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MIDDLE MARKET CREDIT FUND II, LLC
 6 Months Ended
Jun. 30, 2026
Investment Company [Abstract]  
MIDDLE MARKET CREDIT FUND II, LLC
5. MIDDLE MARKET CREDIT FUND, LLC
Overview
On February 29, 2016, the Company and Credit Partners entered into an amended and restated limited liability company agreement, which was most recently amended on February 11, 2026 to co-manage Credit Fund, a Delaware limited liability company that is not consolidated in the Company’s unaudited consolidated financial statements. Credit Fund primarily
invests in first lien loans of middle market companies. Credit Fund is managed by a six-member board of managers, on which the Company and Credit Partners each have equal representation. Establishing a quorum for Credit Fund’s board of managers requires at least four members to be present at a meeting, including at least two of the Company’s representatives and two of Credit Partners’ representatives. The Company and Credit Partners each have 50% economic ownership of Credit Fund and have commitments to fund, from time to time, capital of up to $250,000 each as of June 30, 2026, increased from $175,000 each on February 11, 2026. Funding of such commitments generally requires the approval of the board of Credit Fund, including the board members appointed by the Company. By virtue of its membership interest, the Company and Credit Partners each indirectly bear an allocable share of all expenses and other obligations of Credit Fund.
Together with Credit Partners, the Company co-invests through Credit Fund. Investment opportunities for Credit Fund are sourced primarily by the Company and its affiliates. Portfolio and investment decisions with respect to Credit Fund must be unanimously approved by a quorum of Credit Fund’s investment committee consisting of an equal number of representatives of the Company and Credit Partners. Therefore, although the Company owns more than 25% of the voting securities of Credit Fund, the Company does not believe that it has control over Credit Fund (other than for purposes of the Investment Company Act).
Middle Market Credit Fund SPV, LLC (the “Credit Fund Sub”), a Delaware limited liability company, was formed on April 5, 2016. Credit Fund Sub is a wholly owned subsidiary of Credit Fund and is consolidated in Credit Fund’s consolidated financial statements commencing from the date of its formation. Credit Fund Sub primarily invests in first lien loans of middle market companies. Credit Fund and its wholly owned subsidiary follow the same Internal Risk Rating System as the Company. Refer to “Debt” below in this Note 5 for discussions regarding the credit facility entered into and the notes issued by such wholly owned subsidiaries.
Credit Fund, the Company, and Credit Partners entered into an administration agreement with Carlyle Global Credit Administration L.L.C., the administrative agent of Credit Fund (in such capacity, the “Credit Fund Administrative Agent”), pursuant to which the Credit Fund Administrative Agent is delegated certain administrative and non-discretionary functions, is authorized to enter into sub-administration agreements at the expense of Credit Fund with the approval of the board of managers of Credit Fund, and is reimbursed by Credit Fund for its costs and expenses and Credit Fund’s allocable portion of overhead incurred by the Credit Fund Administrative Agent in performing its obligations thereunder.
Selected Financial Data
Since inception of Credit Fund and through June 30, 2026 and December 31, 2025, the Company and Credit Partners each made capital contributions of $1 in members’ equity and $216,000 in subordinated loans to Credit Fund. On March 24, 2025, the Company and Credit Partners each received an aggregate return of capital on subordinated loans of $62,500. Since inception, the Company and Credit Partners each have received an aggregate return of capital on subordinated loans of $85,500. Below is certain summarized consolidated financial information for Credit Fund as of June 30, 2026 and December 31, 2025.
As of
June 30, 2026December 31, 2025
Selected Consolidated Balance Sheet Information:(unaudited)
ASSETS
Investments, at fair value (amortized cost of $1,191,222 and $970,522, respectively)
$1,175,963 $957,830 
Cash, cash equivalents and restricted cash(1)
31,870 90,283 
Other assets12,786 17,302 
Total assets$1,220,619 $1,065,415 
LIABILITIES AND MEMBERS’ EQUITY
Secured borrowings$1,002,509 $589,000 
Mezzanine loans(2)
— 40,500 
Other liabilities18,843 229,032 
Subordinated loans and members’ equity(3)
199,267 206,883 
Total liabilities and members’ equity$1,220,619 $1,065,415 
(1)As of June 30, 2026 and December 31, 2025, $22,153 and $88,417, respectively, of Credit Fund’s cash and cash equivalents was restricted.
(2)As of December 31, 2025, the fair value of the Company’s ownership interest in the mezzanine loan was $40,500. There was no ownership interest in the mezzanine loans as of June 30, 2026.
(3)As of June 30, 2026 and December 31, 2025, the fair value of the Company's ownership interest in the subordinated loans and members' equity was $123,753 and $123,114, respectively.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Selected Consolidated Statements of Operations Information:(unaudited)(unaudited)
Total investment income$24,666 $15,416 $44,294 $29,646 
Expenses
Interest expense and credit facility fees12,066 6,381 21,449 12,543 
Other expenses683 572 1,282 949 
Total expenses12,749 6,953 22,731 13,492 
Net investment income (loss)11,917 8,463 21,563 16,154 
Net realized gain (loss) on investment and foreign currency(12)— (5,174)— 
Net change in unrealized appreciation (depreciation) on investments and foreign currency(889)(868)(2,505)(3,824)
Net increase (decrease) resulting from operations$11,016 $7,595 $13,884 $12,330 
Below is a summary of Credit Fund’s portfolio, followed by a listing of the loans in Credit Fund’s portfolio as of June 30, 2026 and December 31, 2025:
As of
June 30, 2026December 31, 2025
Senior secured loans(1)
$1,197,580 $978,828 
Number of portfolio companies in Credit Fund69 55 
Average amount per portfolio company(1)
$17,356 $17,797 
Number of loans on non-accrual status1 2 
Fair value of loans on non-accrual status$329 $6,297 
Percentage of loans at floating interest rates(2)(3)
100.0 %100.0 %
Fair value of loans with PIK provisions$48,390 $36,618 
Percentage of portfolio with PIK provisions(3)
4.1 %3.8 %
(1)At par/principal amount.
(2)Floating rate debt investments are generally subject to interest rate floors.
(3)Percentages based on fair value.
Consolidated Schedule of Investments as of June 30, 2026
Investments (1)
Footnotes
Industry
Reference Rate (2)
Spread (2)
Interest Rate (2)
Maturity Date
Par/ Principal Amount
Amortized Cost (4)
Fair Value (5)
First Lien Debt (99.7% of fair value)
Accelya Lux FinCo S.Á.R.L. (Luxembourg)(b)(2)Transportation: ConsumerSOFR5.25%8.98%10/3/2032$24,875 $24,552 $22,077 
AGS Health BCP LLC(b)(2)(3)Healthcare & PharmaceuticalsSOFR4.25%7.92%7/31/20329,152 9,130 9,171 
Allied Benefit Systems Intermediate LLC(a)(b)(2)(3)(9)Healthcare & PharmaceuticalsSOFR5.00%8.64%10/31/203022,352 22,230 22,321 
Alpine Acquisition Corp II(a)(2)(3)(9)Transportation: CargoSOFR5.00%8.64%1/14/2031840 840 840 
Alpine Acquisition Corp II(a)(2)(3)Transportation: CargoSOFR5.25%8.89%1/14/20311,079 1,079 1,079 
AP Plastics Acquisition Holdings, LLC(b)(2)(3)Chemicals, Plastics & RubberSOFR4.75%8.37%8/10/203019,750 19,616 19,373 
Apex Companies Holdings, LLC(b)(2)(3)Environmental IndustriesSOFR5.00%8.67%1/31/203020,375 20,340 20,284 
Atlas US Finco, Inc.(b)(2)(3)High Tech IndustriesSOFR5.00%8.66%12/9/20297,310 7,167 7,346 
Atlas US Finco, Inc.(b)(2)(3)High Tech IndustriesSOFR4.50%8.16%12/9/202921,349 21,265 21,361 
BMS Holdings III Corp.(b)(2)(3)(6)Construction & BuildingSOFR
2.75%,
3.25% PIK
9.73%3/31/202810,878 10,872 9,983 
Businessolver.com, Inc.(b)(2)(3)Business ServicesSOFR4.50%8.23%12/3/203218,867 18,779 18,612 
Celerion Buyer, Inc.(a)(b)(2)(3)(9)Healthcare & PharmaceuticalsSOFR5.00%8.63%5/8/203322,573 22,324 22,323 
Chartwell Cumming Holding Corporation(a)(b)(2)(3)(9)Construction & BuildingSOFR4.75%8.48%6/16/20335,562 5,329 5,327 
Cliffwater LLC(b)(2)(3)Diversified Financial ServicesSOFR4.50%8.14%4/22/203224,812 24,791 24,690 
Cority Software Inc. (Canada)(b)(2)(3)SoftwareSOFR4.50%8.16%10/31/203234,617 34,213 34,444 
CST Holding Company(b)(2)(3)(6)Consumer Goods: Non-DurableSOFR5.00%8.64%11/1/20289,620 9,620 9,603 
Deerfield Dakota Holding, LLC(b)(2)(3)Diversified Financial ServicesSOFR
3.00%,
2.75% PIK
9.48%9/12/203220,341 20,152 19,902 
Denali Intermediate Holdings, Inc.(b)(2)(3)Media: Broadcasting & SubscriptionSOFR5.50%9.15%8/26/203214,300 14,168 14,197 
Divisions Holding Corporation(b)(2)(3)Business ServicesSOFR4.50%8.23%4/17/203227,393 27,165 27,426 
Dwyer Instruments, Inc.(b)(2)(3)Capital EquipmentSOFR4.75%8.48%7/21/202916,282 16,171 16,282 
Eliassen Group, LLC(b)(2)(3)Business ServicesSOFR5.75%9.48%4/14/202818,696 18,609 17,862 
Enverus, Inc.(b)(2)(3)Energy: Oil & GasSOFR4.50%8.15%12/18/203216,974 16,878 16,847 
Finastra USA, Inc.(b)(2)High Tech IndustriesSOFR4.00%7.75%9/17/203224,938 24,711 22,905 
GGG Midco, LLC(a)(b)(2)(3)(9)Consumer ServicesSOFR4.75%8.42%4/1/203316,406 16,164 16,164 
GI DI Emerald Intermediate Limited (United Kingdom)(b)(2)(3)Business ServicesEURIBOR4.75%7.04%2/12/2033€5,440 6,202 6,157 
GI DI Emerald Intermediate Limited (United Kingdom)(b)(2)(3)Business ServicesSOFR4.75%8.48%2/12/20338,826 8,738 8,742 
Goose Borrower, L.P.(a)(b)(2)(3)(9)SoftwareSOFR4.75%8.48%3/2/203315,737 15,560 15,561 
Heartland Home Services, Inc.(b)(2)(3)(6)Consumer ServicesSOFR5.75%9.48%12/15/20266,987 6,976 6,870 
Heartland Home Services, Inc.(b)(2)(3)(6)Consumer ServicesSOFR6.00%9.73%12/15/202623,392 23,382 23,030 
Heartland Home Services, Inc.(a)(2)(3)(6)Consumer ServicesSOFR6.75%10.49%12/15/2026794 794 782 
Higginbotham Insurance Agency, Inc.(b)(2)(3)Diversified Financial ServicesSOFR4.50%8.14%6/11/20318,755 8,755 8,715 
Horizon Avionics Buyer, LLC(b)(2)(3)Aerospace & DefenseSOFR4.75%8.49%3/28/203222,078 21,973 21,979 
Consolidated Schedule of Investments as of June 30, 2026
Investments (1)
Footnotes
Industry
Reference Rate (2)
Spread (2)
Interest Rate (2)
Maturity Date
Par/ Principal Amount
Amortized Cost (4)
Fair Value (5)
Hyphen Solutions, LLC(b)(2)(3)Construction & BuildingSOFR4.50%8.14%8/6/2032$6,748 $6,718 $6,661 
IEM New Sub 2, LLC(b)(2)(3)Energy: ElectricitySOFR4.75%8.37%12/3/203119,705 19,613 19,625 
Iron Infinity Buyer Sub, Inc.(b)(2)(3)Utilities: Oil & GasSOFR4.50%8.23%10/16/203219,950 19,903 19,718 
KBP Investments, LLC(b)(2)(3)(6)Beverage & FoodSOFR5.25%8.89%5/25/202735,941 35,900 35,280 
Kona Buyer, LLC(a)(b)(2)(3)(9)Healthcare & PharmaceuticalsSOFR4.50%8.16%7/23/203110,834 10,723 10,864 
LDS Intermediate Holdings, L.L.C.(b)(2)(3)Transportation: CargoSOFR5.00%8.64%2/7/203225,390 25,225 24,983 
Matterhorn Finco, Inc.(a)(b)(2)(3)(9)SoftwareSOFR5.50%9.23%3/5/203310,833 10,714 10,714 
McQueen Bidco PTY LTD. (Australia)(b)(2)(3)Auto Aftermarket & ServicesSOFR4.50%8.13%11/28/203224,480 24,363 24,676 
Monarch Buyer, Inc.(b)(2)(3)Business ServicesSOFR4.75%8.49%6/2/203219,850 19,663 19,583 
More Cowbell II, LLC(b)(2)(3)Diversified Financial ServicesSOFR4.50%8.24%9/1/203021,250 21,250 21,250 
NFO Orange Buyer, LLC(a)(b)(2)(3)(9)Construction & BuildingSOFR4.50%8.13%1/13/203315,009 14,938 14,924 
North Haven Fairway Buyer, LLC(b)(2)(3)Consumer ServicesSOFR5.00%8.74%5/17/202824,823 24,720 24,683 
OEI, Inc.(a)(b)(2)(3)(9)Construction & BuildingSOFR4.50%8.23%12/29/203221,101 20,951 21,335 
Onward Acquierco, Inc.(a)(b)(2)(3)(9)SoftwareSOFR
2.38%,
2.68% PIK
8.69%4/1/203318,696 18,503 18,505 
Orbcomm Inc.(a)(b)(2)(9)TelecommunicationsSOFR5.25%8.98%4/27/203218,090 17,847 17,847 
Output Services Group, Inc.(b)(2)(3)(6)Media: Advertising, Printing & PublishingSOFR6.25%9.98%11/30/20284,160 3,112 3,712 
PROS Parent, Inc.(a)(b)(2)(3)(9)Transportation: ConsumerSOFR4.75%8.40%12/9/203222,467 22,417 22,424 
Pushpay USA Inc.(b)(2)Diversified Financial ServicesSOFR3.75%7.39%8/18/203123,365 23,386 23,286 
QBS Parent, Inc.(b)(2)(3)Energy: Oil & GasSOFR4.50%8.23%6/3/203226,610 26,527 26,299 
Radwell Parent, LLC(b)(2)(3)WholesaleSOFR4.75%8.48%4/1/203013,465 13,411 13,453 
Ranpak B.V. (Netherlands)(b)(2)Containers, Packaging & GlassSOFR4.50%8.14%12/19/20317,688 7,616 7,649 
Ranpak Corp.(b)(2)Containers, Packaging & GlassSOFR4.50%8.14%12/19/203112,012 11,901 11,952 
Rialto Management Group, LLC(b)(2)(3)Diversified Financial ServicesSOFR5.00%8.64%12/5/203015,289 15,261 15,125 
Rotation Buyer, LLC(b)(2)(3)Capital EquipmentSOFR4.75%8.49%12/27/20318,679 8,627 8,500 
SCHP Purchaser, INC(b)(2)(3)Healthcare & PharmaceuticalsSOFR4.50%8.16%10/24/203218,601 18,431 18,461 
SCHP Purchaser, INC(b)(2)(3)Healthcare & PharmaceuticalsSOFR5.00%8.63%10/24/20324,048 4,008 4,064 
Seahawk Bidco, LLC(a)(b)(2)(3)(9)Consumer ServicesSOFR5.00%8.73%12/19/203114,292 14,201 14,067 
Secretariat Advisors LLC(b)(2)Construction & BuildingSOFR4.00%7.73%3/1/203217,626 17,552 17,241 
SIG Parent Holdings, LLC(a)(b)(2)(3)(9)Diversified Financial ServicesSOFR4.75%8.39%8/21/20313,921 3,760 3,841 
Sigma Irish Acquico Limited (Ireland)(b)(2)Diversified Financial ServicesSOFR5.25%8.87%3/19/203210,222 10,048 10,094 
Solarwinds Corporation(b)(2)SoftwareSOFR4.00%7.67%3/15/20322,872 2,754 2,395 
Spotless Brands, LLC(b)(2)(3)Consumer ServicesSOFR5.50%9.35%7/25/202810,701 10,635 10,682 
Striper Buyer, LLC(b)(2)(3)Containers, Packaging & GlassSOFR5.50%9.14%12/30/202812,806 12,793 11,327 
Tank Holding Corp.(b)(2)(3)(6)Capital EquipmentSOFR5.75%9.38%3/31/202819,248 19,045 17,602 
The Chartis Group, LLC(b)(2)(3)Healthcare & PharmaceuticalsSOFR4.25%7.98%9/17/203115,381 15,277 15,381 
Consolidated Schedule of Investments as of June 30, 2026
Investments (1)
Footnotes
Industry
Reference Rate (2)
Spread (2)
Interest Rate (2)
Maturity Date
Par/ Principal Amount
Amortized Cost (4)
Fair Value (5)
Trintech, Inc.(a)(b)(2)(3)(9)SoftwareSOFR4.75%8.39%1/29/2033$16,726 $16,291 $16,294 
TS Imagine Intermediate Inc.(a)(b)(2)(3)(9)SoftwareSOFR6.25%9.91%6/12/203112,281 12,077 12,076 
U.S. TelePacific Holdings Corp.(a)(2)(3)(6)(7)TelecommunicationsSOFR
1.00%,
7.00% PIK
11.63%5/2/20264,386 2,817 329 
Vensure Employer Services, Inc.(a)(b)(2)(3)(9)Business ServicesSOFR5.00%8.73%9/27/203118,760 18,417 18,390 
Victors Purchaser, LLC(b)(2)(3)High Tech IndustriesSOFR4.50%8.24%12/23/203216,975 16,935 16,936 
VRC Companies, LLC(b)(2)(3)(6)Business ServicesSOFR5.50%9.16%6/29/202722,899 22,829 22,816 
Whitney Merger Sub, Inc.(b)(2)(3)Leisure Products & ServicesSOFR4.75%8.48%7/3/20329,950 9,858 9,771 
Yellowstone Buyer Acquisition, LLC(b)(2)(3)(6)Consumer Goods: DurableSOFR5.75%9.52%9/13/202738,100 37,913 35,465 
First Lien Debt Total$1,187,475 $1,172,535 
Equity Investments (0.3% of fair value)
48Forty TopCo LLC(a)(8)Transportation: Cargo1 $2,688 $2,327 
48Forty TopCo LLC(a)(8)Transportation: Cargo1 — — 
EvolveIP, LLC(a)(8)Telecommunications311 1,059 1,101 
Output Services Group, Inc.(a)(8)Media: Advertising, Printing & Publishing205 — — 
Equity Investments Total$3,747 $3,428 
Total Investments$1,191,222 $1,175,963 
(a) Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into a revolving credit facility with the Company (the "Credit Fund Facility"). On February 25, 2026, Credit Fund also entered into a revolving credit facility (the "Credit Fund Subscription Facility"), pursuant to which the lenders have a first priority lien on the unfunded capital commitments, the collateral accounts and other related assets. Accordingly, such assets are not available to creditors of Credit Fund Sub.
(b) Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the “Credit Fund Sub 2025 Facility”). The lenders of the Credit Fund Sub 2025 Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
(1)Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of June 30, 2026, the geographical composition of investments as a percentage of fair value was 2.1% in Australia, 0.9% in Ireland, 1.9% in Luxembourg, 0.7% in the Netherlands, 2.9% in Canada, 1.3% in United Kingdom and 90.2% in the United States. Certain portfolio company investments are subject to contractual restrictions on sales.
(2)Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to either SOFR or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, Credit Fund has indicated the reference rate used and provided the spread and the interest rate in effect as of June 30, 2026. As of June 30, 2026, the reference rates for Credit Fund’s variable rate loans were the 90-day EURIBOR at 2.32%, the 30-day SOFR at 3.63%, the 90-day SOFR at 3.63% and the 180-day SOFR at 3.67%.
(3)Loan includes interest rate floor feature, which ranges from 0.50% to 1.00%.
(4)Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable, on debt investments using the effective interest method.
(5)Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Fund’s valuation policy, with the fair value of all investments determined using significant unobservable inputs, which is substantially similar to the valuation policy of the Company provided in Note 3, Fair Value Measurements, to these unaudited consolidated financial statements.
(6)Loans include a credit spread adjustment that typically ranges from 0.10% to 0.43%.
(7)Represents an investment on non-accrual status as of June 30, 2026.
(8)Represents a non-income producing security as of June 30, 2026.
(9)As of June 30, 2026, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans. The unfunded debts’ fair value is included in investments, at fair value in the accompanying Selected Consolidated Balance Sheet Information:

First Lien Debt – unfunded delayed draw and revolving term loans commitmentsTypeUnused FeePar/ Principal AmountFair Value
Allied Benefit Systems Intermediate LLCDelayed Draw1.00 %$2,535 $(3)
Alpine Acquisition Corp IIDelayed Draw0.50 81— 
Alpine Acquisition Corp IIRevolver0.50 324— 
Celerion Buyer, IncRevolver0.50 2,427(24)
Chartwell Cumming Holding CorporationDelayed Draw0.50 1,657(17)
Chartwell Cumming Holding CorporationRevolver0.50 16,253(163)
Goose Borrower, L.P.Revolver0.50 2,792(27)
GGG Midco, LLCDelayed Draw1.00 3,125(30)
GGG Midco, LLCRevolver0.50 5,469(53)
Kona Buyer, LLCDelayed Draw0.50 8,59813 
Kona Buyer, LLCRevolver0.50 7681 
Matterhorn Finco, Inc.Revolver0.25 1,667(16)
NFO Orange Buyer, LLCDelayed Draw— 3,216(15)
OEI, Inc.Revolver0.38 3,84636 
Onward Acquierco, IncDelayed Draw— 7,961(57)
Orbcomm Inc.Delayed Draw0.50 2,743(27)
Orbcomm Inc.Revolver1.00 4,167(40)
PROS Parent, Inc.Revolver0.38 2,533(4)
Seahawk Bidco, LLCDelayed Draw1.00 9,861(89)
Seahawk Bidco, LLCRevolver0.50 779(7)
SIG Parent Holdings, LLCDelayed Draw0.75 15,217(62)
SIG Parent Holdings, LLCRevolver0.38 459(2)
Trintech, Inc.Delayed Draw0.75 2,788(56)
Trintech, Inc.Revolver0.50 2,091(42)
TS Imagine Intermediate Inc.Delayed Draw0.50 409(6)
TS Imagine Intermediate Inc.Revolver0.50 1,023(15)
Vensure Employer Services, Inc.Delayed Draw0.50 5,316(82)
Total unfunded commitments$108,105 $(787)
    
Consolidated Schedule of Investments as of December 31, 2025
Investments (1)
FootnotesIndustry
Reference Rate (2)
Spread (2)
Interest Rate (2)
Maturity DatePar/ Principal Amount
Amortized Cost (4)
Fair Value (5)
First Lien Debt (99.9% of fair value)
Accelya Lux FinCo S.Á.R.L. (Luxembourg)+(2)Transportation: ConsumerSOFR5.25%8.92%10/3/2032$25,000 $24,658 $24,781 
AGS Health BCP LLC+(2)(3)Healthcare & PharmaceuticalsSOFR4.50%8.32%7/31/20329,152 9,129 9,185 
Alpine Acquisition Corp II+(2)(3)(7)Transportation: CargoSOFR6.00%9.65%11/30/202910,134 9,738 4,652 
AP Plastics Acquisition Holdings, LLC+(2)(3)Chemicals, Plastics & RubberSOFR4.75%8.58%8/10/203019,850 19,715 19,828 
Apex Companies Holdings, LLC+(2)(3)Environmental IndustriesSOFR5.00%8.82%1/31/202820,471 20,425 20,337 
API Technologies Corp.+(2)(6)Aerospace & DefenseSOFR
1.00%, 6.00% PIK
10.67%5/9/202716,653 15,865 15,187 
API Technologies Corp.+(2)(3)(6)Aerospace & DefenseSOFR
1.00%, 6.00% PIK
10.67%5/9/20271,471 1,204 1,471 
Applied Technical Services, LLC+(2)(3)Business ServicesSOFR5.25%8.92%4/8/203115,581 15,446 15,454 
Atlas US Finco, Inc.+(2)(3)High Tech IndustriesSOFR4.75%8.61%12/12/202921,457 21,361 21,473 
BMS Holdings III Corp.+(2)(3)(6)Construction & BuildingSOFR5.50%9.17%9/30/202610,792 10,774 10,087 
Businessolver.com, Inc.+(2)(3)Business ServicesSOFR4.50%8.17%12/3/203218,867 18,774 18,773 
Cliffwater LLC+(2)(3)Diversified Financial ServicesSOFR4.75%8.72%4/22/203224,937 24,915 24,919 
CST Holding Company+(2)(3)(6)Consumer Goods: Non-DurableSOFR5.00%8.72%11/1/20289,670 9,670 9,718 
Deerfield Dakota Holding, LLC+(2)(3)Diversified Financial ServicesSOFR
3.00%, 2.75% PIK
9.42%9/12/203220,168 19,970 19,960 
Denali Intermediate Holdings, Inc.+(2)(3)Media: Broadcasting & SubscriptionSOFR5.50%9.23%8/26/203214,372 14,232 14,231 
Divisions Holding Corporation+(2)(3)Business ServicesSOFR4.50%8.17%4/17/203227,531 27,286 27,715 
Dwyer Instruments, Inc.+(2)(3)Capital EquipmentSOFR4.75%8.43%7/21/202916,366 16,238 16,366 
Eliassen Group, LLC+(2)(3)Business ServicesSOFR5.75%9.42%4/14/202818,793 18,683 18,313 
Enverus, Inc.^+(2)(3)(9)Energy: Oil & GasSOFR4.50%8.19%12/18/203211,115 11,068 11,068 
Finastra USA, Inc.+(2)High Tech IndustriesSOFR4.00%7.72%9/17/203225,000 24,758 24,438 
Heartland Home Services, Inc.+(2)(3)(6)Consumer ServicesSOFR5.75%9.42%12/15/20267,023 7,001 6,850 
Heartland Home Services, Inc.^+(2)(3)(6)(9)Consumer ServicesSOFR6.00%9.67%12/15/202623,859 23,838 23,306 
Higginbotham Insurance Agency, Inc.+(2)(3)Diversified Financial ServicesSOFR4.50%8.22%6/11/20318,799 8,799 8,755 
Horizon Avionics Buyer, LLC+(2)(3)Aerospace & DefenseSOFR4.75%8.42%3/28/203222,133 22,023 22,023 
Hyphen Solutions, LLC+(2)(3)Construction & BuildingSOFR4.50%8.22%8/6/20326,782 6,749 6,746 
IEM New Sub 2, LLC+(2)(3)Energy: ElectricitySOFR4.75%8.27%12/3/203119,807 19,708 19,708 
Iron Infinity Buyer Sub, Inc.+(2)(3)Utilities: Oil & GasSOFR4.75%8.42%10/16/203220,000 19,950 19,945 
KBP Investments, LLC+(2)(3)(6)Beverage & FoodSOFR5.50%9.19%5/25/202736,917 36,853 35,311 
LDS Intermediate Holdings, L.L.C.+(2)(3)Transportation: CargoSOFR5.00%8.72%2/7/203225,518 25,342 25,436 
McQueen Bidco PTY LTD. (Australia)+(2)(3)Auto Aftermarket & ServicesSOFR4.50%8.17%11/28/203224,480 24,358 24,358 
Monarch Buyer, Inc.+(2)(3)Business ServicesSOFR4.50%8.32%6/2/203219,950 19,751 19,745 
More Cowbell II, LLC+(2)(3)Diversified Financial ServicesSOFR4.50%8.24%9/1/203021,357 21,357 21,351 
NEFCO Holding Company LLC+(2)(3)Construction & BuildingSOFR5.00%8.97%8/5/202819,717 19,582 19,717 
North Haven Fairway Buyer, LLC^+(2)(3)(9)Consumer ServicesSOFR5.00%8.77%5/17/202822,627 22,497 22,439 
Output Services Group, Inc.+(2)(3)(6)Media: Advertising, Printing & PublishingSOFR6.25%10.41%11/30/20284,160 2,960 3,755 
Consolidated Schedule of Investments as of December 31, 2025
Investments (1)
FootnotesIndustry
Reference Rate (2)
Spread (2)
Interest Rate (2)
Maturity DatePar/ Principal Amount
Amortized Cost (4)
Fair Value (5)
PF Atlantic Holdco 2, LLC+(2)(3)(6)Leisure Products & ServicesSOFR5.50%9.23%11/12/2027$14,929 $14,832 $14,929 
Pushpay USA Inc.+(2)Diversified Financial ServicesSOFR3.75%7.62%8/18/203123,483 23,505 23,568 
QBS Parent, Inc.+(2)(3)Energy: Oil & GasSOFR4.50%8.17%6/3/203226,744 26,656 26,913 
Radwell Parent, LLC+(2)(3)WholesaleSOFR5.50%9.17%4/1/202913,535 13,472 13,535 
Ranpak B.V. (Netherlands)+(2)Containers, Packaging & GlassSOFR4.50%8.22%12/19/20317,727 7,650 7,727 
Ranpak Corp.+(2)Containers, Packaging & GlassSOFR4.50%8.22%12/19/203112,073 11,953 12,073 
Rialto Management Group, LLC+(2)(3)Diversified Financial ServicesSOFR5.00%8.72%12/5/203015,289 15,259 15,298 
Rotation Buyer, LLC+(2)(3)Capital EquipmentSOFR4.75%8.43%12/27/20318,723 8,667 8,647 
SCHP Purchaser, INC+(2)(3)Healthcare & PharmaceuticalsSOFR4.50%8.37%10/24/203218,601 18,423 18,420 
Secretariat Advisors LLC+(2)Construction & BuildingSOFR4.00%7.67%3/1/203217,716 17,635 17,716 
Sigma Irish Acquico Limited (Ireland)+(2)Diversified Financial ServicesSOFR5.25%8.91%3/19/203210,222 10,036 10,094 
Solarwinds Corporation+(2)SoftwareSOFR4.00%7.70%3/15/20322,887 2,761 2,880 
Spotless Brands, LLC+(2)(3)Consumer ServicesSOFR5.50%9.36%7/25/202810,756 10,674 10,808 
Striper Buyer, LLC+(2)(3)Containers, Packaging & GlassSOFR5.50%9.22%12/30/202614,250 14,221 12,812 
Tank Holding Corp.+(2)(3)(6)Capital EquipmentSOFR5.75%9.47%3/31/202819,348 19,091 17,680 
The Chartis Group, LLC+(2)(3)Healthcare & PharmaceuticalsSOFR4.25%7.95%9/17/203115,459 15,347 15,613 
Turbo Buyer, Inc.^+(2)(3)(9)Auto Aftermarket & ServicesSOFR6.00%9.62%6/1/202633,997 33,997 33,997 
U.S. TelePacific Holdings Corp.^(2)(3)(6)(7)TelecommunicationsSOFR
1.00%, 7.00% PIK
11.65%5/2/20264,286 2,817 1,645 
Victors Purchaser, LLC+(2)(3)High Tech IndustriesSOFR4.50%8.19%12/23/203216,975 16,933 16,925 
VRC Companies, LLC+(2)(3)(6)Business ServicesSOFR5.25%9.09%6/29/202723,019 22,916 23,012 
Whitney Merger Sub, Inc.+(2)(3)Leisure Products & ServicesSOFR4.75%8.42%7/3/203210,000 9,902 9,901 
Yellowstone Buyer Acquisition, LLC+(2)(3)(6)Consumer Goods: DurableSOFR5.75%9.62%9/13/202738,300 38,039 35,120 
First Lien Debt Total$969,463 $956,714 
Equity Investments (0.1% of fair value)
48forty Intermediate Holdings, Inc.^(8)Transportation: Cargo1 $— $— 
EvolveIP, LLC^(8)Telecommunications311 1,059 1,116 
Output Services Group, Inc.^(8)Media: Advertising, Printing & Publishing205 — — 
Equity Investments Total$1,059 $1,116 
Total Investments$970,522 $957,830 
^ Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into a revolving credit facility with the Company (the “Credit Fund Facility”). Accordingly, such assets are not available to creditors of Credit Fund Sub.
+ Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the “Credit Fund Sub 2025 Facility”). The lenders of the Credit Fund Sub 2025 Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
(1)Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of December 31, 2025, the geographical composition of investments as a percentage of fair value was 2.5% in Australia, 1.1% in Ireland, 2.6% in Luxembourg, 0.8% in the Netherlands and 93.0% in the United States. Certain portfolio company investments are subject to contractual restrictions on sales.
(2)Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to either SOFR or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, Credit Fund has indicated the reference rate used and provided the spread and the interest rate in effect as of December 31, 2025. As of December 31, 2025, the reference rates for Credit Fund's variable rate loans were the 30-day SOFR at 3.69%, the 90-day SOFR at 3.65% and the 180-day SOFR at 3.57%.
(3)Loan includes interest rate floor feature, which ranges from 0.75% to 1.00%.
(4)Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable, on debt investments using the effective interest method.
(5)Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Fund’s valuation policy, with the fair value of all investments determined using significant unobservable inputs, which is substantially similar to the valuation policy of the Company provided in Note 3, Fair Value Measurements, to these unaudited consolidated financial statements.
(6)Loans include a credit spread adjustment that typically ranges from 0.10% to 0.43%.
(7)Represents an investment on non-accrual status as of December 31, 2025.
(8)Represents a non-income producing security as of December 31, 2025.
(9)As of December 31, 2025, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans. The unfunded debts’ fair value is included in investments, at fair value in the accompanying Selected Consolidated Balance Sheet Information:
First Lien Debt—unfunded delayed draw and revolving term loans commitmentsTypeUnused FeePar/ Principal AmountFair Value
Enverus, Inc.Delayed Draw1.00%$1,608 $(6)
Heartland Home Services, Inc.Revolver0.50428 (10)
North Haven Fairway Buyer, LLCDelayed Draw0.502,316 (17)
Turbo Buyer, Inc.Revolver0.50233 0 
Total unfunded commitments$4,585 $(33)
Debt
The Credit Fund and Credit Fund Sub are party to separate credit facilities, as described below. As of June 30, 2026 and December 31, 2025, Credit Fund and Credit Fund Sub were in compliance with all covenants and other requirements of their respective credit facility agreements. Below is a summary of each facility and their borrowing and repayment activity for the respective periods.
Credit Fund Facility. On June 24, 2016, Credit Fund closed on the Credit Fund Facility, which has been amended from time to time, most recently on February 24, 2026, pursuant to which Credit Fund may from time to time request mezzanine loans from the Company. The maximum principal amount of the Credit Fund Facility is $100,000, subject to availability under the Credit Fund Facility, which is based on certain advance rates multiplied by the value of Credit Fund’s portfolio investments net of certain other indebtedness that Credit Fund may incur in accordance with the terms of the Credit Fund Facility. Proceeds of the Credit Fund Facility may be used for general corporate purposes, including the funding of portfolio investments. Amounts drawn under the Credit Fund Facility bear interest at the greater of zero and SOFR plus an applicable spread of 6.50% (5.50% prior to the February 24, 2026 amendment) and such interest payments are made quarterly. The availability period under the Credit Fund Facility will terminate on May 21, 2028, (May 21, 2025 prior to the March 18, 2025 amendment), which is also its maturity date upon which Credit Fund is obligated to repay any outstanding borrowings.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Outstanding borrowings, beginning of period$— $— $40,500 $— 
Borrowings— — — — 
Repayments— — (40,500)— 
Outstanding borrowings, end of period$— $— $— $— 
Credit Fund Sub 2016 Facility. On June 24, 2016, Credit Fund Sub entered into a revolving credit facility (the “Credit Fund Sub 2016 Facility”), which had been amended from time to time, most recently on November 4, 2024. The Credit Fund Sub 2016 Facility provided up to an amount equal to $465,000 ($640,000 prior to the May 29, 2024 amendment) in secured borrowings during the applicable revolving period (the borrowing base as calculated pursuant to the terms of the Credit Fund Sub 2016 Facility). The aggregate maximum credit commitment could have been increased up to an amount not to exceed $1,400,000, subject to certain restrictions and conditions set forth in the Credit Fund Sub 2016 Facility, including adequate collateral to support such borrowings. The Credit Fund Sub 2016 Facility had a revolving period through May 23, 2025 and a maturity date of May 23, 2026, which could have been extended by mutual agreement of the parties to the Credit Fund Sub 2016 Facility. Borrowings under the Credit Fund Sub 2016 Facility bore interest initially at the applicable commercial paper rate (if the lender was a conduit lender) or SOFR plus 2.30% (2.70% prior to the November 4, 2024). The Credit Fund Sub was also required to pay an unused commitment fee of between 0.00% to 1.75% (0.50% and 0.75% prior to the November 4, 2024 amendment) per year depending on the usage of the Credit Fund Sub 2016 Facility. Payments under the Credit Fund Sub 2016 Facility were made quarterly. Subject to certain exceptions, the Facility was secured by a first lien security interest in substantially all of the portfolio investments held by the Credit Fund Sub. The outstanding borrowings on the Credit Fund Sub 2016 Facility were repaid in full on March 20, 2025.
For the period from January 1, 2025 through March 20, 2025
Outstanding borrowings, beginning of period$189,221 
Borrowings29,000 
Repayments(218,221)
Outstanding borrowings, end of period$— 
Credit Fund Sub 2025 Facility. On March 20, 2025, Credit Fund Sub closed on the Credit Fund Sub 2025 Facility, which has been amended from time to time, most recently on May 6, 2026. On May 6, 2026, the Company increased the total commitments under the Credit Fund Sub 2025 Facility by $400,000 pursuant to the terms of the agreement, resulting in total commitments increasing to $1,200,000 ($800,000 prior to the May 6, 2026 amendment). The Credit Fund Sub 2025 Facility has a revolving period through March 20, 2028 and maturity date of March 20, 2035. Borrowings under the Credit Fund Sub 2025 Facility bear interest at either a SOFR or alternative benchmark rate, with an applicable margin of 1.70% (1.60% prior to the May 6, 2026 amendment). In addition, Credit Fund Sub is required to pay an unused commitment fee of 0.50% depending on the usage of the Credit Fund Sub 2025 Facility provided that such commitment fee shall not be applicable to $200,000 of the commitments added on May 6, 2026 until August 6, 2026. Payments under the Credit Fund Sub 2025 Facility are made
quarterly. Subject to certain exceptions, the Credit Fund Sub 2025 Facility is secured by a first lien security interest in substantially all of the portfolio investments held by the Credit Fund Sub.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Outstanding borrowings, beginning of period$652,500 $430,000 $589,000 $— 
Borrowings293,347 19,000 433,847 449,000 
Repayments(59,000)(47,000)(136,000)(47,000)
Foreign currency translation(62)— (62)— 
Outstanding borrowings, end of period$886,785 $402,000 $886,785 $402,000 
Credit Fund Subscription Facility. On February 25, 2026, Credit Fund entered into a revolving credit facility (the “Credit Fund Subscription Facility”). The Credit Fund Subscription Facility provides for revolving borrowings and the issuance of letters of credit in an aggregate amount of up to $200,000, with an accordion feature allowing for increases up to $250,000, subject to certain conditions. Borrowings under the Credit Fund Subscription Facility bear interest at rates equal to SOFR plus 1.80%. The Credit Fund Subscription Facility also requires the payment of an unused commitment fee of 0.25% on undrawn amounts. The availability period extends through the maturity date of February 25, 2028, which may be extended once for up to 364 days at the election of Credit Fund, subject to certain conditions. The obligations under the Credit Fund Subscription Facility are secured by a first priority lien on the unfunded capital commitments of Credit Fund’s investors, the right to call capital from Credit Fund’s investors, the collateral accounts and other related assets.
Three Months Ended June 30,Six Months Ended June 30,
20262026
Outstanding borrowings, beginning of period$75,724 $— 
Borrowings40,000 115,724 
Repayments— — 
Outstanding borrowings, end of period$115,724 $115,724 
6. MIDDLE MARKET CREDIT FUND II, LLC
Overview
On November 3, 2020, the Company and CCLF entered into a limited liability company agreement to co-manage Credit Fund II, a Delaware limited liability company. Prior to the completion of the Credit Fund II Purchase, the Company and CCLF had approximately 84.13% and 15.87% economic ownership of Credit Fund II, respectively, and Credit Fund II was managed by a four-member board of managers, on which the Company and CCLF each had equal representation. Prior to the Credit Fund II Purchase, the Company’s membership interest in Credit Fund II was included within Investments–Controlled/Affiliated within the accompanying Consolidated Statements of Assets and Liabilities and Consolidated Schedules of Investments.
On February 10, 2025, the Company and CCLF entered into the Amended Credit Fund II LLCA. Pursuant to the terms of the Amended Credit Fund II LLCA, Credit Fund II distributed $2,667 to CCLF, and the Company contributed $140,000 in cash to Credit Fund II. Such distributions and contributions were accounted for as a reduction in CCLF's membership interest based on the net asset value of Credit Fund II as of December 31, 2024. On February 11, 2025, the Company completed the Credit Fund II Purchase, after which Credit Fund II became a wholly owned subsidiary of the Company and in connection therewith the CCLF board members resigned.
Middle Market Credit Fund II SPV, LLC (“Credit Fund II Sub”), a Delaware limited liability company, was formed on September 4, 2020. Credit Fund II Sub is a wholly owned subsidiary of Credit Fund II and is consolidated in Credit Fund II’s consolidated financial statements commencing from the date of its formation. Credit Fund II Sub primarily holds investments in first lien loans of middle market companies, which were pledged as security for the Credit Fund II Senior Notes.
On November 3, 2020, Credit Fund II Sub closed on the Credit Fund II Senior Notes (the “Credit Fund II Senior Notes”) with lenders, which has been amended from time to time, most recently on August 4, 2023. The Credit Fund II Senior Notes provided for secured borrowings totaling $157,500. On February 11, 2025, in connection with the Credit Fund II Purchase, Credit Fund II Sub repaid the remaining principal balance of the Credit Fund II Senior Notes in full.
Credit Fund II, the Company and CCLF entered into an administration agreement with Carlyle Global Credit Administration L.L.C., the administrative agent of Credit Fund II (in such capacity, the “Credit Fund II Administrative Agent”), pursuant to which the Credit Fund II Administrative Agent is delegated certain administrative and non-discretionary functions, is authorized to enter into sub-administration agreements at the expense of Credit Fund II with the approval of the board of managers of Credit Fund II, and is reimbursed by Credit Fund II for its costs and expenses and Credit Fund II’s allocable portion of overhead incurred by the Credit Fund II Administrative Agent in performing its obligations thereunder. As of February 11, 2025, the Credit Fund II Administrative Agreement was effectively terminated.
7. STRUCTURED CREDIT PARTNERS JV, LLC
Overview
On December 23, 2025, the Company and CARS, an affiliated BDC of the Company, together with Sixth Street (collectively the “SCP Members”), entered into an amended and restated limited liability company agreement, as amended from time to time, to co-manage Structured Credit Partners, a Delaware limited liability company that is not consolidated in the Company’s unaudited consolidated financial statements. Structured Credit Partners primarily invests in broadly syndicated loans and is co-managed by Carlyle and Sixth Street. The investments are financed by financing subsidiaries that include warehouses and collateralized loan obligations. It is the intention of the SCP Members that Structured Credit Partners’ capital be allocated over time approximately equally among financing subsidiaries managed by affiliates of the Company and affiliates of Sixth Street.
Structured Credit Partners is managed by eight board members, with each SCP Member having equal representation. Establishing a quorum for Structured Credit Partners’ board of managers requires at least four members to be present, including at least one representative appointed by each SCP Member, and actions of the board generally require unanimous approval of all members present at a meeting at which a quorum is established. The SCP Members hold equal voting interests through non-economic Class A membership interests, and economic interests are held through Class B and Class C membership interests, with economic ownership determined based on funded capital contributions and capital commitments. Capital contributions are made pursuant to board-approved capital calls, and no SCP Member is required to fund capital in excess of its capital commitment. In accordance with their respective economic interests, the SCP Members indirectly bear their allocable share of all expenses and other obligations of Structured Credit Partners.
Together with the other SCP Members, the Company co-invests through Structured Credit Partners. Investment opportunities for Structured Credit Partners are sourced primarily by affiliates of the SCP Members. Portfolio and investment decisions with respect to Structured Credit Partners must be unanimously approved by a quorum of Structured Credit Partners’ investment committee consisting of an equal number of representatives appointed by the Carlyle-affiliated SCP Members and the Sixth Street-affiliated SCP Members. Therefore, because the Company does not own more than 25% of the voting interests of Structured Credit Partners, the Company does not believe that it has control over Structured Credit Partners for accounting purposes or for purposes of the Investment Company Act.
Structured Credit Partners entered into an administration agreement with Carlyle Global Credit Administration L.L.C., the administrative agent of Structured Credit Partners, pursuant to which the administrative agent is delegated certain administrative and non-discretionary functions, is authorized to enter into sub-administration agreements at the expense of Structured Credit Partners with board approval, and is reimbursed by Structured Credit Partners for its costs, expenses, and allocable overhead incurred in performing its obligations thereunder.
Economic interests are based on funded capital contributions and capital commitments through Class B and Class C membership. The Class A, Class B, and Class C memberships are as follows:
Class A Capital CommitmentClass A Capital CalledClass B Capital CommitmentClass B Capital CalledClass C Capital CommitmentClass C Capital Called
Carlyle Secured Lending, Inc.$1 $1 $135,000 $69,384 $15,000 $— 
Carlyle Credit Solutions, Inc.1 1 15,000 7,709 135,000 — 
Sixth Street2 2 150,000 77,093 150,000 — 
Total$4 $4 $300,000 $154,186 $300,000 $— 
As of June 30, 2026, Structured Credit Partners had five subsidiaries. The wholly owned subsidiaries include Carlyle US CLO 2026-3, Ltd., a Cayman Islands Corporation and originally incorporated as Carlyle US CLO 2026-A Ltd., which was formed on December 23, 2025; Carlyle US CLO 2026-B, Ltd., a Cayman Islands Corporation, which was formed on January 2, 2026; Sixth Street CLO 32 Ltd., a Cayman Islands Corporation and originally incorporated as Sixth Street SCP Warehouse 2, Ltd., which was formed on January 14, 2026; and Sixth Street SCP Warehouse 3, Ltd., a Cayman Islands Corporation, which was formed on January 14, 2026. Sixth Street SCP Warehouse 4, Ltd. is a majority owned subsidiary, which was formed on February 3, 2026. Each subsidiary primarily invests in broadly syndicated loans. In accordance with U.S. GAAP, Structured Credit Partners consolidates subsidiaries over which it has a controlling financial interest in its unaudited consolidated financial statements, commencing from the date of their respective formation.
Below is certain summarized consolidated financial information for Structured Credit Partners as of June 30, 2026.
As of
June 30, 2026
Selected Consolidated Balance Sheet Information:(unaudited)
ASSETS
Investments, at fair value (amortized cost of $1,664,368)
$1,659,630 
Cash and cash equivalents(1)
130,014 
Other assets35,583 
Total assets$1,825,227 
LIABILITIES AND EQUITY
Debt and secured borrowings$1,353,020 
Dividend payable5,070 
Accrued expenses and other liabilities317,605 
Members’ Equity(2)
149,290 
Non-controlling interest(3)
242 
Total liabilities and equity$1,825,227 
(1)As of June 30, 2026, $9,743 of cash and cash equivalents was restricted.
(2)As of June 30, 2026, the fair value of the Company's ownership interest in the members' equity was $69,385.
(3)As of June 30, 2026, a third-party investor had a 5% economic interest in Sixth Street SCP Warehouse 4, Ltd., a consolidated subsidiary of Structured Credit Partners.
Three Months Ended June 30,Six Months Ended June 30,
20262026
Selected Consolidated Statements of Operations Information:(unaudited)(unaudited)
Total investment income$22,123 $23,573 
Expenses
Interest expense and credit facility fees16,442 16,973 
Other expenses368 1,168 
Total expenses16,810 18,141 
Net investment income (loss)5,313 5,432 
Net realized gain (loss) on investments103 133 
Net change in unrealized appreciation (depreciation) on investments29 (4,738)
Net increase (decrease) resulting from operations5,445 827 
Less: Net increase (decrease) resulting from operations attributable to non-controlling interest(13)(13)
Net increase (decrease) resulting from operations attributable to Structured Credit Partners JV, LLC$5,458 $840 
Below is a summary of Structured Credit Partners’ portfolio as of June 30, 2026:
As of
June 30, 2026
Total Investments(1)
$1,681,254 
Number of portfolio companies in Structured Credit Partners428 
Average amount per portfolio company(1)
$3,928 
Floating rate loans(2)
99.5 %
(1)At par/principal amount.
(2)Percent of total investments at fair value.
The industry and geography composition of investments as of June 30, 2026 was as follows:
IndustryAmortized CostFair Value% of Fair Value
Aerospace & Defense$77,745 $77,745 4.7 %
Auto Aftermarket & Services45,943 45,985 2.8 
Beverage & Food50,150 50,261 3.0 
Business Services177,077 176,405 10.6 
Capital Equipment105,834 105,845 6.4 
Chemicals, Plastics & Rubber28,790 28,912 1.7 
Construction & Building91,558 91,241 5.5 
Consumer Goods: Durable31,398 31,391 1.9 
Consumer Goods: Non-Durable27,749 27,792 1.7 
Consumer Services125,242 125,148 7.5 
Containers, Packaging & Glass44,160 44,139 2.7 
Diversified Financial Services212,220 210,609 12.7 
Energy: Electricity15,266 15,222 0.9 
Energy: Oil & Gas29,187 29,185 1.8 
Environmental Industries24,057 24,068 1.5 
Forest Products & Paper2,457 2,387 0.1 
Healthcare & Pharmaceuticals102,635 102,638 6.2 
High Tech Industries121,605 119,392 7.2 
Leisure Products & Services80,886 80,764 4.9 
Media: Advertising, Printing & Publishing12,856 12,930 0.8 
Media: Broadcasting & Subscription21,064 21,102 1.3 
Media: Diversified & Production28,004 28,023 1.7 
Metals & Mining3,976 4,000 0.2 
Retail25,826 25,717 1.5 
Telecommunications20,090 20,180 1.2 
Transportation: Cargo7,392 7,504 0.5 
Transportation: Consumer27,334 27,244 1.6 
Utilities: Electric10,158 10,209 0.6 
Utilities: Oil & Gas4,909 4,949 0.3 
Wholesale108,800 108,643 6.5 
Total$1,664,368 $1,659,630 100.0 %
GeographyAmortized CostFair Value% of Fair Value
Australia$1,980 $2,009 0.1 %
Canada16,308 16,208 1.0 
Germany15,482 15,573 0.9 
Ireland879 877 0.1 
Luxembourg19,504 19,393 1.2 
Netherlands22,163 22,267 1.3 
Switzerland631 658 0.0 
United Kingdom21,391 21,160 1.3 
United States1,566,030 1,561,485 94.1 
Total$1,664,368 $1,659,630 100.0 %
Debt
Structured Credit Partners and its subsidiaries are party to separate credit facilities and CLOs, as listed below. The following table details the principal amount and carrying amount of Structured Credit Partners’ debt and secured borrowings as of June 30, 2026.
As of
June 30, 2026
Carlyle US CLO 2026-3, Ltd.$642,250 
Carlyle US CLO 2026-B, Ltd.
76,243 
Sixth Street CLO 32, Ltd.
552,000 
Sixth Street SCP Warehouse 3, Ltd.
68,241 
Sixth Street SCP Warehouse 4, Ltd.
18,547 
Total Principal Amount Outstanding1,357,281 
Less: unamortized debt issuance costs(4,261)
Total Carrying Value$1,353,020 
As of June 30, 2026, Structured Credit Partners and its subsidiaries were in compliance with all covenants and other requirements of their respective credit facility agreements. On a weighted average basis, the credit facilities bear interest at a spread of SOFR + 1.12%. Below is a summary of the borrowings and repayments under the credit facilities for the respective periods.
Carlyle US CLO 2026-B, Ltd.
Sixth Street SCP Warehouse 3, Ltd.
Sixth Street SCP Warehouse 4, Ltd.
Total
Three Months Ended June 30, 2026
Outstanding borrowings, beginning of period$565 $— $— $565 
Borrowings75,678 68,241 18,547 162,466 
Repayments— — — — 
Outstanding borrowings, end of period$76,243 $68,241 $18,547 $163,031 
Six Months Ended June 30, 2026
Outstanding borrowings, beginning of period$— $— $— $— 
Borrowings76,243 68,241 18,547 163,031 
Repayments— — — — 
Outstanding borrowings, end of period$76,243 $68,241 $18,547 $163,031 
On April 22, 2026, Sixth Street SCP Warehouse 2, Ltd. closed as Sixth Street CLO 32, Ltd. upon the issuance of the Sixth Street CLO 32, Ltd.’s rated and subordinated notes. Sixth Street CLO 32, Ltd. has a reinvestment period ending on April 21, 2031 and a final maturity date of April 21, 2039. On April 30, 2026, Carlyle US CLO 2026-A Ltd. closed as Carlyle US CLO 2026-3, Ltd. upon the issuance of the Carlyle US 2026-3 Ltd.’s rated and subordinated notes. Carlyle US CLO 2026-3 Ltd. has a reinvestment period ending on April 15, 2031 and a final maturity date of April 15, 2039.
The following tables summarize the terms of the securitizations and principal amount outstanding as of June 30, 2026:
Carlyle US CLO 2026-3, Ltd.
As of
Debt TrancheCredit RatingReference RateSpreadJune 30, 2026
A-1AAASOFR1.16%$441,000 
A-2AAASOFR1.50%21,000 
BAASOFR1.60%68,250 
CASOFR1.80%40,250
DBBBSOFR3.00%45,500
EBBSOFR6.00%26,250
Total Principal Amount Outstanding642,250 
Less: unamortized debt issuance costs(1,903)
Total Carrying Value$640,347 
Sixth Street CLO 32, Ltd.
As of
Debt TrancheCredit RatingReference RateSpreadJune 30, 2026
A-1AAASOFR1.17%$378,000 
A-2AAASOFR1.50%24,000 
BAASOFR1.65%54,000 
CASOFR1.95%36,000
DBBBSOFR3.10%36,000
D-2BBBSOFR4.10%4,500
EBBSOFR6.00%19,500
Total Principal Amount Outstanding552,000 
Less: unamortized debt issuance costs(2,358)
Total Carrying Value$549,642