administrative activities, as applicable, is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by the Adviser and the Administrator, as applicable. Even if we are able to retain a comparable service provider or individuals performing such services are retained, whether internal or external, their integration and lack of familiarity with our investment objectives may result in additional costs and time delays that may adversely affect our business, financial condition, results of operations and cash flows.

In addition, if the Adviser resigns or is terminated, we would lose the benefits of our relationship with Crescent, including the use of its communication and information systems, insights into our existing portfolio, market expertise, sector and macroeconomic views and due diligence capabilities, as well as any investment opportunities referred to us by Crescent, and we would be required to change our name, which may have a material adverse impact on its operations.

We are highly dependent on information systems, and systems failures or cyber-attacks could significantly disrupt its business, which may, in turn, negatively affect the value of shares of our common stock and our ability to pay distributions.

Our business is highly dependent on Crescent’s communications and information systems, to which we have access through the Administrator. In addition, certain of these systems are provided to Crescent by third-party service providers. Any failure or interruption of such systems, including as a result of the termination of an agreement with any such third-party service provider, could cause delays or other problems in our activities. This, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our common stock and its ability to pay dividends to its stockholders.

Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of its confidential information and/or damage to its business relationships.

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of our information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen information, misappropriation of assets, increased cybersecurity protection and insurance costs, litigation and damage to our business relationships. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect our business, financial condition or results of operations. In addition, we may be required to expend significant additional resources to modify its protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. We face risks posed to our information systems, both internal and those provided to it by third-party service providers. We, the Adviser and its affiliates have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber-incident, may be ineffective and do not guarantee that a cyber-incident will not occur or that our financial results, operations or confidential information will not be negatively impacted by such an incident.

Third parties with which we do business (including those that provide services to us) may also be sources or targets of cybersecurity or other technological risks. We outsource certain functions and these relationships allow for the storage and processing of our information and assets, as well as certain investor, counterparty, employee and borrower information.

While we engage in actions to reduce our exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other cybersecurity incidents, with increased costs and other consequences, including those described above. Privacy and information security laws and regulation changes, and compliance with those changes, may also result in cost increases due to system changes and the development of new administrative processes.

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We and the Adviser are subject to regulations and SEC oversight. If we or the Adviser fail to comply with applicable requirements, it may adversely impact our results relative to companies that are not subject to such regulations.

As a BDC, we are subject to a portion of the 1940 Act. In addition, we have elected to be treated, and intend to operate in a manner so as to continuously qualify, as a RIC in accordance with the requirements of Subchapter M of the Code. The 1940 Act and the Code impose various restrictions on the management of a BDC, including related to portfolio construction, asset selection, and tax. These restrictions may reduce the chances that we will achieve the same results as other vehicles managed by Crescent and/or the Adviser.

However, if we do not maintain our status as a BDC, we would be subject to regulation as a registered closed-end investment company under the 1940 Act. As a registered closed-end investment company, we would be subject to substantially more regulatory restrictions under the 1940 Act which would significantly decrease our operating flexibility. In addition to these and other requirements applicable to us, the Adviser is subject to regulatory oversight by the SEC. To the extent the SEC raises concerns or has negative findings concerning the manner in which we or the Adviser operates, it could adversely affect our business.

We are subject to risks related to corporate social responsibility.

Our business (including that of our portfolio companies) faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as diversity, equity and inclusion, environmental stewardship, support for local communities, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, our relationship with existing and future portfolio companies, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations.

Additionally, new regulatory initiatives related to ESG that are applicable to us and our portfolio companies could adversely affect our business. In May 2018, the European Commission adopted an “action plan on financing sustainable growth.” The action plan is, among other things, designed to define and reorient investment toward sustainability. The action plan contemplates: establishing EU labels for green financial products; increasing disclosure requirements in the financial services sector around ESG and strengthening the transparency of companies on their ESG policies and introducing a ‘green supporting factor’ in the EU prudential rules for banks and insurance companies to incorporate climate risks into banks’ and insurance companies’ risk management policies. There is a risk that a significant reorientation in the market following the implementation of these and further measures could be adverse to our portfolio companies if they are perceived to be less valuable as a consequence of, e.g., their carbon footprint or “greenwashing” (i.e., the holding out of a product as having green or sustainable characteristics where this is not, in fact, the case). We and our portfolio companies are subject to the risk that similar measures might be introduced in other jurisdictions in the future.

Additionally, compliance with any new laws or regulations increases our regulatory burden and could make compliance more difficult and expensive, affect the manner in which we or our portfolio companies conduct our businesses and adversely affect our profitability.

Risks Relating to Our Investments

Economic recessions or downturns could impair our portfolio companies, and defaults by our portfolio companies will harm our operating results.

Many of the portfolio companies in which we expect to make investments are likely to be susceptible to economic slowdowns or recessions and may be unable to repay their loans during such periods. Therefore, the number of our non-performing assets is likely to increase and the value of our portfolio is likely to decrease during such periods. Macroeconomic factors such as real GDP growth, consumer confidence, the COVID-19 pandemic, supply chain disruptions, inflation, employment levels, oil prices, interest rates, tax rates, foreign currency exchange rate fluctuations and other macroeconomic trends can adversely affect customer demand for the products and services that our portfolio companies offer and may adversely impact their businesses or financial results. In addition, although we invest primarily in companies located in the United States, our portfolio companies may rely on parts or supplies manufactured outside the United States. As a result, any event causing a disruption of imports, including natural disasters, public health crises, or the imposition of import or trade restrictions in the form of tariffs or quotas could increase the cost and reduce the supply of products available to our portfolio companies, which may negatively impact their businesses or financial results.

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Adverse economic conditions may also decrease the value of collateral securing some of our loans and debt securities and the value of our equity investments. If the value of collateral underlying our loan declines during the term of the loan, a portfolio company may not be able to obtain the necessary funds to repay the loan at maturity through refinancing. Decreasing collateral value may hinder a portfolio company’s ability to refinance our loan because the underlying collateral cannot satisfy the debt service coverage requirements necessary to obtain new financing. Thus, economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit its access to the capital markets or result in a decision by lenders not to extend credit to us. We consider a number of factors in making our investment decisions, including, but not limited to, the financial condition and prospects of a portfolio company and its ability to repay our loan. Unfavorable economic conditions could negatively affect the valuations of our portfolio companies and, as a result, make it more difficult for such portfolio companies to repay or refinance our loan. Therefore, these events could prevent us from increasing our investments and harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, acceleration of the time when the loans are due, termination of the portfolio company’s loans and foreclosure on its assets, which could trigger cross-defaults under other agreements and jeopardize its ability to meet its obligations under the loans and debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company, which may include the waiver of certain financial covenants. Furthermore, if one of our portfolio companies were to file for bankruptcy protection, depending on the facts and circumstances, including the extent to which we actually provide significant managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding and subordinate all or a portion of our claim to claims of other creditors, even though we may have structured our investment as senior secured debt.

Our portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity, and rising interests rates may make it more difficult for portfolio companies to make periodic payments on their loans.

Our portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity. This risk and the risk of default is increased to the extent that the loan documents do not require the portfolio companies to pay down the outstanding principal of such debt prior to maturity. In addition, if general interest rates rise, there is a risk that our portfolio companies will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We may hold the debt securities of leveraged companies.

Investment in leveraged companies involves a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their loans and debt securities that we hold. Such developments may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that it may have obtained in connection with its investment. Smaller leveraged companies also may have less predictable operating results and may require substantial additional capital to support their operations, finance their expansion or maintain their competitive position.

Leveraged companies may experience bankruptcy or similar financial distress. The bankruptcy process has a number of significant inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of the creditors. A bankruptcy filing by a portfolio company may adversely and permanently affect the portfolio company. If the proceeding is converted to a liquidation, the value of the portfolio company may not equal the liquidation value that was believed to exist at the time of the investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective.

The administrative costs in connection with a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations that we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, any contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial.

We typically invest in middle-market companies, which involves higher risk than investments in large companies.

Investment in private and middle-market companies involves a number of significant risks. Generally, little public information exists about these companies, and we will rely on the ability of Crescent’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision and may lose money on its investments. Middle-market companies may have limited financial resources and may be unable to meet their obligations under their loans and debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that it may have obtained in connection with its investment.

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In addition, such companies typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns. Additionally, middle-market companies are more likely to depend on the management talents and efforts of a small group of persons. Therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on one or more of the portfolio companies we invest in and, in turn, on us. Middle-market companies also may be parties to litigation and may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence. In addition, our executive officers, directors and the Adviser may, in the ordinary course of business, be named as defendants in litigation arising from our investments in portfolio companies.

In addition, investment in middle-market companies involves a number of other significant risks, including:

• they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;

• they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;

• changes in laws and regulations, as well as their interpretations, may adversely affect their business, financial structure or prospects; and

• they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity.

The due diligence process that the Adviser undertakes in connection with our investments may not reveal all the facts that may be relevant in connection with an investment.

The Adviser’s due diligence may not reveal all of a company’s liabilities and may not reveal other weaknesses in its business. There can be no assurance that our due diligence process will uncover all relevant facts that would be material to an investment decision. Before making an investment in, or a loan to, a company, the Adviser will assess the strength and skills of the company’s management team and other factors that it believes are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, the Adviser will rely on the resources available to it and, in some cases, an investigation by third parties. This process is particularly important and highly subjective with respect to newly organized entities because there may be little or no information publicly available about the entities. We may make investments in, or loans to, companies, including middle market companies, which are not subject to public company reporting requirements, including requirements regarding preparation of financial statements, and will, therefore, depend upon the compliance by investment companies with their contractual reporting obligations and the ability of the Adviser’ investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we and the Adviser are unable to uncover all material information about these companies, we may not make a fully informed investment decision and may lose money on its investments. As a result, the evaluation of potential investments and the ability to perform due diligence on and effective monitoring of investments may be impeded, and we may not realize the returns that it expects on any particular investment. In the event of fraud by any company in which we invest or with respect to which we make a loan, we may suffer a partial or total loss of the amounts invested in that company.

The lack of liquidity in our investments may adversely affect our business.

All of our assets may be invested in illiquid loans and securities, and a substantial portion of our investments in leveraged companies will be subject to legal and other restrictions on resale or will otherwise be less liquid than more broadly traded public securities. The illiquidity of these investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of its portfolio quickly, we may realize significantly less than the value at which it has previously recorded its investments. Some of our debt investments may contain interest rate reset provisions that may make it more difficult for the borrowers to make periodic interest payments to us. In addition, some of our debt investments may not pay down principal until the end of their lifetimes, which could result in a substantial loss to us if the portfolio companies are unable to refinance or repay their debts at maturity.

We may invest in high yield debt, or junk bonds, which has greater credit and liquidity risk than more highly rated debt obligations.

We may also invest in debt securities which will not be rated by any rating agency and, if they were rated, would be rated as below investment grade quality. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.

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Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing NAV through increased net unrealized depreciation.

As a BDC, we are required to carry its investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by the our Board, as described above in “ —Risks Relating to our Business and Structure—The majority of our portfolio investments are recorded at fair value as determined in good faith by the our Board and, as a result, there may be uncertainty as to the value of our portfolio investments.”

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we use the pricing indicated by the external event to corroborate our valuation. While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of its valuation process that its investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). As a result, volatility in the capital markets can also adversely affect our investment valuations. We record decreases in the market values or fair values of our investments as unrealized depreciation. Declines in prices and liquidity in the corporate debt markets may result in significant net unrealized depreciation in our portfolio. The effect of all of these factors on our portfolio may reduce our NAV by increasing net unrealized depreciation in our portfolio. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in seeking to:

• increase or maintain in whole or in part our position as a creditor or equity ownership percentage in a portfolio company;

• exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or

• preserve or enhance the value of our investment.

We have discretion to make follow-on investments, subject to the availability of capital resources. Failure on our part to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation.

Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase its level of risk, because we prefer other opportunities or because we are inhibited by compliance with BDC requirements of the 1940 Act or the desire to maintain our qualification as a RIC.

Additionally, certain loans that we may make to portfolio companies may be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The first priority liens on the collateral will secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements governing the loans. The holders of obligations secured by first priority liens on the collateral will generally control the liquidation of, and be entitled to receive proceeds from, any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds were not sufficient to repay amounts outstanding under the loan obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the portfolio company’s remaining assets, if any.

We may also make unsecured loans to portfolio companies, meaning that such loans will not benefit from any interest in collateral of such companies. Liens on such portfolio companies’ collateral, if any, will secure the portfolio company’s obligations under its outstanding secured debt and may secure certain future debt that is permitted to be incurred by the portfolio company under its secured loan agreements. The holders of obligations secured by such liens will generally control the liquidation of, and be entitled to receive proceeds from, any realization of such collateral to repay their obligations in full before us. In addition, the value of such collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of such collateral would be sufficient to satisfy our unsecured loan obligations after payment in full of all secured loan obligations. If such proceeds were not sufficient to repay the outstanding secured loan obligations, then our unsecured claims would rank equally with the unpaid portion of such secured creditors’ claims against the portfolio company’s remaining assets, if any. Additionally, we invest in unitranche loans (loans that combine both senior and mezzanine debt, generally in a first lien position), which may provide for a waterfall of cash flow priority between different lenders in the unitranche loan. In certain instances, we 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 repayment of principal, interest and any other amounts due thereunder over the “last out” portion of the loan that we would continue to hold.

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The rights we may have with respect to the collateral securing the loans we make to our portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of such senior debt. Under a typical intercreditor agreement, at any time that obligations that have the benefit of the first priority liens are outstanding, any of the following actions that may be taken in respect of the collateral will be at the direction of the holders of the obligations secured by the first priority liens:

• the ability to cause the commencement of enforcement proceedings against the collateral;

• the ability to control the conduct of such proceedings;

• the approval of amendments to collateral documents;

• releases of liens on the collateral; and

• waivers of past defaults under collateral documents.

We may not have the ability to control or direct such actions, even if its rights are adversely affected.

Our subordinated investments may be subject to greater risk than investments that are not similarly subordinated.

We may make subordinated investments that rank below other obligations of the borrower in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the borrower or in general economic conditions. If we make a subordinated investment in a portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.

The disposition of our investments may result in contingent liabilities.

We currently expect that substantially all of our investments will involve loans and private securities. In connection with the disposition of an investment in loans and private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. These arrangements may result in contingent liabilities that ultimately result in funding obligations that we must satisfy through its return of distributions previously made to us.

We will be subject to the risk that the debt investments we make in our portfolio companies may be repaid prior to maturity.

We expect that our investments will generally allow for repayment at any time subject to certain penalties. When such prepayment occurs, we intend to generally reinvest these proceeds in temporary investments, pending their future investment in accordance with our investment strategy. These temporary investments will typically have substantially lower yields than the debt being prepaid, and we could experience significant delays in reinvesting these amounts. Any future investment may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elects to prepay amounts owed to us. Additionally, prepayments could negatively impact our ability to pay, or the amount of, dividends on our common stock, which could result in a decline in the market price of our shares.

We may be subject to risks under hedging transactions and may become subject to risk if it invests in non-U.S. securities.

The 1940 Act generally requires that 70% of our investments be in issuers each of whom is organized under the laws of, and has its principal place of business in, any state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands or any other possession of the United States. However, our portfolio may include debt securities of non-U.S. companies, including emerging market issuers, to the limited extent such transactions and investments would not cause us to violate the 1940 Act. We expect that these investments would focus on the same secured debt, unsecured debt and related equity security investments that we make in U.S. middle-market companies and, accordingly, would be complementary to our overall strategy and enhance the diversity of our holdings. Investing in loans and securities of emerging market issuers involves many risks including economic, social, political, financial, tax and security conditions in the emerging market, potential inflationary economic environments, regulation by foreign governments, different accounting standards and political uncertainties. Economic, social, political, financial, tax and security conditions also could negatively affect the value of emerging market companies. These factors could include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations or judgments or foreclosing on collateral, lack of uniform accounting and auditing standards and greater price volatility.

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Engaging in either hedging transactions or investing in foreign loans and securities would entail additional risks to our stockholders. We could, for example, use instruments such as interest rate swaps, caps, collars and floors and, if we were to invest in foreign loans and securities, we could use instruments such as forward contracts or currency options and borrow under a credit facility in currencies selected to minimize our foreign currency exposure. In each such case, we generally would seek to hedge against fluctuations of the relative values of our portfolio positions from changes in market interest rates or currency exchange rates. Hedging against a decline in the values of our portfolio positions would not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of the positions declined. However, such hedging could establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions could also limit the opportunity for gain if the values of the underlying portfolio positions increased. Moreover, it might not be possible to hedge against an exchange rate or interest rate fluctuation that was so generally anticipated that we would not be able to enter into a hedging transaction at an acceptable price.

While we may enter into such transactions to seek to reduce currency exchange rate and interest rate risks, unanticipated changes in currency exchange rates or interest rates could result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions being hedged could vary. Moreover, for a variety of reasons, we might not seek to establish a perfect correlation between the hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation could prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it might not be possible for us to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those loans and securities would likely fluctuate as a result of factors not related to currency fluctuations.

We may not realize anticipated gains on the equity interests in which it invests.

When we invest in loans and debt securities, it may acquire warrants or other equity securities of portfolio companies as well. We may also invest in equity securities directly. To the extent we hold equity investments, we will attempt to dispose of them and realize gains upon such disposition. However, the equity interests we receive may not appreciate in value and, may decline in value. As a result, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses it experiences.

Our investments in OID and PIK interest income may expose us to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash.

Our investments may include OID and PIK instruments. To the extent OID and PIK interest income constitute a portion of our income, we will be exposed to risks associated with such income being required to be included in an accounting income and taxable income prior to receipt of cash, including the following:

• OID instruments and PIK securities may have unreliable valuations because the accretion of OID as interest income and the continuing accruals of PIK securities require judgments about their collectability and the collectability of deferred payments and the value of any associated collateral;

• OID income may also create uncertainty about the source of our cash dividends;

• OID instruments may create heightened credit risks because the inducement to the borrower to accept higher interest rates in exchange for the deferral of cash payments typically represents, to some extent, speculation on the part of the borrower;

• for accounting purposes, cash distributions to stockholders that include a component of accreted OID income do not come from paid-in capital, although they may be paid from the offering proceeds. Thus, although a distribution of accreted OID income may come from the cash invested by the stockholders, the 1940 Act does not require that shareholders be given notice of this fact;

• generally, we must recognize income for income tax purposes no later than when it recognizes such income for accounting purposes;

• the higher interest rates on PIK securities reflects the payment deferral and increased credit risk associated with such instruments and PIK securities generally represent a significantly higher credit risk than coupon loans;

• the presence of accreted OID income and PIK interest income create the risk of non-refundable cash payments to the Adviser in the form of incentive fees on income based on non-cash accreted OID income and PIK interest income accruals that may never be realized;

• even if accounting conditions are met, borrowers on such securities could still default when our actual collection is expected to occur at the maturity of the obligation;

• OID and PIK create the risk that incentive fees will be paid to the Adviser based on

• non-cash accruals that ultimately may not be realized, which the Adviser will be under no obligation to reimburse us or these fees; and

• PIK interest has the effect of generating investment income and increasing the incentive fees payable at a compounding rate. In addition, the deferral of PIK interest also reduces the loan-to-value ratio at a compounding rate.

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You may receive dividends in the form of common stock instead of cash, which could result in adverse tax consequences to you.

In order to satisfy the Annual Distribution Requirement applicable to RICs, we have the ability to declare a large portion of a dividend

in shares of our common stock instead of in cash. As long as a portion of such dividend is paid in cash and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes. As a result, a stockholder would be taxed on 100% of the dividend in the same manner as a cash dividend, even though most of the dividend was paid in shares of our common stock.

Changes in healthcare laws and other regulations applicable to some of our portfolio companies businesses may constrain their ability to offer their products and services.

Changes in healthcare or other laws and regulations applicable to the businesses of some of our portfolio companies may occur that could increase their compliance and other costs of doing business, require significant systems enhancements, or render their products or services less profitable or obsolete, any of which could have a material adverse effect on their results of operations. There has also been an increased political and regulatory focus on healthcare laws in recent years, and new legislation could have a material effect on the business and operations of some of our portfolio companies.

Our investments in the consumer products and services sector are subject to various risks including cyclical risks associated with the overall economy.

General risks of companies in the consumer products and services sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. Generally, spending on consumer products and services is affected by the health of consumers. Companies in the consumer products and services sectors are subject to government regulation affecting the permissibility of using various food additives and production methods, which regulations could affect company profitability. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products and services sector.

Our investments in the financial services sector are subject to various risks including volatility and extensive government regulation.

These risks include the effects of changes in interest rates on the profitability of financial services companies, the rate of corporate and consumer debt defaults, price competition, governmental limitations on a company’s loans, other financial commitments, product lines and other operations and recent ongoing changes in the financial services industry (including consolidations, development of new products and changes to the industry’s regulatory framework). The deterioration of the credit markets starting in late 2007 generally has caused an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. In particular, events in the financial sector in late 2008 resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign. This situation has created instability in the financial markets and caused certain financial services companies to incur large losses. Insurance companies have additional risks, such as heavy price competition, claims activity and marketing competition, and can be particularly sensitive to specific events such as man-made and natural disasters (including weather catastrophes), climate change, terrorism, mortality risks and morbidity rates.

Our investments in technology companies are subject to many risks, including volatility, intense competition, shortened product life cycles, litigation risk and periodic downturn.

We have invested and will continue investing in technology companies, many of which may have narrow product lines and small market shares, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as to general economic downturns. The revenues, income (or losses), and valuations of technology-related companies can and often do fluctuate suddenly and dramatically. In addition, technology related markets are generally characterized by abrupt business cycles and intense competition, where the leading companies in any particular category may hold a highly concentrated percentage of the overall market share.

Therefore, our portfolio companies may face considerably more risk of loss than do companies in other industry sectors. Because of rapid technological change, the selling prices of products and services provided by technology-related companies have historically decreased over their productive lives. As a result, the selling prices of products and services offered by technology related companies may decrease over time, which could adversely affect their operating results, their ability to meet obligations under their debt securities and the value of their equity securities. This could, in turn, materially adversely affect the value of the technology-related companies in our portfolio.

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Risks Relating to Our Common Stock

An investment in our common stock presents an above average degree of risk.

The investments we make in accordance with our investment objective may result in a higher amount of risk than associated with alternative investment options, and higher volatility or loss of principal. Our investments in portfolio companies may be speculative and, therefore, an investment in our common stock may not be suitable for someone with lower risk tolerance.

Our shares of common stock have traded at a discount from net asset value and may do so again, which could limit our ability to raise additional equity capital.

Shares of closed-end investment companies frequently trade at a market price that is less than the net asset value that is attributable to those shares. This characteristic of closed-end investment companies is separate and distinct from the risk that our net asset value per share may decline. It is not possible to accurately predict whether any shares of our common stock will trade at, above, or below net asset value. In the recent past, the stocks of BDCs as an industry, including at times shares of our common stock, have traded below net asset value. See “Item 1a. Risk Factors-Risks Relating to Our Business and Structure- Global capital markets could enter a period of severe disruption and instability. These conditions have historically affected and could again materially and adversely affect debt and equity capital markets in the United States and around the world and our business.” When our common stock is trading below its net asset value per share, we will generally not be able to issue additional shares of our common stock at its market price without first obtaining approval for such issuance from our stockholders and our independent directors.

The market price of our common stock may fluctuate significantly.

The market price and liquidity of the market for our common stock may be significantly affected by numerous factors, some of which may be beyond our control and may not be directly related to our operating performance. These factors include:

• significant volatility in the market price and trading volume of securities of publicly traded RICs, BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;

• price and volume fluctuations in the overall stock market from time to time;

• the inclusion or exclusion of our common stock from certain indices;

• changes in law, regulatory policies or tax guidelines, or interpretations thereof, particularly with respect to RICs or BDCs;

• loss of RIC status;

• changes in earnings or variations in operating results;

• changes in the value of our portfolio of investments;

• announcements with respect to significant transactions;

• any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;

• departure of key personnel of ours or the Adviser;

• operating performance of companies comparable to us;

• short-selling pressure with respect to shares of our common stock or BDCs generally;

• general economic trends and other external factors; and

• loss of a major funding source.

In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Because of the potential volatility in the price of our common stock, we may become the target of securities litigation in the future. If we were to become involved in securities litigation, it could result in substantial costs, divert management’s attention and resources from the business and adversely affect the business.

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Our stockholders will experience dilution in their ownership percentage if they opt out of our dividend reinvestment plan.

We have adopted a dividend reinvestment plan, pursuant to which we will reinvest all cash distributions authorized by the Board on behalf of stockholders who do not elect to receive their distributions in cash. As a result, if the Board authorizes and we declare a cash distribution, then stockholders who have not opted out of the dividend reinvestment plan will have their cash distributions automatically reinvested in additional shares of Common stock, rather than receiving the cash distribution. See “Item 1—Business—Dividend Reinvestment Plan” for a description of the dividend reinvestment plan. Following the listing of our common stock on NASDAQ, the number of shares to be issued to a plan participant will be determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of our common stock at the close of regular trading on NASDAQ on the date of such distribution. The market price per share of our common stock on a particular date will be the closing price for such shares on NASDAQ on such date, or, if no sale is reported for such date, at the average of their reported bid and asked prices. However, if the market price per share exceeds the most recently computed net asset value per share, we will issue shares at the greater of (i) the most recently computed net asset value per share and (ii) 95% of the current market price per share (or such lesser discount to the current market price per share that still exceeds the most recently computed net asset value per share). Accordingly, participants in the dividend reinvestment plan may receive a greater number shares of our common stock than the number of shares associated with the market price of our common stock, resulting in dilution for other stockholders. Stockholders that opt out of the dividend reinvestment plan will experience dilution in their ownership percentage of our common stock over time.

Provisions of the Maryland General Corporation Law and of the Charter and the Bylaws could deter takeover attempts and have an adverse effect on the price of our common stock.

Certain provisions of the Maryland General Corporation Law (the “MGCL”) may discourage, delay or make more difficult a change in control of the Company, including (i) the Maryland Business Combination Act (the “Business Combination Act”), which, subject to any applicable requirements of the 1940 Act and certain other limitations, will prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding shares of voting stock or an affiliate or associate of us who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of our then outstanding shares of stock) or an affiliate thereof for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter will impose special appraisal rights and supermajority voting requirements on these combinations and (ii) the Maryland Control Share Acquisition Act (the “Control Share Acquisition Act”), which, subject to any applicable requirements of the 1940 Act, will provide that our “control shares” (defined as shares which, when aggregated with other shares controlled by the stockholder (except solely by virtue of a revocable proxy), entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of issued and outstanding “control shares”) have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares. The Board has adopted a resolution exempting from the Business Combination Act any business combination between us and any other person, provided that the business combination is first approved by the Board, including a majority of the independent directors, and the Bylaws exempt from the Control Share Acquisition Act acquisitions of our stock by any person. However, if the resolution exempting business combinations is repealed or the Board or independent directors do not approve a business combination or we amend the Bylaws to repeal the exemption from the Control Share Acquisition Act, subject to any applicable requirements of the 1940 Act, the Business Combination Act or Control Share Acquisition Act, as the case may be, may discourage third parties from trying to acquire control of us and may increase the difficulty of consummating such an offer.

We are also subject to other measures that may make it difficult for a third party to obtain control of us, including provisions of the Charter that (i) classify the Board into three classes serving staggered three-year terms and require that any vacancies be filled by a majority of directors remaining in office, (ii) require a two-thirds vote and cause for director removal, (iii) authorize the Board to classify any unissued shares of stock and reclassify any previously classified but unissued shares of stock into other classes or series of stock, including preferred stock, and to cause the issuance of additional shares of our common stock and (iv) authorize the Board to amend the Charter, without stockholder approval, to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have the authority to issue. These provisions, as well as other provisions in the Charter and the Bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders.

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Our Charter designates the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.

Our Charter provides that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that Court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, will be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any Internal Corporate Claim, as such term is defined in Section 1-101(p) of the MGCL, including, without limitation, (a) any action asserting a claim of breach of any duty owed by any of our directors or officers or other employees to us or to our stockholders or (b) any action asserting a claim against us or any of our directors or officers or other employees arising pursuant to any provision of the MGCL or the Charter or the Bylaws; or (iii) any action asserting a claim against us or any of our directors or officers or other employees that is governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring or holding any interest in shares of our common stock will be deemed to have notice of and to have consented and waived any objection to this exclusive forum provision of the Charter, as the same may be amended from time to time. The Charter includes this provision so that we can respond to litigation more efficiently, reduce the costs associated with our responses to such litigation, particularly litigation that might otherwise be brought in multiple forums, and make it less likely that plaintiffs’ attorneys will be able to employ such litigation to coerce us into otherwise unjustified settlements. However, this exclusive forum provision may limit a stockholder’s ability to bring a claim in a judicial forum that such stockholder believes is favorable for disputes with us or our directors, officers or other employees, if any, and may discourage lawsuits against us and our directors, officers or other employees, if any. We believe the risk of a court declining to enforce this exclusive forum provision is remote, as the General Assembly of Maryland has specifically amended the MGCL to authorize the adoption of such provision. However, if a court were to find such provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings notwithstanding that the MGCL expressly provides that the charter or bylaws of a Maryland corporation may require that any Internal Corporate Claim be brought only in courts sitting in one or more specified jurisdictions, we may incur additional costs that it does not currently anticipate associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial condition and results of operations.

We will incur significant costs as a result of being a publicly traded company.

As a publicly-traded company, we incur legal, accounting and other expenses, including costs associated with the periodic reporting requirements applicable to a company whose securities are registered under the Exchange Act, as well as additional corporate governance requirements, including certain requirements under the Sarbanes-Oxley Act, and other rules implemented by the SEC and the listing standards of the Nasdaq Global Select Market.

As long as we remain an emerging growth company, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. We will remain an emerging growth company for up to five years following an IPO or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues equal or exceeds $1.07 billion, (ii) December 31 of the fiscal year that we become a “large accelerated filer” as defined in Rule 12b-2 under the 1934 Act which would occur if the market value of our shares that is held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter and we have been publicly reporting for at least 12 months and have filed an annual report on Form 10-K, (iii) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the preceding three-year period or (iv) December 31 of the fiscal year following the fifth anniversary of the date of our first sale of common equity securities pursuant to an effective registration statement under the 1933 Act.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

We maintain our principal executive office at 11100 Santa Monica Boulevard, Suite 2000, Los Angeles, California 90025. We do not own any real estate.

ITEM 3. LEGAL PROCEEDINGS

We are party to certain lawsuits in the normal course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. Furthermore, third parties may try to seek to impose liability on us in connection with our activities or the activities of our portfolio companies. While the outcome of any such legal proceedings cannot at this time be predicted with certainty, we do not expect that these legal proceedings will materially affect our business, financial condition or results of operations.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock is traded on NASDAQ under the symbol “CCAP.” Prior to the listing of the common stock on NASDAQ on February 3, 2020, our common stock was offered and sold in transactions exempt from registration under the Securities Act under Section 4(a)(2) and Regulation D, as well as under Regulation S under the Securities Act.

The following table sets forth, for each fiscal quarter since the listing of the common stock on NASDAQ, the range of high and low sales prices of the common stock as reported on NASDAQ, the premium (discount) of sales price to our net asset value, or NAV, and the distributions declared by us for each fiscal quarter.

			Price Range
Period	Net Asset Value (1)		High		Low		High Sales Price Premium (Discount) to Net Asset Value (2)			Low Sales Price Premium (Discount) to Net Asset Value (2)			Cash Dividend Per Share (3)
Year ended December 31, 2020
First Quarter	$	16.52	$	17.10	$	6.21		3.5	%		(62.4	)%	$	0.41
Second Quarter	$	18.12	$	13.25	$	8.68		(26.9	)%		(52.1	)%	$	0.41
Third Quarter	$	19.07	$	13.81	$	11.65		(27.6	)%		(38.9	)%	$	0.41
Fourth Quarter	$	19.88	$	15.25	$	12.40		(23.3	)%		(37.6	)%	$	0.41
Year ended December 31, 2021
First Quarter	$	20.24	$	18.17	$	14.72		(10.2	)%		(27.3	)%	$	0.41
Second Quarter	$	20.98	$	19.95	$	17.05		(4.9	)%		(18.7	)%	$	0.41
Third Quarter	$	21.16	$	19.33	$	18.40		(8.6	)%		(13.0	)%	$	0.41
Fourth Quarter	$	21.12	$	20.90	$	17.60		(1.0	)%		(16.7	)%	$	0.61	(4)

(1) Net asset value per share is determined as of the last day in the relevant quarter and therefore does not reflect the net asset value per share disclosed to the market on the date of the high and low closing sales prices. The net asset values shown are based on outstanding shares at the end of the relevant quarter.

(2) Calculated as the respective high or low closing sales price less net asset value, divided by net asset value (in each case, as of the applicable quarter).

(3) Represents the dividend or distribution declared in the relevant quarter.

(4) Consists of a regular quarterly dividend of $0.41 per share and four special dividends of $0.05 per share (totaling $0.20 per share) all of which were declared on November 5, 2021. The first special dividend was paid on December 5, 2021 to stockholders of record as of December 3, 2021. The remaining special dividends are payable on March 15, 2022, June 15, 2022 and September 15, 2022 to stockholders of record as of March 4, 2022, June 3, 2022 and September 2, 2022, respectively.

The last reported price for our common stock on February 22, 2022 was $17.60 per share, which represented a 16.7% discount to our NAV as of December 31, 2021.

Stock Performance Graph

This graph compares the stockholder return on our common stock from February 3, 2020 (the date our common stock commenced trading on NASDAQ) to December 31, 2021 with that of the Standard & Poor’s 500 Stock Index, Standard & Poor’s BDC Index and Russell 2000 Financial Services Index. This graph assumes that on February 3, 2020, $100 was invested in our common stock, Standard & Poor’s 500 Stock Index, Standard & Poor’s BDC Index and Russell 2000 Financial Services Index. The graph also assumes the reinvestment of all cash dividends prior to any tax effect.

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The graph and other information furnished under this Part II Item 5 of this Annual Report on Form 10-K shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C under, or to the liabilities of Section 18 of, the Exchange Act. The stock price performance included in the below graph is not necessarily indicative of future stock performance.

Holders

As of December 31, 2021, there were 73 holders of record of our common stock (excluding Cede & Co).

Distribution Policy

To the extent that we have taxable income available, we distribute quarterly dividends to our stockholders. The amount of our dividends, if any, are determined by our Board of Directors. Dividends and distributions 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. Distributions will generally be paid from net investment income. Net realized capital gains, if any, are distributed at least annually, although we may decide to retain such capital gains for investment. If we do not generate sufficient net investment income during a year, all or part of a distribution may constitute a return of capital. The specific tax characteristics of our dividends and other distributions will be reported to stockholders after the end of each calendar year. Any dividends to our stockholders will be declared out of assets legally available for distribution.

We have elected to be treated as a BDC under the 1940 Act. We have also elected to be treated as a RIC under the Internal Revenue Code. So long as we maintain our status as a RIC, we will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends. As a result, any tax liability related to income earned and distributed by us represents obligations of our stockholders and will not be reflected in our consolidated financial statements.

In order for us not to be subject to federal excise taxes, we must distribute annually an amount at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of our net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. At our discretion, we may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If we choose to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. We will accrue excise tax on estimated undistributed taxable income as required.

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We intend to make distributions in cash unless a stockholder elects to receive dividends and/or long-term capital gains distributions in additional shares of common stock. We can offer no assurance that we will achieve results that will permit the payment of any cash distributions and, if we issue senior securities, we will be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings.

The following tables summarize our dividends declared and payable for the years ended December 31, 2021, 2020, and 2019:

($ in millions except per share amounts)

Date Declared	Record Date	Payment Date (1)	Per Share Amount		Total Amount
November 5, 2021	September 2, 2022	September 15, 2022	$	0.05	$	1.5
November 5, 2021	June 3, 2022	June 15, 2022	$	0.05	$	1.5
November 5, 2021	March 4, 2022	March 15, 2022	$	0.05	$	1.5
November 5, 2021	December 31, 2021	January 17, 2022	$	0.41	$	12.6
November 5, 2021	December 3, 2022	December 15, 2021	$	0.05	$	1.5
August 11, 2021	September 30, 2021	October 15, 2021	$	0.41	$	11.5
May 10, 2021	June 30, 2021	July 15, 2021	$	0.41	$	11.5
February 22, 2021	March 31, 2021	April 15, 2021	$	0.41	$	11.5
November 4, 2020	December 31, 2020	January 15, 2021	$	0.41	$	11.5
August 7, 2020	September 30, 2020	October 15, 2020	$	0.41	$	11.5
May 11, 2020	June 30, 2020	July 15, 2020	$	0.41	$	11.5
March 3, 2020	March 31, 2020	April 15, 2020	$	0.41	$	10.6
November 8, 2019	December 30, 2019	January 17, 2020	$	0.41	$	8.6
September 27, 2019	September 27, 2019	October 18, 2019	$	0.41	$	8.0
June 28, 2019	June 28, 2019	July 18, 2019	$	0.41	$	6.7
March 29, 2019	March 29, 2019	April 12, 2019	$	0.41	$	6.0

(1) Amounts with a future payment date are based on common shares outstanding as of the reporting date.

Dividend Reinvestment Plan

We have adopted a dividend reinvestment plan that will provide for reinvestment of our dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board authorizes, and we declare, a cash dividend or other distribution, then stockholders who are participating in the dividend reinvestment plan, will have their cash dividends and distributions automatically reinvested in additional shares of common stock, rather than receiving cash dividends and distributions.

Recent Sales of Unregistered Securities and Use of Proceeds

Except as previously reported by us on our Current Reports on Form 8-K, we did not sell any securities during the period covered by this Form 10-K that were not registered under the Securities Act.

ITEM 6. [RESERVED]

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis should be read in conjunction with ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “ITEM 1A. RISK FACTORS.” Actual results may differ materially from those contained in any forward-looking statements. 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. We were incorporated under the laws of the State of Delaware on February 5, 2015 and on January 30, 2020, we changed our state of incorporation from the State of Delaware to the State of Maryland. We were listed and began trading on the NASDAQ stock exchange on February 3, 2020. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). In addition, we have 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 and tax-exempt interest.

We are managed by Crescent Cap Advisors, LLC (the “Adviser”), an investment adviser that is registered with the SEC under the 1940 Act. CCAP Administration, LLC (the “Administrator”), provides the administrative services necessary for us to operate. Our management consists of investment and administrative professionals from the Adviser and Administrator along with our Board. The Adviser directs and executes our investment operations and capital raising activities subject to oversight from the Board, which sets our broad policies. The Board has delegated investment management of our investment assets to the Adviser. The Board consists of five directors, four of whom are independent.

Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We invest primarily in secured debt (including first lien, unitranche first lien and second-lien debt) and unsecured debt (including 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 our 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, we may from time to time invest in more liquid broadly syndicated loans to complement our private credit transactions.

“First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets.

“Unitranche first lien” investments are 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, we 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 we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.

“Second lien” investments are loans with a second priority lien on all existing and future assets of the portfolio company. The security interest ranks below the security interests of any first lien and unitranche first lien lenders in those assets.

“Unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other senior indebtedness.

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. We consider the most significant accounting policies to be those related to our Valuation of Portfolio Investments, Revenue Recognition, Non-Accrual Investments, Distribution Policy, and Income Taxes.

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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.

Investment Valuation

We apply 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, we consider our 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 we have 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 for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, we utilize 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 Adviser, our Audit Committee and, with certain de minimis exceptions, 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 Adviser’s management and Crescent’s alternative investment valuation committee 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.

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.

We apply the valuation policy approved by the Board that is consistent with ASC 820. Consistent with the valuation policy, we evaluate 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), we subject 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, we review 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.

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 our 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 we were required to liquidate a portfolio investment in a forced or liquidation sale, we 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 from the unrealized gains or losses reflected herein.

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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 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 common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. 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. Each distribution received from an equity investment is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments as dividend income unless there is sufficient current or accumulated earnings prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Certain investments have contractual payment-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 income, as applicable. If at any point we believe PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status.

Loans are generally placed on non-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 on non-accrual status. Interest payments received on non-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 on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

Income Taxes

We have elected to be treated as a BDC under the 1940 Act. We also have elected to be treated as a RIC under the Internal Revenue Code. So long as we maintain the status as a RIC, we will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends. As a result, any tax liability related to income earned and distributed by us represents obligations of our stockholders and will not be reflected in our consolidated financial statements.

We evaluate tax positions taken or expected to be taken in the course of preparing the 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. We account for income taxes in conformity with ASC 740 — Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements.

In order for us not to be subject to federal excise taxes, we must distribute annually an amount at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of our net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. We, at our discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If we choose to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. We accrue excise tax on estimated undistributed taxable income as required on a quarterly basis.

CBDC Universal Equity, Inc. is a taxable entity (“Taxable Subsidiary”). The Taxable Subsidiary permits us 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 us for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in our consolidated financial statements.

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We intend 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 December 31, 2021, we are subject to examination by U.S. federal tax authorities for returns filed for the three most recent calendar years and by state tax authorities for returns filed for the four most recent calendar years.

We may generate qualified net interest income or qualified net short-term capital gains that may be exempt from U.S. withholding tax when distributed to foreign stockholders. A RIC is permitted to designate distributions of qualified net interest income and qualified short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation. As of December 31, 2021, the percentage of 2021 income estimated as qualified interest income for tax purposes was 86.7%

New Accounting Standards

In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in January 2021, the FASB issued Accounting Standards Update 2021-01 (“ASU 2021-01”) “Reference Rate Reform (Topic 848): Scope. This ASU provides optional exceptions for applying GAAP to contract modifications, hedging relationships and other transactions affected reference rate reform if certain criteria are met. ASU 2020-04 and 2021-01 are elective and can be adopted between March 12, 2020 and December 31, 2022. This guidance has no material impact on the Company’s consolidated financial statements.

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.

We may 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 Adviser

Our investment activities are managed by the Adviser, which is 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 Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“Crescent”), pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent (the “Sun Life Transaction”). There were no changes to our investment objective, strategies and process or to the Crescent team responsible for the investment operations as a result of the Sun Life Transaction.

Revenues

We generate revenue primarily in the form of interest income on debt investments, 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. 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 using the effective yield method.

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Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. 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.

We may receive other income, which may include income such as consent, waiver, amendment, underwriting, and arranger fees associated with our investment activities as well as any fees for managerial assistance services rendered to the portfolio companies. Such fees are recognized as income when earned or the services are rendered.

Expenses

Our primary operating expenses include the payment of management fees and incentive fees to the Adviser under the Investment Advisory Agreement, as amended, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with our third party sub-administrator and other operating costs described below. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

• 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;

• 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 us, including but not limited to, our accounting professionals, our legal counsel and compliance professionals);

• 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, including out-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 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.

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.

In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with shareholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. 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 depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing.

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PORTFOLIO INVESTMENT ACTIVITY

We seek to create a broad and diversified portfolio that generally includes senior secured first lien, unitranche, senior secured second lien, unsecured loans and minority equity securities of U.S. middle market companies. The size of our individual investments varies 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.

Our portfolio at fair value was comprised of the following:

	As of December 31,2021					As of December 31,2020
$ in millions Investment Type	Fair Value		Percentage			Fair Value		Percentage
Senior Secured First Lien	$	329.9		26.0	%	$	373.6		36.1	%
Unitranche First Lien		731.0		57.5			413.6		40.0
Unitranche First Lien - Last Out		13.7		1.1			14.9		1.5
Senior Secured Second Lien		72.7		5.7			104.7		10.1
Unsecured Debt		5.6		0.4			3.0		0.3
Equity & Other		59.5		4.7			69.3		6.7
LLC/LP Equity Interests		58.0		4.6			54.9		5.3
Total investments	$	1,270.4		100.0	%	$	1,034.0		100.0	%

The following table shows our investment activity by investment type:

	For the years ended
$ in millions	December 31, 2021		December 31, 2020 (1)
New investments at cost:
Senior Secured First Lien	$	179.9	$	110.8
Unitranche First Lien		421.9		204.2
Unitranche First Lien - Last Out		—		—
Senior Secured Second Lien		24.0		17.9
Unsecured Debt		2.3		0.8
Equity & Other		13.4		9.2
LLC/LP Equity Interests		5.9		9.5
Total	$	647.4	$	352.4
Proceeds from investments sold or repaid:
Senior Secured First Lien	$	229.9	$	165.3
Unitranche First Lien		114.5		57.0
Unitranche First Lien - Last Out		—		0.2
Senior Secured Second Lien		57.8		24.2
Unsecured Debt		0.3		6.5
Equity & Other		55.5		0.5
LLC/LP Equity Interests		3.3		5
Total	$	461.3	$	259.0
Net increase (decrease) in portfolio	$	186.1	$	93.4

(1) Excludes $195.7 million of assets at cost acquired in connection with the Alcentra Acquisition. The assets acquired, at cost, were comprised of $82.2 million of senior secured first lien, $45.0 million of unitranche first lien, $53.0 million of senior secured second lien, $1.2 million of unsecured debt and $14.3 million of equity investments.

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The following table presents certain selected information regarding our investment portfolio:

	As of December 31, 2021			As of December 31, 2020
Weighted average yield on income producing securities (at cost) (1)		7.5	%	8.0%
Percentage of debt bearing a floating rate (at fair value)		98.5	%	98.4%
Percentage of debt bearing a fixed rate (at fair value)		1.5	%	1.6%
Number of portfolio companies		134		132

(1) Yield excludes investments on non-accrual status.

The following table shows the amortized cost and fair value of our performing and non-accrual debt and income producing debt securities:

	As of December 31,2021										As of December 31,2020
$ in millions	Cost		% of Cost			Fair Value		% of Fair Value			Cost		% of Cost			Fair Value		% of Fair Value
Performing	$	1,129.6		98.4	%	$	1,138.7		98.8	%	$	899.2		98.3	%	$	899.5		98.7	%
Non-Accrual		18.9		1.6	%		14.1		1.2	%		15.6		1.7	%		12.1		1.3	%
Total	$	1,148.5		100.0	%	$	1,152.8		100.0	%	$	914.8		100.0	%	$	911.6		100.0	%

Loans are generally placed on non-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 on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

As of December 31, 2021, we had five investments across three portfolio companies on non-accrual status, which represented 1.6% and 1.2% of the total debt investments at cost and fair value, respectively. As of December 31, 2020, we had three investments across two portfolio companies on non-accrual status, which represented 1.7% and 1.3% of the total debt investments at cost and fair value, respectively. The remaining debt investments were performing and current on their interest payments as of December 31, 2021 and 2020.

The Adviser monitors our portfolio companies on an ongoing basis. The Adviser 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 Adviser 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

• attendance and participation in board meetings.

As part of the monitoring process, the Adviser 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.

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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 on non-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 values of the loans are generally reduced to the anticipated recovery amounts. Loans with an investment rating of 5 are generally placed on non-accrual status.

The following table shows the composition of our portfolio on the 1 to 5 investment performance rating scale. 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.

$ in millions	As of December 31,2021					As of December 31,2020
	Investments at		Percentage of			Investments at		Percentage of
Investment Performance Rating	Fair Value		Total Portfolio			Fair Value		Total Portfolio
1	$	—		—	%	$	9.8		0.9	%
2		1,155.8		91.0			895.1		86.6
3		100.5		7.9			117.0		11.3
4		14.1		1.1			12.1		1.2
5		—		—			—		—
Total	$	1,270.4		100.0	%	$	1,034.0		100.0	%

RESULTS OF OPERATIONS

Operating results were as follows:

	For the years ended December 31,
	2021				2020
$ in millions
Total investment income	$	94.0			$	77.1
Total net expenses		46.4				27.2
Net investment income	$	47.6			$	49.9
Net realized gain (loss) on investments and forward contracts		32.6				(15.3	)
Net unrealized appreciation (depreciation) on investments, forward contracts and foreign transactions		4.8				24.1
Net realized and unrealized gains (losses)	$	37.4			$	8.8
Realized loss on asset acquisition		—		��		(3.8	)
Benefit/(Provision) for taxes on realized and unrealized appreciation (depreciation) on investments		(1.4	)			(0.2	)
Net increase (decrease) in net assets resulting from operations	$	83.6			$	54.7

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Investment Income

	For the years ended December 31,
	2021		2020
$ in millions
Interest from investments	$	85.7	$	71.1
Dividend Income		7.5		4.9
Other Income		0.8		1.1
Total investment income	$	94.0	$	77.1

Interest income, which includes amortization of upfront fees, increased from $71.1 million for the year ended December 31, 2020 to $85.7 million for the year ended December 31, 2021, due to organic net deployment and higher accelerated accretion of OID related to paydown activity. Included in interest from investments for the year ended December 31, 2021 and 2020 are $8.0 million and $2.3 million of accelerated accretion of OID, respectively.

Dividend income increased from $4.9 million for the year ended December 31, 2020 to $7.5 million for the year ended December 31, 2021 due to one-time dividend distributions from certain portfolio companies. Other income which includes consent, waiver, amendment, agency, underwriting and arranger fees associated with our investment activities decreased from $1.1 million for the year ended December 31, 2020 to $0.8 million for the year ended December 31, 2021.

Expenses

	For the years ended December 31,
	2021			2020
$ in millions
Interest and other debt financing costs	$	19.8		$	15.5
Management fees		14.1			11.4
Income based incentive fees		9.8			8.6
Capital gains based incentive fees		6.3			—
Professional fees		1.8			1.5
Directors’ fees		0.5			0.4
Other general and administrative expenses		2.6			2.6
Total expenses	$	54.9		$	40.0
Management fee waiver		(3.3	)		(4.7	)
Income based incentive fees waiver		(7.5	)		(8.6	)
Net expenses	$	44.1		$	26.7
Income and excise taxes		2.3			0.5
Total	$	46.4		$	27.2

Interest and other debt financing costs

Interest and other debt financing costs include interest, amortization of deferred financing costs including upfront commitment fees and unused fees on our credit facilities. For the years ended December 31, 2021 and 2020 interest and other debt financing costs were $19.8 million and $15.5 million, respectively. The increase was due to a higher weighted average debt outstanding and acceleration of the amortization of certain deferred financing costs in conjunction with the termination of a credit facility in 2021.

Base Management Fees

For the years ended December 31, 2021 and 2020, we incurred management fees of $14.1 million and $11.4 million, of which $3.3 million and $4.7 million, respectively, were waived. The increase in net management fees was driven by growing assets under management and expiration of the management fee waiver on July 31, 2021.

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Incentive Fees

For the years ended December 31, 2021 and 2020 we incurred income based incentive fees of $9.8 million and $8.6 million, of which $7.5 million and $8.6 million, respectively, were waived. The increase in income based incentive fees was driven by expiration of the income based incentive fee waiver on July 31, 2021.

For the years ended December 31, 2021 and 2020 we accrued $6.3 million and $0, respectively, of capital gains based incentive fees. As of December 31, 2021 and 2020, $6.3 million and $0, respectively, was accrued and unpaid. The increase in incentive fees on cumulative unrealized capital appreciation was attributable to the inception to date performance of the investment portfolio.

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 overhead and staffing costs allocated from the Administrator, insurance premiums, third party sub-administrator expenses and miscellaneous administrative costs associated with our operations and investment activity.

For the years ended December 31, 2021 and 2020, professional fees were $1.8 million and $1.5 million, respectively. For the years ended December 31, 2021 and 2020, other general and administrative expenses were $2.6 million, respectively.

The cumulative increase in professional fees and other general and administrative expenses was attributable to servicing a growing investment portfolio.

Income and Excise Taxes

For the years ended December 31, 2021 and 2020, we expensed income and excise taxes of $2.3 million and $0.5 million, respectively. The increase in income and excise tax was attributable to $1.7 million of income tax due on flow through taxable income from equity investments held in a blocker. Allocated flow through taxable income is typically offset by tax distributions, which are recorded under dividend income.

Net Investment Income

For the years ended December 31, 2021 and 2020, GAAP net investment income was $47.6 million or $1.67 per share and $49.9 million or $1.80 per share, respectively. The decrease was due to accrued capital gains based incentive fees recorded during current year.

For the years ended December 31, 2021 and 2020, net investment income excluding capital gains incentive fees (“Adjusted Net Investment Income”) was $53.9 million or $1.89 per share and $49.9 million or $1.80 per share, respectively. The increase was due to a higher investment income from a growing investment portfolio and higher accelerated amortization income.

The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to Adjusted Net Investment Income for the periods presented:

	For the years ended December 31
	2021				2020
	Amount		Per Share		Amount		Per Share
GAAP net investment income	$	47.6	$	1.67	$	49.9	$	1.80
Capital gains based incentive fee		6.3		0.22		—		—
Adjusted Net Investment Income	$	53.9	$	1.89	$	49.9	$	1.80

On a supplemental basis, we are disclosing Adjusted Net Investment Income and per share Adjusted Net Investment Income, each of which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (“non-GAAP”). Adjusted Net Investment Income represents net investment income, excluding capital gains incentive fees. We use this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believe that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends without giving effect to capital gains incentive fees. Our investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized capital depreciation on a cumulative basis. We believe that Adjusted Net Investment Income is a useful performance measure because it reflects the net investment income produced on our investments during a period

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without giving effect to any changes in the value of such investments and any related capital gains incentive fees between periods. The presentation of Adjusted Net Investment Income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

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. Net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following:

	For the years ended December 31,
	2021			2020
($ in millions)
Realized losses on non-controlled and non-affiliated investments	$	(4.4	)	$	(11.6	)
Realized gains on non-controlled and non-affiliated investments		8.1			0.7
Realized losses on non-controlled and affiliated investments		—			(5.6	)
Realized gains on non-controlled and affiliated investments		28.8			1.3
Realized losses on foreign currency forwards		(0.2	)		—
Realized gains on foreign currency forwards		—			—
Realized losses on foreign currency transactions		(0.2	)		(0.3	)
Realized gains on foreign currency transactions		0.5			0.2
Net realized gains (losses) on investments	$	32.6		$	(15.3	)
Change in unrealized depreciation on non-controlled and non-affiliated investments		(19.8	)		(1.7	)
Change in unrealized appreciation on non-controlled and non-affiliated investments		32.4			8.4
Change in unrealized depreciation on foreign currency translation		—			(0.5	)
Change in unrealized appreciation on foreign currency translation		—			0.6
Change in unrealized depreciation on non-controlled and affiliated investments		(14.2	)		(0.4	)
Change in unrealized appreciation on non-controlled and affiliated investments		3.7			20.7
Change in unrealized depreciation on controlled and affiliated investments		—			(1.3	)
Change in unrealized appreciation on controlled and affiliated investments		0.6			(0.4	)
Change in unrealized depreciation on foreign currency forwards		—			(1.3	)
Change in unrealized appreciation on foreign currency forwards		2.1			—
Net unrealized appreciation (depreciation) on investments		4.8			24.1
Realized loss on asset acquisition		—			(3.8	)
Net realized and unrealized gains (losses) on investments and asset acquisition	$	37.4		$	5.0

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 our business or results of operations. These hedging activities, which are in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We 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.

During the years ended December 31, 2021 and 2020, our average U.S. Dollar notional exposure to foreign currency forward contracts were $61.5 million and $35.8 million, respectively.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments; (2) the cost of operations (including paying the Adviser); (3) debt service, repayment, and other financing costs; and (4) cash distributions to the holders of our common stock. We expect to generate additional liquidity from (1) future offerings of securities, (2) future borrowings and (3) cash flows from operations.

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As of December 31, 2021, we had $23.5 million in cash and cash equivalents and restricted cash and cash equivalents and $197.0 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of December 31, 2021, the undrawn capacity under our facilities is in excess of our unfunded commitments.

We believe that there is sufficient assets and liquidity to adequately cover future obligations under unfunded commitments. The cash and restricted cash balances, availability under the credit facilities and ongoing investment realizations are expected to provide sufficient liquidity. In addition, broadly syndicated loans in the portfolio could be sold over a relatively short period to generate liquidity. As of December 31, 2021, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we were in compliance with all the financial covenant requirements of our credit facilities as of December 31, 2021. However, any increase in realized losses or unrealized depreciation of our investment portfolio or significant reductions in our net asset value as a result of the effects of the COVID-19 pandemic, increase the risk of breaching the relevant covenants requirements. Any breach of these requirements may adversely affect the access to sufficient debt and equity capital.

Capital Share Activity

Between June 26, 2015, commencement of operations, and January 31, 2020, the date of Alcentra Acquisition, we entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including Crescent, providing for the private placement of our common shares. Pursuant to the Subscription Agreements, between June 26, 2015 and January 31, 2020, we issued 23,127,335 common shares for aggregate proceeds of $456.3 million, of which $10.0 million was from Crescent. Proceeds from the issuances were used to fund our investing activities and for other general corporate purposes. Subsequently, on January 31, 2020, we issued 5,203,016 shares in connection with the Alcentra Acquisition. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in the private offering were terminated.

During the year ended December 31, 2020, we issued 30,128 shares of our common stock to investors in connection with our dividend reinvestment plan for proceeds of $0.6 million.

During the year ended December 31, 2021 we issued 2,720,000 shares of our common stock for total proceeds of $58.0 million in connection with the equity offering on November 18, 2021.

Debt

Debt consisted of the following:

	As of December 31, 2021
	Aggregate Principal Amount Committed	Drawn Amount		Amount Available (1)		Carrying Value(2)		Weighted Average Debt Outstanding		Weighted Average Interest Rate
$ in millions
SPV Asset Facility	$                350.0	$	249.5	$	100.5	$	249.5	$	269.8		2.53	%
SMBC Corporate Revolving Facility	300.0		203.4		96.6		203.4		25.0		2.39	%
2023 Unsecured Notes	50.0		50.0		—		50.0		50.0		6.50	%
2026 Unsecured Notes	135.0		135.0		—		135.0		99.7		4.21	%
Ally Corporate Revolving Facility	—		—		—		—		83.2		—	%
InterNotes®	—		—		—		—		3.0		—	%
Total Debt	$                835.0	$	637.9	$	197.1	$	637.9	$	530.7		3.15	%

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	As of December 31, 2020
	Aggregate Principal Amount Committed		Drawn Amount		Amount Available (1)		Carrying Value(2)		Weighted Average Debt Outstanding		Weighted Average Interest Rate
SPV Asset Facility	$	350.0	$	260.2	$	89.8	$	260.2	$	235.3		2.63	%
Corporate Revolving Facility		200.0		149.9		50.1		149.9		150.4		2.93	%
2023 Unsecured Notes		50.0		50.0		—		50.0		15.0		6.49	%
InterNotes®		16.4		16.4		—		16.4		20.4		6.40	%
Total Debt	$	616.4	$	476.5	$	139.9	$	476.5	$	421.1		3.26	%

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

(2) Amount presented excludes netting of deferred financing costs.

SPV Asset Facility

On March 28, 2016, Crescent Capital BDC Funding, LLC (“CCAP SPV”), a wholly owned subsidiary of CCAP, entered into a loan and security agreement, as amended from time to time (the “SPV Asset Facility”) with us as the collateral manager, seller and equity holder, CCAP 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. We consolidate CCAP SPV in our consolidated financial statements and no gain or loss is recognized from the transfer of assets to and from CCAP SPV.

The maximum commitment amount under the SPV Asset Facility is $350.0 million, and may be increased with the consent of Wells Fargo or reduced upon our request. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to us 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) June 22, 2026 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 LIBOR plus a margin with no LIBOR floor. The margin is between 1.65% and 2.10% as determined by the proportion of liquid and illiquid loans pledged to the SPV Asset Facility. We generally pay unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The unused facility fee rate may vary based on the utilization. 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.

The facility size is subject to availability under the borrowing base, which is based on the amount of CCAP SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits.

SMBC Corporate Revolving Facility

On October 27, 2021, we entered into a senior secured revolving credit agreement with Sumitomo Mitsui Banking Corporation, as Administrative Agent, Collateral Agent and Lender (the “SMBC Corporate Revolving Facility”). The maximum principal amount of the SMBC Corporate Revolving Facility is $300.0 million, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at LIBOR plus 1.875% or 2.000%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no LIBOR floor. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on October 27, 2026

Ally Corporate Revolving Facility

On August 20, 2019, we entered into the “Ally Corporate Revolving Facility” with Ally Bank, as Administrative Agent and Arranger. The maximum principal amount of the Ally Corporate Revolving Facility was $200.0 million, subject to availability under the borrowing base. Borrowings under the Ally Corporate Revolving Facility bore interest at LIBOR plus a 2.35% margin with no LIBOR floor.

We terminated the Ally Corporate Revolving Facility concurrent with the closing of the SMBC Corporate Revolving Facility, on October 27, 2021.

2023 Unsecured Notes

On July 30, 2020, we completed a private offering of $50.0 million aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “2023 Unsecured Notes”). The 2023 Unsecured Notes were issued in two $25.0 million issuances on July 30, 2020 and October 28, 2020.

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The 2023 Unsecured Notes will mature on July 30, 2023 and may be redeemed in whole or in part, at our option, at par plus a “make-whole” premium, if applicable. Interest on the 2023 Unsecured Notes is due and payable semiannually in arrears on January 30 and July 30 of each year. As of December 31, 2021, we were in compliance with the terms of the note purchase agreement governing the 2023 Unsecured Notes.

2026 Unsecured Notes

On February 17, 2021, we completed a private offering of $135.0 aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the “2026 Unsecured Notes”). The initial issuance of $50.0 of 2026 Unsecured Notes closed February 17, 2021. The issuance of the remaining $85.0 of 2026 Unsecured Notes closed on May 5, 2021.

The 2026 Unsecured Notes will mature on February 17, 2026 and may be redeemed in whole or in part, at our option, at par plus a “make-whole” premium, if applicable. Interest on the 2026 Unsecured Notes is due and payable semiannually in arrears on February 17 and August 17 of each year. As of December 31, 2021, we were in compliance with the terms of the note purchase agreement governing the 2026 Unsecured Notes.

InterNotes^®

On January 31, 2020, in connection with the Alcentra Acquisition, we assumed direct unsecured fixed interest rate obligations or “InterNotes^®”. The InterNotes^® bore interest at fixed interest rates ranging between 6.25% and 6.75% and offered a variety of maturities ranging between February 15, 2021 and April 15, 2022. We redeemed or paid down the remaining $16.4 million of InterNotes^® during the first quarter of 2021.

The summary of costs incurred in connection with the SPV Asset Facility, SMBC Corporate Revolving Facility, Ally Corporate Revolving Facility, 2023 Unsecured Notes, 2026 Unsecured Notes and InterNotes^® is presented below:

$ in millions

	For the years ended December 31,
	2021		2020
Borrowing interest expense	$	16.2	$	13.4
Unused facility fees		1.0		0.8
Amortization of financing costs		2.6		1.3
Total interest and credit facility expenses	$	19.8	$	15.5
Weighted average outstanding balance	$	530.7	$	421.1

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 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 new debt financing opportunities in addition to our existing debt. The pricing and other terms of any such opportunities would depend upon market conditions and the performance of our business, among other factors.

In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with shareholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. 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 depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing.

As of December 31, 2021 and 2020, our asset coverage ratio was 201% and 217%, 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 to our consolidated financial statements for more detail on the debt facilities.

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STOCK PURCHASE AND REPURCHASE PROGRAMS

CCAP Repurchase Program

On January 31, 2020, we entered into a $20.0 million repurchase plan which allowed us to purchase shares in the open market any time our common stock traded below 90% of the most recently disclosed net asset value per share. The plan was subject to compliance with our liquidity, covenant, leverage and regulatory requirements. Pursuant to the terms of the repurchase plan, repurchases began on March 2, 2020. On April 9, 2020, our Board of Directors unanimously approved the termination of the stock repurchase program.

There was no stock repurchased for the year ended December 31, 2021. For the year ended December 31, 2020, we repurchased 192,415 shares at an average price per share, including commissions, of $11.48.

Sun Life Purchase Program

During the year ended December 31, 2021, Sun Life Financial Inc., the majority owner of Crescent, our investment advisor, commenced two $10.0 million stock purchase plans to make open-market purchases of shares of our common stock. The purchases were conducted in accordance with Rules 10b5-1 and 10b-18 under the Securities and Exchange Act of 1934, as amended, and other applicable securities laws and regulations that set certain restrictions on the method, timing, price, and volume of stock purchases. Below is the summary of share purchases made. The first plan was completed on October 15, 2021. No purchase plans were in place for the year ended December 31, 2020.

(in $ millions, except for per share amounts)

	For the year ended December 31, 2021
Dollar amount purchased	$	12.5
Shares purchased		664,014
Average price per share (inclusive of commissions paid)	$	18.87

Employees and Affiliates Purchase Program

An entity owned by certain officers of Crescent Capital BDC, Inc. and employees and affiliates of Crescent commenced multiple stock purchase plans to make open-market purchases of shares of our common stock. The purchases were conducted in accordance with Rules 10b5-1 and 10b-18 under the Securities and Exchange Act of 1934, as amended and other applicable securities laws and regulations that set certain restrictions on the method, timing, price, and volume of stock purchases. Below is the summary of share purchases made.

(in $ millions, except for per share amounts)

	For the year ended December 31, 2021		For the year ended December 31, 2020
Dollar amount purchased	$	1.3	$	4.6
Shares purchased		71,593		369,005
Average price per share including commission	$	17.91	$	12.39

The most recent affiliate purchase program was terminated on November 15, 2021 following the announcement that the Company had commenced an underwritten primary equity offering.

OFF BALANCE SHEET ARRANGEMENTS

Our investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on our Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. As of December 31, 2021 and 2020, we had aggregate unfunded commitments totaling $196.7 million and $80.8 million, respectively.

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RECENT DEVELOPMENTS

On February 18, 2022, our Board of Directors declared a regular cash dividend of $0.41 per share, which will be paid on April 15, 2022 to stockholders of record as of March 31, 2022.

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ITEM 7A. 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 December 31, 2021, 98.5% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The SPV Asset Facility and SMBC Corporate Revolving Facility also bear interest at variable rates.

Assuming that our Consolidated Statements of Assets and Liabilities as of December 31, 2021 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			Net Interest Income
Up 300 basis points	$	27.1		$	13.6		$	13.5
Up 200 basis points		15.5			9.1			6.4
Up 100 basis points		3.9			4.5			(0.6	)
Up 75 basis points		1.4			3.4			(2.0	)
Up 50 basis points		0.6			2.3			(1.7	)
Up 25 basis points		0.3			1.1			(0.8	)
Down 25 basis points		(0.2	)		(0.9	)		0.7
Down 50 basis points		(0.2	)		(0.9	)		0.7
Down 75 basis points		(0.2	)		(0.9	)		0.7
Down 100 basis points		(0.2	)		(0.9	)		0.7

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.

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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. To the extent the loan or investment is based on a floating rate, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate. As of December 31, 2021, we had £24.1 million, €17.8 million and CAD $30.7 million notional exposure to foreign currency forward contracts related to investments totaling £24.0 million, €18.7 million and CAD $31.4 million at par.

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ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CRESCENT CAPITAL BDC, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	66
Consolidated Statements of Assets and Liabilities as of December  31, 2021 and 2020	67
Consolidated Statements of Operations for the years ended December  31, 2021, 2020, and 2019	68
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2021, 2020, and 2019	69
Consolidated Statements of Cash Flows for the years ended December  31, 2021, 2020, and 2019	72
Consolidated Schedules of Investments as of December 31, 2021 and 2020	74
Notes to Consolidated Financial Statements	118

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Crescent Capital BDC, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities of Crescent Capital BDC, Inc. (the Company), including the consolidated schedules of investments, as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations, changes in its net assets, and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 2021 and 2020, by correspondence with the custodian, syndication agents and underlying investee companies, or by other appropriate auditing procedures where confirmation was not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2015.

Los Angeles, California

February 23, 2022

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Crescent Capital BDC, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

	As of December 31, 2021			As of December 31, 2020
Assets
Investments, at fair value
Non-controlled non-affiliated (cost of $1,150,173 and $920,693, respectively)	$	1,165,897		$	923,912
Non-controlled affiliated (cost of $41,242 and $50,431, respectively)		51,701			71,354
Controlled (cost of $53,431 and $40,000, respectively)		52,768			38,735
Cash and cash equivalents		10,069			1,896
Restricted cash and cash equivalents		13,457			12,953
Receivable for investments sold		14,871			6
Interest and dividend receivable		6,763			3,859
Unrealized appreciation on foreign currency forward contracts		2,115			264
Deferred tax assets		42			630
Other assets		126			543
Total assets	$	1,317,809		$	1,054,152
Liabilities
Debt (net of deferred financing costs of $6,897 and $4,600)	$	631,040		$	471,932
Distributions payable		12,664			11,549
Incentive fees payable		6,924			—
Interest and other debt financing costs payable		5,513			3,923
Management fees payable		3,830			1,867
Deferred tax liabilities		956			1,324
Unrealized depreciation on foreign currency forward contracts		631			896
Directors’ fees payable		114			98
Accrued expenses and other liabilities		3,852			2,563
Total liabilities	$	665,524		$	494,152
Commitments and Contingencies (Note 8)
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, 30,887,360 and 28,167,360 shares issued and outstanding, respectively)		31			28
Paid-in capital in excess of par value		666,162			594,658
Accumulated earnings (loss)		(13,908	)		(34,686	)
Total net assets	$	652,285		$	560,000
Total liabilities and net assets	$	1,317,809		$	1,054,152
Net asset value per share	$	21.12		$	19.88

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Crescent Capital BDC, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

	For the years ended December 31,
	2021			2020			2019
Investment Income:
From non-controlled non-affiliated investments:
Interest income	$	81,371		$	66,078		$	45,237
Paid-in-kind interest		1,881			2,169			560
Dividend income		1,919			323			353
Other income		791			1,060			807
From non-controlled affiliated investments:
Interest income		1,170			1,420			1,902
Paid-in-kind interest		1,235			1,456			—
Dividend income		2,414			2,407			2,318
Other income		3			—			—
From controlled investments:
Dividend income		3,200			2,200			2,300
Interest income		2			—			—
Total investment income		93,986			77,113			53,477
Expenses:
Interest and other debt financing costs		19,766			15,485			13,362
Management fees		14,118			11,438			9,198
Income based incentive fees		9,849			8,639			4,752
Capital gains based incentive fees		6,324			—			—
Professional fees		1,769			1,460			957
Directors’ fees		475			437			303
Organization expense		—			—			136
Other general and administrative expenses		2,628			2,544			2,201
Total expenses		54,929			40,003			30,909
Management fees waiver		(3,302	)		(4,672	)		(4,502	)
Income based incentive fees waiver		(7,517	)		(8,639	)		(4,752	)
Net expenses		44,110			26,692			21,655
Net investment income before taxes		49,876			50,421			31,822
Income and excise taxes		2,250			541			139
Net investment income		47,626			49,880			31,683
Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on:
Non-controlled non-affiliated investments		3,687			(10,889	)		824
Non-controlled affiliated investments		28,810			(4,314	)		(7,900	)
Foreign currency transactions		311			(83	)		(70	)
Foreign currency forward contracts		(193	)		—			—
Net change in unrealized appreciation (depreciation) on:
Non-controlled non-affiliated investments and foreign currency translation		12,535			7,437			3,746
Non-controlled affiliated investments		(10,464	)		19,686			100
Controlled investments		602			(1,707	)		442
Foreign currency forward contracts		2,116			(1,324	)		675
Net realized and unrealized gains (losses) on investments		37,404			8,806			(2,183	)
Realized loss on asset acquisition		—			(3,825	)		—
Net realized and unrealized gains (losses) on investments and asset acquisition		37,404			4,981			(2,183	)
Benefit (provision) for taxes on realized gain on investments		(1,177	)		46			(67	)
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments		(220	)		(235	)		(154	)
Net increase (decrease) in net assets resulting from operations	$	83,633		$	54,672		$	29,279
Per common share data:
Net increase (decrease) in net assets resulting from operations per share (basic and diluted):	$	2.94		$	1.98		$	1.69
Net investment income per share (basic and diluted):	$	1.67		$	1.80		$	1.83
Weighted average shares outstanding (basic and diluted):		28,477,771			27,681,757			17,344,640

68

Crescent Capital BDC, Inc.

Consolidated Statements of Changes in Net Assets

(in thousands, except share and per share data)

	Common Stock
	Shares		Par Amount		Paid in Capital in Excess of Par Value			Accumulated Earnings (Loss)			Total Net Assets
Balance at December 31, 2020		28,167,360	$	28	$	594,658		$	(34,686	)	$	560,000
Net increase (decrease) in net assets resulting from operations:
Net investment income		—		—		—			47,626			47,626
Net realized gain (loss) on investments, foreign currency transactions and foreign currency forwards		—		—		—			32,615			32,615
Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation		—		—		—			4,789			4,789
Benefit (provision) for taxes on realized gain on investments		—		—		—			(1,177	)		(1,177	)
Benefit (provision) for taxes on unrealized appreciation/(depreciation) on investments		—		—		—			(220	)		(220	)
Issuance of common stock		2,720,000		3		52,629			—			52,632
Deemed contribution from the Advisor (Note 3)		—		—		5,386			—			5,386
Equity offering costs		—		—		(523	)		—			(523	)
Distributions to stockholders		—		—		—			(48,843	)		(48,843	)
Total increase (decrease) for the year ended December 31, 2021		2,720,000	$	3	$	57,492		$	34,790		$	92,285
Tax recalssification of stockholders’ equity in accordance with GAAP		—		—		14,012			(14,012	)		—
Balance at December 31, 2021		30,887,360	$	31	$	666,162		$	(13,908	)	$	652,285
Distributions declared per share											$	1.69

69

Crescent Capital BDC, Inc.

Consolidated Statements of Changes in Net Assets

(in thousands, except share and per share data)

	Common Stock
	Shares			Par Amount		Paid in Capital in Excess of Par Value			Accumulated Earnings (Loss)			Total Net Assets
Balance at December 31, 2019		20,862,314		$	21	$	414,293		$	(7,397	)	$	406,917
Net increase (decrease) in net assets resulting from operations:
Net investment income		—			—		—			49,880			49,880
Net realized gain (loss) on investments and foreign currency transactions		—			—		—			(15,286	)		(15,286	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation		—			—		—			24,092			24,092
Realized loss on asset acquisition		—			—		—			(3,825	)		(3,825	)
Provision for taxes on realized gain on investment		—			—		—			46			46
Benefit/ (Provision) for taxes on unrealized appreciation/ (depreciation) on investments		—			—		—			(235	)		(235	)
Stockholder distributions:
Issuance of common stock		2,265,021			2		44,295			—			44,297
Issuance in connection with asset acquisition (Note 14)		5,202,312			5		101,944			—			101,949
Issuance of common shares pursuant to dividend reinvestment plan		30,128			—		589			—			589
Repurchase of common stock		(192,415	)		—		(2.208	)		—			(2,208	)
Distributions to stockholders		—			—		—			(46,216	)		(46,216	)
Total increase (decrease) for the year ended December 31. 2020		7,305,046		$	7	$	144,620		$	8,456		$	153,083
Tax reclassification of stockholders’ equity in accordance with GAAP		—			—		35,745			(35,745	)		—
Balance at December 31, 2020		28,167,360		$	28	$	594,658		$	(34,686	)	$	560,000
							��
Distributions declared per share												$	1.64

70

Crescent Capital BDC, Inc.

Consolidated Statements of Changes in Net Assets

(in thousands, except share and per share data)

	Common Stock
	Shares		Par Amount		Paid in Capital in Excess of Par Value			Accumulated Earnings (Loss)			Total Net Assets
Balance at December 31, 2018		13,358,289	$	13	$	266,024		$	(6,458	)	$	259,579
Net increase (decrease) in net assets resulting from operations:
Net investment income		—		—		—			31,683			31,683
Net realized gain (loss) on investments and foreign currency transactions		—		—		—			(7,146	)		(7,146	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and foreign currency translation		—		—		—			4,963			4,963
Provision for taxes on realized gain on investment		—		—		—			(67	)		(67	)
Benefit/ (Provision) for taxes on unrealized appreciation/ (depreciation) on investments		—		—		—			(154	)		(154	)
Stockholder distributions:
Issuance of common stock		7,427,056		7		145,993			—			146,000
Issuance of common shares pursuant to dividend reinvestment plan		76,969		1		1,508			—			1,509
Equity offering costs		—		—		(191	)		—			(191	)
Distributions to stockholders		—		—		—			(29,259	)		(29,259	)
Total increase (decrease) for the year ended December 31, 2019		7,504,025	$	8	$	147,310		$	20		$	147,338
Tax reclassification of stockholders’ equity in accordance with GAAP		—		—		959			(959	)		—
Balance at December 31,2019		20,862,314	$	21	$	414,293		$	(7,397	)	$	406,917
Distributions declared per share											$	1,64

71

Crescent Capital BDC, Inc.

Consolidated Statements of Cash Flows

(in thousands, except share and per share data)

	For the years ended December 31,
	2021			2020			2019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	83,633		$	54,672		$	29,279
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
Purchases of investments		(647,376	)		(352,392	)		(378,342	)
Paid-in-kind interest income		(3,148	)		(3,625	)		(560	)
Proceeds from sales of investments and principal repayments		461,268			258,979			145,828
Net realized (gain) loss on investments, foreign currency transactions and foreign currency forward contracts		(33,162	)		15,786			7,676
Realized loss on asset acquisition(2)		—			3,825			—
Acquisition of Alcentra Capital Corporation, net of cash acquired(2)		—			(12,884	)		—
Net change in unrealized (appreciation) depreciation on investments and foreign currency translation		(2,673	)		(25,416	)		(4,288	)
Net change in unrealized (appreciation) depreciation on foreign currency forward contracts		(2,116	)		1,324			(675	)
Amortization of premium and accretion of discount, net		(11,284	)		(5,109	)		(3,016	)
Amortization of deferred financing costs		2,554			1,329			1,040
Change in operating assets and liabilities:
(Increase) decrease in receivable for investments sold		(14,865	)		549			(123	)
(Increase) decrease in interest receivable		(2,904	)		(25	)		(1,498	)
(Increase) decrease in deferred tax asset		588			(209	)		(121	)
(Increase) decrease in other assets		417			2,480			(3,026	)
Increase (decrease) in payable for investments purchased		—			—			(300	)
Increase (decrease) in management fees payable		1,963			524			380
Increase (decrease) in incentive fees payable		6,924			—			—
Increase (decrease) in directors’ fees payable		16			24			12
Increase (decrease) in interest and other debt financing costs payable		1,590			(456	)		1,695
Increase (decrease) in deferred tax liability		(368	)		445			275
Increase (decrease) in accrued expenses and other liabilities		1,289			(1,620	)		2,778
Net cash provided by (used for) operating activities	$	(157,654	)	$	(61,799	)	$	(202,986	)
Cash flows from financing activities:
Issuance of common stock		52,632			44,297			146,000
Deemed contribution from the Advisor (Note 3)		5,386			—			—
Repurchase of common stock		—			(2,208	)		—
Deferred financing and debt issuance costs paid		(4,851	)		(2,498	)		(2,776	)
Distributions paid		(47,728	)		(42,632	)		(24,540	)
Equity offering cost		(523	)		—			(191	)
Borrowings on credit facilities		654,974			352,342			308,250
Repayments on credit facilities		(612,151	)		(302,227	)		(220,746	)
Issuance of unsecured debt		135,000			50,000			—
Repayments on InterNotes ®		(16,418	)		(33,853	)		—
Net cash provided by (used for) financing activities		166,321			63,221			205,997
Effect of exchange rate changes on cash denominated in foreign currency		10			—			47
Net increase (decrease) in cash, cash equivalents, restricted cash and foreign currency		8,677			1,422			3,058
Cash, cash equivalents, restricted cash and foreign currency, beginning of period		14,849			13,427			10,369
Cash, cash equivalents, restricted cash and foreign currency, end of period(1)	$	23,526		$	14,849		$	13,427
Supplemental and non-cash financing activities:
Cash paid during the year for interest	$	15,474		$	14,489		$	10,626
Cash paid during the year for taxes	$	2,176		$	692		$	122
Issuance of common stock pursuant to dividend reinvestment plan		—		$	589		$	1,509
Accrued but unpaid distributions	$	12,664		$	11,549		$	8,554
Issuance of shares in connection with asset acquisition (Note 13)		—		$	101,949		$	—

72

⁽¹⁾ As of December 31, 2021, the balance included cash and cash equivalents of $10,069 (including cash denominated in foreign currency of $1,064) and restricted cash and cash equivalents of $13,457 (including cash denominated in foreign currency of $743). As of December 31, 2020, the balance included cash and cash equivalents of $1,746 (including cash denominated in foreign currency of $132) and restricted cash and cash equivalents of $12,953. As of December 31, 2019, the balance included cash and cash equivalents of $3,867 (including cash denominated in foreign currency of $709) and restricted cash and cash equivalents of $8,851.

⁽²⁾ After the close of business on January 31, 2020, in connection with the Alcentra Acquisition (as defined in Note 1 and further discussed in Note 13), the Company acquired net assets of $114,431 which included $195,682 of investments, $3,409 cash and cash equivalents and $1,398 of other assets, net of $86,058 of assumed liabilities, for the total cash and stock consideration of $118,256, inclusive of $7,250 of asset acquisition costs.

73

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Investments (1)(2)(3)
United States
Debt Investments
Automobiles & Components
Auto-Vehicle Parts, LLC(4) (5)	Senior Secured First Lien Revolver						01/2023	$	—	$	(2	)		—	%	$	(1	)
Auto-Vehicle Parts, LLC	Senior Secured First Lien Term Loan	L + 550 (100 Floor)		6.50	%		01/2023		4,517		4,501			0.7			4,511
Auto-Vehicle Parts, LLC	Senior Secured First Lien Term Loan	L + 550 (100 Floor)		6.50	%		01/2023		2,289		2,268			0.4			2,285
Continental Battery Company	Unitranche First Lien Term Loan	L + 675 (100 Floor)		7.75	%		01/2027		7,267		7,138			1.1			7,121
Continental Battery Company	Unitranche First Lien Delayed Draw Term Loan	L + 675 (100 Floor)		7.75	%		01/2027		2,679		2,655			0.0			2,625
Sun Acquirer Corp.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (75 Floor)		6.50	%		09/2028		5,136		4,998			0.8			5,136
Sun Acquirer Corp.(4) (5)	Unitranche First Lien Revolver						09/2028		—		(35	)		—			—
Sun Acquirer Corp.	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		09/2028		13,043		12,795			2.0			13,043
Sun Acquirer Corp.	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		09/2028		2,500		2,450			0.4			2,500
									37,431		36,768			5.4			37,220
Capital Goods
Envocore , LLC(7) (8)	Senior Secured First Lien Term Loan	750		7.50	%		12/2025		6,944		6,872			1.1			6,872
Envocore , LLC(7) (8)	Senior Secured Second Lien Term Loan	1000 PIK		10.00	%		12/2026		6,944		5,957			0.9			5,957
Envocore , LLC(5) (7) (8)	Senior Secured First Lien Revolver	750		7.50	%		12/2025		608		602			0.1			579
Eshipping	Senior Secured First Lien Term Loan	L + 575 (100 Floor)		6.75	%		11/2027		8,050		7,891			1.2			7,972
Eshipping(4) (5)	Senior Secured First Lien Delayed Draw Term Loan						11/2027		—		(18	)		—			(18	)
Eshipping(5)	Senior Secured First Lien Revolver	L + 575 (100 Floor)		6.75	%		11/2027		197		175			—			186
Painters Supply & Equipment Company(4) (5)	Unitranche First Lien Delayed Draw Term Loan						08/2027		—		(8	)		—			(13	)

74

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Painters Supply & Equipment Company (5)	Unitranche First Lien Revolver	L + 575 (100 Floor)		6.75	%		08/2027	$	92	$	82			—	%	$	84
Painters Supply & Equipment Company	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		08/2027		2,045		2,006			0.3			2,015
Potter Electric Signal Company	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		12/2025		1,117		1,103			0.2			1,108
Potter Electric Signal Company (5)	Senior Secured First Lien Revolver	L + 475 (100 Floor)		5.75	%		12/2024		88		85			—			84
Potter Electric Signal Company	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		12/2025		2,454		2,440			0.4			2,436
Potter Electric Signal Company	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		12/2025		466		464			0.1			463
United Flow Technologies	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		10/2027		8,550		8,384			1.3			8,467
United Flow Technologies	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		10/2027		1,200		1,177			0.2			1,188
United Flow Technologies(4) (5)	Unitranche First Lien Delayed Draw Term Loan						10/2027		—		(37	)		—			(36	)
United Flow Technologies(4) (5)	Unitranche First Lien Revolver						10/2027		—		(31	)		—			(16	)
									38,755		37,144			5.8			37,328
Commercial & Professional Services
ASP MCS Acquisition Corp. (6)	Senior Secured Second Lien Term Loan	L + 600 (100 Floor)		7.00	%		10/2025		292		273			0.0			289
Battery Solutions, Inc. (6) (8)	Unsecured Debt	1400 PIK		14.00	%		06/2023		1,436		1,428			0.2			1,398
Battery Solutions, Inc. (6) (8)	Unsecured Debt	1400 PIK		14.00	%		06/2023		387		387			0.1			377
CHA Holdings, Inc.	Senior Secured First Lien Delayed Draw Term Loan	L + 450 (100 Floor)		5.50	%		04/2025		1,002		1,000			0.1			962
CHA Holdings, Inc.	Senior Secured First Lien Term Loan	L + 450 (100 Floor)		5.50	%		04/2025		4,753		4,742			0.7			4,562
Consolidated Label Co., LLC (4) (5)	Senior Secured First Lien Revolver						07/2026		—		(10	)		—			(3	)
Consolidated Label Co., LLC	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		07/2026		4,307		4,238			0.7			4,287
Consolidated Label Co., LLC	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		07/2026		3,831		3,762			0.6			3,813
Galway Borrower, LLC	Unitranche First Lien Term Loan	L + 525 (75 Floor)		6.00	%		09/2028		12,886		12,655			2.0			12,757

75

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Galway Borrower, LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						09/2028	$	—	$		(24)		—	%	$		(19)
Galway Borrower, LLC(4) (5)	Unitranche First Lien Revolver						09/2027		—		(18	)		—			(17	)
GH Parent Holdings Inc.	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		05/2027		13,142		12,958			2.0			12,828
GH Parent Holdings Inc.(5)	Unitranche First Lien Revolver	L + 550 (100 Floor)		6.50	%		05/2027		208		180			0.0			158
GH Parent Holdings Inc.(5)	Unitranche First Lien Delayed Draw Term Loan						05/2027		—		—			—			(133	)
Hepaco, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 550 (100 Floor) (including 50 PIK)		6.50	%		08/2024		4,125		4,106			0.6			3,845
Hepaco, LLC	Senior Secured First Lien Term Loan	L + 550 (100 Floor) (including 50 PIK)		6.50	%		08/2024		5,059		5,036			0.7			4,716
Hepaco, LLC(5)	Senior Secured First Lien Revolver	L + 550 (100 Floor) (including 50 PIK)		6.50	%		08/2024		766		766			0.1			704
Hercules Borrower LLC	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		12/2026		18,982		18,588			3.1			19,361
Hercules Borrower LLC(4) (5)	Unitranche First Lien Revolver						12/2026		—		(46	)		—			44
Hercules Borrower LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						12/2026		—		(21	)		—			20
Hercules Borrower LLC	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		12/2026		247		242			0.0			249
Hsid Acquisition, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		01/2026		3,823		3,767			0.6			3,810
Hsid Acquisition, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		01/2026		2,864		2,824			0.4			2,854
Hsid Acquisition, LLC(4) (5)	Senior Secured First Lien Revolver						01/2026		—		(10	)		—			(3	)
Hsid Acquisition, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		01/2026		249		245			0.0			249
ISS Compressors Industries, Inc.(4) (5)	Senior Secured First Lien Revolver						02/2026		—		(6	)		—			(39	)
ISS Compressors Industries, Inc.	Senior Secured First Lien Term Loan	L + 550 (100 Floor)		6.50	%		02/2026		8,965		8,902			1.3			8,550

76

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate	Maturity/ Dissolution Date	Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
MHS Acquisition Holdings, LLC(8)	Unsecured Debt	1350 PIK	13.50%	03/2026	$	222	$	214			0.0	%	$	222
MHS Acquisition Holdings, LLC(8)	Unsecured Debt	1350 PIK	13.50%	03/2026		666		662			0.1			666
MHS Acquisition Holdings, LLC(5)	Senior Secured First Lien Delayed Draw Term Loan	L + 575 (100 Floor)	6.75%	07/2027		130		127			0.0			130
MHS Acquisition Holdings, LLC(4) (5)	Senior Secured First Lien Revolver			07/2027		—		(3	)		—			—
MHS Acquisition Holdings, LLC	Senior Secured First Lien Term Loan	L + 575 (100 Floor)	6.75%	07/2027		1,724		1,691			0.3			1,724
Nexant Volt MergerSub, Inc.	Senior Secured First Lien Term Loan	L + 500 (100 Floor)	6.00%	05/2027		5,672		5,566			0.9			5,672
Nexant Volt MergerSub, Inc.(5)	Senior Secured First Lien Revolver	L + 500 (100 Floor)	6.00%	05/2027		400		391			0.1			400
Pye-Barker Fire & Safety, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)	7.00%	11/2027		4,968		4,799			0.8			5,012
Pye-Barker Fire & Safety, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)	7.00%	11/2027		3,696		3,553			0.6			3,728
Pye-Barker Fire & Safety, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)	7.00%	11/2027		9,923		9,558			1.5			10,015
Pye-Barker Fire & Safety, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 575 (75 Floor)	6.50%	11/2027		1,995		1,925			0.3			2,013
Pye-Barker Fire & Safety, LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (75 Floor)	6.25%	11/2027		1,193		1,156			0.2			1,217
Pye-Barker Fire & Safety, LLC(4) (5)	Unitranche First Lien Revolver			11/2027		—		(30	)		—			14
Receivable Solutions, Inc.(4) (5)	Senior Secured First Lien Revolver			10/2024		—		(3	)		—			—
Receivable Solutions, Inc.	Senior Secured First Lien Term Loan	L + 500 (100 Floor)	6.00%	10/2024		2,400		2,371			0.4			2,400
Receivable Solutions, Inc.	Senior Secured First Lien Term Loan			10/2024		—		—			—			—
Seko Global Logistics Network, LLC(4) (5) (11)	Senior Secured First Lien Revolver			12/2026		—		(19	)		—			—
Seko Global Logistics Network, LLC(11)	Senior Secured First Lien Term Loan	L + 500 (100 Floor)	6.00%	12/2026		5,037		4,965			0.8			5,037
Service Logic Acquisition, Inc.	Senior Secured Second Lien Term Loan	L + 850 (100 Floor)	9.50%	10/2028		8,755		8,522			1.4			9,012

77

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Service Logic Acquisition, Inc.(5)	Senior Secured Second Lien Delayed Draw Term Loan	L + 850 (100 Floor)		9.50	%		10/2028	$	2,043	$	1,974			0.3	%	$	2,092
Spear Education(4) (5)	Senior Secured First Lien Delayed Draw Term Loan						02/2025		—		(20	)		—			—
Spear Education	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		02/2025		6,755		6,710			1.0			6,755
TecoStar Holdings, Inc.	Senior Secured Second Lien Term Loan	L + 850 (100 Floor)		9.50	%		11/2024		5,000		4,941			0.7			4,698
UP Acquisition Corp.	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		05/2024		1,176		1,163			0.2			1,110
UP Acquisition Corp.(5)	Unitranche First Lien Revolver	L + 625 (100 Floor)		7.25	%		05/2024		443		431			0.1			372
UP Acquisition Corp.	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		05/2024		4,290		4,244			0.6			4,048
Xcentric Mold and Engineering Acquisition Company, LLC	Senior Secured First Lien Revolver	L + 700 (100 Floor) (including 100 PIK)		8.00	%		09/2022		717		717			0.1			625
Xcentric Mold and Engineering Acquisition Company, LLC	Senior Secured First Lien Term Loan	L + 700 (100 Floor) (including 100 PIK)		8.00	%		09/2022		4,410		4,410			0.6			3,839
									158,939		155,979			24.2			156,420
Consumer Services
Effective School Solutions LLC	Senior Secured First Lien Term Loan	L + 550 (100 Floor)		6.50	%		11/2027		7,750		7,598			1.2			7,674
Effective School Solutions LLC(4) (5)	Senior Secured First Lien Revolver						11/2027		—		(29	)		—			(14	)
Effective School Solutions LLC(4) (5)	Senior Secured First Lien Delayed Draw Term Loan						11/2027		—		(22	)		—			(22	)
Everlast Parent Inc.	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		10/2026		13,888		13,594			2.2			14,027
Everlast Parent Inc.(4) (5)	Unitranche First Lien Revolver						10/2026		—		(33	)		—			(17	)
Everlast Parent Inc.	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		10/2026		3,412		3,335			0.5			3,379
FS Whitewater Borrower, LLC	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		12/2027		5,172		5,070			0.8			5,069

78

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
FS Whitewater Borrower, LLC (4)(5)	Unitranche First Lien Delayed Draw Term Loan						12/2027	$	—	$	(17	)		—	%	$	(34	)
FS Whitewater Borrower, LLC (5)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (75 Floor)		6.50	%		12/2027		1,290		1,258			0.2			1,255
FS Whitewater Borrower, LLC (4)(5)	Unitranche First Lien Revolver						12/2027		—		(14	)		—			(14	)
HGH Purchaser, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		11/2025		2,811		2,784			0.4			2,784
HGH Purchaser, Inc.	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		11/2025		3,339		3,265			0.5			3,313
HGH Purchaser, Inc.(5)	Unitranche First Lien Revolver	L + 625 (100 Floor)		7.25	%		11/2025		280		264			—			272
HGH Purchaser, Inc.	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		11/2025		7,946		7,805			1.2			7,882
Learn-It Systems, LLC(5)	Senior Secured First Lien Revolver	L + 450 (100 Floor)		5.50	%		03/2025		630		613			0.1			617
Learn-It Systems, LLC(5)	Senior Secured First Lien Delayed Draw Term Loan	L + 450 (100 Floor)		5.50	%		03/2025		2,537		2,488			0.4			2,499
Learn-It Systems, LLC	Senior Secured First Lien Term Loan	L + 450 (100 Floor)		5.50	%		03/2025		4,293		4,212			0.6			4,228
Learn-It Systems, LLC(5)	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		05/2023		676		641			0.1			656
Stepping Stones Healthcare Services, LLC	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		12/2028		13,208		12,917			2.0			13,009
Stepping Stones Healthcare Services, LLC (4)(5)	Unitranche First Lien Delayed Draw Term Loan						12/2028		—		(38	)		—			(57	)
Stepping Stones Healthcare Services, LLC (4)(5)	Unitranche First Lien Revolver						12/2026		—		(38	)		0.0			(28	)
United Language Group, Inc.	Senior Secured First Lien Revolver	L + 675 (100 Floor)		7.75	%		01/2022		400		400			0.1			391
United Language Group, Inc.	Senior Secured First Lien Term Loan	L + 675 (100 Floor)		7.75	%		01/2022		4,594		4,588			0.7			4,488
WeddingWire, Inc.(12)	Senior Secured Second Lien Term Loan	L + 825		8.38	%		12/2026		5,000		4,963			0.8			4,950
Wrench Group LLC	Senior Secured Second Lien Term Loan	L + 788		8.01	%		04/2027		4,833		4,720			0.7			4,833

79

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
								$	82,059	$	80,324			12.5	%	$	81,140
Energy
BJ Services, LLC	Unitranche First Lien Term Loan	L + 700 (150 Floor)		8.50	%		01/2023		277		276			—			277
BJ Services, LLC (9)(10)	Unitranche First Lien - Last Out Term Loan						01/2023		8,075		8,014			0.9			5,861
Black Diamond Oilfiefld Rentals, LLC	Senior Secured First Lien Term Loan	L + 950 (100 Floor)		10.50	%		03/2022		9,248		9,178			1.4			9,017
									17,600		17,468			2.3			15,155
Food & Staples Retailing
Isagenix International, LLC (12)	Senior Secured First Lien Term Loan	L + 575 (100 Floor)		6.75	%		06/2025		5,616		5,602			0.6			4,209
Food, Beverage & Tobacco
JTM Foods LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		05/2027		5,025		4,944			0.8			4,959
JTM Foods LLC(5)	Senior Secured First Lien Revolver	L + 475 (100 Floor)		5.75	%		05/2027		320		307			0.0			310
JTM Foods LLC (4)(5)	Senior Secured First Lien Delayed Draw Term Loan						05/2027		—		(7	)		—			(10	)
Mann Lake Ltd.	Senior Secured First Lien Revolver	L + 675 (100 Floor)		7.75	%		10/2024		900		892			0.1			879
Mann Lake Ltd.	Senior Secured First Lien Term Loan	L + 675 (100 Floor)		7.75	%		10/2024		3,787		3,747			0.6			3,700
									10,032		9,883			1.5			9,838
Health Care Equipment & Services
ACI Group Holdings, Inc. (4)(5)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (75 Floor)		6.25	%		08/2028		18		(6	)		—			18
ACI Group Holdings, Inc. (4)(5)	Unitranche First Lien Revolver						08/2027		—		(14	)		—			—
ACI Group Holdings, Inc.	Unitranche First Lien Term Loan	L + 550 (75 Floor)		6.25	%		08/2028		6,993		6,818			1.1			6,993
Advanced Diabetes Supply	Senior Secured First Lien Term Loan	L + 525 (100 Floor)		6.25	%		07/2025		3,741		3,707			0.6			3,741
Aegis Sciences Corporation (12)	Senior Secured First Lien Term Loan	L + 550 (100 Floor)		6.50	%		05/2025		3,388		3,207			0.5			3,298
Ameda, Inc.	Senior Secured First Lien Term Loan	L + 700 (100 Floor)		8.00	%		09/2022		2,174		2,167			0.3			2,063
Ameda, Inc. (5)	Senior Secured First Lien Revolver	L + 700 (100 Floor)		8.00	%		09/2022		188		187			0.0			172

80

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Arrow Management Acquisition, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		10/2027	$	4,950	$	4,853			0.8	%	$	4,925
Arrow Management Acquisition, LLC(5)	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		10/2027		172		150			0.0			161
Arrow Management Acquisition, LLC(4) (5)	Senior Secured First Lien Revolver						10/2027		—		(14	)		—			(4	)
Avalign Technologies, Inc. (12)	Senior Secured First Lien Term Loan	L + 450		4.63	%		12/2025		16,665		16,565			2.5			16,332
Centria Subsidiary Holdings, LLC(4) (5)	Unitranche First Lien Revolver						12/2025		—		(39	)		—			(1	)
Centria Subsidiary Holdings, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		12/2025		11,635		11,397			1.8			11,630
CRA MSO, LLC	Senior Secured First Lien Term Loan	L + 700 (100 Floor)		8.00	%		12/2023		1,213		1,202			0.2			1,181
CRA MSO, LLC(5)	Senior Secured First Lien Revolver	L + 700 (100 Floor)		8.00	%		12/2023		60		58			0.0			55
EMS Buyer, Inc.	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		11/2027		9,850		9,680			1.5			9,753
EMS Buyer, Inc.(4) (5)	Unitranche First Lien Revolver						11/2027		—		(9	)		—			(5	)
FH MD Buyer, Inc(12)	Senior Secured First Lien Term Loan	L + 500 (75 Floor)		5.75	%		07/2028		19,950		19,760			3.1			19,851
GrapeTree Medical Staffing, LLC	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		05/2024		6,250		6,143			0.9			6,190
GrapeTree Medical Staffing, LLC(4) (5)	Senior Secured First Lien Revolver						05/2024		—		(10	)		—			(6	)
GrapeTree Medical Staffing, LLC(5)	Senior Secured First Lien Delayed Draw Term Loan						05/2024		—		—			—			(27	)
Great Lakes Dental Partners, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		06/2026		4,975		4,884			0.7			4,881
Great Lakes Dental Partners, LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						06/2026		—		(15	)		—			(16	)
Great Lakes Dental Partners, LLC(5)	Unitranche First Lien Revolver	L + 600 (100 Floor)		7.00	%		06/2026		210		203			—			202
HCAT Acquisition, Inc.(5)	Unitranche First Lien Term Loan	L + 800 (100 Floor)		9.00	%		11/2022		14,181		13,487			2.1			14,016
HCAT Acquisition, Inc.	Unitranche First Lien Revolver	L + 800 (100 Floor)		9.00	%		11/2022		3,836		3,649			0.6			3,792

81

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
HCAT Acquisition, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 800 (100 Floor)		9.00	%		11/2022	$	2,231	$	2,122			0.3	%	$	2,205
HCOS Group Intermediate III LLC	Senior Secured First Lien Term Loan	L + 600 (100 Floor)		7.00	%		09/2026		11,455		11,266			1.7			11,312
HCOS Group Intermediate III LLC(4) (5)	Senior Secured First Lien Revolver						09/2026		—		(19	)		—			(14	)
HCOS Group Intermediate III LLC	Senior Secured First Lien Term Loan	L + 600 (100 Floor)		7.00	%		09/2026		9,450		9,278			1.4			9,332
Homecare Partners Management, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		05/2027		4,539		4,453			0.7			4,483
Homecare Partners Management, LLC(5)	Senior Secured First Lien Revolver	L + 475 (100 Floor)		5.75	%		05/2027		293		273			—			280
Homecare Partners Management, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		05/2027		3,395		3,364			0.5			3,353
Hospice Care Buyer, Inc.	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		12/2026		14,307		13,967			2.2			14,465
Hospice Care Buyer, Inc.	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		12/2026		2,613		2,546			0.4			2,642
Hospice Care Buyer, Inc.(5)	Unitranche First Lien Revolver	L + 650 (100 Floor)		7.50	%		12/2026		993		953			0.2			993
Hospice Care Buyer, Inc.	Unitranche First Lien Delayed Draw Term Loan	L + 650 (100 Floor)		7.50	%		12/2026		2,667		2,596			0.4			2,697
IvyRehab Intermediate II, LLC	Unitranche First Lien Term Loan	L + 675 (100 Floor)		7.75	%		12/2024		14,719		14,499			2.3			14,719
IvyRehab Intermediate II, LLC(5)	Unitranche First Lien Revolver	L + 675 (100 Floor)		7.75	%		12/2024		130		123			—			130
IvyRehab Intermediate II, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 675 (100 Floor)		7.75	%		12/2024		1,445		1,424			0.2			1,445
IvyRehab Intermediate II, LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 675 (100 Floor)		7.75	%		12/2024		1,049		1,027			0.2			1,049
IvyRehab Intermediate II, LLC	Unitranche First Lien Term Loan						12/2024		—		—			—			—
Laserway Intermediate Holdings II, LLC	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		10/2027		6,085		5,968			0.9			6,062
Lightspeed Buyer, Inc.	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		02/2026		9,825		9,682			1.5			9,576
Lightspeed Buyer, Inc.(5)	Unitranche First Lien Revolver	L + 575 (100 Floor)		6.75	%		02/2026		280		266			—			253

82

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Lightspeed Buyer, Inc.	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		02/2026	$	1,779	$	1,758			0.3	%	$	1,734
Lightspeed Buyer, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan						02/2026		—		—			—			(129	)
Lightspeed Buyer, Inc.	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		02/2026		2,743		2,693			0.4			2,674
NMN Holdings III Corp.	Senior Secured Second Lien Delayed Draw Term Loan	L + 775		7.85	%		11/2026		1,667		1,632			0.2			1,624
NMN Holdings III Corp.	Senior Secured Second Lien Term Loan	L + 775		7.85	%		11/2026		7,222		7,074			1.1			7,036
NMSC Holdings, Inc.	Senior Secured Second Lien Term Loan	L + 1000 (100 Floor)		11.00	%		10/2023		4,307		4,256			0.7			4,307
Omni Ophthalmic Management Consultants, LLC(5)	Senior Secured First Lien Revolver	L + 700 (100 Floor)		8.00	%		05/2023		340		336			0.1			340
Omni Ophthalmic Management Consultants, LLC	Senior Secured First Lien Term Loan	L + 700 (100 Floor)		8.00	%		05/2023		6,808		6,771			1.0			6,808
Omni Ophthalmic Management Consultants, LLC	Senior Secured First Lien Term Loan	L + 700 (100 Floor)		8.00	%		05/2023		893		881			0.1			893
Patriot Acquisition Topco S.A.R.L(11)	Unitranche First Lien Term Loan	L + 675 (100 Floor)		7.75	%		01/2028		11,338		11,072			1.7			11,338
Patriot Acquisition Topco S.A.R.L(4) (5) (11)	Unitranche First Lien Revolver						01/2026		—		(36	)		—			—
Patriot Acquisition Topco S.A.R.L(11)	Unitranche First Lien Delayed Draw Term Loan	L + 675 (100 Floor)		7.75	%		01/2028		12,169		11,902			1.9			12,169
Pharmalogics Recruiting, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		02/2027		10,135		10,006			1.6			10,186
Pharmalogics Recruiting, LLC	Unitranche First Lien Delayed Draw Term Loan						02/2027		—		—			—			—
Pharmalogics Recruiting, LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						02/2027		—		(22	)		—			23
Pinnacle Treatment Centers, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		12/2022		677		673			0.1			677
Pinnacle Treatment Centers, Inc.	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		12/2022		8,052		8,023			1.2			8,052
Pinnacle Treatment Centers, Inc.(4) (5)	Unitranche First Lien Revolver						12/2022		—		(2	)		—			—

83

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Premier Dental Care Management, LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (75 Floor)		6.50	%		08/2028	$	1,364	$	1,340			0.2	%	$	1,375
Premier Dental Care Management, LLC(5)	Unitranche First Lien Revolver	L + 575 (75 Floor)		6.50	%		08/2027		278		249			—			281
Premier Dental Care Management, LLC	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		08/2028		9,524		9,340			1.5			9,544
Professional Physical Therapy	Senior Secured First Lien Term Loan	L + 850 (100 Floor) (including 250 PIK)		9.50	%		12/2022		9,106		8,810			0.8			5,509
PromptCare Intermediate, LP(5)	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		09/2027		956		905			0.2			989
PromptCare Intermediate, LP	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		09/2027		10,474		10,275			1.6			10,550
PT Network, LLC(5)	Senior Secured First Lien Revolver	L + 750 (100 Floor) (including 200 PIK)		8.50	%		11/2023		120		120			—			120
PT Network, LLC	Senior Secured First Lien Term Loan	L + 750 (100 Floor) (including 200 PIK)		8.50	%		11/2023		4,840		4,835			0.7			4,840
Safco Dental Supply, LLC(4) (5)	Unitranche First Lien Revolver						06/2025		—		(6	)		0.0			(2	)
Safco Dental Supply, LLC	Unitranche First Lien Term Loan	L + 400 (100 Floor)		5.00	%		06/2025		4,043		3,998			0.6			4,028
Seniorlink Incorporated(4) (5)	Unitranche First Lien Revolver						07/2026		—		(24	)		—			31
Seniorlink Incorporated	Unitranche First Lien Term Loan	L + 700 (100 Floor)		8.00	%		07/2026		10,747		10,491			1.7			11,069
Smile Doctors LLC	Unitranche First Lien Term Loan	L + 575 (75 Floor)		6.50	%		12/2028		11,257		11,033			1.7			11,032
Smile Doctors LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (75 Floor)		6.50	%		12/2028		113		94			—			78
Smile Doctors LLC(5)	Unitranche First Lien Revolver	L + 575 (75 Floor)		6.50	%		12/2027		61		35			—			35
Unifeye Vision Partners	Senior Secured First Lien Delayed Draw Term Loan	L + 500 (100 Floor)		6.00	%		09/2025		3,038		2,991			0.5			3,038
Unifeye Vision Partners(4) (5)	Senior Secured First Lien Revolver						09/2025		—		(21	)		—			—
Unifeye Vision Partners	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		09/2025		5,292		5,223			0.8			5,292

84

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Unifeye Vision Partners(5)	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		09/2025	$	767	$	759			0.1	%	$	767
Vital Care Buyer, LLC	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		10/2025		6,963		6,866			1.1			6,963
Vital Care Buyer, LLC(4) (5)	Unitranche First Lien Revolver						10/2025		—		(30	)		—			—
									342,998		336,098			51.5			337,448
Household & Personal Products
Tranzonic(5)	Senior Secured First Lien Revolver	L + 450 (100 Floor)		5.50	%		03/2023		338		334			0.1			338
Tranzonic	Senior Secured First Lien Term Loan	L + 450 (100 Floor)		5.50	%		03/2023		3,772		3,760			0.6			3,772
									4,110		4,094			0.7			4,110
Insurance
Comet Acquisition, Inc.(12)	Senior Secured Second Lien Term Loan	L + 750		7.63	%		10/2026		1,782		1,779			0.3			1,744
Evolution BuyerCo, Inc.	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		04/2027		8,292		8,205			1.3			8,458
Evolution BuyerCo, Inc.(4) (5)	Unitranche First Lien Revolver						04/2028		—		(7	)		—			15
Evolution BuyerCo, Inc.	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		04/2028		1,455		1,439			0.2			1,484
Evolution BuyerCo, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		04/2028		697		679			0.1			732
Integrity Marketing Acquisition, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		08/2025		5,017		4,930			0.8			5,004
Integrity Marketing Acquisition, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		08/2025		3,033		2,980			0.5			3,026
Integrity Marketing Acquisition, LLC(4) (5)	Unitranche First Lien Revolver						08/2025		—		(31	)		—			(4	)
Integrity Marketing Acquisition, LLC	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		08/2025		12,749		12,546			1.9			12,717
Integro Parent, Inc.(11) (12)	Senior Secured First Lien Term Loan	L + 575 (100 Floor)		6.75	%		10/2022		468		466			0.1			448
Integro Parent, Inc.(9) (11)	Senior Secured Second Lien Term Loan						10/2023		2,915		2,897			0.4			2,420

85

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Integro Parent, Inc.(9) (11)	Senior Secured Second Lien Delayed Draw Term Loan						10/2023	$	380	$	378			—	%	$	316
Patriot Growth Insurance Services, LLC	Unitranche First Lien Term Loan	L + 550 (75 Floor)		6.25	%		10/2028		6,745		6,613			1.0			6,745
Patriot Growth Insurance Services, LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						10/2028		—		(25	)		—			—
Patriot Growth Insurance Services, LLC(4) (5)	Unitranche First Lien Revolver						10/2028		—		(13	)		—			(5	)
The Hilb Group, LLC	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		12/2026		3,567		3,500			0.5			3,558
The Hilb Group, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)		6.75	%		12/2026		1,009		989			0.2			1,006
The Hilb Group, LLC(4) (5)	Unitranche First Lien Revolver						12/2025		—		(6	)		—			(7	)
The Hilb Group, LLC	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		12/2026		1,058		1,036			0.2			1,058
The Hilb Group, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		12/2026		1,779		1,746			0.3			1,779
The Hilb Group, LLC(4) (5)	Unitranche First Lien Revolver						12/2025		—		(3	)		—			(3	)
The Hilb Group, LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (75 Floor)		6.25	%		12/2026		87		41			—			19
The Hilb Group, LLC(4) (5)	Unitranche First Lien Revolver						12/2025		—		(2	)		—			(2	)
									51,033		50,137			7.8			50,508
Materials
Kestrel Parent, LLC(4) (5)	Unitranche First Lien Revolver						11/2023		—		(8	)		—			—
Kestrel Parent, LLC	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		11/2025		6,604		6,504			1.0			6,604
									6,604		6,496			1.0			6,604
Pharmaceuticals, Biotechnology & Life Sciences
BioAgilytix	Senior Secured First Lien Term Loan	L + 625 (75 Floor) (including 275 PIK)		7.00	%		12/2028		12,885		12,629			1.9			12,628

86

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
BioAgilytix(4) (5)	Senior Secured First Lien Delayed Draw Term Loan						12/2028	$	—	$	(25	)		—	%	$	(51	)
LSCS Holdings, Inc. (Eversana)(12)	Senior Secured Second Lien Term Loan	L + 800 (50 Floor)		8.50	%		12/2029		14,000		13,687			2.1			13,965
Teal Acquisition Co., Inc	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		09/2026		14,020		13,700			2.1			14,020
Teal Acquisition Co., Inc(5)	Unitranche First Lien Revolver	L + 625 (100 Floor)		7.25	%		09/2026		310		280			—			310
Teal Acquisition Co., Inc(4) (5)	Unitranche First Lien Delayed Draw Term Loan						09/2026		—		(19	)		—			—
									41,215		40,252			6.1			40,872
Retailing
Savers(12)	Senior Secured First Lien Term Loan	L + 575 (75 Floor)		6.50	%		04/2028		16,827		16,714			2.6			16,806
Slickdeals Holdings, LLC(4) (5) (6)	Unitranche First Lien Revolver						06/2023		—		(6	)		—			—
Slickdeals Holdings, LLC(6)	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		06/2024		14,318		14,096			2.2			14,318
									31,145		30,804			4.8			31,124
Software & Services
Affinitiv, Inc.(4) (5)	Unitranche First Lien Revolver						08/2024		—		(5	)		—			(4	)
Affinitiv, Inc.	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		08/2024		6,370		6,304			1.0			6,329
Ansira Partners, Inc.(9)	Unitranche First Lien Term Loan						12/2024		7,673		6,687			0.7			4,872
Ansira Partners, Inc.(9)	Unitranche First Lien Delayed Draw Term Loan						12/2024		1,061		931			0.1			674
Apps Associates LLC(4) (5)	Unitranche First Lien Delayed Draw Term Loan						07/2027		—		(8	)		—			—
Apps Associates LLC(4) (5)	Unitranche First Lien Revolver						07/2027		—		(15	)		—			—
Apps Associates LLC	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		07/2027		5,636		5,530			0.9			5,636
Banker’s Toolbox, Inc.(4) (5)	Unitranche First Lien Delayed Draw Term Loan						07/2027		—		(63	)		—			—
Banker’s Toolbox, Inc.(4) (5)	Unitranche First Lien Revolver						07/2027		—		(45	)		—			—

87

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Banker’s Toolbox, Inc.	Unitranche First Lien Term Loan	L + 550 (75 Floor)		6.25	%		07/2027	$	15,843	$	15,544			2.4	%	$	15,843
Belay Inc.	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		06/2026		4,925		4,846			0.8			4,925
Belay Inc.(4) (5)	Senior Secured First Lien Revolver						06/2026		—		(10	)		—			—
Benesys Inc.	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		10/2024		1,400		1,389			0.2			1,398
Benesys Inc.	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		10/2024		297		293			0.0			297
Benesys Inc.(4) (5)	Senior Secured First Lien Revolver						10/2024		—		(1	)		—			—
C-4 Analytics, LLC(4) (5)	Senior Secured First Lien Revolver						08/2023		—		(3	)		—			—
C-4 Analytics, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		08/2023		9,811		9,755			1.5			9,811
CAT Buyer, LLC(4) (5)	Unitranche First Lien Revolver						04/2024		—		(6	)		—			—
CAT Buyer, LLC	Unitranche First Lien Term Loan	L + 500 (100 Floor)		6.00	%		04/2024		5,903		5,845			0.9			5,903
Claritas, LLC(5)	Senior Secured First Lien Revolver	L + 575 (100 Floor)		6.75	%		12/2023		23		21			0.0			23
Claritas, LLC	Senior Secured First Lien Term Loan	L + 575 (100 Floor)		6.75	%		12/2023		1,064		1,059			0.2			1,064
Granicus, Inc.	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		01/2027		9,149		8,956			1.4			9,127
Granicus, Inc.(4) (5)	Unitranche First Lien Revolver						01/2027		—		(17	)		—			(2	)
Granicus, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		01/2027		4,781		4,663			0.7			4,761
Lexipol (Ranger Buyer, Inc.)	Unitranche First Lien Term Loan	L + 625 (75 Floor)		7.00	%		11/2028		13,257		12,994			2.0			13,257
Lexipol (Ranger Buyer, Inc.)(5)	Unitranche First Lien Revolver	L + 625 (75 Floor)		7.00	%		11/2027		221		199			—			221
List Partners, Inc.(4) (5)	Senior Secured First Lien Revolver						01/2023		—		(2	)		—			(6	)
List Partners, Inc.	Senior Secured First Lien Term Loan	L + 500 (100 Floor)		6.00	%		01/2023		4,097		4,079			0.6			4,043
MRI Software LLC(12)	Unitranche First Lien Delayed Draw Term Loan						02/2026		—		—			—			—

88

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
MRI Software LLC(12)	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		02/2026	$	18,414	$	18,214			2.9	%	$	18,400
MRI Software LLC(4) (5) (12)	Unitranche First Lien Revolver						02/2026		—		(13	)		—			(1	)
MRI Software LLC(12)	Unitranche First Lien Delayed Draw Term Loan						02/2026		—		—			—			—
MRI Software LLC(12)	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		02/2026		1,323		1,309			0.2			1,322
New Era Technology, Inc.	Unitranche First Lien Term Loan	L + 625 (100 Floor)		7.25	%		10/2026		3,158		3,100			0.5			3,164
New Era Technology, Inc.(5)	Unitranche First Lien Revolver	L + 625 (100 Floor)		7.25	%		10/2026		76		72			—			76
New Era Technology, Inc.(5)	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)		7.25	%		10/2026		1,354		1,326			0.2			1,358
Odessa Technologies, Inc.(4) (5)	Senior Secured First Lien Delayed Draw Term Loan						10/2027		—		(17	)		—			—
Odessa Technologies, Inc.(4) (5)	Senior Secured First Lien Revolver						10/2027		—		(48	)		—			—
Odessa Technologies, Inc.	Senior Secured First Lien Term Loan	L + 575 (75 Floor)		6.50	%		10/2027		9,643		9,453			1.5			9,643
Ontario Systems, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 550 (100 Floor)		6.50	%		08/2025		1,097		1,095			0.2			1,091
Ontario Systems, LLC(4) (5)	Unitranche First Lien Revolver						08/2025		—		(3	)		—			(3	)
Ontario Systems, LLC	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		08/2025		3,177		3,156			0.5			3,159
Ontario Systems, LLC(5)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (100 Floor)		6.50	%		08/2025		337		318			0.1			333
Ontario Systems, LLC	Unitranche First Lien Term Loan	L + 550 (100 Floor)		6.50	%		08/2025		449		441			0.1			446
Park Place Technologies, LLC(8)	Unsecured Debt	1250 PIK		12.50	%		05/2029		782		782			0.1			782
Perforce Software, Inc.	Senior Secured Second Lien Term Loan	L + 800		8.09	%		07/2027		5,000		4,981			0.8			5,000
Prism Bidco, Inc.(4) (5)	Unitranche First Lien Revolver						06/2026		—		(19	)		—			17
Prism Bidco, Inc.	Unitranche First Lien Term Loan	L + 700 (100 Floor)		8.00	%		06/2026		7,388		7,213			1.2			7,535

89

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets **			Fair Value
Prism Bidco, Inc.	Unitranche First Lien Term Loan	L + 575 (100 Floor)		6.75	%		06/2026	$	1,463	$	1,436			0.2	%	$	1,492
Right Networks, LLC	Unitranche First Lien Revolver	L + 600 (100 Floor)		7.00	%		05/2026		233		230			—			233
Right Networks, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		05/2026		9,301		9,171			1.4			9,301
Right Networks, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		05/2026		8,307		8,153			1.3			8,307
Right Networks, LLC	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		05/2026		2,117		2,079			0.3			2,117
Ruffalo Noel Levitz, LLC(4) (5)	Unitranche First Lien Revolver						05/2022		—		(1	)		—			(1	)
Ruffalo Noel Levitz, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		05/2022		2,480		2,474			0.4			2,474
Saturn Borrower Inc	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		09/2026		20,318		19,816			3.1			19,826
Saturn Borrower Inc	Unitranche First Lien Term Loan	L + 650 (100 Floor)		7.50	%		09/2026		2,475		2,410			0.4			2,415
Saturn Borrower Inc(5)	Unitranche First Lien Revolver	L + 650 (100 Floor)		7.50	%		09/2026		908		871			0.1			871
Smartronix, LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		11/2028		24,110		23,630			3.8			24,111
Smartronix, LLC(4) (5)	Unitranche First Lien Revolver						11/2028		—		(65	)		—			—
Transportation Insight, LLC	Senior Secured First Lien Term Loan	L + 450		4.59	%		12/2024		5,089		5,062			0.8			5,076
Transportation Insight, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 450		4.59	%		12/2024		1,264		1,258			0.2			1,261
Transportation Insight, LLC(4) (5)	Senior Secured First Lien Revolver						12/2024		—		(4	)		0.0			(2	)
Winxnet Holdings LLC	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		06/2023		634		629			0.1			634
Winxnet Holdings LLC	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)		7.00	%		06/2023		1,040		1,026			0.2			1,040
Winxnet Holdings LLC(4) (5)	Unitranche First Lien Revolver						06/2023		—		(2	)		—			—
Winxnet Holdings LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		06/2023		1,930		1,917			0.3			1,930

90

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Winxnet Holdings LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		06/2023	$	1,538	$	1,517			0.2	%	$	1,538
Winxnet Holdings LLC(4) (5)	Unitranche First Lien Revolver						06/2023		—		(3	)		—			—
Winxnet Holdings LLC	Unitranche First Lien Term Loan	L + 600 (100 Floor)		7.00	%		06/2023		1,147		1,130			0.2			1,147
									228,063		223,014			34.7			224,264
Transportation
Pilot Air Freight, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		07/2024		763		762			0.1			763
Pilot Air Freight, LLC(5)	Senior Secured First Lien Revolver						07/2024		—		—			—			—
Pilot Air Freight, LLC	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)		5.75	%		07/2024		1,179		1,179			0.2			1,179
Pilot Air Freight, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		07/2024		5,307		5,292			0.8			5,307
Pilot Air Freight, LLC	Senior Secured First Lien Term Loan	L + 475 (100 Floor)		5.75	%		07/2024		794		783			0.1			794
									8,043		8,016			1.2			8,043
Total Debt Investments United States								$	1,063,643	$	1,042,079			160.1	%	$	1,044,283
Equity Investments
Automobiles & Components
Sun Acquirer Corp.	Common Stock								6,148		615			0.1			615
											615			0.1			615
Capital Goods
Envocore , LLC(7)	Preferred Stock								534,722		—			—			—
Envocore , LLC(7)	Common Stock								521,354		—			—			—
											—			—			—
Commercial & Professional Services
Allied Universal Holdings, LLC	Common Stock								2,805,726		1,011			0.7			4,579
Allied Universal Holdings, LLC	Common Stock								684,903		685			0.2			1,117
ASP MCS Acquisition Corp.(6)	Common Stock								11,792		1,150			0.2			1,327
Battery Solutions, Inc.(6)	Preferred Stock								5,719,738		3,669			0.8			5,256
Battery Solutions, Inc.(6)	Preferred Stock								50,000		—			—			—
Battery Solutions, Inc.(6)	Preferred Stock								3,333,333		—			—			—
Hercules Borrower LLC	Common Stock								1,153,075		1,153			0.2			1,246
IGT Holdings LLC	Preferred Stock								645,730		—			—			—
IGT Holdings LLC	Common Stock								1,000,000		—			—			—

91

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate	Maturity/ Dissolution Date	Principal Amount, Par Value or Shares **		Cost		Percentage of Net Assets ***			Fair Value
MHS Acquisition Holdings, LLC	Preferred Stock				$	1,018	$	923		0.1	%	$	949
MHS Acquisition Holdings, LLC	Common Stock					10		9		—			—
Receivable Solutions, Inc.	Preferred Stock					137,000		137		0.1			329
Service Logic Acquisition, Inc.	Common Stock					13,132		1,313		0.2			1,432
TecoStar Holdings, Inc.	Common Stock					500,000		500		—			120
								10,550		2.5			16,355
Consumer Services
Everlast Parent Inc.	Common Stock					948		948		0.2			1,404
FS Whitewater Borrower, LLC	Common Stock					6,897		690		0.1			690
HGH Purchaser, Inc.	Common Stock					4,171		417		0.1			782
Legalshield	Common Stock					372		372		0.1			503
Southern Technical Institute, Inc.(6)	Common Stock					3,164,063		—		—			282
Southern Technical Institute, Inc.(6)	Common Stock					6,000,000		—		1.1			7,404
Stepping Stones Healthcare Services, LLC	Common Stock					11,321		1,132		0.2			1,132
Wrench Group LLC	Common Stock					4,082		410		0.1			746
Wrench Group LLC	Common Stock					1,143		115		0.0			209
								4,084		1.9			13,152
Diversified Financials
CBDC Senior Loan Fund LLC(7) (11) (13)	Partnership Interest					40,000,000		40,000		6.1			39,361
GACP II LP(6) (11) (13) (14)	Partnership Interest					12,895,313		12,895		1.9			12,619
WhiteHawk III Onshore Fund L.P.(5) (6) (11) (13) (14)	Partnership Interest					5,792,014		5,851		0.9			5,980
								58,746		8.9			57,960
Health Care Equipment & Services
ACI Group Holdings, Inc.	Common Stock					907,499		909		0.1			907
ACI Group Holdings, Inc.	Preferred Stock					3,719		3,645		0.6			3,719
Centria Subsidiary Holdings, LLC	Common Stock					11,911		1,191		0.2			979
Hospice Care Buyer, Inc.	Common Stock					13,895		1,398		0.3			1,835
Hospice Care Buyer, Inc.	Common Stock					844		75		—			99
NMN Holdings III Corp.	Common Stock					11,111		1,111		0.2			1,138
Patriot Acquisition Topco S.A.R.L(11)	Common Stock					1,055		1,055		0.2			1,123
Patriot Acquisition Topco S.A.R.L(11)	Common Stock					14,534		22		0.0			228.0
PT Network, LLC	Common Stock					0.93		—		0.1			891
Seniorlink Incorporated	Common Stock					68,182		518		0.2			1,331
Smile Doctors LLC	Common Stock					227		714		0.1			714
								10,638		2.0			12,964
Insurance
Evolution BuyerCo, Inc.	Common Stock					2,917		292		0.0			292
Integrity Marketing Acquisition, LLC	Common Stock					262,567		607		0.3			1,953
Integrity Marketing Acquisition, LLC	Preferred Stock					1,247		1,215		0.3			1,686
Integro Parent, Inc.(11)	Common Stock					4,468		454		—			—
								2,568		0.6			3,931

92

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost		Percentage of Net Assets ***			Fair Value
Materials
Kestrel Parent, LLC	Common Stock							$	41,791	$	209		0.0	%	$	308
Pharmaceuticals, Biotechnology & Life Sciences
LSCS Holdings, Inc. (Eversana)	Common Stock								3,096		953		0.1			953
LSCS Holdings, Inc. (Eversana)	Preferred Stock								447		447		0.1			447
Teal Acquisition Co., Inc	Common Stock								5,555		556		0.1			746
											1,956		0.3			2,146
Retailing
Palmetto Moon LLC	Common Stock								61		—		0.1			700
Slickdeals Holdings, LLC(6)	Common Stock								99		891		0.2			1,529
Vivid Seats Ltd.(6) (11) (12)	Common Stock								608,109		608		0.1			922
											1,499		0.4			3,151
Software & Services
Curvature(15)	Common Stock								1,975,461		1,975		0.2			1,072
Lexipol (Ranger Buyer, Inc.)	Common Stock								638		638		0.1			638
Odessa Technologies, Inc.	Common Stock								10,714		1,071		0.2			1,071
Park Place Technologies, LLC	Common Stock								479		479		0.1			479
Park Place Technologies, LLC	Common Stock								685,018		—		—			—
Park Place Technologies, LLC	Common Stock								442,203		27		0.0			27
Saturn Borrower Inc	Common Stock								434,163		434		0.1			445
											4,624		0.7			3,732
Transportation
Xpress Global Systems, LLC	Common Stock								12,544		—		0.2			1,254
Total Equity Investments United States										$	95,489		17.6	%	$	115,568
Total United States										$	1,137,568		177.7	%	$	1,159,851
Canada
Debt Investments
Health Care Equipment & Services
VetStrategy(11)	Unsecured Debt	1150 PIK		11.50	%		03/2031	$	C2,750	$	2,104		0.3		$	2,175
VetStrategy(11)	Unitranche First Lien Delayed Draw Term Loan	C + 700 (100 Floor)		8.00	%		07/2027		1,712		1,251		0.2			1,381
VetStrategy(11)	Unitranche First Lien Delayed Draw Term Loan	C + 700 (100 Floor)		8.00	%		07/2027		1,712		1,305		0.2			1,381
VetStrategy(11)	Unitranche First Lien Delayed Draw Term Loan	C + 700 (100 Floor)		8.00	%		07/2027		4,968		3,876		0.6			4,008

93

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost		Percentage of Net Assets ***			Fair Value
VetStrategy (11)	Unitranche First Lien Term Loan	C + 700 (100 Floor)		8.00	%		07/2027	$	9,176	$	6,676		1.1	%	$	7,403
VetStrategy (11)	Unitranche First Lien Delayed Draw Term Loan	C + 575 (100 Floor)		6.75	%		07/2027		8,742		6,757		1.1			6,914
VetStrategy (5) (11)	Unitranche First Lien Delayed Draw Term Loan	C + 575 (100 Floor)		6.75	%		07/2027		5,720		4,380		0.7			4,524
									34,780		26,349		4.2			27,786
Telecommunication Services
Sandvine Corporation (11) (12)	Senior Secured Second Lien Term Loan	L+800		8.09	%		11/2026	$	4,500		4,379		0.7			4,480
Total Debt Investments Canada										$	30,728		4.9	%	$	32,266
Equity Investments
Health Care Equipment & Services
VetStrategy (11)	Common Stock								1,016,357	$	776		0.3		$	1,848
Total Equity Investments Canada									1,016,357		776		0.3	%		1,848
Total Canada										$	31,504		5.2	%	$	34,114
United Kingdom
Debt Investments
Commercial & Professional Services
Crusoe Bidco Limited (11)	Unitranche First Lien Term Loan	L+625		6.31	%		12/2025	£	6,067	$	7,463		1.3	%	$	8,209
Crusoe Bidco Limited (5) (11)	Unitranche First Lien Delayed Draw Term Loan						12/2025		—		—		—			—
Crusoe Bidco Limited (5) (11)	Unitranche First Lien Delayed Draw Term Loan	L+625		6.31	%		12/2025		303		399		0.1			410
Nurture Landscapes (11)	Unitranche First Lien Term Loan	S+650		6.55	%		06/2028		1,416		1,942		0.3			1,916
Nurture Landscapes (11)	Unitranche First Lien Delayed Draw Term Loan	S+650		6.55	%		06/2028		392		519		0.1			530
Nurture Landscapes (5) (11)	Unitranche First Lien Delayed Draw Term Loan	S+650		6.55	%		06/2028		2,567		3,068		0.5			3,473
									10,745		13,391		2.3			14,538

94

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Consumer Durables & Apparel
Lion Cashmere Bidco Limited (11)	Unitranche First Lien Term Loan	L + 600 (50 Floor)		6.50	%		03/2028	$	4,352	$	4,244			0.6	%	$	4,160
Lion Cashmere Bidco Limited (11)	Unitranche First Lien Term Loan	L + 600 (50 Floor)		6.50	%		03/2028		9,939		9,693			1.5			9,502
Lion Cashmere Bidco Limited (11)	Unitranche First Lien Term Loan	L + 600 (50 Floor)		6.50	%		03/2028		4,953		4,830			0.7			4,735
Lion Cashmere Bidco Limited (5) (11)	Unitranche First Lien Revolver	L + 600		6.50	%		03/2026	€	276		374			—			263
Lion Cashmere Bidco Limited (4)(5)(11)	Unitranche First Lien Delayed Draw Term Loan						03/2028		—		(83	)		—			(138	)
											19,058			2.8			18,522
Software & Services
Jordan Bidco, Ltd. (5) (11)	Unitranche First Lien Delayed Draw Term Loan						08/2028	£	—	$	—			—		$	(112	)
Jordan Bidco, Ltd. (5) (11)	Senior Secured First Lien Revolver	S + 650		6.50	%		02/2028		1,102		1,090			0.2			1,046
Jordan Bidco, Ltd. (11)	Unitranche First Lien Term Loan	S + 650		6.50	%		08/2028		13,234		17,714			2.8			17,422
											18,804			3.0			18,356
Total Debt Investments United Kingdom										$	51,253			8.1	%	$	51,416
Total United Kingdom										$	51,253			8.1	%	$	51,416
Netherlands
Debt Investments
Pharmaceuticals, Biotechnology & Life Sciences
PharComp Parent B.V. (11)	Unitranche First Lien Delayed Draw Term Loan	E + 650		6.50	%		02/2026	€	1,868	$	2,139			0.3	%	$	2,125
PharComp Parent B.V. (10) (11)	Unitranche First Lien - Last Out Term Loan	E + 650		6.50	%		02/2026		6,910		7,684			1.2			7,862
									8,778		9,823			1.5			9,987
Total Debt Investments Netherlands										$	9,823			1.5	%	$	9,987
Total Netherlands										$	9,823			1.5	%	$	9,987
Belgium
Debt Investments
Commercial & Professional Services

95

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares **		Cost		Percentage of Net Assets ***			Fair Value
Miraclon Corporation (11)	Unitranche First Lien Term Loan	E + 625		6.25	%		04/2026	€	9,507	$	10,529		1.7	%	$	10,764
Miraclon Corporation (11)	Unitranche First Lien Term Loan	L + 625		6.41	%		04/2026	$	4,162		4,077		0.6			4,162
											14,606		2.3			14,926
Total Debt Investments Belgium										$	14,606		2.3	%	$	14,926
Equity Investments
Commercial & Professional Services
Miraclon Corporation (11)	Common Stock								921		1		—			—
Miraclon Corporation (11)	Preferred Stock								81,384		91		0.0			72
											92		0.0			72
Total Equity Investments Belgium										$	92		0.0	%	$	72
Total Belgium										$	14,698		2.3	%	$	14,998
Total Investments										$	1,244,846		194.8	%	$	1,270,366

96

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

* The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”), CDOR (“C”), EURIBOR (“E”), or SONIA (“S”) and which reset monthly, bi-monthly, quarterly, semiannually or annually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at December 31, 2021. As of December 31, 2021, the reference rates for the Company’s variable rate loans were the 1 mo. LIBOR at 0.10%, 2 mo. LIBOR at 0.15%, the 3 mo. LIBOR at 0.21%, the 6 mo. LIBOR at 0.34%, the 1 year LIBOR at 0.58%, the Prime at 3.25%, the 1 mo. CDOR at 0.45%, the 1 mo. GBP LIBOR at 0.19%, the 3 mo. GBP LIBOR at 0.26%, the 6 mo. GBP LIBOR at 0.47%, the 1 mo EURIBOR at (0.58)%, the 3 mo. EURIBOR at (0.57)% and the 6 mo. EURIBOR at (0.55)%., and SONIA at 0.19%.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.

** The total par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted to be reflected in the investments local currency of, Canadian Dollars (“C$”), Euros (“€”), or Pound Sterling (“£”).

*** Percentage is based on net assets of $652,285 as of December 31, 2021

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

(2) All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.

(3) The fair value of the investment was determined using significant unobservable inputs unless otherwise noted, as defined by the Investment Company Act of 1940, as amended (“1940 Act”). See Note 2 “Summary of Significant Accounting Policies”.

(4) 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.

(5) Position or portion thereof is an unfunded loan commitment and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee. See Note 8 “Commitments and Contingencies”.

(6) As defined in the 1940 Act, the portfolio company is deemed to be a “non-controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 5% or more of the portfolio company’s outstanding voting securities. See Note 3 “Agreements and Related Party Transactions”.

(7) As defined in the 1940 Act, the portfolio company is deemed to be a “controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 25% or more of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company. See Note 3 “Agreements and Related Party Transactions”.

(8) Fixed rate investment.

(9) The investment is on non-accrual status as of December 31, 2021.

(10) These loans are unitranche first lien/last-out term loans. In addition to the interest earned based on the effective 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.

(11) 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. The Company’s percentage of non-qualifying assets based on fair value was 16.06% as of December 31, 2021.

(12) This investment is valued using observable inputs and is considered a Level 2 investment per FASB guidance under ASC 820. See Note 5 for further information related to investments at fair value.

(13) 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.

(14) Investment is not redeemable.

(15) Residual interest in Curvature (Beijing) Technology Limited.

97

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except share and per share data)

Foreign Currency Exchange Contracts
Counterparty	Currency Purchased		Currency Sold		Settlement		Unrealized Appreciation (Depreciation)
Wells Fargo Bank, N.A.	USD	1,049	CAD	1,348		7/15/2025	$	(3	)
Wells Fargo Bank, N.A.	USD	933	CAD	1,192		7/31/2025		3
Wells Fargo Bank, N.A.	USD	193	CAD	244		7/31/2025		2
Wells Fargo Bank, N.A.	USD	17	CAD	22		7/31/2025		—
Wells Fargo Bank, N.A.	USD	1,035	CAD	1,336		7/31/2025		(7	)
Wells Fargo Bank, N.A.	USD	1,306	CAD	1,703		7/31/2025		(22	)
Wells Fargo Bank, N.A.	USD	1,914	CAD	2,432		7/31/2025		15
Wells Fargo Bank, N.A.	USD	2,214	CAD	2,792		7/31/2025		34
Wells Fargo Bank, N.A.	USD	622	CAD	839		7/31/2025		(31	)
Wells Fargo Bank, N.A.	USD	775	CAD	994		7/31/2025		(1	)
Wells Fargo Bank, N.A.	USD	789	CAD	1,005		7/31/2025		4
Wells Fargo Bank, N.A.	USD	635	CAD	864		7/31/2025		(38	)
Wells Fargo Bank, N.A.	USD	325	CAD	422		7/31/2025		(4	)
Wells Fargo Bank, N.A.	USD	7,089	CAD	9,712		7/31/2025		(472	)
Wells Fargo Bank, N.A.	USD	612	CAD	801		7/31/2025		(12	)
Wells Fargo Bank, N.A.	USD	493	CAD	632		7/31/2025		—
Wells Fargo Bank, N.A.	USD	576	CAD	738		7/31/2025		(1	)
Wells Fargo Bank, N.A.	USD	1,033	CAD	1,274		7/31/2025		37
Wells Fargo Bank, N.A.	USD	1,795	CAD	2,370		2/28/2031		(28	)
Wells Fargo Bank, N.A.	USD	992	EUR	809		2/20/2024		44
Wells Fargo Bank, N.A.	USD	308	EUR	249		2/20/2024		16
Wells Fargo Bank, N.A.	USD	209	EUR	187		2/20/2024		(10	)
Wells Fargo Bank, N.A.	USD	8,603	EUR	6,703		2/20/2024		742
Wells Fargo Bank, N.A.	USD	11,682	EUR	9,222		4/10/2024		844
Wells Fargo Bank, N.A.	USD	768	EUR	623		2/20/2026		15
Wells Fargo Bank, N.A.	USD	7,975	GBP	5,885		12/1/2023		35
Wells Fargo Bank, N.A.	USD	395	GBP	294		12/1/2023		(2	)
Wells Fargo Bank, N.A.	USD	193	GBP	138		2/13/2025		6
Wells Fargo Bank, N.A.	USD	191	GBP	138		2/13/2025		4
Wells Fargo Bank, N.A.	USD	170	GBP	121		6/3/2026		5
Wells Fargo Bank, N.A.	USD	371	GBP	272		6/3/2026		—
Wells Fargo Bank, N.A.	USD	3,074	GBP	2,237		6/3/2026		22
Wells Fargo Bank, N.A.	USD	1,944	GBP	1,362		6/3/2026		83
Wells Fargo Bank, N.A.	USD	17,790	GBP	12,870		8/24/2026		204
Wells Fargo Bank, N.A.	USD	1,097	GBP	803		8/24/2026		—
Total Foreign Currency Exchange Contracts							$	1,484

CAD Canadian Dollar

EUR Euro

GBP Great British Pound

PIK Payment In-Kind

USD United States Dollar

98

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Investments(1) (2)
United States
Debt Investments
Automobiles & Components
Auto-Vehicle Parts, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						01/2023	$	—	$	(4	)		—	%	$	(10	)
Auto-Vehicle Parts, LLC(3)	Senior Secured First Lien Term Loan	L + 450 (100 Floor ) (7)		5.50	%		01/2023		4,566		4,535			0.8			4,488
Continental Battery Company(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 675 (100 Floor )(7)		7.75	%		12/2022		6,578		6,522			1.2			6,578
Continental Battery Company(3) (5)	Senior Secured First Lien Delayed Draw Term Loan	L + 675 (100 Floor )(7)		7.75	%		12/2022		3,465		3,444			0.6			3,465
Continental Battery Company(3) (5) (6)	Senior Secured First Lien Revolver	L + 675 (100 Floor )(7)		7.75	%		12/2022		283		278			0.1			283
Continental Battery Company(3)	Senior Secured First Lien Term Loan	L + 675 (100 Floor )(7)		7.75	%		12/2022		3,933		3,902			0.7			3,933
Empire Auto Parts, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						09/2024		—		(5	)		—			(8	)
Empire Auto Parts, LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor )(8)		6.50	%		09/2024		2,370		2,334			0.4			2,324
Empire Auto Parts, LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor )(8)		6.50	%		09/2024		2,444		2,411			0.4			2,396
									23,639		23,417			4.2			23,449
Capital Goods
Envocore Holding, LLC(3)	Senior Secured First Lien Term Loan	L + 900 (200 Floor ) (including 425 PIK )(8)		11.00	%		06/2022		18,541		15,834			2.6			14,335
Potter Electric Signal Company(3) (4) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan						12/2024		—		(16	)		—			(8	)
Potter Electric Signal Company(3) (4) (5) (6)	Senior Secured First Lien Revolver						12/2022		—		(4	)		—			(4	)
Potter Electric Signal Company(3)	Senior Secured First Lien Term Loan	L + 425 (100 Floor )(8)		5.25	%		12/2025		2,480		2,461			0.4			2,461
Potter Electric Signal Company(3)	Senior Secured First Lien Term Loan	L + 425 (100 Floor )(8)		5.25	%		12/2024		471		468			0.1			467
									21,492		18,743			3.1			17,251

99

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Commercial & Professional Services
ASP MCS Acquisition Corp.(3) (10)	Senior Secured Second Lien Term Loan	L + 600 (100 Floor )(8)		7.00	%		10/2025	$	295	$	273			0.1		$	293
Battery Solutions, Inc.(3) (10)	Unsecured Debt	1200 + 200 PIK(11)		14.00	%		11/2021		1,263		1,248			0.2			1,192
BFC Solmetex LLC & Bonded Filter Co. LLC(3) (5)	Unitranche First Lien Revolver	L + 850 (100 Floor )(8)		9.50	%		09/2023		750		742			0.1			750
BFC Solmetex LLC & Bonded Filter Co. LLC(3)(5)	Unitranche First Lien Revolver	L + 850 (100 Floor )(8)		9.50	%		09/2023		300		296			0.1			300
BFC Solmetex LLC & Bonded Filter Co. LLC(3)	Unitranche First Lien Term Loan	L + 850 (100 Floor )(8)		9.50	%		09/2023		5,920		5,848			1.0			5,920
BFC Solmetex LLC & Bonded Filter Co. LLC(3)	Unitranche First Lien Term Loan	L + 850 (100 Floor )(8)		9.50	%		09/2023		618		610			0.1			618
CHA Holdings, Inc.(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 450(100 Floor)(8)		5.50	%		04/2025		1,013		1,010			0.2	%		987
CHA Holdings, Inc.(3)	Senior Secured First Lien Term Loan	L + 450(100 Floor)(8)		5.50	%		04/2025		4,805		4,789			0.8			4,683
Consolidated Label Co., LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						07/2026		—		(12	)		—			—
Consolidated Label Co., LLC(3)	Senior Secured First Lien Term Loan	L + 575(100 Floor)(8)		6.75	%		07/2026		4,339		4,258			0.8			4,339
Digital Room Holdings, Inc.(3)	Senior Secured First Lien Term Loan	L + 500(12)		5.27	%		05/2026		6,895		6,602			1.2			6,533
GH Holding Company(3)	Senior Secured First Lien Term Loan	L + 450(7)		4.65	%		02/2023		1,459		1,455			0.2			1,412
GI Revelation Acquisition, LLC(3)	Senior Secured First Lien Term Loan	L + 500(7)		5.15	%		04/2025		7,321		7,296			1.3			7,049
Hepaco, LLC(3) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan	L + 500(100 Floor)(7)		6.00	%		08/2024		4,156		4,130			0.7			3,999
Hepaco, LLC(3) (5) (6)	Senior Secured First Lien Revolver	L + 500(100 Floor)(7)		6.00	%		08/2024		825		824			0.1			791
Hepaco, LLC(3)	Senior Secured First Lien Term Loan	L + 500(100 Floor)(7)		6.00	%		08/2024		5,098		5,067			0.9			4,911
Hercules Borrower LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						12/2026		—		(55	)		—			(55	)
Hercules Borrower LLC(3)	Unitranche First Lien Term Loan	L + 650(100 Floor)(8)		7.50	%		12/2026		19,125		18,650			3.3			18,647
Hsid Acquisition, LLC(3) (9)	Senior Secured First Lien Delayed Draw Term Loan	L + 500(100 Floor)(8)		6.00	%		01/2026		2,893		2,844			0.5			2,893
Hsid Acquisition, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						01/2026		—		(13)			—			—

100

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/ Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares **		Cost			Percentage of Net Assets ***			Fair Value
Hsid Acquisition, LLC(3)	Senior Secured First Lien Term Loan	L + 500(100 Floor)(7)		6.00	%		01/2026	$	3,866	$	3,799			0.7		$	3,866
Impact Group, LLC(3)	Senior Secured First Lien Term Loan	L + 737(100 Floor)(7)		8.37	%		06/2023		7,040		5,455			1.2			6,585
Impact Sales, LLC(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 737(100 Floor)(7)		8.37	%		06/2023		6,645		5,149			1.1			6,216
Institutional Shareholder Services, Inc.(3)	Senior Secured First Lien Term Loan	L + 450(8)		4.75	%		03/2026		2,948		2,909			0.5			2,936
Institutional Shareholder Services, Inc.(3)	Senior Secured Second Lien Term Loan	L + 850(8)		8.75	%		03/2027		2,000		1,928			0.3			2,000
ISS Compressors Industries, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						02/2026		—		(7	)		—			(27	)
ISS Compressors Industries, Inc.(3)	Senior Secured First Lien Term Loan	L + 550(100 Floor)(8)		6.50	%		02/2026		9,098		9,019			1.6			8,807
Jordan Healthcare, Inc.(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 600(100 Floor)(8)		7.00	%		07/2022		691		688			0.1			691
Jordan Healthcare, Inc.(3)	Senior Secured First Lien Revolver	L + 600(100 Floor)(8)		7.00	%		07/2022		450		449			0.1			450
Jordan Healthcare, Inc.(3)	Senior Secured First Lien Term Loan	L + 600(100 Floor)(8)		7.00	%		07/2022		3,980		3,966			0.7			3,980
MHS Acquisition Holdings, LLC(3)	Senior Secured Second Lien Delayed Draw Term Loan	L + 875(100 Floor)(8)		9.75	%		03/2025		467		461			0.1			455
MHS Acquisition Holdings, LLC(3)	Senior Secured Second Lien Term Loan	L + 875(100 Floor)(8)		9.75	%		03/2025		8,102		7,956			1.4			7,900
MHS Acquisition Holdings, LLC(3)	Unsecured Debt	1350 PIK(11)		13.50	%		03/2026		272		270			—	%		264
MHS Acquisition Holdings, LLC(3)	Unsecured Debt	1350 PIK(11)		13.50	%		03/2026		817		810			0.1			792
Pinstripe Holdings, LLC(3)	Unitranche First Lien Term Loan	L + 600(100 Floor)(8)		7.00	%		01/2025		9,825		9,618			1.7			9,807
Pye-Barker Fire & Safety, LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 600(100 Floor)(8)		7.00	%		11/2025		3,715		3,623			0.7			3,715
Pye-Barker Fire & Safety, LLC(3)	Unitranche First Lien Term Loan	L + 600(100 Floor)(8)		7.00	%		11/2025		10,024		9,790			1.8			10,024
Receivable Solutions, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						10/2024		—		(4	)		—			(3	)
Receivable Solutions, Inc.(3)	Senior Secured First Lien Term Loan	L + 500(100 Floor)(7)		6.00	%		10/2024		2,070		2,042			0.4			2,047
SavATree, LLC(3) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan	L + 500(100 Floor)(8)		6.00	%		06/2022		772		766			0.1			772
SavATree, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						06/2022		—		(3	)		—			—

101

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
SavATree, LLC(3)	Senior Secured First Lien Term Loan	L + 500(100 Floor)(8)		6.00	%		06/2022	$	910	$	3,887			0.7		$	3,910
Service Logic Acquisition, Inc(3) (4) (6) (9)	Senior Secured Second Lien Delayed Draw Term Loan						10/2028		—		(71	)		—			—
Service Logic Acquisition, Inc(3)	Senior Secured Second Lien Term Loan	L + 850(100 Floor)(8)		9.50	%		10/2028		8,755		8,496			1.6			8,755
Spear Education(3) (4) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan						02/2025		—		(26	)		—			(81	)
Spear Education(3)	Senior Secured First Lien Term Loan	L + 550(100 Floor)(8)		6.50	%		02/2025		6,823		6,765			1.2			6,646
TecoStar Holdings, Inc.(3)	Senior Secured Second Lien Term Loan	L + 850(100 Floor)(8)		9.50	%		11/2024		5,000		4,925			0.9			5,000
UP Acquisition Corp.(3)	Unitranche First Lien Delayed Draw Term Loan	L + 625(100 Floor)(7)		7.25	%		05/2024		1,189		1,170			0.2			1,163
UP Acquisition Corp.(3) (5) (6)	Unitranche First Lien Revolver	L + 625(100 Floor)(7)		7.25	%		05/2024		391		374			0.1			364
UP Acquisition Corp.(3)	Unitranche First Lien Term Loan	L + 625(100 Floor)(7)		7.25	%		05/2024		4,334		4,272			0.8			4,242
Xcentric Mold and Engineering Acquisition Company, LLC(3)	Senior Secured First Lien Revolver	L + 700(100 Floor) (including 100 PIK)(8)		8.00	%		01/2022		710		707			0.1			614
Xcentric Mold and Engineering Acquisition Company, LLC(3)	Senior Secured First Lien Term Loan	L + 700(100 Floor) (including 100 PIK)(8)		8.00	%		01/2022		4,416		4,395			0.7			3,819
									175,385		169,440			30.5			170,971
Consumer Durables & Apparel
EiKo Global, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						06/2023		—		(8	)		—			—
EiKo Global, LLC(3)	Senior Secured First Lien Term Loan	L + 600(100 Floor)(8)		7.00	%		06/2023		3,223		3,188			0.6			3,223
									3,223		3,180			0.6			3,223
Consumer Services
BJH Holdings III Corp.(3)	Unitranche First Lien Term Loan	L + 525(100 Floor)(8)		6.25	%		08/2025		13,355		13,194			2.3	%		12,921
Cambium Learning Group, Inc.(3)	Senior Secured Second Lien Term Loan	L + 850(100 Floor)(8)		9.50	%		12/2026		5,000		4,865			0.9			4,800
Colibri Group LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 575(100 Floor)(8)		6.75	%		05/2025		1,337		1,312			0.2			1,350
Colibri Group LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						05/2025		—		(18	)		—			10

102

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Colibri Group LLC(3)	Unitranche First Lien Term Loan	L + 575(100 Floor)(8)		6.75	%		05/2025	$	8,126	$	7,970			1.5		$	8,208
Everlast Parent Inc.(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						10/2026		—		(41	)		—			—
Everlast Parent Inc.(3) (4) (5) (6)	Unitranche First Lien Revolver						10/2026		—		(39	)		—			—
Everlast Parent Inc.(3)	Unitranche First Lien Term Loan	L + 650(100 Floor)(8)		7.50	%		10/2026		14,028		13,686			2.5			14,028
HGH Purchaser, Inc.(3) (6) (9)	Unitranche First Lien Delayed Draw Term Loan	L + 675(100 Floor)(8)		7.75	%		11/2025		2,815		2,725			0.5			2,815
HGH Purchaser, Inc.(3) (5) (6)	Unitranche First Lien Revolver	L + 675(100 Floor)(8)		7.75	%		11/2025		101		81			—			101
HGH Purchaser, Inc.(3)	Unitranche First Lien Term Loan	L + 675(100 Floor)(8)		7.75	%		11/2025		8,027		7,859			1.4			8,027
JLL XDD, Inc.(3)	Senior Secured First Lien Term Loan	L + 600(100 Floor)(13)		7.00	%		12/2023		5,970		5,824			1.1			6,030
JLL XDD, Inc.(3)	Senior Secured First Lien Term Loan	L + 550(100 Floor)(12)		6.50	%		12/2023		2,113		2,076			0.4			2,105
Learn-It Systems, LLC(3) (6) (14)	Senior Secured First Lien Delayed Draw Term Loan	L + 450(100 Floor)(8)		5.50	%		03/2025		1,140		1,079			0.2			1,111
Learn-It Systems, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						03/2025		—		(14	)		—			(7	)
Learn-It Systems, LLC(3)	Senior Secured First Lien Term Loan	L + 450(100 Floor)(8)		5.50	%		03/2025		4,337		4,236			0.8			4,288
Southern HVAC Corporation(3) (4) (6) (14)	Unitranche First Lien Delayed Draw Term Loan						10/2025		—		(24	)		—			—
Southern HVAC Corporation(3) (4) (5) (6)	Unitranche First Lien Revolver						10/2025		—		(19	)		—			—
Southern HVAC Corporation(3)	Unitranche First Lien Term Loan	L + 625(100 Floor)(8)		7.25	%		10/2025		5,550		5,442			1.0			5,550
Teaching Strategies LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						05/2024		—		(9	)		—			—
Teaching Strategies LLC(3)	Unitranche First Lien Term Loan	L + 600(100 Floor)(8)		7.00	%		05/2024		9,141		8,999			1.6			9,141
United Language Group, Inc.(3) (5)	Senior Secured First Lien Revolver	L + 675(100 Floor)(7)		7.75	%		12/2021		400		398			0.1			381
United Language Group, Inc.(3)	Senior Secured First Lien Term Loan	L + 675(100 Floor)(7)		7.75	%		12/2021		4,641		4,616			0.8			4,419
Vistage Worldwide, Inc.	Senior Secured First Lien Term Loan	L��+ 400(100 Floor)(8)		5.00	%		02/2025		6,134		6,143			1.1			6,092
WeddingWire, Inc.(3)	Senior Secured Second Lien Term Loan	L + 825( 8)		8.46	%		12/2026		5,000		4,955			0.8			4,604
Wrench Group LLC(3)	Senior Secured Second Lien Term Loan	L + 788(8)		8.13	%		04/2027		2,500		2,436			0.4	%		2,492

103

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
								$	99,715	$	97,732			17.6	%	$	98,466
Diversified Financials
GGC Aperio Holdings, L.P.(3)	Unitranche First Lien Term Loan	L + 500(8)		5.15	%		10/2024		8,405		8,393			1.5			8,410
Goldentree Loan Management US CLO 2, Ltd.(3) (15)	CLO, Series 2017-2A, Class E	L + 470		4.92	%		11/2030		2,000		1,902			0.3			1,829
									10,405		10,295			1.8			10,239
Energy
BJ Services, LLC(3) (16) (17)	Unitranche First Lien-Last Out Term Loan						01/2023		8,075		8,014			1.1			6,463
BJ Services, LLC(3)	Unitranche First Lien Term Loan	L + 700 (150 Floor)(8)		8.50	%		01/2023		2,668		2,653			0.5			2,668
Black Diamond Oilfield Rentals, LLC(3)	Senior Secured First Lien Term Loan	L + 650 (100 Floor)(8)		7.50	%		09/2021		10,386		10,332			1.7			9,645
									21,129		20,999			3.3			18,776
Food & Staples Retailing
Isagenix International, LLC	Senior Secured First Lien Term Loan	L + 575 (100 Floor)(8)		6.75	%		06/2025		6,068		6,046			0.6			3,408
PetIQ, LLC(3) (15)	Senior Secured First Lien Term Loan	L + 500 (100 Floor)(7)		6.00	%		07/2025		14,812		14,703			2.6			14,812
									20,880		20,749			3.2			18,220
Food, Beverage & Tobacco
Mann Lake Ltd.(3) (5) (6)	Senior Secured First Lien Revolver	L + 750 (100 Floor)(8)		8.50	%		10/2024		840		829			0.1			840
Mann Lake Ltd.(3)	Senior Secured First Lien Term Loan	L + 750 (100 Floor)(8)		8.50	%		10/2024		3,826		3,773			0.7			3,826
									4,666		4,602			0.8			4,666
Health Care Equipment & Services
Abode Healthcare, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						08/2025		—		(18	)		—			(11	)
Abode Healthcare, Inc.(3)	Senior Secured First Lien Term Loan	L + 525 (100 Floor)(8)		6.25	%		08/2025		4,740		4,663			0.8			4,693
Aegis Sciences Corporation	Senior Secured First Lien Term Loan	L + 550 (100 Floor)(8)		6.50	%		05/2025		7,328		6,936			1.2			6,442
Ameda, Inc.(3) (5) (6)	Senior Secured First Lien Revolver	L + 700 (100 Floor)(7)		8.00	%		09/2022		188		186			—			163
Ameda, Inc.(3)	Senior Secured First Lien Term Loan	L + 700 (100 Floor)(7)		8.00	%		09/2022		2,201		2,185			0.4			2,022
Anne Arundel Dermatology Management, LLC(3) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan	L + 600 (100 Floor)(8)		7.00	%		10/2025		491		460			0.1			491
Anne Arundel Dermatology Management, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						10/2025		—		(11	)		—			—

104

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Anne Arundel Dermatology Management, LLC(3)	Senior Secured First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		10/2025	$	2,450	$	2,403			0.4	%	$	2,450
Avalign Technologies, Inc.(3)	Senior Secured First Lien Term Loan	L + 450(8)		4.73	%		12/2025		16,837		16,709			3.0			16,753
BAART Programs, Inc.(3)	Senior Secured Second Lien Delayed Draw Term Loan	L + 800 (100 Floor)(8)		9.00	%		03/2025		1,000		957			0.2			997
BAART Programs, Inc.(3)	Senior Secured Second Lien Term Loan	L + 825 (100 Floor)(18)		9.25	%		03/2025		7,000		6,700			1.3			6,977
Centria Subsidiary Holdings, LLC(3) (5) (6)	Unitranche First Lien Revolver	P + 500(19)		8.25	%		12/2025	$	158	$	109			—	%	$	158
Centria Subsidiary Holdings, LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		12/2025		11,753		11,452			2.1			11,753
CRA MSO, LLC(3) (5) (6)	Senior Secured First Lien Revolver	L + 700 (100 Floor)(7)		8.00	%		12/2023		80		78			—			72
CRA MSO, LLC(3)	Senior Secured First Lien Term Loan	L + 700 (100 Floor)(7)		8.00	%		12/2023		1,225		1,210			0.2			1,173
ExamWorks Group, Inc.(3)	Senior Secured Second Lien Term Loan	L + 725 (100 Floor)(8)		8.25	%		07/2024		5,735		5,642			1.0			5,735
FH MD Buyer, Inc(3)	Senior Secured First Lien Term Loan	L + 575 (100 Floor)(7)		6.75	%		10/2026		17,264		16,845			3.0			16,832
GrapeTree Medical Staffing, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						10/2022		—		(3	)		—			(3	)
GrapeTree Medical Staffing, LLC(3)	Senior Secured First Lien Term Loan	L + 525 (100 Floor)(7)		6.25	%		10/2022		1,645		1,633			0.3			1,634
GrapeTree Medical Staffing, LLC(3)	Senior Secured First Lien Term Loan	L + 525 (100 Floor)(7)		6.25	%		10/2022		1,383		1,367			0.2			1,374
HCAT Acquisition, Inc.(3)	Unitranche First Lien Delayed Draw Term Loan	L + 925 (100 Floor)(8)		10.25	%		11/2022		2,307		2,195			0.4			2,104
HCAT Acquisition, Inc.(3) (20)	Unitranche First Lien Revolver	L + 925 (100 Floor)(8)		10.25	%		11/2022		3,837		3,649			0.6			3,499
HCAT Acquisition, Inc.(3)	Unitranche First Lien Term Loan	L + 925 (100 Floor)(8)		10.25	%		11/2022		14,666		13,948			2.4			13,375
HCOS Group Intermediate III LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						09/2026		—		(17	)		—			(13	)
HCOS Group Intermediate III LLC(3)	Senior Secured First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		09/2026		11,571		11,348			2.0			11,397
Hospice Care Buyer, Inc.(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						12/2026		—		(40	)		—			—

105

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Hospice Care Buyer, Inc.(3) (5) (6)	Unitranche First Lien Revolver	L + 650 (100 Floor)(8)		7.50	%		12/2026	$	31	$	183			—	%	$	231
Hospice Care Buyer, Inc.(3) (6)	Unitranche First Lien Term Loan	L + 650 (100 Floor)(7)		7.50	%		12/2026		12,743		12,339			2.3			12,743
IvyRehab Intermediate II, LLC(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						12/2024		—		(28	)		—			(14	)
IvyRehab Intermediate II, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						12/2024		—		(10	)		—			(5	)
IvyRehab Intermediate II, LLC(3)	Unitranche First Lien Term Loan	L + 675 (100 Floor)(8)		7.75	%		12/2024		8,030		7,872			1.4			7,951
Lightspeed Buyer, Inc.(3) (6) (9)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (100 Floor)(7)		6.50	%		02/2026		1,146		1,120			0.2			1,114
Lightspeed Buyer, Inc.(3) (5) (6)	Unitranche First Lien Revolver	L + 550 (100 Floor)(8)		6.50	%		02/2026		350		332			0.1			331
Lightspeed Buyer, Inc.(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(7)		6.50	%		02/2026		9,925		9,752			1.7			9,745
MDVIP, Inc.	Senior Secured First Lien Term Loan	L + 425 (100 Floor)(7)		5.25	%		11/2024		9,561		9,561			1.7			9,534
Medsurant Holdings, LLC(3)	Senior Secured Second Lien Term Loan	1300(11)		13.00	%		03/2022		7,945		7,907			1.4			7,859
NMN Holdings III Corp.(3)	Senior Secured Second Lien Delayed Draw Term Loan	L + 775(7)		7.93	%		11/2026	$	1,667	$	1,626			0.3	%	$	1,641
NMN Holdings III Corp.(3)	Senior Secured Second Lien Term Loan	L + 775(7)		7.93	%		11/2026		7,222		7,049			1.3			7,110
NMSC Holdings, Inc.(3)	Senior Secured Second Lien Term Loan	L + 1000 (100 Floor)(8)		11.00	%		10/2023		4,307		4,230			0.8			4,194
Omni Ophthalmic Management Consultants, LLC(3) (4) (6) (9)	Senior Secured First Lien Delayed Draw Term Loan						03/2021		—		(2	)		—			(39	)
Omni Ophthalmic Management Consultants, LLC(3) (5)	Senior Secured First Lien Revolver	L + 750 (100 Floor)(7)		8.50	%		05/2023		850		843			0.1			797
Omni Ophthalmic Management Consultants, LLC(3)	Senior Secured First Lien Term Loan	L + 750 (100 Floor)(7)		8.50	%		05/2023		6,878		6,820			1.2			6,452
Pinnacle Treatment Centers, Inc.(3) (6) (9)	Unitranche First Lien Delayed Draw Term Loan	L + 625 (100 Floor)(8)		7.25	%		12/2022		684		677			0.1			684
Pinnacle Treatment Centers, Inc.(3) (4) (5) (6)	Unitranche First Lien Revolver						12/2022		—		(5	)		—			—
Pinnacle Treatment Centers, Inc.(3)	Unitranche First Lien Term Loan	L + 625 (100 Floor)(8)		7.25	%		12/2022		8,052		7,996			1.4			8,052
Professional Physical Therapy(3)	Senior Secured First Lien Term Loan	L + 850 (100 Floor) (including 250 PIK)(8)		9.50	%		12/2022		8,975		8,755			1.2			6,855

106

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
PT Network, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						11/2023	$	—	$	(1	)		—	%	$	(10	)
PT Network, LLC(3)	Senior Secured First Lien Term Loan	L + 750 (100 Floor) (including 200 PIK)(8)		8.50	%		11/2023		4,789		4,782			0.8			4,672
Safco Dental Supply, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						06/2025		—		(8	)		—			(1	)
Safco Dental Supply, LLC(3)	Unitranche First Lien Term Loan	L + 450 (100 Floor)(8)		5.50	%		06/2025		4,043		3,988			0.7			4,034
Seniorlink Incorporated(3) (4) (5) (6)	Unitranche First Lien Revolver						07/2026		—		(29	)		—			—
Seniorlink Incorporated(3)	Unitranche First Lien Term Loan	L + 700 (100 Floor)(8)		8.00	%		07/2026		6,818		6,626			1.2			6,818
Smile Brands, Inc.(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 517 (21 Floor)(8)		5.49	%		10/2024		619		615			0.1			604
Smile Brands, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						09/2024		—		(2	)		—			(7	)
Smile Brands, Inc.(3)	Senior Secured First Lien Term Loan	L + 517 (21 Floor)(8)		5.49	%		10/2024		2,058		2,044			0.4			2,007
Smile Doctors LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						10/2022		—		—			—			(6	)
Smile Doctors LLC(3)	Senior Secured First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		10/2022		16,280		16,261			2.9			16,196
Unifeye Vision Partners(3) (6) (14)	Senior Secured First Lien Delayed Draw Term Loan	P + 400(19)		7.25	%		09/2025		813		782			0.1			707
Unifeye Vision Partners(3) (5) (6)	Senior Secured First Lien Revolver	P + 400(19)		7.25	%		09/2025		453		427			0.1			394
Unifeye Vision Partners(3)	Senior Secured First Lien Term Loan	L + 500 (100 Floor)(8)		6.00	%		09/2025		5,346		5,259			0.9			5,159
Vital Care Buyer, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						10/2025		—		(37	)		—			(39	)
Vital Care Buyer, LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		10/2025	$	7,778	$	7,646			1.4	%	$	7,642
Zest Acquisition Corp.	Senior Secured First Lien Term Loan	L + 350(7)		3.66	%		03/2025		8,603		8,604			1.5			8,259
									260,025		254,560			44.9			251,731
Household & Personal Products
Tranzonic(3) (5) (6)	Senior Secured First Lien Revolver	P + 375 (100 Floor)(19)		7.00	%		03/2023		440		438			0.1			440
Tranzonic(3)	Senior Secured First Lien Term Loan	L + 450 (100 Floor)(7)		5.50	%		03/2023		3,813		3,793			0.7			3,813
									4,253		4,231			0.8			4,253
Insurance

107

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity / Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
Comet Acquisition, Inc.(3)	Senior Secured Second Lien Term Loan	L + 750(8)		7.75	%		10/2026	$	3,563	$	3,556			0.6	%	$	3,231
Integrity Marketing Acquisition, LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (100 Floor)(8)		6.50	%		08/2025		5,068		4,959			0.9			5,068
Integrity Marketing Acquisition, LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 550 (100 Floor)(8)		6.50	%		08/2025		3,064		2,997			0.5			3,064
Integrity Marketing Acquisition, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						08/2025		—		(39	)		—			—
Integrity Marketing Acquisition, LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(8)		6.50	%		08/2025		12,879		12,618			2.3			12,879
Integro Parent, Inc.(3) (15)	Senior Secured First Lien Term Loan	L + 575 (100 Floor)(7)		6.75	%		10/2022		473		470			0.1			473
Integro Parent, Inc.(3) (15)	Senior Secured Second Lien Delayed Draw Term Loan	L + 925 (100 Floor)(7)		10.25	%		10/2023		380		378			0.1			369
Integro Parent, Inc.(3) (15)	Senior Secured Second Lien Term Loan	L + 925 (100 Floor)(7)		10.25	%		10/2023		2,916		2,889			0.5			2,825
The Hilb Group, LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 575 (100 Floor)(7)		6.75	%		12/2026		1,019		996			0.2			1,016
The Hilb Group, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						12/2025		—		(7	)		—			(1	)
The Hilb Group, LLC(3)	Unitranche First Lien Term Loan	L + 575 (100 Floor)(8)		6.75	%		12/2026		3,603		3,524			0.6			3,594
THG Acquisition, LLC(3) (6) (9)	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)(8)		7.00	%		12/2026		53		31			—			49
THG Acquisition, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						12/2025		—		(4	)		—			—
THG Acquisition, LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		12/2026		1,069		1,042			0.2			1,066
									34,087		33,410			6.0			33,633
Materials
Kestrel Parent, LLC(3) (4) (6) (20)	Unitranche First Lien Revolver						11/2023		—		(12	)		—			—
Kestrel Parent, LLC(3)	Unitranche First Lien Term Loan	L + 575 (100 Floor)(8)		6.75	%		11/2025		6,672		6,547			1.2			6,672
									6,672		6,535			1.2			6,672
Pharmaceuticals, Biotechnology & Life Sciences
Pharmalogic Holdings Corp.(3)	Senior Secured Second Lien Delayed Draw Term Loan	L + 800(7)		8.15	%		12/2023		4,760		4,733			0.8			4,663
Pharmalogic Holdings Corp.(3)	Senior Secured Second Lien Term Loan	L + 800(7)		8.15	%		12/2023		5,460		5,428			1.0			5,349
Pharmalogic Holdings Corp.(3)	Senior Secured Second Lien Term Loan	L + 800(7)		8.15	%		12/2023	$	5,880	$	5,845			1.0	%	$	5,760

108

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Teal Acquisition Co., Inc(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						09/2026	$	—		(24	)	$	—	%	$	—
Teal Acquisition Co., Inc(3) (5) (6)	Unitranche First Lien Revolver	L + 625 (100 Floor)(8)		7.25	%		09/2026		274		237			0.1			274
Teal Acquisition Co., Inc(3)	Unitranche First Lien Term Loan	L + 625 (100 Floor)(8)		7.25	%		09/2026		9,124		8,861			1.6			9,124
Trinity Partners, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						02/2025		—		(4	)		—			—
Trinity Partners, LLC(3)	Senior Secured First Lien Term Loan	L + 525 (100 Floor)(7)		6.25	%		02/2025		3,709		3,682			0.7			3,709
									29,207		28,758			5.2			28,879
Retailing
Palmetto Moon LLC,(3)	Senior Secured First Lien Term Loan	1150 + 250 PIK(11)		14.00	%		10/2021		4,155		3,397			0.7			3,813
Slickdeals Holdings, LLC(3) (4) (6) (10) (20)	Unitranche First Lien Revolver						06/2023		—		(10	)		—			—
Slickdeals Holdings, LLC(3) (10)	Unitranche First Lien Term Loan	L + 625 (100 Floor)(12)		7.25	%		06/2024		14,528		14,223			2.6			14,528
									18,683		17,610			3.3			18,341
Software & Services
Affinitiv, Inc.(3) (4) (5) (6)	Unitranche First Lien Revolver						08/2024		—		(7	)		—			—
Affinitiv, Inc.(3)	Unitranche First Lien Term Loan	L + 700 (100 Floor)(8)		8.00	%		08/2024		6,435		6,349			1.2			6,435
Ansira Partners, Inc.(3) (16)	Unitranche First Lien Delayed Draw Term Loan						12/2024		964		931			0.1			676
Ansira Partners, Inc.(3) (16)	Unitranche First Lien Term Loan						12/2024		7,122		6,687			0.9			4,997
Avaap USA LLC(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 725 (1007 Floor)(7)		8.25	%		03/2023		344		340			0.1			336
Avaap USA LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						03/2023		—		(7	)		—			(15	)
Avaap USA LLC(3)	Senior Secured First Lien Term Loan	L + 725 (100 Floor)(7)		8.25	%		03/2023		3,769		3,727			0.7			3,684
Benesys Inc.(3)	Senior Secured First Lien Term Loan	L + 475 (100 Floor)(7)		5.75	%		10/2024		300		294			0.1			295
Benesys, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						10/2024		—		(1	)		—			(3	)
Benesys, Inc.(3)	Senior Secured First Lien Term Loan	L + 475 (100 Floor)(7)		5.75	%		10/2024		1,414		1,400			0.3			1,388
C-4 Analytics, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						08/2023		—		(5	)		—			—
C-4 Analytics, LLC(3)	Senior Secured First Lien Term Loan	L + 525 (100 Floor)(7)		6.25	%		08/2023		9,916		9,832			1.8			9,916
CAT Buyer, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						04/2024		—		(8	)		—			(17	)

109

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
CAT Buyer, LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(7)		6.50	%		04/2024	$	6,239	$	6,154			1.1	%	$	6,041
Claritas, LLC(3) (5) (6)	Senior Secured First Lien Revolver	L + 600 (100 Floor)(8)		7.00	%		12/2023		113		111			—			113
Claritas, LLC(3)	Senior Secured First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		12/2023		1,093		1,085			0.2			1,093
List Partners, Inc.(3) (4) (5) (6)	Senior Secured First Lien Revolver						01/2023		—		(4	)		—	%		(6	)
List Partners, Inc.(3)	Senior Secured First Lien Term Loan	L + 500 (100 Floor)(7)		6.00	%		01/2023		4,495		4,455			0.8			4,440
MRI Software LLC(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						02/2026		—		(22	)		—			(3	)
MRI Software LLC(3) (4) (5) (6)	Unitranche First Lien Delayed Draw Term Loan						02/2026		—		(4	)		—			(1	)
MRI Software LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						02/2026		—		(16	)		—			(32	)
MRI Software LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(8)		6.50	%		02/2026		149		145			—			149
MRI Software LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(8)		6.50	%		02/2026		18,079		17,841			3.2			18,034
Ontario Systems, LLC(3) (4) (6) (9)	Unitranche First Lien Delayed Draw Term Loan						08/2025		—		(4	)		—			(38	)
Ontario Systems, LLC(3) (5) (6)	Unitranche First Lien Revolver	L + 550 (100 Floor)(8)		6.50	%		08/2025		200		196			—			183
Ontario Systems, LLC(3)	Unitranche First Lien Term Loan	L + 550 (100 Floor)(7)		6.50	%		08/2025		3,209		3,183			0.6			3,098
Park Place Technologies, LLC(3)	Unsecured Debt	1250 PIK(11)		12.50	%		05/2029		784		784			0.1			784
Perforce Software, Inc.(3)	Senior Secured Second Lien Term Loan	L + 800(7)		8.15	%		07/2027		5,000		4,977			0.9			5,000
Prism Bidco, Inc.(3) (4) (5) (6)	Unitranche First Lien Revolver						06/2026		—		(23	)		—			(13	)
Prism Bidco, Inc.(3)	Unitranche First Lien Term Loan	L + 700 (100 Floor)(8)		8.00	%		06/2026		7,463		7,254			1.3			7,351
Right Networks, LLC(3) (4) (5) (6)	Unitranche First Lien Revolver						11/2024		—		(4	)		—			—
Right Networks, LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(7)		7.00	%		11/2024		9,645		9,472			1.7			9,645
Ruffalo Noel Levitz, LLC(3) (5) (6)	Unitranche First Lien Revolver	L + 600 (100 Floor)(8)		7.00	%		05/2022		240		238			—			237
Ruffalo Noel Levitz, LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(8)		7.00	%		05/2022		2,505		2,489			0.4			2,480
Saturn Borrower Inc(3) (4) (5) (6)	Unitranche First Lien Revolver						09/2026		—		(43	)		—			—
Saturn Borrower Inc(3)	Unitranche First Lien Term Loan	L + 650 (100 Floor)(8)		7.50	%		09/2026		20,524		19,929			3.7			20,524

110

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Transportation Insight, LLC(3) (9)	Senior Secured First Lien Delayed Draw Term Loan	L + 450(7)		4.65	%		12/2024	$	1,277	$	1,269			0.2	%	$	1,226
Transportation Insight, LLC(3) (4) (5) (6)	Senior Secured First Lien Revolver						12/2024		—		(5	)		—			(30	)
Transportation Insight, LLC(3)	Senior Secured First Lien Term Loan	L + 450(7)		4.65	%		12/2024		5,142		5,107			0.9			4,936
Trident Technologies, LLC(3)	Senior Secured First Lien Term Loan	L + 600 (150 Floor)(8)		7.50	%		12/2025		14,850		14,658			2.6			14,726
Winxnet Holdings LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)(7)		7.00	%		06/2023		641		632			0.1			636
Winxnet Holdings LLC(3)	Unitranche First Lien Delayed Draw Term Loan	L + 600 (100 Floor)(8)		7.00	%		06/2023		1,050		1,029			0.2			1,043
Winxnet Holdings LLC(3) (5) (6)	Unitranche First Lien Revolver	L + 600 (100 Floor)(7)		7.00	%		06/2023		240		236			—			237
Winxnet Holdings LLC(3)	Unitranche First Lien Term Loan	L + 600 (100 Floor)(7)		7.00	%		06/2023		1,950		1,929			0.3			1,936
									135,152		132,580			23.5			131,481
Technology Hardware & Equipment
Onvoy, LLC(3)	Senior Secured Second Lien Term Loan	L + 1050 (100 Floor)(7)		11.50	%		02/2025		2,635		2,556			0.5			2,585
Transportation
Pilot Air Freight, LLC(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)(8)		5.75	%		07/2024		1,196		1,196			0.2			1,184
Pilot Air Freight, LLC(3)	Senior Secured First Lien Delayed Draw Term Loan	L + 475 (100 Floor)(8)		5.75	%		07/2024		771		769			0.1			764
Pilot Air Freight, LLC(3) (4) (6) (9)	Senior Secured First Lien Revolver						07/2024		—		—			—			(1	)
Pilot Air Freight, LLC(3)	Senior Secured First Lien Term Loan	L + 475 (100 Floor)(8)		5.75	%		07/2024		5,363		5,343			1.0			5,310
									7,330		7,308			1.3			7,257
Total Debt Investments United States								$	878,578	$	856,705			151.8	%	$	850,093
Equity Investments
Capital Goods
Alion Science and Technology Corporation(3)	Common Stock								745,504		766			0.2			1,392
Envocore Holding, LLC(3)	Preferred Stock								1,139,725		—			—			—
									1,885,229		766			0.2			1,392

111

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate	Maturity/ Dissolution Date	Principal Amount, Par Value or Shares		Cost		Percentage of Net Assets **			Fair Value
Commercial & Professional Services
Allied Universal holdings, LLC(3)	Common Stock, Class A				$	2,240,375	$	1,011		0.5	%	$	2,716
ASP MCS Acquisition Corp.(10)	Common Stock					11,792		1,150		0.3			1,500
Battery Solutions, Inc.(3) (10)	Preferred Stock, Class E					5,275,561		3,669		0.4			2,373
Battery Solutions, Inc.(3) (10)	Preferred Stock, Class A					50,000		—		—			—
Battery Solutions, Inc.(3) (10)	Preferred Stock, Class F					3,333,333		—		—			—
Hercules Borrower LLC(3)	Common Stock					1,153,075		1,153		0.2			1,153
IGT Holding LLC(3)	Preferred Stock					645,730		—		—			—
IGT Holding LLC(3)	Common Stock					1,000,000		—		—			—	��
MHS Acquisition Holdings, LLC(3)	Common Stock					10		10		—			—
MHS Acquisition Holdings, LLC(3)	Preferred Stock					1,018		923		0.2			799
My Alarm Center, LLC(3)	Common Stock					129,582		—		—			—
My Alarm Center, LLC(3)	Junior Preferred Stock					2,420		—		—			—
My Alarm Center, LLC(3)	Senior Preferred Stock					2,998		—		—			—
PB Parent, LP(3)	Common Stock					1,125,000		1,125		0.2			1,189
RSI Acquisition, LLC(3)	Preferred Stock, Class A					137,000		137		—			196
Saber Parent Holdings(3)	Common Stock					13,132		1,313		0.2			1,313
TecoStar Holdings, Inc.(3)	Common Stock					500,000		500		0.2			1,024
						15,621,026		10,991		2.2			12,263
Consumer Services
Everlast Holding, Inc.(3)	Common Stock					948		948		0.2			948
Green Wrench Acquisition, LLC(3)	Common Stock					4,082		410		0.1			569
HGH Investment, LP(3)	Common Stock, Class A					4,171		417		0.1			562
Legalshield(3)	Common Stock					372		372		0.1			495
Southern Technical Institute, Inc.(3) (10)	Common Stock, Class A1					6,000,000		—		1.3			6,987
Southern Technical Institute, Inc.(3) (10)	Common Stock, Class A					3,164,063		—		—			266
Wrench Group Holdings, LLC(3)	Common Stock, Class A					1,143		115		—			160
						9,174,779		2,262		1.8			9,987

112

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date	Principal Amount, Par Value or Shares		Cost		Percentage of Net Assets **			Fair Value
Diversified Financials
CBDC Senior Loan Fund LLC(15) (21)  (22)	Partnership Interest						$	40,000,000	$	40,000		6.9	%	$	38,735
GACP II LP(10) (15) (22) (23)	Partnership Interest							16,227,613		16,228		2.9			16,154
								56,227,613		56,228		9.8			54,889
Health Care Equipment & Services
ExamWorks Group, Inc.(3)	Common Stock							7,500		750		0.3			1,586
Hospice Care Buyer, Inc.(3)	Common Stock							11,265		1,127		0.2			1,127
MDVIP, Inc.(3)	Common Stock							46,807		648		0.2			1,169
NMN Holdings LP(3)	Common Stock							11,111		1,111		0.3			1,454
PT Network, LLC(3)	Common Stock, Class C							0.93		—		—			—
SL Topco Holdings, Inc.(3)	Common Stock							68,182		682		0.2			944
Spartan Healthcare Holdings, LLC(3)	Common Stock							11,911		1,191		0.2			1,353
								156,777		5,509		1.4			7,633
Insurance
Integrity Marketing Acquisition, LLC(3)	Common Stock							619,562		648		0.2			1,252
Integrity Marketing Acquisition, LLC(3)	Preferred Stock							1,247		1,216		0.3			1,485
Integro Parent, Inc.(3) (15)	Common Stock							4,468		454		0.1			784
								625,277		2,318		0.6			3,521
Materials
Kestrel Upperco, LLC(3)	Common Stock, Class A							41,791		209		—			240
Media & Entertainment
Conisus, LLC(3) (10)	Common Stock							4,914,556		—		0.8			4,320
Conisus, LLC(3) (10) (24)	Preferred Stock, Series B	1500 PIK		15.00	%			18,544,370		10,160		3.3			18,545
								23,458,926		10,160		4.1			22,865
Pharmaceuticals, Biotechnology & Life Sciences
Teal Parent Holdings, LP(3)	Common Stock							4,562		456		0.1			456
Retailing
Palmetto Moon, LLC(3)	Common Stock							99		—		—			—
Slickdeals Holdings, LLC(3) (10)	Common Stock							61		990		0.3			1,482
Vivid Seats Ltd.(3) (10)	Common Stock							608,108		608		0.1			801
Vivid Seats Ltd.(3) (10)	Preferred Stock							1,891,892		1,892		0.5			2,913

113

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares**		Cost			Percentage of Net Assets ***			Fair Value
								$	2,500,160	$	3,490			0.9	%	$	5,196
Software & Services
Curvature(3) (25)	Residual Interest								—		2,482			0.4			2,481
Saturn Topco LP(3)	Common Stock								411,511		412			0.1			412
									411,511		2,894			0.5			2,893
Technology Hardware & Equipment
Onvoy, LLC(3)	Common Stock, Class A								3,649		365			0.1			410
Onvoy, LLC(3)	Common Stock, Class B								2,536		—			—			—
									6,185		365			0.1			410
Transportation
Xpress Global Systems, LLC(3)	Common Stock								12,544		—			—			—
Total Equity Investments United States									110,126,380	$	95,648			21.7	%	$	121,745
Total United States										$	952,353			173.5	%	$	971,838
Canada
Debt Investments
Health Care Equipment & Services
VetStrategy(3) (4) (6) (9) (11)	Unitranche First Lien Delayed Draw Term Loan						07/2027	C$	657		(35	)		—			—
VetStrategy(3) (15)	Unitranche First Lien Term Loan	C + 700(100 Floor)(26)		8.00	%		07/2027		9,292		6,738			1.3			7,294
VetStrategy(3) (6) (9) (15)	Unitranche First Lien Delayed Draw Term Loan	C + 700(100 Floor)(26)		8.00	%		07/2027		1,399		973			0.2			1,010
VetStrategy(3) (15)	Unitranche First Lien Delayed Draw Term Loan	C + 700 (100 Floor )(26)		8.00	%		07/2027		1,729		1,259			0.2			1,357
									13,077		8,935			1.7			9,661
Telecommunication Services
Sandvine Corporation(3) (15)	Senior Secured Second Lien Term Loan	L + 800(7)		8.15	%		11/2026		4,500		4,359			0.7			4,062
Total Debt Investments Canada								C$	17,577	$	13,294			2.4	%	$	13,723
Equity Investments
Health Care Equipment & Services
VetStrategy(3) (15)	Common Stock								750,000	$	560			0.1	%	$	589
									750,000		560			0.1			589
Total Equity Investments Canada									750,000	$	560			0.1	%	$	589
Total Canada										$	13,854			2.5	%	$	14,312

114

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

Company/Security/Country	Investment Type	Interest Term *	Interest Rate			Maturity/ Dissolution Date		Principal Amount, Par Value or Shares**		Cost		Percentage of Net Assets ***			Fair Value
United Kingdom
Debt Investments
Commercial & Professional Services
Crusoe Bidco Limited(3) (6) (15) (27)	Unitranche First Lien Delayed Draw Term Loan	L + 625(28)		6.27	%		12/2025	£	303	$	398		0.1	%	$	415
Crusoe Bidco Limited(3) (15)	Unitranche First Lien Term Loan	L + 625(28)		6.28	%		12/2025		6,068		7,431		1.5			8,294
Crusoe Bidco Limited(3) (6) (15) (27)	Unitranche First Lien Delayed Draw Term Loan						12/2025		—		—		—			—
									6,371		7,829		1.6			8,709
Consumer Services
Auction Technology Group(3) (15)	Unitranche First Lien Term Loan	650(29)		6.62	%		02/2027	£	3,339		4,241		0.8			4,564
Auction Technology Group(3) (15)	Unitranche First Lien Term Loan	L + 650(29)		6.84	%		02/2027	$	10,687		10,398		1.9			10,687
									14,026		14,639		2.7			15,251
Total Debt Investments United Kingdom									20,397	$	22,468		4.3	%	$	23,960
Total United Kingdom										$	22,468		4.3	%	$	23,960
Netherlands
Debt Investments
Pharmaceuticals, Biotechnology & Life Sciences
PharComp Parent B.V.(3) (15) (17)	Unitranche First Lien - Last Out Term Loan	E + 625(30) (31)		6.25	%		02/2026	€	6,910		7,654		1.5			8,454
PharComp Parent B.V.(3) (6) (15) (27)	Unitranche First Lien Term Loan	E + 625(30) (31)		6.25	%		02/2026		187		151		0.1			229
									7,097		7,805		1.6			8,683
Total Debt Investments Netherlands								€	7,097	$	7,805		1.6	%	$	8,683
Total Netherlands										$	7,805		1.6	%	$	8,683
Belgium
Debt Investments
Commercial & Professional Services
MIR Bidco SA(3) (15)	Unitranche First Lien Term Loan	E + 625(31) (32)		6.25	%		04/2026	€	9,507		10,491		2.0			11,168
Miraclon Corporation(3) (15)	Unitranche First Lien Term Loan	L + 625(12)		7.47	%		04/2026	$	4,162		4,061		0.7			3,983
									13,669		14,552		2.7			15,151
Total Debt Investments Belgium									13,669	$	14,552		2.7	%	$	15,151
Equity Investments
Commercial & Professional Services
MIR Bidco SA(3) (15)	Common Stock								921		1		—			—
MIR Bidco SA(3) (15)	Preferred Stock								81,384		91		—			57
									82,305		92		—			57
Total Equity Investments Belgium									82,305	$	92		—	%	$	57
Total Belgium										$	14,644		2.7	%	$	15,208
Total Investments										$	1,011,124		184.6	%	$	1,034,001

115

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

* The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”), CDOR (“C”) or EURIBOR (“E”) and which reset monthly, bi-monthly, quarterly, semiannually or annually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at December 31, 2020. 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.

** The total par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Canadian Dollar (“C$”), Euro (“€”), or Pound Sterling (“£”).

*** Percentage is based on net assets of $560,000 as of December 31, 2020.

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

(2) All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.

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

(4) 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.

(5) Investment pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

(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 1 month LIBOR plus a base rate. The 1 month LIBOR as of December 31, 2020 was 0.14%. 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 3 month LIBOR plus a base rate. The 3 month LIBOR as of December 31, 2020 was 0.24%. For some of these loans, the interest rate is based on the last reset date.

(9) Investment pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

(10) As defined in the 1940 Act, the portfolio company is deemed to be a “non-controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 5% or more of the portfolio company’s outstanding voting securities. See Note 3 “Agreements and Related Party Transactions”.

(11) Fixed rate investment.

(12) The interest rate on these loans is subject to the greater of a LIBOR floor or 6 month LIBOR plus a base rate. The 6 month LIBOR as of December 31, 2020 was 0.26%. For some of these loans, the interest rate is based on the last reset date.

(13) 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 December 31, 2020 was 0.19%. For some of these loans, the interest rate is based on the last reset date.

(14) Investment pays 0.75% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

(15) 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. The Company’s percentage of non-qualifying assets based on fair value was 13.30% as of December 31, 2020.

(16) The investment is on non-accrual status as of December 31, 2020.

(17) These loans are unitranche first lien/last-out term loans. In addition to the interest earned based on the effective 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.

(18) 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 December 31, 2020 was 0.34%. For some of these loans, the interest rate is based on the last reset date.

(19) The interest rate on these loans is subject to the U.S. Prime rate, which as of December 31, 2020 was 3.25%.

(20) Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

(21) As defined in the 1940 Act, the portfolio company is deemed to be a “controlled affiliated person” of the Company because the Company owns, either directly or indirectly, 25% or more of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company. See Note 3 “Agreements and Related Party Transactions”.

(22) 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.

(23) Investment is not redeemable.

(24) Income producing equity security.

(25) Residual interest in Curvature (Beijing) Technology Limited.

(26) The interest rate on these loans is subject to the greater of a CDOR floor or 3 month CDOR plus a base rate. The 3 month CDOR as of December 31, 2020 was 0.50%. For some of these loans, the interest rate is based on the last reset date.

(27) Investment pays 2.19% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

116

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except share and per share data)

(28) 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, 2020 was 0.03%. For some of these loans, the interest rate is based on the last reset date.

(29) The interest rate on these loans is subject to the greater of a GBP LIBOR floor or 6 month GBP LIBOR plus a base rate. The 6 month GBP LIBOR as of December 31, 2020 was 0.03%. For some of these loans, the interest rate is based on the last reset date.

(30) 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, 2020 was (0.55)%. For some of these loans, the interest rate is based on the last reset date.

(31) For EURIBOR rate investments where negative rates can be prevalent, a 0% floor is presumed.

(32) The interest rate on these loans is subject to the greater of a EURIBOR floor or 6 month EURIBOR plus a base rate. The 6 month EURIBOR as of December 31, 2020 was (0.53)%. For some of these loans, the interest rate is based on the last reset date.

Foreign Currency Exchange Contracts
Counterparty	Currency Purchased		Currency Sold		Settlement		Unrealized Appreciation/ (Depreciation)
Wells Fargo Bank, N.A.	USD	7,089	CAD	9,712		7/31/2025	$	(12	)
Wells Fargo Bank, N.A.	USD	612	CAD	801		7/31/2025		(485	)
Wells Fargo Bank, N.A.	USD	325	CAD	422		7/31/2025		(4	)
Wells Fargo Bank, N.A.	USD	622	CAD	839		7/31/2025		(32	)
Wells Fargo Bank, N.A.	USD	635	CAD	864		7/31/2025		(39	)
Wells Fargo Bank, N.A.	USD	209	EUR	187		2/20/2024		(26	)
Wells Fargo Bank, N.A.	USD	8,063	EUR	6,703		2/20/2024		183
Wells Fargo Bank, N.A.	USD	11,682	EUR	9,222		4/10/2024		81
Wells Fargo Bank, N.A.	USD	7,975	GBP	5,885		12/01/2023		(125	)
Wells Fargo Bank, N.A.	USD	395	GBP	294		12/01/2023		(10	)
Wells Fargo Bank, N.A.	USD	4,317	GBP	3,239		2/13/2025		(163	)
Total Foreign Currency Exchange Contracts							$	(632	)

CAD Canadian Dollar

EUR Euro

GBP Great British Pound

PIK Payment In-Kind

USD United States Dollar

117

CRESCENT CAPITAL BDC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

December 31, 2021

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 management investment company. The Company commenced investment operations on June 26, 2015. On January 30, 2020, the Company changed its state of incorporation from the State of Delaware to the State of Maryland. 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”) and currently operates as a diversified investment company. 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’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company invests primarily in secured debt (including first lien, unitranche first lien and second lien debt) and unsecured debt (including mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. Although the Company’s focus is to invest in private credit transactions, in certain circumstances it may also invest in broadly syndicated loans and bonds.

The Company is managed by Crescent Cap Advisors, LLC (the “Adviser” and formerly, CBDC Advisors, LLC), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended. CCAP Administration LLC (the “Administrator” and formerly, CBDC Administration, LLC) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Adviser and Administrator, along with the Company’s Board of Directors (the “Board”). The Adviser 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 Adviser. The Board consists of five directors, four of whom are independent.

From time to time, the Company may form wholly owned subsidiaries to facilitate the normal course of business if the Adviser determines that for legal, tax, regulatory, accounting or other similar reasons it is in the best interest of the Company to do so. The Company has formed a wholly owned subsidiary that is structured as a tax blocker, to hold equity or equity-like investments in portfolio companies organized as limited liability companies or other forms of pass-through entities. This corporate subsidiary is not consolidated for income tax purposes and may incur income tax expenses as a result of its ownership of portfolio companies. The Company has also formed a special purpose vehicle that holds certain debt investments in connection with a credit facility.

On January 31, 2020, the Company completed a transaction to acquire Alcentra Capital Corporation in a cash and stock transaction (the “Alcentra Acquisition”). The Company was listed and began trading on the NASDAQ stock exchange on February 3, 2020.

On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent Capital Group LP (“Crescent”), the majority member of the Adviser (the “Sun Life Transaction”). Consummation of the Sun Life Transaction resulted in a change of control of Crescent.

Note 2. Summary of Significant Accounting Policies

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

118

The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.

The Company does not consolidate its equity interest in CBDC Senior Loan Fund, LLC (the “Senior Loan Fund”).

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 may include 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. Restricted cash and cash equivalents consists of deposits and cash collateral held at Wells Fargo Bank N.A. related to the Company’s credit facility and foreign currency forward contracts. The Company holds cash and cash equivalents denominated in foreign currencies. The Company deposits its cash, cash equivalents and restricted cash with highly rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.

Investment Transactions

Loan originations are recorded on the date of the binding commitment. Investments purchased on a secondary market are recorded on the trade date. Realized gains or losses are recorded using the specific identification 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

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.

119

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 Adviser, the Company’s Audit Committee and, with certain de minimis exceptions, 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 Adviser’s management and Crescent’s alternative investment valuation committee 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.

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 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.

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 from the unrealized gains or losses reflected herein.

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 cash, investments and borrowings are included with net change in unrealized appreciation (depreciation) on investments and foreign currency translation on the Consolidated Statements of Operations.

120

The Company’s approach to hedging the foreign currency exposure in its non-U.S. dollar denominated investments is borrow local currency under the Company’s credit facilities or to enter into foreign currency forward contracts.

Foreign currency forward contracts

The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Forward foreign currency contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts are recorded on the Consolidated Statements of Assets and Liabilities on a gross basis, not taking into account collateral posted which is recorded separately, if applicable. All foreign currency forward contracts are currently held with a single counterparty. Notional amounts and the gross fair value of foreign currency forward contract assets and liabilities are presented separately on the Consolidated Schedules of Investments. Purchases and sales of foreign currency forward contracts having the same notional value, settlement date and counterparty are generally settled net (which results in a net foreign currency position of zero with the counterparty) and any realized gains or losses are recognized on the settlement date.

The Company does not utilize hedge accounting and as such, the Company recognizes its derivatives at fair value with changes in the net unrealized appreciation (depreciation) on foreign currency forward contracts recorded on the Consolidated Statements of Operations.

Debt Issuance Costs

The Company records costs related to the issuance of debt obligations as deferred financing costs. These costs are amortized over the life of the related debt instrument using the straight-line method or the effective yield method, depending on the type of debt instrument. See Note 6 for details.

Equity Offering Expenses

The Company records expenses related to registration statement filings and applicable offering costs as deferred offering costs. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of paid-in-capital upon each such offering.

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 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 common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. 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. Each distribution received from an equity investment is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments as dividend income unless there is sufficient current or accumulated earnings prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Certain investments have contractual payment-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 income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status.

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Loans are generally placed on non-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 on non-accrual status. Interest payments received on non-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 on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of December 31, 2021, the Company had three portfolio companies with five investment positions on non-accrual status, which represented 1.6% and 1.2% of the total debt investments at cost and fair value, respectively. As of December 31, 2020, the Company had two portfolio companies with three investment positions on non-accrual status, which represented 1.7% and 1.3% of the total debt investments at cost and fair value, respectively.

Other Income

Other income may include income such as consent, waiver, amendment, agency, underwriting and arranger fees associated with the Company’s investment activities. Such fees are recognized as income when earned or the services are rendered.

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 740 — Income Taxes (“ASC 740”). ASC 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 December 31, 2021, the Company is subject to examination by U.S. federal tax authorities for returns filed for the three most recent calendar years and by state tax authorities for returns filed for the four most recent calendar years.

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 accrues excise tax on estimated undistributed taxable income as required on a quarterly basis

CBDC Universal Equity, Inc., a wholly-owned subsidiary of the Company, is a taxable entity (“Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continues 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.

Dividends and Distributions to Stockholders

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. 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 adopted a dividend reinvestment plan that provides for reinvestment of the Company’s dividends and other distributions on behalf of the stockholders unless a stockholder elects to receive cash. As a result, if the Company’s Board authorizes, and the Company declares, a cash dividend, or other distribution then stockholders who are participating in the dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of common stock, rather than receiving cash dividends and distributions.

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New Accounting Standards

In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in January 2021, the FASB issued Accounting Standards Update 2021-01 (“ASU 2021-01”) “Reference Rate Reform (Topic 848): Scope. This ASU provides optional exceptions for applying GAAP to contract modifications, hedging relationships and other transactions affected reference rate reform if certain criteria are met. ASU 2020-04 and 2021-01 are elective and can be adopted between March 12, 2020 and December 31, 2022. The adoption of this guidance has no material impact on the Company’s consolidated financial statements.

Note 3. Agreements and Related Party Transactions

Administration Agreement

On June 2, 2015, the Company entered into the administration agreement with the Administrator, as amended and restated on February 1, 2020. 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 years ended December 31, 2021, 2020 and 2019, the Company incurred administrative services expenses of $1,028, $819 and $657, respectively, which are included in other general and administrative expenses on the Consolidated Statements of Operations, of which $354 and $321, respectively, were payable at December 31, 2021 and 2020. In addition to administrative services expenses, the payable balances may include other operating expenses paid by the Administrator on behalf of the Company.

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 accounting professionals, legal counsel, and compliance 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 the 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, which are included as directors’ fees on the Consolidated Statements of Operations.

Investment Advisory Agreement

On June 2, 2015, the Company entered into an investment advisory agreement with the Adviser which was most recently amended and restated (the “Investment Advisory Agreement”) on January 5, 2021. Under the terms of the Investment Advisory Agreement, the Adviser provides investment advisory services to the Company and its portfolio investments. The Adviser’s services under the Investment Advisory Agreement are not exclusive, and the Adviser 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 Adviser is entitled to receive a base management fee and may also receive incentive fees, as discussed below.

Base Management Fee

Effective February 1, 2020, pursuant to the Investment Advisory Agreement, the base management fee is calculated and payable quarterly in arrears at an annual rate of 1.25% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash, cash equivalents and restricted cash. 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. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper maturing within one year of purchase.

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Under the terms of the Investment Advisory Agreement, the Adviser agreed to waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the closing of the Alcentra Acquisition so that only 0.75% shall be charged for such time period. The Adviser has also voluntarily waived its right to receive management fees that would result from the Company’s investments in GACP II LP and WhiteHawk III Onshore Fund LP.

Prior to February 1, 2020, the base management fee was calculated and payable quarterly in arrears at an annual rate of 1.50% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Adviser 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 during the period prior to February 3, 2020, the date of the Company’s qualified initial public offering.

For the years ended December 31, 2021, 2020 and 2019, the Company incurred management fees of $14,118, $11,438 and $9,198, of which $3,302, $4,672 and $4,502, respectively, were waived. As of December 31, 2021 and 2020, management fees of $3,830 and $1,867, respectively, were unpaid.

Incentive Fee per Investment Advisory Agreement

Under the Investment Advisory Agreement, the incentive fee 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 the pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.75% (1.50% prior to February 1, 2020) per quarter (7.0% annualized or 6.0% annualized prior to February 1, 2020) (the “Hurdle”), and a catch-up feature until the Adviser has received 17.5% (15.0% prior to February 1, 2020), of the pre-incentive fee net investment income for the current quarter up to 2.1212% (1.7647% prior to February 1, 2020) (the “Catch-up”), and (b) 17.5% (15.0% prior to February 1, 2020) of all remaining pre-incentive fee net investment income above the “Catch-up.”

The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year at a rate of 17.5% (15.0% prior to February 1, 2020) of the Company’s realized capital gains, if any, on a cumulative basis from the Company’s 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. 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.

Under the terms of the Investment Advisory Agreement, the Adviser agreed to waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021. The income and capital gains incentive fees were previously waived from April 1, 2018 through February 1, 2020. Additionally, On February 22, 2021, the Adviser notified the Board of Directors of its intent to voluntarily waive income incentive fees to the extent net investment income falls short of the regular declared dividend on a full dollar basis. The waiver is effective from July 31, 2021 through December 31, 2022. The Adviser has also voluntarily waived its right to receive income incentive fees that would result from the Company’s investments in GACP II LP and WhiteHawk III Onshore Fund LP.

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, original issue discount, 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 1.75% per quarter or 7.0% annualized (1.50% per quarter and 6.0% annualized prior to February 1, 2020), and (ii) our 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.

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For the years ended December 31, 2021, 2020 and 2019, the Company incurred income incentive fees of $9,849, $8,639 and $4,752, of which $7,517, $8,639 and $4,752, respectively, were waived. As of December 31, 2021 and 2020, income incentive fees of $600 and $0, respectively, were unpaid.

GAAP Incentive Fee on Cumulative Unrealized Capital Appreciation

The Company accrues, but does not pay, a portion of the incentive fee based on capital gains with respect to net unrealized appreciation. Under GAAP, the Company is required to accrue an incentive fee based on capital gains that includes net realized capital gains and losses and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the accrual for the incentive fee based on capital gains, the Company considers the cumulative aggregate unrealized capital appreciation in the calculation, since an incentive fee based on capital gains would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee payable under the Investment Advisory Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then the Company records a capital gains incentive fee equal to 15% (prior to February 3, 2020) or 17.5% (effective February 3, 2020) of such amount, minus the aggregate amount of actual incentive fees based on capital gains paid in all prior periods. If such amount is negative, then there is no accrual for such period. There can be no assurance that such unrealized capital appreciation will be realized in the future.

For the years ended December 31, 2021, 2020 and 2019, the Company recorded capital gains incentive fees on unrealized capital appreciation of $6,324, $0 and $0 respectively, of which $6,324 and $0 were accrued and unpaid at December 31, 2021 and 2020.

Other Related Party Transactions

From time to time, the Administrator 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 Administrator for such amounts paid on its behalf. Amounts payable to the Administrator are settled in the normal course of business without formal payment terms.

In conjunction with the closing of Alcentra Capital merger, the Company and the Adviser executed a Transaction Support Agreement, as described in Note 13.

A portion of the outstanding shares of the Company’s common stock is owned by Crescent. At December 31, 2021 and 2020, Crescent and other related parties owned 1.93% and 2.11%, respectively, of the outstanding common shares of the Company. Crescent is also the majority member of the Adviser and sole member of the Administrator. The Company has entered into a license agreement with Crescent under which Crescent granted the Company a non-exclusive, royalty-free license to use the name “Crescent Capital”. The Adviser has entered into a resource sharing agreement with Crescent. Crescent will provide the Adviser with the resources necessary for the Adviser to fulfill its obligations under the Investment Advisory Agreement.

On January 5, 2021, Sun Life acquired a majority interest in Crescent. Consummation of the Sun Life Transaction resulted in a change of control of Crescent. There were no changes to the Company’s investment objective, strategies and process or to the Crescent team responsible for the investment operations of the Company as a result of the Sun Life Transaction. As of December 31, 2021, Sun Life owned 2.15% of the Company’s outstanding common stock. Sun Life is the sole lender of the Company’s 2023 Unsecured Notes and a $10,000 participating lender in the Company’s 2026 Unsecured Notes, both described further in Note 6.

In connection with the November 18, 2021 common equity offering totaling $58,018, the Advisor provided transaction support of $5,386, which is reflective of the difference between the actual public offering price and the net proceeds per share received by the Company in this offering and represents payments to the underwriters. In addition, the Advisor paid the sales load payable to the underwriters totaling $2,105. The Company is not obligated to repay the supplemental payment and sales load paid by the Advisor.

Investments in and affiliated and controlled companies

Under the 1940 Act, the Company is required to separately identify non-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’s non-controlled, non-affiliated; non- controlled, affiliated; and controlled affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedule of Investments and the summary tables below.

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The Company’s investments in non-controlled affiliates for the year ended December 31, 2021 were as follows (in thousands):

	Fair Value as of December 31, 2020		Gross Additions (2)		Gross Reductions (3)			Net Realized Gains/ (Losses)		Change in Unrealized Gains/ (Losses)			Fair Value as of December 31, 2021		Dividend, Interest, PIK and Other Income
Non-Controlled Affiliates
ASP MCS Acquisition	$	1,793	$	3	$	(3	)	$	—	$	(177	)	$	1,616	$	25
Battery Solutions, Inc.		3,565		567		—			—		2,899			7,031		230
Conisus, LLC		22,865		1,026		(38,628	)		27,440		(12,703	)		—		1,026
GACP II LP(1)		16,154		—		(3,332	)		—		(203	)		12,619		1,373
Slickdeals Holdings, LLC		16,010		88		(381	)		72		58			15,847		1,127
Southern Technical Institute, Inc.		7,253		—		—			—		433			7,686		1,041
Vivid Seats Ltd.		3,714		—		(3,190	)		1,298		(900	)		922		—
WhiteHawk III Onshore Fund L.P.		—		5,851		—			—		129			5,980		—
Total Non-Controlled Affiliates	$	71,354	$	7,535	$	(45,534	)	$	28,810	$	(10,464	)	$	51,701	$	4,822

The Company’s investments in non-controlled affiliates for the year ended December 31, 2020 were as follows (in thousands):

	Fair Value as of December 31, 2019		Gross Additions (2)		Gross Reductions (3)				Net Realized Gains/ (Losses)				Change in Unrealized Gains/ (Losses)			Fair Value as of December 31, 2020		Dividend, Interest, PIK and Other Income
Non-Controlled Affiliates
APC Auto Technology Intermediate, LLC	$	928	$	—	$		—		$		(1,847	)	$	919		$	—	$	—
ASP MCS Acquisition		—		5,224			(13.00	)			(3,788	)		370			1,793		76
Battery Solutions, Inc.		—		4,917		—				—				(1,352	)		3,565		178
Conisus, LLC		—		10,160		—				—				12,705			22,865		1433
GACP II LP(1)		18,564		2,465			(4,305	)			—			(570	)		16,154		2,407
Slickdeals Holdings, LLC		15,933		82			(348	)			50			293			16,010		1,189
Southern Technical Institute, Inc.		—		—			(1,271	)			1,271			7,253			7,253		—
Vivid Seats Ltd.		3,646		—		—				—				68			3,714		—
Total Non-Controlled Affiliates	$	39,071	$	22,848	$		(5,937	)	$		(4,314	)	$	19,686		$	71,354	$	5,283

(1) Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. The Company’s investment in GACP II LP and the related income generated by it were reclassified from non-controlled non-affiliated to non-controlled affiliated investment for the prior periods presented in the consolidated financial statements.

(2) Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

(3) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

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The Company’s investments in controlled affiliates for the year ended December 31, 2021 were as follows (in thousands):

	Fair Value as of December 31, 2020		Gross Additions (2)		Gross Reductions (3)		Net Realized Gains/ (Losses)		Change in Unrealized Gains/ (Losses)			Fair Value as of December 31, 2021		Dividend, Interest, PIK and Other Income
Controlled Affiliates
CBDC Senior Loan Fund LLC(1)	$	38,735	$	—	$	—	$	—	$	625		$	39,360	$	3,200
Envocore LLC		—		13,431		—		—		(23	)		13,408		2
Total Controlled Affiliates	$	38,735	$	13,431	$	—	$	—	$	602		$	52,768	$	3,202

The Company’s investments in controlled affiliates for the year ended December 31, 2020 were as follows (in thousands):

	Fair Value as of December 31, 2019		Gross Additions (2)		Gross Reductions (3)			Net Realized Gains/ (Losses)		Change in Unrealized Gains/ (Losses)			Fair Value as of December 31, 2020		Dividend, Interest, PIK and Other Income
Controlled Affiliates
CBDC Senior Loan Fund LLC(1)	$	34,442	$	7,000	$	(1,000	)	$	—	$	(1,707	)	$	38,735	$	2,200

(1) Together with Masterland Enterprise Holdings, Ltd. (“Masterland”, and collectively with the Company, the “Members”), the Company invests through the Senior Loan Fund. The Senior Loan Fund is not an extension of the Company’s investment operations given shared power/voting rights exist with Masterland, Additionally, the Company’s investment strategy focuses on middle market lending in senior secured first lien, second lien and equity investments, while the Senior Loan Fund focuses on senior secured broadly syndicated loans. Although the Company owns more than 25% of the voting securities of the Senior Loan Fund, the Company does not have control over the Senior Loan Fund (other than for purposes of the Investment Company Act). See Note 4 “Investments” for further detail.

(2) Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

(3) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

Note 4. Investments

The information in the following tables is presented on an aggregate portfolio basis, without regard to whether they are non-controlled, non-affiliated, non-controlled, affiliated or controlled affiliated, investments.

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Investments at fair value consisted of the following (in thousands):

	As of December 31,2021							As of December 31,2020
Investment Type	Cost		Fair Value		Unrealized Appreciation/ (Depreciation)			Cost		Fair Value		Unrealized Appreciation/ (Depreciation)
Senior Secured First Lien	$	335,207	$	329,795	$	(5,412	)	$	380,909	$	373,633	$	(7,276	)
Unitranche First Lien		719,594		731,017		11,423			408,177		413,543		5,366
Unitranche First Lien—Last Out		15,698		13,723		(1,975	)		15,668		14,917		(751	)
Senior Secured Second Lien		72,413		72,723		310			105,056		104,656		(400	)
Unsecured Debt		5,577		5,620		43			3,112		3,032		(80	)
Equity & Other		37,611		59,528		21,917			41,974		69,331		27,357
LLC/LP Equity Interests		58,746		57,960		(786	)		56,228		54,889		(1,339	)
Total investments	$	1,244,846	$	1,270,366	$	25,520		$	1,011,124	$	1,034,001	$	22,877

The industry composition of investments at fair value is as follows (in thousands):

Industry	Fair Value as of December 31, 2021		Percentage of Fair Value			Fair Value as of December 31, 2020		Percentage of Fair Value
Health Care Equipment & Services	$	380,046		29.93	%	$	269,614		26.08	%
Software & Services		246,352		19.39			134,374		13.00
Commercial & Professional Services		202,311		15.93			207,151		20.03
Consumer Services		94,292		7.42			123,704		11.96
Diversified Financials		57,960		4.56			65,128		6.30
Insurance		54,439		4.29			37,154		3.59
Pharmaceuticals, Biotechnology & Life Sciences		53,005		4.17			38,018		3.68
Automobiles & Components		37,835		2.98			23,449		2.27
Capital Goods		37,328		2.94			18,643		1.80
Retailing		34,275		2.70			23,537		2.28
Consumer Durables & Apparel		18,522		1.46			3,223		0.31
Energy		15,155		1.19			18,776		1.82
Food, Beverage & Tobacco		9,838		0.77			4,666		0.45
Transportation		9,297		0.73			7,257		0.70
Materials		6,912		0.54			6,912		0.67
Telecommunication Services		4,480		0.35			4,062		0.39
Food & Staples Retailing		4,209		0.33			18,220		1.76
Household & Personal Products		4,110		0.32			4,253		0.41
Technology, Hardware & Equipment		—		—			2,995		0.29
Media & Entertainment		—		—			22,865		2.21
Total investments	$	1,270,366		100.00	%	$	1,034,001		100.00	%

The geographic composition of investments at fair value is as follows (in thousands):

Geographic Region	Fair Value as of December 31, 2021		Percentage of Fair Value			Fair Value as of December 31, 2020		Percentage of Fair Value
United States	$	1,159,851		91.29	%	$	971,838		93.99	%
United Kingdom		51,416		4.05			23,960		2.32
Canada		34,114		2.69			15,208		1.47
Belgium		14,998		1.18			14,312		1.38
Netherlands		9,987		0.79			8,683		0.84
Total investments	$	1,270,366		100.00	%	$	1,034,001		100.00	%

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Note 5. Fair Value of Financial Instruments

Investments

The following table presents fair value measurements of investments as of December 31, 2021 (in thousands):

Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total
Senior Secured First Lien	$	—	$	60,944	$	268,851	$	329,795
Unitranche First Lien		—		19,721		711,296		731,017
Unitranche First Lien – Last Out		—		—		13,723		13,723
Senior Secured Second Lien		—		25,139		47,584		72,723
Unsecured Debt		—		—		5,620		5,620
Equity & Other		—		922		58,606		59,528
Subtotal	$	—	$	106,726	$	1,105,680	$	1,212,406
Investments Measured at NAV (1)								57,960
Total Investments							$	1,270,366
Foreign Currency Forward Contracts	$	—	$	1,484	$	—	$	1,484

The following table presents fair value measurements of investments as of December 31, 2020 (in thousands):

Fair Value Hierarchy
	Level 1		Level 2			Level 3		Total
Senior Secured First Lien	$	—	$	33,735		$	339,898	$	373,633
Unitranche First Lien		—		—			413,543		413,543
Unitranche First Lien – Last Out		—		—			14,917		14,917
Senior Secured Second Lien		—		—			104,656		104,656
Unsecured Debt		—		—			3,032		3,032
Equity & Other		—		1,500			67,831		69,331
Subtotal	$	—	$	35,235		$	943,877	$	979,112
Investments Measured at NAV (1)									54,889
Total Investments								$	1,034,001
Foreign Currency Forward Contracts	$	—	$	(632	)	$	—	$	(632	)

(1) In accordance with ASC 820-10, certain investments that are measured using the net asset value per shares (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.

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The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the year ended December 31, 2021, based off of the fair value hierarchy at December 31, 2021 (in thousands):

	Senior Secured First Lien			Unitranche First Lien			Unitranche First - Last Out			Senior Secured Second Lien			Unsecured Debt			Equity & Other			Total
Balance as of January 1, 2021	$	339,898		$	413,543		$	14,917		$	104,656		$	3,032		$	67,831		$	943,877
Amortized discounts/premiums		6,176			3,632			31			1,131			16			3			10,989
Paid in-kind interest		1,533			—			—			—			589			1,026			3,148
Net realized gain (loss)		(3,674	)		299			—			1			(104	)		36,572			33,094
Net change in unrealized appreciation (depreciation)		(346	)		6,052			(1,225	)		(594	)		123			(5,566	)		(1,556	)
Purchases		136,438			419,097			—			10,274			2,307			13,390			581,506
Sales/return of capital/principal repayments/paydowns		(187,416	)		(113,180	)		—			(55,987	)		(343	)		(55,351	)		(412,277	)
Transfers in		—			—			—			—			—			1,501			1,501
Transfers out		(23,758	)		(18,147	)		—			(11,897	)		—			(800	)		(54,602	)
Balance as of December 31, 2021	$	268,851		$	711,296		$	13,723		$	47,584		$	5,620		$	58,606		$	1,105,680
Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2021	$	829		$	6,735		$	(1,226	)	$	(490	)	$	125		$	10,963		$	16,936

During the year ended December 31, 2021, the Company recorded $54,602 in transfers from Level 3 to Level 2 due to an increase in observable inputs in market data and $1,501 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 year ended December 31, 2020, based off of the fair value hierarchy at December 31, 2020 (in thousands):

	Senior Secured First Lien			Unitranche First Lien			Unitranche First - Last Out			Senior Secured Second Lien			Unsecured Debt			Equity & Other			Total
Balance as of January 1, 2021	$	268,193		$	218,416		$	16,044		$	49,569		$	7,414		$	21,432		$	581,068
Amortized discounts/premiums		1,776			1,669			35			218			119			10			3,827
Paid in-kind interest		1,399			352			—			267			175			1,432			3,625
Net realized gain (loss)		(334	)		—			—			(9,002	)		—			(667	)		(10,003	)
Net change in unrealized appreciation (depreciation)		(3,670	)		833			(949	)		5,855			(114	)		23,467			25,422
Purchases		155,047			239,785			—			62,622			1,981			22,376			481,811
Sales/return of capital/principal repayments/paydowns		(89,512	)		(47,512	)		(213	)		(4,873	)		(6,543	)		(219	)		(148,872	)
Transfers in		6,999			—			—			—			—			—			6,999
Transfers out		—			—			—			—			—			—			—
Balance as of December 31, 2021	$	339,898		$	413,543		$	14,917		$	104,656		$	3,032		$	67,831		$	943,877
Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2021	$	(3,286	)	$	(2,116	)	$	(949	)	$	(253	)	$	46		$	2,518		$	(4,040	)

During the year ended December 31, 2020, the Company recorded $0 in transfers from Level 3 to Level 2 and $6,999 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 December 31, 2021 and 2020. 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

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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.

Security Type	Fair Value as of December 31, 2021 (in thousands)		Valuation Technique		Unobservable Input		Range (Weighted Average)
Senior Secured First Lien	$	227,225		Discounted Cash Flows		Discount Rate		5.5%-   23.0%(8.0%)
		5,509		Enterprise Value		Comparable EBITDA Multiple		10.3x-   10.3x(10.3x)
		36,117		Broker Quoted		Broker Quote		N/A
	$	268,851
Unitranche First Lien	$	665,759		Discounted Cash Flows		Discount Rate		5.1%-   10.4%(7.1%)
		277		Collateral Analysis		Recovery Rate		100.0%
		45,260		Broker Quoted		Broker Quote		N/A
	$	711,296
Unitranche First Lien—Last Out	$	7,862		Discounted Cash Flows		Discount Rate		6.5%-   6.5%(6.5%)
		5,861		Collateral Analysis		Recovery Rate		72.6%
	$	13,723
Senior Secured Second Lien	$	47,295		Discounted Cash Flows		Discount Rate		8.0%-   21.7%(10.5%)
		289		Broker Quoted		Broker Quote		N/A
	$	47,584
Unsecured Debt	$	5,620		Discounted Cash Flows		Discount Rate		11.5%-   16.0%(13.4%)
Equity & Other	$	57,279		Enterprise Value		Comparable EBITDA Multiple		6.3x-   32.4x(9.8x)
		1,327		Broker Quoted		Broker Quote		N/A
	$	58,606
Total	$	1,105,680

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	Fair value as of December 31, 2020 (in thousands)		Valuation Techniques		Unobservable Input		Range (Weighted Average)
Senior Secured First Lien	$	301,956		Discounted Cash Flows		Discount Rate		4.7%-25.2% (7.3%)
		21,189		Enterprise Value		Comparable EBITDA Multiple		3.7x-16.6x (7.9x)
		16,753		Broker Quoted		Broker Quote		N/A
	$	339,898
Unitranche First Lien	$	392,281		Discounted Cash Flows		Discount Rate		4.8%-15.0%(7.0%)
		5,673		Enterprise Value		Comparable EBITDA Multiple		5.9x-5.9x (5.9x)
		2,668		Collateral Analysis		Recovery Rate		100.0%
		12,921		Broker Quoted		Broker Quote		N/A
	$	413,543
Unitranche First Lien - Last Out	$	8,454		Discounted Cash Flows		Discount Rate		6.2%-6.2%(6.2%)
		6,463		Collateral Analysis		Recovery Rate		80.0%
	$	14,917
Senior Secured Second Lien	$	104,362		Discounted Cash Flows		Discount Rate		7.5%-14.0%(9.5%)
		294		Broker Quoted		Broker Quote		N/A
	$	104,656
Unsecured Debt	$	3,032		Discounted Cash Flows		Discount Rate		12.5%-21.4% (16.6%)
Equity & Other	$	66,002		Enterprise Value		Comparable EBITDA Multiple		1.5x-25.9x (10.2x)
		1,829		Broker Quoted		Broker Quote		N/A
	$	67,831
Total	$	943,877

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 December 31, 2021 and 2020. 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. Increases and decreases in the discount rate would result in a decrease and increase in the fair value, respectively. 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 and decreases in market EBITDA multiples would result in an increase or decrease in the fair value, respectively. The recovery rate represents the extent to which proceeds can be recovered. An increase/decrease in the recovery rate would result in an increase/decrease, respectively, in the fair value.

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Note 6. Debt

Debt consisted of the following (in thousands):

	As of December 31, 2021
	Aggregate Principal Amount Committed		Drawn Amount		Amount Available (1)		Carrying Value(2)		Weighted Average Debt Outstanding		Weighted Average Interest Rate
SPV Asset Facility	$	350,000	$	249,500	$	100,500	$	249,500	$	269,805		2.53	%
SMBC Corporate Revolving Facility		300,000		203,437		96,563		203,437		25,033		2.39	%
2023 Unsecured Notes		50,000		50,000		—		50,000		50,000		6.50	%
2026 Unsecured Notes		135,000		135,000		—		135,000		99,685		4.21	%
Ally Corporate Revolving Facility		—		—		—		—		83,147		—	%
InterNotes®		—		—		—		—		3,005		—	%
Total Debt	$	835,000	$	637,937	$	197,063	$	637,937	$	530,675		3.15	%
	As of December 31, 2020
	Aggregate Principal Amount Committed		Drawn Amount		Amount Available (1)		Carrying Value(2)		Weighted Average Debt Outstanding		Weighted Average Interest Rate
SPV Asset Facility	$	350,000	$	260,210	$	89,790	$	260,210	$	235,263		2.63	%
Corporate Revolving Facility		200,000		149,904		50,096		149,904		150,378		2.93	%
2023 Unsecured Notes		50,000		50,000		—		50,000		15,027		6.49	%
InterNotes®		16,418		16,418		—		16,418		20,398		6.40	%
Total Debt	$	616,418	$	476,532	$	139,886	$	476,532	$	421,066		3.26	%

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

(2) The amount presented excludes netting of deferred financing costs.

As of December 31, 2021 and 2020, the carrying amount of the Company’s outstanding debt approximated fair value. The fair values of the Company’s debt are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s debt is estimated based upon market interest rates and entities with similar credit risk. As of December 31, 2021 and 2020, the debt would be deemed to be Level 3 of the fair value hierarchy.

As of December 31, 2021 and 2020, 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 (“CCAP SPV”), a wholly owned subsidiary of CCAP, entered into a loan and security agreement, as amended from time to time (the “SPV Asset Facility”), with the Company as the collateral manager, seller and equityholder, CCAP 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. CCAP SPV is consolidated into the Company’s financial statements and no gain or loss is recognized from transfer of assets to and from CCAP SPV.

The maximum commitment amount under the SPV Asset Facility is $350,000 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) June 22, 2026 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 LIBOR plus a margin with no LIBOR floor.

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The margin is between 1.65% and 2.10% as determined by the proportion of liquid and illiquid loans pledged to the SPV Asset Facility. The Company generally pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The unused facility fee rate may vary based on the utilization. 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. The facility size is subject to availability under the borrowing base, which is based on the amount of CCAP SPV’s assets from time to time, and satisfaction of certain conditions, including certain concentration limits.

Costs incurred in connection with obtaining the SPV Asset Facility were recorded as deferred financing costs and are being amortized over the life of the SPV Asset Facility on an effective yield basis. As of December 31, 2021 and 2020, deferred financing costs related to the SPV Asset Facility were $2,718 and $2,540, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities.

SMBC Corporate Revolving Facility

On October 27, 2021, the Company entered into a senior secured revolving credit agreement with Sumitomo Mitsui Banking Corporation, as Administrative Agent, Collateral Agent and Lender (the “SMBC Corporate Revolving Facility”). The maximum principal amount of the SMBC Corporate Revolving Facility is $300,000, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at LIBOR plus 1.875% or 2.000%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no LIBOR floor. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on October 27, 2026

Costs incurred in connection with obtaining the SMBC Corporate Revolving Facility were recorded as deferred financing costs and are being amortized over the life of the SMBC Corporate Revolving Facility on an effective yield basis. As of December 31, 2021 and 2020, deferred financing costs related to the SMBC Corporate Revolving Facility were $2,569 and $0, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities.

Ally Corporate Revolving Facility

On August 20, 2019, the Company entered into the “Ally Corporate Revolving Facility” with Ally Bank, as Administrative Agent and Arranger. The maximum principal amount of the Ally Corporate Revolving Facility was $200 million, subject to availability under the borrowing base. Borrowings under the Ally Corporate Revolving Facility bore interest at LIBOR plus a 2.35% margin with no LIBOR floor.

Costs incurred in connection with obtaining the Ally Corporate Revolving Facility have been recorded as deferred financing costs and are being amortized over the life of the Ally Corporate Revolving Facility on an effective yield basis. As of December 31, 2020, deferred financing costs related to the Ally Corporate Revolving Facility were $1,360 and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities.

We terminated the Ally Corporate Revolving Facility and accelerated the amortization of the remaining unamortized deferred financing costs totaling $1,053 concurrent with the closing of the SMBC Corporate Revolving Facility, on October 27, 2021.

2023 Unsecured Notes

On July 30, 2020, the Company completed a private offering of $50,000 aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “2023 Unsecured Notes”). The 2023 Unsecured Notes were issued in two $25,000 issuances on July 30, 2020 and October 28, 2020.

The 2023 Unsecured Notes will mature on July 30, 2023 and may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the 2023 Unsecured Notes is due and payable semiannually in arrears on January 30^th and July 30^th of each year. As of December 31, 2021, the Company was in compliance with the terms of the note purchase agreement governing the 2023 Unsecured Notes.

Costs incurred in connection with issuing the 2023 Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the 2023 Unsecured Notes on an effective yield basis. As of December 31, 2021 and 2020, deferred financing costs related to the 2023 Unsecured Notes were $429 and $700, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities.

2026 Unsecured Notes

On February 17, 2021, the Company completed a private offering of $135,000 aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the “2026 Unsecured Notes”). The initial issuance of $50,000 of 2026 Unsecured Notes closed February 17, 2021. The issuance of the remaining $85,000 of 2026 Unsecured Notes closed on May 5, 2021.

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The 2026 Unsecured Notes will mature on February 17, 2026 and may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the 2026 Unsecured Notes is due and payable semiannually in arrears on February 17^th and August 17^th of each year. As of December 31, 2021, the Company was in compliance with the terms of the note purchase agreement governing the 2026 Unsecured Notes.

Costs incurred in connection with issuing the 2026 Unsecured Notes were recorded as deferred financing costs and are being amortized over the life of the 2026 Unsecured Notes on an effective yield basis. As of December 31, 2021 and 2020, deferred financing costs related to the 2026 Unsecured Notes were $1,181 and $0, respectively, and were netted against debt outstanding on the Consolidated Statements of Assets and Liabilities.

InterNotes^®

On January 31, 2020, in connection with the Alcentra Acquisition, the Company assumed direct unsecured fixed interest rate obligations or “InterNotes^®”. The InterNotes^® bore interest at fixed interest rates ranging between 6.25% and 6.75% and offered a variety of maturities ranging between February 15, 2021 and April 15, 2022. The Company redeemed or paid down the remaining $16,418 of InterNotes^® during the first quarter of 2021.

Summary of Interest and Credit Facility Expenses

The borrowing expenses incurred by the SPV Asset Facility, SMBC Corporate Revolving Facility, Ally Corporate Revolving Facility, 2023 Unsecured Notes, 2026 Unsecured Notes, and InterNotes^® were as follows (in thousands):

	For the years ended December 31,
	2021		2020		2019
Borrowing interest expense	$	16,166	$	13,417	$	12,068
Unused facility fees		1,046		740		254
Amortization of financing costs		2,554		1,328		1,040
Total interest and credit facility expenses	$	19,766	$	15,485	$	13,362
Weighted average outstanding balance	$	530,675	$	421,066	$	275,905

Note 7. Derivatives

The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.

In order to better define its contractual rights and to secure rights that will help mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Company and cash collateral received from the counterparty, if any, is included under restricted cash and cash equivalents on the Consolidated Statement of Assets and Liabilities. As of December 31, 2021 and 2020, $210 and $0, respectively, have been pledged to cover obligations of the Company. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties. All of the forward contracts qualify as Level 2 financial instruments.

During the years ended December 31, 2021 and 2020 the Company’s average USD notional exposure to foreign currency forward contracts was $61,487 and $35,788 respectively.

The following table sets forth the Company’s net exposure to foreign currency forward contracts that are subject to ISDA Master Agreements or similar agreements.

As of December 31, 2021 (in thousands):

Counterparty	Gross Amount of Assets on the Consolidated Statements of Assets and Liabilities		Gross Amount of (Liabilities) on the Consolidated Statements of Assets and Liabilities			Net Amount of Assets or (Liabilities) Presented on the Consolidated Statements of Assets and Liabilities		Collateral (Received) Pledged (1)		Net Amounts (2)
Wells Fargo Bank, N.A.	$	2,115	$	(631	)	$	1,484	$	210	$	—

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As of December 31, 2020 (in thousands):

Counterparty	Gross Amount of Assets on the Consolidated Statements of Assets and Liabilities		Gross Amount of (Liabilities) on the Consolidated Statements of Assets and Liabilities			Net Amount of Assets or (Liabilities) Presented on the Consolidated Statements of Assets and Liabilities			Collateral (Received) Pledged (1)		Net Amounts (2)
Wells Fargo Bank, N.A.	$	264	$	(896	)	$	(632	)	$	—	$	(632	)

(1) Amount excludes excess cash collateral paid.

(2) Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual setoff rights under the agreement. Net amount excludes any over-collateralized amounts.

The effect of transactions in derivative instruments to the Consolidated Statements of Operations was as follows (in thousands):

	For the years ended December 31
	2021			2020			2019
Net realized gain (loss) on foreign currency forward contracts	$	(193	)	$	—		$	—
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts		2,116			(1,324	)		675
Total net realized and unrealized gains (losses) on foreign currency forward contracts	$	1,923		$	(1,324	)	$	675

Note 8. Commitments, Contingencies and Indemnifications

The Company’s investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on the Company’s Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that the Company holds. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. As of December 31, 2021 and 2020, the Company had aggregated unfunded commitments totaling $195,622 and $80,837, respectively, including foreign denominated commitments converted to USD at the balance sheet date, respectively, under loan and financing agreements.

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The Company has the following unfunded commitments to portfolio companies (in thousands):

		As of December 31,2021				As of December 31,2020
Company	Investment Type	Commitment Expiration Date (1)		Unfunded Commitment (2)		Commitment Expiration Date (1)		Unfunded Commitment (2)
Abode Healthcare, Inc.	Revolver		—	$	—		8/25/2025	$	1,150
ACI Group Holdings, Inc. (6)	Delayed Draw Term Loan		8/2/2023		2,564		—		—
ACI Group Holdings, Inc. (4)	Revolver		8/2/2027		738		—		—
Affinitiv, Inc. (4)	Revolver		8/26/2024		567		8/26/2024		567
Ameda, Inc. (4)	Revolver		9/29/2022		113		9/29/2022		113
Anne Arundel Dermatology Management, LLC	Revolver		—		—		10/16/2022		1,159
Anne Arundel Dermatology Management, LLC	Delayed Draw Term Loan		—		—		10/16/2025		550
Apps Associates LLC (6)	Delayed Draw Term Loan		7/2/2023		1,800		—		—
Apps Associates LLC (4)	Revolver		7/2/2027		800		—		—
Arrow Management Acquisition, LLC  (6)	Delayed Draw Term Loan		10/14/2023		2,028		—		—
Arrow Management Acquisition, LLC (4)	Revolver		10/14/2027		700		—		—
Auto-Vehicle Parts, LLC (4)	Revolver		1/3/2023		600		1/3/2023		600
Avaap USA LLC	Revolver		—		—		3/22/2023		650
Banker’s Toolbox, Inc. (6)	Delayed Draw Term Loan		7/27/2023		6,711		—		—
Banker’s Toolbox, Inc. (4)	Revolver		7/27/2027		2,406		—		—
Belay Inc. (4)	Revolver		11/15/2025		650		—		—
Benesys Inc. (4)	Revolver		10/5/2024		150		10/5/2024		150
BioAgilytix (6)	Delayed Draw Term Loan		12/21/2023		2,543		—		—
C-4 Analytics, LLC (4)	Revolver		8/22/2023		600		8/22/2023		600
CAT Buyer, LLC (4)	Revolver		4/11/2024		550		4/11/2024		550
Centria Subsidiary Holdings, LLC (4)	Revolver		12/9/2025		1,974		12/9/2025		1,816
Claritas, LLC (4)	Revolver		12/21/2023		278		12/21/2023		188
Colibri Group LLC	Revolver		—		—		5/1/2025		1,000
Consolidated Label Co., LLC (4)	Revolver		7/15/2026		650		7/15/2026		650
Continental Battery Company	Delayed Draw Term Loan		—		—		12/14/2022		567
CRA MSO, LLC (4)	Revolver		12/17/2023		140		12/17/2023		120
Crusoe Bidco Limited (9)	Delayed Draw Term Loan		12/10/2022		532		12/5/2020		538
Crusoe Bidco Limited (9)	Delayed Draw Term Loan		12/10/2022		167		12/10/2025		169
Effective School Solutions LLC (4)	Revolver		11/30/2027		1,450		—		—
Effective School Solutions LLC (6)	Delayed Draw Term Loan		11/30/2023		2,200		—		—
EiKo Global, LLC	Revolver		—		—		6/1/2023		750
Empire Auto Parts, LLC	Revolver		—		—		9/5/2023		400
EMS Buyer, Inc. (4)	Revolver		11/23/2027		550		—		—
Envocore Holding, LLC (4)	Revolver		12/31/2025		2,169		—		—
Eshipping (6)	Delayed Draw Term Loan		11/5/2023		1,850		—		—
Eshipping (4)	Revolver		11/5/2027		953		—		—
Everlast Parent Inc. (4)	Revolver		10/30/2026		1,611		10/30/2022		3,412
Everlast Parent Inc.	Delayed Draw Term Loan		—		—		10/30/2026		1,611
Evolution BuyerCo, Inc. (4)	Revolver		4/30/2027		729		—		—
Evolution BuyerCo, Inc. (6)	Delayed Draw Term Loan		4/30/2023		1,072		—		—
FS Whitewater Borrower, LLC (6)	Delayed Draw Term Loan		12/21/2022		1,724		—		—
FS Whitewater Borrower, LLC (6)	Delayed Draw Term Loan		12/21/2023		435		—		—
FS Whitewater Borrower, LLC (4)	Revolver		12/21/2027		690		—		—
Galway Borrower, LLC (4)	Delayed Draw Term Loan		9/30/2023		1,945		—		—
Galway Borrower, LLC (4)	Revolver		9/30/2027		926		—		—
GrapeTree Medical Staffing, LLC (4)	Revolver		5/29/2024		600		—		—
GrapeTree Medical Staffing, LLC (6)	Delayed Draw Term Loan		3/31/2022		2,750		—		—
GH Parent Holdings Inc. (4)	Revolver		5/4/2027		1,875		—		—
GH Parent Holdings Inc.	Delayed Draw Term Loan		5/4/2023		5,542		—		—
Granicus, Inc. (4)	Revolver		1/29/2027		805		—		—
Granicus, Inc. (6)	Delayed Draw Term Loan		4/23/2023		3,135		—		—
GrapeTree Medical Staffing, LLC	Revolver		—		—		10/19/2022		450
Great Lakes Dental Partners, LLC (6)	Delayed Draw Term Loan		6/23/2023		850		—		—
Great Lakes Dental Partners, LLC (4)	Revolver		6/23/2026		190		—		—
HCOS Group Intermediate III LLC (4)	Revolver		9/30/2026		1,150		9/30/2026		900
Hepaco, LLC (4)	Revolver		8/18/2024		152		8/18/2023		92
Hepaco, LLC	Delayed Draw Term Loan		—		—		8/18/2024		112
Hercules Borrower LLC (4)	Revolver		12/15/2026		2,222		12/15/2026		2,222

137

		As of December 31,2021				As of December 31,2020
Company	Investment Type	Commitment Expiration Date (1)		Unfunded Commitment (2)		Commitment Expiration Date (1)		Unfunded Commitment (2)
Hercules Borrower LLC (6)	Delayed Draw Term Loan		9/10/2023		2,252		—		—
HGH Purchaser, Inc. (6)	Delayed Draw Term Loan		2/10/2023		557		—		—
HGH Purchaser, Inc.	Delayed Draw Term Loan		—		—		11/1/2021		557
HGH Purchaser, Inc. (4)	Revolver		11/3/2025		733		11/3/2025		912
Homecare Partners Management, LLC (4)	Revolver		5/25/2027		807		—		—
Hospice Care Buyer, Inc. (4)	Revolver		12/9/2026		624		6/9/2021		2,679
Hospice Care Buyer, Inc.	Delayed Draw Term Loan		—		—		12/9/2026		1,386
Hospice Care Buyer, Inc.	Term Loan		—		—		12/9/2026		1,668
Hsid Acquisition, LLC (4)	Revolver		1/31/2026		750		1/31/2026		750
Integrity Marketing Acquisition, LLC (4)	Revolver		8/27/2025		1,409		8/27/2025		1,409
ISS Compressors Industries, Inc. (4)	Revolver		2/5/2026		833		2/5/2026		833
IvyRehab Intermediate II, LLC (4)	Revolver		12/4/2024		370		12/4/2022		1,450
IvyRehab Intermediate II, LLC	Delayed Draw Term Loan		—		—		12/4/2024		500
IvyRehab Intermediate II, LLC (6)	Delayed Draw Term Loan		9/13/2023		1,351		—		—
Jordan Bidco, Ltd.	Delayed Draw Term Loan		8/31/2024		4,132		—		—
Jordan Bidco, Ltd. (8)	Revolver		2/28/2028		964		—		—
JTM Foods LLC (4)	Revolver		5/14/2027		480		—		—
JTM Foods LLC (4)	Delayed Draw Term Loan		11/14/2022		750		—		—
Kestrel Parent, LLC (3)	Revolver		11/13/2023		871		11/13/2023		871
Learn-It Systems, LLC (4)	Revolver		3/18/2025		270		3/18/2022		1,456
Learn-It Systems, LLC (5)	Delayed Draw Term Loan		3/18/2022		42		3/18/2025		600
Learn-It Systems, LLC (5)	Delayed Draw Term Loan		5/4/2023		1,924		—		—
Lexipol (Ranger Buyer, Inc.) (4)	Revolver		11/18/2027		884		—		—
Lightspeed Buyer, Inc. (4)	Revolver		2/3/2026		770		8/3/2021		648
Lightspeed Buyer, Inc.	Delayed Draw Term Loan		—		—		2/3/2026		700
Lightspeed Buyer, Inc. (6)	Delayed Draw Term Loan		2/28/2023		5,100		—		—
Lion Cashmere Bidco Limited (7)	Revolver		2/23/2026		1,989		—		—
Lion Cashmere Bidco Limited (7)	Delayed Draw Term Loan		9/23/2024		3,137		—		—
List Partners, Inc. (4)	Revolver		1/5/2023		450		1/5/2023		450
Mann Lake Ltd.	Revolver		—		—		10/4/2024		60
MHS Acquisition Holdings, LLC (6)	Delayed Draw Term Loan		7/21/2023		95		—		—
MHS Acquisition Holdings, LLC (4)	Revolver		7/21/2027		150		—		—
MRI Software LLC	Delayed Draw Term Loan		—		—		2/10/2022		519
MRI Software LLC (4)	Revolver		2/10/2026		1,266		2/10/2026		1,184
MRI Software LLC	Delayed Draw Term Loan		—		—		2/10/2026		1,266
New Era Technology, Inc. (4)	Revolver		10/31/2026		152		—		—
New Era Technology, Inc. (6)	Delayed Draw Term Loan		10/31/2022		673		—		—
Nexant Volt MergerSub, Inc. (4)	Revolver		5/11/2027		100		—		—
Nurture Landscapes (10)	Delayed Draw Term Loan		6/2/2028		11,411		—		—
Odessa Technologies, Inc. (6)	Delayed Draw Term Loan		10/19/2023		1,786		—		—
Odessa Technologies, Inc. (4)	Revolver		10/19/2027		2,500		—		—
Omni Ophthalmic Management Consultants, LLC (4)	Revolver		5/31/2023		510		—		—
Omni Ophthalmic Management Consultants, LLC	Delayed Draw Term Loan		—		—		2/28/2021		623
Ontario Systems, LLC	Delayed Draw Term Loan		—		—		9/5/2021		1,100
Ontario Systems, LLC (4)	Revolver		8/30/2025		500		8/30/2025		300
Ontario Systems, LLC (6)	Delayed Draw Term Loan		8/19/2023		213		—		—
Painters Supply & Equipment Company (6)	Delayed Draw Term Loan		8/10/2023		900		—		—
Painters Supply & Equipment Company (4)	Revolver		8/10/2027		408		—		—
Patriot Acquisition Topco S.A.R.L (4)	Revolver		1/29/2026		1,770		—		—
Patriot Growth Insurance Services, LLC (5)	Delayed Draw Term Loan		10/14/2023		2,594		—		—
Patriot Growth Insurance Services, LLC (4)	Revolver		10/14/2028		660		—		—
PharComp Parent B.V.	Delayed Draw Term Loan		—		—		2/20/2026		2,056
Pharmalogics Recruiting, LLC (6)	Delayed Draw Term Loan		9/27/2023		4,644		—		—

138

		As of December 31,2021				As of December 31,2020
Company	Investment Type	Commitment Expiration Date (1)		Unfunded Commitment (2)		Commitment Expiration Date (1)		Unfunded Commitment (2)
Pilot Air Freight, LLC (6)	Revolver		7/25/2024		100		7/25/2024		100
Pinnacle Treatment Centers, Inc. (6)	Delayed Draw Term Loan		1/17/2022		457		1/17/2022		457
Pinnacle Treatment Centers, Inc. (4)	Revolver		12/31/2022		571		12/31/2022		571
Potter Electric Signal Company	Delayed Draw Term Loan		—		—		12/19/2021		1,123
Potter Electric Signal Company (4)	Revolver		12/19/2024		462		12/19/2024		550
Premier Dental Care Management, LLC (6)	Delayed Draw Term Loan		8/5/2023		3,784		—		—
Premier Dental Care Management, LLC (4)	Revolver		8/5/2027		1,266		—		—
Prism Bidco, Inc. (4)	Revolver		6/25/2026		833		6/25/2026		833
PromptCare Intermediate, LP (6)	Delayed Draw Term Loan		9/1/2023		3,486		—		—
PT Network, LLC (4)	Revolver		11/30/2023		280		11/30/2023		400
Pye-Barker Fire & Safety, LLC (6)	Delayed Draw Term Loan		11/26/2023		1,401		—		—
Pye-Barker Fire & Safety, LLC (4)	Revolver		11/26/2027		1,531		—		—
Receivable Solutions, Inc. (4)	Revolver		10/1/2024		300		10/1/2024		300
Right Networks, LLC	Revolver		—		—		11/4/2024		232
Ruffalo Noel Levitz, LLC (4)	Revolver		5/29/2022		300		5/29/2022		60
Safco Dental Supply, LLC (4)	Revolver		6/14/2025		600		6/14/2025		600
Saturn Borrower Inc (4)	Revolver		9/30/2026		605		9/30/2026		1,513
SavATree, LLC	Delayed Draw Term Loan		—		—		6/2/2020		122
SavATree, LLC	Revolver		—		—		6/2/2022		550
Seko Global Logistics Network, LLC (4)	Revolver		12/20/2026		1,300		—		—
Seniorlink Incorporated (4)	Revolver		7/17/2026		1,038		7/17/2026		1,037
Service Logic Acquisition, Inc. (11)	Delayed Draw Term Loan		10/30/2022		389		10/30/2022		2,432
Slickdeals Holdings, LLC (3)	Revolver		6/12/2023		727		6/12/2023		727
Smartronix, LLC (4)	Revolver		11/23/2027		3,290		—		—
Smile Brands, Inc.	Revolver		—		—		10/12/2023		300
Smile Doctors LLC	Revolver		—		—		10/6/2022		1,070
Smile Doctors LLC (6)	Delayed Draw Term Loan		12/23/2023		1,654		—		—
Smile Doctors LLC (4)	Revolver		12/23/2027		1,201		—		—
Southern HVAC Corporation	Revolver		—		—		10/30/2022		2,450
Southern HVAC Corporation	Delayed Draw Term Loan		—		—		10/30/2022		1,000
Spear Education (6)	Delayed Draw Term Loan		2/26/2022		3,125		2/3/2026		3,125
Stepping Stones Healthcare Services, LLC (6)	Delayed Draw Term Loan		12/30/2023		3,774		—		—
Stepping Stones Healthcare Services, LLC (6)	Delayed Draw Term Loan		12/30/2026		1,887		—		—
Sun Acquirer Corp. (6)	Delayed Draw Term Loan		9/8/2023		4,466		—		—
Sun Acquirer Corp. (4)	Revolver		9/8/2027		1,812		—		—
Teaching Strategies LLC	Revolver		—		—		5/14/2024		629
Teal Acquisition Co., Inc (4)	Revolver		9/22/2026		967		9/22/2026		1,642
Teal Acquisition Co., Inc (6)	Delayed Draw Term Loan		9/22/2026		1,642		9/22/2026		1,004
The Hilb Group, LLC (4)	Revolver		12/2/2025		340		12/2/2025		340
The Hilb Group, LLC	Delayed Draw Term Loan		—		—		12/15/2022		1,728
The Hilb Group, LLC (4)	Revolver		12/2/2025		143		12/2/2025		142
The Hilb Group, LLC (4)	Delayed Draw Term Loan		12/10/2023		4,413		—		—
The Hilb Group, LLC (4)	Revolver		12/2/2025		113		—		—
Transportation Insight, LLC (4)	Revolver		12/3/2024		750		12/3/2024		750
Tranzonic (4)	Revolver		3/27/2023		356		3/27/2023		110
Trinity Partners, LLC	Revolver		—		—		2/21/2023		450
Unifeye Vision Partners	Delayed Draw Term Loan		—		—		9/13/2021		2,237
Unifeye Vision Partners (4)	Revolver		9/13/2025		1,700		9/13/2025		1,247
Unifeye Vision Partners (5)	Delayed Draw Term Loan		9/7/2023		4,286		—		—
United Flow Technologies (6)	Delayed Draw Term Loan		10/29/2023		3,750		—		—
United Flow Technologies (4)	Revolver		10/29/2027		1,600		—		—
UP Acquisition Corp. (4)	Revolver		5/23/2024		807		5/23/2024		859
VetStrategy	Delayed Draw Term Loan		—		—		7/31/2027		347
VetStrategy	Delayed Draw Term Loan		—		—		7/31/2027		2,355
VetStrategy (6)	Delayed Draw Term Loan		1/31/2022		419		—		—
Vital Care Buyer, LLC (4)	Revolver		10/19/2025		2,222		10/19/2025		2,222

139

			As of December 31,2021				As of December 31,2020
Company	Investment Type		Commitment Expiration Date (1)		Unfunded Commitment (2)		Commitment Expiration Date (1)		Unfunded Commitment (2)
WhiteHawk III Onshore Fund L.P.		Partnership Interest		7/5/2024		4,208		—		—
Winxnet Holdings LLC (4)		Revolver		6/29/2023		400		6/29/2023		160
Winxnet Holdings LLC (4)		Revolver		6/29/2023		250		—		—
Total					$	195,622			$	80,837

⁽¹⁾ Commitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which may be shorter than its maturity.

⁽²⁾ Unfunded commitments denominated in currencies other than USD have been converted to USD using the applicable foreign currency exchange rate as of December 31, 2021 and 2020.

⁽³⁾  Investment pays 0.38% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁴⁾ Investment pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁵⁾ Investment pays 0.75% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁶⁾ Investment pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁷⁾ Investment pays 1.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁸⁾ Investment pays 1.80% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽⁹⁾ Investment pays 1.95% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽¹⁰⁾ Investment pays 2.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

⁽¹¹⁾ Investment pays 4.25% unfunded commitment fee on delayed draw term loan and/or revolving credit facilities.

Other Commitments and Contingencies

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 9. Stockholders’ Equity

The Company 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. To date, no shares of preferred stock have been issued.

Between June 26, 2015, commencement of operations, and January 31, 2020, the date of Alcentra Acquisition, the Company entered into subscription agreements (collectively, the “Subscription Agreements”) with investors, including Crescent, providing for the private placement of its common shares. Pursuant to the Subscription Agreements, between June 26, 2015 and January 31, 2020, the Company issued 23,127,335 common shares for aggregate proceeds of $456,297, of which $10,000 was from Crescent. Proceeds from the issuances were used to fund investing activities and for other general corporate purposes. Additionally, on January 31, 2020, the Company issued 5,203,016 shares in connection with the Alcentra Acquisition. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in a private offering were terminated.

During the year ended December��31, 2021 we issued 2,720,000 shares of our common stock for total proceeds of $58,018 in connection with the offering of common stock on November 18, 2021.

During the year ended December 31, 2020, we issued 30,128 shares of our common stock to investors in connection with our dividend reinvestment plan for proceeds of $589.

140

The following table summarizes the Company’s recent distributions declared:

Date Declared	Record Date	Payment Date	Amount Per Share
November 10, 2021	September 2, 2022	September 15, 2022	$	0.05
November 10, 2021	June 3, 2022	June 15, 2022	$	0.05
November 10, 2021	March 4, 2022	March 15, 2022	$	0.05
November 10, 2021	December 3, 2021	December 15, 2021	$	0.05
November 10, 2021	December 31, 2021	January 17, 2022	$	0.41
August 11, 2021	September 30, 2021	October 15, 2021	$	0.41
May 10, 2021	June 30, 2021	July 15, 2021	$	0.41
February 22, 2021	March 31, 2021	April 15, 2021	$	0.41
November 4, 2020	December 31, 2020	January 15, 2021	$	0.41
August 7, 2020	September 30, 2020	October 15, 2020	$	0.41
May 11, 2020	June 30, 2020	July 15, 2020	$	0.41
March 3, 2020	March 31, 2020	April 15, 2020	$	0.41
November 8, 2019	December 30, 2019	January 17, 2020	$	0.41
September 27, 2019	September 27, 2019	October 18, 2019	$	0.41
June 28, 2019	June 28, 2019	July 18, 2019	$	0.41
March 29, 2019	March 29, 2019	April 12, 2019	$	0.41

At December 31, 2021 and 2020, Crescent, Sun Life and other related parties owned 4.08% and 2.11%, respectively, of the outstanding common shares of the Company.

Note 10. Earnings Per Share

In accordance with the provisions of ASC 260 –Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders 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 December 31, 2021 and 2020, 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 (in thousands):

	For the years ended December 31,
	2021		2020		2019
Net increase (decrease) in net assets resulting from operations	$	83,633	$	54,672	$	29,279
Weighted average common shares outstanding		28,477,771		27,681,757		17,344,640
Net increase (decrease) in net assets resulting from operations per common share-basic and diluted	$	2.94	$	1.98	$	1.69

141

Note 11. Income Taxes

The tax character of shareholder distributions attributable to the years ended December 31, 2021, 2020 and 2019, were as follows (in thousands):

	2021		2020		2019
Ordinary Income (1)	$	48,843	$	46,216	$	29,258
Capital Gains		—		—		—
Total	$	48,843	$	46,216	$	29,258

(1) For years ended December 31, 2021, 2020 and 2019, 86.7%, 98.0% and 100.0%, respectively, of ordinary income qualified as interest related dividend which is exempt from U.S. withholding tax applicable to non U.S. shareholders.

For the years ended December 31, 2021, 2020 and 2019, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Consolidated Statements of Assets and Liabilities by temporary and other book/tax differences, primarily relating to the tax treatment of wash sales, organizational expenses, partnership basis adjustments, forward contracts mark to market and defaulted bond income accruals is as follows (in thousands):

	2021			2020			2019
Undistributed net investment income	$	13,350		$	8,439		$	6,685
Other temporary differences		(447	)		(456	)		(465	)
Post October loss deferrals		—			—			—
Capital loss carryover		(34,248	)		(63,271	)		(8,716	)
Unrealized appreciation (depreciation)		7,437			20,630			(4,901	)
Components of tax distributable earnings at year end	$	(13,908	)	$	(34,658	)	$	(7,397	)

Note, taxable income is an estimate and is not fully determined until the Company’s tax return is filed.

Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

The Company makes certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate.

The Company neither has any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes, nor did the Company have any unrecognized tax benefits as of the periods presented herein. Although the Company files federal and state tax returns, the Company’s major tax jurisdiction is federal. The Company’s inception-to-date federal tax returns remain subject to examination by the Internal Revenue Service. A portion of losses acquired from Alcentra Capital may be subject to limitations under the Internal Revenue Code.

142

Permanent differences between Investment Company Taxable Income (“ICTI”) and net investment income for financial reporting purposes are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes. For the years ended December 31, 2021, 2020 and 2019, the Company reclassified for book purposes amounts arising from permanent book/tax differences related to the different tax treatment of foreign currency gain/(loss), defaulted bonds and non-deductible-excise tax as follows (in thousands):

	2021			2020			2019
Accumulated net realized gain (loss)	$	(16,849	)	$	(35,651	)	$	(1,379	)
Distributions in excess of Investment Company Taxable Income		2,837			(94	)		419
Total	$	(14,012	)	$	(35,745	)	$	(960	)

The tax cost of the Company’s investments as of December 31, 2021, approximates their amortized cost.

The Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was (in thousands):

	As of December 31, 2021			As of December 31, 2020
Tax Cost	$	1,260,862		$	1,038,153
Gross Unrealized Appreciation	$	34,877		$	26,684
Gross Unrealized Depreciation		(25,373	)		(30,836	)
Net Unrealized Investment Appreciation (Depreciation)	$	9,504		$	(4,152	)

The Company recognized the following income taxes related to Taxable Subsidiary and excise taxes related to the Company’s status as a RIC:

	For the years ended December 31,
	2021		2020			2019
Income taxes	$	1,732	$	(51	)	$	20
Excise taxes		518		592			119
Income and excise taxes	$	2,250	$	541		$	139

As of December 31, 2021 and 2020, $1,733 and $421 of accrued income and excise taxes remained payable.

The Company recognized the following benefits (provisions) for taxes on realized and unrealized appreciation and depreciation on investments:

	For the years ended December 31,
	2021			2020			2019
Benefit (provision) for taxes on realized gain on investments	$	(1,177	)	$	46		$	(67	)
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments		(220	)		(235	)		(154	)
Benefit (provision) for taxes on realized and unrealized appreciation (depreciation) on investments	$	(1,397	)	$	(189	)	$	(221	)

As of December 31, 2021 and 2020, $42 and $630, respectively, was included in deferred tax assets on the Consolidated Statements of Assets and Liabilities relating to net operating loss carryforwards and unrealized losses on investments and other temporary book to tax differences that are expected to be used in future periods. As of December 31, 2021 and 2020, $956 and $1,324, respectively, was included in deferred tax liabilities on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments held in the Company’s corporate subsidiary and other temporary book to tax differences of the corporate subsidiary.

143

Note 12. Financial Highlights

Below is the schedule of financial highlights of the Company (in thousands, except share and per share data):

	For the years ended December 31
	2021			2020			2019			2018			2017
Per Share Data:(1)
Net asset value, beginning of period	$	19.88		$	19.50		$	19.43		$	20.10		$	20.08
Net investment income after tax		1.67			1.80			1.83			1.65			1.31
Net realized and unrealized gains (losses) on investments, asset acquisition and forward contracts, net of taxes		1.27			0.18			(0.14	)		(0.89	)		(0.11	)
Net increase (decrease) in net assets resulting from operations		2.94			1.98			1.69			0.76			1.20
Effect of equity issuances, net of share repurchases and rounding		0.01			0.04			0.03			0.06			0.02
Distributions declared from net investment income(2)		(1.69	)		(1.64	)		(1.64	)		(1.47	)		(1.18	)
Offering costs		(0.02	)		—			(0.01	)		(0.02	)		(0.02	)
Total increase (decrease) in net assets		1.24			0.38			0.07			(0.67	)		0.02
Net asset value, end of period	$	21.12		$	19.88		$	19.50		$	19.43		$	20.10
Shares outstanding, end of period		30,887,360			20,862,314			13,358,289			8,597,116			6,376,850
Market value, end of period	$	17.60		$	14.57			—			—			—
Weighted average shares outstanding		28,477,771			27,681,757			17,344,640			10,719,485			7,562,447
Total return based on market value (3)		32.46	%		1.47	%		—			—			—
Total return based on net asset value (4)		14.74	%		10.36	%		8.81	%		4.06	%		5.99	%
Ratio/Supplemental Data:
Net assets, end of period	$	652,285		$	560,000		$	406,917		$	259,579		$	172,800
Ratio of total net expenses to average net assets(5)(6)		7.81	%		5.34	%		6.54	%		7.33	%		8.02	%
Ratio of net expenses (without incentive fees and interest and other debt expenses) to average net assets(6)		3.02	%		2.24	%		2.50	%		3.06	%		3.53	%
Ratio of net investment income before taxes to average net assets (6)		8.40	%		10.10	%		9.61	%		8.48	%		6.45	%
Ratio of interest and credit facility expenses to average net assets(6)		3.33	%		3.10	%		4.03	%		4.01	%		3.44	%
Ratio of net incentive fees to average net assets(6)		1.46	%		—			—			0.26	%		1.05	%
Ratio of portfolio turnover to average investments at fair value		41.64	%		28.01	%		23.97	%		27.89	%		19.27	%
Asset coverage ratio		201	%		217	%		225	%		209	%		214	%

⁽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.

⁽²⁾  The per share data for distributions per share reflects the actual amount of distributions declared per share for the applicable periods.

⁽³⁾  Total return based on market value is calculated as the change in market value per share during the period, taking into account dividends, if any, reinvested in accordance with the Company’s dividend reinvestment plan. The beginning market value per share for the comparative period is based on the market price of $16.40 per share on February 3, 2020, the date of the Company’s listing on NASDAQ, and not annualized.

144

⁽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, and not annualized.

⁽⁵⁾  The ratio of total expenses to average net assets in the table above reflects the Adviser’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 LP and WhiteHawk III Onshore Fund LP. Excluding the effects of waivers, the ratio of total expenses to average net assets would have been 7.83%, 5.37%, 6.58% and 7.36% for the years ended December 31, 2021, 2020, 2019 and 2018, respectively. The WhiteHawk III Onshore Fund LP. and GACP II LP investments were made in 2021 and 2018, respectively, and as such, the 2017 ratio was not affected.

⁽⁶⁾  Annualized. Note, for the years ended December 31, 2020 and 2019, the net incentive fees were fully waived.

Senior Securities

Information about our senior securities (including debt securities and other indebtedness) is shown in the following table as of the fiscal years ended December 31 for the years indicated below. We had no senior securities outstanding as of December 31 of any prior fiscal years prior to those indicated below.

145

Class and Year	Total Amount Outstanding Exclusive of Treasury Securities(1)		Asset Coverage Per Unit(2)		Involuntary Liquidating Preference Per Unit(3)		Average Market Value Per Unit(4)
SPV Asset Facility
Fiscal 2021	$	249,500	$	2,014		—		N/A
Fiscal 2020	$	260,210	$	2,166		—		N/A
Fiscal 2019	$	220,687	$	2,250		—		N/A
Fiscal 2018	$	159,629	$	2,085		—		N/A
Fiscal 2017	$	86,629	$	2,135		—		N/A
Fiscal 2016	$	47,629	$	2,347		—		N/A
Fiscal 2015	$	—	$	—		—		N/A
Revolving Credit Facility(5)
Fiscal 2021	$	—	$	—		—		N/A
Fiscal 2020	$	—	$	—		—		N/A
Fiscal 2019	$	—	$	—		—		N/A
Fiscal 2018	$	—	$	—		—		N/A
Fiscal 2017	$	—	$	—		—		N/A
Fiscal 2016	$	47,810	$	2,347		—		N/A
Fiscal 2015	$	54,810	$	2,415		—		N/A
Revolving Credit Facility II(6)
Fiscal 2021	$	—	$	—		—		N/A
Fiscal 2020	$	—	$	—		—		N/A
Fiscal 2019	$	—	$	—		—		N/A
Fiscal 2018	$	78,310	$	2,085		—		N/A
Fiscal 2017	$	65,310	$	2,135		—		N/A
Fiscal 2016	$	—	$	—		—		N/A
Fiscal 2015	$	—	$	—		—		N/A
Ally Corporate Revolving Facility(8)
Fiscal 2021	$	—	$	—		—		N/A
Fiscal 2020	$	149,904	$	2,166		—		N/A
Fiscal 2019	$	104,754	$	2,250		—		N/A
Fiscal 2018	$	—	$	—		—		N/A
Fiscal 2017	$	—	$	—		—		N/A
Fiscal 2016	$	—	$	—		—		N/A
Fiscal 2015	$	—	$	—		—		N/A
SMBC Corporate Revolving Facility
Fiscal 2021	$	203,437	$	2,014		—		N/A
Fiscal 2020	$	—	$	—		—		N/A
Fiscal 2019	$	—	$	—		—		N/A
Fiscal 2018	$	—	$	—		—		N/A
Fiscal 2017	$	—	$	—		—		N/A
Fiscal 2016	$	—	$	—		—		N/A
Fiscal 2015	$	—	$	—		—		N/A
2023 Unsecured Notes
Fiscal 2021	$	50,000	$	2,014		—		N/A
Fiscal 2020	$	50,000	$	2,166		—		N/A
Fiscal 2019	$	—	$	—		—		N/A
Fiscal 2018	$	—	$	—		—		N/A
Fiscal 2017	$	—	$	—		—		N/A
Fiscal 2016	$	—	$	—		—		N/A
Fiscal 2015	$	—	$	—		—		N/A
2026 Unsecured Notes
Fiscal 2021	$	135,000	$	2,014		—		N/A
Fiscal 2020	$	—	$	—		—		N/A

146

Fiscal 2019	$	—	$	—	—	N/A
Fiscal 2018	$	—	$	—	—	N/A
Fiscal 2017	$	—	$	—	—	N/A
Fiscal 2016	$	—	$	—	—	N/A
Fiscal 2015	$	—	$	—	—	N/A
InterNotes®(7)
Fiscal 2021	$	—	$	—	—	N/A
Fiscal 2020	$	16,418	$	2,166	—	N/A
Fiscal 2019	$	—	$	—	—	N/A
Fiscal 2018	$	—	$	—	—	N/A
Fiscal 2017	$	—	$	—	—	N/A
Fiscal 2016	$	—	$	—	—	N/A
Fiscal 2015	$	—	$	—	—	N/A

(1) Total amount of each class of senior securities outstanding at principal value at the end of the period presented.

(2) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as (i) the sum of (A) total assets at end of period and (B) other liabilities excluding total debt outstanding and accrued borrowing expenses at end of period, divided by (ii) the sum of total debt outstanding and accrued borrowing expenses at the end of the period. This asset coverage ratio is multiplied by $1,000 to determine the “Asset Coverage Per Unit”.

(3) The amount to which such class of senior security would be entitled upon our involuntary liquidation in preference to any security junior to it.

(4) Not applicable.

(5) Our $50 million revolving credit facility with Natixis, New York Branch, as administrative agent and certain of its affiliates as lenders, dated as of June 29, 2015, which has been paid down in full and was terminated on June 29, 2017.

(6) Our $75 million revolving credit facility with Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender, dated as of June 29, 2017, which has been paid down in full and was terminated on August 20, 2019.

(7) We redeemed or paid down the remaining $16.4 million of InterNotes^® during the first quarter of 2021.

(8) Our $200 million revolving credit facility with Ally Bank, as Administrative Agent and Arranger, dated as of August 20, 2019, which has been paid down in full and was terminated on October 27, 2021.

Note 13. Alcentra Acquisition

On August 12, 2019, the Company entered into an Agreement and Plan of Merger (as amended on September 27, 2019, the “Merger Agreement”) to acquire Alcentra Capital Corporation (“Alcentra Capital”) in a cash and stock transaction (the “Alcentra Acquisition”).

In connection with the Alcentra Acquisition, which was completed on January 31, 2020, each share of Alcentra Capital common stock issued and outstanding immediately prior to the effective time of the Alcentra Acquisition was converted into the right to receive from the Company, in accordance with the Merger Agreement, (a) approximately $1.50 per share in cash consideration less $0.80 per share spillover dividend declared by Alcentra Capital, and (b) stock consideration at the fixed exchange ratio of 0.4041 shares, par value $0.001 per share, of the Company’s common stock (the “Exchange Ratio”) (and, if applicable, cash in lieu of fractional shares of the Company’s common stock). The Exchange Ratio was fixed on the date of the Merger Agreement, and was not subject to adjustment based on changes in the trading price of Alcentra Capital’s common stock before the closing of the Alcentra Acquisition. Based on the number of shares of Alcentra Capital common stock outstanding on the date of the merger, approximately 5,203,016 of the Company’s shares of common stock were exchanged for approximately 12,875,566 outstanding shares of Alcentra Capital common stock, subject to adjustment in certain limited circumstances. Upon closing of the Alcentra Acquisition, all unfunded commitments of stockholders subscribing in the private offering were terminated.

Additionally, on August 12, 2019, the Company entered into an agreement with the Adviser in connection with the Alcentra Acquisition. Under the terms of the Transaction Support Agreement, in connection with the consummation of the Alcentra Acquisition the Adviser (a) provided cash consideration of approximately $1.68 per share of Alcentra Capital common stock, payable to Alcentra Capital stockholders in accordance with the terms and conditions set forth in the Merger Agreement at closing, (b) entered into an amendment to the Investment Advisory Agreement to (i) permanently reduce the management fee from 1.5% to 1.25%, (ii) increase the incentive fee hurdle from 6% to 7% annualized, (iii) waive a portion of the management fee from February 1, 2020 through July 31, 2021 after the transaction so that only 0.75% shall be charged for such time period, and (iv) waive the income based portion of the incentive fee from February 1, 2020 through July 31, 2021 after the transaction and (c) fund up to $1,419 of expenses that the Company incurs in connection with completing the Alcentra Acquisition.

147

The merger of Alcentra Capital with and into Crescent Capital BDC was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations-Related Issues. Accordingly, transaction expenses of $7,250, net of Adviser transaction support of $1,419, were included in total consideration paid, and no goodwill was recognized.

In evaluating whether the merger was an asset acquisition or business combination, the Company considered (i) whether substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset or group of similar identifiable assets; and (ii) whether the set of acquired assets included at least one substantive process. Since the acquired assets consisted of similar classes of financial assets, and since the Company did not acquire an organized workforce or other substantive processes in the transaction, it was deemed to be an asset acquisition.

Total consideration paid by the Company, including transaction costs related to the merger, of $118,256 was allocated to the acquired assets and assumed liabilities based upon their relative fair values as of the closing date, subject to the limitation that certain “non-qualifying” assets, including financial instruments, could not be assigned an amount greater than their fair values. As a result of this limitation, total consideration paid by the Company exceeded the fair value of the net assets acquired by $3,825, which has been presented as a realized loss in the Company’s Consolidated Statement of Operations for the three months ended March 31, 2020. The Company estimated the fair value of the assets acquired and liabilities assumed in accordance with ASC 820; the methodologies utilized to make these estimates were consistent with those used by the Company in estimating the fair value of its own assets and liabilities.

The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as a result of the Alcentra Acquisition (in thousands):

Consideration Paid by the Company
Common stock issued by the Company(1)	$	101,963
Cash Consideration paid by the Company		9,043
Transaction costs		7,250
Total Purchase Price	$	118,256
Assets (Liabilities) Acquired
Investment portfolio (2)	$	195,682
Cash		3,409
Portfolio receivables		1,003
Other receivable		395
InterNotes®		(50,271	)
Secured credit facility		(34,558	)
Borrowing expense payable		(834	)
Other payables		(395	)
Net Assets Acquired	$	114,431
Realized loss on asset acquisition	$	3,825

⁽¹⁾ Common stock consideration was issued at the Company’s Net Asset Value of $19.60 at the date of the Alcentra Acquisition.

⁽²⁾ Investments acquired were recorded at fair value at the date of the acquisition, which is also the Company’s initial cost basis.

Note 14. Stock Repurchase Program

On January 31, 2020, the Company entered into a $20,000 repurchase plan which allowed it to purchase shares in the open market any time the Company’s common stock trades below ninety percent (90%) of its most recently disclosed net asset value per share. The plan was subject to compliance with the Company’s liquidity, covenant, leverage and regulatory requirements. Pursuant to the terms of the repurchase plan, repurchases began on March 2, 2020. On April 9, 2020, the Company’s Board of Directors unanimously approved the termination of the Company’s stock repurchase program.

148

For the year ended December 31, 2020, the Company repurchased 192,415 shares at an average price per share, including commissions, of $11.48. There was no stock repurchased for the years ended December 31, 2021 and 2019.

Note 15. Subsequent Events

The Company’s management evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than the items below, there have been no subsequent events that occurred during such period that would require disclosure in this Form 10-K or would be required to be recognized in the consolidated financial statements as of December 31, 2021 and for the year ended December 31, 2021.

On February 18, 2022, the Company’s Board of Directors declared a regular cash dividend of $0.41 per share, which will be paid on April 15, 2022 to stockholders of record as of March 31, 2022.

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ITEM 9. CHANGES IN DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2021. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, as of December 31, 2021, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

(b) Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our consolidated financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our consolidated financial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a material misstatement of our consolidated financial statements would be prevented or detected.

Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2021.

(c) Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2021, that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not Applicable.

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PART III

We will file a definitive Proxy Statement for our 2022 Annual Meeting of Stockholders with the Securities and Exchange Commission pursuant to Regulation 14A, no later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of our definitive Proxy Statement that specifically address the items set forth herein are incorporated by reference.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item will be contained in the Company’s definitive Proxy Statement for its 2022 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31, 2021, and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item will be contained in the Company’s definitive Proxy Statement for its 2022 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31, 2021, and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item will be contained in the Company’s definitive Proxy Statement for its 2022 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31, 2021, and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item will be contained in the Company’s definitive Proxy Statement for its 2022 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31, 2021, and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item will be contained in the Company’s definitive Proxy Statement for its 2022 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31, 2021, and is incorporated herein by reference.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following documents are filed as part of this Annual Report:

1.	Financial Statements—Financial statements are included in Item 8. See the Index to the Consolidated Financial Statements on page 65 of this annual report on Form 10-K.
2	Financial Statement Schedules—None. We have omitted financial statements schedules because they are not required or are not applicable, or the required information is shown in the consolidated financial statements or notes to the consolidated financial statements included in this annual report on Form 10-K.
3.	Exhibits—The following is a list of all exhibits filed as a part of this annual report on Form 10-K, including those incorporated by reference.
2.1	Agreement and Plan of Merger, dated August  12, 2019, by and among the Company, Atlantis Acquisition Sub, Inc., Alcentra Capital Corporation and Crescent Cap Advisors, LLC (formerly CBDC Advisors, LLC) (incorporated by reference to Exhibit 2.1 to the Company’s current report on Form 8-K filed on August 13, 2019).
2.2	Amendment No. 1, dated September  27, 2019, to Agreement and Plan of Merger by and among the Company, Atlantis Acquisition Sub, Inc., Alcentra Capital Corporation and Crescent Cap Advisors, LLC (incorporated by reference to Annex B to the Company’s Preliminary Proxy Statement filed on October 3, 2019.
2.3	Agreement and Plan of Merger, dated September  27, 2019, by and between the Company and Crescent Reincorporation Sub, Inc. (incorporated by reference to Exhibit 2.3 to the Company’s quarterly report on Form 10-Q filed on November 7, 2019).
3.1	Articles of Amendment and Restatement (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on January  30, 2020).
3.2	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed on January 30, 2020).
4.1	Amended and Restated Dividend Reinvestment Plan (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-K filed on March 4, 2020).
4.2	Description of Securities (filed herewith).
10.1	Investment Advisory Agreement by and between Crescent Capital BDC, Inc. and Crescent Cap Advisors, LLC, dated as of January 5, 2021 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on January 6, 2021).
10.2	Amended and Restated Administration Agreement by and between the Company and CCAP Administration LLC (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on February 3, 2020).
10.3	Trademark License Agreement, dated April  30, 2015, by and between the Company and Crescent (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 Indemnification Agreement (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K filed on January  31, 2020).
10.5	Form of Advisory Fee Waiver Agreement by and between the Company and the Adviser (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).
10.6	Amended and Restated Advisory Fee Waiver Agreement, dated August  7, 2018, by and between the Company and the Adviser (incorporated by reference to Exhibit 10.11 to the Company’s current report on Form 10-Q filed on August 10, 2018).
10.7	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).
10.8	Custodial Agreement, dated as of May  21, 2021, by and between the Company and U.S. Bank National Association (incorporated by reference to Exhibit 10.9 to the Company’s current report on Form 10-Q filed on August 11, 2021).

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10.9	Transaction Support Agreement, dated August  12, 2019, between Crescent Capital BDC, Inc. and Crescent Cap Advisors, LLC (f/k/a CBDC Advisors, LLC) (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 814-01132), filed on August 13, 2019).
10.10	Conformed Loan and Security Agreement (conformed through Amendment No.  4) (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on March 17, 2020).
10.11	Fifth Amendment to Loan and Security Agreement, dated June 21, 2021, among Crescent Capital BDC, Inc., 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 10.2 to the Company’s Form 8-K filed on June 25, 2021).
10.12	Master Note Purchase Agreement, dated July  30, 2020, by and among Crescent Capital BDC, Inc. and the Purchasers signatory thereto (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on July 30, 2020).
10.13	Form of 5.95% Series 2020A Senior Notes due July  30, 2023 (incorporated by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K filed February 24, 2021).
10.14	First Supplement and Amendment to Note Purchase Agreement, dated February  17, 2021, by and among Crescent Capital BDC, Inc. and the Purchasers signatory thereto (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on February 17, 2021).
10.15	Form of 4.00% Series 2021A Senior Note Due February  17, 2026 (incorporated by reference to Exhibit 10.23 to the Company’s Annual Report on Form 10-K filed February 24, 2021).
10.16	Senior Secured Revolving Credit Agreement dated October 27, 2021, by and among Crescent Capital BDC, Inc. as the Borrower, certain lenders party thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, arranger, and lender (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on October 29, 2021).
14.1	Code of Ethics (incorporated by reference to Exhibit 14.1 to the Company’s Form 10-K filed on March 4, 2020).
21.1	Subsidiaries of Crescent Capital BDC Inc.(filed herewith).
23.1	Consent of Independent Registered Public Accounting Firm (filed herewith).
31.1	Certification of Chief Executive Officer, Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Financial Officer, Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 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).

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ITEM 16. FORM 10-K SUMMARY

None.

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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: February 23, 2022	By:	/s/ Jason A. Breaux
		Jason A. Breaux
		Chief Executive Officer
Date: February 23, 2022	By:	/s/ Gerhard Lombard
		Gerhard Lombard
		Chief Financial Officer

Each person whose signature appears below constitutes and appoints Jason A Breaux, Gerhard Lombard, George P. Hawley, Joseph A. Hanlon, and each of them, such person’s true and lawful attorney-in-fact and agent, with full power of substitution and revocation, for such person and in such person’s name, place and stead, in any and all capacities, to sign one or more Annual Reports on Form 10-K for the fiscal year ended December 31, 2021, and any and all amendments thereto, and to file same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as such person might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents and each of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on February 23, 2022.

Signature	Title
/s/ Jason A. Breaux Jason A. Breaux	Chief Executive Officer
/s/ Gerhard Lombard Gerhard Lombard	Chief Financial Officer
/s/ George G. Strong, Jr. George G. Strong, Jr.	Director and Chairman of the Audit Committee
/s/ Steven F. Strandberg Steven F. Strandberg	Director
/s/ Michael S. Segal Michael S. Segal	Director
/s/ Kathleen Briscoe Kathleen Briscoe	Director

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