INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Composition of Investment Portfolio at Cost And Fair Value

Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments and net assets, are shown in the following tables:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio		Percentage of Total Net Assets
June 30, 2026:
Senior debt and 1st lien notes	$	1,768,638	71	%	$	1,725,708	70	%	151	%
Subordinated debt and 2nd lien notes	236,879		9		234,415		10		21
Structured products	26,019		1		24,201		1		2
Equity shares	389,739		16		435,572		18		38
Equity warrants	76		—		1,267		—		—
Royalty rights	1,237		—		1,459		—		—
Investment in joint ventures	77,777		3		35,968		1		3

	$	2,500,365	100	%	$	2,458,590	100	%	215	%
December 31, 2025:
Senior debt and 1st lien notes	$	1,704,910	70	%	$	1,676,334	70	%	144	%
Subordinated debt and 2nd lien notes	195,392		8		190,290		8		17
Structured products	39,462		2		29,627		1		3
Equity shares	382,930		16		436,466		18		38
Equity warrants	76		—		1,170		—		—
Royalty rights	1,292		—		1,486		—		—
Investment in joint ventures	100,218		4		63,151		3		5

	$	2,424,280	100	%	$	2,398,524	100	%	207	%

As of June 30, 2026 and December 31, 2025, the Jocassee investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
June 30, 2026:
Senior debt and 1st lien notes	$	1,113,703	94	%	$	1,077,265	96	%
Subordinated debt and 2nd lien notes	14,399		1		14,706		2

Equity shares	4,593		—		4,703		—

Investment in joint ventures	28,149		3		3,723		—
Short-term investments	25,647		2		25,647		2
	$	1,186,491	100	%	$	1,126,044	100	%
December 31, 2025:
Senior debt and 1st lien notes	$	1,226,601	95	%	$	1,202,376	97	%
Subordinated debt and 2nd lien notes	10,561		1		10,594		1

Equity shares	874		—		362		—

Investment in joint ventures	34,704		3		10,274		1
Short-term investments	17,781		1		17,781		1
	$	1,290,521	100	%	$	1,241,387	100	%

The industry composition of Jocassee’s investments at fair value at June 30, 2026 and December 31, 2025, excluding short-term investments, was as follows:


($ in thousands)	June 30, 2026				December 31, 2025
Aerospace & Defense	$	48,319	4	%	$	66,828	6	%
Automotive	13,345		1		12,505		1
Banking, Finance, Insurance, & Real Estate	104,812		10		130,393		11
Beverage, Food, & Tobacco	12,794		1		32,102		3
Capital Equipment	39,640		4		40,454		3
Chemicals, Plastics, & Rubber	22,798		2		26,223		2
Construction & Building	30,447		3		28,031		2
Consumer goods: Durable	13,520		1		24,400		2
Consumer goods: Non-durable	23,264		2		28,825		2
Containers, Packaging, & Glass	31,451		3		32,380		3
Energy: Electricity	6,777		1		8,968		1
Energy: Oil & Gas	10,240		1		11,493		1
Environmental Industries	15,560		1		15,460		1
Forest Products & Paper	2,501		—		2,521		—
Healthcare & Pharmaceuticals	124,166		11		136,378		11
High Tech Industries	125,923		11		118,164		10
Hotel, Gaming, & Leisure	29,941		3		28,795		2
Investment Funds & Vehicles	3,723		—		10,274		1
Media: Advertising, Printing, & Publishing	18,107		2		14,565		1
Media: Broadcasting & Subscription	13,333		1		13,702		1
Media: Diversified & Production	42,771		4		48,553		4
Metals & Mining	5,040		—		5,250		—
Retail	5,944		1		9,728		1
Services: Business	205,079		19		219,055		18
Services: Consumer	71,543		7		71,818		6

Telecommunications	16,361		1		20,859		2
Transportation: Cargo	32,328		3		38,392		3
Transportation: Consumer	8,686		1		8,312		1
Utilities: Electric	19,854		2		17,437		1
Utilities: Oil & Gas	2,130		—		1,741		—

Total	$	1,100,397	100	%	$	1,223,606	100	%

Schedule of Investment Portfolio

The geographic composition of Jocassee’s investments at fair value at June 30, 2026 and December 31, 2025, excluding short-term investments, was as follows:


($ in thousands)	June 30, 2026				December 31, 2025
Australia	$	19,822	2	%	$	24,053	2	%
Austria	6,200		1		6,459		1
Belgium	3,188		—		20,645		2
Canada	4,828		—		2,081		—


France	97,194		9		110,106		9
Germany	46,724		4		47,823		4
Hong Kong	9,590		1		15,000		1
Ireland	8,523		1		8,743		1

Luxembourg	3,341		—		3,340		—
Netherlands	42,247		4		49,546		4


Singapore	4,961		1		4,950		—
Spain	3,096		—		3,167		—


United Kingdom	55,266		5		111,148		9
USA	795,417		72		816,545		67
Total	$	1,100,397	100	%	$	1,223,606	100	%

As of June 30, 2026 and December 31, 2025, Jocassee had the following contributed capital and unfunded commitments from its members:


($ in thousands)	As of June 30, 2026		As of December 31, 2025
Total contributed capital by Barings BDC, Inc.	$	35,000	$	35,000
Total contributed capital by all members	385,000		385,000
Total unfunded commitments by Barings BDC, Inc.	65,000		65,000
Total unfunded commitments by all members	215,000		215,000

As of June 30, 2026 and December 31, 2025, the Thompson Rivers investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
June 30, 2026:
Federal Housing Administration (“FHA”) loans	$	68,543	96	%	$	63,005	96	%
Veterans Affairs (“VA”) loans	2,860		4		2,615		4

	$	71,403	100	%	$	65,620	100	%
December 31, 2025:
Federal Housing Administration (“FHA”) loans	$	112,317	95	%	$	106,195	95	%
Veterans Affairs (“VA”) loans	5,883		5		5,557		5

	$	118,200	100	%	$	111,752	100	%

As of June 30, 2026 and December 31, 2025, Thompson Rivers had the following contributed capital and unfunded commitments from its members:


($ in thousands)	As of June 30, 2026		As of December 31, 2025
Total contributed capital by Barings BDC, Inc. (1)	$	79,411	$	79,411
Total contributed capital by all members (2)	482,083		482,083
Total unfunded commitments by Barings BDC, Inc.	—		—
Total unfunded commitments by all members	—		—

(1)Includes $4.4 million of dividend re-investments.

(2)Includes dividend re-investments of $32.1 million and total contributed capital by related parties of $162.1 million as of both June 30, 2026 and December 31, 2025.

As of June 30, 2026 and December 31, 2025, Waccamaw River had the following contributed capital and unfunded commitments from its members:


($ in thousands)	As of June 30, 2026		As of December 31, 2025
Total contributed capital by Barings BDC, Inc.	$	30,280	$	30,280
Total contributed capital by all members (1)	139,020		139,020



Total unfunded commitments by Barings BDC, Inc.	—		—
Total unfunded commitments by all members	—		—

(1)Includes $82.0 million of total contributed capital by related parties as of both June 30, 2026 and December 31, 2025.

As of December 31, 2025, the Sierra JV investment portfolio consisted of the following investments:


($ in thousands)	Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio









December 31, 2025:
Senior debt and 1st lien notes	$	2,721	100	%	$	2,701	100	%


Equity shares	—		—		—		—



	$	2,721	100	%	$	2,701	100	%

The industry composition of Sierra JV’s investments at fair value at December 31, 2025 was as follows:


($ in thousands)	December 31, 2025























Services: Business		$	2,701	100	%








Total		$	2,701	100	%

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the significant unobservable inputs the Adviser used in the valuation of the Company’s Level 3 debt and equity securities as of June 30, 2026 and December 31, 2025. The weighted average range of unobservable inputs is based on fair value of investments.

June 30, 2026:

($ in thousands)

Fair Value

Valuation
Model

Level 3
Input

Range of
Inputs

Weighted
Average

Impact to Valuation from an Increase in Input

Senior debt and 1st lien notes

1,392,953

Yield Analysis

Market Yield

6.2% – 30.0%

10.8%

Decrease

115,588

Market Approach

Adjusted EBITDA Multiple

0.4x – 12.0x

7.8x

Increase

215,230

Recent Transaction

Transaction Price

97.5% – 99.5%

98.7%

Increase

Subordinated debt and 2nd lien notes

147,053

Yield Analysis

Market Yield

8.7% – 26.9%

13.0%

Decrease

60,014

Market Approach

Adjusted EBITDA Multiple

0.8x – 11.0x

5.8x

Increase

269

Expected Recovery

$268.6

Increase

26,630

Recent Transaction

Transaction Price

98.0%

Increase

Structured products(1)

12,076

Yield Analysis

Market Yield

5.6% – 12.9%

11.9%

Decrease

Equity shares(2)

50,497

Yield Analysis

Market Yield

11.2% – 35.4%

17.3%

Decrease

348,664

Market Approach

Adjusted EBITDA Multiple

0.4x – 22.5x

6.3x

Increase

Market Approach

Revenue Multiple

6.5x

Increase

485

Black-Scholes

Volatility

60.0%

Increase

20,546

Discounted Cash Flow Analysis

Discount Rate

13.2%

Decrease

1,527

Net Asset Approach

Liabilities

$(64,808.1)

Decrease

Expected Recovery

$2.5 – $24.0

$22.0

Increase

547

Recent Transaction

Transaction Price

$1.00 – $587.00

$19.15

Increase

Equity warrants

1,264

Market Approach

Adjusted EBITDA Multiple

0.4x – 11.3x

11.1x

Increase

Expected Recovery

$3.0

Increase

Royalty rights

1,459

Yield Analysis

Market Yield

26.0% – 28.0%

27.0%

Decrease

(1)Excludes investments with an aggregate fair value amounting to $3,428, which the Adviser valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

(2)Excludes investments with an aggregate fair value amounting to $3,030, which the Adviser valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

The changes in approach were driven by considerations given to the financial performance of each portfolio company and changes in the observability of significant inputs.

December 31, 2025:

($ in thousands)

Fair Value

Valuation
Model

Level 3
Input

Range of
Inputs

Weighted
Average

Impact to Valuation from an Increase in Input

Senior debt and 1st lien notes

1,370,510

Yield Analysis

Market Yield

6.6% – 32.1%

10.5%

Decrease

62,428

Market Approach

Adjusted EBITDA Multiple

0.2x – 12.0x

6.5x

Increase

228,523

Recent Transaction

Transaction Price

98.0% – 100.0%

99.0%

Increase

Subordinated debt and 2nd lien notes

135,739

Yield Analysis

Market Yield

8.0% – 22.5%

12.9%

Decrease

50,987

Market Approach

Adjusted EBITDA Multiple

0.7x – 26.0x

11.8x

Increase

2,667

Recent Transaction

Transaction Price

98.0%

Increase

Structured products(1)

1,868

Yield Analysis

Market Yield

9.3% – 10.3%

9.8%

Decrease

Equity shares(2)

44,513

Yield Analysis

Market Yield

11.0% – 32.8%

16.9%

Decrease

348,612

Market Approach

Adjusted EBITDA Multiple

0.2x – 27.0x

15.7x

Increase

756

Market Approach

Revenue Multiple

5.3x – 8.5x

5.7x

Increase

19,983

Discounted Cash Flow Analysis

Discount Rate

12.4%

Decrease

5,830

Net Asset Approach

Liabilities

$(93,817.9) – $(117,319.9)

$(105,349.0)

Decrease

Expected Recovery

$2.5 – $36.0

$33.8

Increase

8,584

Recent Transaction

Transaction Price

$0.00 – $1,000.00

$31.33

Increase

Equity warrants

1,167

Market Approach

Adjusted EBITDA Multiple

0.5x – 11.3x

11.3x

Increase

Expected Recovery

$3.0

Increase

Royalty rights

1,486

Yield Analysis

Market Yield

28.0% – 30.0%

29.0%

Decrease

(1)Excludes investments with an aggregate fair value amounting to $14,820, which the Adviser valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

The following table summarizes the significant unobservable inputs the Adviser used in the valuation of the Company’s Level 3 Prior Sierra Credit Support Agreement as of December 31, 2025. The average range of unobservable inputs is based on fair value of the Prior Sierra Credit Support Agreement.

December 31, 2025:

($ in thousands)

Fair Value

Valuation
Model

Level 3
Input

Range of
Inputs

Average

Impact to Valuation from an Increase in Input

Prior Sierra Credit Support Agreement

60,500

Simulation Analysis

Enterprise Value / Equity Value

$0 - $385,100

$192,550

Decrease

Asset Volatility

20.0% - 50.0%

35.0%

Increase

Time Until Exit (years)

0.0 - 2.3

1.2

Decrease

Discount Rate

5.4%

Decrease

Recovery Rate

20.0% - 40.0%

30.0%

Decrease

The following table summarizes the significant unobservable inputs the Adviser used in the valuation of the Company’s Level 3 New Sierra Credit Support Agreement as of June 30, 2026.

June 30, 2026:

($ in thousands)

Fair Value

Valuation
Model

Level 3
Input

Input

Impact to Valuation from an Increase in Input

New Sierra Credit Support Agreement

1,329

Black-Scholes

Asset Volatility

25.0%

Increase

Time Until Exit (years)

5.8

Increase

Schedule of Fair Value, Assets Measured on Recurring Basis

The following tables present the Company’s investment portfolio at fair value as of June 30, 2026 and December 31, 2025, categorized by the ASC Topic 820 valuation hierarchy, as previously described:


	Fair Value as of June 30, 2026
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	1,937	$	1,723,771	$	1,725,708
Subordinated debt and 2nd lien notes	—		449		233,966		234,415
Structured products	—		8,697		15,504		24,201
Equity shares	—		10,172		425,400		435,572
Equity warrants	—		—		1,267		1,267

Royalty rights	—		—		1,459		1,459
Investments subject to leveling	$	—	$	21,255	$	2,401,367	$	2,422,622
Investment in joint ventures (1)							35,968
							$	2,458,590

	Fair Value as of December 31, 2025
($ in thousands)	Level 1		Level 2		Level 3		Total
Senior debt and 1st lien notes	$	—	$	14,873	$	1,661,461	$	1,676,334
Subordinated debt and 2nd lien notes	—		897		189,393		190,290
Structured products	—		12,939		16,688		29,627
Equity shares	—		5,120		431,346		436,466
Equity warrants	—		—		1,170		1,170
Royalty rights	—		—		1,486		1,486

Investments subject to leveling	$	—	$	33,829	$	2,301,544	$	2,335,373
Investment in joint ventures (1)							63,151
							$	2,398,524

(1)The Company’s investments in Jocassee, Sierra JV, Thompson Rivers and Waccamaw River are measured at fair value using NAV as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Unaudited and Audited Consolidated Balance Sheets.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of the Company’s investment portfolio measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and 2025:


Six Months Ended June 30, 2026: ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Royalty Rights		Total
Fair value, beginning of period	$	1,661,461	$	189,393	$	16,688	$	431,346	$	1,170	$	1,486	$	2,301,544
New investments	278,902		89,613		—		1,682		—		—		370,197

Investment restructuring	(8,462)		36		—		8,426		—		—		—

Transfers out of Level 3 (1)	—		—		—		(2,373)		—		—		(2,373)
Proceeds from sales of investments / return of capital	(43,839)		(9,801)		—		(10,697)		—		(56)		(64,393)
Loan origination fees received	(3,488)		(903)		—		—		—		—		(4,391)
Principal repayments received	(148,593)		(39,004)		(1,965)		—		—		—		(189,562)
Payment-in-kind interest / dividends	4,922		4,675		—		2,625		—		—		12,222

Accretion of loan premium / discount	363		—		—		—		—		—		363
Accretion of deferred loan origination revenue	4,285		493		—		—		—		—		4,778
Realized gain (loss)	(8,005)		550		(304)		4,773		—		—		(2,986)
Unrealized appreciation (depreciation)	(13,775)		(1,086)		1,085		(10,382)		97		29		(24,032)
Fair value, end of period	$	1,723,771	$	233,966	$	15,504	$	425,400	$	1,267	$	1,459	$	2,401,367


Six Months Ended June 30, 2025: ($ in thousands)	Senior Debt and 1st Lien Notes		Subordinated Debt and 2nd Lien Notes		Structured Products		Equity Shares		Equity Warrants		Royalty Rights		Total
Fair value, beginning of period	$	1,625,501	$	153,703	$	48,664	$	408,475	$	2,732	$	5,833	$	2,244,908
New investments	331,359		46,395		7,500		17,158		—		—		402,412

Transfers into Level 3 (1)	—		5,989		—		—		—		—		5,989
Transfers out of Level 3 (1)	—		(6,523)		(3,310)		(4,085)		—		—		(13,918)
Proceeds from sales of investments / return of capital	(61,189)		(3)		(1,933)		(4,065)		—		(4,753)		(71,943)
Loan origination fees received	(6,628)		(1,615)		—		—		—		—		(8,243)
Principal repayments received	(121,005)		(16,935)		(30,903)		—		—		—		(168,843)
Payment-in-kind interest / dividends	4,148		2,267		—		7,029		—		—		13,444
Accretion of loan premium / discount	159		—		—		—		—		—		159
Accretion of deferred loan origination revenue	4,626		444		143		—		—		—		5,213
Realized gain (loss)	(18,792)		(9,417)		(1,595)		2,616		—		2,467		(24,721)
Unrealized appreciation (depreciation)	37,073		10,311		688		12,524		(1,645)		(2,005)		56,946
Fair value, end of period	$	1,795,252	$	184,616	$	19,254	$	439,652	$	1,087	$	1,542	$	2,441,403

(1)Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. For the both the six months ended June 30, 2026 and 2025, transfers into (out of) Level 3 were as a result of changes in the observability of significant inputs for certain portfolio companies.

Schedule of PIK Interest and Dividend Income

PIK interest and dividend income for the three and six months ended June 30, 2026 and 2025 was as follows:


	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
($ in thousands)	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
PIK interest income	$	4,730		$	4,508		$	9,363		$	8,827
PIK interest income as a % of investment income	7.3		%	6.1		%	7.4		%	6.4		%
PIK dividend income	$	1,277		$	3,458		$	2,501		$	6,607
PIK dividend income as % of investment income	2.0		%	4.6		%	2.0		%	4.8		%
Total PIK income	$	6,007		$	7,966		$	11,864		$	15,434

Total PIK income as a % of investment income	9.2		%	10.7		%	9.4		%	11.1		%

Schedule of Fee and Other Income

Fee and other income for the three and six months ended June 30, 2026 and 2025 was as follows:


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
($ in thousands)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Recurring Fee and Other Income:
Amortization of loan origination fees	$	1,612	$	1,909	$	3,423	$	3,673
Management, valuation and other fees	582		660		1,150		1,226
Royalty income	26		148		68		303
Total Recurring Fee and Other Income	2,220		2,717		4,641		5,202
Non-Recurring Fee and Other Income:
Prepayment fees	648		55		651		196
Acceleration of unamortized loan origination fees	510		656		779		1,540
Advisory, loan amendment and other fees	335		1,452		335		1,516
Total Non-Recurring Fee and Other Income	1,493		2,163		1,765		3,252
Total Fee and Other Income	$	3,713	$	4,880	$	6,406	$	8,454

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details