UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

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

 For the fiscal year ended December 31, 2024

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

 Commission File Number: 814-01363

 (Exact name of registrant as specified in its charter)

 Delaware

 83-0531326

 (State or Other Jurisdiction of

Incorporation or Organization)

 (I.R.S. Employer

Identification No.)

 717 Texas Avenue, Suite 2200, Houston, TX

 77002

 (Address of Principal Executive Offices)

 (Zip Code)

 (713) 493-2020

 (Registrant's telephone number, including
area code)

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

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 Common Stock, par value $0.001 per share

 KBDC

 NYSE

 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

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
past 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

the registrant has submitted electronically every Interactive Data File required to be submitted 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
such files). Yes No

the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging
growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting
company" and "emerging growth company" in 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.

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.

 If securities are registered
pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements.

any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
No

 As of February 21, 2025, the
registrant had 71,059,689 shares of common stock, $0.001 par value per share, issued and outstanding and there was no public market for
the registrant's shares.

 Documents Incorporated by Reference

 Kayne Anderson BDC, Inc. will
file with the Securities and Exchange Commission, not later than 120 days after the close of its fiscal year ended December 31, 2024,
a definitive proxy statement containing the information required to be disclosed under Part III of Form 10-K.

 Page

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [ Reserved ]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Consolidated Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accounting Fees and Services

 Item 15.

 Exhibits, Consolidated Financial Statements, and Schedules

 Item 16.

 Form 10-K Summary

 SIGNATURES

 i

 The following discussion and analysis should be
read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this Annual
Report on Form 10-K. Except as otherwise specified, references to "we," "us," "our," or the "Company"
refer to Kayne Anderson BDC, Inc., a Delaware corporation. We refer to KA Credit Advisors, LLC, our investment adviser, as our "Advisor."
The Advisor also serves as our administrator (the "Administrator"). We refer generally to Kayne Anderson Capital Advisors,
L.P., an affiliate of the Advisor, as "Kayne Anderson."

 Forward Looking Statements

 This Annual Report on Form 10-K contains
forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not
be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations,
estimates and projections about the company, current and prospective portfolio investments, the industry, beliefs and assumptions. Words
such as "anticipates," "expects," "intends," "plans," "will," "may,"
"continue," "believes," "seeks," "estimates," "would," "could,"
"should," "targets," "projects," and variations of these words and similar expressions are intended
to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties
and other factors, some of which are beyond control of the Company and difficult to predict and could cause actual results to differ materially
from those expressed or forecasted in the forward-looking statements, including:

 future operating results;

 business prospects and the prospects of portfolio companies in which we invest;

 the ability of our portfolio companies to achieve their objectives;

 changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets;

 the ability of our Advisor to locate suitable investments and to monitor and administer investments;

 the ability of the Advisor and its affiliates to attract and retain highly talented professionals;

 risk associated with possible disruptions in operations or the economy generally;

 the adequacy of our cash resources, financing sources and working capital;

 the timing of cash flows, interest, distributions and dividends, if any, from the operations of the companies in which the Company invests;

 the ability to maintain qualification as a business development company ("BDC") and as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code");

 the use of borrowings under our credit facilities and issuances of senior unsecured notes to finance a portion of the Company's investments;

 the adequacy, availability and pricing of financing sources and working capital for the Company;

 actual or potential conflicts of interest with the Advisor and its affiliates;

 contractual arrangements and relationships with third parties;

 the risk associated with an economic downturn, increased inflation, political instability, interest rate volatility, loss of key personnel, and the illiquid nature of investments of the Company; and

 the risks, uncertainties and other factors the Company identifies under " Part I – Item 1A. Risk Factors " and elsewhere in this Annual Report on Form 10-K.

 We have based the forward-looking statements included
in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation
to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to
you or through reports that we have filed or in the future may file with the United States Securities and Exchange Commission (the "SEC"),
including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current
reports on Form 8-K.

 Item 1. Business

 Overview

 Kayne
Anderson BDC, Inc. is a Delaware corporation formed to make investments in middle-market companies and commenced operations on February 5,
2021. We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated
as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we intend to qualify, annually, as a RIC under Subchapter
M of the Code.

 We
are a business development company ("BDC") that invests primarily in first lien senior secured loans, with a secondary focus
on unitranche and split-lien loans to private middle market companies. We are managed by our investment advisor KA Credit Advisors, LLC
(the "Advisor"), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P. ("Kayne Anderson"),
a prominent alternative investment management firm. Our Advisor operates within Kayne Anderson's middle market private credit platform
("KAPC" or "Kayne Anderson Private Credit"). Our Advisor is registered with the United States Securities and
Exchange Commission (the "SEC") under the Investment Advisers Act of 1940, as amended (the "Advisers Act").

 On
May 24, 2024, we completed our initial public offering ("IPO"), issuing 6,000,000 shares of common stock at a public offering
price of $16.63 per share. Net of underwriting fees and offering expenses, we received net cash proceeds of $92.4 million. The Company's
common stock began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "KBDC" on May 22,
2024.

 We generally intend to distribute, out of assets
legally available for distribution, 90% to 100% of our available earnings, on a quarterly or annual basis, as determined by our Board
of Directors (the "Board") in its sole discretion. The distributions we pay to our stockholders in a year may exceed our taxable
income for that year and, accordingly, a portion of such distributions equal to such excess of distributions over taxable income may constitute
a return of invested capital for federal income tax purposes. Such a return of capital (i.e., a distribution that represents a return
of an investor's original investment) would be nontaxable to the stockholder and would reduce its basis in its shares. As a result,
income tax related to the portion of such distributions treated as return of capital would be deferred until any subsequent sale of shares
of common stock. The specific tax characteristics of our distributions will be reported to stockholders after the end of the calendar
year.

 Investment Objective, Principal Strategy
and Investment Structures

 Our investment objective is to generate current
income and, to a lesser extent, capital appreciation. We intend to have nearly all of our debt investments in private middle market companies.
We use "private" to refer to companies that are not traded on a securities exchange and define "middle market companies"
as companies that, in general, generate between $10 million and $150 million of annual earnings before interest, taxes, depreciation and
amortization, or EBITDA. Further, we refer to companies that generate between $10 million and $50 million of annual EBITDA as "core
middle market companies" and companies that generate between $50 million and $150 million of annual EBITDA as "upper middle
market companies." We typically adjust EBITDA for non-recurring and/or normalizing items to assess the financial performance of
our borrowers over time.

 We intend to achieve our investment objective by investing primarily
in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. Under normal
market conditions, we expect at least 90% of our portfolio (including investments purchased with proceeds from borrowings under credit
facilities and issuances of senior unsecured notes) to be invested in first lien senior secured, unitranche and split-lien loans. Our
investment decisions are made on a case-by-case basis. We expect the remainder of our portfolio to be invested in second-lien loans, subordinated
debt or equity securities (including those purchased in conjunction with other cred investments). We expect that a majority of these debt
investments will be made in core middle market companies and will generally have stated maturities of three to six years. We expect that
the loans in which we principally invest will be to companies that are located in the United States. We determine the location of
a company as being in the United States by (i) such company being organized under the laws of one of the states in the United States;
or (ii) during its most recent fiscal year, such company derived at least 50% of its revenues or profits from goods produced
or sold, investments made, or services performed in the United States or has at least 50% of its assets in the United States.

 The
Advisor executes on our investment objective by (1) accessing the established loan sourcing channels developed by KAPC, which includes
an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2)
selecting investments within our middle market company focus, (3) implementing KAPC's underwriting process and (4) drawing upon
its experience and resources and the broader Kayne Anderson network. KAPC was established in 2011 and manages (directly and through affiliates)
assets under management ("AUM") of approximately $7.1 billion related to middle market private credit as of December 31,
2024. See " Risk Factors—Risks Relating to Our Business and Structure—We depend upon our Advisor and Administrator
for our success and upon their access to the investment professionals and partners of Kayne Anderson and its affiliates. Any inability
of the Advisor or the Administrator to maintain or develop these relationships, or the failure of these relationships to generate investment
opportunities, could adversely affect our business," and " — Risks
Relating to Our Investments — Limitations of investment due diligence expose us to investment risk."

 We intend to principally invest in the following
types of debt securities:

 First lien debt: Typically senior on a lien basis to the other liabilities in the issuer's capital structure with a first priority lien against substantially all assets of the borrower and often including a pledge of the capital stock of the business. The security interest ranks above the security interest of second lien lenders on those assets. These securities are typically floating rate investments priced with a spread to the reference rate (typically SOFR);

 Split-lien debt: Typically includes (i) a first lien on fixed and intangible assets of the borrower and often including a pledge of the capital stock of the business and (ii) a second lien on working capital assets. Used in conjunction with an asset based lender who has a first lien on the borrower's working capital assets. These securities are typically floating rate investments priced with a spread to the reference rate (typically SOFR).

 Unitranche debt: Combines features of first lien, second lien and subordinated debt, generally in a first lien position. These securities can generally be thought of as first lien investments beyond what may otherwise be considered "typical" first lien leverage levels, effectively representing a greater portion of the overall capitalization of the underlying business. These securities are typically structured as floating rate investments priced with a spread to the reference rate (typically SOFR).

 Senior
secured debt often has restrictive covenants for the purpose of pursuing principal protection and repayment before junior creditors as
covenants provide opportunities for lenders to take action following a covenant breach. The loans in which we principally invest have
financial maintenance covenants, which require borrowers to maintain certain financial performance criteria and financial ratios on a
monthly or quarterly basis. We do not expect to principally invest in "covenant-lite" loans; we use the term "covenant
lite" to refer generally to loans that do not have a customary set of financial maintenance covenants.

 Subject to our Advisor's discretion, based
on its belief about the pace and amount of investment activity in middle market companies, a portion of our portfolio may be comprised
of liquid credit investments (i.e., broadly syndicated loans). The percentage of our portfolio allocated to the liquid investment strategy
will be at the discretion of our Advisor. See " Risk Factors—Risks Relating to Our Investments—We are subject to risks
associated with our investment and trading of liquid credit (i.e., broadly syndicated loans)."

 We
invest in debt that is typically not rated by any rating agency, but we believe that if such investments were rated, they would be below
investment grade, which are sometimes referred to as "high yield bonds" or "junk bonds." See " Risk Factors — Risks
Relating to Our Investments — We invest in highly leveraged companies, which could cause us to lose all or a part of
our investment in those companies," In addition, we have a maturity policy between three to six years for our debt
investments. See " Risk Factors — Risks Relating to Our Investments — Our portfolio
companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity."

 Investment Portfolio

 Our
portfolio is currently comprised of a broad mix of loans, with diversity among investment size and industry focus. The Advisor's
team of professionals conducts due diligence on prospective investments during the underwriting process and is involved in structuring
the credit terms of our private middle market investments. Once an investment has been made, our Advisor closely monitors each portfolio
investment and takes a proactive approach to identify and address sector or company specific risks. The Advisor seeks to maintain a regular
dialogue with portfolio company management teams (as well as their owners, the majority of whom are private equity firms, where applicable),
reviews detailed operating and financial results on a regular basis (typically monthly or quarterly) and monitors current and projected
liquidity needs, in addition to other portfolio management activities. There are no assurances that we will achieve our investment objectives.

 Listed below are our top ten portfolio companies
and industries represented as a percentage of total long-term investments as of December 31, 2024:

 Industry

 long-term
 investments

 $
 41.0

 2.0
 %

 Dusk Acquisition II Corporation (Motors & Armatures, Inc. – MARS)

 $
 39.9

 2.0
 %

 $
 39.5

 2.0
 %

 M2S Group Intermediate Holdings, Inc.

 $
 37.7

 1.9
 %

 $
 37.3

 1.9
 %

 $
 35.5

 1.8
 %

 $
 35.1

 1.7
 %

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 $
 34.1

 1.7
 %

 Genuine Cable Group, LLC

 $
 34.1

 1.7
 %

 $
 33.6

 1.7
 %

 $
 367.8

 18.4
 %

 As a BDC, at least 70% of our assets must be the
type of "qualifying" assets listed in Section 55(a) of the 1940 Act, as described herein, which are generally privately-offered
securities issued by U.S. private or thinly-traded companies. We may also invest up to 30% of our portfolio opportunistically in "non-qualifying"
portfolio investments. As of December 31, 2024, 9.0% of the Company's total assets were in non-qualifying investments.

 Market Opportunity

 We
believe that our investments represent attractive opportunities as these investments (i) generate what we believe are attractive yields
(based on our Advisor's assessment of the relative risk profile of these investments), (ii) make interest payments to us and (iii)
typically rank ahead of other debt instruments in the borrower's capital structure (98.0% of our portfolio consisted of first lien
senior secured loans as of December 31, 2024), as described above in "—Investment Objective, Principal Strategy and Investment
Structures ".

 Long-Term Demand Drivers in the U.S. Middle
Market

 We expect that a number of factors will continue
to drive strong demand for middle market senior credit, both by private equity owned and non-private equity owned companies, for the foreseeable
future, including: (i) the sheer scale of the U.S. middle market and (ii) a significant amount of un-invested middle market private equity
capital.

 The
universe of U.S. middle market companies (as defined by the National Center for the Middle Market and including all businesses with revenues
from $10.0 million to $1.0 billion) consists of nearly 200,000 potential borrowers, a substantial portion of which we believe will continue
to require access to debt capital to refinance existing debt, support growth and finance acquisitions. Together, these businesses represent
approximately one-third of the U.S. private sector gross domestic product ("GDP") making them equivalent to the size of the
third largest economy in the world on a standalone basis. (Source: National Center for The Middle Market's Mid-Year 2024 Middle
Market Indicator).

 Private equity firms investing in these businesses
held more than $1.5 trillion in un-invested capital ("dry powder") as of February 2025. We expect these private equity firms
will continue to pursue acquisitions and will seek to fund a portion of these transactions with debt. (Source: Preqin).

 Long-Term Shift to Private, Non-Bank Financings
in the U.S. Middle Market

 We believe that the supply of capital to middle
market borrowers and private equity firms acquiring these businesses has shifted substantially to private, non-bank lenders such as ourselves
due to (i) a long-term regulatory trend that has significantly reduced bank participation in leveraged finance due to stricter federal
leveraged lending guidelines, (ii) consolidation of commercial banks over the last two decades and (iii) direct lending increasing share
relative to broadly syndicated financings. We believe that some of this shift away from banks and broadly syndicated financings can be
attributed to borrowers valuing specific qualities of non-bank lenders including: (i) a focus on ongoing partnership as opposed to transactional
arrangements, (ii) more sophisticated underwriting and originations teams and (iii) a lack of reliability exhibited by banks and more
liquid market segments during periods of distress.

 In sum, we believe there is (a) a substantial
demand for loans, and (b) a substantial marketplace shift towards private, non-bank lenders. We anticipate that these trends should benefit
direct lenders such as ourselves.

 Middle Market Attractiveness

 We
intend to have nearly all of our debt investments in private middle market companies. We believe that lending to middle market companies
(particularly in senior-focused portions of the capital structure) presents a compelling investment opportunity.

 First, senior debt investments are made at the
top of the capital structure and are repaid before unsecured creditors and equity investors. Additionally, the types of investments in
which we participate will typically include anywhere from one to five lenders in a given debt financing thereby potentially limiting consensus
risk, which is important for swift action and potential recovery to lenders in distressed scenarios.

 Second, we believe that these markets are underserved
by traditional banking sources. We believe that this lack of financing sources leads middle market companies to offer attractive (i) economic
terms such as pricing, fees and prepayment premiums and (ii) structural terms such as stricter covenants and more fulsome collateral packages
than debt investments in public or much larger private companies.

 Competitive Strengths

 Our Advisor utilizes KAPC's direct lending platform
to pursue investment opportunities. The leadership team of KAPC has invested this market across multiple platforms (e.g., not only as
part of KAPC) and economic cycles, working directly together as a team for the better part of three decades. This experience over multiple
decades allows KAPC to focus on transactions in markets where it has substantial experience and where it can bring its expertise in negotiating
and structuring investments. Other specific competitive strengths of KAPC which inure to the benefit of KBDC include:

 Leading
U.S. Core Middle Market Debt Platform. We have benefited and expect to continue to benefit from our relationship with KAPC's
large direct lending platform through our Advisor. Since its inception through December 31, 2024, KAPC has deployed nearly $12.7 billion
of capital across 426 investments in 207 portfolio companies. Our Advisor (or an affiliate thereof) has been lead agent or co-agent in
approximately 76% of investments since the inception of KAPC.

 Experienced
Credit Investors with Long Track Record. Core middle market direct lending is led by Ken Leonard (Co-CEO of the Company), Doug Goodwillie
(Co-CEO of the Company) and Andy Marek (Managing Partner of KAPC), who have a combined 90+ years of lending experience, having collectively
completed transactions representing over $17.2 billion in underwritten middle market loan commitments across multiple credit cycles since
2000. These three individuals are primarily responsible for the day-to-day operations of KAPC and have worked together directly since
2002 while Ken Leonard and Andy Marek have worked together since the late 1980's. Ken Leonard and Doug Goodwillie are primarily
responsible for the day-to-day operations of KBDC.

 The Advisor's investment committee consists
of four members (Terry Quinn, Paul Blank, Doug Goodwillie and Ken Leonard) with average experience in credit investing in excess of 30
years. The Advisor's investment committee has overall responsibility for evaluating and unanimously approving the Company's
investments and portfolio allocations, subject to the oversight of our Board.

 Sourcing
Advantage and Well-Established Direct Relationship Model. We believe that KAPC's relationship-based sourcing model provides
strong access to proprietary transaction flow, allowing us to be highly selective in the transactions that we pursue. For the period
2021 through December 31, 2024 (and excluding investments in broadly syndicated loans), approximately 63% of opportunities sourced by
our Advisor and 88% of opportunities executed by our Advisor were done so without the presence of a financial intermediary, a fact pattern
placing specific emphasis on long-term relationships, reputation and certainty of execution with transaction counterparties. Importantly,
we believe (based on KAPC's experience) that our existing portfolio will continue to be an engine of new investment opportunities
and will support investment flows even when broader M&A markets may have slowed.

 We believe that our direct sourcing model creates
repeat business and sticky relationships. Under this model, since inception (and excluding investments in broadly syndicated loans), (i)
greater than 90% of KAPC's investments are in companies sponsored by private equity firms (approximately 99% of the Company's
investments as of December 31, 2024), (ii) approximately 58% of KAPC's investments were made with repeat private equity sponsors
and (iii) over 110 private equity sponsors have partnered with KAPC to provide debt financing to their portfolio companies.

 Focus on Investing in Core Middle Market.
With extensive market knowledge and experience, we believe we are well positioned to capitalize on the current market conditions in which
many middle market companies and private equity sponsors need trusted sources of financing.

 Value-Lending Philosophy. We intend to
avoid high-growth markets as, in our management's experience, that growth profile attracts substantial capital formation and, in
turn, new competition, leading to the potential for longer-term uncertainty and industry upheaval.

 Disciplined Diligence Processes, Regimented
Portfolio Monitoring and Active Management. Our Advisor completes substantial hands-on diligence throughout its investment process,
which is centered around addressing a potential portfolio company's industry trends, competitive dynamics, customer base, economic
drivers, historical financial performance, financial projections, other factors such as legal and environmental assessments as well as
the strengths and weaknesses of management and / or the private equity sponsor or ownership. We target a lead or co-lead agent role in
a majority of our investments (KAPC has been lead or co-lead agent in approximately 76% of investments since inception), typically enabling
us to lead the diligence, documentation and workout processes. Since inception, KAPC has reported realized loss rates of approximately
0.2% of average outstanding investments on an annualized basis.

 Competition

 We compete with a number of BDCs and investment funds
(both public and private), 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
and marketing resources than we do. We believe we are able to compete with these entities primarily on the basis of the experience and
contacts of our management team, our responsive and efficient investment analysis and decision-making processes, the investment terms
we offer, and our model of investing in companies participating in industries which we know well.

 We believe that some of our competitors may make
loans with interest rates that will be lower than the rates that we offer. We do not seek to compete solely on the interest rates that
we offer to potential portfolio companies. For additional information concerning competitive risks, see " Item 1A – Risk
Factors. "

 Corporate Structure

 We are a Delaware corporation and commenced operations
on February 5, 2021. The following chart depicts our ownership structure:

 (1)

 From time to time we may form wholly-owned subsidiaries to facilitate our normal course of business investing activities.

 Private

 Between February 2021 and December 2023, we
executed subscription agreements with investors on sixteen occasions as part of one continuous private placement offering obligating
those investors to purchase shares of common stock representing total aggregate capital commitments of $1.047 billion. The
execution of the subscription agreements were effected as part of one continuous private placement offering exempt from the
registration requirements of the Securities Act pursuant to Section 4(a)(2) thereunder. Pursuant to the private placement
offering that began on February 5, 2021, we called capital under the terms of those subscription agreements, and we issued
shares of common stock to investors on thirteen funding occasions between February 2021 and April 2024 in an aggregate amount
of $1.047 billion.

 On March 22, 2024, we delivered the final
capital drawdown notice to our stockholders relating to the sale of shares of common stock in the private placement. Following this
capital call, we did not have any remaining undrawn capital commitments and the investors' obligations to purchase additional shares
of common stock were exhausted. This final capital drawdown notice completed our pre-initial public offering capital raise private
placement offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"),
pursuant to Section 4(a)(2) thereunder.

 Initial
Public Offering

 On
May 24, 2024, we completed our initial public offering ("IPO"), issuing 6,000,000 shares of our common stock at
a public offering price of $16.63 per share. Net of underwriting fees and offering expenses, we received net cash proceeds, before offering
expenses, of $92.4 million. The Company's common stock began trading on the New York Stock Exchange ("NYSE") under the
ticker symbol "KBDC" on May 22, 2024.

 Stock Repurchase Plan

 On May 21, 2024, the Company entered into a share
repurchase plan, or the Company 10b5-1 Plan, to acquire up to $100 million in the aggregate of the Company's Common Stock at prices
below the Company's net asset value per share over a specified period, in accordance with the guidelines specified in Rule 10b5-1
and Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company 10b5-1 Plan was approved
by the Board of Directors on March 6, 2024. Our 10b5-1 Plan requires Morgan Stanley Corporation as the Company's agent, to repurchase
Common Stock on its behalf when the market price per share is below the most recently reported net asset value per share (including any
updates, corrections or adjustments publicly announced by the Company to any previously announced net asset value per share, including
any distributions declared). Under the Company 10b5-1 Plan, the volume of purchases would be expected to increase as the price of the
Company's Common Stock declines, subject to volume restrictions. The timing and amount of any share repurchases will depend on the
terms and conditions of the Company 10b5-1 Plan, the market price of the Company's Common Stock and trading volumes, and no assurance
can be given that Common Stock be repurchased in any particular amount or at all. The repurchase of shares pursuant to the Company 10b5-1
Plan is intended to satisfy the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act, and will otherwise be subject to applicable
law, including Regulation M, which may prohibit repurchases under certain circumstances. The Company 10b5-1 Plan commenced beginning 60
calendar days following the end of the "restricted period" under Regulation M and will terminate upon the earliest to occur
of (i) the close of business on May 24, 2025, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased
under the Company 10b5-1 Plan equals $100 million and (iii) the occurrence of certain other events described in the Company 10b5-1 Plan.

 The "restricted period" under Regulation
M ended upon the closing of the Company's IPO and, therefore, the Common Stock repurchases described above began on July 23, 2024.

 During the year ended December 31, 2024, the Company repurchased 94,613
shares under our 10b5-1 Plan for a total of $1.5 million.

 Kayne Anderson, Kayne Anderson Private Credit
and The Advisor

 Kayne Anderson

 Founded in 1984, Kayne Anderson is a prominent alternative
investment management firm which is registered with the SEC under the Advisers Act, focused on real estate, credit and infrastructure/energy.
Kayne Anderson provides corporate and management services (such as information technology, human resources, compliance and legal services)
to the Advisor.

 As
of December 31, 2024, investment vehicles managed or advised by Kayne Anderson had over $36 billion in assets under management ("AUM")
for institutional investors, family offices, high net worth and retail clients. Kayne Anderson has approximately 350 professionals located
across five offices across the U.S. The firm has approximately 150 investment professionals, approximately 33 of whom are dedicated to
credit investing.

 Kayne Anderson Private Credit

 KAPC is Kayne Anderson's line of business focused
on private credit that operates various fund vehicles targeting middle market first lien senior secured, unitranche, and split-lien loans.
KAPC was established in 2011 and manages (indirectly through affiliates) AUM of approximately $7.1 billion related to middle market private
credit as of December 31, 2024.

 KAPC's integrated and scaled platform combines
direct loan origination, strong fundamental credit analysis and relative-value perspective.

 The Advisor – KA Credit Advisors,
LLC

 Our
investment activities are managed by our Advisor, an indirect controlled subsidiary of Kayne Anderson, and the Advisor operates within
KAPC's line of business. The Advisor is an investment advisor registered with the SEC under the Advisers Act pursuant to the Investment
Advisory Agreement. In accordance with the Advisors Act, our Advisor is responsible for originating prospective investments, conducting
research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments
and monitoring our investments and portfolio companies on an ongoing basis. The Advisor benefits from the scale and resources of Kayne
Anderson and specifically KAPC. While we do not have any employees, the Advisor and its affiliates have a team of approximately 33 investment
professionals who are primarily focused on credit investments. The investment team is supported by a team of finance, legal, compliance,
operations and administrative professionals.

 The Advisor executes on our investment objective
by (1) accessing the established loan sourcing channels developed by KAPC, which includes an extensive network of private equity firms,
other middle market lenders, financial advisors, intermediaries and management teams, (2) selecting investments within our middle market
company focus, (3) implementing KAPC's underwriting process and (4) drawing upon its experience and resources and the broader Kayne
Anderson network.

 The Advisor's investment committee has overall
responsibility for evaluating and unanimously approving the Company's investments, and its portfolio allocations, subject to the
oversight of our Board. The Advisor's investment committee review process is intended to bring the diverse experience and perspectives
of the Advisor's investment committee members to the analysis and consideration of every investment. The Advisor's investment
committee currently consists of Terrence J. Quinn, Vice Chairman of Kayne Anderson and Vice Chair of the Company; Paul S. Blank, President
and Chief Operating Officer of Kayne Anderson; Douglas L. Goodwillie, Co-Head of Private Credit at Kayne Anderson and Co-Chief Executive
Officer of the Company; and Kenneth B. Leonard, Co-Head of Private Credit at Kayne Anderson and Co-Chief Executive Officer of the Company.
The Advisor's investment committee also determines appropriate investment sizing and mandates ongoing monitoring requirements. Douglas
L. Goodwillie and Kenneth B. Leonard, each a Co-Chief Executive Officer of the Company, are jointly and primarily responsible for the
day-to-day management of the Company's portfolio.

 In addition to reviewing investments, the Advisor's
investment committee meetings serve as a forum to discuss credit views and outlooks. The Advisor's investment committee also reviews
potential transactions and deal flow on a regular basis. Members of the investment team are encouraged to share information and views
on credit with the committee early in their analysis. We believe this process improves the quality of the analysis and enables investment
team members to work more efficiently.

 We make investments alongside certain entities
and accounts advised by our Advisor and its affiliates. Under the 1940 Act, we are prohibited from knowingly participating in certain
joint transactions with our affiliates without the prior approval of the independent directors and, in some cases, prior approval by the
SEC. However, we generally make investments alongside affiliated entities and accounts pursuant to exemptive relief granted by the SEC
to us, our Advisor, and certain of our affiliates on August 10, 2023. Pursuant to such exemptive relief, and subject to certain conditions,
we are permitted to co-invest in the same security with our affiliates in a manner that is consistent with our investment objective, investment
strategy, regulatory consideration and other relevant factors. If opportunities arise that would otherwise be appropriate for us and an
affiliate to purchase different securities in the same issuer, our Advisor will need to decide which account will proceed with such investment.
Our Advisor's investment allocation policy incorporates the conditions of exemptive relief to seek to ensure that investment opportunities
are allocated in a manner that is fair and equitable. See " Risk Factors — Risks Relating to Our Business and Structure
— We generally may make investments that could give rise to a conflict of interest and our ability to enter into transactions with
our affiliates will be restricted."

 The principal executive offices of our Advisor
are located at 717 Texas Avenue, Suite 2200, Houston, Texas, 77002.

 Investment Advisory Agreement

 On
March 6, 2024, the Company entered into an amended and restated investment advisory agreement with the Advisor (the "Amended
Investment Advisory Agreement"), which became effective when we closed our initial public offering ("IPO"). Under the
Amended Investment Advisory Agreement, the base management fee calculated at an annual rate of 1.00% and the incentive fee on income is
subject to a twelve-quarter lookback quarterly hurdle rate of 1.50% and is subject to an Incentive Fee Cap (as defined below) based
on the Company's Cumulative Pre-Incentive Fee Net Return (as defined below).

 The cost of both the management fee and the incentive fee under the
Amended Investment Advisory Agreement are ultimately borne by common stockholders. The Amended Investment Advisory Agreement was approved
by the Board on March 6, 2024. Unless earlier terminated, the Amended Investment Advisory Agreement will renew automatically for
successive annual periods, provided that such continuance is specifically approved at least annually by our Board including a majority
of Independent Directors or the vote of a majority of our outstanding voting securities.

 As discussed in more detail below,
on March 6, 2024, the Advisor entered into the Amended Investment Advisory Agreement (effective upon the closing of the IPO) to include
a three-year total return lookback feature on the income incentive fee. This lookback feature provides that the Advisor's income
incentive fee may be reduced if the Company's portfolio experiences aggregate write-downs or net capital losses during the
applicable Trailing Twelve Quarters (as defined below). On March 6, 2024, the Advisor also entered into a fee waiver agreement (the
"Fee Waiver Agreement") for the waivers of (i) the income incentive fee for three calendar quarters commencing in the
calendar quarter the IPO was completed and (ii) a portion of the base management fee for one year following the completion of the
IPO. The Fee Waiver Agreement became effective upon the closing of the IPO. Amounts waived by the Advisor pursuant to the Fee
Waiver Agreement are not subject to recoupment by the Advisor. The waivers of the base management fee and incentive income fee pursuant
to the Fee Waiver Agreement may only be terminated by the Board and may not be terminated by the Advisor. The Fee Waiver Agreement is
contractual in nature.

 Base Management Fee

 Effective
upon the closing of the IPO, the base management fee pursuant to the Amended Investment Advisory Agreement is calculated at an annual
rate of 1.00% of the fair market value of the Company's investments. Since the IPO occurred on a date other than the first day
of a calendar quarter, the base management fee was calculated for such calendar quarter at a weighted rate based on the fee rates applicable
before and after the closing of the IPO based on the number of days in such calendar quarter before and after the closing of the
IPO. Pursuant to the Fee Waiver Agreement, effective upon the closing of the IPO, the Advisor entered into an agreement for the contractual
waiver of the base management fee at an annual rate of 0.25% for one year following the completion of the IPO.

 The
base management fee under the Amended Investment Advisory Agreement is payable quarterly in arrears and calculated based on the average
of the Company's fair market value of investments, at the end of the two most recently completed calendar quarters, including,
in each case, assets purchased with borrowings under credit facilities and issuances of senior unsecured notes, but excluding cash, U.S. government
securities and commercial paper instruments maturing within one year of purchase. Base management fees for any partial quarter will be
appropriately pro-rated.

 Incentive Fee

 The
Company will also pay the Advisor an incentive fee. The incentive fee will consist of two parts — an incentive fee on
income and an incentive fee on capital gains. Described in more detail below, these components of the incentive fee will be largely independent
of each other with the result that one component may be payable even if the other is not.

 Incentive Fee on Income

 The
incentive fee based on income (the "income incentive fee") under the Amended Investment Advisory Agreement is determined
and paid quarterly in arrears in cash (subject to the limitations described in " Payment of Incentive Fees "
below).

 Under the Amended Investment Advisory Agreement, the first part of the income
incentive fee is calculated and payable quarterly in arrears based on the Company's pre-incentive fee net investment
income as defined in the Amended Investment Advisory Agreement. Pre-incentive fee net investment income means, as the context
requires, either the dollar value of, or percentage rate of return on the value of, the Company's net assets at the beginning
of each applicable calendar quarter from 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 the calendar quarter, minus the Company's operating
expenses accrued for the quarter (including the management fee, expenses payable under the Administration Agreement (as defined
below), and any interest expense or fees on any credit facilities or senior unsecured notes and dividends paid on any issued and
outstanding preferred shares, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case
of investments with a deferred interest feature (such as original issue discount, debt instruments with pay in kind
("PIK") interest and zero coupon securities), accrued income that the Company has not yet received in cash.
Pre-incentive fee net investment income excludes any realized capital gains, realized capital losses or unrealized capital
appreciation or depreciation.

 Following
the closing of the IPO, the Company is required to pay an income incentive fee of 15.0%, with a 1.50% quarterly hurdle and 100% catch-up.
Pursuant to the Fee Waiver Agreement, the Advisor waived its right to receive an income incentive fee during the three calendar quarters
commencing with the calendar quarter in which the IPO was completed and amounts waived by the Advisor pursuant to the Fee Waiver Agreement
are not subject to recoupment by the Advisor.

 Effective
upon the closing of the IPO, the Company will pay the Advisor an income incentive fee based on its aggregate pre-incentive fee net
investment income (as described above), with respect to (i) the calendar quarter ending June 30, 2024 (the "First Calendar
Quarter") and (ii) each subsequent calendar quarter, with the then, current calendar quarter and the eleven preceding calendar
quarters beginning with the calendar quarter after the First Calendar Quarter (or the appropriate portion thereof in the case of any of
the Company's first eleven calendar quarters that commence after the First Calendar Quarter) (those calendar quarters after the
First Calendar Quarter, the "Trailing Twelve Quarters").

 For
the First Calendar Quarter, pre-incentive fee net investment income in respect of the First Calendar Quarter was compared to a hurdle
rate of 1.50% (6.00% annualized). The income incentive fee for the First Calendar Quarter was determined as follows:

 no income incentive fee is payable to the Advisor if the aggregate pre-incentive fee net investment income for the First Calendar Quarter does not exceed that hurdle rate;

 100% of the aggregate pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds that hurdle rate, but is less than a quarterly rate of 1.6667% for the portion of the First Calendar Quarter before the IPO and a quarterly rate of 1.7647% for the portion of the First Calendar Quarter after the IPO, referred to the "catch-up." The "catch-up" is meant to provide the Advisor with 10.0% of the Company's pre-incentive fee net investment income for the portion of the First Calendar Quarter before the IPO and 15.0% for the balance of that First Calendar Quarter, as if the hurdle rate did not apply; and

 10.0% of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.6667% for the portion of the First Calendar Quarter before the IPO and 15.0% of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.7647% for the balance of the First Calendar Quarter.

 Commencing
with the calendar quarter beginning immediately after the First Calendar Quarter, subject to the Incentive Fee Cap (described below),
the pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarters is compared to a "Hurdle Rate"
equal to the product of (i) the hurdle rate of 1.50% per quarter (6.00% annualized) and (ii) the sum of our net assets at the
beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters. The income incentive fee for each calendar
quarter will be determined as follows:

 no income incentive fee is payable to the Advisor in any
calendar quarter in which aggregate pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarters
does not exceed the Hurdle Rate;

 100% of the aggregate pre-incentive fee net investment
income in respect of the Trailing Twelve Quarters with respect to that portion of such pre-incentive fee net investment income,
if any, that exceeds the Hurdle Rate, but is less than or equal to an amount, which we refer to as the "Catch-up Amount,"
determined on a quarterly basis by multiplying 1.7647% by the Company's net asset value at the beginning of each applicable calendar
quarter comprising the relevant Trailing Twelve Quarters (after making appropriate adjustments to the Company's net asset value
at the beginning of each applicable calendar quarter for all issuances by the Company of shares of its common stock, including issuances
pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter); and

 15.0% of the aggregate pre-incentive fee net investment
income in respect of the Trailing Twelve Quarters that exceeds the Catch-up Amount.

 Commencing
with the quarter that begins immediately after the First Calendar Quarter, each income incentive fee became subject to an "Incentive
Fee Cap" that in respect of any calendar quarter is an amount equal to 15.0% of the Cumulative Pre-Incentive Fee Net Return
(as defined herein) during the Trailing Twelve Quarters less the aggregate income incentive fees that were paid to the Advisor in the
preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve
Quarters. In the event the Incentive Fee Cap is zero or a negative value then no income incentive fee shall be payable and if the Incentive
Fee Cap is less than the amount of income incentive fee that would otherwise be payable, the amount of income incentive fee shall be
reduced to an amount equal to the Incentive Fee Cap.

 "Cumulative
Pre-Incentive Fee Net Return" means (x) with respect to the First Calendar Quarter, the sum of pre-incentive fee
net investment income in respect of the First Calendar Quarter, (y) with respect to the relevant Trailing Twelve Quarters, the pre-incentive fee
net investment income in respect of the relevant Trailing Twelve Quarters minus any Net Capital Loss (as defined below), if any, in respect
of the relevant Trailing Twelve Quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company will pay
no income incentive fee to the Advisor for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is a positive value
but is less than the income incentive fee that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap)
calculated as described above, the Company will pay an income incentive fee to the Advisor equal to the Incentive Fee Cap for such quarter.
If, in any quarter, the Incentive Fee Cap for such quarter is equal to or greater than the income incentive fee that is payable to the
Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an income
incentive fee to the Advisor equal to the incentive fee calculated as described above for such quarter without regard to the Incentive
Fee Cap.

 "Net
Capital Loss" in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether
realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

 These calculations are prorated for
any period of less than three months and adjusted for any share issuances or repurchases during the relevant quarter. In no event
will the amendments to the income incentive fee to include the three year income and total return lookback features allow the Advisor
to receive greater cumulative income incentive fees under the Amended Investment Advisory Agreement than it would have under the Investment
Advisory Agreement. Amounts waived by the Advisor pursuant to the Fee Waiver Agreement are not subject to recoupment by the Advisor.

 The following is a graphical representation of the calculations of
the income incentive fee:

 Quarterly Incentive Fee on

 Pre-Incentive Fee Net Investment Income

 Prior to the IPO

 (expressed as a percentage of the value of net
assets)

 Pre-Incentive Fee Net Investment Income

 0%

 1.50%

 1.6667%

 Quarterly Incentive Fee

 0%

 100%

 10%

 Quarterly Incentive Fee on

 Pre-Incentive Fee Net Investment Income

 After to the IPO

 (expressed as a percentage of the value of net assets)

 Pre-Incentive Fee Net Investment Income

 0%

 1.50%

 1.7647%

 Quarterly Incentive Fee

 0%

 100%

 15%

 Incentive Fee on Capital Gains

 The
incentive fee on capital gains (the "capital gains incentive fee") is calculated and payable in arrears in cash as follows:

 15.0% of the Company's realized capital gains, if any,
on a cumulative basis from formation through the end of a given calendar year or upon termination of the Investment Advisory Agreement,
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.

 Payment of Incentive Fees

 Prior to the IPO, any incentive fees earned by the Advisor accrued
as earned but only became payable in cash to the Advisor upon closing of the IPO. The Company incurred incentive fees on income of
$16.8 million that became payable upon closing of the IPO.

 Administration Agreement

 On February 5, 2021, we entered into an administration agreement (the
"Administration Agreement") with our Advisor, which serves as our administrator (the "Administrator") and provides
or oversees the performance of its required administrative services and professional services rendered by others, which will include (but
are not limited to) accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation
and filing of its tax returns, and preparation of financial reports provided to our stockholders and filed with the SEC.

 On February 19, 2025, the Board approved an additional one-year term
of the Administration Agreement through March 15, 2026.

 We reimburse the Administrator for its costs
and expenses incurred in performing its obligations under the Administration Agreement, which may include its allocable portion of office
facilities, overhead, and compensation paid to or compensatory distributions received by its officers (including our Chief Compliance
Officer and Chief Financial Officer) and its respective staff who provide services to the Company. As the Company reimburses the Administrator
for its expenses, such costs (including the costs of sub-administrators) will be ultimately borne by common stockholders. The Administrator
does not receive compensation from the Company other than reimbursement of its expenses. The Administration Agreement may be terminated
by either party with 60 days' written notice.

 Since the inception of the Company, the Administrator has engaged sub-administrators
to assist the Administrator in performing certain of its administrative duties. During this period, the Administrator has not sought reimbursement
of its expenses other than expenses incurred by the sub-administrators. However, the Administrator has a contractual right to seek reimbursement
for its costs and expenses incurred in performing its obligations under the Administration Agreement and may do so in the future. On March
28, 2023, the Administrator engaged Ultimus Fund Solutions, LLC under a sub-administration agreement. Under the terms of the sub-administration
agreement, Ultimus Fund Solutions, LLC provides fund administration and fund accounting services. Since March 28, 2023, the Company has
paid fees to Ultimus Fund Solutions, LLC, which constitute reimbursable expenses under the Administration Agreement. The Administrator
may enter into additional sub-administration agreements with third parties to perform other administrative and professional services on
behalf of the Administrator.

 Risk Management

 Broad Diversification. We diversify
our investments by company, asset type, investment size and industry focus. Furthermore, we must meet certain diversification tests in
order to qualify as a RIC for U.S. federal income tax purposes (the "Diversification Tests"). See " Item 1. Business
— Material U.S. Federal Income Tax Considerations."

 Hedging. We may hedge against
interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements
of the 1940 Act and to applicable CFTC regulations. While hedging activities may insulate us against adverse changes in interest rates,
they may also limit our ability to participate in benefits of such changes with respect to our portfolio of investments. The Advisor will
claim relief from CFTC registration and regulation as a commodity pool operator with respect to our operations, with the result that we
will be limited in our ability to use futures contracts or options on futures contracts or engage in swap transactions. Specifically,
we will be subject to strict limitations on using such derivatives other than for hedging purposes, whereby the use of derivatives not
used solely for hedging purposes is generally limited to situations where (i) the aggregate initial margin and premiums required
to establish such positions do not exceed five percent of the liquidation value of our portfolio, after taking into account unrealized
profits and unrealized losses on any such contracts we have entered into; or (ii) the aggregate net notional value of such derivatives
does not exceed 100% of the liquidation value of our portfolio.

 Regulation as a Business Development Company

 General

 A BDC is a specialized investment vehicle that
elects to be regulated under the 1940 Act as an investment company but is generally subject to less onerous requirements than other registered
investment companies under a regime designed to encourage lending to U.S.-based small and mid-sized businesses. Unlike many
similar types of investment vehicles that are restricted to being private entities, the stock of a BDC is permitted to trade in the public
equity markets. BDCs are also eligible to elect to be treated as a RIC under Subchapter M of the Code. A RIC typically does not incur
significant entity-level income taxes, because it is generally entitled to deduct distributions made to its stockholders.

 Qualifying Assets

 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 proposed 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. An eligible portfolio company is defined in the 1940 Act as any issuer which:

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

 (b)
 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)
 satisfies either of the following:

 (i)
 does not have any class of
securities listed on a national securities exchange or has any class of securities listed on a national securities exchange subject to
a $250 million market capitalization maximum; or

 (ii)
 is controlled by a BDC or a
group of companies including a BDC, the BDC actually exercises a controlling influence over the management or policies of the eligible
portfolio company, and, as a result, the BDC has an affiliated person who is a director of the eligible portfolio company.

 (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.

 We may invest up to 30% of our portfolio opportunistically in "non-qualifying assets."

 Managerial Assistance to Portfolio Companies

 In addition, a BDC must be organized and have
its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities
described in (1), (2), or (3) above under " —Regulation as a Business Development Company—Qualifying Assets."
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 significant managerial assistance. However, when
the BDC purchases 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, officers or employees, 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.

 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.

 Senior Securities and Indebtedness

 We partially finance our investments with leverage
in the form of borrowings under credit facilities and issuances of senior unsecured notes. We intend to further borrow under credit facilities
and/or issue senior unsecured notes in the future in order to finance our investments. As of December 31, 2024, we had $858 million of
indebtedness outstanding under our credit facilities and senior unsecured notes. See " Risk Factors — Risks Relating
to Our Business and Structure — Provisions in our credit facilities and our senior unsecured notes contain various covenants,
which, if not complied with, could accelerate our repayment obligations under such facilities, thereby materially and adversely affecting
our liquidity, financial condition, results of operations and ability to pay distributions. "

 We will be permitted, under specified conditions,
to issue multiple classes of indebtedness and one class of stock senior to our shares of common stock if our asset coverage, as defined
in the 1940 Act, is at least equal to 150% immediately after each such issuance. We are required to meet an asset coverage ratio of total
assets (less total liabilities other than indebtedness) to total borrowings and other senior securities of at least 150%. If this ratio
declines below 150%, we cannot incur additional leverage and could be required to sell a portion of our investments to repay some leverage
when it is disadvantageous to do so. As defined in the 1940 Act, asset coverage of 150% means that for every $100 of net assets we hold,
we may raise $200 from borrowing and issuing senior securities.

 We currently intend to target
asset coverage of 200% to 180% (which equates to a debt-to-equity ratio of 1.0x to 1.25x) but may alter this target based on
market conditions. 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. Regulations governing our operations as a BDC will affect our ability to raise, and the method of raising, additional
capital, which may expose us to risks.

 Codes of Ethics

 We and our Advisor have adopted a code of ethics pursuant to Rule 17j-1 under
the 1940 Act that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject
to the joint code may invest in securities for their personal investment accounts, including securities that may be purchased or held
by us, so long as such investments are made in accordance with the code's requirements. In addition, we have adopted a code of ethics
applicable to our Principal Executive Officer, Principal Accounting Officer and senior financial officers pursuant to Section 406 of the
Sarbanes-Oxley Act of 2002. You may review or download the codes of ethics from the SEC's Edgar database as part of our filings
under www.sec.gov, or by written request to the following: Chief Compliance Officer, Kayne Anderson, 717 Texas Avenue, Suite 2200, Houston,
TX 77002.

 Compliance Policies and Procedures

 We make investments alongside certain entities
and accounts advised by our Advisor and its affiliates. Under the 1940 Act, we are prohibited from knowingly participating in certain
joint transactions with our affiliates without the prior approval of the independent directors and, in some cases, prior approval by the
SEC. However, we generally make investments alongside affiliated entities and accounts pursuant to exemptive relief granted by the SEC
to us, our Advisor, and certain of our affiliates on August 10, 2023. Pursuant to such exemptive relief, and subject to certain conditions,
we are permitted to co-invest in the same security with our affiliates in a manner that is consistent with our investment objective,
investment strategy, regulatory consideration and other relevant factors. If opportunities arise that would otherwise be appropriate for
us and an affiliate to purchase different securities in the same issuer, our Advisor will need to decide which account will proceed with
such investment. Our Advisor's investment allocation policy incorporates the conditions of exemptive relief to seek to ensure that
investment opportunities are allocated in a manner that is fair and equitable.

 We will be periodically examined by the SEC for
compliance with the 1940 Act.

 We are required to provide and maintain a bond
issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. 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 and our Advisor have adopted and implemented
written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and will be 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.

 Sarbanes-Oxley Act

 The Sarbanes-Oxley Act of 2002, as amended, or
the Sarbanes-Oxley Act, imposes a variety of regulatory requirements on companies with a class of securities registered under the Exchange
Act and their insiders. Many of these requirements affect us. For example:

 pursuant to Rule 13a-14 under 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 under Regulation S-K under the Securities Act 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 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 under the Securities Act and Rule 13a-15 under 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 under such
act. 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 comply with that act in the future.

 Commodities Exchange Act

 The Commodity Futures Trading Commission ("CFTC")
and the SEC have issued final rules establishing that certain swap transactions are subject to CFTC regulation. Engaging in such swap
transactions may cause us to fall within the definition of "commodity pool" under the Commodity Exchange Act and related CFTC
regulations. The Advisor will rely on an exclusion from the definition of a CPO under CFTC Rule 4.5 because of our limited trading in
commodity interests, and the Advisor will operate us as if we were not registered as a CPO, so that unlike a registered CPO, with respect
to us, the Advisor is not required to deliver a Disclosure Document or an Annual Report (as those terms are used in the CFTC's rules)
to shareholders.

 Proxy Voting Policies and Procedures

 We have delegated our proxy voting responsibility
to our Advisor. A summary of the Proxy Voting Policies and Procedures of our Advisor are set forth below. These policies and procedures
will be reviewed periodically by our Advisor and, subsequent to our election to be regulated as a BDC, our non-interested directors,
and, accordingly, are subject to change. For purposes of these Proxy Voting Policies and Procedures described below, "we"
"our" and "us" refers to our Advisor.

 An investment advisor registered under the Advisers
Act has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, we recognize that we must vote the
Company's securities in a timely manner free of conflicts of interest and in the best interests of the Company and its stockholders.

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

 We will vote proxies relating to our portfolio
securities in what we believe to be the best interest of our stockholders. To ensure that our vote is not the product of a conflict of
interest, we will require that: (1) anyone involved in the decision making process disclose to our chief compliance officer 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 we intend to vote on a proposal in order
to reduce any attempted influence from interested parties.

 You may obtain information about how we voted
proxies by making a written request for proxy voting information to: KA Credit Advisors, LLC, 717 Texas Avenue, Suite 2200, Houston, TX
77002, Attention: Chief Compliance Officer.

 Employees

 We do not have any employees. Our day-to-day investment
operations are managed by our Advisor and the Administrator. Any compensation paid for services relating to our financial reporting and
compliance functions will be paid by our Administrator, subject to reimbursement by us of an allocable portion of office facilities, overhead,
and compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial
Officer) and their respective staff who provide services to us. As we reimburse the Administrator for its expenses, we will indirectly
bear such cost.

 Our Administrator engaged Ultimus Fund Solutions,
LLC under a sub-administration agreement to assist the Administrator in performing certain of its administrative duties. The
Administrator may enter into additional sub-administration agreements with third-parties to perform other administrative and
professional services on behalf of the Administrator. We will pay the fees associated with such functions on a direct basis without profit
to our Administrator.

 Privacy Principles

 We are committed to maintaining the privacy of
our investors and to safeguarding their non-public personal information. The following information is provided to help you understand
what personal information we collect, how we protect that information and why, in certain cases, we may share information with select
other parties.

 We do not disclose any non-public personal
information about our stockholders or a former stockholder to anyone, except as permitted by law or as is necessary in order to service
stockholder accounts (for example, to a transfer agent or third-party administrator).

 We restrict access to non-public personal
information about our stockholders to employees of our Advisor and its affiliates with a legitimate business need for the information.
We will maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of our
stockholders.

 Reporting Obligations

 As a BDC, we make available on our website (www.kaynebdc.com)
our annual reports on Form 10-K, quarterly reports on Form 10-Q and our current reports on Form 8-K. Shareholders
and the public may also read and copy any materials we file with the SEC at the SEC's Public Reference Room, 100 F Street, N.E.,
Washington, D.C. 20549 and on the SEC's website at www.sec.gov. Information on the operation of the SEC's
public reference room may be obtained by calling the SEC at (202) 551-8090 or (800) SEC-0330. The reference to
our website and the SEC's website is an inactive textual reference only, and the information should not be considered a part of
this Form 10-K.

 Material U.S. Federal Income Tax Considerations

 The following discussion is a general summary
of the material U.S. federal income tax considerations applicable to us and to an investment in our shares of common stock. This summary
does not purport to be a complete description of the U.S. federal income tax considerations applicable to such an investment. For example,
we have not described certain considerations that may be relevant to certain types of holders subject to special treatment under U.S.
federal income tax laws, including persons who hold our common stock as part of a straddle or hedging, integrated or constructive sale
transaction, stockholders subject to the alternative minimum tax, tax-exempt organizations, insurance companies, brokers
or dealers in securities, traders in securities that elect to mark-to-market their securities holdings, pension plans
and trusts, persons that have a functional currency (as defined in Section 985 of the Code) other than the U.S. dollar, U.S. expatriates,
regulated investment companies, real estate investment trusts, personal holding companies, persons who acquire an interest in the Company
in connection with the performance of services and financial institutions. Such persons should consult with their own tax advisers as
to the U.S. federal income tax consequences of an investment in our shares of common stock, which may differ substantially from those
described herein. This summary assumes that investors hold our shares of common stock as capital assets (within the meaning of Section 1221
of the Code).

 The discussion is based upon the Code, Treasury
regulations, and administrative and judicial interpretations, each as of the date of the filing of this annual report on Form 10-K and
all of which are subject to change, possibly retroactively, which could affect the continuing validity of this discussion. We have not
sought and will not seek any ruling from the Internal Revenue Service, or the IRS, regarding any offering of our shares of common stock.
This summary does not discuss any aspects of U.S. estate or gift tax or foreign, state or local tax. It does not discuss the special treatment
under U.S. federal income tax laws that could result if we invested in tax-exempt securities or certain other investment
assets. For purposes of this discussion, references to "dividends" are to dividends within the meaning of the U.S. federal
income tax laws and associated regulations and may include amounts subject to treatment as a return of capital under section 19(a) of
the 1940 Act. A return of capital distribution is a return to stockholders of a portion of their original investment in the Company and
does not represent income or capital gains.

 A "U.S. stockholder" is a beneficial
owner of our shares of common stock that is for U.S. federal income tax purposes:

 a citizen or individual resident of the United States;

 a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or any state thereof or the District of Columbia;

 an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

 a trust if either a U.S. court can exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or the trust was in existence on August 20, 1996, was treated as a U.S. person prior to that date, and has made a valid election to be treated as a U.S. person.

 A "non-U.S. stockholder" is
a beneficial owner of our shares of common stock that is neither a U.S. stockholder nor a partnership for U.S. federal income tax purposes.

 If a partnership (including an entity treated
as a partnership for U.S. federal income tax purposes) holds shares of common stock, the tax treatment of a partner in the partnership
will generally depend upon the status of the partner and the activities of the partnership. A prospective investor that is a partner in
a partnership that will hold shares of common stock should consult its tax advisors with respect to the purchase, ownership and disposition
of shares of common stock.

 Tax matters are very complicated and the tax consequences
to an investor of an investment in our shares of common stock will depend on the facts of his, her or its particular situation. We encourage
investors to consult their own tax advisors regarding the specific consequences of such an investment, including tax reporting requirements,
the applicability of U.S. federal, state, local and foreign tax laws, eligibility for the benefits of any applicable tax treaty, and the
effect of any possible changes in the tax laws.

 Election to Be Taxed as a RIC

 We intend to elect to be treated as a RIC under
Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any net ordinary income
or capital gains that we timely distribute to our stockholders as dividends. 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 for RIC treatment, we must distribute to our stockholders,
for each taxable year, dividends of an amount at least equal to the sum of 90% of our "investment company taxable income,"
which is generally our net ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital
losses and determined without regard to any deduction for dividends paid, and 90% of our net tax-exempt interest income, if
any (the "Annual Distribution Requirement"). Although not required for us to maintain our RIC tax status, in order to preclude
the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute to our stockholders in respect of each calendar
year dividends of an amount at least equal to the sum of (1) 98% of our net ordinary income (taking into account certain deferrals and
elections) for the calendar year, (2) 98.2% of the excess (if any) of our realized capital gains over our realized capital losses, or
capital gain net income (adjusted for certain ordinary losses), generally for the one-year period ending on October 31
of the calendar year and (3) the sum of any net ordinary income plus capital gains net income for preceding years that were not distributed
during such years and on which we paid no federal income tax (the "Excise Tax Avoidance Requirement").

 Taxation as a RIC

 If we:

 qualify as a RIC; and

 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, defined as net long-term capital gains in excess of
net short-term capital losses, we distribute to stockholders. As a RIC, we will be subject to U.S. federal income tax at regular corporate
rates on any net income or net capital gain not distributed (or deemed distributed) as dividends to our stockholders.

 In order to qualify as a RIC for U.S. federal
income tax purposes, we must, among other things:

 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 certain securities loans, gains from the sale of stock or other securities, or other income derived with respect to our business of investing in such stock or securities, or currencies, other income derived with respect to its business of investing in such stock, securities or currencies and net income derived from interests in "qualified publicly traded partnerships" (partnerships that are traded on an established securities market or tradable on a secondary market, other than partnerships that derive 90% of their income from interest, dividends and other permitted RIC income) (the "90% Income Test"); and

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

 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

 no more than 25% of the value of our assets is invested in 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 tax rules, by us and that are engaged in the same or similar or related trades or businesses or in the securities of one or more qualified publicly traded partnerships.

 We may be required to recognize taxable income
in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules
as having original issue discount (such as debt instruments with PIK interest or, in certain cases, increasing interest rates or issued
with warrants), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation,
regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income
other amounts that we have not yet received in cash, such as PIK interest and deferred loan origination fees that are paid after origination
of the loan. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for
the year of accrual, we may be required to make a distribution to our shareholders in order to satisfy the Annual Distribution Requirement,
even though we will not have received the corresponding cash amount.

 We may invest in partnerships, including qualified
publicly traded partnerships, which may result in our being subject to state, local or foreign income, franchise or other tax liabilities.

 In addition, as a RIC, we are subject to ordinary
income and capital gain distribution requirements under U.S. federal excise tax rules for each calendar year (as discussed above). If
we do not meet the required distributions, we will be subject to a 4% nondeductible federal excise tax on the undistributed amount. The
failure to meet U.S. federal excise tax distribution requirements will not cause us to lose our RIC status. Although we currently intend
to make sufficient distributions each taxable year to satisfy the U.S. federal excise tax requirements, under certain circumstances, we
may choose to retain taxable income or capital gains in excess of current year distributions into the next tax year in an amount less
than what would trigger payments of federal income tax under Subchapter M of the Code. We may then be required to pay a 4% excise tax
on such income or capital gains.

 A RIC is limited in its ability to deduct expenses
in excess of its investment company taxable income. If our deductible expenses in a given taxable year exceed our investment company taxable
income, we may incur a net operating loss for that taxable year. However, a RIC is not permitted to carry forward net operating losses
to subsequent taxable years and such net operating losses do not pass through to its stockholders. In addition, deductible expenses can
be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, the
excess of realized capital losses over realized capital gains) to offset its investment company taxable income, but may carry forward
such net capital losses, and use them to offset future capital gains, indefinitely. Due to these limits on deductibility of expenses and
net capital losses, we may for tax purposes have aggregate taxable income for several taxable years that we are required to distribute
and that is taxable to our stockholders even if such taxable income is greater than the net income we actually earn during those taxable
years.

 Any underwriting fees paid by us with respect
to our own stock are not deductible. We may be required to recognize taxable income in circumstances in which we do not receive cash.
For example, if we hold debt obligations that are treated under applicable tax rules as having OID (such as debt instruments with PIK
interest or, in certain cases, with increasing interest rates or issued with warrants), we must include in income each year a portion
of the OID that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the
same taxable year. Because any OID accrued will be included in our investment company taxable income for the taxable year of accrual,
we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we
will not have received any corresponding cash amount. Furthermore, a portfolio company in which we hold equity or debt instruments may
face financial difficulty that requires us to work out, modify, or otherwise restructure such equity or debt instruments. Any such restructuring
could, depending upon the terms of the restructuring, cause us to incur unusable or nondeductible losses or recognize future non-cash taxable income.

 Certain of our investment practices may be subject
to special and complex U.S. federal income tax provisions that may, among other things, (1) treat dividends that would otherwise
constitute qualified dividend income as non-qualified dividend income, (2) treat dividends that would otherwise
be eligible for the corporate dividends received deduction as ineligible for such treatment, (3) disallow, suspend or otherwise limit
the allowance of certain losses or deductions, (4) convert lower-taxed long-term capital gain into higher-taxed short-term capital
gain or ordinary income, (5) convert an ordinary loss or a deduction into a capital loss (the deductibility of which is more limited),
(6) cause us to recognize income or gain without a corresponding receipt of cash, (7) adversely affect the time as to when a purchase
or sale of stock or securities is deemed to occur, (8) adversely alter the characterization of certain complex financial transactions
and (9) produce income that will not be qualifying income for purposes of the 90% Income Test. We intend to monitor our transactions
and may make certain tax elections to mitigate the effect of these provisions and prevent our ability to be subject to tax as a RIC.

 Gain or loss realized by us from warrants acquired
by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain or loss
generally will be long term or short term, depending on how long we held a particular warrant.

 Although we do not presently expect to do so,
we are authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, we are
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. See " Item 1. Business — Regulation as a Business Development Company — Senior
Securities and Indebtedness." Moreover, our ability to dispose of assets to meet our distribution requirements may be limited
by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our qualification 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.

 Some of the income and fees that we may recognize,
such as fees for providing managerial assistance, certain fees earned with respect to our investments, income recognized in a work-out or restructuring
of a portfolio investment, or income recognized from an equity investment in an operating partnership, will not satisfy the 90% Income
Test. In order to manage the risk that such income and fees might disqualify us as a RIC for a failure to satisfy the 90% Income Test,
we may be required to recognize such income and fees indirectly through one or more entities treated as corporations for U.S. federal
income tax purposes (therefore, received amounts treated as dividends of such corporations). Such corporations will be required to pay
U.S. corporate income tax on their earnings, which ultimately will reduce our return on such income and fees.

 Failure to Qualify as a RIC

 If we were unable to qualify for treatment as
a RIC and are unable to cure the failure, for example, by disposing of certain investments quickly or raising additional capital to prevent
the loss of RIC status, we would be subject to tax on all of our taxable income at regular corporate rates. The Code provides some relief
from RIC disqualification due to failures to comply with the 90% Income Test and the Diversification Tests, although there may be additional
taxes due in such cases. We cannot assure you that we would qualify for any such relief should we fail the 90% Income Test or the Diversification
Tests.

 Should failure occur, not only would all our taxable
income be subject to tax at regular corporate rates, we would not be able to deduct dividend distributions to stockholders, nor would
they be required to be made. Distributions, including distributions of net long-term capital gain, would generally be taxable to our stockholders
as ordinary dividend income to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the
Code, certain corporate stockholders would be eligible to claim a dividends received deduction with respect to such dividends and non-corporate
stockholders would generally be able to treat such dividends as "qualified dividend income," which is subject to reduced rates
of U.S. federal income tax. 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 tax basis, and any remaining distributions would be treated as a capital gain. If
we fail to qualify as a RIC, we may be subject to regular corporate tax on any net built-in gains with respect to
certain of our assets (i.e., the excess of the aggregate gains, including items of income, over aggregate losses that would have been
realized with respect to such assets if we had been liquidated) that we elect to recognize on requalification or when recognized over
the next five taxable years.

 The remainder of this discussion assumes that
we qualify as a RIC and have satisfied the Annual Distribution Requirement for each taxable year.

 Taxation of U.S. Stockholders

 Distributions by us generally are taxable to U.S.
stockholders as ordinary income or capital gains. Distributions of our "investment company taxable income" (which is, generally,
our net ordinary income plus net short-term capital gains in excess of net long-term capital losses) will be taxable as ordinary income
to U.S. stockholders to the extent of our current or accumulated earnings and profits, whether paid in cash or reinvested in additional
shares of common stock. To the extent such distributions paid by us to non-corporate stockholders (including individuals)
are attributable to dividends from U.S. corporations and certain qualified foreign corporations and if certain holding period requirements
are met, such distributions generally will be treated as qualified dividend income and generally eligible for a maximum U.S. federal tax
rate of either 15% or 20%, depending on whether the individual stockholder's income exceeds certain threshold amounts, and if other
applicable requirements are met, such distributions generally will be eligible for the corporate dividends received deduction to the extent
such dividends have been paid by a U.S. corporation. In this regard, it is anticipated that distributions paid by us will generally not
be attributable to dividends and, therefore, generally will not qualify for the preferential maximum U.S. federal tax rate applicable to non-corporate stockholders as
well as will not be eligible for the corporate dividends received deduction.

 Distributions of our net capital gains (which
is generally our realized net long-term capital gains in excess of realized net short-term capital losses) properly reported by us as
"capital gain dividends" will be taxable to a U.S. stockholder as long-term capital gains (currently generally at a maximum
rate of either 15% or 20%, depending on whether the individual stockholder's income exceeds certain threshold amounts) in the case
of individuals, trusts or estates, regardless of the U.S. stockholder's holding period for his, her or its shares of common stock
and regardless of whether paid in cash or reinvested in additional shares of common stock. Distributions in excess of our earnings and
profits first will reduce a U.S. stockholder's adjusted tax basis in such stockholder's shares of common stock and, after
the adjusted basis is reduced to zero, will constitute capital gains to such U.S. stockholder. Stockholders receiving dividends or distributions
in the form of additional shares of common stock purchased in the market should be treated for U.S. federal income tax purposes as receiving
a distribution in an amount equal to the amount of money that the stockholders receiving cash dividends or distributions will receive,
and should have a cost basis in the shares received equal to such amount. Stockholders receiving dividends in newly issued shares of common
stock will be treated as receiving a distribution equal to the value of the shares received and should have a cost basis of such amount.

 Although we currently intend to distribute any
net capital gains at least annually, we may in the future decide to retain some or all of our net capital gains but designate the retained
amount as a "deemed distribution." In that case, among other consequences, we will pay tax on the retained amount, each U.S.
stockholder will be required to include their share of the deemed distribution in income as if it had been distributed to the U.S. stockholder,
and the U.S. stockholder will be entitled to claim a credit or refund equal to their allocable share of the tax paid on the deemed distribution
by us. The amount of the deemed distribution net of such tax will be added to the U.S. stockholder's tax basis for their shares
of common stock. Since we expect to pay tax on any retained net capital gains at our regular corporate tax rate, and since that rate is
in excess of the maximum rate currently payable by individuals on long-term capital gains, the amount of tax that individual stockholders
will be treated as having paid and for which they will receive a credit or refund will exceed the tax they owe on the retained net capital
gain. Such excess generally may be claimed as a credit against the U.S. stockholder's other U.S. federal income tax obligations
or may be refunded to the extent it exceeds a stockholder's liability for U.S. federal income tax. A stockholder that is not subject
to U.S. federal income tax or otherwise required to file a U.S. federal income tax return would be required to file a U.S. federal income
tax return on the appropriate form in order to claim a refund for the taxes we paid. In order to utilize the deemed distribution approach,
we must provide written notice to our stockholders prior to the expiration of 60 days after the close of the relevant taxable year. We
cannot treat any of our investment company taxable income as a "deemed distribution."

 For purposes of determining (1) whether the
Annual Distribution Requirement is satisfied for any tax year and (2) the amount of capital gain dividends paid for that tax year,
we may, under certain circumstances, elect to treat a dividend that is paid during the following tax year as if it had been paid during
the tax year in question. If we make such an election, the U.S. stockholder will still be treated as receiving the dividend in the tax
year in which the distribution is made. However, any dividend declared by us in October, November or December of any calendar year, payable
to stockholders of record on a specified date in such a month and actually paid during January of the following calendar year, will be
treated as if it had been received by our U.S. stockholders on December 31 of the calendar year in which the dividend was declared.

 With respect to the reinvestment of dividends,
if a U.S. Shareholder owns shares of common stock registered in its own name, the U.S. Shareholder will have all cash distributions automatically
reinvested in additional shares of common stock unless the U.S. Shareholder opts out of the reinvestment of dividends by delivering a
written notice to our dividend paying agent prior to the record date of the next dividend or distribution. Any distributions reinvested
will nevertheless remain taxable to the U.S. Shareholder. The U.S. Shareholder will have an adjusted basis in the additional shares of
common stock purchased through the reinvestment equal to the amount of the reinvested distribution. The additional shares of common stock
will have a new holding period commencing on the day following the day on which the shares are credited to the U.S. Shareholder's
account.

 If an investor purchases shares of common stock
shortly before the record date of a distribution, the price of the shares of common stock will include the value of the distribution and
the investor will be subject to tax on the distribution even though it represents a return of their investment.

 A stockholder generally will recognize taxable
gain or loss if the stockholder sells or otherwise disposes of their shares of common stock. Any gain arising from such sale or disposition
generally will be treated as long-term capital gain or loss if the stockholder has held their shares of common stock for more than one
year. Otherwise, it would be classified as short-term capital gain or loss. However, any capital loss arising from the sale or disposition
of shares of common stock held for six months or less will be treated as long-term capital loss to the extent of the amount of capital
gain dividends received, or undistributed capital gain deemed received, with respect to such shares of common stock. In addition, all
or a portion of any loss recognized upon a disposition of shares of common stock may be disallowed if other shares of common stock are
purchased (whether through reinvestment of distributions or otherwise) within 30 days before or after the disposition. In such a case,
the basis of shares of common stock acquired will be increased to reflect the disallowed loss.

 In general, individual U.S. stockholders are subject
to a maximum U.S. federal income tax rate of either 15% or 20% (depending on whether the individual U.S. stockholder's income exceeds
certain threshold amounts) on their net capital gain, i.e., the excess of realized net long-term capital gain over realized net short-term
capital loss for a taxable year, including a long-term capital gain derived from an investment in our shares of common stock. Such rate
is lower than the maximum federal income tax rate on ordinary taxable income currently payable by individuals. Corporate U.S. stockholders
currently are subject to U.S. federal income tax on net capital gain at the maximum 21% rate also applied to ordinary income. Non-corporate stockholders incurring
net capital losses for a tax year (i.e., net capital losses in excess of net capital gains) generally may deduct up to $3,000 of such
losses against their ordinary income each tax year; any net capital losses of a non-corporate stockholder in excess
of $3,000 generally may be carried forward and used in subsequent tax years as provided in the Code. Corporate stockholders generally
may not deduct any net capital losses for a tax year, but may carry back such losses for three tax years or carry forward such losses
for five tax years.

 We will send to each of our U.S. stockholders,
as promptly as possible after the end of each calendar year, a notice detailing, on a per share and per distribution basis, the amounts
includible in such U.S. stockholder's taxable income for such year as ordinary income and as long-term capital gain. In addition,
the U.S. federal tax status of each calendar year's distributions generally will be reported to the IRS. Distributions may also
be subject to additional state, local and foreign taxes depending on a U.S. stockholder's particular situation. Dividends distributed
by us generally will not be eligible for the dividends-received deduction or the lower tax rates applicable to certain qualified dividends.

 Backup withholding, currently at a rate of 24%,
may be applicable to all taxable distributions to any non-corporate U.S. stockholder (1) who fails to furnish us with a
correct taxpayer identification number or a certificate that such stockholder is exempt from backup withholding or (2) with respect
to whom the IRS notifies us that such stockholder has failed to properly report certain interest and dividend income to the IRS and to
respond to notices to that effect. An individual's taxpayer identification number is his or her social security number. Any amount
withheld under backup withholding is allowed as a credit against the U.S. stockholder's U.S. federal income tax liability and may
entitle such stockholder to a refund, provided that proper information is timely provided to the IRS.

 If a U.S. stockholder recognizes a loss with respect
to shares of common stock of $2 million or more for an individual stockholder or $10 million or more for a corporate stockholder,
the stockholder must file with the IRS a disclosure statement on Form 8886. Direct stockholders of portfolio securities are in many cases
exempted from this reporting requirement, but under current guidance, stockholders of a RIC are not exempted. The fact that a loss is
reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper.
U.S. stockholders should consult their tax advisors to determine the applicability of these regulations in light of their specific circumstances.

 A U.S. Shareholder that is a tax-exempt organization
for U.S. federal income tax purposes and therefore generally exempt from U.S. federal income taxation may nevertheless be subject to taxation
to the extent that it is considered to derive unrelated business taxable income ("UBTI"). The direct conduct by a tax-exempt
U.S. Shareholder of the activities we propose to conduct could give rise to UBTI. However, a BDC (and RIC) is a corporation for U.S. federal
income tax purposes and its business activities generally will not be attributed to its shareholders for purposes of determining their
treatment under current law. Therefore, a tax-exempt U.S. Shareholder generally should not be subject to U.S. taxation solely as a result
of the shareholder's ownership of our shares of common stock and receipt of dividends with respect to such common stock. Moreover,
under current law, if we incur indebtedness, such indebtedness will not be attributed to a tax-exempt U.S. Shareholder. Therefore, a tax-exempt
U.S. Shareholder should not be treated as earning income from "debt-financed property" and dividends we pay should not be
treated as "unrelated debt-financed income" solely as a result of indebtedness that we incur. Legislation has been introduced
in Congress in the past, and may be introduced again in the future, which would change the treatment of "blocker" investment
vehicles interposed between tax-exempt investors and non-qualifying investments if enacted. In the event that any such proposals were
to be adopted and applied to BDCs (and RICs), the treatment of dividends payable to tax-exempt investors could be adversely affected.
In addition, special rules would apply if we were to invest in certain real estate mortgage investment conduits, which we do not currently
plan to do, that could result in a tax-exempt U.S. Shareholder recognizing income that would be treated as UBTI.

 An additional 3.8% federal tax is imposed on certain
net investment income (including ordinary dividends and capital gain distributions received from us and net gains from redemptions or
other taxable dispositions of our shares) of U.S. individuals, estates and trusts to the extent that such person's "modified
adjusted gross income" (in the case of an individual) or "adjusted gross income" (in the case of an estate or trust)
exceed certain threshold amounts.

 Taxation of Non-U.S. Stockholders

 The following discussion only applies to certain
non-U.S. stockholders. Whether an investment in the shares of common stock is appropriate for a non-U.S. stockholder will depend upon
that person's particular circumstances. An investment in the shares of common stock by a non-U.S. stockholder may have adverse tax
consequences. Non-U.S. stockholders should consult their tax advisors before investing in our shares of common stock.

 Subject to the discussion below, distributions
of our "investment company taxable income" to non-U.S. stockholders (including interest income, net short-term capital gain
or foreign-source dividend and interest income, which generally would be free of withholding if paid to non-U.S. stockholders directly)
will be subject to withholding of U.S. federal tax at a 30% rate (or lower rate provided by an applicable treaty) to the extent of our
current and accumulated earnings and profits unless the distributions are effectively connected with a U.S. trade or business of the non-U.S.
stockholder (and, if treaty applies, are attributable to a U.S. permanent establishment of the non-U.S. stockholder), in which case the
distributions will generally be subject to U.S. federal income tax at the rates applicable to U.S. persons. In that case, we will not
be required to withhold U.S. federal tax if the non-U.S. stockholder complies with applicable certification and disclosure requirements
such as providing IRS Form W-8ECI). Special certification requirements apply to a non-U.S. stockholder that is a foreign partnership or
a foreign trust, and such entities are urged to consult their own tax advisors.

 Certain properly reported dividends received by
a non-U.S. stockholder generally are exempt from U.S. federal withholding tax when they (1) are paid in respect of our "qualified
net interest income" (generally, our U.S. source interest income, other than certain contingent interest and interest from obligations
of a corporation or partnership in which we are at least a 10% stockholder, reduced by expenses that are allocable to such income), or
(2) are paid in connection with our "qualified short-term capital gains" (generally, the excess of our net short-term capital
gain over our long-term capital loss for a tax year) as well as if certain other requirements are satisfied. Nevertheless, it should be
noted that in the case of shares of our stock held through an intermediary, the intermediary may have withheld U.S. federal income tax
even if we reported the payment as an interest-related dividend or short-term capital gain dividend. Moreover, depending on the circumstances,
we may report all, some or none of our potentially eligible dividends as derived from such qualified net interest income or as qualified
short-term capital gains, or treat such dividends, in whole or in part, as ineligible for this exemption from withholding.

 Actual or deemed distributions of our net capital
gains to a non-U.S. stockholder, and gains realized by a non-U.S. stockholder upon the sale of our shares of common stock, will not be
subject to U.S. federal withholding tax and generally will not be subject to U.S. federal income tax unless the distributions or gains,
as the case may be, are effectively connected with a U.S. trade or business of the non-U.S. stockholder and, if an income tax treaty applies,
are attributable to a permanent establishment maintained by the non-U.S. stockholder in the United States or, in the case of an individual
non-U.S. stockholder, the stockholder is present in the United States for 183 days or more during the year of the sale or capital gain
dividend and certain other conditions are met.

 If we distribute our net capital gains in the
form of deemed rather than actual distributions (which we may do in the future), a non-U.S. stockholder will be entitled to a U.S. federal
income tax credit or tax refund equal to the stockholder's allocable share of the tax we pay on the capital gains deemed to have
been distributed. In order to obtain the refund, the non-U.S. stockholder must obtain a U.S. taxpayer identification number and file a
U.S. federal income tax return even if the non-U.S. stockholder would not otherwise be required to obtain a U.S. taxpayer identification
number or file a U.S. federal income tax return. For a corporate non-U.S. stockholder, distributions (both actual and deemed), and gains
realized upon the sale of our shares of common stock that are effectively connected with a U.S. trade or business may, under certain circumstances,
be subject to an additional "branch profits tax" at a 30% rate (or at a lower rate if provided for by an applicable treaty).

 A non-U.S. stockholder who is a non-resident alien
individual, and who is otherwise subject to withholding of U.S. federal income tax, may be subject to information reporting and backup
withholding of U.S. federal income tax on dividends unless the non-U.S. stockholder provides us or the dividend paying agent with a U.S.
nonresident withholding tax certification (e.g., an IRS Form W-8BEN, IRS Form W-8BEN-E, or an acceptable substitute form) or otherwise
meets documentary evidence requirements for establishing that it is a non-U.S. stockholder or otherwise establishes an exemption from
backup withholding.

 Withholding of U.S. tax (at a 30% rate) is required
by the Foreign Account Tax Compliance Act, or FATCA, provisions of the Code with respect to payments of dividends made to certain non-U.S. entities that
fail to comply (or be deemed compliant) with extensive new reporting and withholding requirements designed to inform the U.S. Department
of the Treasury of U.S.-owned foreign investment accounts. Under proposed U.S. Treasury regulations, which may be relied upon until final
U.S. Treasury regulations are published, there is no FATCA withholding on gross proceeds from the sale of disposition of shares of common
stock or on certain capital gain distributions. Stockholders may be requested to provide additional information to enable the applicable
withholding agent to determine whether withholding is required.

 An investment in shares by a non-U.S. person may
also be subject to U.S. federal estate tax. Non-U.S. persons should consult their own tax advisors with respect to
the U.S. federal income tax, U.S. federal estate tax, withholding tax, and state, local and foreign tax consequences of acquiring, owning
or disposing of our shares of common stock.

 Item 1A. Risk Factors

 Investing in our shares of common stock involves
a number of significant risks. Before you invest in our shares of common stock, you should be aware of various risks, including those
described below. 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 our business, operations and performance. If any of the following events occur,
our business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, our
NAV and the trading price of our securities could decline, and you may lose all or part of your investment. The risk factors described
below are the principal risk factors associated with an investment in us as well as those factors generally associated with an investment
company with investment objectives, investment policies, capital structure or trading markets similar to ours.

 Summary of Principal Risk Factors

 Investing in our shares of
common stock involves a number of significant risks. You should carefully consider information found in the section entitled "Risk
Factors" and elsewhere in this annual report on Form 10-K. Some of the risks involved in investing in our shares of common stock
include:

 Principal Risks Relating to Our Business and
Structure

 We
have a limited operating history and our Advisor and its affiliates have limited experience advising BDCs and may not replicate the historical
results achieved by other entities managed by members of the Advisor's investment committee, the Advisor or its affiliates.

 We
use leverage pursuant to borrowings under credit facilities and issuances of senior unsecured notes to finance our investments and changes
in interest rates will affect our cost of capital and net investment income.

 We
depend upon our Advisor and Administrator for our success and upon their access to the investment professionals and partners of Kayne
Anderson and its affiliates. Any inability of the Advisor or the Administrator to maintain or develop these relationships, or the failure
of these relationships to generate investment opportunities, could adversely affect our business.

 Our
financial condition, results of operations and cash flows depend on our ability to manage our business and future growth effectively.

 There
are significant potential conflicts of interest that could affect our investment returns, including conflicts related to obligations
the Advisor's investment committee, the Advisor or its affiliates have to other clients and conflicts related to fees and expenses
of such other clients.

 We
generally may make investments that could give rise to a conflict of interest and our ability to enter into transactions with our affiliates
will be restricted.

 We
operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.

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

 We
finance our investments with borrowings under credit facilities and issuances of senior unsecured notes, which will magnify the potential
for gain or loss on amounts invested and may increase the risk of investing in us.

 Adverse
developments in the credit markets may impair our ability to enter into new credit facilities or our ability to issue senior unsecured
notes.

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

 Our
Board may change our investment objective, operating policies and strategies without prior notice or stockholder approval, and we may
temporarily deviate from our regular investment strategy.

 Efforts
to comply with the Exchange Act and the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance would adversely
affect us and the value of our shares of common stock.

 We
are highly dependent on information systems, and cybersecurity risks and cyber incidents may adversely affect our business or the business
of our portfolio companies, which may, in turn, negatively affect the value of our shares of common stock and our ability to pay distributions.

 Purchases
of shares of our common stock by us under our open market repurchase program, including the Company Rule 10b5-1 Plan, may result
in the price of shares of our common stock being higher than the price that otherwise might exist in the open market and are subject
to our ability to finance such repurchases.

 Principal Risks Relating to Our Investments

 We
are subject to risks associated with the current interest rate environment, and rising interest rates could affect the value of our investments
and make it more difficult for portfolio companies to make periodic payments on their loans.

 Our
business is dependent on bank relationships and recent strain on the banking system may adversely impact us.

 We
invest in highly leveraged companies, which could cause us to lose all or a part of our investment in those companies.

 We
are subject to risks associated with our investments in unitranche secured loans and securities, including the potential loss of all
or part of such investments.

 Our investments in securities that are rated below investment
grade (i.e. "junk bonds") may be risky and we could lose all or part of our investments.

 Defaults by our portfolio companies, including defaults relating to collateral, will harm our operating results.

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

 Our portfolio companies may prepay loans, which may reduce our yields if capital returned cannot be invested in transactions
with equal or greater expected yields.

 Our
portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity.

 Our
portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant
loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular
industry.

 There
is no assurance that portfolio company management will be able to operate their companies in accordance with our expectations.

 Our
investments in the Trading Companies & Distributors industry face considerable uncertainties including significant regulatory
challenges.

 Risks Relating to Our Common Stock

 Prior to the IPO, there has been no public market for our
shares of common stock, and we cannot assure you that a market for our shares of common stock will develop or remain active, or that
the market price of our shares of common stock will not decline at some point following the IPO. Our share of common stock price may
be volatile and may fluctuate substantially.

 Sales
of substantial amounts of our shares of common stock in the public market may have an adverse effect on the market price of our shares
of common stock.

 Trading
and liquidity in our shares may be limited and our shares may trade below their NAV.

 During
extended periods of capital market disruption and instability, there is a risk that you may not receive distributions or that our distributions
may not grow over time and a portion of our distributions may be a return of capital.

 Our
stockholders may experience dilution in their ownership percentage.

 Risks Relating to Our Business and Structure

 We have a limited operating history and may
not replicate the historical results achieved by other entities managed by members of the Advisor's investment committee, the Advisor
or its affiliates.

 We commenced operations in February 2021 with private
investors as shareholders, and then we completed our IPO in 2024. We are subject to all of the business risks and uncertainties associated
with any new business, including the risk that we will not achieve our investment objective, that we will not qualify or maintain our
qualification to be treated as a RIC, and that the value of your investment could decline substantially.

 The 1940 Act and the Code impose numerous constraints
on the operations of BDCs and RICs that do not apply to certain other investment vehicles managed by our Advisor and its affiliates. BDCs
are required, for example, to invest at least 70% of their total assets primarily in securities of U.S. private or thinly traded public
companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less
from the date of investment. Moreover, qualification for taxation as a RIC requires satisfaction of source-of-income, asset diversification
and distribution requirements. Our Advisor has a limited operating history under these constraints, which may hinder our ability to take
advantage of attractive investment opportunities and to achieve our investment objective.

 Furthermore, our investments may differ from those
of existing accounts that are or have been managed by members of the Advisor's investment committee, the Advisor or affiliates of
the Advisor. We cannot assure you that we will replicate the historical results achieved for other KAPC funds managed by members of the
Advisor's investment committee, and we caution you that our investment returns could be substantially lower than the returns achieved
by them in prior periods. 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 use leverage pursuant to borrowings under
credit facilities and issuances of senior unsecured notes to finance our investments and changes in interest rates will affect our cost
of capital and net investment income.

 We use leverage pursuant to borrowings under credit
facilities and issuances of senior unsecured notes and intend to further borrow under credit facilities and/or issue senior unsecured
notes in the future in order to finance our investments. As a result, our net investment income will depend, in part, upon the difference
between the rate at which we borrow under credit facilities and senior unsecured notes and the rate at which we invest these funds. In
addition, we anticipate that many of our debt investments and borrowings under credit facilities will have floating interest rates that
reset on a periodic basis, and many of our investments will be subject to interest rate floors. As a result, a significant change in market
interest rates could have a material adverse effect on our net investment income. See " Risks Relating to Our Investments—We
are subject to risks associated with the current interest rate environment, and rising interest rates could affect the value of our investments
and make it more difficult for portfolio companies to make periodic payments on their loans."

 In periods of rising interest rates, our cost
of funds will increase because we expect that the interest rates on the majority of amounts we borrow will be floating, which could reduce
our net investment income to the extent any of our debt investments have fixed interest rates. We may use interest rate risk management
techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging
activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities may limit our ability to benefit
from lower interest rates with respect to hedged borrowings. Adverse developments resulting from changes in interest rates or hedging
transactions could have a material adverse effect on our business, financial condition and results of operations. See " Risks
Relating to Our Investments—We are subject to risks under hedging transactions and our ability to enter into transactions involving
derivatives and financial commitment transactions may be limited. "

 Downgrades of the U.S. credit rating, impending
automatic spending cuts or government shutdowns could negatively impact our liquidity, financial condition and earnings.

 The U.S. debt ceiling and budget deficit concerns
have increased the possibility of credit-rating downgrades or a recession in the United States. Although U.S. lawmakers passed legislation
to raise the federal debt ceiling on multiple occasions, including, most recently, in June 2023, ratings agencies have lowered, and threatened
to lower the long-term sovereign credit rating on the United States. The legislation suspends the debt ceiling through early 2025 unless
Congress takes legislative action to further extend or defer it.

 The impact of the increased debt ceiling and/or downgrades
to the U.S. government's sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial
markets and economic conditions. Absent further quantitative easing by the U.S. Federal Reserve, these developments could cause interest
rates and borrowing costs to rise, which may negatively impact our ability to access the debt markets on favorable terms. In addition,
disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political
and economic conditions could have a material adverse effect on our business, financial condition and results of operations.

 We depend upon our Advisor and Administrator
for our success and upon their access to the investment professionals and partners of Kayne Anderson and its affiliates. Any inability
of the Advisor or the Administrator to maintain or develop these relationships, or the failure of these relationships to generate investment
opportunities, could adversely affect our business.

 Our portfolio is subject to management risk because
it is actively managed. Our Advisor applies investment techniques and risk analyses in making investment decisions for us, but there can
be no guarantee that they will produce the desired results. We depend upon, and intend to rely significantly on, the Advisor's and
its affiliates' relationships with private equity sponsors, financial intermediaries, direct lending institutions and other counterparties
that are active in our markets.

 We do not have any internal management capacity or
employees. We depend upon Kayne Anderson's key personnel for our future success and upon their access to certain individuals and
investment opportunities to execute on our investment objective. In particular, we depend on the diligence, skill and network of business
contacts of our portfolio managers, who evaluate, negotiate, structure, close and monitor our investments. These individuals manage a
number of investment vehicles on behalf of Kayne Anderson and, as a result, do not devote all of their time to managing us, which could
negatively impact our performance. Furthermore, these individuals do not have long-term employment contracts with Kayne Anderson, although
they do have equity interests and other financial incentives to remain with Kayne Anderson. We also depend on the senior management of
Kayne Anderson. The departure of any of our portfolio managers or the senior management of Kayne Anderson could have a material adverse
effect on our ability to achieve our investment objective. In addition, we can offer no assurance that our Advisor will remain our investment
advisor or that we will continue to have access to Kayne Anderson's industry contacts and deal flow. Furthermore, if the Advisor
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. This could have a material adverse effect on our financial condition, results of operations and cash
flows.

 We depend on the diligence, skill and network of business
contacts of the professionals available to our Administrator to carry out the administrative functions necessary for us to operate, including
the ability to select and engage sub-administrators and third-party service providers. We can offer no assurance, however, that the professionals
of the Administrator will continue to provide administrative services to us. This could have a material adverse effect on our financial
condition, results of operations and cash flows.

 Our financial condition, results of operations
and cash flows depend on our ability to manage our business and future growth effectively.

 Our ability to achieve our investment objective depends
on our ability to manage and grow our business, which depends, in turn, on the Advisor's ability to identify, invest in and monitor
companies that meet our investment selection criteria. Accomplishing this result on a cost-effective basis is largely a function of the
Advisor's structuring of the investment process, its ability to provide competent, attentive and efficient services to us and our
access to financing on acceptable terms. The management team of the Advisor has substantial responsibilities under our Investment Advisor
Agreement. We can offer no assurance that any current or future employees of the Advisor will contribute effectively to the work of, or
remain associated with, the Advisor. We caution you that the principals of our Advisor or Administrator may also be called upon to provide
and currently do provide managerial assistance to portfolio companies and other investment vehicles, including other BDCs, which are managed
by affiliates of the Advisor. Such demands on their time may distract them or slow our rate of investment. Any failure to manage our future
growth effectively could have a material adverse effect on our business, financial condition and results of operations.

 The Advisor may frequently be required to make
investment analyses and decisions on an expedited basis in order to take advantage of investment opportunities, and our Advisor may not
have knowledge of all circumstances that could impact an investment by the Company.

 Investment analyses and decisions by the Advisor may
frequently be required to be undertaken on an expedited basis to take advantage of investment opportunities, and the Advisor may not have
knowledge of all circumstances that could adversely affect an investment by us. Moreover, there can be no assurance that our due diligence
processes will uncover all relevant facts that would be material to an investment decision. Before making an investment, we will assess
the strength of the underlying assets and other factors that we believe are material to the performance of the investment. In making the
assessment and otherwise conducting customary due diligence, we will rely on the resources available to us and, in some cases, an investigation
by third parties. This process is particularly important and highly subjective.

 We may make investments in, or loans to, companies
that are not subject to public company reporting requirements including requirements regarding preparation of financial statements, and
our portfolio companies may utilize divergent reporting standards that may make it difficult for the Advisor to accurately assess the
prior performance of a portfolio company. We will, therefore, depend upon the compliance by investment companies with their contractual
reporting obligations. As a result, the evaluation of potential investments and our ability to perform due diligence on and effectively
monitor investments may be impeded, and we may not realize the returns that we expect 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.

 There are significant potential conflicts of
interest that could affect our investment returns, including conflicts related to obligations the Advisor's investment committee,
the Advisor or its affiliates have to other clients and conflicts related to fees and expenses of such other clients, the valuation process
for certain portfolio holdings of ours, other arrangements with the Advisor or its affiliates, and the Advisor's recommendations
given to us may differ from those rendered to their other clients.

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

 In particular, the following conflicts of interest
may arise, among others:

 the
members of the Advisor's investment committee serve or may serve as officers, directors or principals of entities that operate
in the same or a related line of business as we do or of accounts sponsored or managed by the Advisor or its affiliates;

 the
Advisor, its affiliates and its personnel may have obligations to other clients or investors in entities they manage, the fulfilment
of which may not be in the best interests of us or our stockholders;

 our
investment objective may overlap with the investment objectives of such affiliated accounts;

 certain
of the Advisor's other accounts may provide for higher management or incentive fees, greater expense reimbursements or overhead
allocations, or permit affiliates of the Advisor to receive origination and other transaction fees;

 members
of Kayne Anderson and its affiliates may serve on the boards of directors of and advise companies that may compete with our portfolio
investments. Moreover, other funds, separate accounts and other vehicles managed by Kayne Anderson and its affiliates may pursue investment
opportunities that may also be suitable for us; and

 the
participation of the Advisor's investment professionals in our valuation process could result in a conflict of interest as the
Advisor's base management fee is based, in part, on our fair market value of investments including assets purchased with borrowings
under credit facilities and issuances of senior unsecured notes, excluding cash, U.S. government securities and commercial paper instruments
maturing within one year of purchase, and our incentive fees will be based, in part, on unrealized gains and losses.

 Additionally, the incentive fee payable by us to the
Advisor may create an incentive for the Advisor to cause us to realize capital gains or losses that may not be in the best interests of
us or our stockholders. Under the incentive fee structure, the Advisor benefits when we recognize capital gains and, because the Advisor
determines when an investment is sold, the Advisor controls the timing of the recognition of such capital gains. Our Board is charged
with protecting our stockholders' interests by monitoring how the Advisor addresses these and other conflicts of interest associated
with its management services and compensation.

 The part of the management and incentive fees payable
to Advisor that relates 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, such as market discount, debt instruments with paid-in-kind ("PIK") interest, preferred stock
with PIK dividends, zero coupon securities, and other deferred interest instruments and may create an incentive for the Advisor to make
investments on our behalf that are riskier or more speculative than would be the case in the absence of such compensation arrangements.
This fee structure may be considered to give rise to a conflict of interest for the Advisor to the extent that it may encourage the Advisor
to favor debt financings that provide for deferred interest, rather than current cash payments of interest. Under these investments, we
will accrue the interest over the life of the investment, but we will not receive the cash income from the investment until the end of
the term. Our net investment income used to calculate the income portion of our investment fee, however, includes accrued interest. The
Advisor 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 fees 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 the Advisor is not obligated to reimburse us for any fees received even
if we subsequently incur losses or never receive in cash the deferred income that was previously accrued.

 The Advisor seeks to allocate investment opportunities
among eligible accounts 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, and there can be no assurance that
we will be able to participate in all investment opportunities that are suitable to us.

 The Advisor's investment committee, the
Advisor or its affiliates may, from time to time, possess material non-public information, limiting our investment discretion.

 Principals of the Advisor and its affiliates and members
of the Advisor's investment committee may serve as directors of, or in a similar capacity with, companies in which we invest, the
securities of which are purchased or sold on our behalf. In the event that material nonpublic information is obtained with respect to
such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of
applicable law or regulations (for example, the antifraud provisions for the federal securities laws), we could be prohibited for a period
of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us.

 The Investment Advisory Agreement and the Administration
Agreement were not negotiated on an arm's-length basis and may not be as favorable to us as if they had been negotiated with an
unaffiliated third party.

 The Investment Advisory Agreement and the Administration
Agreement were negotiated between related parties. Consequently, their terms, including fees payable to the Advisor, may not be as favorable
to us as if they had been negotiated with an unaffiliated third party. For example, certain accounts managed by the Advisor have lower
management, incentive or other fees than those charged under the Investment Advisory Agreement and/or a reduced ability to recover expenses
and overhead than may be recovered by the Administrator under the Administration Agreement. In addition, we may choose not to enforce,
or to enforce less vigorously, our rights and remedies under these agreements because of our desire to maintain our ongoing relationship
with the Advisor, the Administrator and their respective affiliates. Any such decision, however, would breach our fiduciary obligations
to our stockholders.

 We generally may make investments that could
give rise to a conflict of interest and our ability to enter into transactions with our affiliates will be restricted.

 We, along with our Advisor and certain of its affiliates,
have obtained exemptive relief from the SEC to permit us to invest alongside certain entities and accounts advised by the Advisor and
its affiliates subject to certain conditions.

 Pursuant to such exemptive relief, and subject to
certain conditions, we are permitted to co-invest in the same security with our affiliates in a manner that is consistent with our investment
objective, investment strategy, regulatory consideration and other relevant factors. If opportunities arise that would otherwise be appropriate
for us and an affiliate to purchase different securities in the same issuer, our Advisor will need to decide which account will proceed
with such investment. Our Advisor's investment allocation policy incorporates the conditions of exemptive relief to seek to ensure
that investment opportunities are allocated in a manner that is fair and equitable. However, although the Advisor endeavors to fairly
allocate investment opportunities in the long run, we can offer no assurance that investment opportunities will be allocated to us fairly
or equitably in the short term.

 We do not expect to invest in, or hold securities
of, companies that are controlled by our affiliates' other clients. If our affiliates' other client or clients gain control
over one of our portfolio companies, this may create conflicts of interest and subject us to certain restrictions under the 1940 Act.
As a result of these conflicts and restrictions our Advisor may be unable to implement our investment strategies as effectively as it
could have in the absence of such conflicts or restrictions. For example, as a result of a conflict or restriction, our Advisor may be
unable to engage in certain transactions that it would otherwise pursue. In order to avoid these conflicts and restrictions, our Advisor
may choose to exit these investments prematurely and, as a result, we may forgo positive returns associated with such investments. In
addition, to the extent that another client holds a different class of securities than us as a result of such transactions, our interests
may not be aligned. Our ability to enter into transactions with our affiliates may be restricted.

 In situations where co-investment with affiliates'
other clients is not permitted under the 1940 Act and related rules, existing or future staff guidance, or the terms and conditions of
exemptive relief that have been granted to our Advisor and its affiliates by the SEC, our Advisor will need to decide which client or
clients will proceed with the investment. Generally, we will not have an entitlement to make a co-investment in these circumstances and,
to the extent that another client elects to proceed with the investment, we will not be permitted to participate. Moreover, except in
certain circumstances, we will be unable to invest in any issuer in which an affiliate's other client holds a controlling interest.
These restrictions may limit the scope of investment opportunities that would otherwise be available to us.

 We will be prohibited under the 1940 Act from participating
in certain transactions with certain affiliates of ours without the prior approval of a majority of our independent directors and, in
some cases, the SEC. 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 will generally be prohibited from buying or selling any securities from or to such affiliate on a
principal basis, absent the prior approval of our Board and, in some cases, the SEC. The 1940 Act also prohibits certain "joint"
transactions with certain affiliates of ours, which in certain circumstances could include investments in the same portfolio company (whether
at the same or different times to the extent the transaction involves a joint investment), without prior approval of our Board and, in
some cases, the SEC. If a person acquires more than 25% of our voting securities, we will be prohibited from buying or selling any security
from or to such person or certain of that person's affiliates, or entering into prohibited joint transactions with such persons,
absent the prior approval of the SEC. Similar restrictions limit our ability to transact business with our officers or directors or their
affiliates.

 The SEC has interpreted the BDC regulations governing
transactions with affiliates to prohibit certain "joint transactions" involving entities that share a common investment advisor.
As a result of these restrictions, we may be prohibited from buying or selling any security from or to any portfolio company that is controlled
by a fund managed by the Advisor or their respective affiliates except under certain circumstances or without the prior approval of the
SEC, which may limit the scope of investment opportunities that would otherwise be available to us.

 We operate in a highly competitive market for
investment opportunities, which could reduce returns and result in losses.

 There will be competition for investments from numerous
other potential investors, many of which will have significant financial resources. As a result, there can be no guarantee that a sufficient
quantity of suitable investment opportunities for us will be found, that investments on favorable terms can be negotiated, or that we
will be able to fully realize the value of our investments. Competition for investments may have the effect of increasing our costs and
expenses or otherwise decreasing returns generated on underlying investments, thereby reducing our investment returns.

 A number of entities compete with us to make the types
of investments that we plan to make in middle market companies, including BDCs, traditional commercial banks, private investment funds,
regional banking institutions, small business investment companies, investment banks and insurance companies. Additionally, with increased
competition for investment opportunities, alternative investment vehicles such as hedge funds may seek to invest in areas they have not
traditionally invested in or from which they had withdrawn during the economic downturn, including investing in middle market companies.
We will 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 we do. 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 qualify and maintain our qualification as a RIC. As a result of this competition, we
may from time to time not be able to take advantage of attractive investment opportunities, and we may not be able to identify and make
investments that are consistent with our investment objective.

 With respect to the investments we make, we do not
seek to compete based primarily on the interest rates we offer, and we believe that some of our competitors may make loans with interest
rates that will be lower than the rates we offer. 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. Although our Advisor allocates opportunities
in accordance with its allocation policy, allocations to other accounts managed or sponsored by our Advisor or its affiliates reduce the
amount and frequency of opportunities available to us and may not be in the best interests of us and our stockholders.

 The competitive pressures we face may have a material
adverse effect on our business, financial condition and results of operations.

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

 We have elected, and intend to qualify annually thereafter,
to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code; however, no assurance can be given that we
will be able to qualify for and maintain RIC tax treatment. In order to qualify, and maintain qualification, 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 to our stockholders dividends for U.S. federal income tax purposes of an amount generally at least equal to
the sum of 90% of our investment company taxable income, which is generally our net ordinary income plus the excess of our net short-term
capital gains in excess of our net long-term capital losses, determined without regard to any deduction for dividends paid, and 90% of
our net tax-exempt interest income, if any, to our stockholders on an annual basis. We are 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 continue to qualify as a RIC. If we are unable to obtain cash
from other sources, we may fail to be subject to tax as a RIC and, thus, may be subject to corporate-level income tax. To continue to
qualify as a RIC, we must also meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure
to meet these requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of our qualification
as a RIC. Because a significant portion of our investments are 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-level income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available
for distributions to stockholders and the amount of our distributions 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 be subject to risks that may arise in
connection with the rules under ERISA related to investment by ERISA Plans.

 We intend to operate so that we will be an appropriate
investment for employee benefit plans subject to Employee Retirement Income Security Act of 1974, as amended ("ERISA"). We
will use reasonable efforts to conduct our affairs so that our assets will not be deemed to be "plan assets" for purposes
of ERISA. Accordingly, there may be constraints on our ability to make or dispose of investments at optimal times (or to make certain
investments at all).

 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 include in
income certain amounts that we have not yet received in cash, such as the accretion of original issue discount ("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, is included in
income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we do
not receive in cash. We may be also subject to the following risks associated with PIK and OID investments:

 The
interest payments deferred on a PIK loan are subject to the risk that the borrower may default when the deferred payments are due in
cash at the maturity of the loan;

 The
interest rates on PIK loans are higher to reflect the time-value of money on deferred interest payments and the higher credit risk of
borrowers who may need to defer interest payments;

 Market
prices of OID instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that
pay interest periodically in cash;

 PIK
instruments may have unreliable valuations because the accruals require judgments about ultimate collectability of the deferred payments
and the value of the associated collateral;

 Use
of PIK and OID securities may provide certain benefits to our Advisor including increasing management fees;

 We
may be required under the tax laws to make distributions of OID income to stockholders without receiving any cash. Such required cash
distributions may have to be paid from borrowings, offering proceeds or the sale of our assets; and

 The
required recognition of OID, including PIK, interest for U.S. federal income tax purposes may have a negative impact on liquidity, because
it represents a non-cash component of our taxable income that must, nevertheless, be distributed in cash to investors to avoid it being
subject to corporate level taxation.

 Part of the incentive fee payable by us that relates
to our net investment income is computed and paid on income that may include interest that has been accrued but not yet received in cash,
such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities. If a portfolio
company defaults on a loan that is structured to provide accrued interest, it is possible that accrued interest previously used in the
calculation of the incentive fee will become uncollectible, and the Advisor will have no obligation to refund any fees it received in
respect of such accrued income.

 Since in certain cases we may recognize income before
or without receiving cash representing such income, we may have difficulty meeting the requirement in a given taxable year to distribute
to our stockholders dividends for U.S. federal income tax purposes an amount at least equal to the sum of 90% of our investment company
taxable income, determined without regard to any deduction for dividends paid, and 90% of our net tax-exempt interest income, if any,
to our stockholders to qualify and maintain our ability to be subject to tax 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.

 Regulations governing our operation as a BDC
affect our ability to, and the way in which we, raise additional capital. As a BDC, the necessity of raising additional capital exposes
us to risks, including the typical risks associated with leverage.

 We intend to further borrow under credit facilities
and/or issue senior unsecured notes and, may issue preferred stock in the future (although we do not anticipate issuing preferred stock
in the next 12 months), 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 are currently permitted to issue "senior securities," including borrowing money
from banks or other financial institutions, only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least
150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities.
If we fail to comply with certain disclosure requirements, our asset coverage ratio under the 1940 Act would be 200%, which would decrease
the amount of leverage we are able to incur.

 Nevertheless, if the value of our assets declines,
we may be unable to satisfy this ratio. If that happens, we may be required to sell a portion of our investments and, depending on the
nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we
use to service our indebtedness would not be available for distributions to holders of our shares of common stock. If we issue senior
securities, we will be exposed to typical risks associated with leverage, including an increased risk of loss. In addition, if the value
of our assets decreases, leverage will cause our net asset value to decline more sharply than it otherwise would have without leverage
or with lower leverage. Similarly, any decrease in our revenue would cause its net income to decline more sharply than it would have if
we had not borrowed or had borrowed less under the credit facilities.

 In the absence of an event of default, no person or
entity from which we borrow money has a veto right or voting power over our ability to set policy, make investment decisions or adopt
investment strategies. If we issue preferred stock, which is another form of leverage, the preferred stock would rank "senior"
to common stock in our capital structure, preferred stockholders would have separate voting rights on certain matters and might have other
rights, preferences or privileges more favorable than those of our common stockholders, and the issuance of preferred stock could have
the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of
our common stock or otherwise be in the best interest of our common stockholders. Holders of our common stock will directly or indirectly
bear all of the costs associated with offering and servicing any preferred stock that we issue. In addition, any interests of preferred
stockholders may not necessarily align with the interests of holders of our shares of common stock, and the rights of holders of shares
of preferred stock to receive distributions would be senior to those of holders of shares of common stock. We do not, however, anticipate
issuing preferred stock in the next 12 months.

 We are not generally able to issue and sell our shares
of common stock at a price below NAV per share. We may, however, sell our shares of common stock, or warrants, options or rights to acquire
our shares of 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 the best interests of us and our stockholders, and if our stockholders 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). If we raise additional funds by issuing common stock or senior
securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our stockholders at that time will
decrease, and holders of our common stock might experience dilution.

 We finance our investments with borrowings under
credit facilities and issuances of senior unsecured notes, which will magnify the potential for gain or loss on amounts invested and may
increase the risk of investing in us.

 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. The amount of leverage that we employ will depend on the Advisor's and our Board's assessment
of market and other factors at the time of any proposed borrowing. We cannot assure you that we will be able to obtain credit at all or
on terms acceptable to us. For example, due to the interplay of the 1940 Act restrictions on principal and joint transactions and the
U.S. risk retention rules adopted pursuant to Section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"),
as a BDC we are currently unable to enter into any securitization transactions. We cannot assure you that the SEC or any other regulatory
authority will modify such regulations or provide administrative guidance that would permit us to enter into securitizations, whether
on a timely basis or at all. We may issue senior debt securities to banks, insurance companies and other lenders. Lenders of these senior
securities will 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 or future credit facilities we enter into, we are likely to be required by its terms 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 our NAV to decline more sharply than it otherwise would
have had we not leveraged, thereby magnifying losses or eliminating our equity stake in a leveraged investment. Similarly, any decrease
in our net investment 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 distributions on our common stock or any outstanding preferred stock. Our ability to
service our debt depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures.
Our common stockholders 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 Advisor.

 As a BDC, we generally are required to meet a coverage
ratio of total assets to total borrowings and other senior securities, which include our borrowings under our credit facilities and issuances
of senior unsecured notes and any preferred stock that we may issue in the future (although we do not anticipate issuing preferred stock
in the next 12 months). The current asset coverage ratio applicable to the Company is 150%. If this ratio were to decline below the then
applicable minimum asset coverage ratio, we would be unable to incur additional debt and could be required to sell a portion of our investments
to repay some debt when it is disadvantageous to do so. This could have a material adverse effect on our operations, and we may not be
able to make distributions in amounts sufficient to maintain our status as a RIC, or at all.

 Provisions in our credit facilities and our
senior unsecured notes contain various covenants, which, if not complied with, could accelerate our repayment obligations under such facilities,
thereby materially and adversely affecting our liquidity, financial condition, results of operations and ability to pay distributions.

 Our Credit Facilities (as defined herein) are backed
by all or a portion of our loans and securities on which the lenders have a security interest. 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 instrument we enter into with the lenders pursuant
to our Credit Facilities. We expect that any security interests we grant will be set forth in a pledge and security agreement or other
collateral arrangement and evidenced by the filing of financing statements by the agent for the lenders. In addition, we expect that the
custodian for our securities serving as collateral for such loan would include in its 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. If we default under the terms of our Credit
Facilities, the agent for the applicable lenders would be able to assume control of the timing of disposition of any or all of our assets
securing such debt, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

 In addition, any security interests and/or negative
covenants contained in our Credit Facilities limit our ability to create liens on assets to secure additional debt and make it difficult
for us to restructure or refinance indebtedness at or prior to maturity. If our borrowing base under a credit facility decreases, we may
be required to secure additional assets in an amount sufficient to cure 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 indebtedness under our Credit Facilities 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 make distributions. We have made customary representations and warranties and are required to comply with various covenants, reporting
requirements (including requirements relating to portfolio performance, required minimum portfolio yield and limitations on delinquencies
and charge-offs) and other customary requirements for similar credit facilities.

 Our 8.65% Series A Notes due June 2027 (the "Series
A Notes") and 8.74% Series B Notes due June 2028 (the "Series B Notes", and collectively with the Series A Notes, the
"Notes") were issued under a note purchase agreement, dated June 29, 2023 (the "Note Purchase Agreement"). The
Note Purchase Agreement contains certain representations and warranties, and various covenants and reporting requirements customary for
agreements of this type, including, without limitation, information reporting, maintenance of our status as a BDC within the meaning of
the 1940 Act, and certain restrictions with respect to transactions with affiliates, fundamental changes, changes of line of business
and permitted liens. In addition, the Note Purchase Agreement contains the following financial covenants, which are measured as of each
fiscal quarter-end: (a) maintaining a minimum shareholders' equity and (b) maintaining a minimum asset coverage ratio.

 Our continued compliance with the covenants contained
under the Credit Facilities and the Note Purchase Agreement depends on many factors, some of which are beyond our control, and there can
be no assurances that we will continue to comply with such covenants. Our failure to satisfy the respective covenants could result in
foreclosure by the lenders under the applicable credit facility or governing instrument or acceleration by the applicable lenders or noteholders,
which would accelerate our repayment obligations under the relevant agreement and thereby have a material adverse effect on our business,
liquidity, financial condition, results of operations and ability to pay distributions to our stockholders. Because the Credit Facilities
and the Note Purchase Agreement have, and any future credit facilities and documents governing the issuance of senior unsecured notes
will likely have, customary cross-default provisions, if the indebtedness under the Credit Facilities or represented by the Series A Notes
or the Series B Notes or under any future credit facility or senior unsecured note, is accelerated, we may be unable to repay or finance
the amounts due.

 Adverse developments in the credit markets may
impair our ability to enter into new credit facilities or our ability to issue senior unsecured notes.

 Following the passage of Dodd-Frank, 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 routine refinancing
and loan modification transactions and even reviewed the terms of existing facilities to identify bases for accelerating the maturity
of existing lending facilities. To the extent these circumstances arise again in the future, it may be difficult for us to finance the
growth of our investments on acceptable economic terms, or at all, and one or more of our credit facilities could be accelerated by the
lenders.

 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
and such failure would decrease our operating flexibility.

 As a BDC, we may not acquire any assets other than
"qualifying assets" unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are
qualifying assets.

 In the future, we believe that most of our investments
will constitute qualifying assets. However, 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 would significantly
decrease our operating flexibility and 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.

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

 The majority of our portfolio investments take the
form of securities for which no market quotations are readily available. The fair value of securities and other investments that are not
publicly traded may not be readily determinable, and we value these securities at fair value as determined in good faith by our Advisor,
including to reflect significant events affecting the value of our securities. As discussed in more detail under " Management's
Discussion and Analysis of Financial Condition and Results of Operations – Contractual Obligations – Investment Valuation,"
most, if not all, of our investments (other than cash and cash equivalents) are classified as Level 3 under ASC Topic 820. This means
that our portfolio valuations are based on unobservable inputs and our own assumptions about how market participants would price the asset
or liability in question. Inputs into the determination of fair value of our portfolio investments 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 may 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.

 Our Level 3 investments will typically consist of
instruments for which a liquid trading market does not exist. The fair value of these instruments may not be readily determinable. We
will value these instruments in accordance with valuation procedures adopted by our Advisor. We intend to use the services of an independent
valuation firm to review the fair value of certain instruments prepared by our Advisor. At least once annually, the valuation for each
portfolio investment for which a market quote is not readily available will be reviewed by an independent valuation firm. The types of
factors that the Advisor may consider in fair value pricing of our investments include, where relevant: the nature and realizable value
of any collateral; the company's ability to make interest payments, amortization payments (if any) and other fixed charges; the
company's historical and projected financial results; the markets in which the company does business; the estimated enterprise value
of the company based on comparisons to publicly-traded securities, on discounted cash flows and other valuation methodologies; changes
in the interest rate environments and the credit markets generally that may affect the price at which similar investments may be made;
and other relevant factors. Because such valuations, and particularly valuations of non-traded instruments and private companies, are
inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The determination of fair value by
our Advisor may differ materially from the values that would have been used if a liquid trading market for these instruments existed.
Our NAV could be adversely affected if the determinations regarding the fair value of our investments were materially higher than the
values that we ultimately realize upon the disposal of such investments.

 We adjust quarterly (or as otherwise may be required
by the 1940 Act in connection with the issuance of our shares) the valuation of our portfolio to reflect our Advisor's determination
of the fair value of each investment in our portfolio. Any changes in fair value are recorded in our consolidated statement of operations
as net change in unrealized appreciation or depreciation.

 New or modified laws or regulations governing
our operations and government intervention in the credit markets generally 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 particular, Dodd-Frank has impacted many aspects of the financial services industry, and it requires
the development and adoption of many implementing regulations over several years. The SEC has adopted final rules for over 60 mandatory
rulemaking provisions under Dodd-Frank, with several additional rules proposed but not yet adopted. While the ultimate impact of Dodd-Frank
on us and our portfolio companies may not be known for an extended period of time, Dodd-Frank, including the interpretation of the rules
implementing its provisions and any future rules that may be adopted, along with other legislative and regulatory proposals directed at
the financial services industry or affecting taxation that may be proposed in the future, may negatively impact the operations, cash flows
or financial condition of us or our portfolio companies, impose additional costs on us or our portfolio companies, intensify the regulatory
supervision of us or our portfolio companies or otherwise adversely affect our business or the business of our portfolio companies.

 In addition, the central banks and, in particular,
the U.S. Federal Reserve, have taken unprecedented steps since the financial crises of 2008-2009 and the COVID-19 global pandemic and
in response to inflationary pressures. On the other hand, recent governmental intervention could mean that the willingness of governmental
bodies to take additional extraordinary action is diminished. It is impossible to predict if, how, and to what extent the United States
and other governments would further intervene in credit markets. As a result, in the event of near-term major market disruptions, like
those caused by the COVID-19 pandemic, there might be only limited additional government intervention, resulting in correspondingly greater
market dislocation and materially greater market risk.

 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 ourselves
of new or different opportunities or result in the imposition of corporate-level taxes on us. Such changes could result in material differences
to our strategies and plans and may shift our investment focus from the areas of expertise of the Advisor to other types of investments
in which the Advisor 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 your investment. If we invest in commodity interests in the future, the Advisor may determine
not to use investment strategies that trigger additional regulation by the U.S. Commodity Futures Trading Commission (the "CFTC"),
or may determine to operate subject to CFTC regulation, if applicable. If we or the Advisor were to operate subject to CFTC regulation,
we may incur additional expenses and would be subject to additional regulation.

 In addition, certain regulations applicable to
debt securitizations implementing credit risk retention requirements that have taken effect in both the U.S. and in Europe may adversely
affect or prevent us from entering into any future securitization transaction. The impact of these risk retention rules on the loan securitization
market are uncertain, and such rules may cause an increase in our cost of funds under or may prevent us from completing any future securitization
transactions. On October 21, 2014, U.S. risk retention rules adopted pursuant to Section 941 of Dodd-Frank, or the U.S. Risk Retention
Rules, were issued. The U.S. Risk Retention Rules require the sponsor (directly or through a majority-owned affiliate) of a debt securitization
subject to such rules, such as collateralized loan obligations, in the absence of an exemption, to retain an economic interest in the
credit risk of the assets being securitized in the form of an eligible horizontal residual interest, an eligible vertical interest, or
a combination thereof, in accordance with the requirements of the U.S. Risk Retention Rules. The U.S. Risk Retention Rules became effective
December 24, 2016. Given the more attractive financing costs associated with these types of debt securitization as opposed to other types
of financing available (such as traditional senior secured facilities), this would, in turn, increase our financing costs. Any associated
increase in financing costs would ultimately be borne by our common stockholders.

 On May 24, 2018, the Economic Growth, Regulatory Relief,
and Consumer Protection Act was enacted, which left the architecture and core features of Dodd-Frank intact but significantly recalibrated
applicability thresholds, revised various post-crisis regulatory requirements, and provided targeted regulatory relief to certain financial
institutions. Among the most significant of its amendments to Dodd-Frank were a substantial increase in the $50 billion asset threshold
to $250 billion for automatic regulation of bank holding companies ("BHCs") as "systemically important financial institutions,"
an exemption from the Volcker Rule for insured depository institutions with less than $10 billion in consolidated assets and lower levels
of trading assets and liabilities, and amendments to the liquidity leverage ratio and supplementary leverage ratio requirements. In addition,
effective October 1, 2020, the U.S. Federal Reserve, SEC and other federal agencies modified their regulations under the Volcker Rule
to loosen the restrictions on financial institutions. The effects of these and any further rules or regulations that may be enacted by
the federal government are and could be complex and far-reaching, and the change and any future laws or regulations or changes thereto
could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision
of us or otherwise adversely affect our business, financial condition and results of operations.

 Over the last several years, there also has been an
increase in regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some
portion of the non-bank financial sector will be subject to new regulation. While it cannot be known at this time whether any regulation
will be implemented or what form it will take, increased regulation of non-bank credit extension could negatively impact our operations,
cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect
our business, financial condition and results of operations.

 Ongoing implementation of, or changes in, including
changes in interpretation or enforcement of, laws and regulations could impose greater costs on us and on financial services companies
and impact the value of assets we hold and our business, financial condition and results of operations. In addition, uncertainty regarding
legislation and regulations affecting the financial services industry or taxation could also adversely impact our business or the business
of our portfolio companies. If we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for
the conduct of our business and may be subject to civil fines and criminal penalties.

 Our Board may change our investment objective,
operating policies and strategies without prior notice or stockholder approval, and we may temporarily deviate from our regular investment
strategy.

 Our Board has the authority, except as otherwise provided
in the 1940 Act, to modify or waive our investment objective and certain of our 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. We cannot predict the effect any changes to our current investment objective, operating policies
and strategies would have on our business, operating results and the price value of our common stock. Nevertheless, any such changes could
adversely affect our business and impair our ability to make distributions.

 The Advisor can resign on 60 days' notice,
and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely
affect our financial condition, business and results of operations.

 The Advisor has the right to resign under the Investment
Advisory Agreement at any time upon not less than 60 days' written notice, whether we have found a replacement or not. If the Advisor
resigns, we may not be able to find a new investment advisor 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 business, financial condition, results of operations and cash flows as well as our ability to pay distributions
are likely to be adversely affected and the value of our shares may decline. In addition, the coordination of our internal management
and investment activities 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 Advisor and its affiliates. Even if we are able to retain comparable management, whether
internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional
costs and time delays that may adversely affect our business, financial condition, results of operations and cash flows.

 We incur significant costs as a result of being registered under
the Exchange Act.

 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 requirements under the Sarbanes-Oxley Act and other rules implemented
by the SEC.

 Efforts to comply with the Exchange Act and
the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance will adversely affect us and the value of our shares
of common stock.

 As a public entity, we are subject to the reporting
requirements of the Exchange Act and requirements of the Sarbanes-Oxley Act. These requirements may place a strain on our systems
and resources. The Exchange Act requires that we file annual, quarterly and current reports with respect to our business and financial
condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial
reporting, which are discussed below.

 We have implemented procedures,
processes, policies and practices for the purpose of addressing such standards and requirements applicable to public companies. Our management
will be required to report on our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. We
will be required to review on an annual basis our internal control over financial reporting, and on a quarterly and annual basis to evaluate
and disclose changes in our internal control over financial reporting. As a result, we expect to incur significant additional annual expenses
related to these steps and, among other things, directors' and officers' liability insurance, director fees, reporting requirements
of the SEC, expenses associated with corporate governance requirements, transfer agent fees, additional administrative expenses payable
to the Administrator to compensate them for hiring additional accounting, legal and administrative personnel, increased auditing and legal
fees and similar expenses. This process will also result in a diversion of management's time and attention. We do not know when
our evaluation, testing and remediation actions will be completed or its impact on our operations. In addition, we may be unable to ensure
that the process is effective or that our internal control over financial reporting is or will be effective. In the event that we are
unable to come into and maintain compliance with the Sarbanes-Oxley Act and related rules, we and the value of our securities would be
adversely affected.

 Our independent registered public
accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting until the date we
are no longer an emerging growth company under the JOBS Act. Because we do not currently have comprehensive documentation of our internal
control and have not yet tested our internal control in accordance with Section 404 of the Sarbanes-Oxley Act, we cannot conclude,
as required by Section 404, that we do not have a material weakness in our internal control or a combination of significant deficiencies
that could result in the conclusion that we have a material weakness in our internal control. If we are not able to implement the applicable
requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner or with adequate compliance, our operations, financial reporting
or financial results could be adversely affected. Matters impacting our internal controls may cause us to be unable to report our financial
information on a timely basis and thereby subject us to adverse regulatory consequences, including sanctions by the SEC, and result in
a breach of the covenants under the agreements governing any of our financing arrangements. There could also be a negative reaction in
the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. Confidence in the reliability
of our financial statements could also suffer if we or our independent registered public accounting firm were to report a material weakness
in our internal controls over financial reporting. This could materially adversely affect us.

 Our internal control over financial
reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the
circumvention or overriding of controls, or fraud. Even effective internal controls can provide only reasonable assurance with respect
to the preparation and fair presentation of financial statements. If we fail to maintain the adequacy of our internal controls, including
any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and
operating results could be harmed and we could fail to meet our financial reporting obligations.

 We are highly dependent on information systems,
and cybersecurity risks and cyber incidents may adversely affect our business or the business of our portfolio companies, which may, in
turn, negatively affect the value of our shares of common stock and our ability to pay distributions.

 Our business depends on the communications and information
systems of our Advisor and its affiliates, our portfolio companies and third-party service providers. These systems are subject to potential
cybersecurity attacks and incidents, including through adverse events that threaten the confidentiality, integrity or availability of
our information resources. Cyber hacking could also cause significant disruption and harm to the companies in which we invest. Additionally,
digital and network technologies might be at risk of cyberattacks that could potentially seek unauthorized access to digital systems for
purposes such as misappropriating sensitive information, corrupting data or causing operational disruption. Cyberattacks might potentially
be carried out by persons using techniques that could range from efforts to electronically circumvent network security or overwhelm websites
to intelligence gathering and social engineering functions aimed at obtaining information necessary to gain access. These attacks could
involve gaining unauthorized access to our information systems for purposes of misappropriating assets, stealing confidential information,
corrupting data or causing operational disruption and result in disrupted operations, misstated or unreliable financial data, liability
for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our business relationships,
any of which could, in turn, have a material adverse effect on our operating results and negatively affect the value of our securities
and our ability to pay distributions to our stockholders.

 As our reliance on technology has increased, so have
the risks posed to our information systems, both internal and those provided by the Advisor and third-party service providers. In addition,
we and the Advisor currently or in the future are expected to routinely transmit and receive personal, confidential and proprietary information
by email and other electronic means. We and the Advisor may not be able to ensure secure capabilities with all of our clients, vendors,
service providers, counterparties and other third parties to protect the confidentiality of the information.

 In addition, we, the Advisor and many of our third-party
service providers currently have work from home policies. Such a policy of remote working could strain our technology resources and introduce
operational risks, including heightened cybersecurity risks and other risks described above. Remote working environments may be less secure
and more susceptible to hacking attacks, including phishing and social engineering attempts. There is no assurance that any efforts to
mitigate cybersecurity risks undertaken by us or our Advisor will be effective. Network, system, application and data breaches as a result
of cybersecurity risks or cyber incidents could result in operational disruptions or information misappropriation that could have a material
adverse effect on our business, results of operations and financial condition of us and of our portfolio companies.

 Purchases of shares of our common
stock by us under our open market repurchase program, including the Company Rule 10b5-1 Plan, may result in the price of shares of
our common stock being higher than the price that otherwise might exist in the open market and are subject to our ability to finance such
repurchases.

 Our Board has authorized us to repurchase
shares of our common stock through an open-market share repurchase program for up to $100 million in the aggregate of shares of our
common stock within one year of the closing of the IPO. Pursuant to such authorization and concurrently with the closing of the IPO, we
entered into the Company 10b5-1 Plan to acquire up to $100 million in the aggregate of shares of our Common Stock, in accordance
with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Exchange Act, and will otherwise be subject
to applicable law, including Regulation M, which may prohibit purchases under certain circumstances. These activities may have the effect
of maintaining the market price of shares our Common Stock or retarding a decline in the market price of the shares of our Common Stock,
and, as a result, the price of our shares of Common Stock may be higher than the price that otherwise might exist in the open market.

 In addition, we may further borrow
under credit facilities and/or issue senior unsecured notes in the future in order to finance repurchases of shares. We can offer no assurance
that we will be successful in obtaining suitable debt investments to finance purchases under the Company 10b5-1 Plan. Whether purchases
will be made under the Company 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices,
trading volumes and our ability to finance repurchases, all of which we cannot predict.

 There may be trademark risk, as we do not own
the Kayne Anderson name.

 We do not own the Kayne Anderson name, but we are
permitted to use it as part of our corporate name pursuant to a license agreement with the Advisor. Use of the name by other parties or
the termination of the license agreement may harm our business.

 Risks Relating to Our Investments

 We are subject to risks associated with the
current interest rate environment, and rising interest rates could affect the value of our investments and make it more difficult for
portfolio companies to make periodic payments on their loans.

 Interest rate risk refers to the risk of market changes
in interest rates. Interest rate changes affect the value of debt. In general, rising interest rates will negatively impact the price
of fixed rate debt, and falling interest rates will have a positive effect on price. Adjustable-rate debt also reacts to interest rate
changes in a similar manner, although generally to a lesser degree. Interest rate sensitivity is generally larger and less predictable
in debt with uncertain payment or prepayment schedules. Further, rising interest rates make it more difficult for borrowers to repay debt,
which could increase the risk of payment defaults. 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.

 During any period of higher-than-normal levels of
inflation, such as the current inflationary environment, interest rates typically increase. Higher interest rates will increase the cost
of our borrowings and may reduce returns to stockholders (including resulting in lower dividend payments by us). Further, in response
to rising risk-free interest rates, market participants could require higher rates of interest on the types of loans and credit investments
that we own, which would decrease the value of those investments.

 In an effort to control inflation, the U.S. Federal
Reserve Board (the "Fed") has sharply raised interest rates in recent years, and they remain near their highest levels in
over twenty years. Other central banks globally have implemented similar rate increases. A wide variety of factors can cause interest
rates to rise (e.g., central bank monetary policies, inflation rates, or general economic conditions). Although recently both the Fed
and other central banks globally have begun lowering rates, there is no certainty that further reductions will occur. There is no assurance
that the actions being taken by the Fed will improve the outlook for long-term inflation or whether they might result in a recession.
A recession could lead to declined employment, global demand destruction and/or business failures, which may result in a decline in the
value of our portfolio. In addition, increased interest rates could increase our cost of borrowing and reduce the return on leverage to
common stockholders.

 Our business is dependent on bank relationships
and recent strain on the banking system may adversely impact us.

 The financial markets recently have encountered volatility
associated with concerns about the balance sheets of banks, especially small and regional banks, which may have significant losses associated
with investments that make it difficult to fund demands to withdraw deposits and other liquidity needs. Although the federal government
has announced measures to assist these banks and protect depositors, some banks have already been impacted and others may be materially
and adversely impacted. Our business is dependent on bank relationships and we are proactively monitoring the financial health of such
bank relationships. Continued strain on the banking system may adversely impact our business, financial condition and results of operations.
To the extent that our portfolio companies work with banks that are negatively impacted by the foregoing, such portfolio companies'
ability to access their own cash, cash equivalents and investments may be threatened. In addition, such affected portfolio companies may
not be able to enter into new banking arrangements or credit facilities or receive the benefits of their existing banking arrangements
or facilities. Any such developments could harm our business, financial condition, and operating results, and prevent us from fully implementing
our investment plan. Continued strain on the banking system may adversely impact our business, financial condition and results of operations.

 Limitations of investment due diligence expose
us to investment risk.

 Our due diligence may not reveal all of a portfolio
company's liabilities and may not reveal other weaknesses in its business. We can offer no assurance that our due diligence processes
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 Advisor will assess the strength and skills of a company's management 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 Advisor 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 those entities.

 We may make investments in, or loans to, companies
that are not subject to public company reporting requirements including requirements regarding preparation of financial statements, and
our portfolio companies may utilize divergent reporting standards that may make it difficult for the Advisor to accurately assess the
prior performance of a portfolio company. We will, therefore, depend upon the compliance by investment companies with their contractual
reporting obligations. As a result, the evaluation of potential investments and our ability to perform due diligence on and effectively
monitor investments may be impeded, and we may not realize the returns which we expect 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.

 We invest in highly leveraged companies, which
could cause us to lose all or a part of our investment in those 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 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 we may have obtained in connection with our investment. In addition,
leveraged companies may experience bankruptcy or similar financial distress that may adversely and permanently affect the issuer, in addition
to risks associated with the duration and administrative costs of bankruptcy proceedings.

 Smaller leveraged companies and middle market 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. Middle market companies may have limited financial resources, may have difficulty accessing
the capital markets to meet future capital needs and may be unable to meet their obligations under their 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
we may have obtained in connection with our investment. 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. Middle market companies are also more likely to depend on the management
talents and efforts of a small group of persons, and the death, disability, resignation or termination of one or more of these persons
could have a material adverse impact on our portfolio company and, in turn, on us.

 The debt that we invest in is typically not rated
by any rating agency, but we believe that if such investments were rated, they would be below investment grade (rated lower than "Baa3"
by Moody's Investors Service, lower than "BBB-" by Fitch Ratings or lower than "BBB-" by Standard &
Poor's Ratings Services), which under the guidelines established by these rating entities is an indication of having predominantly
speculative characteristics with respect to the issuer's capacity to pay interest and repay principal. Bonds that are rated below
investment grade are sometimes referred to as "high yield bonds" or "junk bonds." Therefore, our investments
will result in an above average amount of risk and volatility or loss of principal.

 We are subject to risks associated with our
investments in unitranche secured loans and securities, including the potential loss of all or part of such investments.

 We invest in unitranche secured
loans, which are a combination of senior secured and junior secured debt in the same facility. Unitranche secured loans provide all of
the debt needed to finance a leveraged buyout or other corporate transaction, both senior and junior, but generally in a first-lien position,
while the borrower generally pays a blended, uniform interest rate rather than different rates for different tranches. Unitranche secured
debt generally requires payments of both principal and interest throughout the life of the loan. Generally, we expect these securities
to carry a blended yield that is between senior secured and junior debt interest rates. Unitranche secured loans provide a number of advantages
for borrowers, including the following: simplified documentation, greater certainty of execution and reduced decision-making complexity
throughout the life of the loan. In some cases, a portion of the total interest may accrue or be paid in kind. Because unitranche secured
loans combine characteristics of senior and junior financing, unitranche secured loans have risks similar to the risks associated with
senior secured and second-lien loans and junior debt in varying degrees according to the combination of loan characteristics of the unitranche
secured loan.

 Our investments in securities that are rated
below investment grade (i.e. "junk bonds") may be risky and we could lose all or part of our investments.

 We invest in securities that
are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. 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 difficult to value and illiquid. The major risks of below
investment grade securities include:

 Below investment grade securities
may be issued by less creditworthy issuers. Issuers of below investment grade securities may have a larger amount of outstanding debt
relative to their assets than issuers of investment grade securities. In the event of an issuer's bankruptcy, claims of other creditors
may have priority over the claims of holders of below investment grade securities, leaving few or no assets available to repay holders
of below investment grade securities.

 Prices of below investment grade
securities are subject to extreme price fluctuations. Adverse changes in an issuer's industry and general economic conditions may
have a greater impact on the prices of below investment grade securities than on other higher-rated fixed-income securities.

 Issuers of below investment
grade securities may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer
developments, or the unavailability of additional financing.

 Below investment grade securities
frequently have redemption features that permit an issuer to repurchase the security from us before it matures. If the issuer redeems
below investment grade securities, we may have to invest the proceeds in securities with lower yields and may lose income.

 Below investment grade securities
may be less liquid than higher-rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the below
investment grade securities market, and there may be significant differences in the prices quoted by the dealers. Judgment may play a
greater role in valuing these securities and we may be unable to sell these securities at an advantageous time or price.

 We may incur expenses to the extent necessary to seek
recovery upon default or to negotiate new terms with a defaulting issuer.

 Defaults by our portfolio companies, including
defaults relating to collateral, will 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, termination of its loans and foreclosure
on its assets, which could trigger cross-defaults under other agreements and jeopardize such company's ability to meet its obligations
under the 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. In addition, lenders in certain cases can be subject to lender liability claims for actions
taken by them when they become too involved in the borrower's business or exercise control over a borrower. It is possible that
we could become subject to a lender's liability claim, including as a result of actions taken if we render managerial assistance
to the borrower. Moreover, some of the loans in which we may invest may be "covenant-lite" loans. We use the term "covenant-lite"
loans to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, "covenant-lite"
loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they
are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower's
financial condition. Accordingly, to the extent we invest in "covenant-lite" loans, we may have fewer rights against a borrower
and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance
covenants.

 Certain debt investments that we make in portfolio
companies will be secured on a second priority basis by the same collateral securing senior 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 debt. The holders of
obligations secured by the 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 the sale or sales of all of the collateral would be sufficient to satisfy the debt 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 are not sufficient to repay amounts outstanding under the debt 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 debt investments in portfolio
companies in the form of borrowings under credit facilities or issuances of senior unsecured notes, meaning that such investments 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 debt 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 debt obligations after payment in full of all secured debt obligations. If such proceeds were not sufficient to
repay the outstanding secured debt 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.

 The rights we may have with respect to the collateral
securing any junior priority loans we make in our portfolio companies may also be limited pursuant to the terms of one or more intercreditor
agreements that we enter into with the holders of senior debt. Under such an intercreditor agreement, at any time that senior obligations
are outstanding, we may forfeit certain rights with respect to the collateral to the holders of these senior obligations. These rights
may include the right to commence enforcement proceedings against the collateral, the right to control the conduct of such enforcement
proceedings, the right to approve amendments to collateral documents, the right to release liens on the collateral and the right to waive
past defaults under collateral documents. We may not have the ability to control or direct such actions, even if as a result our rights
as junior lenders are adversely affected.

 The lack of liquidity and price decline in our
investments may adversely affect our business, including by reducing our NAV through increased net unrealized depreciation.

 We may invest in companies that are experiencing financial
difficulties, which difficulties may never be overcome. Our investments will be illiquid in most cases, and there can be no assurance
that we will be able to realize on such investments in a timely manner. A substantial portion of our investments in leveraged companies
are and 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.

 As a BDC, we are required to carry our investments
at market value or, if no market value is ascertainable, at fair value as determined in good faith by our Advisor. As part of the valuation
process, we may take into account the following types of factors, if relevant, in determining the fair value of our investments:

 the
enterprise value of the portfolio company;

 the
nature and realizable value of any collateral;

 the
company's ability to make interest payments, amortization payments (if any) and other fixed charges;

 call
features, put features and other relevant terms of the debt security;

 the
company's historical and projected financial results;

 the
markets in which the portfolio company does business; and

 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 and other relevant factors.

 In addition, if we are required to liquidate all or
a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments.
We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we, the Advisor
or any of its affiliates have material nonpublic information regarding such portfolio company.

 In addition, we generally expect to invest in securities,
instruments and assets that are not, and are not expected to become, publicly traded. We will generally not be able to sell securities
publicly unless the sale is registered under applicable securities laws, or unless an exemption from such registration requirements is
available.

 In certain cases, we may also be prohibited by contract
from selling an investment for a period of time or otherwise be restricted from disposing of the investment. Furthermore, certain types
of investments expected to be made may require a substantial length of time to realize a return or fully liquidate.

 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. 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.

 Further, in connection with the disposition of an
investment in a portfolio company, we may be required to make representations about the business and financial affairs of the portfolio
company, or we may be responsible for the contents of disclosure documents under applicable securities laws. We may also be required to
indemnify the purchasers of such investment or underwriters to the extent that any such representations or disclosure documents turn out
to be incorrect, inaccurate or misleading. These arrangements may result in contingent liabilities, for which we may establish reserves
or escrows. However, we can offer no assurance that we will adequately reserve for our contingent liabilities and that such liabilities
will not have an adverse effect on us. Such contingent liabilities might ultimately have to be funded by proceeds, including the return
of capital, from our other investments.

 Our portfolio companies may prepay loans, which
may reduce our yields if capital returned cannot be invested in transactions with equal or greater expected yields.

 The loans in our investment portfolio may be prepaid
at any time, generally with little advance notice. Whether a loan is prepaid will depend both on the continued positive performance of
the portfolio company and the existence of favorable financing market conditions that allow such company the ability to replace existing
financing with less expensive capital. As market conditions change, we do not know when, and if, prepayment may be possible for each portfolio
company. In some cases, the prepayment of a loan may reduce our achievable yield if the capital returned cannot be invested in transactions
with equal or greater expected yields, which could have a material adverse effect on our business, financial condition and results of
operations.

 Our portfolio companies may be unable to repay
or refinance outstanding principal on their loans at or prior to maturity.

 We have a maturity policy between three to six years
for our debt investments. The portfolio companies in which we invest may be unable to repay or refinance outstanding principal on their
loans at or prior to maturity. This risk and the risk of default are 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. As a result, once our investments mature, we
will need to seek new investments for such capital.

 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.

 Our investments in portfolio companies may expose
us to environmental risks.

 We may invest in companies engaged in the ownership
(direct or indirect), operation, management or development of real properties that may contain hazardous or toxic substances, and, therefore,
may be potentially liable for removal or remediation costs, as well as certain other costs, including governmental fines and liabilities
for injuries to persons and property. The existence of any such material environmental liability could have a material adverse effect
on the results of operations, cash flow and share price of any such portfolio company. As a result, our investment performance could suffer
substantially.

 There can be no guarantee that all costs and risks
regarding compliance with environmental laws and regulations can be identified. New and more stringent environmental and health and safety
laws, regulations and permit requirements or stricter interpretations of current laws or regulations could impose substantial additional
costs on portfolio investment or potential investments. Compliance with such current or future environmental requirements does not ensure
that the operations of the portfolio investments will not cause injury to the environment or to people under all circumstances or that
the portfolio investments will not be required to incur additional unforeseen environmental expenditures. Moreover, failure to comply
with any such requirements could have a material adverse effect on an investment, and we can offer no assurance that the portfolio investments
will at all times comply with all applicable environmental laws, regulations and permit requirements.

 We are a non-diversified investment company
within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion of our assets that may be invested
in securities of a single issuer.

 We are classified as a non-diversified investment
company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our
assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small
number of issuers, our NAV may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the
financial condition or the market's assessment of the issuer. We may also be more susceptible to any single economic or regulatory
occurrence than a diversified investment company. Beyond our asset diversification requirements as a RIC under the Code, we do not have
fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies.

 Our portfolio may be concentrated in a limited
number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on
its obligations under any of its debt instruments or if there is a downturn in a particular industry.

 Our portfolio may be concentrated in a limited number
of portfolio companies and industries. As a result, the aggregate returns we realize may be significantly and adversely affected if a
small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, while we are not
targeting any specific industries, our investments may be concentrated in relatively few industries. For example, although we may classify
the industries of our portfolio companies by end-market (such as health market or business services) and not by the products or services
(such as software) directed to those end-markets, some of our portfolio companies may principally provide software products or services,
which exposes us to downturns in that sector. As a result, a downturn in any particular industry in which we are invested could also significantly
impact the aggregate returns we realize.

 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 portfolio company. 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 our level of risk, because we prefer other opportunities or because
of regulatory or other considerations. Our ability to make follow-on investments may also be limited by the Advisor's allocation
policy.

 Because we generally do not hold controlling
equity interests in our portfolio companies, we may not be able to exercise control over our portfolio companies or to prevent decisions
by management of our portfolio companies that could decrease the value of our investments and there is no assurance that portfolio company
management will be able to operate their companies in accordance with our expectations.

 To the extent that we do not hold controlling equity
interests in portfolio companies, we will have a limited ability to protect our position in such portfolio companies. We may also co-invest
with third parties through partnerships, joint ventures or other entities. Such investments may involve risks in connection with such
third-party involvement, including the possibility that a third-party co-investor may have economic or business interests or goals that
are inconsistent with ours or may be in a position to take (or block) action in a manner contrary to our investment objective. In those
circumstances where such third parties involve a management group, such third parties may receive compensation arrangements relating to
such investments, including incentive compensation arrangements.

 Furthermore, the day-to-day operations of each portfolio
company in which we invest will be the responsibility of that portfolio company's management team. Although we will be responsible
for monitoring the performance of each investment and generally intend to invest in portfolio companies operated by strong management,
there can be no assurance that the existing management team, or any successor, will be able to operate any such portfolio company in accordance
with our expectations. There can be no assurance that a portfolio company will be successful in retaining key members of its management
team, the loss of whom could have a material adverse effect on us. Although we generally intend to invest in companies with strong management,
there can be no assurance that the existing management of such companies will continue to operate a company successfully.

 Our portfolio companies may incur debt that
ranks equally with, or senior to, our investments in such companies and such portfolio companies may not generate sufficient cash flow
to service their debt obligations to us.

 We may invest a portion of our capital in second lien
and subordinated loans issued by our portfolio companies. Our portfolio companies may have, or be permitted to incur, other debt that
ranks equally with, or senior to, the debt securities in which we invest. Such subordinated investments are subject to greater risk of
default than senior obligations as a result of adverse changes in the financial condition of the obligor 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. By
their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before
the dates on which we are entitled to receive payments in respect of the securities in which we invest. These debt instruments would usually
prohibit the portfolio companies from paying interest on or repaying our investments in the event of and during the continuance of a default
under such debt. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders
of securities ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before
we receive any distribution in respect of our investment. After repaying senior creditors, the portfolio company may not have any remaining
assets to use for repaying its obligation to us where we are junior creditor. In the case of debt ranking equally with debt securities
in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors holding such debt in the
event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

 Additionally, certain loans that we 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 make unsecured loans to portfolio companies,
meaning that such loans will not benefit from any interest in collateral of such companies. Liens on a portfolio company's 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 loans secured by collateral. 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.

 The rights we may have with respect to the collateral
securing any junior priority loans we make to our portfolio companies may also be limited pursuant to the terms of one or more intercreditor
agreements that we enter into with the holders of 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 our rights as junior lenders are adversely affected.

 The disposition of our investments may result
in contingent liabilities.

 A significant portion of our investments will involve
private securities. In connection with the disposition of an investment in 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 our return of distributions previously made to us.

 The Advisor's and Administrator's
liability is limited, and we have agreed to indemnify each against certain liabilities, which may lead them to act in a riskier manner
on our behalf than it would when acting for its own account.

 Under the Investment Advisory Agreement, the Advisor
does not assume any responsibility to us other than to render the services called for under that agreement, and it is not responsible
for any action of our Board in following or declining to follow the Advisor's advice or recommendations. Under the terms of the
Investment Advisory Agreement, the Advisor, its officers, members, personnel and any person controlling or controlled by the Advisor are
not liable to us, any subsidiary of ours, 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
willful misfeasance, bad faith, gross negligence or reckless disregard of the Advisor's duties under the Investment Advisory Agreement.
In addition, we have agreed to indemnify the Advisor and each of its officers, directors, members, managers and employees 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 willful misfeasance, bad faith, gross negligence or reckless disregard of such person's duties under
the Investment Advisory Agreement. Similarly, the Administrator and certain specified parties providing administrative services pursuant
to the relevant agreement are not liable to us or our stockholders for, and we have agreed to indemnify them for, any claims or losses
arising out of the good faith performance of their duties or obligations, except where attributable to willful misfeasance, bad faith,
gross negligence or reckless disregard of the Administrator's duties. These protections may lead the Advisor or the Administrator
to act in a riskier manner when acting on our behalf than it would when acting for its own account.

 We are subject to risks under hedging transactions
and our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.

 Although we do not engage in hedging transactions
as a principal investment strategy, we may engage in hedging transactions in the form of interest rate swaps, caps, collars and floors,
intended to limit our exposure to interest rate fluctuations to the limited extent such transactions are permitted under the 1940 Act
and applicable commodities laws. Engaging in hedging transactions would entail additional risks to our stockholders.

 In addition, we are subject to legislation that may
limit our ability to enter into such transactions. For example, in August 2022, Rule 18f-4 under the 1940 Act, regarding the ability of
a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or delivery obligations
(except reverse repurchase agreements and similar financing transactions), became effective. Under the rule, BDCs that make significant
use of derivatives are required to operate subject to a value-at-risk leverage limit, adopt a derivatives risk management program and
appoint a derivatives risk manager, and comply with various testing and board reporting requirements. These requirements apply unless
the BDC qualifies as a "limited derivatives user," as defined under the adopted rules. Under the rule, a BDC may enter into
an unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company,
if the BDC has, among other things, a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash
and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due.
We intend to operate under the limited derivatives user exemption of Rule 18f-4 and have adopted written policies and procedures
reasonably designed to manage our derivatives risk pursuant to Rule 18f-4. Collectively, these requirements may limit our ability
to use derivatives and/or enter into certain other financial contracts. We qualify as a "limited derivatives user," and as
a result the requirements applicable to us under Rule 18f-4 may limit our ability to use derivatives and enter into certain other
financial contracts. However, if we fail to qualify as a limited derivatives user and become subject to the additional requirements under
Rule 18f-4, compliance with such requirements may increase cost of doing business, which could have a material adverse effect on
our business, financial condition, results of operations, and cash flows. Future legislation or rules may modify how we treat derivatives
and other financial arrangements for purposes of our compliance with the leverage limitations of the 1940 Act and, therefore, may increase
or decrease the amount of leverage currently available to us under the 1940 Act, which may be materially adverse to us and our stockholders.

 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. 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. Use of a hedging transaction could involve counterparty credit risk.

 The success of any hedging transactions we may enter
into will depend on our ability to correctly predict movements in interest rates. Therefore, while we may enter into hedging transactions
to seek to reduce interest rate risks, unanticipated changes in 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 (or be able 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. Our ability to
engage in hedging transactions may also be adversely affected by rules adopted by the CFTC.

 We may not realize gains from our equity investments.

 When we invest in loans, we 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 seek to dispose of them and realize gains upon our disposition of them. 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 we experience.

 To the extent that we borrow under credit facilities
and issue senior unsecured notes, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk
of investing in us. Borrowings under credit facilities and issuances of senior unsecured notes may also adversely affect the return on
our assets, reduce cash available to service our debt or for distribution to our stockholders, and result in losses.

 The use of leverage in the form of borrowings under
credit facilities and issuances of senior unsecured notes increases the volatility of investments by magnifying the potential for gain
or loss on invested equity capital. Since we use leverage in the form of borrowings under credit facilities and issuances of senior unsecured
notes to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets
decreases, leveraging will cause NAV to decline more sharply than it otherwise would if we had not borrowed under the credit facilities
and issued senior unsecured notes. Similarly, any decrease in our income would cause net income to decline more sharply than it would
have if we had not borrowed under the credit facilities and issued senior unsecured notes. Such a decline could negatively affect our
ability to service our debt or make distributions to our stockholders. In addition, our 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 management or incentive fees payable
to our Advisor.

 The amount of borrowings under credit facilities and
issuances of senior unsecured notes depends on our Advisor's and our Board's assessment of market and other factors at the
time of any proposed borrowing under credit facilities and issuances of senior unsecured notes. We can offer no assurance that leveraged
financing will be available to us on favorable terms or at all. However, to the extent that we use leverage to finance our assets, our
financing costs will reduce cash available for servicing our debt or distributions to stockholders. Moreover, we may not be able to meet
our financing obligations and, to the extent that we cannot, we risk the loss of some or all of our assets to liquidation or sale to satisfy
the obligations. In such an event, we may be forced to sell assets at significantly depressed prices due to market conditions or otherwise,
which may result in losses.

 We are subject to risks associated with our
investment and trading of liquid credit (i.e., broadly syndicated loans).

 From time to time, we may invest in liquid credit
(i.e., broadly syndicated loans) that may be traded in public or institutional financial markets for which there is a more active market
than some of our other investments. These investments may expose us to various risks, including with respect to liquidity, price volatility,
interest rate risk, ability to restructure in the event of distress, credit risks and less protective issuing documentation, than is the
case with the loans to middle market companies that comprise nearly all of our debt investments. Certain of these instruments
may be fixed rate assets, thereby exposing us to interest rate risk in the valuation of such investments. Additionally, the financial
markets in which these assets may be traded are subject to significant volatility (including due to macroeconomic conditions), which may
impact the value of such investments and our ability to sell such instruments without incurring losses. The foregoing may result in volatility
in the valuation of our liquid credit investments, which would, in turn, impact our NAV. Similarly, a sudden and significant increase
in market interest rates may increase the risk of payment defaults and cause a decline in the value of these investments and in our NAV.
We may sell our liquid credit investments from time to time in order to generate proceeds for use in our investment program, and we may
suffer losses in connection with any such sales, due to the foregoing factors. We may not realize gains from our liquid credit investments
and any gains that we realize may not be sufficient to offset any other losses we experience.

 Our investments in the Trading
Companies & Distributors industry face considerable uncertainties including significant regulatory challenges.

 Our investments in portfolio companies that operate
in the Trading Companies & Distributors industry represent approximately 15.1% of our total portfolio as of December 31, 2024.
Portfolio companies in the Trading Companies & Distributors industry are subject to many risks, including the negative impact
of regulation, a competitive marketplace, decreased consumer demand and supply-chain disruptions. In recent years, supply-chain disruptions
and global trade policies have had a negative impact on these industries and as Trading Companies & Distributors represent a
significant portion of our investments, such adverse business and/or economic conditions have also impacted our portfolio. Adverse economic,
business, or regulatory developments affecting the Trading Companies & Distributors industry, including trade policies, treaties
and tariffs between the United States and other countries, could have a negative impact on the value of our investments in portfolio
companies operating in this industry, and therefore could negatively impact our business and results of operations.

 Risks Relating to Our Common Stock

 Prior to the IPO, there was
no public market for our shares of common stock, and we cannot assure you that a market for our shares of common stock will develop or
continue, or that the market price of our shares of common stock will not decline at some point following the IPO. Our share of common
stock price may be volatile and may fluctuate substantially.

 Our shares of common stock are listed
on the New York Stock Exchange under the symbol "KBDC." We cannot assure you that a trading market will develop for our
shares of common stock or, if one develops, that the trading market can be sustained. In addition, we cannot predict the prices at which
our shares of common stock will trade. Shares of companies offered in an initial public offering often trade at a discount to the initial
offering price due to underwriting discounts and commissions and related offering expenses. Also, shares of closed-end investment companies,
including BDCs, frequently trade at a discount from their net asset value and our shares may also be discounted in the market. This characteristic
of closed-end investment companies is separate and distinct from the risk that our net asset value per share may decline. We cannot predict
whether our shares of common stock will trade at, above or below net asset value. The risk of loss associated with this characteristic
of closed-end management investment companies may be greater for investors expecting to sell shares of common stock purchased in this
offering soon after the IPO. In addition, if our shares of common stock trade below its net asset value per share, we will generally not
be able to sell additional shares of common stock to the public at its market price without first obtaining the approval of a majority
of our stockholders (including a majority of our unaffiliated stockholders) and our independent directors for such issuance.

 The market price and liquidity of
the market for our shares of common stock may be significantly affected by numerous factors, some of which are 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 BDCs or other companies
in the sector in which we operate, which are not necessarily related to the operating performance of these companies;

 changes in regulatory policies or tax guidelines, 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;

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

 departure of key personnel from our Advisor;

 operating performance of companies comparable to us;

 general economic trends and other external factors; and

 loss of a major funding source.

 Sales of substantial amounts of
our shares of common stock in the public market may have an adverse effect on the market price of our shares of common stock.

 Upon completion of the IPO, we had
71,116,459 shares of common stock outstanding. The shares of common stock sold in the IPO are freely tradable without restriction or limitation
under the Securities Act.

 Any shares purchased in the IPO
or owned by our affiliates, as defined in the Securities Act, are subject to the public information, manner of sale and volume limitations
of Rule 144 under the Securities Act. The remaining shares of common stock outstanding upon the completion of the IPO are "restricted
securities" under the meaning of Rule 144 promulgated under the Securities Act and may only be sold if such sale is registered
under the Securities Act or exempt from registration, including the exemption under Rule 144.

 In addition, shares owned by certain
of our stockholders are subject to lock-up restrictions.

 Following the IPO and the expiration
of applicable lock-up periods, subject to applicable securities laws, sales of substantial amounts of our shares of common stock, or the
perception that such sales could occur, could adversely affect the prevailing market prices for our shares of common stock. If this occurs,
it could impair our ability to raise additional capital through the sale of equity securities should we desire to do so. We cannot predict
what effect, if any, future sales of securities, or the availability of securities for future sales, will have on the market price of
our shares of common stock prevailing from time to time.

 Trading and liquidity in our shares
may be limited and our shares may trade below our NAV.

 We cannot assure you that a public
trading market can be sustained. Shares of companies offered in an initial public offering often trade at a discount to the initial offering
price due to underwriting discounts and related offering expenses. Also, shares of closed-end investment companies and BDCs frequently
trade at a discount from their NAV. This characteristic of closed-end investment companies is separate and distinct from the risk
that our NAV per share may decline. We cannot predict whether our shares of common stock will trade at, above or below NAV.

 Certain provisions of the DGCL, our certificate
of incorporation, bylaws, and actions of our Board could deter takeover attempts and have an adverse impact on the value of common stock.

 The General Corporation Law of the State of Delaware,
as amended (the "DGCL"), contains provisions that may discourage, delay or make more difficult a change in control of us or
the removal of our directors. Our certificate of incorporation and bylaws contain provisions that limit liability and provide for indemnification
of our directors and officers. These provisions and others which we may adopt also may have the effect of deterring hostile takeovers
or delaying changes in control or management. We are subject to Section 203 of the DGCL, the application of which is subject to any applicable
requirements of the 1940 Act. This section generally prohibits us from engaging in mergers and other business combinations with stockholders
that beneficially own 15% or more of our voting stock, either individually or together with their affiliates, unless our directors or
stockholders approve the business combination in the prescribed manner. Section 203 of the DGCL may discourage third parties from trying
to acquire control of us and increase the difficulty of consummating such an offer.

 We have also adopted measures that may make it difficult
for a third party to obtain control of us, including provisions of our certificate of incorporation that classify our Board of Directors
in three classes serving staggered three-year terms, and provisions of our certificate of incorporation authorizing our Board of Directors
to classify or reclassify shares of our preferred stock in one or more classes or series, and to cause the issuance of additional shares
of our stock. These provisions, as well as other provisions in our certificate of incorporation and bylaws, may delay, defer or prevent
a transaction or a change in control in circumstances that could give our stockholders the opportunity to realize a premium of the NAV
of our shares of common stock.

 During extended periods of capital market disruption
and instability, there is a risk that you may not receive distributions or that our distributions may not grow over time and a portion
of our distributions may be a return of capital.

 We intend to make periodic distributions 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. Our ability to pay distributions might
be adversely affected by the impact of one or more of the risk factors described in this Annual Report on Form 10-K. Due to the asset
coverage test applicable to us under the 1940 Act as a BDC, we may be limited in our ability to make distributions. If we declare a distribution
and if more stockholders opt to receive cash distributions rather than participate in our dividend reinvestment plan ("DRIP"),
we may be forced to sell some of our investments in order to make cash distribution payments. To the extent we make distributions to stockholders
that include a return of capital, such portion of the distribution essentially constitutes a return of the stockholder's investment.
Although such return of capital may not be taxable, such distributions may increase an investor's tax liability for capital gains
upon the future sale of our Common Stock.

 A return of capital distribution may cause a stockholder
to recognize a capital gain from the sale of our Common Stock even if the stockholder sells its shares for less than the original purchase
price.

 Investing in our Common Stock may involve 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 alternative investment options and a higher risk of volatility or loss of principal.
Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our shares may not be suitable for
someone with lower risk tolerance. In addition, our Common Stock is intended for long-term investors who can accept the risks of investing
primarily in illiquid loans and other debt or debt-like instruments and should not be treated as a trading vehicle.

 A stockholder's interest in us will be
diluted if we issue additional shares, which could reduce the overall value of an investment in us.

 Our stockholders do not have preemptive rights to
any shares of common stock we issue in the future. To the extent that we issue additional equity interests at or below NAV your percentage
ownership interest in us may be diluted. In addition, depending upon the terms and pricing of any future and the value of our investments,
you may also experience dilution in the book value and fair value of your shares of common stock.

 Under the 1940 Act, we generally are prohibited from
issuing or selling our shares of common stock at a price below NAV per share, which may be a disadvantage as compared with certain public
companies. We may, however, sell our shares of common stock, or warrants, options, or rights to acquire our shares of common stock, at
a price below the current NAV of our shares of common stock if our Board of Directors determines that such sale is in our best interests
and the best interests of our stockholders, and 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 of Directors, closely approximates the fair value of such securities (less any distributing commission
or discount). If we raise additional funds by issuing our shares of common stock or senior securities convertible into, or exchangeable
for, our shares of common stock, then the percentage ownership of our stockholders at that time will decrease and you will experience
dilution.

 In addition, distributions declared in cash payable
to stockholders that are participants in our DRIP will generally be automatically reinvested in our shares of common stock. As a result,
stockholders that do not participate in our DRIP may experience dilution over time.

 We may be subject to risks that arise from newly
enacted federal tax legislation and our stockholders may receive our shares of Common Stock as dividends, which could result in adverse
tax consequences to them.

 The Inflation Reduction Act of 2022, among other things,
introduced a 15% book minimum tax on larger corporations, a 1% excise tax on stock buybacks and increased investment in the Internal Revenue
Service (the "IRS") to aid in the enforcement of tax laws. The impact of such legislation, as well as federal tax legislation
proposed but not yet enacted, on us, our stockholders and entities in which we may invest is uncertain. Prospective investors are urged
to consult their tax advisors regarding the effects of the new legislation on an investment in us.

 In order to satisfy the annual distribution requirement
applicable to RICs, we will have the ability to declare a large portion of a dividend in our shares of common stock instead of in cash.
As long as a portion of such dividend is paid in cash (which portion may be as low as 20% of such dividend) 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
would 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 our shares of common stock. We currently do not intend to
pay dividends in our shares of common stock.

 We may in the future determine to issue preferred
stock, which could adversely affect the value of shares of Common Stock.

 The issuance of preferred stock with dividend or conversion
rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could make an investment in shares
of Common Stock less attractive. In addition, the dividends on any preferred stock we issue must be cumulative. Payment of dividends and
repayment of the liquidation preference of preferred stock must take preference over any distributions or other payments to holders of
Common Stock, and holders of preferred stock are not subject to any of our expenses or losses and are not entitled to participate in any
income or appreciation in excess of their stated preference (other than convertible preferred stock that converts into shares of Common
Stock). In addition, under the 1940 Act, preferred stock would constitute a "senior security" for purposes of the 150% asset
coverage test. We do not currently anticipate issuing preferred stock.

 General Risk Factors

 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.

 The current worldwide financial markets situation,
as well as various social and political tensions in the United States 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 and global health
epidemics), may contribute to increased market volatility, may have long term effects on the United States and worldwide financial markets,
and may cause economic uncertainties or deterioration in the United States and worldwide.

 For example, ongoing armed conflicts between Russia and Ukraine in
Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market
disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. In addition, the current political
climate has intensified concerns about trade tariffs and a potential trade war between the United States and certain foreign countries,
including China, Mexico and Canada, among others. These consequences may trigger a significant reduction in international trade, shortages
or oversupply of certain manufactured goods, substantial price increases or decreases of goods, inflationary pressures, and possible failure
of individual companies and/or large segments of the foreign export industry with a potentially negative impact on the value of our investments.

 In addition, the political reunification of China
and Taiwan, over which China continues to claim sovereignty, is a highly complex issue that has included threats of invasion by China.
Any escalation of hostility between China and/or Taiwan would likely have a significant adverse impact not only on the value of investments
in both countries, but also on economies and financial markets globally.

 We do not currently have portfolio investments with direct exposure to
the Middle East, China, Taiwan, Russia or Ukraine, but because of the increasing interconnectedness of global economies and financial
markets, events in these regions could negatively affect the value of our investments.

 Political, social and economic uncertainty creates
and exacerbates risks.

 Social, political, economic and other conditions and
events (such as natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) will occur that create uncertainty
and have significant impacts on issuers, industries, governments and other systems, including the financial markets, to which companies
and their investments are exposed. As global systems, economies and financial markets are increasingly interconnected, events that once
had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region or financial
market will, more frequently, adversely impact issuers in other countries, regions or markets, including in established markets such as
the U.S. Such risks include the large-scale invasion of Ukraine by Russia that began in February 2022, heightened tensions between China
and Taiwan, the recent outbreak of hostilities in the Middle East, or the effect on world leaders and governments of global health pandemics,
such as the COVID-19 pandemic. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging
event or threat. We do not currently have portfolio investments with direct exposure to the Middle East, China, Taiwan, Russia or Ukraine,
but because of the increasing interconnectedness of global economies and financial markets, events in these regions could negatively affect
the value of our investments.

 Uncertainty can result in or coincide with, among
other things: increased volatility in the financial markets for securities, derivatives, loans, credit and currency; a decrease in the
reliability of market prices and difficulty in valuing assets (including portfolio company assets); greater fluctuations in spreads on
debt investments and currency exchange rates; increased risk of default (by both government and private obligors and issuers); further
social, economic, and political instability; nationalization of private enterprise; greater governmental involvement in the economy or
in social factors that impact the economy; changes to governmental regulation and supervision of the loan, securities, derivatives and
currency markets and market participants and decreased or revised monitoring of such markets by governments or self-regulatory organizations
and reduced enforcement of regulations; limitations on the activities of investors in such markets; controls or restrictions on foreign
investment, capital controls and limitations on repatriation of invested capital; the significant loss of liquidity and the inability
to purchase, sell and otherwise fund investments or settle transactions (including, but not limited to, a market freeze); unavailability
of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have
substantial negative effects on credit and securities markets as well as the economy as a whole; recessions; and difficulties in obtaining
and/or enforcing legal judgments.

 For example, the COVID-19 pandemic led to disruptions
in local, regional, national and global markets and economies. With respect to the U.S. credit markets (in particular for middle market
loans), this outbreak resulted in the following among other things: (i) significant disruption to the businesses of many middle market
loan borrowers including supply chains, demand and practical aspects of their operations, as well as lay-offs of employees; (ii) increased
draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements
to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their
loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and difficulty in valuing loans
during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments
to address problems experienced by the markets and by businesses and the economy in general which were not necessarily adequate to address
the problems faced by the loan market and middle market businesses. Although many of these conditions have resolved, similar consequences
could occur in the future as a result of new variants of the virus or other infectious diseases. Any future outbreaks of infectious diseases
could have an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things,
the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers
granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and
quality of loans available for investment by us and returns to us, among other things. It is impossible to determine the scope of any
future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have
or the full potential impact on us and our portfolio companies in which we invest.

 Although it is impossible to predict the precise nature
and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty
on applicable laws or regulations that impact us and our targeted investments, it is clear that these types of events are impacting and
will, for at least some time, continue to impact us and our targeted investments and, in certain instances, the impact will be adverse
and profound.

 If public health uncertainties and market disruptions
continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies may increase. In addition,
collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors
could decline, impairing their ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in
loan collateral and guarantor net worth could result in increased costs and reduced income which would have a material adverse effect
on our business, financial condition or results of operations.

 We will also be negatively affected if the operations
and effectiveness of us or a portfolio company (or any of the key personnel or service providers of the foregoing) is compromised or if
necessary or beneficial systems and processes are disrupted.

 We are subject to risks related to corporate
responsibility.

 Our business 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 environmental stewardship, 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, 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 could adversely affect our business.

 ITEM 1B. UNRESOLVED STAFF COMMENTS

 None.

 ITEM 1C. CYBERSECURITY

 The Company's Board of Directors (the "Board")
is responsible for overseeing the Company's risk management program and cybersecurity is a critical element of this program. Management
is responsible for the day-to-day administration of the Company's risk management program and its cybersecurity policies, processes,
and practices. The Company's cybersecurity policies, standards, processes, and practices are based on recognized frameworks established
by the National Institute of Standards and Technology, the International Organization for Standardization and other applicable industry
standards and are fully integrated into the Company's overall risk management processes. In general, the Company seeks to address
material cybersecurity threats through a company-wide approach that addresses the confidentiality, integrity, and availability of the
Company's information systems or the information that the Company collects and stores, by assessing, identifying and managing cybersecurity
issues as they occur.

 Cybersecurity Risk Management and Strategy

 The Company's cybersecurity risk management
strategy focuses on several areas:

 Identification and Reporting: The Company has implemented a comprehensive, cross-functional approach to assessing, identifying and managing material cybersecurity threats and incidents. The Company's program includes controls and procedures to properly identify, classify and escalate certain cybersecurity incidents to provide management visibility and obtain direction from management as to the public disclosure and reporting of material incidents in a timely manner.

 Technical Safeguards: The Company implements technical safeguards that are designed to protect the Company's information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence, as well as assistance from third party experts where necessary.

 Incident Response and Recovery Planning: The Company has established and maintains comprehensive incident response, business continuity, and disaster recovery plans designed to address the Company's response to a cybersecurity incident. The Company conducts regular tabletop exercises to test these plans and ensure personnel are familiar with their roles in a response scenario.

 Third-Party Risk Management: The Company maintains a comprehensive, risk-based approach to identifying and overseeing material cybersecurity threats presented by third parties, including vendors, service providers, and other external users of the Company's systems, as well as the systems of third parties that could adversely impact our business in the event of a material cybersecurity incident affecting those third-party systems, including any outside consultants who advise on the Company's cybersecurity systems.

 Education and Awareness: The Company provides regular, mandatory training for all levels of employees regarding cybersecurity threats as a means to equip the Company's employees with effective tools to address cybersecurity threats, and to communicate the Company's evolving information security policies, standards, processes, and practices.

 The Company conducts periodic assessment and testing
of the Company's policies, standards, processes, and practices in a manner intended to address cybersecurity threats and events.
This includes penetration testing of network infrastructure and phishing tests targeting the Adviser's employees. The results of
such assessments and reviews are evaluated by management and reported to the Board, and the Company adjusts its cybersecurity policies,
standards, processes, and practices as necessary based on the information provided by these assessments and reviews.

 Governance

 The Board, in coordination with the Adviser, oversees
the Company's risk management program, including the management of cybersecurity threats. The Board receives regular updates and
reports on developments in the cybersecurity space, including risk management practices, recent developments, vulnerability assessments,
third-party and independent reviews, the threat environment, and information security issues encountered by the Company'. The Board
also receives prompt and timely information regarding any cybersecurity risk that meets pre-established reporting thresholds, as well
as ongoing updates regarding any such risk. On an annual basis, the Board and the Adviser discuss the Company's approach to overseeing
cybersecurity threats.

 The Adviser has established an internal working
group that includes relevant representation from senior management including the CCO, CFO, and CISO, and CTO who work collaboratively
to implement a program designed to protect the Company's information systems from cybersecurity threats and to promptly respond
to any material cybersecurity incidents in accordance with the Company's incident response and recovery plans. Through ongoing communication
with these teams, the CISO, CTO and senior management are informed about and monitor the prevention, detection, mitigation and remediation
of cybersecurity threats and incidents in real time, and report such threats and incidents to the Board when appropriate.

 Members
of the internal working group have multiple decades of experience in information security and risk management, including assessing cybersecurity
threats. Furthermore, the CTO and CISO have educational backgrounds and hold professional experience and certifications relevant
to management of cybersecurity.

 Material Effects of Cybersecurity Incidents

 Risks from cybersecurity threats, including as
a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect the
Company, including its business strategy, results of operations, or financial condition.

 ITEM 2. PROPERTIES

 The headquarters of KA Credit Advisors, LLC is located at 717 Texas
Avenue, Suite 2200, Houston, TX 77002.

 ITEM 3. LEGAL PROCEEDINGS

 Neither we nor our Advisor is currently subject
to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us, or against our Advisor.

 From time to time, we, or our Advisor, may be
a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights
under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not
expect that these proceedings will have a material effect upon our financial condition or results of operations.

 From time to time we are involved in various legal
proceedings, lawsuits and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which
may result in regulatory proceedings against us.

 ITEM 4. MINE SAFETY DISCLOSURES

 Not applicable.

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

 Price Range of Common Stock

 Our common stock commenced trading on the NYSE under the symbol "KBDC"
on May 22, 2024. Prior to our IPO, the shares of our common stock were offered and sold in transactions exempt from registration
under the Securities Act. As such there was no public market for shares of our common stock prior to May 22, 2024.

 The following table sets forth, for each fiscal quarter since our common
stock commenced trading on the NYSE, (i) the NAV per share of our common stock as of the applicable period end, (ii) the range
of high and low closing sales prices of our common stock as reported on the NYSE during the applicable period, and (iii) the closing
high and low sales prices as a premium (discount) to NAV during the relevant period.

 Closing Sales Price
 (2)

 Premium

 (Discount) of

 High Sales

 Price to

 Premium

 (Discount) of

 Low Sales

 Price to

 NAV (1)

 High

 Low

 NAV (3)

 NAV (3)

 Year Ending December 31, 2024

 $
 16.70

 $
 17.00

 $
 15.85

 1.8
 %

 (5.1
)%

 Third Quarter

 $
 16.70

 $
 16.40

 $
 15.70

 (1.8
)%

 (6.0
)%

 Second Quarter (from May 22, 2024 through June 30, 2024)

 $
 16.57

 $
 16.55

 $
 15.95

 (0.1
)%

 (3.7
)%

 (1)
 NAV per share is determined as of the last day in the relevant quarter and therefore may not
 reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of
 each period.

 (2)
 Closing sales price as provided by the NYSE.

 (3)
 Calculated as of the respective high or low closing sales
price divided by the quarter end NAV and subtracting 1.

 On February 21, 2025, the reported closing sales price of our common
stock was $17.40 per share.

 Holders

 Please see "Part III—Item 12. Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" for disclosure regarding the holders.

 As of February 21, 2025, we had 504 holders of
record of our common stock, which did not include stockholders for whom shares are held in "nominee" or "street name".

 Distributions

 The following table reflects the distributions declared
and payable for the year ended December 31, 2024 (dollars in thousands, except per share amounts).

 Total

 Date Declared

 Record Date

 Payment Date

 per Share

 March 6, 2024

 March 29, 2024

 April 17, 2024

 $
 0.40

 $
 19,516

 May 8, 2024

 June 28, 2024

 July 15, 2024

 0.40

 28,447

 August 7, 2024

 September 30, 2024

 October 15, 2024

 0.40

 28,419

 May 8, 2024

 0.10

 7,102

 November 6, 2024

 January 15, 2025

 0.40

 28,424

 $
 1.70

 $
 111,908

 Dividend Reinvestment Plan

 The following table summarizes the amounts received
and shares of common stock issued to shareholders pursuant to our dividend reinvestment plan during the year ended December 31, 2024 (dollars
in thousands, except per share amounts).

 DRIP

 record

 payment

 shares

 DRIP

 date

 date

 issued

 value

 December 29, 2023

 January 16, 2024

 95,791

 $
 1,573

 March 29, 2024

 April 17, 2024

 94,816

 1,577

 June 28, 2024

 July 15, 2024

 -

 -

 September 30, 2024

 October 15, 2024

 -

 -

 37,843

 228,450

 $
 3,782

 All of the dividends declared during the year ended
December 31, 2024 were derived from ordinary income, determined on a tax basis.

 Recent Sales of Unregistered Securities

 As set forth in the table below (dollars in thousands,
except per share amounts), during the year ended December 31, 2024, we issued and sold 23,322,186 shares of common stock at an aggregate
offering amount of approximately $388,634. The issuance of the shares of common stock was exempt from the registration requirements of
the Securities Act, pursuant to Section 4(a)(2) and Rule 506(b) of Regulation D thereof and previously reported by us on our current reports
on Form 8-K. The Company relied, in part, upon representations from the investors in the subscription agreements that each investor was
an accredited investor as defined in Regulation D under the Securities Act.

 Common stock issue date

 price per
 share

 Common stock
 shares issued

 offering
 amount

 February 14, 2024

 $
 16.74

 7,089,771

 $
 118,689

 April 2, 2024

 $
 16.63

 16,232,415

 269,945

 Total common stock issued

 23,322,186

 $
 388,634

 Stock Repurchase Plan (dollars in thousands,
except share amounts)

 On
May 21, 2024, the Company entered into a share repurchase plan, or the Company 10b5-1 Plan, to acquire up to $100,000 in the aggregate
of the Company's Common Stock at prices below the Company's net asset value per share over a specified period, in accordance
with the guidelines specified in Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). The Company 10b5-1 Plan was approved by the Board of Directors on March 6, 2024. The Company 10b5-1 Plan requires Morgan
Stanley Corporation as the Company's agent, to repurchase Common Stock on its behalf when the market price per share is below the
most recently reported net asset value per share (including any updates, corrections or adjustments publicly announced by the Company
to any previously announced net asset value per share, including any distributions declared). Under the Company 10b5-1 Plan, the volume
of purchases would be expected to increase as the price of the Company's Common Stock declines, subject to volume restrictions.
The timing and amount of any share repurchases will depend on the terms and conditions of the Company 10b5-1 Plan, the market price of
the Company's Common Stock and trading volumes, and no assurance can be given that Common Stock be repurchased in any particular
amount or at all. The repurchase of shares pursuant to the Company 10b5-1 Plan is intended to satisfy the conditions of Rule 10b5-1 and
Rule 10b-18 under the Exchange Act, and will otherwise be subject to applicable law, including Regulation M, which may prohibit repurchases
under certain circumstances. The Company 10b5-1 Plan commenced beginning 60 calendar days following the end of the "restricted
period" under Regulation M and will terminate upon the earliest to occur of (i) the close of business on May 24, 2025, (ii) the
end of the trading day on which the aggregate purchase price for all shares purchased under the Company 10b5-1 Plan equals $100,000 and
(iii) the occurrence of certain other events described in the Company 10b5-1 Plan.

 The "restricted period" under Regulation
M ended upon the closing of the Company's IPO and, therefore, the Common Stock repurchases/purchases described above began on July
23, 2024.

 During the year ended December 31, 2024, the Company
repurchase 94,613 shares under the Company's 10b5-1 Plan for a total of $1,525.

 Stock Performance Graph

 This graph compares the
stockholder return on our common stock from May 22, 2024 (the first date that our common stock began trading on the NYSE) to December
31, 2024 with that of the Standard & Poor's 500 Stock Index and the Standard & Poor's BDC Index. This graph assumes
that on May 22, 2024, $100 was invested in our common stock, the Standard & Poor's 500 Stock Index and the Standard & Poor's
BDC Index. The graph also assumes the reinvestment of all cash distributions prior to any tax effect. 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.

 COMPARISON OF CUMULATIVE
TOTAL RETURN AMONG KAYNE ANDERSON BDC, INC.

 S&P 500 INDEX AND S&P
BDC INDEX

 Total Return Performance

 Fees and Expenses

 The following table is being provided to update,
as of December 31, 2024, certain information in our registration statement on Form N-2 (File No. 333-283316) that was filed on January
29, 2025. The following table is intended to assist you in understanding the costs and expenses that an investor in shares of our common
stock will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may
vary. The expenses shown in the table under "Annual Expenses" assume a debt-to-equity ratio of 1.00x (which equates to asset
coverage of 200%). The following table should not be considered a representation of our future expenses. Actual expenses may be greater
or less than shown.

 Stockholder Transaction Expenses:

 Sales Load (as a percentage of offering price) (1)

 —

 Offering expenses (as a percentage of offering price) (2)

 —

 Dividend Reinvestment Plan Fees (3)

 $

 15.00

 Total Stockholder Transaction Expenses (as a percentage of offering price)

 —

 Annual Expenses (as a percentage of net assets attributable to common stock) (4)

 Management Fees (5)

 2.00
 %

 Incentive Fees (6)

 1.73
 %

 Interest Payments and fees paid on Borrowed Funds (7)

 7.28
 %

 Other Expenses (8)

 0.38
 %

 Total Annual Expenses

 11.39
 %

 (1)

 In the event that the securities
 to which any applicable prospectus relates are sold or through underwriters or agents, a corresponding prospectus supplement will
 disclose the applicable sales load (underwriting discount and commission).

 (2)
 Any
 related prospectus supplement will disclose the estimated amount of offering expenses, the
 offering price and the estimated amount of offering expenses borne by us as a percentage
 of the offering price.

 (3)
 Participants
 in the dividend reinvestment plan may withdraw at any time by giving notice to the DRIP administrator.
 There is no brokerage charge for reinvestment of dividends or distributions in common stock.
 However, all participants will pay a pro rata share of brokerage commissions incurred by
 the DRIP administrator when it makes open market purchases. If a DRIP participant elects
 to have the DRIP Administrator sell its shares in connection with a withdrawal from the DRIP,
 the DRIP administrator is authorized to deduct a $15 transaction fee plus a $0.10 per share
 brokerage commission from the proceeds.

 The
 expenses of the dividend reinvestment plan are included in "other expenses" in the
 table above. Our common stockholders will ultimately bear indirectly the DRIP administrator's
 fees. For additional information, see " Dividend Reinvestment Plan."

 (4)
 Net
 assets employed as the denominator for expense ratio computation is $1,186 million.

 (5)

 Includes management fees paid by Kayne Anderson BDC Financing, LLC ("KABDCF") and Kayne Anderson BDC Financing II, LLC ("KABDCF II"), respectively.

 The base management fee is calculated at an annual rate of 1.00% of the fair market value of our investments including, in each case, assets purchased with borrowings under credit facilities and issuances of senior unsecured notes, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase.

 (6)
 The
 Incentive Fee will consist of two components that are independent of each other, with the
 result that one component may be payable even if the other is not. A portion of the Incentive
 Fee is based on our income and a portion is based on our capital gains. The table reflects
 each incentive fee calculated at a rate of 15.0%.

 (7)
 payments on borrowed funds represents an estimate of our annualized interest expense based
 on borrowings under credit facilities and issuances of senior unsecured notes. The assumed
 weighted average interest rate outstanding under our credit facilities and senior unsecured
 notes was 7.28%. We intend to further borrow under credit facilities and/or issue senior
 unsecured notes in the future in order to finance our investments and may issue preferred
 stock, subject to our compliance with applicable requirements under the 1940 Act.

 (8)
 "Other
 Expenses" includes estimated general and administrative expenses, professional fees
 and director fees and is based on amounts estimated for the current fiscal year. Includes
 expenses paid by KABDCF and KABCF II, respectively.

 Example

 The following example demonstrates the projected
dollar amount of total cumulative expenses over various periods with respect to a hypothetical investment in our shares of common stock.
In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth
in the table above. Transaction expenses are excluded from the table below.
In the event that the securities to which any applicable prospectus relates are sold to or through underwriters or agents, a corresponding
prospectus supplement will disclose any transaction expenses.

 1 Year

 3 Years

 5 Years

 10 Years

 You would pay the following expenses on a $1,000 investment, assuming a 5% annual return resulting entirely from net realized capital gains (1)

 $

 $

 $

 $

 You would pay the following expenses on a $1,000 investment, assuming a 5% annual return resulting entirely from net investment income (2)

 $

 $

 $

 $

 (1)
 Assumes
 no unrealized capital depreciation or realized capital losses and 5% annual return on our
 portfolio resulting entirely from net realized capital gains (and therefore subject to the
 capital gains incentive fee). Because our investment strategy involves investments that primarily
 generate current income, we believe that a 5% annual return resulting from realized capital
 gains is unlikely.

 (2)
 The
 income based incentive fee is subject to a 6.00% hurdle. Accordingly, no incentive fee would
 be payable in this example.

 While
the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less
than 5%. There is no incentive compensation either on income or on capital
gains under our Investment Advisory Agreement assuming a 5% annual return and therefore it is not included in the example. If we achieve
sufficient returns on our investments, including through the realization of capital gains, to trigger an incentive compensation of a
material amount, our distributions to our stockholders and our expenses would likely be higher. In addition, while the example assumes
reinvestment of all dividends and distributions at NAV, under certain circumstances, reinvestment of dividends and other distributions
under our dividend reinvestment plan may occur at a price per share that differs from NAV. See "Dividend Reinvestment Plan"
 for additional information regarding our DRIP.

 Senior Securities

 Information about the Company's senior securities is shown
as of the dates indicated in the below table. The report of our independent registered public accounting firm, PricewaterhouseCoopers
LLP, as of December 31, 2024, is included within "Item 8. Consolidated Financial Statements and Supplementary Data."

 Class and Period

 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)

 $

 $

 2,380

 —

 N/A

 $

 $
 2,510

 —

 N/A

 $

 $
 2,890

 —

 N/A

 $

 $
 2,230

 —

 N/A

 $

 $
 1,980

 —

 N/A

 $

 $
 2,140

 —

 N/A

 $

 $
 2,010

 —

 N/A

 $

 $
 2,030

 —

 N/A

 —

 —

 —

 N/A

 $

 $

 2,380

 —

 N/A

 $

 $
 2,510

 —

 N/A

 $

 $
 2,890

 —

 N/A

 $

 $
 2,230

 —

 N/A

 $

 $
 1,980

 —

 N/A

 $

 $
 2,140

 —

 N/A

 $

 $
 2,010

 —

 N/A

 $

 $
 2,030

 —

 N/A

 —

 —

 —

 N/A

 Revolving Funding Facility II (5)

 $

 $

 2,380

 —

 N/A

 $

 $
 2,510

 —

 N/A

 $

 $
 2,890

 —

 N/A

 $

 $
 2,230

 —

 N/A

 $

 $
 1,980

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 Class and Period

 Total
 Amount
 Outstanding (1)

 Asset Coverage
 per Unit (2)

 Involuntary
 Liquidating
 Preference
 per Unit (3)

 Average Market
 Value

 per Unit (4)

 Subscription Credit Agreement (6)

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 $
 10.8

 $
 1,980

 —

 N/A

 $

 $
 2,140

 —

 N/A

 $

 $
 2,010

 —

 N/A

 $

 $
 2,030

 —

 N/A

 $

 $
 2,170

 —

 N/A

 Loan and Security Agreement (LSA) (7)

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 $

 $
 2,170

 —

 N/A

 Notes

 $

 $

 2,380

 —

 N/A

 $

 $
 2,510

 —

 N/A

 $

 $
 2,890

 —

 N/A

 $

 $
 2,230

 —

 N/A

 $

 $
 1,980

 —

 N/A

 $

 $
 2,140

 —

 N/A

 $

 $
 2,010

 —

 N/A

 —

 —

 —

 N/A

 —

 —

 —

 N/A

 (1)
 Total amount of senior securities outstanding at the end of
the period presented.

 (2)
 Asset coverage per unit is the ratio of the carrying value of
our total assets, less all liabilities excluding indebtedness represented by senior securities in this table, to the aggregate amount
of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness
and is calculated on a consolidated basis.

 (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 because the senior securities are not registered
for public trading.

 (5)
 The Revolving Funding Facility II was entered into on December 22,
2023.

 (6)
 The Subscription Credit Agreement was terminated on April 1,
2024.

 (7)
 The Loan and Security Agreement ("LSA") was terminated
on February 18, 2022.

 ITEM 6. [RESERVED]

 The selected financial data previously required
by Item 301 of Regulation S-K has been omitted in reliance on SEC Release No. 33-10890, Management's Discussion and Analysis, Selected
Financial Data, and Supplementary Financial Information.

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

 The following discussion and analysis should be
read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in
this Annual Report on Form 10-K. Except as otherwise specified, references to "we," "us," "our," or
the "Company" refer to Kayne Anderson BDC, Inc.

 Investment Objective, Principal Strategy
and Investment Structure

 Kayne Anderson BDC, Inc. is a Delaware corporation
that commenced operations on February 5, 2021. We are an externally managed, closed-end, non-diversified management investment company
that has elected to be regulated as a BDC under the 1940 Act, as amended. In addition, for U.S. federal income tax purposes, we intend
to qualify, annually, as a RIC under Subchapter M of the Code.

 On May 24, 2024, we completed our initial public
offering ("IPO"), issuing 6,000,000 shares of our common stock at a public offering price of $16.63 per share. Net
of underwriting fees and offering expenses, we received net cash proceeds, before offering expenses, of $92.4 million. The Company's
common stock began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "KBDC" on May 22, 2024.

 Our investment activities are managed by KA Credit Advisors, LLC (the
"Advisor"), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P. ("Kayne Anderson"), and
the Advisor operates within Kayne Anderson's middle market private credit platform ("KAPC" or "Kayne Anderson
Private Credit"). The Advisor is an investment advisor registered with the United States Securities and Exchange Commission (the
"SEC") under the Investment Advisers Act of 1940, as amended. In accordance with the Investment Advisers Act of 1940, as amended,
our Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential
investments, analyzing investment opportunities, negotiating and structuring investments, and monitoring our investments and portfolio
companies on an ongoing basis. The Advisor benefits from the scale and resources of Kayne Anderson and specifically KAPC.

 Our investment objective is to generate current
income and, to a lesser extent, capital appreciation. We intend to have nearly all of our debt investments in private middle market companies.
We use "private" to refer to companies that are not traded on a securities exchange and define "middle market companies"
as companies that, in general, generate between $10 million and $150 million of annual earnings before interest, taxes, depreciation and
amortization, or EBITDA. Further, we refer to companies that generate between $10 million and $50 million of annual EBITDA as "core
middle market companies" and companies that generate between $50 million and $150 million of annual EBITDA as "upper middle
market companies." We typically adjust EBITDA for non-recurring and/or normalizing items to assess the financial performance of
our borrowers over time.

 We intend to achieve our investment objective
by investing primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market
companies. Under normal market conditions, we expect at least 90% of our portfolio (including investments purchased with proceeds from
borrowings under credit facilities and issuances of senior unsecured notes) to be invested in first lien senior secured, unitranche and
split-lien loans. Our investment decisions are made on a case-by-case basis. We expect the remainder of our portfolio to be invested in
second-lien loans, subordinated debt or equity securities (including those purchased in conjunction with other credit investments). We
expect that a majority of these debt investments will be made in core middle market companies and will generally have stated maturities
of three to six years. We expect that the loans in which we principally invest will be to companies that are located in the United States.
We determine the location of a company as being in the United States by (i) such company being organized under the laws
of one of the states in the United States; or (ii) during its most recent fiscal year, such company derived at least 50%
of its revenues or profits from goods produced or sold, investments made, or services performed in the United States or has at least
50% of its assets in the United States.

 The
Advisor executes on our investment objective by (1) accessing the established loan sourcing channels developed by KAPC, which includes
an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2)
selecting investments within our middle market company focus, (3) implementing KAPC's underwriting process and (4) drawing upon
its experience and resources and the broader Kayne Anderson network. KAPC was established in 2011 and manages (directly and through affiliates)
assets under management ("AUM") of approximately $7.1 billion related to middle market private credit as of December 31,
2024.

 Recent Developments

 On January 15, 2025, we paid a regular dividend
of $0.40 per share to each common stockholder of record as of December 31, 2024. The total dividend was $28.4 million and, of this amount,
$3.9 million was DRIP.

 On February 5, 2025, we and KABDCF II entered
into an amendment of our Revolving Funding Facility II (as defined below). Under the terms of the amendment, the lender increased its
commitment from $150 million to $250 million and decreased the interest rate on borrowings outstanding from 3-month term SOFR plus 2.70%
to 3-month term SOFR plus 2.25%. Additionally, the maturity date of the facility was extended one year to December 22, 2029. All other
terms of the Revolving Funding Facility II remain substantially the same.

 On February 13, 2025, we and KABDCF entered into
an amendment of our Revolving Funding Facility (as defined below). Under the terms of the amendment, the lenders increased their commitments
from $600 million to $675 million and decreased the interest rate on borrowings outstanding from daily SOFR plus 2.375% - 2.50%, depending
upon the mix of loans, to daily SOFR plus 2.15%. Additionally, the maturity date of the facility was extended to February 13, 2030. All
other terms of the Revolving Funding Facility remain substantially the same.

 On February 14, 2025, we reduced the size of our
Corporate Credit Facility from $475 million to $400 million. This commitment reduction was done in conjunction with the $75 million increase
to our Revolving Funding Facility from $600 million to $675 million.

 On February 19, 2025, our Board of Directors declared
a regular dividend to common stockholders in the amount of $0.40 per share. The regular dividend of $0.40 per share will be paid on April
15, 2025 to stockholders of record as of the close of business on March 31, 2025, payable in cash or shares of our common stock pursuant
to our Dividend Reinvestment Plan, as amended.

 Portfolio and Investment Activity

 Our portfolio is currently comprised of a broad
mix of loans, with diversity among investment size and industry focus. The Advisor's team of professionals conducts due diligence
on prospective investments during the underwriting process and is involved in structuring the credit terms of our private middle market
investments. Once an investment has been made, our Advisor closely monitors that portfolio investment and takes a proactive approach
to identify and address sector or company specific risks. The Advisor seeks to maintain a regular dialogue with portfolio company management
teams (as well as their owners, the majority of whom are private equity firms, where applicable), reviews detailed operating and financial
results on a regular basis (typically monthly or quarterly) and monitors current and projected liquidity needs, in addition to other
portfolio management activities. There are no assurances that we will achieve our investment objectives.

 As of December 31, 2024, we had investments in
110 portfolio companies with an aggregate fair value of approximately $1,995 million, and unfunded commitments to these portfolio companies
of $186 million, and our portfolio consisted of 98.0% first lien senior secured loans, 0.9% subordinated debt and 1.1% equity investments.

 As of December 31, 2024, we held investments
in broadly syndicated loans in 21 portfolio companies with an aggregate principal amount of $253 million. Our investments in broadly
syndicated loans were made in anticipation of the receipt of proceeds from our final capital call and our IPO which closed during the
second quarter of 2024. Prior to these investments, we had not held broadly syndicated loans since 2022. Consistent with our strategy
at that time, we expect to rotate out of these investments over coming quarters to invest in private middle market loans consistent with
our principal strategy. We have presented certain portfolio-related information below for our private middle market loans and broadly
syndicated loans separately and on a combined basis for ease of reference.

 As of December 31, 2024, 100% of our debt investments
had floating interest rates. Our weighted average yields for debt investments were as follows:

 private middle market loans at fair value and amortized cost weighted
average yields were 11.1% and 11.3%, respectively

 broadly syndicated loans at fair value and amortized cost weighted
 average yields were 7.1% and 7.1%, respectively; and

 total debt investments at fair value and amortized cost weighted average yields were 10.6% and 10.7%, respectively

 As of December 31, 2024, our portfolio was invested across 30 different
industries (Global Industry Classification "GICS", Level 3 – Industry). The largest industries in our portfolio as of
December 31, 2024 were Trading Companies & Distributors, Commercial Services & Supplies, Food Products and Health Care Providers
& Services, which represented, as a percentage of our portfolio of long-term investments, 15.1%, 11.7%, 10.0% and 8.4%, respectively,
based on fair value. We are generalist investors and the mix of industries represented by our portfolio companies will vary over time.

 As of December 31, 2024, our average position
size based on commitment of private credit investments (at the portfolio company level) was $20.0 million.

 As of December 31, 2024, the weighted average
and median last twelve months ("LTM") EBITDA of our portfolio companies were as follows:

 private middle market loans were $58.1 million and $34.3 million, respectively, based on fair value 1

 broadly syndicated loans were $2,138.3 million and $1,306.7 million, respectively, based on fair value; and

 total investments were $335.0 million and $39.6 million, respectively, based on fair value 1

 As of December 31, 2024, the weighted average loan-to-enterprise-value
("LTEV") of our debt investments at the time of our initial investment was as follows:

 private middle market loans was 43.0%, based on par 1

 broadly syndicated loans was 34.0%, based on par

 total investments was 41.8%, based on par 1; and

 LTEV represents the total par value of our debt investment relative to our estimate of the enterprise value of the underlying borrower

 As of December 31, 2024, we had three debt investments on non-accrual
status, which represented 1.3% and 1.6% of total debt investments at fair value and cost, respectively.

 As of December 31, 2024, our portfolio companies'
weighted average leverage ratios and weighted average interest coverage ratios (the calculations of which are based on the most recent
quarter end or latest available information from the portfolio companies) were as follows:

 private middle market loans were 4.3x and 3.0x, respectively, based on fair value 1

 broadly syndicated loans were 3.2x and 4.2x, respectively, based on fair value; and

 total investments were 4.2x and 3.1x, respectively, based on fair value 1

 As of December 31, 2024, the percentage of our
debt investments including at least one financial maintenance covenant was as follows:

 private middle market loans was 100.0% based on fair value 2

 broadly syndicated loans was 0%, based on fair value; and

 total investments was 86.9%, based on fair value 2

 Excludes investments on watch list, which represent 3.5% of the total fair value of debt investments as of December 31, 2024.

 Excludes opportunistic deals, which represent 1.9% of the total fair value of debt investments as of December 31, 2024.

 Listed below are our top ten portfolio companies and industries represented
as a percentage of total long-term investments as of December 31, 2024:

 Industry

 long-term

 investments

 $
 41.0

 2.0
 %

 Dusk Acquisition II Corporation (Motors & Armatures, Inc. – MARS)

 $
 39.9

 2.0
 %

 $
 39.5

 2.0
 %

 M2S Group Intermediate Holdings, Inc.

 $
 37.7

 1.9
 %

 $
 37.3

 1.9
 %

 $
 35.5

 1.8
 %

 $
 35.1

 1.7
 %

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 $
 34.1

 1.7
 %

 Genuine Cable Group, LLC

 $
 34.1

 1.7
 %

 $
 33.6

 1.7
 %

 $
 367.8

 18.4
 %

 Our investment activity for the years ended December 31, 2024 and 2023
is presented below (information presented herein is at par value unless otherwise indicated).

 2024

 2023

 New investments:

 Gross new investments commitments

 $
 1,043.9

 $
 329.2

 Less: investment commitments sold down, exited or repaid (1)

 (371.3
)

 (123.0
)

 Net investment commitments

 $
 672.6

 206.2

 Principal amount of investments funded (2):

 Private credit investments

 $
 673.0

 $
 404.2

 Broadly syndicated loans

 328.1

 -

 Preferred equity investments

 -

 -

 Common equity investments

 3.8

 0.6

 Total principal amount of investments funded

 $
 1,004.9

 $
 404.8

 Principal amount of investments sold / repaid (2):

 Private credit investments

 $
 (294.8
)

 $
 (196.6
)

 Broadly syndicated loans

 (74.7
)

 -

 Common equity investments

 (0.3
)

 -

 Total principal amount of investments sold or repaid

 $
 (369.8
)

 $
 (196.6
)

 Number of new private credit investment commitments

 Average new private credit investment commitment amount

 $
 11.7

 $
 7.7

 Number of new broadly syndicated loan commitments

 -

 Average new broadly syndicated loan commitment amount

 $
 12.6

 $
 -

 Weighted average maturity for new investment commitments (3)

 4.3 years

 3.9 years

 Percentage of new debt investment commitments at floating rates

 100.0
 %

 100.0
 %

 Percentage of new debt investment commitments at fixed rates

 0.0
 %

 0.0
 %

 Weighted average interest rate of new private credit investment commitments (4)

 10.1
 %

 11.7
 %

 Weighted average interest rate of new broadly syndicated loan commitments (4)

 7.4
 %

 -

 Weighted average interest rate on investments sold or paid down (5)

 10.8
 %

 11.9
 %

 (1)

 Does not include repayments on revolving loans, which may be redrawn.

 (2)

 Does not include restructured activity. For common equity investments, amount represents cost.

 (3)

 For undrawn delayed draw term loans, the maturity date used is that of the associated term loan.

 (4)

 Based on the rate in effect at December 31 st of each year per our Consolidated Schedule of Investments for new commitments entered into during the year.

 (5)

 Based on the underlying rate if still held at December 31 st of each year. For those investments sold or paid down in full during the year, based on the rate in effect at the time of sale or paid down.

 Portfolio Internal Performance Ratings

 In general, we employ a strategy designed to ensure
early detection of potential issues at underlying borrowers, including monthly financial reviews internal tracking memoranda, weekly "watch
list" discussions and other like activities. We have designed a risk rating system to aid in our portfolio management efforts where
each investment is rated level 1-9, where Level 1 is the "least risky" and Level 9 is the "most risky." This risk-rating
system is quantitative in nature and aggregates criteria such as LTEV, leverage levels and fixed charge coverage ratios ("FCCR")
(each measured at point-in-time and as relates to levels at the close of the investment).

 The table below sets forth our fair value of debt
investments and number of portfolio companies, including percentage of each total, that are on watch list as of December 31, 2024 and
2023. This table excludes equity investments.

 As of December 31, 2024

 As of December 31, 2023

 %

 Number of
 Companies

 %

 %

 Number of
 Companies

 %

 $
 69.4

 3.5
 %

 4.5
 %

 $
 74.0

 5.5
 %

 6.6
 %

 We use Global Industry Classification Standards
(GICS), Level 3 – Industry, for classifying the industry groupings of our portfolio companies. The table below describes long-term
investments by industry composition based on fair value as of December 31, 2024 and 2023:

 2024

 2023

 15.1
 %

 15.3
 %

 11.7
 %

 9.4
 %

 10.0
 %

 11.5
 %

 8.4
 %

 7.4
 %

 7.5
 %

 7.2
 %

 Professional services

 4.7
 %

 4.5
 %

 4.4
 %

 6.3
 %

 Machinery

 3.7
 %

 3.8
 %

 3.7
 %

 3.0
 %

 3.6
 %

 2.0
 %

 3.2
 %

 3.3
 %

 Building products

 2.3
 %

 2.0
 %

 2.1
 %

 3.3
 %

 2.1
 %

 0.7
 %

 Insurance

 2.0
 %

 2.2
 %

 Pharmaceuticals

 1.8
 %

 0.5
 %

 1.7
 %

 3.8
 %

 Diversified telecommunication services

 1.5
 %

 0.4
 %

 Wireless telecommunication services

 1.5
 %

 2.1
 %

 1.4
 %

 1.5
 %

 Hotels, restaurants & leisure

 1.4
 %

 -
 %

 Chemicals

 1.1
 %

 3.1
 %

 Household durables

 1.0
 %

 1.5
 %

 Media

 0.8
 %

 -
 %

 Household products

 0.8
 %

 1.2
 %

 Construction materials

 0.7
 %

 -
 %

 Biotechnology

 0.6
 %

 0.9
 %

 Semiconductors & semiconductor equipment

 0.6
 %

 -
 %

 Electrical equipment

 0.5
 %

 -
 %

 Diversified consumer services

 0.1
 %

 -
 %

 Software

 -
 %

 2.5
 %

 Capital markets

 -
 %

 0.6
 %

 100.0
 %

 100.0
 %

 Results of Operations

 The comparison for the years ended December 31,
2023 and 2022 can be found in " Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations "
in our Form 10-K for the fiscal year ended December 31, 2023.

 For the years ended December 31, 2024 and 2023,
our total investment income was derived from our portfolio of investments.

 The following table represents the operating results
for the years ended December 31, 2024 and 2023.

 2024

 2023

 Total investment income

 $
 213.1

 $
 161.0

 Less: Net expenses

 (83.8
)

 (76.2
)

 Net investment income

 129.3

 84.8

 Net realized gains (losses) on investments

 0.5

 (10.7
)

 Net change in unrealized gains (losses) on investments

 2.8

 2.9

 Deferred income tax expense

 (0.7
)

 -

 Net increase (decrease) in net assets resulting from operations

 $
 131.9

 $
 77.0

 Investment Income

 Investment income for the years ended December
31, 2024 and 2023 totaled $213.1 million and $161.0 million, respectively, and consisted primarily of interest income on our debt investments.
For the years ended December 31, 2024 and 2023, we had $2.7 million and $1.7 million, respectively, of PIK interest included in interest
income. As of December 31, 2024, we had three debt investments on non-accrual status. As of December 31, 2023, we had one debt investment
on non-accrual status.

 Expenses

 Operating expenses for the years ended December
31, 2024 and 2023, were as follows:

 2024

 2023

 Interest and debt financing expenses

 $
 61.5

 $
 52.3

 Management fees

 17.5

 11.4

 Incentive fees

 17.4

 9.4

 Directors fees

 0.6

 0.6

 Excise taxes

 0.8

 0.1

 Other operating expenses

 3.7

 2.4

 Total expenses

 101.5

 76.2

 Management fee waiver (Note 3)

 (2.9
)

 -

 Incentive fee waiver (Note 3)

 (14.8
)

 -

 Net expenses

 $
 83.8

 $
 76.2

 Net Realized Gains (Losses) on Investments

 During the year ended December 31, 2024, we had
realized gains of $0.5 million on our investments. I n November 2023, we completed a restructure
of our investment in Arborworks Acquisition LLC whereby the existing term loan and revolver were restructured to a new term loan and preferred
and common equity. The Company recognized a $10.7 million realized loss due to the debt restructure.

 Net Unrealized Gains (Losses) on Investments

 We fair value our portfolio investments quarterly
and any changes in fair value are recorded as unrealized gains or losses. During the years ended December 31, 2024 and 2023, net unrealized
gains (losses) on our investment portfolio were comprised of the following:

 2024

 2023

 Unrealized gains on investments

 $
 19.2

 $
 13.4

 Unrealized (losses) on investments

 (16.4
)

 (10.5
)

 Net change in unrealized gains (losses) on investments

 $
 2.8

 $
 2.9

 For these years ended December 31, 2024 and 2023,
the top five largest contributors to the change in unrealized gains and change in unrealized losses on investments are presented in the
following tables.

 For the year ended

 2024

 $
 1.8

 M2S Group Intermediate Holdings, Inc.

 1.3

 1.1

 CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)

 1.0

 WAM CR Acquisition, Inc. (Wolverine)

 0.9

 Other portfolio companies unrealized gains

 13.1

 Other portfolio companies unrealized (losses)

 (9.0
)

 (0.6
)

 Gulf Pacific Holdings, LLC

 (0.7
)

 (1.6
)

 Trademark Global LLC (1)

 (2.0
)

 Sundance Holdings Group, LLC

 (2.5
)

 Total Change in Unrealized Gain (Loss), net

 $
 2.8

 (1)
 Portfolio company is non-controlled affiliated investment.

 For the year ended

 2023

 $
 2.5

 BLP Buyer, Inc. (Bishop Lifting Products)

 0.9

 0.9

 Engineered Fastener Company, LLC (EFC International)

 0.8

 0.8

 Other portfolio companies unrealized gains

 7.5

 Other portfolio companies unrealized (losses)

 (4.6
)

 Trademark Global LLC

 (0.4
)

 (0.5
)

 (1.4
)

 (1.5
)

 Centerline Communications, LLC

 (2.1
)

 Total Change in Unrealized Gain (Loss), net

 $
 2.9

 Financial Condition, Liquidity and Capital Resources

 Our liquidity and capital resources are generated
primarily from the net proceeds of any offering of our shares of common stock, proceeds from borrowing on our credit facilities, proceeds
from the issuance of senior unsecured notes and from cash flows from interest and fees earned from our investments and principal repayments
and proceeds from sales of our investments. Our primary use of cash will be investments in portfolio companies, payments of our expenses,
repayments of borrowings under credit facilities and senior unsecured notes, and payment of cash distributions to our stockholders.

 We finance our investments with leverage in the
form of borrowings under credit facilities and issuances of senior unsecured notes. We also intend to further borrow under credit facilities
and/or issue senior unsecured notes in the future in order to finance our investments. In accordance with the 1940 Act, we are required
to meet a coverage ratio of total assets (less total liabilities other than indebtedness) to total borrowings and other senior securities
(and any preferred stock that we may issue in the future) of at least 150%. If this ratio declines below 150%, we cannot incur additional
leverage and could be required to sell a portion of our investments to repay some leverage when it is disadvantageous to do so. As of
December 31, 2024 and December 31, 2023, our asset coverage ratios were 238% and 198%, respectively. We currently intend to target asset
coverage of 200% to 180% (which equates to a debt-to-equity ratio of 1.0x to 1.25x) but may alter this target based
on market conditions.

 Over the next twelve months, we expect that cash
and cash equivalents, taken together with our available capacity under our credit facilities, will be sufficient to conduct anticipated
investment activities. Beyond twelve months, we expect that our cash and liquidity needs will continue to be met by cash generated from
our ongoing operations as well as financing activities.

 As of December 31, 2024, we had $75 million Notes
outstanding, $783 million borrowed under our credit facilities and cash and cash equivalents of $71.1 million (including short-term investments).
As of that date, we had $442 million of undrawn commitments available on our credit facilities (subject to borrowing base restrictions
and other conditions). As of February 21, 2025, we had $75 million Notes outstanding, $882.5 million borrowed under our credit facilities
and cash and cash equivalents of $12.3 million (including short-term investments).

 IPO and Capital Contributions

 On May 24, 2024, we completed our IPO, issuing 6,000,000 shares
of our common stock at a public offering price of $16.63 per share. Net of underwriting fees and offering expenses, we received net cash
proceeds, of $92.4 million. The Company's common stock began trading on the New York Stock Exchange ("NYSE") under the
ticker symbol "KBDC" on May 22, 2024.

 On April 2, 2024, we issued 16,232,415 shares
of our common stock related to capital called at an aggregate purchase price of $269.9 million. Following the final close on April 2,
2024, we had called all of our capital relating to our $1,046.9 million in existing subscription agreements that we had entered into with
investors through a private offering, and we do not have any remaining undrawn capital commitments.

 Senior Unsecured Notes

 As of December 31, 2024, we have $75 million of
senior unsecured notes outstanding, with $25 million of 8.65% Series A Notes due June 2027 (the "Series A Notes") and $50
million of 8.74% Series B Notes due June 2028 (the "Series B Notes", and collectively with the Series A Notes, the "Notes").

 Credit Facilities

 Corporate Credit Facility: We are party
to a senior secured revolving credit facility (the "Corporate Credit Facility"), that has a total commitment of $400 million
with a maturity date of November 22, 2029. The facility's commitment termination date and the final maturity date are November 22,
2028 and November 22, 2029, respectively. The Corporate Credit Facility also provided for a feature that allows us, under certain circumstances,
to increase the overall size of the Corporate Credit Facility to a maximum of $600 million. The interest rate on the Corporate Credit
Facility is equal to Term SOFR (a forward-looking rate based on SOFR futures) plus an applicable spread of 2.10% per annum or an "alternate
base rate" (as defined in the agreements governing the Corporate Credit Facility) plus an applicable spread of 1.00%. We are also
required to pay a commitment fee of 0.375% per annum on any unused portion of the Corporate Credit Facility.

 Revolving Funding Facility: We and our
wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing, LLC ("KABDCF"), are party to a senior secured
revolving funding facility (the "Revolving Funding Facility"). We and KABDCF have a commitment of $675 million. The Revolving
Funding Facility is secured by all of the assets held by, and the membership interest in, KABDCF. The end of the reinvestment period is
April 2, 2027 and the maturity date is February 13, 2030. The interest rate on the Revolving Funding Facility is daily SOFR plus 2.15%
per annum.

 KABDCF is also required to pay a commitment fee
of between 0.50% and 1.50% per annum depending on the size of the unused portion of the Revolving Funding Facility.

 Revolving Funding Facility II: We and our
wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing II, LLC ("KABDCF II"), are party to a senior
secured revolving credit facility (the "Revolving Funding Facility II"). The Revolving Funding Facility II has an initial
commitment of $250 million which, under certain circumstances, can be increased up to $500 million. The Revolving Funding Facility II
is secured by all of the assets held by KABDCF II and we have agreed that it will not grant or allow a lien on the membership interest
of KABDCF II. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility II are December 22, 2026,
and December 22, 2029, respectively. The interest rate on the Revolving Funding Facility II is equal to 3-month term SOFR plus 2.25% per
annum. KABDCF II is also required to pay a commitment fee of 0.75%.

 Contractual Obligations

 A summary of our significant contractual principal payment obligations
related to the repayment of our outstanding indebtedness at December 31, 2024 is as follows:

 Payments Due by Period ($ in millions)

 Total

 Less than

1 year

 1-3 years

 3-5 years

 After 5 years

 Senior Unsecured Notes

 $
 75.0

 $
 -

 $
 25.0

 $
 50.0

 $
 -

 250.0

 -

 -

 250.0

 -

 420.0

 -

 -

 420.0

 -

 Revolving Funding Facility II

 113.0

 -

 -

 113.0

 -

 Total contractual obligations

 $
 858.0

 $
 -

 $
 25.0

 $
 833.0

 $
 -

 Off-Balance Sheet Arrangements

 As of December 31, 2024 and 2023, we had an aggregate
$186.3 million and $147.9 million, respectively, of unfunded commitments to provide debt financing to our portfolio companies. Such commitments
are generally subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of
credit risk in excess of the amount recognized in our financial statements. Other than contractual commitments and other legal contingencies
incurred in the normal course of our business, we do not have any other off-balance sheet financings or liabilities.

 Critical Accounting Estimates

 The preparation of our consolidated financial
statements requires us 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. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described
below. The critical accounting policies should be read in conjunction with our risk factors in this Annual Report. See Note 2 to
our consolidated financial statements for the years ended December 31, 2024 and 2023, for more information on our critical accounting
policies.

 Investment Valuation

 Traded Investments (Level 1 or Level 2)

 Investments for which market quotations are readily
available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes,
broadly syndicated loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent
broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices
are stale or do not represent fair value in the judgment of our Advisor, fair market value will be determined using our Advisor's
valuation process for investments that are privately issued or otherwise restricted as to resale.

 We may also invest, to a lesser extent, in equity
securities purchased in conjunction with debt investments. While we anticipate these equity securities to be issued by privately held
companies, we may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock
Market, Inc. ("NASDAQ") are valued, except as indicated below, at the last sale price on the business day as of which such
value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask
prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded
on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined
at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market,
but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

 Non-Traded Investments (Level 3)

 Investments that are privately issued or otherwise
restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of our
Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment
of our Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the
security on the valuation date. We expect that a significant majority of our investments will be Level 3 investments. Unless otherwise
determined by the Advisor, the following valuation process is used for our Level 3 investments:

 Valuation Designee. The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of the Company's investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

 Valuation Firm. Quarterly, a third-party valuation firm engaged by the Advisor reviews the valuation methodologies and calculations employed for each of the Company's investments that the Advisor has placed on the "watch list" and approximately 25% of the Company's remaining investments. The third-party valuation firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis. The quarterly report issued by the third-party valuation firm will provide positive assurance on the fair values of the investments reviewed.

 Oversight. The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act. The Audit Committee shall aid the Board in overseeing the Advisor's fair valuation of securities that are not publicly traded or for which current market values are not readily available. The Audit Committee shall meet quarterly to review the fair value determinations, processes and written reports of the Advisor as part of the Board's oversight responsibilities.

 Refer to Note 5 – Fair Value – for
more information on the Company's valuation process.

 Revenue Recognition

 We record interest income on an accrual basis
to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, which represents contractual
interest accrued and added to the principal balance, we generally will not accrue PIK interest for accounting purposes if the portfolio
company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities
for accounting purposes if we have reason to doubt our ability to collect such interest. OIDs, market discounts or premiums are accreted
or amortized using the effective interest method as interest income. We record prepayment premiums on loans and debt securities as interest
income.

 Related Party Transactions

 Investment Advisory Agreement. On February 5,
2021, we entered into the Investment Advisory Agreement with our Advisor. In addition, on March 6, 2024, the Board approved an amended
and restated investment advisory agreement (the "Amended Investment Advisory Agreement") and a fee waiver agreement (the "Fee
Waiver Agreement") between the Company and the Advisor, which became effective upon the completion of the initial public offering
of shares of common stock on May 24, 2024 (the "IPO Date"). On February 19, 2025, the Board approved an additional one-year
term of the Investment Advisory Agreement from March 15, 2025 to March 15, 2026.

 For
services rendered under the Investment Advisory Agreement, we pay a base management fee quarterly in arrears to our Advisor based on
the of the fair market value of our investments including, in each case, assets purchased with borrowings under our credit facilities
and issuances of senior unsecured notes, but excluding cash, U.S. government securities and commercial paper instruments maturing within
one year of purchase. We also pay an incentive fee on income and an incentive fee on capital gains to our Advisor.

 The Amended Investment Advisory Agreement is materially
the same as the Investment Advisory Agreement except, following the IPO Date, the base management fee is calculated at an annual rate
of 1.00% and the incentive fee on income is subject to a twelve-quarter lookback quarterly hurdle rate of 1.50% as opposed to
a single quarter measurement and is subject to an Incentive Fee Cap based on our Cumulative Pre-Incentive Fee Net Return. This lookback
feature provides that the Advisor's income incentive fee may be reduced if our portfolio experiences aggregate write-downs or
net capital losses during the applicable Trailing Twelve Quarters. Pursuant to the Fee Waiver Agreement, commencing on the IPO Date, the
Advisor implemented waivers of (i) the income incentive fee for three calendar quarters commencing the quarter the initial public
offering was completed and (ii) a portion of the base management fee for one year following the completion of the initial public
offering. Amounts waived by the Advisor pursuant to the Fee Waiver Agreement are not subject to recoupment by the Advisor.

 Administration Agreement. On February 5,
2021, we entered into the Administration Agreement with our Advisor, which serves as our Administrator and provides or oversees the performance
of its required administrative services and professional services rendered by others, which include (but are not limited to) accounting,
payment of our expenses, legal, compliance, operations, technology and investor relations, preparation and filing of its tax returns,
and preparation of financial reports provided to its stockholders and filed with the SEC. On February 19, 2025, the Board approved an
additional one-year term of the Administration Agreement through March 15, 2026.

 We reimburse the Administrator for its costs and
expenses incurred in performing its obligations under the Administration Agreement, which may include its allocable portion of office
facilities, overhead, and compensation paid to or compensatory distributions received by its officers (including our Chief Compliance
Officer and Chief Financial Officer) and its respective staff who provide services to the Company. As the Company reimburses the Administrator
for its expenses, such costs (including the costs of sub-administrators) will be ultimately borne by common stockholders. The Administrator
does not receive compensation from us other than reimbursement of its expenses. The Administration Agreement may be terminated by either
party with 60 days' written notice.

 Since the inception of the Company, the Administrator
has engaged sub-administrators to assist the Administrator in performing certain of its administrative duties. During this period, the
Administrator has not sought reimbursement of its expenses other than expenses incurred by the sub-administrators. The Administrator has
engaged Ultimus Fund Solutions, LLC under a sub-administration agreement. Under the terms of the sub-administration agreement, Ultimus
Fund Solutions, LLC provides fund administration and fund accounting services. The Company pays fees to Ultimus Fund Solutions, LLC, which
constitute reimbursable expenses under the Administration Agreement. The Administrator may enter into additional sub-administration agreements
with third parties to perform other administrative and professional services on behalf of the Administrator.

 Non-Controlled, Affiliated Investment.
We hold Trademark Global LLC and TG Parent Newco LLC (Trademark Global LLC), both non-controlled, affiliated investments, as defined in
the 1940 Act. See "Item 1. – Notes to Consolidated Financial Statements – Note 3. Agreements and Related Party Transactions"
for further details.

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 We are subject to financial market risks, including
changes in interest rates. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of
interest rates. Because we fund a portion of our investments with borrowings, our net investment income will be affected by the difference
between the rate at which we invest and the rate at which we borrow. As a result, 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.

 Assuming that the consolidated statement of assets
and liabilities as of December 31, 2024 were to remain constant and that we took no actions to alter our existing interest rate sensitivity,
the following table shows the annualized impact ($ in millions) of hypothetical base rate changes in interest rate (considering interest
rate floors for floating rate instruments). We do not include our debt investments on non-accrual status and non-incoming producing
as of December 31, 2024 in this calculation.

 Change in Interest Rates

 Increase
 (Decrease)
 in Interest
 Income

 Increase
 (Decrease)
 in Interest
 Expense

 Net Increase
 (Decrease) in
 Net
 Investment
 Income

 Down 200 basis points

 $
 (39.1
)

 $
 (15.7
)

 $
 (23.4
)

 Down 100 basis points

 $
 (19.5
)

 $
 (7.8
)

 $
 (11.7
)

 Up 100 basis points

 $
 19.5

 $
 7.8

 $
 11.7

 Up 200 basis points

 $
 39.1

 $
 15.7

 $
 23.4

 The data in the table is based on the Company's current statement
of assets and liabilities.

 We may hedge against interest rate fluctuations
by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. While
hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits
of lower interest rates with respect to our portfolio of investments with fixed interest rates.

 ITEM 8.
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

to Consolidated Financial Statements

 Page

 Report of Independent Registered Public Accounting Firm (PCAOB ID 238)

 Consolidated Statements of Assets and Liabilities as of December 31, 2024 and 2023

 Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023 and 2022

 Consolidated Schedules of Investments as of December 31, 2024 and 2023

 F- 1

 Report
of Independent Registered Public Accounting Firm

 To the Board of Directors and Shareholders of Kayne Anderson BDC, Inc.

 Opinions on the Financial Statements and Internal Control
over Financial Reporting

 We have audited the accompanying consolidated statements of assets
and liabilities, including the consolidated schedule of investments, of Kayne Anderson BDC, Inc. and its subsidiaries (the "Company")
as of December 31, 2024 and 2023, and the related consolidated statements of operations, of changes in net assets and of cash
flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred
to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting
as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, 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, 2024
in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained,
in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established
in Internal Control - Integrated Framework (2013) issued by the COSO.

 We have also previously audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United States), the consolidated statements of assets and liabilities, including the consolidated
schedules of investments, of the Company as of December 31, 2022 and 2021, and the related consolidated statements of operations, changes
in net assets and cash flows for the year ended December 31, 2021 (none of which are presented herein), and we expressed unqualified opinions
on those consolidated financial statements. In our opinion, the information set forth in the Senior Securities table of the Company for
each of the four years in the period ended December 31, 2024 is fairly stated, in all material respects, in relation to the consolidated
financial statements from which it has been derived.

 Basis for Opinions

 The Company's management is responsible for these consolidated financial
statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal
control over financial reporting, included in Management's Annual Report on Internal Control over Financial Reporting appearing
under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's
internal control over financial reporting 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 audits to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was
maintained in all material respects.

 Our audits of the consolidated financial statements included performing
procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation
of securities owned as of December 31, 2024 and 2023 by correspondence with the custodian and transfer agent. Our audit of internal control
over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide
a reasonable basis for our opinions.

 F- 2

 Definition and Limitations of Internal Control over Financial
Reporting

 A company's internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

 Critical Audit Matters

 The critical audit matter communicated below is a matter arising from
the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee
and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially
challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the
consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 Valuation of Level 3 Debt Investments

 As described in Note 5 to the consolidated financial statements, the
Company held $1.74 billion of total level 3 investments at fair value as of December 31, 2024, with debt investments representing approximately
$1.72 billion of this total. The fair values of the level 3 debt investments were determined by management using a discounted cash flow
analysis and inputs that are unobservable and reflect management's judgments about assumptions that market participants would use
to determine a current transaction price. The significant unobservable input in the discounted cash flow analysis is the discount rate.

 The principal considerations for our determination that performing
procedures relating to the valuation of level 3 debt investments is a critical audit matter are (i) the significant judgment by management
when developing the fair value estimate of the level 3 debt investments; (ii) a high degree of auditor judgment, subjectivity, and effort
in performing procedures and evaluating audit evidence related to management's significant unobservable inputs related to the discount
rates; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

 Addressing the matter involved performing procedures and evaluating
audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing
the effectiveness of controls relating to the valuation of level 3 debt investments, including controls over the development of significant
unobservable inputs related to discount rates. These procedures also included, among others, testing the completeness, accuracy, and reliability
of the underlying data and either (i) testing management's process for developing the fair value estimate of the level 3 debt investments,
as well as the involvement of professionals with specialized skill and knowledge to assist in (a) evaluating the appropriateness of the
discounted cash flow analysis and (b) evaluating the reasonableness of the significant unobservable inputs used by management related
to the discount rates; or (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the external
market and industry data used in the discounted cash flow analysis and the reasonableness of management's estimate by developing
an independent fair value estimate range for level 3 debt investments using independently determined significant unobservable inputs for
the discount rates and comparing the independent fair value estimate range to management's estimates.

 /s/ PricewaterhouseCoopers LLP

 Los Angeles, California

 March 3, 2025

 We have served as the auditor of one or more investment companies in
Kayne Anderson Funds Family since 2004.

 F- 3

 Kayne

Statements of Assets and Liabilities

in 000's, except share and per share amounts)

 2024

 2023

 Assets:

 Investments, at fair value:

 Non-controlled, non-affiliated Investments (amortized cost of $ 1,956,617 and $ 1,343,223)

 $
 1,982,947

 $

 Non-controlled, affiliated investments (amortized cost of $ 15,438 and $ 0, respectively)

 12,196

 -

 Short-term investments (amortized cost of $ 48,683 and $ 12,802)

 Cash and cash equivalents

 22,375

 34,069

 Receivable for principal payments on investments

 Interest receivable

 14,965

 12,874

 Prepaid expenses and other assets

 Total Assets

 $
 2,082,664

 $
 1,423,666

 Liabilities:

 Corporate Credit Facility (Note 6)

 $

 $
 234,000

 Unamortized Corporate Credit Facility issuance costs

 ( 3,235
)

 ( 1,715
)

 Revolving Funding Facility (Note 6)

 420,000

 306,000

 Unamortized Revolving Funding Facility issuance costs

 ( 4,746
)

 ( 2,019
)

 Revolving Funding Facility II (Note 6)

 113,000

 70,000

 Unamortized Revolving Funding Facility II issuance costs

 ( 1,251
)

 ( 1,805
)

 Subscription Credit Agreement (Note 6)

 -

 10,750

 Unamortized Subscription Credit Facility issuance costs

 -

 ( 41
)

 Notes (Note 6)

 Unamortized notes issuance costs

 ( 643
)

 ( 851
)

 Distributions payable

 28,424

 22,050

 Management fee payable (Note 3)

 3,712

 2,996

 Incentive fee payable (Note 3)

 -

 14,195

 Accrued expenses and other liabilities

 15,236

 11,949

 Accrued excise tax expense

 Total Liabilities

 $
 896,322

 $
 740,610

 Commitments and contingencies (Note 8)

 Net Assets:

 Common Shares, $ 0.001 par value; 100,000,000 shares authorized; 71,059,689 and 41,603,666 as of December 31, 2024 and December 31, 2023, respectively, issued and outstanding

 $

 $

 Additional paid-in capital

 1,152,396

 669,990

 Total distributable earnings (deficit)

 33,875

 13,024

 Total Net Assets

 $
 1,186,342

 $

 Total Liabilities and Net Assets

 $
 2,082,664

 $
 1,423,666

 Net Asset Value Per Common Share

 $
 16.70

 $
 16.42

 See

 F- 4

 Kayne

Statements of Operations

in 000's, except share and per share amounts)

 For
 the years ended December 31,

 2024

 2023

 2022

 Income:

 Investment income
 from investments:

 income from non-controlled, non-affiliated investments

 $
 210,884

 $
 160,433

 $
 74,829

 income from non-controlled, affiliated investments

 -

 -

 income

 1,468

 -

 Total
 Investment Income

 213,106

 161,004

 74,829

 Expenses:

 Management
 fees

 17,487

 11,433

 7,147

 Incentive
 fees

 17,449

 9,433

 4,698

 expense

 61,516

 52,314

 20,292

 Professional
 fees

 1,503

 Directors
 fees

 costs

 -

 -

 Excise
 tax

 -

 Other
 general and administrative expenses

 2,159

 1,604

 1,379

 Total
 Expenses

 101,552

 76,187

 34,650

 Less:
 Management fee waiver (Note 3)

 ( 2,900
)

 -

 -

 Less:
 Incentive fee waiver (Note 3)

 ( 14,818
)

 -

 -

 Net
 expenses

 83,834

 76,187

 34,650

 Net
 Investment Income (Loss)

 129,272

 84,817

 40,179

 Realized
 and unrealized gains (losses) on investments

 Net
 realized gains (losses):

 Non-controlled,
 non-affiliated investments

)

 Total
 net realized gains (losses)

)

 Net
 change in unrealized gains (losses):

 Non-controlled,
 non-affiliated investments

 4,783

 2,944

 5,502

 Non-controlled,
 affiliated investments

 ( 1,968
)

 -

 -

 Deferred
 income tax expense

 ( 717
)

 -

 -

 Total
 net change in unrealized gains (losses)

 2,098

 2,944

 5,502

 Total
 realized and unrealized gains (losses)

 2,668

 ( 7,742
)

 5,586

 Net
 Increase (Decrease) in Net Assets Resulting from Operations

 $

 $

 $

 Per
 Common Share Data:

 Basic
 and diluted net investment income per common share

 $
 2.03

 $
 2.16

 $
 1.48

 Basic
 and diluted net increase in net assets resulting from operations

 $
 2.07

 $
 1.96

 $
 1.68

 Weighted
 Average Common Shares Outstanding - Basic and Diluted

 63,762,377

 39,250,232

 27,184,302

 See

 F- 5

 Kayne

Statements of Changes in Net Assets

in 000's)

 For
 the years ended December 31,

 2024

 2023

 2022

 Increase (Decrease) in Net
 Assets Resulting from Operations:

 Net investment
 income (loss)

 $
 129,272

 $
 84,817

 $
 40,179

 Net realized gains (losses)
 on investments

)

 Net
 change in unrealized gains (losses) on investments, net of tax

 2,098

 2,944

 5,502

 Net
 Increase (Decrease) in Net Assets Resulting from Operations

 Decrease in Net Assets Resulting
 from Stockholder Dividends

 Dividends
 to stockholders

 ( 111,908
)

 ( 81,617
)

 ( 39,553
)

 Net
 Decrease in Net Assets Resulting from Stockholder Dividends

 ( 111,908
)

 ( 81,617
)

 ( 39,553
)

 Increase in Net Assets Resulting
 from Capital Share Transactions

 Issuance of common shares,
 net of underwriting and offering costs

 480,997

 90,575

 268,218

 Common stock purchased
 under the share repurchase program

 ( 1,525
)

 -

 -

 Reinvestment of
 dividends

 3,782

 4,982

 5,642

 Net
 Increase in Net Assets Resulting from Capital Share Transactions

 483,254

 95,557

 273,860

 Total Increase (Decrease)
 in Net Assets

 503,286

 91,015

 280,072

 Net Assets, Beginning of Period

 592,041

 311,969

 Net Assets, End of Period

 $
 1,186,342

 $

 $
 592,041

 See

 F- 6

 Kayne

Statements of Cash Flows

in 000's)

 For the years ended December 31,

 2024

 2023

 2022

 Cash Flows from Operating Activities:

 Net increase (decrease) in net assets resulting from operations

 $

 $

 $

 Adjustments to reconcile net increase (decrease) in net assets resulting from

 operations to net cash used in operating activities:

 Net realized (gains)/losses on investments

 ( 570
)

 10,686

 ( 84
)

 Net change in unrealized (gains)/losses on investments

 ( 2,815
)

 ( 2,944
)

 ( 5,502
)

 Net accretion of discount on investments

 ( 12,472
)

 ( 9,777
)

 ( 4,819
)

 Sales (purchases) of short-term investments, net

 ( 35,881
)

 ( 2,955
)

 ( 6,173
)

 Purchases of portfolio investments

 ( 983,505
)

 ( 391,341
)

 ( 718,236
)

 Proceeds from sales of investments and principal repayments

 370,423

 196,649

 142,118

 Paid-in-kind interest from portfolio investments

 ( 2,706
)

 ( 1,652
)

 ( 151
)

 Amortization of deferred financing cost

 3,718

 2,694

 2,122

 Increase/(decrease) in operating assets and liabilities:

 (Increase)/decrease in interest and dividends receivable

 ( 2,091
)

 ( 2,430
)

 ( 8,311
)

 (Increase)/decrease in deferred offering costs

 -

 -

 (Increase)/decrease in receivable for principal payments on investments

 ( 436
)

 ( 111
)

 Increase/(decrease) in excise tax payable

 -

 (Increase)/decrease in prepaid expenses and other assets

 ( 639
)

 ( 199
)

 Increase/(decrease) in payable for investments purchased

 -

 ( 956
)

 Increase/(decrease) in management fees payable

 1,463

 Increase/(decrease) in incentive fee payable

 ( 14,195
)

 9,433

 4,697

 Increase/(decrease) in accrued organizational and offering costs, net

 -

 -

 ( 6
)

 Increase/(decrease) in accrued expenses and other liabilities

 3,287

 4,748

 4,672

 Net cash used in operating activities

 ( 544,502
)

 ( 110,053
)

 ( 541,770
)

 Cash Flows from Financing Activities:

 Borrowings/(payments) on Corporate Credit Facility, net

 16,000

 ( 35,000
)

 269,000

 Borrowings on Revolving Funding Facility, net

 114,000

 106,000

 200,000

 Borrowings on Revolving Funding Facility II, net

 43,000

 70,000

 -

 (Payments)/Borrowings on Loan and Security Agreement, net

 -

 -

 ( 162,000
)

 Borrowings/(payments) on Subscription Credit Agreement, net

 ( 10,750
)

 ( 97,250
)

 3,000

 Payments of debt issuance costs

 ( 7,162
)

 ( 3,716
)

 ( 6,859
)

 Dividends paid in cash

 ( 101,752
)

 ( 70,013
)

 ( 23,098
)

 Proceeds from issuance of common shares, net of underwriting & offering costs

 480,997

 90,575

 268,218

 Proceeds from issuance of Notes

 -

 -

 Repurchase of common shares

 ( 1,525
)

 -

 -

 Net cash provided by financing activities

 532,808

 135,596

 548,261

 Net increase (decrease) in cash and cash equivalents

 ( 11,694
)

 25,543

 6,491

 Cash and cash equivalents, beginning of period

 34,069

 8,526

 2,035

 Cash and cash equivalents, end of period

 $
 22,375

 $
 34,069

 $
 8,526

 Supplemental and Non-Cash Information:

 Interest paid during the period

 $
 55,014

 $
 44,384

 $
 14,211

 Non-cash financing activities not included herein consisted of reinvestment of dividends

 $
 3,782

 $
 4,982

 $
 5,642

 See

 F- 7

 Kayne

 As

 Date

 Par

 Fair
 Value

 Debt and Equity Investments

 Debt Investments

 Basel U.S. Acquisition Co., Inc. (IAC)

 (6)

 9.94
 %

 5.50
 %

 -

 $
 18,308

 $
 17,978

 $
 18,570

 1.6
 %

 9.94
 %

 5.50
 %

 -

 3,697

 3,612

 3,750

 0.3
 %

 9.94
 %

 5.50
 %

 -

 7/8/2026

 -

 -

 -

 0.0
 %

 9.94
 %

 5.50
 %

 -

 -

 -

 -

 0.0
 %

 Fastener Distribution Holdings, LLC

 9.31
 %

 4.75
 %

 -

 11/4/2031

 20,067

 19,870

 20,067

 1.7
 %

 9.31
 %

 4.75
 %

 -

 11/4/2031

 -

 -

 -

 0.0
 %

 TransDigm Inc

 (8)

 6.83
 %

 2.50
 %

 -

 2/28/2031

 10,010

 10,055

 10,023

 0.8
 %

 11.47
 %

 7.00
 %

 -

 12/22/2028

 30,896

 30,249

 30,819

 2.6
 %

 11.56
 %

 7.00
 %

 -

 12/22/2028

 4,679

 4,578

 4,667

 0.4
 %

 87,657

 86,342

 87,896

 7.4
 %

 Clarios Global LP

 6.86
 %

 2.50
 %

 -

 5/6/2030

 10,060

 10,098

 10,090

 0.8
 %

 Speedstar Holding LLC

 10.59
 %

 6.00
 %

 -

 7/22/2027

 6,100

 6,040

 6,131

 0.5
 %

 10.59
 %

 6.00
 %

 -

 7/22/2027

 0.1
 %

 Vehicle Accessories, Inc.

 9.72
 %

 5.25
 %

 -

 26,424

 26,179

 26,424

 2.2
 %

 9.72
 %

 5.25
 %

 -

 -

 -

 -

 0.0
 %

 WAM CR Acquisition, Inc. (Wolverine)

 10.58
 %

 6.25
 %

 -

 7/23/2029

 26,830

 26,327

 27,232

 2.3
 %

 70,080

 69,294

 70,546

 5.9
 %

 Biotechnology

 Alcami Corporation (Alcami)

 11.55
 %

 7.00
 %

 -

 0.1
 %

 11.44
 %

 7.00
 %

 -

 0.0
 %

 11.66
 %

 7.00
 %

 -

 11,501

 11,213

 11,616

 1.0
 %

 12,464

 12,140

 12,590

 1.1
 %

 Building products

 Eastern Wholesale Fence, LLC

 12.74
 %

 8.00
 %

 -

 2,828

 2,804

 2,828

 0.2
 %

 12.74
 %

 8.00
 %

 -

 15,678

 15,468

 15,678

 1.3
 %

 12.74
 %

 8.00
 %

 -

 1,077

 1,074

 1,077

 0.1
 %

 Ruff Roofers Buyer, LLC

 9.86
 %

 5.50
 %

 -

 11/17/2029

 7,115

 6,880

 7,115

 0.6
 %

 10.11
 %

 5.75
 %

 -

 11/17/2029

 -

 -

 -

 0.0
 %

 10.11
 %

 5.75
 %

 -

 11/17/2029

 3,818

 3,782

 3,818

 0.3
 %

 US Anchors Group, Inc. (Mechanical Plastics Corp.)

 9.33
 %

 5.00
 %

 -

 7/15/2029

 14,109

 13,800

 14,109

 1.2
 %

 9.33
 %

 5.00
 %

 -

 7/15/2029

 -

 -

 -

 0.0
 %

 44,625

 43,808

 44,625

 3.7
 %

 Chemicals

 Fralock Buyer LLC

 10.75
 %

 6.00
 %

 0.50
 %

 3/31/2025

 9,286

 9,278

 9,263

 0.8
 %

 10.75
 %

 6.00
 %

 0.50
 %

 3/31/2025

 2,388

 2,385

 2,382

 0.2
 %

 10.83
 %

 6.00
 %

 0.50
 %

 3/31/2025

 0.1
 %

 Nouryon USA, LLC (f/k/a AkzoNobel Specialty Chemicals)

 (8)

 7.66
 %

 3.25
 %

 -

 4/3/2028

 9,854

 9,904

 9,913

 0.8
 %

 22,277

 22,314

 22,305

 1.9
 %

 Advanced Environmental Monitoring

 (7)

 10.41
 %

 5.75
 %

 -

 1/29/2027

 3,651

 3,588

 3,651

 0.3
 %

 10.23
 %

 5.75
 %

 -

 1/29/2026

 7,372

 7,266

 7,372

 0.6
 %

 10.23
 %

 5.75
 %

 -

 1/29/2026

 2,787

 2,787

 2,787

 0.2
 %

 Alight Solutions (Tempo Acquisition LLC)

 (8)

 6.61
 %

 2.25
 %

 -

 8,185

 8,213

 8,210

 0.7
 %

 Allentown, LLC

 11.66
 %

 6.00
 %

 1.00
 %

 7,584

 7,474

 7,318

 0.6
 %

 11.66
 %

 6.00
 %

 1.00
 %

 1,370

 1,346

 1,322

 0.1
 %

 12.50
 %

 5.00
 %

 -

 PRIME

 0.0
 %

 F- 8

 Kayne

 As

 Date

 Par

 Fair
 Value

 10.67
 %

 6.00
 %

 -

 16,057

 15,908

 16,057

 1.4
 %

 10.67
 %

 6.00
 %

 -

 1,720

 1,706

 1,720

 0.2
 %

 10.56
 %

 6.00
 %

 -

 2,064

 2,044

 2,064

 0.2
 %

 10.45
 %

 6.00
 %

 -

 0.1
 %

 10.50
 %

 6.00
 %

 -

 2,626

 2,588

 2,626

 0.2
 %

 10.67
 %

 6.00
 %

 -

 6,176

 6,110

 6,176

 0.5
 %

 10.60
 %

 6.00
 %

 -

 4,919

 4,878

 4,919

 0.4
 %

 10.49
 %

 6.00
 %

 -

 2,557

 2,481

 2,557

 0.2
 %

 (9)(10)

 -

 -

 -

 -

 11/6/2028

 4,688

 4,688

 4,688

 0.4
 %

 -

 -

 -

 -

 11/6/2028

 0.1
 %

 Bloomington Holdco, LLC (BW Fusion)

 10.05
 %

 5.50
 %

 -

 5/1/2030

 21,248

 20,830

 21,248

 1.8
 %

 10.05
 %

 5.50
 %

 -

 5/1/2030

 3,612

 3,417

 3,612

 0.3
 %

 BLP Buyer, Inc. (Bishop Lifting Products)

 10.34
 %

 6.00
 %

 -

 25,969

 25,538

 26,163

 2.2
 %

 10.34
 %

 6.00
 %

 -

 1,220

 1,198

 1,229

 0.1
 %

 10.34
 %

 6.00
 %

 -

 3,178

 3,123

 3,202

 0.3
 %

 10.34
 %

 6.00
 %

 -

 0.1
 %

 Connect America.com, LLC

 9.83
 %

 5.50
 %

 -

 10/11/2029

 25,670

 25,298

 25,670

 2.2
 %

 Diverzify Intermediate LLC

 10.53
 %

 5.75
 %

 -

 4/4/2026

 -

 -

 -

 0.0
 %

 10.53
 %

 5.75
 %

 -

 5/11/2027

 6,033

 5,902

 5,957

 0.5
 %

 Gusmer Enterprises, Inc.

 11.47
 %

 7.00
 %

 -

 3,688

 3,652

 3,688

 0.3
 %

 11.47
 %

 7.00
 %

 -

 4,828

 4,784

 4,828

 0.4
 %

 11.47
 %

 7.00
 %

 -

 1,349

 1,302

 1,349

 0.1
 %

 11.47
 %

 7.00
 %

 -

 -

 -

 -

 0.0
 %

 Superior Intermediate LLC (Landmark Structures)

 10.35
 %

 6.00
 %

 -

 18,257

 17,762

 18,257

 1.5
 %

 10.35
 %

 6.00
 %

 -

 -

 -

 -

 0.0
 %

 10.38
 %

 6.00
 %

 -

 -

 -

 -

 0.0
 %

 PMFC Holding, LLC

 12.74
 %

 8.00
 %

 -

 12/19/2032

 5,504

 5,435

 5,504

 0.5
 %

 12.74
 %

 8.00
 %

 -

 12/19/2032

 2,760

 2,746

 2,760

 0.2
 %

 12.74
 %

 8.00
 %

 -

 12/19/2032

 0.0
 %

 Regiment Security Partners LLC

 12.50
 %

 8.00
 %

 -

 6,360

 6,298

 6,360

 0.5
 %

 12.50
 %

 8.00
 %

 -

 2,602

 2,582

 2,602

 0.2
 %

 See

 F- 9

 Kayne

 As

 Date

Par

 Fair
 Value

 12.50
 %

 8.00
 %

 -

 1,452

 1,434

 1,452

 0.1
 %

 Tapco Buyer LLC

 9.52
 %

 5.00
 %

 -

 11/15/2030

 10,471

 10,316

 10,471

 0.9
 %

 9.34
 %

 5.00
 %

 -

 11/15/2030

 0.1
 %

 9.34
 %

 5.00
 %

 -

 11/15/2030

 -

 -

 -

 0.0
 %

 219,638

 216,195

 219,492

 18.5
 %

 Construction materials

 Quikrete Holdings Inc

 (8)

 6.61
 %

 2.25
 %

 -

 3/19/2029

 14,888

 14,888

 14,870

 1.3
 %

 Carton Packaging Buyer, Inc. (Century Box)

 10.84
 %

 6.25
 %

 -

 10/30/2028

 24,018

 23,477

 23,778

 2.0
 %

 10.84
 %

 6.25
 %

 -

 10/30/2028

 -

 -

 -

 0.0
 %

 Drew Foam Companies, Inc.

 (7)

 10.48
 %

 6.00
 %

 -

 12/5/2026

 6,978

 6,835

 6,978

 0.6
 %

 10.78
 %

 6.00
 %

 -

 12/5/2026

 19,835

 19,685

 19,835

 1.7
 %

 FCA, LLC (FCA Packaging)

 10.13
 %

 5.00
 %

 -

 18,673

 18,492

 18,673

 1.6
 %

 10.11
 %

 5.75
 %

 -

 1,711

 1,658

 1,745

 0.1
 %

 10.13
 %

 5.00
 %

 -

 -

 -

 -

 0.0
 %

 Innopak Industries, Inc.

 10.75
 %

 6.25
 %

 -

 3/5/2027

 7,241

 7,116

 7,241

 0.6
 %

 10.75
 %

 6.25
 %

 -

 3/5/2027

 5,925

 5,821

 5,925

 0.5
 %

 10.69
 %

 6.25
 %

 -

 3/5/2027

 14,775

 14,529

 14,775

 1.2
 %

 M2S Group Intermediate Holdings, Inc.

 9.09
 %

 4.75
 %

 -

 8/22/2031

 39,080

 36,446

 37,713

 3.2
 %

 The Robinette Company

 10.52
 %

 6.00
 %

 -

 5/10/2029

 10,226

 10,042

 10,431

 0.9
 %

 10.52
 %

 6.00
 %

 -

 5/10/2029

 2,414

 2,322

 2,462

 0.2
 %

 10.52
 %

 6.00
 %

 -

 11/10/2025

 -

 -

 -

 0.0
 %

 150,876

 146,423

 149,556

 12.6
 %

 Diversified consumer services

 Fugue Finance B.V.

 8.25
 %

 3.75
 %

 -

 2/26/2031

 2,985

 2,979

 3,001

 0.3
 %

 Diversified telecommunication services

 Liberty Global/Vodafone Ziggo

 7.01
 %

 2.50
 %

 -

 4/30/2028

 10,060

 9,968

 10,006

 0.8
 %

 Network Connex (f/k/a NTI Connect, LLC)

 9.48
 %

 5.00
 %

 -

 1/31/2026

 3,552

 3,530

 3,552

 0.3
 %

 Virgin Media Bristor LLC

 (8)

 7.01
 %

 2.50
 %

 -

 1/31/2028

 17,500

 17,343

 17,361

 1.5
 %

 31,112

 30,841

 30,919

 2.6
 %

 Electrical equipment

 Westinghouse (Wec US Holdings LTD)

 (8)

 6.80
 %

 2.25
 %

 -

 1/27/2031

 10,035

 10,046

 10,033

 0.8
 %

 F- 10

 Kayne

 As

 Date

 Par

 Fair
 Value

 BC CS 2, L.P. (Cuisine Solutions)

 (6)(11)

 -

 12.55
 %

 8.00
 %

 -

 7/8/2028

 18,111

 17,788

 18,111

 1.5
 %

 10.99
 %

 6.25
 %

 -

 29,340

 28,886

 29,340

 2.5
 %

 10.99
 %

 6.25
 %

 -

 4,338

 4,249

 4,338

 0.4
 %

 10.99
 %

 6.25
 %

 -

 4,364

 4,263

 4,364

 0.4
 %

 10.99
 %

 6.25
 %

 -

 1,418

 1,395

 1,418

 0.1
 %

 CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)

 9.77
 %

 5.25
 %

 -

 2/26/2030

 13,896

 13,587

 13,896

 1.2
 %

 9.77
 %

 5.25
 %

 -

 2/26/2030

 7,926

 7,622

 7,926

 0.7
 %

 9.77
 %

 5.00
 %

 -

 2/26/2030

 -

 -

 -

 0.0
 %

 City Line Distributors, LLC

 10.47
 %

 6.00
 %

 -

 8,806

 8,634

 8,894

 0.7
 %

 10.51
 %

 6.00
 %

 -

 3,608

 3,550

 3,645

 0.3
 %

 10.47
 %

 6.00
 %

 -

 -

 -

 -

 0.0
 %

 Gulf Pacific Holdings, LLC

 10.46
 %

 6.00
 %

 -

 19,976

 19,703

 19,576

 1.7
 %

 10.55
 %

 6.00
 %

 -

 1,684

 1,684

 1,651

 0.1
 %

 10.46
 %

 6.00
 %

 -

 4,195

 4,120

 4,111

 0.3
 %

 10.05
 %

 5.63
 %

 -

 26,970

 26,511

 26,970

 2.3
 %

 10.43
 %

 6.00
 %

 -

 0.0
 %

 10.05
 %

 5.63
 %

 -

 0.1
 %

 10.05
 %

 5.63
 %

 -

 4,004

 3,941

 4,004

 0.3
 %

 10.05
 %

 5.63
 %

 -

 2,303

 2,248

 2,303

 0.2
 %

 J&K Ingredients, LLC

 10.83
 %

 6.50
 %

 -

 11/16/2028

 11,465

 11,230

 11,580

 1.0
 %

 ML Buyer, LLC (Mama Lycha Foods, LLC)

 9.68
 %

 5.25
 %

 -

 9/9/2029

 11,555

 11,262

 11,555

 1.0
 %

 9.68
 %

 5.25
 %

 -

 9/9/2029

 -

 -

 -

 0.0
 %

 13.19
 %

 6.50
 %

 2.00
 %

 12/29/2026

 14,651

 14,541

 12,600

 1.1
 %

 13.19
 %

 6.50
 %

 2.00
 %

 12/29/2026

 2,629

 2,604

 2,261

 0.2
 %

 Worldwide Produce Acquisition, LLC

 11.00
 %

 6.75
 %

 -

 0.0
 %

 11.00
 %

 6.75
 %

 -

 0.0
 %

 11.00
 %

 6.75
 %

 -

 -

 -

 -

 0.0
 %

 11.00
 %

 6.75
 %

 -

 2,831

 2,769

 2,775

 0.2
 %

 196,012

 192,460

 193,234

 16.3
 %

 Brightview, LLC

 10.47
 %

 6.00
 %

 -

 12,738

 12,729

 12,611

 1.1
 %

 10.47
 %

 6.00
 %

 -

 1,701

 1,699

 1,684

 0.1
 %

 10.34
 %

 6.00
 %

 -

 0.1
 %

 See

 F- 11

 Kayne

 As

 Date

 Par

 Fair
 Value

 Guardian Dentistry Partners

 9.72
 %

 5.25
 %

 -

 8/20/2027

 5,914

 5,829

 5,914

 0.5
 %

 9.72
 %

 5.25
 %

 -

 8/20/2027

 11,592

 11,433

 11,592

 1.0
 %

 9.72
 %

 5.25
 %

 -

 8/20/2027

 4,522

 4,503

 4,522

 0.4
 %

 9.72
 %

 5.25
 %

 -

 8/20/2027

 -

 -

 -

 0.0
 %

 Guided Practice Solutions: Dental, LLC (GPS)

 10.72
 %

 6.25
 %

 -

 11/24/2026

 16,654

 16,348

 16,654

 1.4
 %

 10.72
 %

 6.25
 %

 -

 11/24/2026

 3,980

 3,980

 3,980

 0.3
 %

 10.72
 %

 6.25
 %

 -

 11/24/2026

 9,734

 9,634

 9,734

 0.8
 %

 Light Wave Dental Management LLC

 9.82
 %

 5.50
 %

 -

 -

 -

 -

 0.0
 %

 9.82
 %

 5.50
 %

 -

 22,198

 21,583

 22,198

 1.9
 %

 9.82
 %

 5.50
 %

 -

 0.0
 %

 9.85
 %

 5.50
 %

 -

 2,288

 2,250

 2,288

 0.2
 %

 MVP VIP Borrower, LLC

 10.83
 %

 6.50
 %

 -

 1/3/2029

 19,480

 19,075

 19,675

 1.7
 %

 10.83
 %

 6.50
 %

 -

 1/3/2029

 1,571

 1,539

 1,587

 0.1
 %

 NMA Holdings, LLC (Neuromonitoring Associates)

 9.60
 %

 5.25
 %

 -

 12/18/2030

 16,425

 16,046

 16,425

 1.4
 %

 9.60
 %

 5.25
 %

 -

 12/18/2030

 -

 -

 -

 0.0
 %

 9.60
 %

 5.25
 %

 -

 12/18/2030

 -

 -

 -

 0.0
 %

 Redwood MSO, LLC (Smile Partners)

 9.60
 %

 5.25
 %

 -

 12/20/2029

 11,216

 10,955

 11,216

 1.0
 %

 9.60
 %

 5.25
 %

 -

 12/20/2029

 -

 -

 -

 0.0
 %

 11.75
 %

 4.25
 %

 -

 PRIME

 12/19/2030

 -

 -

 -

 0.0
 %

 Refocus Management Services, LLC

 10.75
 %

 6.00
 %

 -

 2/14/2029

 18,221

 17,736

 18,221

 1.5
 %

 10.75
 %

 6.00
 %

 -

 2/14/2029

 2,525

 2,380

 2,525

 0.2
 %

 10.75
 %

 6.00
 %

 -

 2/14/2029

 -

 -

 -

 0.0
 %

 Salt Dental Collective LLC

 11.21
 %

 6.75
 %

 -

 2/15/2028

 3,980

 3,980

 3,980

 0.3
 %

 166,007

 162,950

 166,067

 14.0
 %

 11.78
 %

 7.00
 %

 -

 19,084

 18,518

 18,655

 1.6
 %

 11.78
 %

 7.00
 %

 -

 -

 -

 -

 0.0
 %

 11.78
 %

 7.00
 %

 -

 -

 -

 -

 0.0
 %

 Medline Borrower LP

 (8)

 6.82
 %

 2.25
 %

 -

 10/23/2028

 9,985

 10,024

 10,012

 0.8
 %

 29,069

 28,542

 28,667

 2.4
 %

 Hotels, restaurants & leisure

 Inspire Brands

 (8)

 6.86
 %

 2.50
 %

 -

 12/15/2027

 10,010

 10,030

 10,012

 0.8
 %

 Restaurant Brands (1011778 BC ULC)

 6.11
 %

 1.75
 %

 -

 9/20/2030

 17,369

 17,387

 17,264

 1.5
 %

 27,379

 27,417

 27,276

 2.3
 %

 F- 12

 Kayne

 As

 Date

Par

 Fair
 Value

 Household durables

 Curio Brands, LLC

 9.48
 %

 5.00
 %

 -

 16,286

 16,060

 16,286

 1.4
 %

 9.48
 %

 5.00
 %

 -

 -

 -

 -

 0.0
 %

 9.48
 %

 5.00
 %

 -

 3,911

 3,911

 3,911

 0.3
 %

 20,197

 19,971

 20,197

 1.7
 %

 Household products

 Home Brands Group Holdings, Inc. (ReBath)

 9.49
 %

 4.75
 %

 -

 11/8/2026

 15,238

 1.3
 %

 9.49
 %

 4.75
 %

 -

 11/8/2026

 -

 -

 -

 0.0
 %

 15,238

 1.3
 %

 Insurance

 Allcat Claims Service, LLC

 10.46
 %

 6.00
 %

 -

 7,639

 7,552

 7,639

 0.6
 %

 10.46
 %

 6.00
 %

 -

 21,387

 20,960

 21,387

 1.8
 %

 10.69
 %

 6.00
 %

 -

 -

 -

 -

 0.0
 %

 AmWINS Group Inc

 (8)

 6.72
 %

 2.25
 %

 -

 2/22/2028

 9,956

 9,970

 9,982

 0.9
 %

 38,982

 38,482

 39,008

 3.3
 %

 11.00
 %

 6.50
 %

 -

 7/26/2027

 33,616

 33,198

 33,616

 2.8
 %

 11.00
 %

 6.50
 %

 -

 7/26/2027

 -

 -

 -

 0.0
 %

 33,616

 33,198

 33,616

 2.8
 %

 MacNeill Pride Group Corp.

 11.84
 %

 6.75
 %

 0.50
 %

 8,038

 8,003

 7,997

 0.7
 %

 11.84
 %

 6.75
 %

 0.50
 %

 1,505

 1,499

 1,497

 0.1
 %

 11.84
 %

 6.75
 %

 0.50
 %

 1,685

 1,664

 1,677

 0.1
 %

 11.34
 %

 6.75
 %

 -

 0.1
 %

 Pixel Intermediate, LLC

 (6)

 10.92
 %

 6.50
 %

 -

 2/1/2029

 20,723

 20,276

 20,931

 1.8
 %

 10.83
 %

 6.50
 %

 -

 2/1/2029

 6,989

 6,810

 7,059

 0.6
 %

 Spinrite, Inc.

 (6)

 9.83
 %

 5.50
 %

 -

 6/30/2025

 5,118

 5,096

 5,118

 0.4
 %

 9.83
 %

 5.50
 %

 -

 6/30/2025

 3,399

 3,399

 3,399

 0.3
 %

 TG Parent Newco LLC (Trademark Global LLC)

 (9)(10)(12)

 -

 -

 -

 -

 7/30/2030

 12,623

 12,623

 9,972

 0.8
 %

 -

 -

 -

 -

 7/30/2030

 2,815

 2,815

 2,224

 0.2
 %

 VENUplus, Inc. (f/k/a CTM Group, Inc.)

 11.96
 %

 4.75
 %

 2.75
 %

 4,431

 4,359

 4,365

 0.4
 %

 67,925

 67,129

 64,835

 5.5
 %

 Machinery

 MRC Keystone Acquisition LLC (Automated Handing Solutions)

 10.85
 %

 6.50
 %

 -

 14,016

 13,660

 14,016

 1.2
 %

 10.85
 %

 6.50
 %

 -

 -

 -

 -

 0.0
 %

 Eppinger Technologies, LLC

 (6)

 14.48
 %

 8.50
 %

 1.50
 %

 2/4/2026

 24,886

 24,606

 24,886

 2.1
 %

 13.23
 %

 7.25
 %

 1.50
 %

 2/4/2026

 1,371

 1,332

 1,371

 0.1
 %

 Luxium Solutions, LLC

 10.58
 %

 6.25
 %

 -

 12/1/2027

 3,815

 3,766

 3,815

 0.3
 %

 10.58
 %

 6.25
 %

 -

 12/1/2027

 4,697

 4,637

 4,697

 0.4
 %

 10.58
 %

 6.25
 %

 -

 12/1/2027

 1,233

 1,220

 1,233

 0.1
 %

 F- 13

 Kayne

 As

 Date

 Par

 Fair
 Value

 PVI Holdings, Inc

 9.68
 %

 4.94
 %

 -

 1/18/2028

 23,653

 23,423

 23,653

 2.0
 %

 73,671

 72,644

 73,671

 6.2
 %

 Media

 Directv Financing LLC

 (8)

 9.85
 %

 5.00
 %

 -

 8/2/2027

 16,154

 16,244

 16,182

 1.4
 %

 DRS Holdings III, Inc. (Dr. Scholl's)

 10.71
 %

 6.25
 %

 -

 11/1/2025

 10,618

 10,596

 10,618

 0.9
 %

 10.71
 %

 6.25
 %

 -

 11/1/2025

 -

 -

 -

 0.0
 %

 PH Beauty Holdings III, Inc.

 10.17
 %

 5.00
 %

 -

 9/28/2025

 10,496

 10,422

 10,496

 0.9
 %

 Phoenix YW Buyer, Inc. (Elida Beauty)

 9.33
 %

 5.00
 %

 -

 5/31/2030

 11,013

 10,747

 11,013

 0.9
 %

 9.33
 %

 5.00
 %

 -

 5/31/2030

 -

 -

 -

 0.0
 %

 9.83
 %

 5.50
 %

 -

 5/1/2029

 19,700

 18,899

 19,700

 1.7
 %

 9.83
 %

 5.50
 %

 -

 5/1/2029

 12,908

 12,674

 12,908

 1.1
 %

 8.33
 %

 4.00
 %

 -

 5/1/2029

 8,333

 8,062

 8,333

 0.7
 %

 73,068

 71,400

 73,068

 6.2
 %

 Pharmaceuticals

 Foundation Consumer Brands LLC

 10.89
 %

 6.25
 %

 -

 2/12/2027

 6,358

 6,334

 6,358

 0.5
 %

 10.89
 %

 6.25
 %

 -

 2/12/2027

 -

 -

 -

 0.0
 %

 Jazz Pharmaceuticals Inc.

 6.61
 %

 2.25
 %

 -

 5/5/2028

 17,301

 17,407

 17,334

 1.5
 %

 Organon & Co

 6.60
 %

 2.25
 %

 -

 5/19/2031

 12,440

 12,411

 12,455

 1.0
 %

 36,099

 36,152

 36,147

 3.0
 %

 Professional services

 4 Over International, LLC

 11.46
 %

 7.00
 %

 -

 12/7/2026

 18,851

 18,376

 18,662

 1.6
 %

 DISA Holdings Corp. (DISA)

 9.50
 %

 5.00
 %

 -

 8,320

 8,174

 8,320

 0.7
 %

 9.40
 %

 5.00
 %

 -

 0.0
 %

 9.40
 %

 5.00
 %

 -

 -

 -

 -

 0.0
 %

 9.50
 %

 5.00
 %

 -

 1,311

 1,294

 1,311

 0.1
 %

 9.50
 %

 5.00
 %

 -

 21,953

 21,505

 21,953

 1.9
 %

 Dun & Bradstreet Corp

 (8)

 6.59
 %

 2.25
 %

 -

 9,985

 9,995

 9,986

 0.8
 %

 Envirotech Services, LLC

 10.34
 %

 6.00
 %

 -

 33,046

 32,290

 33,046

 2.8
 %

 10.35
 %

 6.00
 %

 -

 0.0
 %

 10.34
 %

 6.00
 %

 -

 -

 -

 -

 0.0
 %

 93,715

 91,839

 93,527

 7.9
 %

 Semiconductors & semiconductor equipment

 MKS Instruments Inc.

 6.59
 %

 2.25
 %

 -

 8/17/2029

 11,823

 11,871

 11,846

 1.0
 %

 Great Outdoors Group, LLC

 (8)

 8.22
 %

 3.75
 %

 -

 3/6/2028

 17,321

 17,361

 17,382

 1.5
 %

 See

 F- 14

 Kayne

 As

 Date

 Par

 Fair
 Value

 Harbor Freight Tools USA Inc

 (8)

 6.86
 %

 2.75
 %

 -

 10/19/2027

 17,456

 17,424

 17,198

 1.4
 %

 Sundance Holdings Group, LLC

 (7)(9)(10)

 -

 -

 -

 -

 6/30/2025

 9,414

 9,412

 6,590

 0.5
 %

 -

 -

 -

 -

 6/30/2025

 0.1
 %

 44,635

 44,641

 41,827

 3.5
 %

 14.73
 %

 7.25
 %

 3.00
 %

 7/20/2027

 27,799

 26,870

 27,799

 2.3
 %

 14.73
 %

 7.25
 %

 3.00
 %

 7/20/2027

 2,136

 1,986

 2,136

 0.2
 %

 BEL USA, LLC

 11.67
 %

 7.00
 %

 -

 6/2/2026

 5,503

 5,427

 5,379

 0.5
 %

 11.67
 %

 7.00
 %

 -

 6/2/2026

 0.0
 %

 YS Garments, LLC

 12.25
 %

 7.50
 %

 -

 8/9/2026

 6,263

 6,210

 6,075

 0.5
 %

 41,791

 40,582

 41,477

 3.5
 %

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 9.59
 %

 5.25
 %

 -

 7/22/2027

 34,300

 33,591

 34,129

 2.9
 %

 TL Alpine Holding Corp. (Air Distribution Technologies Inc.)

 10.55

 %

 6.00
 %

 -

 8/1/2030

 18,253

 17,905

 18,435

 1.5
 %

 BCDI Meteor Acquisition, LLC (Meteor)

 11.43
 %

 7.00
 %

 -

 6/29/2028

 16,133

 15,859

 16,133

 1.3
 %

 11.43
 %

 7.00
 %

 -

 6/29/2028

 2,223

 2,180

 2,223

 0.2
 %

 CGI Automated Manufacturing, LLC

 11.59
 %

 7.00
 %

 -

 16,979

 16,565

 16,979

 1.4
 %

 11.59
 %

 7.00
 %

 -

 3,104

 3,041

 3,104

 0.3
 %

 11.59
 %

 7.00
 %

 -

 6,542

 6,447

 6,542

 0.5
 %

 11.59
 %

 7.00
 %

 -

 3,541

 3,467

 3,541

 0.3
 %

 11.59
 %

 7.00
 %

 -

 0.0
 %

 Dusk Acquisition II Corporation (Motors & Armatures, Inc. – MARS)

 10.33
 %

 6.00
 %

 -

 7/12/2029

 26,133

 25,663

 26,133

 2.2
 %

 10.33
 %

 6.00
 %

 -

 7/12/2029

 13,801

 13,500

 13,801

 1.2
 %

 Energy Acquisition LP (Electrical Components International, Inc. - ECI)

 11.28
 %

 6.50
 %

 -

 5/10/2029

 26,149

 25,672

 26,541

 2.2
 %

 11.28
 %

 6.50
 %

 -

 5/11/2026

 -

 -

 -

 0.0
 %

 Engineered Fastener Company, LLC (EFC International)

 10.98
 %

 6.50
 %

 -

 23,366

 22,986

 23,471

 2.0
 %

 Genuine Cable Group, LLC

 10.21
 %

 5.75
 %

 -

 11/1/2026

 28,763

 28,285

 28,691

 2.4
 %

 10.21
 %

 5.75
 %

 -

 11/1/2026

 5,450

 5,348

 5,436

 0.5
 %

 F- 15

 Kayne

 As

 Date

Par

 Fair
 Value

 I.D. Images Acquisition, LLC

 10.11
 %

 5.75
 %

 -

 5,652

 5,572

 5,652

 0.5
 %

 10.11
 %

 5.75
 %

 -

 7,854

 7,792

 7,854

 0.7
 %

 10.11
 %

 5.75
 %

 -

 4,474

 4,423

 4,474

 0.4
 %

 10.11
 %

 5.75
 %

 -

 1,032

 1,024

 1,032

 0.1
 %

 10.11
 %

 5.75
 %

 -

 2,459

 2,407

 2,459

 0.2
 %

 10.11
 %

 5.75
 %

 -

 -

 -

 -

 0.0
 %

 Krayden Holdings, Inc.

 9.11
 %

 4.75
 %

 -

 -

 -

 -

 0.0
 %

 9.11
 %

 4.75
 %

 -

 -

 -

 -

 0.0
 %

 9.11
 %

 4.75
 %

 -

 9,395

 9,110

 9,395

 0.8
 %

 OAO Acquisitions, Inc. (BearCom)

 9.98
 %

 5.50
 %

 -

 21,210

 20,932

 21,210

 1.8
 %

 9.87
 %

 5.50
 %

 -

 0.1
 %

 9.87
 %

 5.50
 %

 -

 12/27/2025

 4,498

 4,420

 4,498

 0.4
 %

 9.87
 %

 5.50
 %

 -

 -

 -

 -

 0.0
 %

 Univar (Windsor Holdings LLC)

 (8)

 7.86
 %

 3.50
 %

 -

 8/1/2030

 9,960

 10,018

 10,065

 0.8
 %

 Workholding US Holdings, LLC (Forkardt Hardinge)

 10.13
 %

 5.50
 %

 -

 10/23/2029

 7,377

 7,208

 7,377

 0.6
 %

 10.09
 %

 5.50
 %

 -

 10/23/2029

 0.1
 %

 300,539

 295,169

 301,066

 25.4
 %

 Wireless telecommunication services

 Centerline Communications, LLC

 12.12
 %

 6.00
 %

 1.50
 %

 5,884

 5,770

 5,413

 0.5
 %

 12.12
 %

 6.00
 %

 1.50
 %

 0.1
 %

 12.12
 %

 6.00
 %

 1.50
 %

 9,109

 8,984

 8,380

 0.7
 %

 12.12
 %

 6.00
 %

 1.50
 %

 7,066

 6,984

 6,501

 0.5
 %

 12.15
 %

 6.00
 %

 1.50
 %

 6,220

 6,140

 5,722

 0.5
 %

 12.00
 %

 6.00
 %

 1.50
 %

 1,824

 1,796

 1,678

 0.1
 %

 12.16
 %

 6.00
 %

 1.50
 %

 1,023

 1,000

 0.1
 %

 31,980

 31,509

 29,489

 2.5
 %

 Total Debt Investments

 1,984,672

 1,952,708

 1,972,406

 166.3
 %

 F- 16

 As

 Acquisition
 Date

 Number of
 Shares/Units

 Cost

 Fair
 Value

 Equity Investments(10)(13)

 Vehicle Accessories, Inc. - Class A common

 (14)

 2/25/2022

 128,250

 -

 0.1
 %

 Vehicle Accessories, Inc. - preferred

 (14)

 2/25/2022

 0.0
 %

 0.1
 %

 Building Products

 US Anchors Investor, LP - preferred

 (15)

 7/15/2024

 500,000

 0.0
 %

 US Anchors Investor, LP - Class A Common

 (15)

 7/15/2024

 500,000

 -

 -

 0.0
 %

 0.0
 %

 American Equipment Holdings LLC - Class A units

 (16)

 4/8/2022

 0.1
 %

 Arborworks Acquisition LLC - Class A preferred units

 (15)

 11/6/2023

 21,716

 9,179

 11,114

 0.9
 %

 Arborworks Acquisition LLC - Class B preferred units

 (15)

 11/6/2023

 21,716

 -

 -

 0.0
 %

 Arborworks Acquisition LLC - Class A common units

 (15)

 11/6/2023

 2,604

 -

 -

 0.0
 %

 Bloomington Holdings, LP (BW Fusion) - Class A1 common units

 (15)

 11/5/2024

 0.0
 %

 BLP Buyer, Inc. (Bishop Lifting Products) - Class A common

 (17)

 2/1/2022

 582,469

 1,097

 0.1
 %

 10,615

 13,281

 1.1
 %

 Robinette Company Acquisition, LLC - Class A common units

 (15)

 5/10/2024

 -

 0.0
 %

 Robinette Company Acquisition, LLC - Class A preferred units

 (15)

 5/10/2024

 0.1
 %

 0.1
 %

 BC CS 2, L.P. (Cuisine Solutions)

 (6)(11)

 7/8/2022

 2,000,000

 2,000

 3,062

 0.3
 %

 CCFF Parent, LLC (California Custom Fruits & Flavors, LLC) - Class A-1 units

 (15)

 2/26/2024

 0.1
 %

 City Line Distributors, LLC - Class A units

 (15)

 8/31/2023

 669,866

 0.0
 %

 Gulf Pacific Holdings, LLC - Class A common

 (16)

 9/30/2022

 0.0
 %

 Gulf Pacific Holdings, LLC - Class C common

 (16)

 9/30/2022

 -

 -

 0.0
 %

 IF&P Foods, LLC (FreshEdge) - Class A preferred

 (16)

 10/3/2022

 0.1
 %

 IF&P Foods, LLC (FreshEdge) - Class B common

 (16)

 10/3/2022

 -

 -

 0.0
 %

 ML Buyer, LLC (Mama Lycha Foods, LLC) - Class A units

 (15)

 9/9/2024

 0.0
 %

 Siegel Parent, LLC - Common

 (18)

 12/29/2021

 -

 0.0
 %

 Siegel Egg Co., LLC - Convertible Note

 (18)

 1/19/2024

 0.0
 %

 4,732

 5,736

 0.5
 %

 LSL Industries, LLC (LSL Healthcare) - common

 (16)

 11/1/2022

 7,500

 0.0
 %

 NMA Super Holdings, LLC (BW Fusion) - Class A membership interests

 (15)

 12/18/2024

 1,000,000

 1,000

 1,000

 0.1
 %

 TG Parent Newco LLC (Trademark Global LLC) – common

 (10)(12)(15)

 9/16/2024

 -

 -

 0.0
 %

 Sundance Direct Holdings, Inc. - common

 10/27/2023

 21,479

 -

 -

 0.0
 %

 American Soccer Company, Incorporated (SCORE) - common

 (18)

 7/20/2022

 1,000,000

 1,000

 0.0
 %

 Total Equity Investments

 19,347

 1.9
 %

 Total Debt and Equity Investments

 1,972,055

 1,995,143

 168.2
 %

 Number of Shares

 Cost

 Percentage of Net Assets

 Short-Term Investments

 Morgan Stanley Institutional Liquidity Fund, Institutional Class, 4.24%

 (19)

 48,683,210

 4.1
 %

 Total Short-Term Investments

 48,683,210

 4.1
 %

 Total Investments

 $
 2,020,738

 $
 2,043,826

 172.3
 %

 Liabilities in Excess of Other Assets

 ( 857,484
)

 ( 72.3
)%

 $
 1,186,342

 100.0
 %

 (1)
 As of December 31, 2024, unless otherwise noted, investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. As of December 31, 2024, the total value of the Company's non-controlled, non-affiliated investments was $1,982,947.

 See

 F- 17

 Kayne

 As

 (2)
 Unless otherwise noted, security is a Level 3 holding. As of December 31, 2024, the aggregate value of Level 3 securities held by the Company was $1,741,919. See Note 5 – Fair Value.

 (3)
 Debt investments are pledged to the Company's credit facilities, and a single debt investment may be divided into parts that are individually pledged to separate credit facilities.

 (4)
 Unless otherwise noted, all loans contain a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate ("SOFR") (which can include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

 (5)
 The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

 (6)
 Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2024, 9.0% of the Company's total assets were in non-qualifying investments.

 (7)
 The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the "last-out" portion is at a greater risk of loss. Certain lenders represent a "first out" portion of the investment and have priority to the "last-out" portion with respect to payments of principal and interest.

 (8)
 Security is a Level 2 holding. As of December 31, 2024, the aggregate value of Level 2 securities held by the Company was $253,224. See Note 5 – Fair Value.

 (9)
 Debt investment on non-accrual status as of December 31, 2024.

 (10)
 Non-income producing investment.

 (11)
 The Company has a senior secured loan in an investment vehicle (BC CS 2, L.P.) that is collateralized by a preferred stock investment in Cuisine Solutions, Inc. This investment is characterized as subordinated debt.

 (12)
 In September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing term loan and revolver became a restructured term loan and revolver and no debt was converted to equity. The Company did receive new common units in TG Parent Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities as a whole own 20.77%). As of December 31, 2024, the amortized cost basis of Trademark Global LLC was $15,438 and was 0.8% of the total amortized cost basis of our debt investments of $1,952,708. The restructure extended the maturity from July 30, 2024 to July 30, 2030; the rate changed from S + 5.75% to S + 8.50%.

 See

 F- 18

 Kayne

 As

 As
defined in the 1940 Act, the Company is deemed to be an "affiliated person" of this portfolio company as the Company owns
more than 5% but less than 25% of the portfolio company's voting securities or has the power to exercise control over management
or policies of such portfolio company, including through a management agreement ("non-controlled affiliate"). As of December
31, 2024, the total value of the Company's non-controlled affiliated investments was $12,196. Transactions related to the Company's
investment in a non-controlled affiliate for the period December 31, 2024 were as follows:

 Investment (1)

 Value at 12/30/2023

 Gross Additions (a)

 Gross Reductions (b)

 Net Change in Unrealized Gains(Losses)

 Value at 12/31/2024

 Interest and PIK Income

 Dividend Income

 Other Income

 Trademark Global, LLC

 $
 13,129

 $
 1,035

 $
 -

 $
 (1,968
)

 $
 12,196

 $

 $
 -

 $
 -

 TG Parent Newco LLC (Trademark Global LLC)

 -

 -

 -

 -

 -

 -

 -

 -

 Total

 $
 13,129

 $
 1,035

 $
 -

 $
 (1,968
)

 $
 12,196

 $

 $
 -

 $
 -

 (a)
 Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind ("PIK") interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this controlled affiliated category from a different category.

 (b)
 Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.

 (13)
 Security is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), and may be deemed to be "restricted securities" under the Securities Act.

 (14)
 The Company owns 0.19% of the common equity and 0.43% of the preferred equity of Vehicle Accessories, Inc.

 (15)
 KABDC Corp, LLC, a wholly owned subsidiary of the Company, owns common and/or preferred equity of Arborworks Acquisition LLC, Bloomington Holdings, LP (BW Fusion), City Line Distributors, LLC, CCFF Parent, LLC (California Custom Fruits & Flavors, LLC), ML Buyer, LLC (Mama Lycha Foods, LLC), NMA Super Holdings, LLC (Neuromonitoring Associates), Robinette Company Acquisition, LLC, TG Parent Newco LLC (Trademark Global LLC) and US Anchors, LP (Mechanical Plastics Corp.).

 (16)
 The Company owns 33.46% of a pass-through, taxable limited liability company, KSCF IV Equity Aggregator Blocker, LLC (the "Aggregator Blocker"), which holds the Company's equity investments in American Equipment Holdings LLC, Gulf Pacific Holdings, LLC, IF&P Foods, LLC (FreshEdge) and LSL Industries, LLC (LSL Healthcare). Through the Company's ownership of the Aggregator Blocker, the Company owns the respective units of each company listed above in the Schedule of Investments.

 (17)
 The Company owns 0.53% of the common equity BLP Buyer, Inc. (Bishop Lifting Products).

 (18)
 The Company owns 17.15% of a pass-through limited liability company, KSCF IV Equity Aggregator, LLC (the "Aggregator"), which holds the Company's equity investments in Siegel Parent, LLC and American Soccer Company, Incorporated (SCORE). Through the Company's ownership of the Aggregator, the Company owns the respective units of each company listed above in the Schedule of Investments.

 (19)
 The indicated rate is the yield as of December 31, 2024.

 See

 F- 19

 Kayne

 As

 Fair

 Portfolio Company (1)

 Investment (2)

 Date

 Par

 Cost (3)(4)

 Value

 Debt and Equity Investments

 Private Credit Investments (5)

 Basel U.S. Acquisition Co., Inc. (IAC)

 (6)

 11.51% (S + 6.00%)

 $
 -

 $
 -

 $
 -

 0.0
 %

 11.51% (S + 6.00%)

 18,494

 18,066

 18,679

 2.7
 %

 Fastener Distribution Holdings, LLC

 12.00% (S + 6.50%)

 10/1/2025

 20,494

 20,090

 20,494

 3.0
 %

 12.00% (S + 6.50%)

 10/1/2025

 9,098

 9,009

 9,098

 1.3
 %

 Precinmac (US) Holdings, Inc.

 8/31/2027

 5,352

 5,281

 5,272

 0.8
 %

 8/31/2027

 1,102

 1,087

 1,086

 0.2
 %

 12.63% (S + 7.00%)

 12/22/2028

 31,208

 30,430

 31,208

 4.6
 %

 85,748

 83,963

 85,837

 12.6
 %

 Speedstar Holding LLC

 12.79% (S + 7.25%)

 1/22/2027

 6,012

 5,925

 5,982

 0.9
 %

 12.78% (S + 7.25%)

 1/22/2027

 0.0
 %

 Vehicle Accessories, Inc.

 10.72% (S + 5.25%)

 21,011

 20,770

 21,011

 3.1
 %

 10.72% (S + 5.25%)

 -

 -

 -

 0.0
 %

 27,294

 26,960

 27,263

 4.0
 %

 Biotechnology

 Alcami Corporation (Alcami)

 12.46% (S + 7.00%)

 6/30/2024

 -

 -

 -

 0.0
 %

 12.46% (S + 7.00%)

 -

 -

 -

 0.0
 %

 12.46% (S + 7.00%)

 11,618

 11,197

 11,850

 1.7
 %

 11,618

 11,197

 11,850

 1.7
 %

 Building products

 Ruff Roofers Buyer, LLC

 11.08% (S + 5.75%)

 11/19/2029

 7,186

 6,910

 7,186

 1.1
 %

 11.08% (S + 5.75%)

 11/17/2024

 -

 -

 -

 0.0
 %

 11.08% (S + 5.75%)

 11/17/2025

 -

 -

 -

 0.0
 %

 11.08% (S + 5.75%)

 11/19/2029

 -

 -

 -

 0.0
 %

 Eastern Wholesale Fence

 13.50% (S + 8.00%)

 20,271

 19,875

 20,069

 2.9
 %

 13.50% (S + 8.00%)

 0.0
 %

 27,825

 27,149

 27,620

 4.0
 %

 Capital markets

 Atria Wealth Solutions, Inc.

 5/31/2024

 5,087

 5,080

 5,087

 0.7
 %

 5/31/2024

 3,218

 3,211

 3,218

 0.5
 %

 8,305

 8,291

 8,305

 1.2
 %

 Chemicals

 FAR Technologies Holdings, Inc.(f/k/a Cyalume Technologies Holdings, Inc.)

 10.61% (S + 5.00%)

 8/30/2024

 1,274

 1,271

 1,274

 0.2
 %

 Fralock Buyer LLC

 4/17/2024

 11,654

 11,628

 11,567

 1.7
 %

 4/17/2024

 0.1
 %

 Shrieve Chemical Company, LLC

 11.90% (S + 6.38%)

 12/2/2024

 8,720

 8,628

 8,720

 1.3
 %

 USALCO, LLC

 10/19/2027

 18,989

 18,684

 18,989

 2.8
 %

 10/19/2026

 1,049

 1,021

 1,049

 0.1
 %

 42,135

 41,681

 42,045

 6.2
 %

 Advanced Environmental Monitoring

 (7)

 12.01% (S + 6.50%)

 1/29/2026

 10,158

 9,994

 10,158

 1.5
 %

 Allentown, LLC

 7,586

 7,535

 7,586

 1.1
 %

 1,370

 1,354

 1,370

 0.2
 %

 13.50% (P + 5.00%)

 0.0
 %

 11.86% (S + 6.00%)

 20,045

 19,812

 19,945

 2.9
 %

 11.88% (S + 6.00%)

 6,239

 6,167

 6,208

 0.9
 %

 11.81% (S + 6.00%)

 4,969

 4,905

 4,944

 0.7
 %

 11.74% (S + 6.00%)

 2,736

 2,672

 2,723

 0.4
 %

 (8)(9)(10)

 11/6/2028

 4,688

 4,688

 4,688

 0.7
 %

 11/6/2028

 1,253

 1,253

 1,253

 0.2
 %

 BLP Buyer, Inc. (Bishop Lifting Products)

 11.11% (S + 5.75%)

 26,099

 25,549

 26,099

 3.8
 %

 11.11% (S + 5.75%)

 12/22/2025

 -

 -

 -

 0.0
 %

 11.11% (S + 5.75%)

 0.0
 %

 Gusmer Enterprises, Inc.

 12.47% (S + 7.00%)

 4,747

 4,682

 4,735

 0.7
 %

 12.47% (S + 7.00%)

 7,951

 7,798

 7,931

 1.2
 %

 12.47% (S + 7.00%)

 -

 -

 -

 0.0
 %

 PMFC Holding, LLC

 13.02% (S + 7.50%)

 7/31/2025

 5,561

 5,427

 5,561

 0.8
 %

 13.03% (S + 7.50%)

 7/31/2025

 2,789

 2,787

 2,789

 0.4
 %

 13.03% (S + 7.50%)

 7/31/2025

 0.1
 %

 Regiment Security Partners LLC

 13.52% (S + 8.00%)

 6,383

 6,309

 6,383

 1.0
 %

 13.52% (S + 8.00%)

 2,609

 2,588

 2,609

 0.4
 %

 13.52% (S + 8.00%)

 1,448

 1,427

 1,448

 0.2
 %

 117,686

 115,924

 117,485

 17.2
 %

 See

 F- 20

 Kayne

 As

 Fair

 Portfolio Company (1)

 Investment (2)

 Date

 Par

 Cost (3)(4)

 Value

 Carton Packaging Buyer, Inc. (Century Box)

 11.39% (S + 6.00%)

 10/30/2028

 24,261

 23,605

 24,262

 3.6
 %

 11.39% (S + 6.00%)

 10/30/2028

 -

 -

 -

 0.0
 %

 Drew Foam Companies, Inc.

 12.75% (S + 7.25%)

 11/5/2025

 7,052

 6,997

 6,999

 1.0
 %

 12.80% (S + 7.25%)

 11/5/2025

 20,045

 19,789

 19,895

 2.9
 %

 FCA, LLC (FCA Packaging)

 11.90% (S + 6.50%)

 18,673

 18,419

 19,047

 2.8
 %

 11.90% (S + 6.50%)

 -

 -

 -

 0.0
 %

 Innopak Industries, Inc.

 11.71% (S + 6.25%)

 3/5/2027

 28,224

 27,564

 28,224

 4.1
 %

 98,255

 96,374

 98,427

 14.4
 %

 Diversified telecommunication services

 Network Connex (f/k/a NTI Connect, LLC)

 11.00% (S + 5.50%)

 1/31/2026

 5,195

 5,140

 5,196

 0.8
 %

 5,195

 5,140

 5,196

 0.8
 %

 BC CS 2, L.P. (Cuisine Solutions)

 (6)(11)

 13.55% (S + 8.00%)

 7/8/2028

 21,555

 21,063

 21,555

 3.2
 %

 11.50% (S + 6.00%)

 29,564

 28,973

 29,564

 4.3
 %

 2,938

 2,812

 2,938

 0.4
 %

 City Line Distributors, LLC

 8,895

 8,576

 8,895

 1.3
 %

 3/3/2025

 -

 -

 -

 0.0
 %

 -

 -

 -

 0.0
 %

 Gulf Pacific Holdings, LLC

 11.25% (S + 5.75%)

 20,180

 19,847

 20,079

 2.9
 %

 11.38% (S + 5.75%)

 1,701

 1,618

 1,693

 0.2
 %

 11.29% (S + 5.75%)

 2,697

 2,602

 2,683

 0.4
 %

 11.07% (S + 5.63%)

 10/3/2028

 27,245

 26,684

 26,904

 4.0
 %

 11.48% (S + 6.00%)

 10/3/2028

 0.0
 %

 11.07% (S + 5.63%)

 10/3/2028

 4,045

 3,969

 3,994

 0.6
 %

 10.91% (S + 5.63%)

 10/3/2028

 1,759

 1,690

 1,737

 0.3
 %

 J&K Ingredients, LLC

 11.63% (S + 6.25%)

 11/16/2028

 11,581

 11,295

 11,581

 1.7
 %

 11.99% (S + 6.50%)

 12/29/2026

 15,466

 15,290

 14,616

 2.1
 %

 11.99% (S + 6.50%)

 12/29/2026

 2,594

 2,557

 2,451

 0.4
 %

 Worldwide Produce Acquisition, LLC

 11.60% (S + 6.25%)

 0.1
 %

 11.60% (S + 6.25%)

 4/18/2024

 -

 -

 -

 0.0
 %

 11.60% (S + 6.25%)

 0.0
 %

 11.60% (S + 6.25%)

 2,860

 2,786

 2,832

 0.4
 %

 154,125

 150,750

 152,556

 22.3
 %

 Brightview, LLC

 12,870

 12,855

 12,645

 1.9
 %

 1,719

 1,714

 1,689

 0.3
 %

 0.1
 %

 Guardian Dentistry Partners

 8/20/2026

 8,057

 7,929

 8,057

 1.2
 %

 8/20/2026

 15,682

 15,464

 15,682

 2.3
 %

 8/20/2026

 5,808

 5,808

 5,808

 0.9
 %

 Guided Practice Solutions: Dental, LLC (GPS)

 11.72% (S + 6.25%)

 12/29/2025

 6,475

 6,056

 6,475

 0.9
 %

 Light Wave Dental Management LLC

 12.35% (S + 7.00%)

 2,181

 2,099

 2,181

 0.3
 %

 12.35% (S + 7.00%)

 22,423

 21,834

 22,423

 3.3
 %

 SGA Dental Partners Holdings, LLC

 11.67% (S + 6.00%)

 12/30/2026

 11,828

 11,683

 11,828

 1.7
 %

 12/30/2026

 1,681

 1,563

 1,681

 0.2
 %

 11.67% (S + 6.00%)

 12/30/2026

 11,024

 10,856

 11,024

 1.6
 %

 11.67% (S + 6.00%)

 4/19/2024

 -

 -

 -

 0.0
 %

 11.67% (S + 6.00%)

 12/30/2026

 -

 -

 -

 0.0
 %

 100,522

 98,635

 100,254

 14.7
 %

 See

 F- 21

 Kayne

 As

 Fair

 Portfolio Company (1)

 Investment (2)

 Date

 Par

 Cost (3)(4)

 Value

 12.15% (S + 6.50%)

 19,529

 18,911

 19,334

 2.8
 %

 12.15% (S + 6.50%)

 11/3/2024

 -

 -

 -

 0.0
 %

 12.15% (S + 6.50%)

 -

 -

 -

 0.0
 %

 19,529

 18,911

 19,334

 2.8
 %

 Household durables

 Curio Brands, LLC

 17,173

 16,859

 16,830

 2.5
 %

 -

 -

 -

 0.0
 %

 4,121

 4,121

 4,039

 0.6
 %

 21,294

 20,980

 20,869

 3.1
 %

 Household products

 Home Brands Group Holdings, Inc. (ReBath)

 10.29% (S + 4.75%)

 11/8/2026

 17,052

 16,826

 16,967

 2.5
 %

 10.29% (S + 4.75%)

 11/8/2026

 -

 -

 -

 0.0
 %

 17,052

 16,826

 16,967

 2.5
 %

 Insurance

 Allcat Claims Service, LLC

 7,717

 7,551

 7,717

 1.1
 %

 21,605

 21,266

 21,605

 3.2
 %

 -

 -

 -

 0.0
 %

 29,322

 28,817

 29,322

 4.3
 %

 Domain Information Services Inc. (Integris)

 11.29% (S + 5.75%)

 9/30/2025

 20,444

 20,122

 20,342

 3.0
 %

 12.22% (S + 6.50%)

 7/26/2027

 31,650

 31,140

 31,492

 4.6
 %

 12.22% (S + 6.50%)

 7/26/2027

 -

 -

 -

 0.0
 %

 52,094

 51,262

 51,834

 7.6
 %

 BCI Burke Holding Corp.

 11.11% (S + 5.50%)

 12/14/2027

 15,219

 15,603

 2.3
 %

 11.11% (S + 5.50%)

 12/14/2027

 0.1
 %

 11.11% (S + 5.50%)

 6/14/2027

 -

 -

 -

 0.0
 %

 VENUplus, Inc. (f/k/a CTM Group, Inc.)

 12.29% (S + 6.75%)

 4,420

 4,325

 4,398

 0.6
 %

 MacNeill Pride Group

 11.86% (S + 6.25%)

 8,254

 8,198

 8,151

 1.2
 %

 11.86% (S + 6.25%)

 3,277

 3,221

 3,236

 0.5
 %

 11.86% (S + 6.25%)

 -

 -

 -

 0.0
 %

 Trademark Global LLC

 12.97% (S +7.50%, 1.50% is PIK)

 7/30/2024

 11,798

 11,776

 10,736

 1.6
 %

 12.97% (S +7.50%, 1.50% is PIK)

 7/30/2024

 2,630

 2,627

 2,393

 0.3
 %

 46,330

 45,911

 45,103

 6.6
 %

 Machinery

 Pennsylvania Machine Works, LLC

 3/6/2027

 1,908

 1,896

 1,908

 0.3
 %

 PVI Holdings, Inc

 12.16% (S + 6.77%)

 1/18/2028

 23,895

 23,602

 24,074

 3.5
 %

 Techniks Holdings, LLC / Eppinger Holdings Germany GMBH

 (6)

 12.75% (S + 7.25%)

 2/4/2025

 24,812

 24,468

 24,688

 3.6
 %

 11.80% (S + 6.25%)

 2/4/2025

 1,050

 1,003

 1,045

 0.2
 %

 51,665

 50,969

 51,715

 7.6
 %

 DRS Holdings III, Inc. (Dr. Scholl's)

 11.71% (S + 6.25%)

 11/1/2025

 11,004

 10,954

 11,004

 1.6
 %

 11.71% (S + 6.25%)

 11/1/2025

 -

 -

 -

 0.0
 %

 PH Beauty Holdings III, Inc.

 10.65% (S + 5.00%)

 9/28/2025

 9,442

 9,278

 9,183

 1.3
 %

 13.10% (S + 7.75%)

 5/1/2029

 19,900

 19,351

 20,298

 3.0
 %

 40,346

 39,583

 40,485

 5.9
 %

 Pharmaceuticals

 Foundation Consumer Brands

 2/12/2027

 6,781

 6,744

 6,832

 1.0
 %

 2/12/2027

 -

 -

 -

 0.0
 %

 6,781

 6,744

 6,832

 1.0
 %

 See

 F- 22

 Kayne

 As

 Fair

 Percentage

 Portfolio Company (1)

 Investment (2)

 Date

 Par

 Cost (3)(4)

 Value

 of Net Assets

 Professional services

 4 Over International, LLC

 12.46% (S + 7.00%)

 12/7/2026

 19,438

 18,757

 19,438

 2.8
 %

 DISA Holdings Corp. (DISA)

 10.84% (S + 5.50%)

 3,714

 3,578

 3,714

 0.5
 %

 10.84% (S + 5.50%)

 0.1
 %

 10.84% (S + 5.50%)

 22,177

 21,625

 22,177

 3.2
 %

 Universal Marine Medical Supply International, LLC (Unimed)

 13.01% (S + 7.50%)

 12/5/2027

 13,527

 13,253

 13,527

 2.0
 %

 13.00% (S + 7.50%)

 12/5/2027

 2,544

 2,494

 2,544

 0.4
 %

 61,792

 60,054

 61,792

 9.0
 %

 Software

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 11.80% (S + 6.25%)

 7/22/2027

 34,650

 33,736

 34,650

 5.1
 %

 Sundance Holdings Group, LLC

 (7)

 15.03% (S + 9.50%, 1.50% is PIK)

 5/1/2024

 9,210

 9,022

 8,911

 1.3
 %

 15.03% (S + 9.50%, 1.50% is PIK)

 5/1/2024

 -

 -

 -

 0.0
 %

 9,210

 9,022

 8,911

 1.3
 %

 12.75% (S + 7.25%)

 7/20/2027

 29,816

 29,317

 29,145

 4.3
 %

 12.75% (S + 7.25%)

 7/20/2027

 2,128

 2,067

 2,080

 0.3
 %

 BEL USA, LLC

 12.53% (S + 7.00%)

 6/2/2026

 5,804

 5,774

 5,804

 0.8
 %

 12.53% (S + 7.00%)

 6/2/2026

 0.0
 %

 YS Garments, LLC

 13.00% (S + 7.50%)

 8/9/2026

 6,849

 6,758

 6,729

 1.0
 %

 44,693

 44,011

 43,854

 6.4
 %

 BCDI Meteor Acquisition, LLC (Meteor)

 12.45% (S + 7.00%)

 6/29/2028

 16,297

 15,955

 16,297

 2.4
 %

 Broder Bros., Co.

 11.61% (S+ 6.00%)

 12/4/2025

 4,640

 4,439

 4,640

 0.7
 %

 CGI Automated Manufacturing, LLC

 12.61% (S + 7.00%)

 20,510

 19,849

 20,459

 3.0
 %

 12.61% (S + 7.00%)

 6,681

 6,559

 6,664

 1.0
 %

 12.61% (S + 7.00%)

 3,616

 3,510

 3,607

 0.5
 %

 12.61% (S + 7.00%)

 0.0
 %

 EIS Legacy, LLC

 11.24% (S + 5.75%)

 18,079

 17,838

 18,079

 2.6
 %

 11.27% (S + 5.75%)

 9,666

 9,356

 9,666

 1.4
 %

 11.24% (S + 5.75%)

 4/20/2025

 -

 -

 -

 0.0
 %

 11.24% (S + 5.75%)

 -

 -

 -

 0.0
 %

 Engineered Fastener Company, LLC (EFC International)

 12.00% (S + 6.50%)

 23,604

 23,113

 23,899

 3.5
 %

 Genuine Cable Group, LLC

 11/1/2026

 29,057

 28,336

 28,984

 4.2
 %

 11/1/2026

 5,506

 5,347

 5,492

 0.8
 %

 I.D. Images Acquisition, LLC

 11.75% (S + 6.25%)

 13,651

 13,538

 13,651

 2.0
 %

 11.75% (S + 6.25%)

 2,486

 2,450

 2,486

 0.4
 %

 11.70% (S + 6.25%)

 4,522

 4,457

 4,522

 0.7
 %

 11.75% (S + 6.25%)

 1,043

 1,033

 1,043

 0.2
 %

 11.75% (S + 6.25%)

 -

 -

 -

 0.0
 %

 Krayden Holdings, Inc.

 11.20% (S + 5.75%)

 3/1/2025

 -

 -

 -

 0.0
 %

 11.20% (S + 5.75%)

 3/1/2025

 -

 -

 -

 0.0
 %

 11.20% (S + 5.75%)

 -

 -

 -

 0.0
 %

 11.20% (S + 5.75%)

 9,491

 9,099

 9,491

 1.4
 %

 OAO Acquisitions, Inc. (BearCom)

 11.61% (S + 6.25%)

 21,370

 20,979

 21,370

 3.1
 %

 11.61% (S + 6.25%)

 12/27/2025

 -

 -

 -

 0.0
 %

 11.61% (S + 6.25%)

 -

 -

 -

 0.0
 %

 United Safety & Survivability Corporation (USSC)

 9/30/2027

 12,436

 12,147

 12,436

 1.8
 %

 9/28/2027

 1,607

 1,490

 1,607

 0.3

 %

 9/30/2027

 3,160

 3,110

 3,160

 0.5
 %

 9/30/2027

 0.1
 %

 208,619

 203,709

 208,750

 30.6
 %

 Wireless telecommunication services

 Centerline Communications, LLC

 14,945

 14,751

 13,936

 2.0
 %

 7,044

 6,954

 6,568

 1.0
 %

 6,202

 6,112

 5,783

 0.9
 %

 1,800

 1,778

 1,679

 0.2
 %

 1,020

 0.1
 %

 31,011

 30,591

 28,918

 4.2
 %

 Total Private Credit Debt Investments

 1,353,096

 1,327,190

 197.1
 %

 See

 F- 23

 Kayne

 As

 Number
 of
 Shares/Units

 Cost

 Fair

 Value

 Equity Investments(9)

 Vehicle
 Accessories, Inc. - Class A common

 (12)

 128,250

 -

 0.0
 %

 Vehicle
 Accessories, Inc. - preferred

 (12)

 0.1
 %

 378,250

 0.1
 %

 Commercial
 services & supplies

 American
 Equipment Holdings LLC - Class A units

 (13)

 0.1
 %

 BLP Buyer,
 Inc. (Bishop Lifting Products) - Class A common

 (14)

 582,469

 1,200

 0.1
 %

 Arborworks
 Acquisition LLC – Class A preferred units

 (10)

 21,716

 9,179

 9,287

 1.4
 %

 Arborworks
 Acquisition LLC – Class B preferred units

 (10)

 21,716

 -

 -

 0.0
 %

 Arborworks
 Acquisition LLC – Class A common units

 (10)

 2,604

 -

 -

 0.0
 %

 628,931

 10,115

 10,995

 1.6
 %

 Food
 products

 BC CS
 2, L.P. (Cuisine Solutions)

 (6)(11)

 2,000,000

 2,000

 2,611

 0.4
 %

 City
 Line Distributors, LLC - Class A units

 (15)

 418,416

 0.1
 %

 Gulf
 Pacific Holdings, LLC - Class A common

 (13)

 0.0
 %

 Gulf
 Pacific Holdings, LLC - Class C common

 (13)

 -

 -

 0.0
 %

 IF&P
 Foods, LLC (FreshEdge) - Class A preferred

 (13)

 0.1
 %

 IF&P
 Foods, LLC (FreshEdge) - Class B common

 (13)

 -

 -

 0.0
 %

 Siegel
 Parent, LLC

 (16)

 0.0
 %

 2,420,666

 3,668

 4,195

 0.6
 %

 Healthcare
 equipment & supplies

 LSL
 Industries, LLC (LSL Healthcare)

 (13)

 7,500

 0.1
 %

 IT
 services

 Domain
 Information Services Inc. (Integris)

 0.0
 %

 Specialty
 retail

 Sundance
 Direct Holdings, Inc. - common

 21,479

 -

 -

 0.0
 %

 Textiles,
 apparel & luxury goods

 American
 Soccer Company, Incorporated (SCORE)

 (16)

 1,000,000

 1,000

 0.1
 %

 Total
 Private Equity Investments

 16,033

 2.5
 %

 Total
 Private Investments

 1,343,223

 199.6
 %

 Number
 of

 Fair

 Shares

 Cost

 Value

 Short-Term Investments

 First
 American Treasury Obligations Fund - Institutional Class Z, 5.21%

 (17)

 12,802,362

 1.9

 %

 Total
 Short-Term Investments

 12,802,362

 1.9

 %

 Total
 Investments

 $

 1,356,025

 $

 1,376,300

 201.5

 %

 Liabilities
 in Excess of Other Assets

 ( 693,244

)

 ( 101.5

)%

 Net
 Assets

 $

 100.0

 %

 (1)
 As of December 31, 2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.

 See

 F- 24

 Kayne

 As

 (2)
 Debt investments are pledged to the Company's credit facilities, and a single debt investment may be divided into parts that are individually pledged to separate credit facilities.

 (3)
 The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

 (4)
 As of December 31, 2023, the tax cost of the Company's investments approximates their amortized cost.

 (5)
 Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Funding Rate ("SOFR" or "S") (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or "P").

 (6)
 Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2023, 4.8% of the Company's total assets were in non-qualifying investments.

 (7)
 The Company may be entitled to receive additional interest as a result of an arrangement with other lenders in the syndication. In exchange for the higher interest rate, the "last-out" portion is at a greater risk of loss. Certain lenders represent a "first out" portion of the investment and have priority to the "last-out" portion with respect to payments of principal and interest.

 (8)
 Debt investment on non-accrual status as of December 31, 2023.

 (9)
 Non-income producing investment.

 (10)
 In November 2023, the Company completed a restructure of the investment in Arborworks Acquisition LLC whereby the existing term loan and revolver were restructured to a new term loan and preferred and common equity. KABDC Corp II, LLC, a wholly owned subsidiary of the Company, holds the preferred and common equity of Arborworks Acquisition LLC that the Company owns following this restructure.

 (11)
 The Company has a senior secured loan in an investment vehicle (BC CS 2, L.P.) that is collateralized by a preferred stock investment in Cuisine Solutions, Inc..

 (12)
 The Company owns 0.19% of the common equity and 0.43% of the preferred equity of Vehicle Accessories, Inc.

 (13)
 The Company owns 27.15% of a pass-through, taxable limited liability company, KSCF IV Equity Aggregator Blocker, LLC (the "Aggregator Blocker"), which holds the Company's equity investments in American Equipment Holdings LLC, Gulf Pacific Holdings, LLC, IF&P Foods, LLC (FreshEdge) and LSL Industries, LLC (LSL Healthcare). Through the Company's ownership of the Aggregator Blocker, the Company owns the respective units of each company listed above in the Schedule of Investments.

 (14)
 The Company owns 0.53% of the common equity BLP Buyer, Inc. (Bishop Lifting Products).

 (15)
 KABDC Corp, LLC, a wholly owned subsidiary of the Company, owns 0.62% of the common equity of City Line Distributors, LLC.

 (16)
 The Company owns 33.95% of a pass-through limited liability company, KSCF IV Equity Aggregator, LLC (the "Aggregator"), which holds the Company's equity investments in Siegel Parent, LLC and American Soccer Company, Incorporated (SCORE). The Aggregator's ownership of Siegel Parent, LLC is 1.1442%. Through the Company's ownership of the Aggregator, the Company owns the respective units of each company listed above in the Schedule of Investments.

 (17)
 The indicated rate is the yield as of December 31, 2023.

 See

 F- 25

 Note 1. Organization

 Organization

 Kayne Anderson BDC, Inc. (the "Company")
is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as
a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act").
In addition, for U.S. federal income tax purposes, the Company intends to qualify as a regulated investment company ("RIC")
under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

 The Company is a Delaware corporation formed to
make investments in middle-market companies and commenced operations on February 5, 2021.

 The Company is managed by KA Credit Advisors,
LLC (the "Advisor"), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P. ("Kayne Anderson"),
a prominent alternative investment management firm. The Advisor operates within Kayne Anderson's middle market private credit platform
("KAPC" or "Kayne Anderson Private Credit"). The Advisor is registered with the United States Securities and Exchange
Commission (the "SEC") under the Investment Advisory Act of 1940, as amended. Subject to the overall supervision of the Company's
board of directors (the "Board"), the Advisor is responsible for originating prospective investments, conducting research
and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments,
determining the value of the investments and monitoring its investments and portfolio companies on an ongoing basis. The Board consists
of seven directors, four of whom are independent.

 The Company's investment objective is to
generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.

 On May 24, 2024, the Company completed its initial
public offering ("IPO"), issuing 6,000,000 shares of its common stock at a public offering price of $ 16.63 per share. Net
of underwriting fees and offering expenses, the Company received net cash proceeds of $ 92,363. The Company's common stock began
trading on the New York Stock Exchange ("NYSE") under the ticker symbol "KBDC" on May 22, 2024.

 Prior to its IPO, the Company conducted private
offerings of its common stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933,
as amended (the "Securities Act"). At the closing of any private offering, each investor made a capital commitment to purchase
shares of its common stock pursuant to a subscription agreement entered into with the Company. From its initial closing of the private
offering (the "Initial Closing") on February 5, 2021 through its final capital call closing on April 2, 2024, the Company
issued shares of its common stock equal to the aggregate capital commitment of $ 1,046,928. Following the final closing on April 2, 2024,
the Company had no remaining undrawn capital commitments.

 F- 26

 Note 2. Significant Accounting Policies

 A. Basis of Presentation —the
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America ("GAAP"). The Company is an investment company and follows accounting and reporting guidance of the Financial Accounting
Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 — "Financial Services — Investment Companies."
In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of
the consolidated financial statements for the periods presented, have been included.

 B. Consolidation —As provided under
Regulation S-X and ASC Topic 946 – "Financial Services – Investment Companies", the Company will generally not
consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business consists
of providing services to the Company.

 Accordingly, the Company consolidated the accounts
of the Company's wholly-owned subsidiaries, Kayne Anderson BDC Financing, LLC, ("KABDCF"); Kayne Anderson BDC Financing
II, LLC ("KABDCF II"), and KABDC Corp, LLC in its consolidated financial statements. All significant intercompany balances
and transactions have been eliminated in consolidation. KABDC Corp, LLC is a Delaware LLC that has elected to be treated as a corporation
for U.S. tax purposes and was formed to facilitate compliance with the requirements to be treated as a RIC under the Code by holding (directly
or indirectly through subsidiaries) equity or equity related investments in portfolio companies organized as limited liability companies
or limited partnerships.

 C. Use of Estimates —the preparation
of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount
of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Actual results could differ materially from those estimates.

 D. Cash and Cash Equivalents —cash
and cash equivalents include short-term, liquid investments with an original maturity of three months or less and include money market
fund accounts. Cash equivalents, which are the Company's investments in money market fund accounts, are presented on the Company's
consolidated schedule of investments, and within investments on the Company's consolidated statement of assets and liabilities.

 E. Investment Valuation, Fair Value —the
Company conducts the valuation of its investments consistent with GAAP and the 1940 Act. The Company's investments will be valued
no less frequently than quarterly, in accordance with the terms of Topic 820 of the Financial Accounting Standards Board's Accounting
Standards Codification, Fair Value Measurement and Disclosures ("ASC 820").

 Pursuant to Rule 2a-5 under the 1940 Act,
the Board of Directors has designated the Advisor as the "valuation designee" to perform fair value determinations of the
Company's portfolio holdings, subject to oversight by and periodic reporting to the Board. The valuation designee performs fair
valuation of the Company's portfolio holdings in accordance with the Advisor's Valuation Program, as approved by the Board.

 Traded Investments (Level 1 or Level 2)

 Investments for which market quotations are readily
available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes,
broadly syndicated loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent
broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices
are stale or do not represent fair value in the judgment of the Company's Advisor, fair market value will be determined using the
Advisor's valuation process for investments that are privately issued or otherwise restricted as to resale.

 F- 27

 The Company may also invest, to a lesser extent,
in equity securities purchased in conjunction with debt investments. While the Company anticipates these equity securities to be issued
by privately held companies, the Company may hold equity securities that are publicly traded. Equity securities listed on any exchange
other than the NASDAQ Stock Market, Inc. ("NASDAQ") are valued, except as indicated below, at the last sale price on the business
day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most
recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity
securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market,
but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

 Non-Traded Investments (Level 3)

 Investments that are privately issued or otherwise
restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the
Company's Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price
that in the judgment of the Company's Advisor is stale or does not represent fair value, shall each be valued in a manner that most
fairly reflects fair value of the security on the valuation date. The Company expects that a significant majority of its investments will
be Level 3 investments. Unless otherwise determined by the Advisor, the following valuation process is used for the Company's
Level 3 investments:

 Valuation Designee. The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

 Valuation Firm. Quarterly, a third-party valuation firm engaged by the Advisor reviews the valuation methodologies and calculations employed for each of the Company's investments that the Advisor has placed on the "watch list" and approximately 25 % of the Company's remaining investments. The third-party valuation firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis. The quarterly report issued by the third-party valuation firm will provide positive assurance on the fair values of the investments reviewed.

 Oversight. The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act. The Audit Committee shall aid the Board in overseeing the Advisor's fair valuation of securities that are not publicly traded or for which current market values are not readily available. The Audit Committee shall meet quarterly to review the fair value determinations, processes and written reports of the Advisor as part of the Board's oversight responsibilities.

 Determination of fair value involves subjective judgments and estimates.
Accordingly, the notes to the Company's financial statements express the uncertainty with respect to the possible effect of such
valuations, and any change in such valuations, on the Company's financial statements.

 F. Interest Income Recognition —
Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind
("PIK") interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income
over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed
at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal
balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal.
The Company does not accrue PIK interest if, in the opinion of the Advisor, the portfolio company valuation indicates that the PIK interest
is not likely to be collectible. If the Company believes PIK is not expected to be realized, the investment generating PIK will be placed
on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed
through PIK interest income. Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status. To
maintain the Company's status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends
for the year the income was earned, even though the Company has not yet collected the cash. The amortized cost of investments represents
the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest. For the years ended December 31,
2024, 2023 and 2022, the Company had $ 2,706, $ 1,652 and $ 151, respectively, of PIK interest income included in interest income, which
represents 1.3 %, 1.0 % and 0.2 %, respectively, of aggregate interest income.

 F- 28

 Loans are generally placed on non-accrual status
when it has been determined that a significant impairment in the financial condition and ability of the borrower to repay principal and
interest has occurred and is expected to continue such that it is probable the collectability of full amount of the loan (principal and
interest) is doubtful. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. If cash payments
are received subsequent to a loan being placed on non-accrual status, these payments will first be applied to previously accrued but uncollected
interest, then to recover the principal. Additionally, any original issue discount and market discount are no longer accreted to interest
income as of the date the loan is placed on non-accrual status. Non-accrual loans are restored to accrual status when past due principal
and interest are paid or there is no longer a reasonable doubt that such principal or interest will be collected in full and, in the Company's
judgment, principal and interest are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient
collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection. As of December
31, 2024, the Company had three debt investments on non-accrual status, which compromised 1.6 % and 1.3 %, respectively, of total debt investments
at cost and fair value. As of December 31, 2023, the Company had one debt investment on non-accrual status,
which represented 0.4 % and 0.4 % of total debt investments at cost and fair value, respectively. As of December 31, 2022, the
Company did not have any debt investments in portfolio companies on non-accrual status.

 G. Debt Issuance Costs — Costs incurred
by the Company related to the issuance of its debt (credit facilities) are capitalized and amortized over the period the debt is outstanding.
The Company has classified the costs incurred to issue its credit facilities as a deduction from the carrying value of the credit facilities
on the Statement of Assets and Liabilities. For the purpose of calculating the Company's asset coverage ratios pursuant to the 1940
Act, deferred issuance costs are not deducted from the carrying value of debt or preferred stock.

 H. Dividends to Common Stockholders —
Dividends to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Company's
board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed
taxable income carried forward from the prior year for distribution in the current year. Net realized capital gains, if any, are generally
distributed, although the Company may decide to retain such capital gains for investment.

 I. Income Taxes — it is the
Company's intention to continue to be treated as and to qualify each year for special tax treatment afforded a RIC under the Code.
As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution
of earnings to stockholders, the Company will not be subject to U.S. federal income tax.

 The Company must pay distributions equal to 90 %
of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all
of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes. The Company
will be subject to federal income tax on any undistributed portion of income. For purposes of the distribution test, the Company may elect
to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year
if such distributions are declared before the due date of its tax return, including any extensions.

 All RICs are subject to a non-deductible 4% excise
tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax,
the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar
year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii)
undistributed amounts from previous years on which the Company paid no U.S. federal income tax. A distribution will be treated as paid
during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year,
payable to stockholders of record on a date during such months and paid by the Company no later than January of the following year. Any
such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year
the distributions are declared, rather than when the distributions are actually received.

 F- 29

 The Company's wholly owned subsidiary, KABDC Corp,
LLC has elected to be a corporation and is obligated to pay federal and state income tax on its taxable income. KABDC Corp, LLC invests
in partnerships and includes its allocable share of the taxable income or loss in computing its own taxable income. Deferred income taxes
reflect (i) taxes on unrealized gains (losses), which are attributable to the difference between fair value and tax cost basis, (ii) the
net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes and (iii) the net tax benefit of accumulated net operating and capital losses.

 To the extent KABDC Corp, LLC has a deferred tax asset, consideration
is given as to whether or not a valuation allowance is required. The need to establish a valuation allowance for deferred tax assets is
assessed periodically based on the Income Tax Topic of the FASB Accounting Standards Codification (ASC 740), that it is more likely than
not that some portion or all of the deferred tax asset will not be realized. In the assessment for a valuation allowance, consideration
is given to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among
other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of
statutory carryforward periods and the associated risk that certain loss carryforwards may expire unused.

 KABDC Corp, LLC may rely to some extent on information
provided by portfolio investments, which may not necessarily be timely, to estimate taxable income allocable to the units/shares of such
companies held in the portfolio and to estimate the associated current and/or deferred tax liability.

 The Company evaluates tax positions taken or expected
to be taken in the course of preparing its 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
reserved 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.

 J. Commitments and Contingencies —
in the normal course of business, the Company may enter into contracts that provide a variety of general indemnifications. Any exposure
to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist
or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

 K. Recent Accounting Pronouncements — In
November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU
2023-07"), which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating
decision maker (the "CODM"). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all of
the disclosures as required by ASC 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation
of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources
and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for the fiscal
years beginning after December 15, 2023, and interim periods beginning with the first quarter ended March 31, 2025. Early adoption is
permitted and retrospective adoption is required for all prior periods presented. The Company has adopted ASU 2023-07 effective December
31, 2024, and concluded that the application of this guidance did not have any material impact on its consolidated financial statements.
See Note 12 – Segment Reporting, for more information on the effects of the adoption of ASU 2023-07.

 Note 3. Agreements and Related Party Transactions

 A. Controlled / Affiliated Portfolio 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.
Under the 1940 Act, "non-affiliated investments" are defined as investments that are neither controlled investments nor affiliated
investments. Detailed information with respect to the Company's non-controlled, non-affiliated, and non-controlled, affiliated,
investments is contained in the accompanying consolidated financial statements, including the consolidated schedule of investments.

 B. Administration Agreement — on
February 5, 2021, the Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and will provide
or oversee the performance of its required administrative services and professional services rendered by others, which will include (but
are not limited to), accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation
and filing of its tax returns, and preparation of financial reports provided to its stockholders and filed with the SEC. On February 19,
2025, the Board approved an additional one-year term of the Administration Agreement through March 15, 2026.

 The Company will reimburse the Administrator for
its costs and expenses incurred in performing its obligations under the Administration Agreement, which may include, after completion
of its initial public offering, its allocable portion of office facilities, overhead, and compensation paid to or compensatory distributions
received by its officers (including our Chief Compliance Officer and Chief Financial Officer) and its respective staff who provide services
to the Company. As the Company reimburses the Administrator for its expenses, the Company will indirectly bear such cost. The Administration
Agreement may be terminated by either party with 60 days' written notice.

 C. Investment Advisory Agreement — on February 5,
2021, the Company entered into an Investment Advisory Agreement with its Advisor. Pursuant to the Investment Advisory Agreement with its
Advisor, the Company will pay its Advisor a fee for investment advisory and management services consisting of two components—a base
management fee and an incentive fee. The Advisor may, from time-to-time, grant waivers on the Company's obligations, including waivers
of the base management fee and/or incentive fee, under the Investment Advisory Agreement. The Investment Advisory Agreement may be terminated
by either party with 60 days' written notice. On February 19, 2025, the Board approved an additional one-year term of the Investment
Advisory Agreement from March 15, 2025 to March 15, 2026.

 F- 30

 In addition, on March 6, 2024, the Board approved
an amended and restated investment advisory agreement (the "Amended Investment Advisory Agreement") and a fee waiver agreement
(the "Fee Waiver Agreement") between the Company and the Advisor, which became effective upon the completion of the initial
public offering of the Company's shares of common stock on May 24, 2024 (the "IPO Date").

 The Amended Investment Advisory Agreement is materially
the same as the Investment Advisory Agreement except, following the IPO Date, the base management fee is calculated at an annual rate
of 1.00 % and the incentive fee on income is subject to a twelve-quarter lookback quarterly hurdle rate of 1.50 % as opposed to
a single quarter measurement and is subject to an Incentive Fee Cap (as defined below) based on the Company's Cumulative Pre-Incentive Fee
Net Return (as defined below). This lookback feature provides that the Advisor's income incentive fee may be reduced if the Company's
portfolio experiences aggregate write-downs or net capital losses during the applicable Trailing Twelve Quarters (as defined below).
Pursuant to the Fee Waiver Agreement, commencing on the IPO Date, the Advisor implemented waivers of (i) the income incentive fee
for three calendar quarters commencing the quarter the initial public offering was completed and (ii) a portion of the base management
fee for one year following the completion of the initial public offering. Amounts waived by the Advisor pursuant to the Fee Waiver Agreement
are not subject to recoupment by the Advisor.

 Base Management Fee

 Prior to the IPO Date, the base management fee
was calculated at an annual rate of 0.90 % of the fair market value of the Company's investments including, in each case, assets
purchased with borrowings under credit facilities and issuances of senior unsecured notes, but excluding cash, U.S. government securities
and commercial paper instruments maturing within one year of purchase.

 Commencing on the IPO Date, the base management
fee is calculated at an annual rate of 1.00 % of the fair market value of the Company's investments. Since the IPO Date was on a
date other than the first day of a calendar quarter, the management fee was calculated for the calendar quarter at a weighted rate
based on the fee rates applicable before and after the IPO Date based on the number of days in such calendar quarter before and after
the IPO Date. Pursuant to the Fee Waiver Agreement, commencing on the IPO Date, the Advisor has contractually agreed to waive the base
management fee at an annual rate of 0.25 % for one year following the IPO Date.

 For the year ended December 31, 2024, the Company
incurred base management fees of $ 14,587, net of waiver of $ 2,900. For the years ended December 31, 2023 and 2022, the Company incurred
base management fees of $ 11,433 and $ 7,147, respectively.

 Incentive Fee

 The Company also pays the Advisor an incentive
fee. The incentive fee consists of two parts—an incentive fee on income and an incentive fee on capital gains. Described in more
detail below, these components of the incentive fee are largely independent of each other with the result that one component may be payable
even if the other is not.

 Incentive Fee on Income

 The incentive fee based on income (the "income
incentive fee") is determined and paid quarterly in arrears in cash. The Company's quarterly pre-incentive fee net investment
income must exceed a preferred return of 1.50 % of the Company's net asset value ("NAV") at the end of the immediately
preceding calendar quarter ( 6.0 % annualized but not compounded) (the "Hurdle Amount") in order for the Company to receive
an income incentive fee. Prior to the IPO Date, the income incentive fee is calculated as 100% of our pre-incentive fee net
investment income for the immediately preceding calendar quarter in excess of 1.50% of the Company's NAV at the end of the immediately
preceding calendar quarter until the Advisor has received 10% of the total pre-incentive fee net income for that calendar quarter and,
for pre-incentive fee net investment income in excess of 1.6667%, 10% of all remaining pre-incentive fee net investment
income for that quarter. Pre-incentive fee net investment income excludes any realized capital gains, realized capital losses or
unrealized capital appreciation or depreciation.

 F- 31

 Commencing on the IPO Date, the Company will pay
the Advisor an income incentive fee based on its aggregate pre-incentive fee net investment income with respect to (i) the quarter
ended June 30, 2024 (the "First Calendar Quarter") and (ii) each subsequent calendar quarter, with the then-current calendar
quarter and the eleven preceding calendar quarters beginning with the calendar quarter after the First Calendar Quarter (or the appropriate
portion thereof in the case of any of the Company's first eleven calendar quarters that commence after the First Calendar Quarter)
(those calendar quarters after the First Calendar Quarter, the "Trailing Twelve Quarters").

 For the First Calendar Quarter, pre-incentive fee
net investment income in respect of the First Calendar Quarter will be compared to a hurdle rate of 1.50 % ( 6.00 % annualized). The income
incentive fee for the First Calendar Quarter will be determined as follows:

 no income incentive fee is payable to the Advisor if the aggregate pre-incentive fee net investment income for the First Calendar Quarter does not exceed that hurdle rate;

 100 % of the aggregate pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds that hurdle rate, but is less than a quarterly rate of 1.6667 % for the portion of the First Calendar Quarter before the initial public offering and a quarterly rate of 1.7647 % for the portion of the First Calendar Quarter after the initial public offering, referred to the "catch-up." The "catch-up" is meant to provide the Advisor with 10.0 % of the Company's pre-incentive fee net investment income for the portion of the First Calendar Quarter before the initial public offering and 15.0 % for the balance of that First Calendar Quarter, as if the hurdle rate did not apply; and

 10.0 % of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.6667 % for the portion of the First Calendar Quarter before the initial public offering and 15.0 % of the aggregate pre-incentive fee net investment income, if any, that exceeds a quarterly rate of 1.7647 % for the balance of the First Calendar Quarter.

 Commencing with the calendar quarter beginning
immediately after the First Calendar Quarter, subject to the Incentive Fee Cap (described below), the pre-incentive fee net investment
income in respect of the relevant Trailing Twelve Quarters will be compared to a "Hurdle Rate" equal to the product of (i) the
hurdle rate of 1.50 % per quarter ( 6.00 % annualized) and (ii) the sum of our net assets at the beginning of each applicable calendar
quarter comprising the relevant Trailing Twelve Quarters. The Hurdle Rate will be calculated after making appropriate adjustments to the
Company's net asset value at the beginning of each applicable calendar quarter for all issuances by the Company of shares of its
common stock, including issuances pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter.
The income incentive fee for each calendar quarter will be determined as follows:

 no income incentive fee is payable to the Advisor in any calendar quarter in which aggregate pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarters does not exceed the Hurdle Rate;

 100 % of the aggregate pre-incentive fee net investment income in respect of the Trailing Twelve Quarters with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the Hurdle Rate, but is less than or equal to an amount, which we refer to as the "Catch-up Amount," determined on a quarterly basis by multiplying 1.7647 % by the Company's net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters (after making appropriate adjustments to the Company's net asset value at the beginning of each applicable calendar quarter for all issuances by the Company of shares of its common stock, including issuances pursuant to its dividend reinvestment plan, and distributions during the applicable calendar quarter); and

 15.0 % of the aggregate pre-incentive fee net investment income in respect of the Trailing Twelve Quarters that exceeds the Catch-up Amount.

 F- 32

 Commencing with the quarter that begins immediately
after the First Calendar Quarter, each income incentive fee will be subject to an "Incentive Fee Cap" that in respect of any
calendar quarter is an amount equal to 15.0 % of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the Trailing
Twelve Quarters less the aggregate income incentive fees that were paid to the Advisor in the preceding eleven calendar quarters (or portion
thereof) comprising the relevant Trailing Twelve Quarters. In the event the Incentive Fee Cap is zero or a negative value then no income
incentive fee shall be payable and if the Incentive Fee Cap is less than the amount of income incentive fee that would otherwise be payable,
the amount of income incentive fee shall be reduced to an amount equal to the Incentive Fee Cap.

 "Cumulative Pre-Incentive Fee Net Return"
means (x) with respect to the First Calendar Quarter, the sum of pre-incentive fee net investment income in respect of the First
Calendar Quarter, (y) with respect to the relevant Trailing Twelve Quarters, the pre-incentive fee net investment income in
respect of the relevant Trailing Twelve Quarters minus any Net Capital Loss (as defined below), if any, in respect of the relevant Trailing
Twelve Quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company will pay no income incentive fee to
the Advisor for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is a positive value but is less than the income
incentive fee that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described
above, the Company will pay an income incentive fee to the Advisor equal to the Incentive Fee Cap for such quarter. If, in any quarter,
the Incentive Fee Cap for such quarter is equal to or greater than the income incentive fee that is payable to the Advisor for such quarter
(before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an income incentive fee to the Advisor
equal to the incentive fee calculated as described above for such quarter without regard to the Incentive Fee Cap.

 "Net Capital Loss" in respect of a
particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such
period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

 These calculations are prorated for any period
of less than three months and adjusted for any share issuances or repurchases during the relevant quarter. Amounts waived by the
Advisor pursuant to the Fee Waiver Agreement are not subject to recoupment by the Advisor.

 Incentive Fee on Capital Gains

 Prior to the IPO Date, the incentive fee on capital
gains (the "capital gains incentive fee") was calculated and payable in arrears in cash as 10 % of the Company's
realized capital gains, if any, on a cumulative basis from formation through (a) the day before our initial public offering ("IPO"),
(b) upon consummation of a Liquidity Event (as defined in the Investment Advisory Agreement) or (c) upon the termination of
the Investment Advisory Agreement, 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. For the purpose of computing the capital gain incentive
fee, the calculation methodology looked through derivative financial instruments or swaps as if the Company owned the reference assets
directly.

 Commencing on the IPO Date, the incentive fee
on capital gains is calculated and payable in arrears in cash as 15.0 % of the Company's realized capital gains, if any, on a cumulative
basis from formation through the end of a given calendar year or upon termination of the Investment Advisory Agreement, 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 terminates as of a date that is not a fiscal year end,
the termination date will be treated as though it were a fiscal year end for purposes of calculating and paying a capital gain incentive
fee.

 For the year ended December 31, 2024, the Company
incurred incentive fees on income of $ 2,631, net of waivers of $ 14,818, and no incentive fees on capital gains. For the years ended December
31, 2023 and 2022, the Company incurred incentive fees on income of $ 9,433 and $ 4,698, respectively, and no incentive fees on capital
gains in either of these years.

 F- 33

 Payment of Incentive Fees Prior to the IPO
Date

 Prior to the Company's IPO, incentive fees
earned by the Advisor accrued as earned but only became payable in cash to the Advisor upon consummation the IPO. In June 2024, the Company
paid $ 16,826 to the Advisor for these accrued as earned fees through the quarter ended March 31, 2024.

 Note 4. Investments

 The following table presents the composition of
the Company's investment portfolio at amortized cost and fair value as of December 31, 2024 and 2023:

 Fair

 Fair

 Cost

 Value

 Cost

 Value

 First-lien senior secured debt investments (1)

 $
 1,952,708

 $
 1,972,406

 $
 1,327,190

 $

 Equity investments (2)

 19,347

 16,033

 Short-term investments

 Total Investments

 $
 2,020,738

 $
 2,043,826

 $
 1,356,025

 $
 1,376,300

 (1)
 Includes debt investment in Trademark
Global LLC.

 (2)
 Includes equity investment in
TG Parent Newco LLC (Trademark Global LLC).

 F- 34

 As of December 31, 2024 and 2023, $ 188,253 and $ 68,578, respectively,
of the Company's total assets were non-qualifying assets, as defined by Section 55(a) of the 1940 Act.

 The Company uses Global Industry Classification
Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies.

 The industry composition of long-term investments based on fair value
as of December 31, 2024 and 2023 was as follows:

 2024

 2023

 15.1
 %

 15.3
 %

 11.7
 %

 9.4
 %

 10.0
 %

 11.5
 %

 8.4
 %

 7.4
 %

 7.5
 %

 7.2
 %

 Professional services

 4.7
 %

 4.5
 %

 4.4
 %

 6.3
 %

 Machinery

 3.7
 %

 3.8
 %

 3.7
 %

 3.0
 %

 3.6
 %

 2.0
 %

 3.2
 %

 3.3
 %

 Building products

 2.3
 %

 2.0
 %

 2.1
 %

 3.3
 %

 2.1
 %

 0.7
 %

 Insurance

 2.0
 %

 2.2
 %

 Pharmaceuticals

 1.8
 %

 0.5
 %

 1.7
 %

 3.8
 %

 Diversified telecommunication services

 1.5
 %

 0.4
 %

 Wireless telecommunication services

 1.5
 %

 2.1
 %

 1.4
 %

 1.5
 %

 Hotels, restaurants & leisure

 1.4
 %

 -

 %

 Chemicals

 1.1
 %

 3.1
 %

 Household durables

 1.0
 %

 1.5
 %

 Media

 0.8
 %

 -

 %

 Household products

 0.8
 %

 1.2
 %

 Construction materials

 0.7
 %

 -

 %

 Biotechnology

 0.6
 %

 0.9
 %

 Semiconductors & semiconductor equipment

 0.6
 %

 -

 %

 Electrical equipment

 0.5
 %

 -

 %

 Diversified consumer services

 0.1
 %

 -

 %

 Software

 -
 %

 2.5
 %

 Capital markets

 -

 %

 0.6
 %

 100.0
 %

 100.0
 %

 F- 35

 Note 5. Fair Value

 The Fair Value Measurement Topic of the FASB Accounting
Standards Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability
would take place between market participants under current market conditions at the measurement date. As required by ASC 820, the Company
has performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their
fair value determination. Inputs are the assumptions, along with considerations of risk, that a market participant would use to value
an asset or a liability. In general, observable inputs are based on market data that is readily available, regularly distributed and verifiable
that the Company obtains from independent, third-party sources. Unobservable inputs are developed by the Company based on its own assumptions
of how market participants would value an asset or a liability.

 The fair value hierarchy prioritizes the inputs
to valuation techniques used to measure fair value into the following three broad categories.

 Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement.

 Level 2 — Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

 Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Company's own assumptions that market participants would use to price the asset or liability based on the best available information.

 In certain cases, the inputs used to measure fair
value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value
hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value
measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and
considers factors specific to the financial instrument.

 F- 36

 The following tables present the fair value hierarchy
of investments as of December 31, 2024 and December 31, 2023. Note that the valuation levels below are not necessarily an indication of
the risk or liquidity associated with the underlying investment.

 Fair Value Hierarchy as of December 31, 2024

 Investments:

 Level 1

 Level 2

 Level 3

 Total

 First-lien senior secured debt investments (1)

 $
 -

 $
 253,224

 $
 1,719,182

 $
 1,972,406

 Equity investments (2)

 -

 -

 Short-term investments

 -

 -

 Total Investments

 $

 $
 253,224

 $
 1,741,919

 $
 2,043,826

 (1)
 Includes debt investment in Trademark
Global LLC.

 (2)
 Includes equity investment in
TG Parent Newco LLC (Trademark Global LLC).

 Fair Value Hierarchy as of December 31, 2023

 Investments:

 Level 1

 Level 2

 Level 3

 Total

 First-lien senior secured debt investments

 $
 -

 $
 -

 $

 $

 Equity investments

 -

 -

 Short-term investments

 -

 -

 Total Investments

 $

 $
 -

 $

 $
 1,376,300

 The following tables present changes in the fair value of investments
for which Level 3 inputs were used to determine the fair value as of and for the years ended December 31, 2024 and 2023.

 For the year ended December 31, 2024

 First-lien

 senior secured

 debt investments (1)

 Private

equity

 investments (2)

 Total

 Fair value, beginning of period

 $

 $

 $

 Purchases of investments, including PIK, if any

 653,938

 3,563

 657,501

 Proceeds from sales of investments and principal repayments

 ( 294,804
)

 ( 958
)

 ( 295,762
)

 Net change in unrealized gain (loss)

 1,127

 2,100

 3,227

 Net realized gain (loss)

 -

 Net accretion of discount on investments

 12,747

 -

 12,747

 Transfers into (out of) Level 3

 -

 -

 -

 Fair value, end of period

 $
 1,719,182

 $

 $
 1,741,919

 (1)
 Includes debt investment in Trademark
Global LLC.

 (2)
 Includes equity investment in
TG Parent Newco LLC (Trademark Global LLC).

 F- 37

 For the year ended December 31, 2023

 First-lien
 senior secured
 debt investments

 Private
 equity
 investments

 Total

 Fair value, beginning of period

 $
 1,157,971

 $
 7,148

 $
 1,165,119

 Purchases of investments, including PIK, if any

 392,388

 392,993

 Proceeds from sales of investments and principal repayments

 ( 196,649
)

 -

 ( 196,649
)

 Net change in unrealized gain (loss)

 2,552

 2,944

 Net realized gain (loss)

)

 -

)

 Net accretion of discount on investments

 9,777

 -

 9,777

 Other(1)

 ( 9,179
)

 9,179

 -

 Transfers into (out of) Level 3

 -

 -

 -

 Fair value, end of period

 $

 $

 $

 (1)
 Reflects non-cash conversions.
These transactions represent non-cash investing activities.

 For the years ended December 31, 2024 and 2023,
the Company did not recognize any transfers to or from Level 3. The increase in unrealized gain (loss) relates to investments that were
held during the period. The Company includes these unrealized gains and losses on the Statement of Operations – Net Change in Unrealized
Gains (Losses).

 Valuation Techniques and Unobservable Inputs

 Non-traded debt investments are typically
valued using either a market yield analysis or an enterprise value analysis. For debt investments that are not considered to be credit
impaired, the Advisor uses a market yield analysis to determine fair value. If the debt investment is considered to be credit impaired
(which is determined by performing an enterprise value analysis), the Advisor will use the enterprise value analysis or a liquidation
basis analysis to determine fair value.

 To determine fair value using a market yield analysis,
the Advisor discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield). To determine the
estimated market yield for its debt investments, the Advisor analyzes changes in the risk/reward (measured by yields and leverage) of
middle market indices as compared to changes in risk/reward for the underlying investment and estimates the appropriate discount rate
for such debt investment. In this context, the discount rate and the fair market value of the investment is impacted by the structure
and pricing of the security relative to current market yields for similar investments in similar businesses as well as the financial performance
of such business. In performing this analysis, the Advisor considers data sources including, but not limited to: (i) industry publications,
such as S&P Global's High-End Middle Market Lending Review; Thomson Reuter's Refinitiv Middle Market Monthly
Stats; CapitalIQ; Pitchbook News; The Lead Left, and other data sources; (ii) comparable investments reviewed or completed by affiliates
of the Advisor, and (iii) information obtained and provided by the Advisor's independent valuation managers.

 To determine if a debt investment is credit impaired,
the Advisor estimates the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business.
The Advisor utilizes the following valuation methodologies to determine the estimated enterprise value of the company: (i) analysis
of valuations of publicly traded companies in a similar line of business ("public company comparable analysis"), (ii) analysis
of valuations of M&A transaction valuations for companies in a similar line of business ("precedent transaction analysis"),
(iii) discounted cash flows ("DCF analysis") and (iv) other valuation methodologies.

 F- 38

 In determining the non-traded debt investment
valuations, the following factors are considered, where relevant: the nature and realizable value of any collateral; the company's
ability to make interest payments, amortization payments (if any) and other fixed charges; call features, put features and other relevant
terms of the debt security; the company's historical and projected financial results; the markets in which the 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
valued; and other relevant factors.

 Equity investments in private companies are typically
valued using one of or a combination of the following valuation techniques: (i) public company comparable analysis, (ii) precedent
transaction analysis and (iii) DCF analysis.

 Under all of these valuation techniques, the Advisor
estimates operating results of the companies in which it invests, including earnings before interest expense, income tax expense, depreciation
and amortization ("EBITDA") and free cash flow. These estimates utilize unobservable inputs such as historical operating results,
which may be unaudited, and projected operating results, which will be based on operating assumptions for such company. Investment performance
data utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in
information. These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the
industry. Other unobservable inputs utilized in the valuation techniques outlined above include: discounts for lack of marketability,
selection of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected
required rates of return (discount rates).

 Quantitative Table for Valuation Techniques

 The following tables present quantitative information
about the significant unobservable inputs of the Company's Level 3 investments as of December 31, 2024 and December 31, 2023. The
tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Advisor's determination
of fair value. The Company calculates weighted average, based on the value of the unobservable input of each investment relative to the
fair value of the investment compared to the total fair value of all investments. First-lien senior secured debt investments include the
Company's senior secured loan in an investment vehicle (BC CS 2, L.P.), which is considered subordinated debt since it is collateralized
by a preferred stock investment in Cuisine Solutions, Inc.

 As of December 31, 2024

 Valuation

Technique

 Unobservable

Input

 Range

 Weighted

Average

 First-lien senior secured debt investments

 $
 1,719,182

 Discounted cash flow analysis

 Discount rate

 8.2 % - 15.0
 %

 10.1
 %

 Preferred equity investment

 11,114

 Discounted cash flow analysis

 Discount rate

 15.0
 %

 15.0
 %

 Preferred equity investment

 Precedent Transaction Analysis

 Original cost

 1.0

 1.0

 Common equity investment

 1,750

 Precedent Transaction Analysis

 Original cost

 1.0

 1.0

 Other equity investments

 9,373

 Comparable Multiples

 EV / EBITDA

 7.6 - 17.2

 11.3

 $
 1,741,919

 As of December 31, 2023

 Valuation

 Unobservable

 Weighted

 Technique

 Input

 Range

 Average

 First-lien senior secured debt investments

 $

 Discounted cash flow analysis

 Discount rate

 8.3 % – 15.0
 %

 10.2
 %

 Preferred equity investment

 9,287

 Discounted cash flow analysis

 Discount rate

 15.0
 %

 15.0
 %

 Other equity investments

 8,037

 Comparable Multiples

 EV / EBITDA

 7.1 – 17.2

 11.5

 $

 F- 39

 Note 6. Debt

 As of December 31, 2024, the Company had a senior
secured revolving credit facility (the "Corporate Credit Facility"), that has a total commitment of $ 475,000, $ 400,000 of
which has a maturity date of November 22, 2029 and the remaining $ 75,000 of which has a maturity date of February 18, 2027, following
the Company's amendment of the Corporate Credit Facility on November 22, 2024. The Corporate Credit Facility also provides for a
feature that allows the Company, under certain circumstances, to increase the overall size of the Corporate Credit Facility to a maximum
of $ 600,000. The interest rate on the Corporate Credit Facility is equal to Term SOFR (a forward-looking rate based on SOFR futures) plus
an applicable spread of 2.10 % per annum or an "alternate base rate" (as defined in the agreements governing the Corporate
Credit Facility) plus an applicable spread of 1.00 %. The Company is also required to pay a commitment fee of 0.375 % per annum on any unused
portion of the Corporate Credit Facility.

 Under the Corporate Credit Facility, the Company
is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities,
including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations
on certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders'
equity, and (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness
of the Company and its consolidated subsidiaries of not less than 1.5:1.0. These covenants are subject to important limitations and exceptions
that are described in the agreements governing the Corporate Credit Facility. Amounts available to borrow under the Corporate Credit Facility
are subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value
as determined pursuant to the Corporate Credit Facility) that are pledged as collateral. The Corporate Credit Facility is secured by certain
assets in the Company's portfolio and excludes investments held by Kayne Anderson BDC Financing LLC ("KABDCF") under
the Revolving Funding Facility and by Kayne Anderson BDC Financing II, LLC ("KABDCF II") under the Revolving Funding Facility
II (each as defined below).

 For the years ended December 31, 2024 and 2023, the average amount
of borrowings outstanding under the Corporate Credit Facility was $ 173,911 and $ 251,655, respectively, with a weighted average interest
rate of 7.42 % and 7.35 %, respectively, for the Corporate Facility portion. As of December 31, 2024, the Company had $ 250,000 outstanding
under the Corporate Credit Facility at a weighted average interest rate of 6.49 %. See Note 13 – Subsequent Events.

 As of December 31, 2024, the Company had a senior
secured revolving funding facility (the "Revolving Funding Facility"), that has a total commitment of $ 600,000. On April 3,
2024, the Company and its wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing, LLC ("KABDCF"),
amended the Revolving Funding Facility. Under the terms of the third amendment, the Company and KABDCF increased the commitment amount
from $ 455,000 to $ 600,000. The end of the reinvestment period was extended to April 2, 2027, and the maturity date was extended to April
3, 2029. The interest rate on the Revolving Funding Facility was reduced from daily SOFR plus 2.75 % per annum to SOFR plus 2.375 % - 2.50 %
per annum depending on the mix of loans securing the Revolving Funding Facility. All other terms of the Revolving Funding Facility remained
substantially the same. The Revolving Funding Facility is secured by all of the assets held by KABDCF and the Company has agreed that
it will not grant or allow a lien on the membership interest of KABDCF.

 KABDCF is also required to pay a commitment fee of between 0.50 % and
 1.50 % per annum depending on the size of the unused portion of the Revolving Funding Facility. Amounts available to borrow under the Revolving
Funding Facility are subject to a borrowing base that applies different advance rates to different types of assets held by KABDCF and
is subject to limitations with respect to the loans securing the Revolving Funding Facility, including restrictions on, loan size, industry
concentration, payment frequency and status, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing
base and therefore amounts available to borrow. The Company and KABDCF are also required to comply with various covenants, reporting requirements
and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are
described in the agreements governing the Revolving Funding Facility. See Note 13 – Subsequent Events.

 F- 40

 For the years ended December 31, 2024 and 2023,
the average amount of borrowings outstanding under the Revolving Funding Facility was $ 371,041 and $ 290,890, respectively, with a weighted
average interest rate of 7.67 % and 7.74 %, respectively. As of December 31, 2024, the Company had $ 420,000 outstanding under the Revolving
Funding Facility at a weighted average interest rate of 6.72 %.

 Revolving Funding Facility II

 As of December 31, 2024, the Company and Kayne Anderson BDC Financing
II, LLC ("KABDCF II"), a wholly-owned, special purpose financing subsidiary, had a senior secured revolving credit facility
(the "Revolving Funding Facility II"). The Revolving Funding Facility II has an initial commitment of $ 150,000 which, under
certain circumstances, can be increased up to $ 500,000. The Revolving Funding Facility II is secured by all of the assets held by KABDCF
II and the Company has agreed that it will not grant or allow a lien on the membership interest of KABDCF II. The end of the reinvestment
period and the stated maturity date for the Revolving Funding Facility II are December 22, 2026, and December 22, 2028, respectively.
The interest rate on the Revolving Funding Facility II is equal to 3-month term SOFR plus 2.70 % per annum. KABDCF II is also required
to pay a commitment fee of 0.50 % between December 22, 2023 and September 22, 2024 and 0.75 % thereafter on the unused portion of the Revolving
Funding Facility II.

 Amounts available to borrow under the Revolving
Funding Facility II are subject to a borrowing base that has limitations with respect to the loans securing the Revolving Funding Facility
II, including limitations on, loan size, payment frequency and status, sector concentrations, as well as restrictions on portfolio company
leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and KABDCF II are also
required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants
are subject to important limitations and exceptions that are described in the agreements governing the Revolving Funding Facility II.

 For the year ended December 31, 2024, the average amount of borrowings
outstanding under the Revolving Funding Facility was $ 82,432, with a weighted average interest rate of 7.84 %. For the period ended
December 22, 2023 through December 31, 2023, the average amount of borrowings outstanding under the Revolving Funding Facility II was
$ 70,000, with a weighted average interest rate of 8.07 %. As of December 31, 2024, the Company had $ 113,000 outstanding under the
Revolving Funding Facility II at a weighted average interest rate of 7.29 %. See Note 13 – Subsequent Events.

 Subscription Credit Agreement

 On April 1, 2024, the Company fully repaid all
amounts outstanding and terminated the remaining commitment of $ 50,000 under its credit agreement (the "Subscription Credit Agreement")
that was scheduled to mature on December 31, 2024. The Subscription Credit Agreement permitted the Company to elect the commitment amount
each quarter to borrow up to $ 50,000, subject to availability under the borrowing base which was calculated based on the unused capital
commitments of the investors meeting various eligibility requirements. The interest rate under the Subscription Credit Agreement was equal
to the Secured Overnight Financing Rate ("SOFR") plus 2.25 % (subject to a 0.275 % SOFR floor). The Company was also required
to pay a commitment fee of 0.25 % per annum on any unused portion of the Subscription Credit Agreement. The Company also paid an extension
fee of 0.075 % per quarter on the elected commitment amount on the first day of each calendar quarter.

 For the years ended December 31, 2024 and 2023, the average amount
of borrowings outstanding under the Subscription Credit Agreement were $ 3,306 and $ 41,782, respectively, with a weighted average interest
rate of 7.61 % and 7.03 %, respectively.

 Senior Unsecured Notes

 As of December 31, 2024, the Company had $ 75,000
aggregate principal amount of senior unsecured notes (the "Notes").

 F- 41

 The table below sets forth a summary of the key
terms of each series of Notes outstanding at December 31, 2024.

 Series

 Principal

Outstanding

2024

 Unamortized

Issuance

Costs

 Estimated

2024

 Fixed

Rate

 A

 $
 25,000

 $

 $
 26,860

 8.65
 %

 6/30/2027

 B

 50,000

 54,580

 8.74
 %

 6/30/2028

 $

 $

 $
 81,440

 Holders of the Notes are entitled to receive cash
interest payments semi-annually (on January 30 and July 30) at the fixed rate. As of December 31, 2024, the weighted average interest
rate on the outstanding Notes was 8.71 %.

 As of December 31, 2024, the Notes were rated
"BBB" by Kroll Bond Rating Agency ("KBRA"). The Company is required to maintain a current rating from one rating
agency with respect to the Notes. In the event the Company does not maintain a current rating from a rating agency for a specified period
of time or the credit rating on the Notes falls below "BBB-" (a "Below Investment Grade Event"), the interest
rate per annum on the Notes will increase by 1.0 % during the period the Notes are rated below "BBB-". In the event the Company's
Secured Debt Ratio exceeds 55 % (a "Secured Debt Ratio Event"), the interest rate per annum on the Notes will increase by 1.5 %
during the period the ratio is above stated percentage. If a Below Investment Grade Event and a Secured Debt Ratio Event is continuing
at the same time the aggregate increase in interest rate per annum will not exceed 2.0 %.

 The Notes were issued in private placement offerings
to institutional investors and are not listed on any exchange or automated quotation system. The Notes contain various covenants related
to other indebtedness, liens and limits on the Company's overall leverage. The Company must maintain a minimum amount of shareholder
equity and the Company's asset coverage ratio must be greater than 150 % as of the last business day of each fiscal quarter. The
Notes are redeemable in certain circumstances at the option of the Company and may be redeemed under certain circumstances to cure the
asset coverage ratio covenant.

 The Notes are unsecured obligations of the Company
and, upon liquidation, dissolution or winding up of the Company, will rank: (1) senior to all of the Company's outstanding common
shares; (2) on parity with any unsecured creditors of the Company and any unsecured senior securities representing indebtedness of the
Company; and (3) junior to any secured creditors of the Company.

 At December 31, 2024, the Company was in compliance
with all covenants under the Notes agreements.

 Debt obligations consisted of the following as
of December 31, 2024 and 2023.

Principal Committed

 Outstanding

 Principal

 Amount

 Available (1)

 Net

 Carrying

 Value (2)

 Notes

 $

 $

 $
 -

 $
 74,357

 475,000

 225,000

 246,765

 600,000

 420,000

 180,000

 415,254

 Revolving Funding Facility II

 150,000

 113,000

 37,000

 111,749

 Total debt

 $
 1,300,000

 $
 858,000

 $
 442,000

 $
 848,125

 (1)
 The amounts available under the Company's credit facilities do
not reflect any limitations related to each borrowing base as of December 31, 2024.

 (2)
 The carrying value of the Notes, Corporate Credit Facility,
Revolving Funding Facility and Revolving Funding Facility II are presented net of deferred financing costs totaling $ 9,875.

 F- 42

Principal

Committed

 Outstanding Principal

 Amount Available (1)

 Net Carrying Value (2)

 Notes

 $

 $

 $

 -

 $

 74,149

 400,000

 234,000

 166,000

 232,285

 455,000

 306,000

 18,536

 303,981

 Revolving Funding Facility II

 150,000

 70,000

 9,716

 68,195

 Subscription Credit Agreement

 50,000

 10,750

 39,250

 10,709

 Total debt

 $

 1,130,000

 $

 695,750

 $

 233,502

 $

 689,319

 (1)
 The amount available under the
Company's credit facilities reflects the assets held at KABDCF and KABDCF II and any limitations related to each borrowing base
as of December 31, 2023.

 (2)
 The carrying value of the Notes,
Corporate Credit Facility, Revolving Funding Facility, Revolving Funding Facility II and Subscription Credit Agreement are presented
net of deferred financing costs totaling $ 6,431.

 For the years ended December 31, 2024, 2023 and 2022, the components
of interest expense were as follows:

 2024

 2023

 2022

 Interest expense

 $
 57,798

 $
 49,620

 $
 18,170

 Amortization of debt issuance costs

 3,718

 2,694

 2,122

 Total interest expense

 $
 61,516

 $
 52,314

 $
 20,292

 Average interest rate

 8.6
 %

 8.4
 %

 5.5
 %

 Average borrowings

 $
 705,690

 $
 624,464

 $
 368,182

 F- 43

 Note 7. Share Transactions

 Common Stock Issuances

 The following tables summarize the number of common
stock shares issued and aggregate proceeds received from such issuances related to the Company's capital call notices pursuant to
subscription agreements with investors for the years ended December 31, 2024, 2023 and 2022. See Note 13 – Subsequent Events.

 On May 24, 2024, the Company completed its IPO,
issuing 6,000,000 shares of its common stock at a public offering price of $ 16.63 per share. Net of underwriting fees and offering
expenses, the Company received net cash proceeds of $ 92,363. The Company's common stock began trading on the NYSE under the ticker
symbol "KBDC" on May 22, 2024.

 For the year ended December 31, 2024

 Common stock issue date

 Offering price per share

 Common stock shares issued

 Aggregate offering amount

 February 14, 2024

 $
 16.74

 7,089,771

 $
 118,689

 April 2, 2024

 $
 16.63

 16,232,415

 269,945

 May 24, 2024

 $
 16.63

 6,000,000

 99,780

 Total common stock issued

 29,322,186

 $
 488,414

 For the year ended December 31, 2023

 price per

 Common stock

 offering

 Common stock issue date

 share

 shares issued

 amount

 April 4, 2023

 $

 16.61

 3,010,942

 $

 50,000

 August 8, 2023

 $

 16.82

 2,411,582

 40,575

 Total common stock issued

 5,422,524

 $

 90,575

 For the year ended December 31, 2022

 price per

 Common stock

 offering

 Common stock issue date

 share

 shares issued

 amount

 January 24, 2022

 $

 16.36

 4,191,292

 $

 68,582

 July 22, 2022

 $

 16.30

 7,666,830

 125,000

 October 31, 2022

 $

 16.58

 1,485,844

 24,636

 December 9, 2022

 $

 16.89

 2,961,068

 50,000

 Total common stock issued

 16,305,034

 $

 268,218

 F- 44

 Share Repurchase Plan

 On May 21, 2024, the Company entered into a share
repurchase plan, or the Company 10b5-1 Plan, to acquire up to $ 100,000 in the aggregate of the Company's Common Stock at prices
below the Company's net asset value per share over a specified period, in accordance with the guidelines specified in Rule 10b5-1
and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The Company 10b5-1 Plan was approved by the Board of Directors on
March 6, 2024. The Company 10b5-1 Plan requires Morgan Stanley Corporation as the Company's agent, to repurchase Common Stock on
its behalf when the market price per share is below the most recently reported net asset value per share (including any updates, corrections
or adjustments publicly announced by the Company to any previously announced net asset value per share, including any distributions declared).
Under the Company 10b5-1 Plan, the volume of purchases would be expected to increase as the price of the Company's Common Stock
declines, subject to volume restrictions. The timing and amount of any share repurchases will depend on the terms and conditions of the
Company 10b5-1 Plan, the market price of the Company's Common Stock and trading volumes, and no assurance can be given that Common
Stock be repurchased in any particular amount or at all. The repurchase of shares pursuant to the Company 10b5-1 Plan is intended to satisfy
the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act, and will otherwise be subject to applicable law, including Regulation
M, which may prohibit repurchases under certain circumstances. The Company 10b5-1 Plan commenced beginning 60 calendar days following
the end of the "restricted period" under Regulation M and will terminate upon the earliest to occur of (i) the close of business
on May 24, 2025, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased under the Company 10b5-1
Plan equals $ 100,000 and (iii) the occurrence of certain other events described in the Company 10b5-1 Plan.

 The "restricted period" under Regulation
M ended upon the closing of the Company's IPO and, therefore, the Common Stock repurchases/purchases described above began on July
23, 2024.

 For the year ended December 31, 2024, the agent
has repurchased shares of common stock pursuant to the Plan as follows:

 Period

 Total number of shares

 repurchased

 Average

 price paid

 per share

 Approximate

 dollar

 value of

 shares that

 have been purchased

under the plan

 Approximate

 dollar

value of

 shares that

 may yet be

 purchased

under the plan

 July 23 - 31, 2024

 12,861

 $
 16.20

 $

 $
 99,792

 August 1 - 31, 2024

 38,271

 $
 16.08

 $
 99,177

 September 1 - 30, 2024

 17,548

 $
 16.16

 $
 98,893

 October 1 - 31, 2024

 19,810

 $
 16.08

 $
 98,574

 November 1 - 30, 2024

 6,123

 $
 16.24

 $
 98,475

 Total stock repurchased

 94,613

 $
 1,525

 F- 45

 Dividends and Dividend Reinvestment

 The following tables summarize the dividends declared and payable by
the Company for the years ended December 31, 2024, 2023 and 2022. For the year ended December 31, 2024, the $ 0.10 per share dividend with
a payment date of December 20, 2024 was one of three special dividends declared by the Board of Directors in conjunction with the Company's
IPO in May 2024. See Note 13 – Subsequent Events.

 For the year ended December 31, 2024

 Dividend declaration date

 per share

 March 6, 2024

 March 29, 2024

 April 17, 2024

 $
 0.40

 May 8, 2024

 June 28, 2024

 July 15, 2024

 0.40

 August 7, 2024

 September 30, 2024

 October 15, 2024

 0.40

 May 8, 2024

 0.10

 November 6, 2024

 January 15, 2025

 0.40

 Total dividends declared

 $
 1.70

 For the year ended December 31, 2023

 Dividend declaration date

 per share

 March 7, 2023

 March 31, 2023

 April 14, 2023

 $
 0.47

 May 10, 2023

 June 30, 2023

 July 14, 2023

 0.53

 August 10, 2023

 September 29, 2023

 October 13, 2023

 0.53

 November 9, 2023

 December 29, 2023

 January 16, 2024

 0.53

 Total dividends declared

 $
 2.06

 For the year ended December 31, 2022

 Dividend declaration date

 per share

 April 19, 2022

 April 20, 2022

 April 26, 2022

 $
 0.26

 July 19, 2022

 July 20, 2022

 July 27, 2022

 0.30

 October 18, 2022

 October 13, 2022

 October 25, 2022

 0.35

 December 16, 2022

 December 29, 2022

 January 13, 2023

 0.43

 Total dividends declared

 $
 1.34

 The following tables summarize the amounts received
and shares of common stock issued to shareholders pursuant to the Company's dividend reinvestment plan ("DRIP") for
the years ended December 31, 2024, 2023 and 2022. See Note 13 - Subsequent Events.

 For the year ended December 31, 2024

 DRIP

 shares

 DRIP

 issued

 value

 December 29, 2023

 January 16, 2024

 95,791

 $
 1,573

 March 29, 2024

 April 17, 2024

 94,816

 1,577

 June 28, 2024

 July 15, 2024

 -

 -

 September 30, 2024

 October 15, 2024

 -

 -

 37,843

 228,450

 $
 3,782

 For the dividend paid on July 15, 2024, the DRIP
value was $ 4,431 and fulfilled through open market purchases of common stock.

 For the dividend paid on October 15, 2024, the
DRIP value was $ 4,521 and was fulfilled through open market purchases of common stock.

 F- 46

 For the dividend paid on December 20, 2024, the
DRIP value was $ 1,084. Of this DRIP amount, $ 452 was fulfilled through open market purchases of common stock and $ 632 was fulfilled with
the issuance of 37,843 shares of common stock.

 For the dividend paid on January 15, 2025, the
DRIP value was $ 3,923. This DRIP is excluded from the table above, as the DRIP share activity was after December 31, 2024.

 For the year ended December 31, 2023

 DRIP

 shares

 DRIP

 issued

 value

 December 29, 2022

 January 13, 2023

 57,860

 $

 March 31, 2023

 April 14, 2023

 65,733

 1,089

 June 30, 2023

 July 14, 2023

 81,527

 1,352

 September 29, 2023

 October 13, 2023

 96,731

 1,586

 301,851

 $
 4,982

 For the dividend paid on January 16, 2024, there were 95,791 shares
issued with a DRIP value of $ 1,573. These shares are excluded from the table above, as the DRIP shares were issued after December 31,
2023.

 For the year ended December 31, 2022

 DRIP

 shares

 DRIP

 issued

 value

 December 29, 2021

 January 18, 2022

 55,590

 $

 April 20, 2022

 April 26, 2022

 75,270

 1,222

 July 20, 2022

 July 27, 2022

 88,081

 1,431

 October 13, 2022

 October 25, 2022

 127,414

 2,087

 346,355

 $
 5,642

 For the dividend paid on January 13, 2023, there were 57,860 shares
issued with a DRIP value of $ 955. These shares are excluded from the table above, as the DRIP shares were issued after December 31, 2022.

 On May 10, 2024, in conjunction with the
Company's IPO, the Board of Directors declared the following special dividends:

 Record date

 Pay date

 Special Dividend

 $
 0.10

 March 3, 2025

 March 18, 2025

 $
 0.10

 June 9, 2025

 June 24, 2025

 $
 0.10

 Note 8. Commitments and Contingencies

 The Company had an aggregate of $ 186,282 and $ 147,928,
respectively, of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2024 and December 31, 2023.
Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and certain operational metrics.
The commitment period for these amounts may be shorter than the maturity date if drawn or funded. These commitments are not reflected
in the Company's consolidated statement of assets and liabilities. Consequently, such commitments result in an element of credit
risk in excess of the amount recognized in the Company's consolidated statement of assets and liabilities.

 F- 47

 A summary of the composition of the unfunded commitments
as of December 31, 2024 and 2023 is shown in the table below.

 As of

 As of

 2024

 2023

 Alcami Corporation (Alcami)

 $
 1,447

 $
 2,543

 Allcat Claims Service, LLC

 10,803

 5,370

 Allentown, LLC

 2,922

 2,601

 2,601

 1,792

 1,872

 MRC Keystone Acquisition LLC (Automated Handing Solutions)

 3,864

 -

 Basel U.S. Acquisition Co., Inc. (IAC)

 2,930

 1,622

 BCI Burke Holding Corp.

 -

 4,659

 OAO Acquisitions, Inc. (BearCom)

 2,482

 6,982

 Bloomington Holdco, LLC (BW Fusion)

 6,421

 -

 BLP Buyer, Inc. (Bishop Lifting Products)

 2,878

 6,548

 -

 2,870

 Carton Packaging Buyer, Inc.

 2,848

 2,848

 CCFF Buyer, Inc (California Custom Fruits & Flavors, LLC)

 9,812

 -

 CGI Automated Manufacturing, LLC

 2,242

 2,390

 City Line Distributors, LLC

 2,530

 5,322

 Curio Brands, LLC

 1,719

 1,719

 DISA Holdings Corp. (DISA)

 3,331

 6,142

 Diverzify Intermediate, LLC

 3,155

 -

 DRS Holdings III, Inc. (Dr. Scholl's)

 Eastern Wholesale Fence

 1,332

 EIS Legacy, LLC

 -

 6,922

 Energy Acquisition LP (Electrical Components International, Inc. - ECI)

 1,442

 -

 Envirotech Services, LLC

 6,746

 -

 Eppinger Technologies, LLC

 1,145

 1,450

 FCA, LLC (FCA Packaging)

 -

 2,670

 Fastener Distribution Holdings, LLC

 7,502

 -

 Foundation Consumer Brands

 Fralock Buyer LLC

 -

 Guardian Dentistry Partners

 -

 Guided Practice Solutions: Dental, LLC (GPS)

 -

 10,299

 Gulf Pacific Holdings, LLC

 1,798

 10,153

 Gusmer Enterprises, Inc.

 3,676

 3,676

 Home Brands Group Holdings, Inc. (ReBath)

 2,099

 2,099

 I.D. Images Acquisition, LLC

 2,020

 2,020

 2,813

 1,656

 1,672

 1,672

 Krayden Holdings, Inc.

 5,438

 5,438

 Superior Intermediate LLC (Landmark Structures)

 10,006

 -

 Light Wave Dental Management LLC

 4,171

 5,224

 15,224

 MacNeill Pride Group

 1,798

 3,877

 ML Buyer, LLC (Mama Lycha Foods, LLC)

 3,991

 -

 NMA Holdings, LLC (Neuromonitoring Associates)

 7,459

 -

 Phoenix YW Buyer, Inc. (Elida Beauty)

 1,960

 -

 Pixel Intermediate, LLC

 1,482

 -

 PMFC Holding, LLC

 -

 Redwood MSO, LLC

 2,784

 -

 Refocus Management Services, LLC

 6,269

 -

 Regiment Security Partners LLC

 The Robinette Company

 5,047

 -

 Ruff Roofers Buyer, LLC

 7,138

 10,966

 SGA Dental Partners Holdings, LLC

 -

 5,087

 6,667

 -

 Speedstar Holding LLC

 -

 Sundance Holdings Group, LLC

 -

 Tapco Buyer LLC

 9,435

 -

 Trademark Global LLC

 US Anchors Group, Inc. (Mechanical Plastics Corp.)

 2,819

 -

 United Safety & Survivability Corporation (USSC)

 -

 USALCO, LLC

 -

 1,494

 Vehicle Accessories, Inc.

 2,064

 1,671

 Workholding US Holdings, LLC (Forkardt Hardinge)

 3,144

 -

 Worldwide Produce Acquisition, LLC

 1,286

 Total unfunded commitments

 $
 186,282

 $
 147,928

 From time to time, the Company may become a party
to certain legal proceedings incidental to the normal course of its business. As of December 31, 2024 and 2023, management was not aware
of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.

 F- 48

 Note 9. Earnings Per Share

 In accordance with the provisions of ASC Topic
260, Earnings per Share ("ASC 260"), basic earnings per share is computed by dividing earnings available to common
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, 2024, 2023 and 2022,
there were no dilutive shares.

 The following table sets forth the computation
of basic and diluted earnings per share of common stock for the years ended December 31, 2024, 2023 and 2022.

 2024

 2023

 2022

 Net increase (decrease) in net assets resulting from operations

 $

 $

 $

 Weighted average shares of common stock outstanding - basic and diluted

 63,762,377

 39,250,232

 27,184,302

 Earnings (loss) per share of common stock - basic and diluted

 $
 2.07

 $
 1.96

 $
 1.68

 Note 10. Income Taxes

 The Company has elected to be treated as a RIC
under the Code beginning with the taxable year end December 31, 2021. As a RIC, the Company is not subject to a federal excise tax based
on distributive requirements of its taxable income on a calendar year basis. Depending on the level of taxable income earned in a tax
year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a
 4 % excise tax on such income, to the extent required.

 The Company makes certain adjustments to the classification
of net assets 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, or total distributable earnings (losses), as appropriate.

 The permanent differences for tax purposes from
distributable earnings to additional paid in capital were reclassified for tax purposes for the tax years ended December 31, 2024, 2023
and 2022.

 These reclassifications have no impact on net
assets.

 2024

 2023

 2022

 Increase (decrease) in distributable earnings

 $

 $

 $

 Increase (decrease) in additional paid-in capital

 $
 ( 819
)

 $
 ( 101
)

 $
 ( 29
)

 Taxable income generally differs from the net increase in net assets
resulting from operations for financial reporting purposes due to (1) unrealized appreciation (depreciation) on investments, as gains
and losses are generally not included in taxable income until these are realized; (2) income or loss recognition on exited investments;
(3) non-deductible U.S. federal excise taxes; and (4) other non-deductible expense.

 The following reconciles net increase in net assets resulting from
operations to taxable income for the years ended December 31, 2024, 2023 and 2022:

 2024

 2023

 2022

 Net increase (decrease) in net assets resulting from operations

 $

 $

 $

 Net change in unrealized losses (gains) from investments, net of deferred income tax expense, if any

 ( 2,098
)

 ( 2,944
)

 ( 5,502
)

 Net realized gains from investments (1)

 ( 570
)

 -

 -

 Non-deductible expenses, including excise taxes and offering costs disallowed

 Capital loss carryforward

 -

 10,686

 -

 Other book tax differences

 ( 66
)

 ( 65
)

 ( 67
)

 Taxable income before deductions for distributions

 $
 130,025

 $
 84,853

 $
 40,225

 (1)
 The realized gains of $ 570 are offset by capital losses generated for
the year ended December 31, 2023 of $ 10,686.

 For income tax purposes, distributions made to stockholders
are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof.

 F- 49

 For the years ended December 31, 2024 and 2023,
the Company incurred $ 817 and $ 101, respectively, of U.S. federal excise tax. There was no U.S. federal excise tax incurred for the
year ended December 31, 2022.

 The final determination of tax character will not be made until the
Company files its tax return for each tax year and the tax characteristics of all distributions will be reported to stockholders on Form
1099 after the end of each calendar year. The tax character of distributions paid to stockholders during the tax years ended December
31, 2024, 2023 and 2022 were as follows.

 2024

 2023

 2022

 Ordinary income

 $
 111,908

 $
 81,617

 $
 39,553

 Capital gains

 -

 -

 -

 Return of capital

 -

 -

 -

 Total

 $
 111,908

 $
 81,617

 $
 39,553

 For the years ended December 31, 2024, 2023 and 2022, the components
of accumulated earnings on a tax basis were as follows.

 2024

 2023

 2022

 Undistributed net investment income (loss)

 $
 22,345

 $
 4,227

 $

 Undistributed capital gains

 -

 -

 -

 Capital loss carryforward

 ( 13,357
)

)

 -

 Other accumulated gain (loss)

 -

 -

 -

 Other temporary book / tax differences

 ( 727
)

 ( 792
)

 ( 857
)

 Net unrealized appreciation (depreciation), net of deferred income tax expense, if any

 25,614

 20,275

 17,331

 Total

 $
 33,875

 $
 13,024

 $
 17,465

 Capital losses can be carried forward indefinitely
to offset future capital gains. As of December 31, 2024, the Company had a capital loss carryforward of $ 401, which was characterized
as short-term, and $ 12,956, which was characterized as long-term. As of December 31, 2023, the Company had a capital loss carryforward
of $ 263, which was characterized as short-term, and $ 10,423, which was characterized as long-term. As of December 31, 2022, the Company
had no capital loss carryforwards.

 As of December 31, 2024, 2023 and 2022, the Company's aggregate
unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes was as follows:

 2024

 2023

 2022

 Tax cost

 $
 2,017,154

 $
 1,356,025

 $
 1,157,635

 Gross unrealized appreciation

 36,977

 25,718

 21,476

 Gross unrealized depreciation

 ( 10,646
)

 ( 5,443
)

 ( 4,145
)

 Net unrealized appreciation/(depreciation) on investments

 $
 26,331

 $
 20,275

 $
 17,331

 KABDC Corp, LLC, a wholly owned subsidiary, has elected to be treated
as a corporation for U.S. tax purposes. As such, KABDC Corp, LLC is subject to U.S. Federal, state and local taxes. For the Company's
tax year ended December 31, 2024, KABDC Corp, LLC had a deferred income tax expense and a net deferred tax liability of $ 717. The net
deferred tax liability of $ 717 is included in accrued expense and other liabilities on the Company's Consolidated Statement of Assets
and Liabilities as of December 31, 2024. For the Company's tax years ended December 31, 2023 and 2022, KABDC Corp, LLC did not have
a material provision for income taxes.

 FASB ASC Topic 740, Accounting for Uncertainty
in Income Taxes ("ASC 740") provides guidance for how uncertain tax positions should be recognized, measured, presented,
and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken
in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not"
of being sustained by the applicable tax authority. The Company recognizes the tax benefits of uncertain tax positions only where the
position is "more likely than not" to be sustained assuming examination by tax authorities. As of December 31, 2024, 2023
and 2022, management has analyzed the Company's tax positions, and has concluded that no liability for unrecognized tax benefits
should be recorded related to uncertain tax positions taken in the Company's current year tax return. The Company is not aware of
any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the
next 12 months. Management's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon
factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof.

 F- 50

 Note 11. Financial Highlights

 The following per share of common stock data has been derived from
information provided in the audited financial statements. The following is a schedule of financial highlights for the years ended December
31, 2024, 2023, 2022 and 2021.

 For the years ended December 31,

 (amounts in thousands, except share and per share amounts)

 Per Common Share Operating Performance (1)

 2024

 2023

 2022

 2021

 Net Asset Value, Beginning of Period (2)

 $
 16.42

 $
 16.50

 16.22

 $
 14.86

 Results of Operations:

 Net Investment Income

 2.03

 2.16

 1.48

 0.94

 Net Realized and Unrealized Gain (Loss) on Investments (3)

 0.06

 ( 0.18
)

 0.14

 1.28

 Net Increase (Decrease) in Net Assets Resulting from Operations

 2.09

 1.98

 1.62

 2.22

 Distributions to Common Stockholders

 Distributions

 ( 1.70
)

 ( 2.06
)

 ( 1.34
)

 ( 0.86
)

 Net Decrease in Net Assets Resulting from Distributions

 ( 1.70
)

 ( 2.06
)

 ( 1.34
)

 ( 0.86
)

 Capital Share Transactions

 Issuance of Common Stock, net of Underwriting and Offering Costs

 ( 0.11
)

 -

 -

 -

 Net Increase (Decrease) Resulting from Capital Share Transactions

 ( 0.11
)

 -

 -

 -

 Net Asset Value, End of Period

 $
 16.70

 $
 16.42

 $
 16.50

 $
 16.22

 Per Share Market Value, End of Period

 $
 16.54

 $
 N/A

 N/A

 N/A

 Shares Outstanding, End of Period

 71,059,689

 41,603,666

 35,879,291

 19,227,902

 Ratio/Supplemental Data

 Net assets, end of period

 $
 1,186,342

 $

 592,041

 $
 311,969

 Weighted-average shares outstanding

 63,762,377

 39,250,232

 27,184,302

 10,718,083

 Total Return based on net asset value (4)

 12.6
 %

 12.5
 %

 10.3
 %

 14.2
 %

 Total Return based on market value (5)

 7.5
 %

 N/A

 N/A

 N/A

 Portfolio turnover

 20.7
 %

 15.5
 %

 17.6
 %

 31.3
 %

 Ratio of operating expenses to average net assets before waivers (6)

 10.1
 %

 11.9
 %

 7.9
 %

 5.8
 %

 Ratio of operating expenses to average net assets with waiver (6)

 8.3
 %

 11.9
 %

 7.9
 %

 5.8
 %

 Ratio of net investment income (loss) to average net assets (6)

 12.8
 %

 13.3
 %

 9.1
 %

 6.8
 %

 (1)
 The per common share data was
derived by using weighted average shares outstanding.

 (2)
 On February 5, 2021, the initial
offering price of $ 15.00 per share less $ 0.14 per share of organizational costs.

 (3)
 Realized and unrealized gains
and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period
and may not reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to share transactions during
the period.

 For the years ended December 31, 2024,
2023, 2022 and 2021, such share transactions include the effect of share issuances of $ 0.00, $ 0.00, $ 0.04 and $ 0.19 per share, respectively.
During the period, shares were issued at prices that reflect the aggregate amount of the Company's initial organizational and offering
expenses. As a result, investors subscribing after the initial capital call are allocated organizational expenses consistently with all
stockholders.

 (4)
 Total return is calculated as
the change in net asset value ("NAV") per share during the period, plus distributions per share (if any), divided by the
beginning NAV per share. The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company's dividend
reinvestment plan. Total return is not annualized.

 F- 51

 (5)
 Total return based on market value
is calculated as the change in market value per share during the respective periods, plus distributions per share, if any, divided by
the beginning market value per share. The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company's
dividend reinvestment plan. The beginning market value per share is based on the initial public offering price of $ 16.63 per share
and not annualized.

 (6)
 The ratios reflect an annualized amount, except in the case of non-recurring expenses (e.g. initial organizational expense of $ 175 for the period February 5, 2021 (commencement of operations) through December 31, 2021).

 Note 12. Segment Reporting

 The Company operates through a single operating and reporting segment
with an investment objective to generate both current income and capital appreciation through debt and equity investments. The CODM is
comprised of the Company's co-chief executive officers and these CODMs assess the performance and make operating decisions of the
Company on a consolidated basis primarily based on the Company's net increase in stockholders' equity resulting from operations
("net income"). In addition to numerous other factors and metrics, the CODMs utilize net income as a key metric in determining
the amount of dividends to be distributed to the Company's stockholders. As the Company's operations comprise of a single
reporting segment, the segment assets are reflected on the accompanying consolidated balance sheet as "total assets" and the
significant segment expenses are listed on the accompanying consolidated statement of operations.

 Note 13. Subsequent Events

 The Company's management has evaluated subsequent
events through the date of issuance of the financial statements included herein. There have been no subsequent events that require recognition
or disclosure in these financial statements except as described below.

 On January 15, 2025, the Company paid a regular
dividend of $ 0.40 per share to each common stockholder of record as of December 31, 2024. The total dividend was $ 28,424 and $ 3,923 of
the total was DRIP.

 On February 5, 2025, the Company and KABDCF II
entered into an amendment of its Revolving Funding Facility II. Under the terms of the amendment, the lender increased its commitment
from $ 150,000 to $ 250,000 and decreased the interest rate on borrowings outstanding from 3-month term SOFR plus 2.70 % to 3-month term
SOFR plus 2.25 %. Additionally, the maturity date of the facility was extended one year to December 22, 2029. All other terms of the Revolving
Funding Facility II remain substantially the same.

 On February 13, 2025, the Company and KABDCF entered
into an amendment of its Revolving Funding Facility. Under the terms of the amendment, the lenders increased their commitments from $ 600,000
to $ 675,000 and decreased the interest rate on borrowings outstanding from daily SOFR plus 2.375 % - 2.50 %, depending upon the mix of loans,
to daily SOFR plus 2.15 %. Additionally, the maturity date of the facility was extended to February 13, 2030. All other terms of the Revolving
Funding Facility remain substantially the same.

 On February 14, 2025, the Company reduced the
size of its Corporate Credit Facility from $ 475,000 to $ 400,000. This commitment reduction was done in conjunction with the $ 75,000 increase
to its Revolving Funding Facility from $ 600,000 to $ 675,000.

 On February 19, 2025, the Board of Directors of
the Company declared a regular dividend to common stockholders in the amount of $ 0.40 per share. The regular dividend of $ 0.40 per share
will be paid on April 15, 2025 to stockholders of record as of the close of business on March 31, 2025, payable in cash or shares of common
stock of the Company pursuant to the Company's Dividend Reinvestment Plan, as amended.

 F- 52

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

 There are not and have not been any disagreements
between us and our accountant on any matter of accounting principles, practices or financial statement disclosure.

 ITEM 9A. CONTROLS AND PROCEDURES

 Evaluation of Disclosure Controls and Procedures

 As of the end of the period covered by this report, our management
carried out an evaluation, under the supervision and with the participation of our Co-Chief Executive Officers and Chief Financial Officer,
of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act). Based on that evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded that our
disclosure controls and procedures were effective at the reasonable assurance level as of December 31, 2024. In designing and evaluating
our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated,
can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the
benefits of possible controls and procedures relative to their costs.

 Report of Management on Internal Control
Over Financial Reporting

 Our management is responsible
for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the
Exchange Act). Under the supervision and with the participation of management, including the Co-Chief Executive Officers and Chief Financial
Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria established
in "Internal Control—Integrated Framework" (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Based on the evaluation, management
concluded that the Company's internal control over financial reporting was effective as of December 31, 2024. The Company's independent
registered public accounting firm, PricewaterhouseCoopers LLP, has audited the effectiveness of the Company's internal control over financial
reporting as of December 31, 2024, as stated in their report which appears herein.

 Attestation Report of the Registered Public
Accounting Firm

 Our independent registered public accounting
firm, PricewaterhouseCoopers LLP, has audited the effectiveness of the Company's internal control over financial
reporting as of December 31, 2024, as stated in their report which is included herein.

 Changes in Internal Control over Financial
Reporting

 There have been no changes
in our internal control over financial reporting that occurred during our most recently completed fiscal quarter ended December 31, 2024
that have materially affected, or 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.

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE

contained in the Company's definitive Proxy Statement for its 2025 Annual Stockholder Meeting, to be filed with the SEC within 120 days

 ITEM 11. EXECUTIVE COMPENSATION

contained in the Company's definitive Proxy Statement for its 2025 Annual Stockholder Meeting, to be filed with the SEC within 120 days

 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

contained in the Company's definitive Proxy Statement for its 2025 Annual Stockholder Meeting, to be filed with the SEC within 120 days

 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE

contained in the Company's definitive Proxy Statement for its 2025 Annual Stockholder Meeting, to be filed with the SEC within 120 days

 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

contained in the Company's definitive Proxy Statement for its 2025 Annual Stockholder Meeting, to be filed with the SEC within 120 days

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 (a) DOCUMENTS FILED AS PART OF THIS REPORT

 The following is a list of our consolidated financial
statements included in this Annual Report on Form 10-K under Item 8 of Part II hereof:

 1. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

 Index to Consolidated Financial Statements

 Page

 Report of Independent Registered
 Public Accounting Firm

 Consolidated Statements
 of Assets and Liabilities as of December 31, 2024 and 2023

 Consolidated Statements
 of Operations for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statements
 of Changes in Net Assets for the years ended December 31, 2024, 2023 and 2022

 Consolidated Statement
 of Cash Flows for the years ended December 31, 2024, 2023 and 2022

 Consolidated Schedules
 of Investments as of December 31, 2024 and 2023

 Notes to Consolidated Financial
 Statements

 (b) EXHIBITS

 3.1

 Certificate of Formation (3)

 3.2

 Initial Limited Liability Company Agreement (1)

 3.3

 Certificate of Conversion (2)

 3.4

 Certificate of Incorporation (2)

 3.5

 Amended and Restated Bylaws (5)

 4.1

 Description of Securities (3)

 10.1

 Investment Advisory Agreement (1)

 10.2

 Amendment to Investment Advisory Agreement (8)

 10.3

 Amended and Restated Investment Advisory Agreement (13)

 10.4

 Administration Agreement (1)

 10.5

 License Agreement (1)

 10.6

 Indemnification Agreement (1)

 10.7

 Custody Agreement (1)

 10.8

 Subscription Agreement (1)

 10.9

 Loan and Security Agreement, dated as of February 5, 2021, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders (2)

 10.10

 Credit Agreement, dated February 5, 2021, by and between Kayne Anderson BDC, Inc., as borrower, lenders signatories thereto, and agent and the lead arranger (2)

 10.11

 Second Amendment to Credit Agreement, dated December 3, 2021, by and between Kayne Anderson BDC, Inc., as borrower, lender signatories thereto, and agent and lead arranger (5)

 10.12

 Third Amendment to the Credit Agreement, dated December 30, 2022, by and between Kayne Anderson BDC, Inc., as borrower, lenders, and City National Bank as administrative agent for the lenders (7)

 10.13

 Fourth Amendment to the Credit Agreement, dated December 31, 2023, by and between Kayne Anderson BDC, Inc., as borrower, lenders, and City National Bank as administrative agent for the lenders (11)

 10.14

 Senior Secured Revolving Credit Agreement (4)

 10.15

 Second Amendment to Senior Secured Revolving Credit Agreement (14)

 10.16

 Loan and Security Agreement (4)

 10.17

 First Amendment to Loan and Security Agreement, dated November 17, 2022, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders (6)

 10.18

 Second Amendment to Loan and Security Agreement, dated June 29, 2023, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders (9)

 10.19

 Third Amendment to Loan and Security Agreement, dated April 3, 2024, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders (12)

 10.20

 Fourth Amendment to Loan and Security Agreement, dated December 13, 2024, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders *

 10.21

 Fifth Amendment to Loan and Security Agreement, dated February 13, 2025, by and between KA Credit Advisors, LLC, as collateral manager, Kayne Anderson BDC Financing, LLC, as borrower, certain lenders thereto, administrative agent for the lenders, and collateral agent for the lenders (16)

 10.22

 Loan and Security Agreement, dated December 22, 2023, by and between KA Credit Advisors, LLC, as portfolio manager, Kayne Anderson BDC Financing II, LLC, as borrower, certain lenders thereto, collateral administrator for the lenders, collateral agent for the lenders, securities intermediary party, and administrative agent for the lenders (10)

 10.23

 Amendment No. 2 to Loan and Security Agreement, dated December 22, 2023, by and between KA Credit Advisors, LLC, as portfolio manager, Kayne Anderson BDC Financing II, LLC, as borrower, certain lenders thereto, collateral administrator for the lenders, collateral agent for the lenders, securities intermediary party, and administrative agent for the lenders (15)

 10.24

 Notes Purchase Agreement, dated June 29, 2023, by and among the Company and the Purchasers party thereto (9)

 14.1

 Code of Ethics as amended November 9, 2023 *

 14.2

 Supplemental Antifraud Code of Ethics for Principal Officers and Senior Financial Officers (8)

 21.1

 Subsidiaries of Kayne Anderson BDC, Inc. (3)

 31.1*

 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2*

 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32.1*

 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.2*

 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 (1)

 Incorporated by reference from the Company's Amendment No. 2 to Form 10, as filed with the Securities and Exchange Commission on November 9, 2020.

 (2)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 9, 2021.

 (3)

 Incorporated by reference from the Company's Form 10-K, as filed with the Securities and Exchange Commission on February 26, 2021.

 (4)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 25, 2022.

 (5)

 Incorporated by reference from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on August 15, 2022.

 (6)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on November 22, 2022.

 (7)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on January 6, 2023.

 (8)

 Incorporated by reference from the Company's Form 10-K, as filed with the Securities and Exchange Commission on March 13, 2023.

 (9)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on July 5, 2023.

 (10)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on December 29, 2023.

 (11)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on January 5, 2024.

 (12)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on April 8, 2024.

 (13)

 Incorporated by reference from the Company's Quarterly report on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on August 13, 2024.

 (14)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on November 26, 2024.

 (15)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 10, 2025.

 (16)

 Incorporated by reference from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 18, 2025.

 *

 Filed herewith.

 ITEM 16. FORM 10-K SUMMARY

 None.

 SIGNATURES

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

 Date: March 3, 2025

 /s/ Douglas L. Goodwillie

 Name:

 Douglas L. Goodwillie

 Title:

 Co-Chief Executive Officer

 (Co-Principal Executive Officer)

 Date: March 3, 2025

 /s/ Kenneth B. Leonard

 Name:

 Kenneth B. Leonard

 Title:

 Co-Chief Executive Officer

 (Co-Principal Executive Officer)

 Date: March 3, 2025

 /s/ Terry A. Hart

 Name:

 Terry A. Hart

 Title:

 Chief Financial Officer and Treasurer

 (Principal Financial and Accounting Officer)

 As of December 31, 2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
 In November 2023, the Company completed a restructure of the investment in Arborworks Acquisition LLC whereby the existing term loan and revolver were restructured to a new term loan and preferred and common equity. KABDC Corp II, LLC, a wholly owned subsidiary of the Company, holds the preferred and common equity of Arborworks Acquisition LLC that the Company owns following this restructure.
 The Company has a senior secured loan in an investment vehicle (BC CS 2, L.P.) that is collateralized by a preferred stock investment in Cuisine Solutions, Inc..
 In September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing term loan and revolver became a restructured term loan and revolver and no debt was converted to equity. The Company did receive new common units in TG Parent Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities as a whole own 20.77%). As of December 31, 2024, the amortized cost basis of Trademark Global LLC was $15,438 and was 0.8% of the total amortized cost basis of our debt investments of $1,952,708. The restructure extended the maturity from July 30, 2024 to July 30, 2030; the rate changed from S + 5.75% to S + 8.50%.
 As defined in the 1940 Act, the Company is deemed to be an "affiliated person" of this portfolio company as the Company owns more than 5% but less than 25% of the portfolio company's voting securities or has the power to exercise control over management or policies of such portfolio company, including through a management agreement ("non-controlled affiliate"). As of September 30, 2024, the total value of the Company's non-controlled affiliated investments was $12,196. Transactions related to the Company's investment in a non-controlled affiliate for the period September 30, 2024 were as follows:
Investment Value at
2023 Gross
Additions(a) Gross
Reductions (b) Net
Change in
Unrealized
Gains
(Losses) Value at
September 30,
2024 Interest and
PIK Income Dividend
Income Other
Income
Trademark Global, LLC $ 13,129 $ 1,010 $ - $ (1,943) $ 12,196 $ 754 $ - $ -
TG Parent Newco LLC (Trademark Global LLC) - - - - - - - -
Total $ 13,129 $ 1,010 $ - $ (1,943) $ 12,196 $ 754 $ - $ -

(a) Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind ("PIK") interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this controlled affiliated category from a different category.

(b) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.
 As of December 31, 2023, the tax cost of the Company's investments approximates their amortized cost.
 Loan contains a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Funding Rate ("SOFR" or "S") (which can include one-, three- or six-month SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or "P").
 Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2023, 4.8% of the Company's total assets were in non-qualifying investments.
 Debt investment on non-accrual status as of December 31, 2023.
 In September 2024, the Company completed a restructure of the investment in Trademark Global LLC whereby the existing term loan and revolver became a restructured term loan and revolver and no debt was converted to equity. The Company did receive new common units in TG Parent Newco LLC for which it owns 6.23% of the overall business (Kayne Anderson entities as a whole own 20.77%). As of December 31, 2024, the amortized cost basis of Trademark Global LLC was $15,438 and was 0.8% of the total amortized cost basis of our debt investments of $1,952,708. The restructure extended the maturity from July 30, 2024 to July 30, 2030; the rate changed from S + 5.75% to S + 8.50%.
As defined in the 1940 Act, the Company is deemed to be an "affiliated person" of this portfolio company as the Company owns more than 5% but less than 25% of the portfolio company's voting securities or has the power to exercise control over management or policies of such portfolio company, including through a management agreement ("non-controlled affiliate"). As of December 31, 2024, the total value of the Company's non-controlled affiliated investments was $12,196. Transactions related to the Company's investment in a non-controlled affiliate for the period December 31, 2024 were as follows:

Investment(1) Value at 12/30/2023 Gross Additions(a) Gross Reductions (b) Net Change in Unrealized Gains(Losses) Value at 12/31/2024 Interest and PIK Income Dividend Income Other Income

Trademark Global, LLC $ 13,129 $ 1,010 $ - $ (1,943) $ 12,196 $ 754 $ - $ -
TG Parent Newco LLC (Trademark Global LLC) - - - - - - - -
Total $ 13,129 $ 1,010 $ - $ (1,943) $ 12,196 $ 754 $ - $ -

(a) Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind ("PIK") interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this controlled affiliated category from a different category.

(b) Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.
 Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period and may not reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to share transactions during the period.
For the years ended December 31, 2024, 2023, 2022 and 2021, such share transactions include the effect of share issuances of $0.00, $0.00, $0.04 and $0.19 per share, respectively. During the period, shares were issued at prices that reflect the aggregate amount of the Company's initial organizational and offering expenses. As a result, investors subscribing after the initial capital call are allocated organizational expenses consistently with all stockholders.
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