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, 2023

 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

 None

 None

 None

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

 Common Stock, par value $0.001 per share

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

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

 Indicate by check mark whether the registrant (1)
has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the 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

 Indicate
by check mark whether 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

 Indicate by check mark whether 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.

 Indicate by check mark whether the registrant has
filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting
under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its
audit report.

 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.

 Indicate by check mark whether 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).

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

 As of February 22, 2024, the
registrant had 48,789,228 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,
2023, 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

 7 4

 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 borrowed money 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 10, quarterly
reports on Form 10-Q and current reports on Form 8-K.

 Item 1. Business

 Overview

 Kayne Anderson BDC, Inc. was formed as a Delaware
corporation 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 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, focused on
real estate, credit, infrastructure/energy and growth capital. 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").

 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. Nearly all of our debt investments are in middle market companies. We define "middle
market companies" as companies that, in general, generate between $10 million and $150 million of annual 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 issuance 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 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 have principal business activities in the United States.

 The Advisor executes on our investment objective
by (1) accessing the established loan sourcing channels developed by Kayne Anderson's middle market private credit platform ("KAPC"
or "Kayne Anderson Private Credit"), 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 $6.5 billion related
to middle market private credit as of December 31, 2023. 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."

 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.

 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)."

 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 substantially all of our
investments. Once an investment has been made, our Advisor closely monitors portfolio investments and takes a proactive approach identifying
and addressing sector or company specific risks. The Advisor maintains 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, 2023:

 Portfolio Company

 Industry

 Fair
 Value

 Percentage of
 long-term
 investments

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 $
 34.7

 2.5
 %

 Genuine Cable Group, LLC

 $
 34.5

 2.5
 %

 American Equipment Holdings LLC

 $
 34.3

 2.5
 %

 IF&P Foods, LLC (FreshEdge)

 $
 33.8

 2.5
 %

 BR PJK Produce, LLC (Keany)

 $
 32.5

 2.4
 %

 $
 31.8

 2.3
 %

 Improving Acquisition LLC

 $
 31.5

 2.3
 %

 Vitesse Systems Parent, LLC

 $
 31.2

 2.3
 %

 CGI Automated Manufacturing, LLC

 $
 31.1

 2.3
 %

 Fastener Distribution Holdings, LLC

 $
 29.6

 2.2
 %

 $
 325.0

 23.8
 %

 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, 2023, 4.8% 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 (97.1% of our portfolio consisted of first lien senior secured loans as of December 31, 2023),
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 2023 Middle Market Indicator).

 Private equity firms investing in these businesses
held more than $1.5 trillion in un-invested capital ("dry powder") as of November 2023. 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.

 For instance, the number of commercial banks in
the United States decreased from 8,315 commercial banks as of December 31, 2000 to 4,136 commercial banks as of December 31, 2022. ( Source:
Federal Deposit Insurance Corporation, Annual Historical Bank Data). In addition, the middle market leveraged-buy-out financing share
was 67.1% via syndicated markets and 32.9% via direct markets at 2014 compared to 27.7% via syndicated markets and 72.3% via direct markets
at 2022. ( Source: Refinitiv LPC's 2Q '23 Sponsored Middle Market Private Deals Analysis – July 2023).

 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.

 Current Environment Favorable for Direct Lenders

 Multiple factors have created what we believe
is a favorable environment for deploying capital into the private credit market which we operate.

 First, inflationary concerns in the United States
have led the U.S. Federal Reserve to substantially increase rates, which have driven an increase in reference rates, which inure to the
benefit of lenders invested in floating rate securities, increasing returns to investors.

 Second, global economic considerations (e.g.,
the risk or perceived risk of a near-term recessionary environment) have created an environment in which lending institutions broadly
have moderated activity. This moderation has reduced competition from traditional financing sources and created significant opportunities
for lenders in these markets.

 Third, we believe that recent and potential near-to-medium-term
turbulence in the regional banking market (such as that experienced in the first half of 2023) will likely lead to further depressed participation
in commercial lending by these institutions, reducing potential competition in private markets.

 Middle Market Attractiveness

 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 in the middle 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, 2023, KAPC has deployed nearly $10.7 billion of capital across 359 investments in 181
portfolio companies. Our Advisor (or an affiliate thereof) has been lead agent or co-agent in approximately 75% 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 $15.0 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 June 30, 2023, approximately
66% of opportunities sourced by our Advisor and 86% 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, (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, 2023), (ii) approximately 56%
of KAPC's investments were made with repeat private equity sponsors and (iii) nearly 100 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 75% 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
0.1% 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 investments 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.

 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, infrastructure/energy
and growth capital. Kayne Anderson provides corporate and management services (such as information technology, human resources, compliance
and legal services) to the Advisor.

 As of December 31, 2023, investment vehicles managed
or advised by Kayne Anderson had over $34 billion in assets under management ("AUM") for institutional investors, family offices,
high net worth and retail clients. Kayne Anderson has over 330 professionals located across five offices across the U.S. The firm has
approximately 140 investment professionals, approximately 35 of which 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 $6.5 billion related to middle
market private credit as of December 31, 2023.

 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.

 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 investment committee review process is intended to bring the diverse experience and perspectives of the investment
committee members to the analysis and consideration of every investment. The investment committee currently consists of Terrence J. Quinn,
Vice Chairman of Kayne Anderson; Paul S. Blank, President and Chief Operating Officer of Kayne Anderson; Douglas L. Goodwillie, Co-Head
of Private Credit at Kayne Anderson; and Kenneth B. Leonard, Co-Head of Private Credit at Kayne Anderson. The 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 investment
committee meetings serve as a forum to discuss credit views and outlooks. The 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.

 Private Offerings

 We conduct private offerings
of our 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 will make a capital commitment (a "Capital
Commitment") to purchase shares of our common stock pursuant to a subscription agreement (the "Subscription Agreement")
entered into with us. Investors will be required to fund drawdowns to purchase shares of common stock up to the amount of their respective
Capital Commitments each time we deliver a notice to the investors. All purchases will generally be made pro rata in accordance with the
investors' Capital Commitments, at a per-share price as determined by our Board of Directors as of a date that is immediately
prior to the date of the applicable drawdown. The per-share price will be at least equal to net asset value, or NAV, per share
in accordance with the limitations under Section 23 of the 1940 Act.

 Following our initial closing of the private offering on February 5,
2021 (the "Initial Closing") and prior to any Liquidity Event (as defined below), our investment adviser may, in its sole
discretion, permit additional closings of the private offering. A "Liquidity Event" is defined as (a) an initial public
offering of our shares of common stock (the "Initial Public Offering") or the listing of our shares of common stock on an
exchange (together with the Initial Public Offering, an "Exchange Listing"), (b) the sale of the Company or (c) a disposition
of the Company's investments and distribution of the net proceeds (after repayment of borrowings under credit facilities and issuances
of senior unsecured notes) to the Company's investors.

 Our initial private offering
of shares of common stock was conducted in reliance on Regulation D under the Securities Act ("Regulation D"). Investors in
our initial private offering were required to be "accredited investors" as defined in Regulation D of the Securities Act.
The criteria required of Regulation D may not apply to investors in subsequent offerings.

 Following our Initial
Closing, each investor was required to make purchases of shares of common stock (each, a "Catch-up Purchase") on
one or more dates to be determined by us. The aggregate purchase amount of any Catch-up Purchase will be equal to an amount
necessary to ensure that, upon payment of the aggregate purchase amount, such investor will have contributed the same percentage of its
Capital Commitment to us as all investors whose subscriptions were accepted at previous closings. Catch-up Purchases will be
made at a per-share price as determined by our Board of Directors prior to the date of the applicable drawdown, or such other
date as may be required to comply with the provisions of the 1940 Act. In order to more fairly allocate organizational expenses among
all of our stockholders, investors subscribing after the initial drawdown will be required to pay a price per share above net asset value
reflecting a variety of factors, including, without limitation, the total amount of our organizational and other expenses.

 On December 5, 2023, the Company completed its final close of subscription
agreements with investors. As of February 22, 2024, we had entered into subscription agreements with investors for an aggregate capital
commitment of $1.047 billion to purchase shares of common stock ($269.9 million is undrawn).

 We conducted the following private offerings
of our common stock associated with these subscription agreements during the year ended December 31, 2023.

 Capital notice date

 Common Stock issue date

 March 23, 2023

 April 4, 2023

 3,010,942

 $
 50.0

 July 28, 2023

 August 8, 2023

 2,411,582

 40.6

 5,422,524

 $
 90.6

 Commitment Period

 Upon the earlier of (a) December
31, 2024 or (b) an Exchange Listing (the "Commitment Period"), investors will be released from any further obligation
to purchase additional shares of common stock with respect to a Capital Commitment. If we have not otherwise completed an Exchange
Listing by December 31, 2024, we may, subject to shareholder approval, extend the Commitment Period by an additional two years. During
the Commitment Period, no investor will be permitted to sell, assign, transfer or otherwise dispose of its shares of common stock or Capital
Commitment unless we provide our prior written consent and the transfer is otherwise made in accordance with applicable law.

 Once we have completed
the Exchange Listing, each investor will be released from any further obligation to purchase additional shares of common stock with respect
to a Capital Commitment. If we have not otherwise completed an Exchange Listing and the Commitment Period has ended (including extensions,
if any), each investor will be released from any further obligation to purchase additional shares of common stock with respect to a Capital
Commitment, except to the extent necessary to (a) pay our expenses, including management fees, any amounts that may become due under
any borrowings or other financings or similar obligations and any other liabilities, contingent or otherwise, in each case to the extent
they relate to the Commitment Period, (b) complete investments in any transactions for which there are binding written agreements
as of the end of the Commitment Period (including investments that are funded in phases), (c) fund follow-on investments made
in existing portfolio companies that, in the aggregate, do not exceed 20% of total commitments, (d) fund obligations under any guarantee
or indemnity made by us during the Commitment Period and/or (e) fund any defaulted commitments.

 As part of certain credit facilities, the
right to make capital calls of stockholders may be pledged as collateral to a lender, which will be able to call for capital contributions
upon the occurrence of an event of default under such credit facility. To the extent such an event of default does occur, stockholders
could therefore be required to fund any shortfall up to their remaining Capital Commitments, without regard to the underlying value of
their investment.

 Liquidity Event

 Our term is perpetual.
However, we intend to seek an Exchange Listing after we have substantially invested the proceeds from our Initial Capital Raise and as
soon as market conditions warrant. If we have not consummated an Exchange Listing or some other type of Liquidity Event by December 31,
2026, our Board of Directors (to the extent consistent with its fiduciary duties and subject to any necessary stockholder approvals and
applicable requirements of the 1940 Act) will direct the Company to cease making new investments and will direct the Advisor to commence
the orderly disposition of investments (the "Wind Down Period"). The Company shall be allowed to make follow-on investments
during the Wind Down Period if such investments are approved by our Board of Directors, subject to the 20% limit that applies after the
Commitment Period. Existing investments will be disposed of in an orderly manner and the proceeds of such dispositions promptly distributed
to the Company's investors or used to satisfy any amounts owed under any borrowings under credit facilities and issuances of senior
unsecured notes (the "Company Liquidation"). If any investments made by the Company are also investments made by any other
investment account managed by the Advisor or any affiliate of the Advisor, such investments shall be disposed of at the same time and
on the same terms as such other investment account.

 Shareholder Agreements

 We entered into several
agreements (collectively, the "Shareholder Agreements") with investors who participate in our private offering during our
Initial Capital Raise (each an "Initial Investor"). The Initial Investors are granted the right to invest in our Advisor.
Upon the completion of our Initial Capital Raise, investors own approximately 39% of our Advisor.

 Investment Advisory Agreement

 On February 5, 2021, we entered into an Investment
Advisory Agreement with our Advisor. Pursuant to the Investment Advisory Agreement, we pay our 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 our obligations, including waivers of the base management fee and/or incentive fee, pursuance to Section 3(c) of the
Investment Advisory Agreement. Any base management fee or incentive fee so waived will not be subject to recoupment by the Advisor. The
Investment Advisory Agreement may be terminated by either party with 60 days' written notice. On March 7, 2023, our Board approved
a one-year renewal of the Investment Advisory Agreement through March 15, 2024.

 Base Management Fee

 Prior to an Exchange
Listing, the base management fee is calculated at an annual rate of 0.90% 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.

 For services rendered
under the Investment Advisory Agreement, the base management fee is payable quarterly in arrears and calculated based on the average value,
at the end of the two most recently completed calendar quarters, of our fair market value of 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. Base management fees for any partial quarter are appropriately pro-rated.

 Incentive Fee

 We 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") is determined and paid quarterly in arrears in cash (subject to the limitations described in " Payment of
Incentive Fees " below). Our quarterly pre-incentive fee net investment income must exceed a return of 1.50% of our 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 us to receive an income incentive fee. Prior to an Exchange Listing, the income incentive fee is calculated
as follows: 100% of our pre-incentive fee net investment income for the immediately preceding calendar quarter in excess of
1.50% of our 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.

 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 an Exchange
Listing

 (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%

 Pre-incentive fee net investment income
is defined as interest income, dividend income and any other cash or non-cash income accrued during the calendar quarter, minus
operating expenses for the quarter, including the base management fee, expenses payable under the Administration Agreement, any interest
expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee. Pre-incentive fee
net investment income does not include any
realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

 Incentive Fee on Capital Gains

 Prior to an Exchange
Listing, the incentive fee on capital gains (the "capital gains incentive fee") will be calculated and payable in arrears
in cash as follows: 10% of our realized capital gains, if any, on a cumulative basis from formation through the earlier of (a) the
day before an Exchange Listing, (b) upon consummation of a Liquidity Event 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. For the purpose of computing
the capital gain incentive fee, the calculation methodology will look through derivative financial instruments or swaps as if we owned
the reference assets directly.

 Payment of Incentive Fees

 Prior to an Exchange Listing, any incentive
fees earned by the Advisor shall accrue as earned but only become payable in cash to the Advisor upon consummation of an Exchange Listing.
As of December 31, 2023, the Company had incurred incentive fees of $14.2 million that will become payable upon consummation of an Exchange
Listing. To the extent we do not complete an Exchange Listing, the incentive fees will be payable to the Advisor (a) upon consummation
of a sale of us or (b) once substantially all the proceeds from our Liquidation payable to our stockholders have been distributed
to such stockholders.

 Administration Agreement

 On February 5, 2021, we entered into an administration
agreement the ("Administration Agreement") with its Advisor, which serves as its administrator (the "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
March 7, 2023, the Board approved a one-year renewal of the Administration Agreement through March 15, 2024.

 We will 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. 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 will provide 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.

 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 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. 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 2022. 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 (once we cease to be an emerging growth company under the JOBS Act, or if later, for the year following
our first annual report required to be filed with the SEC as a public company) must obtain an audit of the effectiveness of internal
control over financial reporting performed by its 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.

 JOBS Act

 We currently are and expect to remain an "emerging
growth company," as defined in the Jumpstart Our Business Startups Act (the "JOBS Act"), until the earliest of:

 the
last day of the fiscal year ending after the fifth anniversary of an Exchange Listing occurs;

 the
end of the fiscal year in which our total annual gross revenues first exceed $1.07 billion;

 the
date on which we have, during the prior three-year period, issued more than $1.0 billion in non-convertible debt; and

 the last day of a fiscal year in which we (1) have an aggregate worldwide market value of our shares of common stock held by non-affiliates of $700 million or more, computed at the end of each fiscal year as of the last business day of our most recently completed second fiscal quarter and (2) have been an Exchange Act reporting company for at least one year (and filed at least one annual report under the Exchange Act).

 Under the JOBS Act and the Dodd-Frank Wall
Street Reform and Consumer Protection Act ("Dodd-Frank"), we are exempt from the provisions of Section 404(b) of the
Sarbanes-Oxley Act, which would require that our independent registered public accounting firm provide an attestation report on the effectiveness
of our internal control over financial reporting, until such time as we cease to be an emerging growth company and become an accelerated
filer as defined in Rule 12b-2 under the Exchange Act. This may increase the risk that material weaknesses or other deficiencies
in our internal control over financial reporting go undetected.

 Under the JOBS Act, emerging growth companies
can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have made an
irrevocable election not to take advantage of this exemption from new or revised accounting standards. We therefore are subject to the
same new or revised accounting standards as other public companies that are not emerging growth companies.

 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.

 Until and unless we are
treated as a "publicly offered regulated investment company" (within the meaning of Section 67 of the Code) as a result
of either (1) shares of common stock and our preferred stock collectively being held by at least 500 persons at all times during
a taxable year, (2) our shares of common stock being continuously offered pursuant to a public offering (within the meaning of Section 4
of the Securities Act) or (3) shares of common stock being treated as regularly traded on an established securities market for any
taxable year, for purposes of computing the taxable income of U.S. stockholders that are individuals, trusts or estates, (1) our
earnings will be computed without taking into account such U.S. stockholders' allocable shares of the management and incentive fees
paid to our investment advisor and certain of our other expenses, (2) each such U.S. stockholder will be treated as having received
or accrued a dividend from us in the amount of such U.S. stockholder's allocable share of these fees and expenses for such taxable
year, (3) each such U.S. stockholder will be treated as having paid or incurred such U.S. stockholder's allocable share of
these fees and expenses for the calendar year and (4) each such U.S. stockholder's allocable share of these fees and expenses
may be treated as miscellaneous itemized deductions by such U.S. stockholder. Miscellaneous itemized deductions are generally not
deductible by a U.S. stockholder that is an individual, trust or estate through 2025 and beginning in 2026 and deductible only to
the extent that the aggregate of such U.S. stockholder's miscellaneous itemized deductions exceeds 2% of such U.S. stockholder's
adjusted gross income for U.S. federal income tax purposes. Miscellaneous itemized deductions are not deductible at any time for
purposes of the alternative minimum tax for individuals and will be subject an annual cap for income tax purposes for individuals beginning
in 2026.

 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 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 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 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 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 systems failures could significantly disrupt our business, which may, in turn, negatively
affect the value of our shares of common stock and our ability to pay distributions.

 We and our portfolio companies and service providers may be subject
to cybersecurity risks and our business could be adversely affected by changes to data protection laws and regulations.

 Principal Risks Relating to Our Investments

 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.

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

 Our
prospective 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 prospective portfolio companies may be unable to repay or refinance outstanding principal on their loas 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.

 Risks Relating to Our Common Stock

 There is 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 in the future.

 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. 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—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 may be 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.

 The alternative reference rates that have
replaced LIBOR in our credit arrangements and other financial instruments may not yield the same or similar economic results as LIBOR
over the life of such transactions.

 The London Interbank Offered
Rate ("LIBOR") is an index rate that historically was widely used in lending transactions and was a common reference rate
for setting the floating interest rate on private loans. LIBOR was typically the reference rate used in floating-rate loans extended to
our portfolio companies.

 The ICE Benchmark Administration
("IBA") (the entity that is responsible for calculating LIBOR) ceased providing overnight, one, three, six and twelve months
USD LIBOR tenors on June 30, 2023. In addition, the United Kingdom's Financial Conduct Authority ("FCA"), which oversees the
IBA, now prohibits entities supervised by the FCA from using LIBOR, including USD LIBOR, except in very limited circumstances.

 In the United States, the
SOFR is the preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury
securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. SOFR is published by the Federal Reserve
Bank of New York each U.S. Government Securities Business Day, for transactions made on the immediately preceding U.S. Government Securities
Business Day. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar
economic results as LIBOR over the lives of such transactions.

 All of our loans that referenced LIBOR have been
amended to reference the forward-looking term rate published by CME Group Benchmark Administration Limited based on the secured overnight
financing rate ("CME Term SOFR"). CME Term SOFR rates are forward-looking rates that are derived by compounding projected
overnight SOFR rates over one, three, and six months taking into account the values of multiple consecutive, executed, one-month and three-month
CME Group traded SOFR futures contracts and, in some cases, over-the-counter SOFR Overnight Indexed Swaps as an indicator of CME Term
SOFR reference rate values. CME Term SOFR and the inputs on which it is based are derived from SOFR. Because CME Term SOFR is a relatively
new market rate, there will likely be no established trading market for credit agreements or other financial instruments when they are
issued, and an established market may never develop or may not be liquid. Market terms for instruments referencing CME Term SOFR rates
may be lower than those of later-issued CME Term SOFR indexed instruments. Similarly, if CME Term SOFR does not prove to be widely used,
the trading price of instruments referencing CME Term SOFR may be lower than those of instruments indexed to indices that are more widely
used.

 There can be no guarantee
that SOFR will not be discontinued or fundamentally altered in a manner that is materially adverse to the interests of investors in loans
referencing SOFR. If the manner in which SOFR or CME Term SOFR is calculated is changed, that change may result in a reduction of the
amount of interest payable on such loans and the trading prices of the SOFR Loans. In addition, there can be no guarantee that loans referencing
SOFR or CME Term SOFR will continue to reference those rates until maturity or that, in the future, our loans will reference benchmark
rates other than CME Term SOFR. Should any of these events occur, our loans, and the yield generated thereby, could be affected. Specifically,
the anticipated yield on our loans may not be fully realized and our loans may be subject to increased pricing volatility and market risk.

 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. 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. 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.

 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 our business and grow, 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 which 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.

 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 which may compete with our portfolio
investments. Moreover, these 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 they 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 they 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 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 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 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 the Company's affairs so that the assets of the Company 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 the Company's assets decreases, leverage will cause the Company's net asset value to decline more sharply than it otherwise
would have without leverage or with lower leverage. Similarly, any decrease in the Company's revenue would cause its net income
to decline more sharply than it would have if the Company 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 2010, 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, 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, as well as 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 Biden administration or future administrations, 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 will incur significant costs as a
result of being registered under the Exchange Act.

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

 We are required to comply with certain requirements
of the Sarbanes-Oxley Act and the related rules and regulations promulgated by the SEC but will not have to comply with certain requirements
until we have been registered under the Exchange Act for a specified period of time or cease to be an "emerging growth company."

 Upon registering our shares of common stock under the Exchange Act,
we will be subject to the Sarbanes-Oxley Act and the related rules and regulations promulgated by the SEC, and 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 expenses that
may negatively impact our financial performance and our ability to make distributions. 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.

 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 (collectively, "cyber networks") 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.

 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

 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 Federal
Open Market Committee, the committee within the U.S. Federal Reserve that sets domestic monetary policy, raised the target range for the
federal funds rate eleven times since March 2022 and to a current range of 5.25% to 5.50% as of January 2024. The U.S. Federal Reserve
has signaled that further increases could continue to happen. Rising rates generally have a negative impact on income-oriented investments
such as those in which we invest and could be adversely impacted by these actions. There is no assurance that the actions being taken
by the U.S. Federal Reserve 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 the entities.

 We may make investments in,
or loans to, companies which 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 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.

 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 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 prospective 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 prospective 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 expect to 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 is increased to the extent that the loan documents do not require
the portfolio companies to pay down the outstanding principal of such debt prior to maturity. 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 may be subject to risks under hedging
transactions and our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.

 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.
Though we do not engage in hedging transactions as a principal investment strategy, collectively, these requirements may limit our ability
to use derivatives and/or enter into certain other financial contracts.

 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.

 Risks Relating to Our Common Stock

 There is no public market
for our shares of common stock, and no market for our shares of our common stock may develop in the future.

 There is no existing trading market for our shares
of common stock, and no market for our shares of common stock may develop in the future. If developed, any such market may not be sustained.
In the absence of a trading market, holders of our shares of common stock may be unable to liquidate an investment in our shares.

 There are restrictions on the ability of
holders of our Common Stock to transfer shares in excess of the restrictions typically associated with a private offering of securities
under Regulation D and other exemptions from registration under the Securities Act, and these additional restrictions could further limit
the liquidity of an investment in our shares of common stock and the price at which holders may be able to sell the shares.

 We are relying on an exemption from registration under the Securities
Act and state securities laws in offering our shares of common stock pursuant to the Subscription Agreements. As such, absent an effective
registration statement covering our Common Stock, such shares may be resold only in transactions that are exempt from the registration
requirements of the Securities Act and with our prior consent. Our Common Stock has limited transferability which could delay, defer or
prevent a transaction or a change of control of the Company that might involve a premium price for our securities or otherwise be in the
best interest of our stockholders.

 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 the event that we enter into a Subscription Agreement with one or
more investors after the Initial Closing, each such investor will be required to make Catch-up Purchases on one or more dates
to be determined by us. Each Catch-up Purchase will dilute the ownership percentage of all investors whose subscriptions were
accepted at previous closings. As a result, each subsequent closing after the Initial Closing will result in existing stockholders experiencing
dilution as a result of Catch-up Purchases.

 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, the COVID-19
pandemic adversely impacted global commercial activity and contributed to significant volatility in financial markets.

 In addition, the large-scale
invasion of Ukraine by Russia, and resulting market volatility, could adversely affect our business, financial condition or results of
operations. In response to the conflict between Russia and Ukraine, the U.S. and other countries have imposed sanctions or other restrictive
actions against Russia. The ongoing conflict and the rapidly evolving measures in response could be expected to have a negative impact
on the economy and business activity globally and could have a material adverse effect on our portfolio companies and our business, financial
condition, cash flows and results of operations. The severity and duration of the conflict and its impact on global economic and market
conditions are impossible to predict. In addition, sanctions could also result in Russia taking counter measures or retaliatory actions
which could adversely impact our business or the business of our portfolio companies, including, but not limited to, cyberattacks targeting
private companies, individuals or other infrastructure upon which our business and the business of our portfolio companies rely.

 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.

 In addition, the recent outbreak of hostilities in the Middle East
and escalating tensions in the region may create volatility and disruption of global markets.

 We do not currently have portfolio investments with direct exposure
to the Middle East, China, Taiwan, Russia or Ukraine.

 Political, social and economic uncertainty,
including uncertainty related to the COVID-19 pandemic, 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.

 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 improved or resolved over the course of the pandemic, similar consequences could occur in the future as a result of new variants
of the virus or other infectious diseases. The COVID-19 outbreak has had, and any future outbreaks 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. Recurring COVID-19 outbreaks, including as a result of new variants of the virus, have led
to the re-introduction of public health restrictions in certain states in the United States and globally and could continue to lead to
the re-introduction of such restrictions elsewhere. 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.

 The CTO and CISO have served in various roles in
information technology and information security for over 28 and 25 years respectively and hold relevant professional certifications. The
Adviser's CCO and CFO, each hold undergraduate and graduate degrees in their respective fields, and each have over 15 and 28 years
of experience managing risk at the Company and at similar companies, including assessing cybersecurity threats.

 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

 Market Information

 Until the completion
of an Exchange Listing, if any, our outstanding shares of common stock will be offered and sold in private offerings exempt from registration
under the Securities Act under Section 4(a)(2) and Regulation D. There is no public market for our shares of common stock currently,
nor can we give any assurance that one will develop.

 Because shares of common
stock are being acquired by investors in one or more transactions "not involving a public offering," they are "restricted
securities" and may be required to be held indefinitely. Our shares of common stock may not be sold, transferred, assigned, pledged
or otherwise disposed of unless (i) our consent is granted, and (ii) the shares of common stock are registered under applicable
securities laws or specifically exempted from registration (in which case the stockholder may, at our option, be required to provide us
with a legal opinion, in form and substance satisfactory to us, that registration is not required). Accordingly, an investor must be willing
to bear the economic risk of investment in the shares of common stock until we are liquidated. No sale, transfer, assignment, pledge or
other disposition, whether voluntary or involuntary, of the shares of common stock may be made except by registration of the transfer
on our books. Each transferee will be required to execute an instrument agreeing to be bound by these restrictions and the other restrictions
imposed on the shares of common stock and to execute such other instruments or certifications as are reasonably required by us.

 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 22, 2024, we had 502 holders of record of our common
stock.

 Distributions

 The following table reflects the distributions
declared and payable for the year ended December 31, 2023 (dollars in thousands, except per share amounts).

 Total

 Date Declared

 Record Date

 Payment Date

 per Share

 March 7, 2023

 March 31, 2023

 April 14, 2023

 $
 0.47

 $
 16,891

 May 10, 2023

 June 30, 2023

 July 14, 2023

 0.53

 20,677

 August 10, 2023

 September 29, 2023

 October 13, 2023

 0.53

 21,999

 November 9, 2023

 December 29, 2023

 January 16, 2024

 0.53

 22,050

 $
 2.06

 $
 81,617

 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, 2023 (dollars in thousands,
except per share amounts).

 DRIP

 DRIP

 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 declared on November 9, 2023
with a record date of December 29, 2023 and 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.

 All of the dividends declared during the year ended December 31, 2023
were derived from ordinary income, determined on a tax basis.

 Recent Sales of Unregistered Securities

 As set forth in the table below (dollars in millions, except per share
amounts), during the year ended December 31, 2023, we issued and sold 5,422,524 shares of common stock at an aggregate offering amount
of approximately $90.6 million. 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.

 Common stock issue date

 Offering
 price per
 share

 shares issued

 April 4, 2023

 $
 16.61

 3,010,942

 $
 50.0

 August 8, 2023

 $
 16.82

 2,411,582

 40.6

 5,422,524

 $
 90.6

 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. was formed as 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.

 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 Advisory Act of 1940, as amended. In accordance with the Advisers 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. The Board consists of seven directors, four of
whom are independent.

 Our investment objective is to generate current
income and, to a lesser extent, capital appreciation. Nearly all of our debt investments are in middle market companies. We 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 issuance 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 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 have principal business activities 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 $6.5 billion related to middle market private credit as of December 31, 2023.

 Recent Developments

 On February 14, 2024, we sold
7,089,771 shares of common stock for a total aggregate offering price of $118.7 million. As of the same date, we have subscription agreements
with investors for an aggregate capital commitment of $1,046.9 million to purchase shares of common stock ($269.9 million is undrawn).

 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 substantially all of our investments. Once an investment
has been made, our Advisor closely monitors portfolio investments and takes a proactive approach identifying and addressing 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, 2023, we had investments in
76 portfolio companies with an aggregate fair value of approximately $1,363 million, and unfunded commitments to these portfolio companies
of $148 million, and our portfolio consisted of 97.1% first lien senior secured loans, 1.6% junior debt and 1.3% equity investments.

 As of December 31, 2023, our weighted average
yield of debt and income producing securities at fair value, and amortized cost was 12.5% and 12.7%, respectively, and 100% of our debt
investments were at floating rates.

 As of December 31, 2023, our portfolio was invested
across 26 different industries (Global Industry Classification "GICS", Level 3 – Industry). The largest industries in
our portfolio as of December 31, 2023 were Trading Companies & Distributors, Food Products and Commercial Services & Supplies,
which represented, as a percentage of our portfolio of long-term investments, 15.3%, 11.5% and 9.4%, respectively, based on fair value.
We are generalist investors and the industries in which our portfolio companies operate may change over time.

 As of December 31, 2023, our average position
sized based on commitment (at the portfolio company level) was $20.1 million, and the weighted average and median last twelve months
("LTM") EBITDA of our portfolio companies was $51.3 million and $39.5 million, respectively, based on fair value.

 As of December 31, 2023, the weighted average
loan-to-enterprise-value ("LTEV") of our debt investments at the time of our initial investment was 44.0%, based on par. 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, 2023, we 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, 2023, our portfolio companies
had an average leverage of 4.3x and average interest leverage of 2.7x, the calculations for which are based on the most recent quarter
end or latest available information from the portfolio companies.

 As of December 31, 2023, 100% of our debt investments
included at least one financial maintenance covenant.

 Listed below are our top ten portfolio companies
and industries represented as a percentage of total long-term investments as of December 31, 2023:

 Portfolio Company

 Industry

 Fair Value

 Percentage of
 long-term
 investments

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 $
 34.7

 2.5
 %

 Genuine Cable Group, LLC

 $
 34.5

 2.5
 %

 American Equipment Holdings LLC

 $
 34.3

 2.5
 %

 IF&P Foods, LLC (FreshEdge)

 $
 33.8

 2.5
 %

 BR PJK Produce, LLC (Keany)

 $
 32.5

 2.4
 %

 $
 31.8

 2.3
 %

 Improving Acquisition LLC

 $
 31.5

 2.3
 %

 Vitesse Systems Parent, LLC

 $
 31.2

 2.3
 %

 CGI Automated Manufacturing, LLC

 $
 31.1

 2.3
 %

 Fastener Distribution Holdings, LLC

 $
 29.6

 2.2
 %

 $
 325.0

 23.8
 %

 Our investment activity for the years ended
December 31, 2023 and 2022 is presented below (information presented herein is at par value unless otherwise indicated).

 2023

 2022

 New investments:

 Gross new investments commitments

 $
 329.2

 $
 771.1

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

 (123.0
)

 (125.9
)

 Net investment commitments

 206.2

 645.2

 Principal amount of investments funded (2):

 Private credit investments

 $
 404.2

 $
 714.1

 Liquid credit investments

 -

 -

 Preferred and common equity investments

 0.6

 6.0

 Total principal amount of investments funded

 404.8

 720.1

 Principal amount of investments sold / repaid (2):

 Private credit investments

 (196.6
)

 (126.4
)

 Liquid credit investments

 -

 -

 Total principal amount of investments sold or repaid

 (196.6
)

 (126.4
)

 Number of new investment commitments

 Average new investment commitment amount

 $
 7.7

 $
 9.1

 Weighted average maturity for new investment commitments (3)

 3.9 years

 4.1 years

 Percentage of new debt investment commitments at floating rates

 %

 99.1
 %

 Percentage of new debt investment commitments at fixed rates

 %

 0.9
 %

 Weighted average interest rate of new investment commitments (4)

 11.7
 %

 10.8
 %

 Weighted average spread over SOFR of new floating rate investment commitments

 6.3
 %

 6.6
 %

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

 11.9
 %

 9.4
 %

 (1)

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

 (2)

 Does not include restructured activity.

 (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.

 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, 2023 and 2022:

2023

2022

 15.3
 %

 12.9
 %

 11.5
 %

 10.9
 %

 9.4
 %

 11.9
 %

 Health care providers & services

 7.4
 %

 9.8
 %

 Containers & packaging

 7.2
 %

 4.5
 %

 6.3
 %

 4.1
 %

 Professional services

 4.5
 %

 5.5
 %

 3.8
 %

 3.9
 %

 Machinery

 3.8
 %

 2.2
 %

 Leisure products

 3.3
 %

 2.3
 %

 3.3
 %

 4.1
 %

 Chemicals

 3.1
 %

 2.9
 %

 Personal care products

 3.0
 %

 1.7
 %

 2.5
 %

 3.0
 %

 Insurance

 2.2
 %

 1.3
 %

 Wireless telecommunication services

 2.1
 %

 2.5
 %

 Automobile components

 2.0
 %

 2.3
 %

 Building products

 2.0
 %

 3.4
 %

 Household durables

 1.5
 %

 1.8
 %

 Health care equipment & supplies

 1.5
 %

 1.8
 %

 Household products

 1.2
 %

 1.6
 %

 Biotechnology

 0.9
 %

 1.0
 %

 Specialty retail

 0.7
 %

 0.7
 %

 Capital markets

 0.6
 %

 -
 %

 Pharmaceuticals

 0.5
 %

 0.6
 %

 Diversified telecommunication services

 0.4
 %

 2.6
 %

 Electronic equipment, instruments & components

 -
 %

 0.3
 %

 Asset management & custody banks

 -
 %

 0.4
 %

 Total

 100.0
 %

 100.0
 %

 Results of Operations

 The comparison for the years ended December 31, 2022 and 2021 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, 2022.

 For the years ended December 31, 2023 and 2022, our total investment
income was derived from our portfolio of investments.

 The following table represents the operating
results for the years ended December 31, 2023 and 2022.

 2023

 2022

 Total investment income

 $
 161.0

 $
 74.8

 Less: Net expenses

 (76.2
)

 (34.6
)

 Net investment income

 84.8

 40.2

 Net realized gains (losses) on investments

 (10.7
)

 0.1

 Net change in unrealized gains (losses) on investments

 2.9

 5.5

 Net increase (decrease) in net assets resulting from operations

 $
 77.0

 $
 45.8

 Investment Income

 Investment income for the years ended December 31, 2023 and 2022 totaled
$161.0 million and $74.8 million, respectively, and consisted primarily of interest income on our debt investments. For the years ended
December 31, 2023 and 2022, we had $1.7 million and $0.2 million, respectively, of PIK interest included in interest income. As of December
31, 2023, we had one debt investment on non-accrual status. As of December 31, 2022, all debt investments were income producing, and there
were no loans on non-accrual status.

 Expenses

 Operating expenses for the years ended December
31, 2023 and 2022, were as follows:

 2023

 2022

 Interest and debt financing expenses

 $
 52.3

 $
 20.3

 Management fees

 11.4

 7.1

 Incentive fees

 9.4

 4.7

 Directors fees

 0.6

 0.5

 Other operating expenses

 2.5

 2.0

 Total expenses

 $
 76.2

 $
 34.6

 Net Realized Gains (Losses) on Investments

 In 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, 2023 and 2022, net unrealized
gains (losses) on our investment portfolio were comprised of the following:

 2023

 2022

 Unrealized gains on investments

 $
 13.4

 $
 15.1

 Unrealized (losses) on investments

 (10.5
)

 (9.6
)

 Net change in unrealized gains (losses) on investments

 $
 2.9

 $
 5.5

 For these years ended December 31, 2023 and 2022,
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

 2023

 Portfolio Company

 Arborworks Acquisition LLC

 $
 2.5

 BLP Buyer, Inc. (Bishop Lifting Products)

 0.9

 Silk Holdings III Corp. (Suave)

 0.9

 Engineered Fastener Company, LLC (EFC International)

 0.8

 Vitesse Systems Parent, LLC

 0.8

 Other portfolio companies unrealized gains

 7.5

 Other portfolio companies unrealized (losses)

 (4.6
)

 Trademark Global LLC

 (0.4
)

 LSL Industries, LLC (LSL Healthcare)

 (0.5
)

 Siegel Egg Co., LLC

 (1.4
)

 (1.5
)

 Centerline Communications, LLC

 (2.1
)

 Total Change in Unrealized Gain (Loss), net

 $
 2.9

 For the year ended

 2022

 Portfolio Company

 AIDC Intermediate Co 2, LLC (Peak Technologies)

 $
 1.0

 1.0

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

 0.9

 IF&P Foods, LLC (FreshEdge)

 0.8

 CGI Automated Manufacturing, LLC

 0.8

 Other portfolio companies unrealized gains

 10.6

 Other portfolio companies unrealized (losses)

 (4.4
)

 4 Over International, LLC

 (0.4
)

 Curio Brands, LLC

 (0.4
)

 PH Beauty Holdings III, Inc.

 (0.5
)

 Trademark Global LLC

 (1.0
)

 Arborworks Acquisition LLC

 (2.9
)

 Total Change in Unrealized Gain (Loss), net

 $
 5.5

 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 under 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, 2023 and 2022, our asset coverage ratios were 198% and 203%. 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 undrawn capital commitments and 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, 2023, we had $75 million Notes
outstanding, $620.8 million borrowed under our credit facilities and cash and cash equivalents of $46.9 million (including short-term
investments). As of February 22, 2024, we had $75 million Notes outstanding, $600.0 million borrowed under our credit facilities and cash
and cash equivalents of $29.8 million (including short-term investments).

 Capital Contributions

 During the years ended December 31, 2023 and 2022,
we issued and sold 5,422,524 and 16,305,034 shares of our common stock, respectively, related to capital called at an aggregate purchase
price of $90.6 million and $268.2 million, respectively. On December 5, 2023, we completed our final close of subscription agreements
with investors. As of February 22, 2024, we had aggregate capital commitments of $1,046.9 million, and we had undrawn capital commitments
of $269.9 million from investors ($777.0 million or 74.2% funded).

 Senior Unsecured Notes

 As of December 31, 2023, 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: As of December
31, 2023, we are party to a senior secured revolving credit facility (the "Corporate Credit Facility"), that has a total
commitment of $400 million. The facility's commitment termination date and the final maturity date are February 18, 2026 and February
18, 2027, respectively. The Corporate Credit Facility also provides for a feature that allows us, under certain circumstances, to increase
the overall size of the Corporate Credit Facility to a maximum of $550 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 2.35% per annum or an "alternate
base rate" (as defined in the agreements governing the Corporate Credit Facility) plus an applicable spread of 1.25%. 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: As of December
31, 2023, 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"), that has a total commitment of $455
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 and the stated maturity date for the Revolving Funding Facility are February 18, 2025 and February 18, 2027, respectively.
The interest rate on the Revolving Funding Facility is equal to daily SOFR plus 2.75% 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: On December 22, 2023, we and our wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing II,
LLC ("KABDCF II"), entered into a new senior secured revolving credit facility (the "Revolving Funding Facility II").
The Revolving Funding Facility II has an initial commitment of $150 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 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.

 Subscription Credit Agreement: As of December
31, 2023, we are party to a senior secured revolving credit agreement that includes a capital call facility (the "Subscription Credit
Agreement"). The Subscription Credit Agreement permits us to elect the commitment amount each quarter to borrow up to $50 million,
subject to availability under the borrowing base which is calculated based on the unused capital commitments of the investors meeting
various eligibility requirements. The Subscription Credit Agreement has a maximum commitment of $50 million and the interest rate under
the facility is equal to Term SOFR plus 2.25% (subject to a 0.275% floor). We are also required to pay a commitment fee of 0.25% per annum
on the unused portion of the Subscription Credit Agreement. We also pay an extension fee of 0.075% per quarter on the elected commitment
amount on the first day of each calendar quarter. The Subscription Credit Agreement will expire on December 31, 2024.

 Contractual Obligations

 A summary of our significant contractual
principal payment obligations related to the repayment of our outstanding indebtedness at December 31, 2023 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

 $
 -

 $
 -

 $
 75.0

 $
 -

 Corporate Credit Facility

 234.0

 -

 -

 234.0

 -

 Revolving Funding Facility

 306.0

 -

 -

 306.0

 -

 Revolving Funding Facility II

 70.0

 -

 -

 70.0

 -

 Subscription Credit Agreement

 10.8

 -

 10.8

 -

 -

 Total contractual obligations

 $
 695.8

 $
 -

 $
 10.8

 $
 685.0

 $
 -

 Off-Balance Sheet Arrangements

and 2022, we had an aggregate $147.9 million and $149.3 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, 2023 and 2022, 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 private 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 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. On March 7, 2023, the Board approved a one-year renewal
of the Investment Advisory Agreement through March 15, 2024. Our Advisor will agree to serve as our investment advisor in accordance
with the terms of our Investment Advisory Agreement. Payments under our Investment Advisory Agreement in each reporting period will consist
of the base management fee equal to a percentage of the fair market value of 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 as well as an incentive fee based on our performance.

 For services rendered under the Investment Advisory Agreement, we will
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 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 will also pay an incentive fee on income and an incentive
fee on capital gains to our Advisor.

 Prior to an initial public offering or listing
on an exchange of our common stock (an "exchange listing"), any incentive fees earned by the Advisor shall accrue as earned
but only become payable in cash to the Advisor upon consummation of an exchange listing. To the extent the Company does not complete
an exchange listing, the incentive fees will be payable to the Advisor (a) upon consummation of a sale of the Company or (b) once
substantially all proceeds from a Company liquidation payable to the Company's common stockholders have been distributed to such
stockholders.

 Administration Agreement. On February
5, 2021, we entered into the Administration Agreement with our Advisor, which serves as our 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 March 7, 2023, the Board
approved a one-year renewal of the Administration Agreement through March 15, 2024.

 We will 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. 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 will provide 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.

 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, 2023 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, 2023 in this calculation.

 Change in Interest Rates

 Increase
 (Decrease)
 in Interest
 Income

 Increase
 (Decrease)
 in Interest
 Expense

 Net Increase
 (Decrease)
 in Net
 Income

 Down 200 basis points

 $
 (26.9
)

 (12.4
)

 (14.5
)

 Down 100 basis points

 $
 (13.5
)

 (6.2
)

 (7.3
)

 Up 100 basis points

 $
 13.5

 6.2

 7.3

 Up 200 basis points

 $
 26.9

 12.4

 14.5

 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

 Index 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, 2023 and 2022

 Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2023, 2022 and 2021

 Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022 and 2021

 Consolidated Schedules of Investments as of December 31, 2023 and 2022

 F- 1

 Report of Independent Registered Public Accounting
Firm

 To the Board of Directors and Shareholders of

 Opinion on the Financial Statements

 We have audited the accompanying consolidated
statements of assets and liabilities, including the consolidated schedules of investments, of Kayne Anderson BDC Inc. and subsidiaries
(the "Company") as of December 31, 2023, and December 31, 2022, the related consolidated statements of operations, changes
in net assets and cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively
referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly,
in all material respects, the financial position of the Company as of December 31, 2023, and December 31, 2022, 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, 2023, in conformity
with accounting principles generally accepted in the United States of America.

 Basis for Opinion

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

 We conducted our audits of these consolidated
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

 Our audits 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, 2023, by correspondence with the custodian. We believe that our audits provides a reasonable basis
for our opinion.

 /s/ PricewaterhouseCoopers LLP

 Los Angeles, California

 February 29, 2024

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

 F- 2

 Consolidated Statements of Assets and Liabilities

 2023

 2022

 Assets:

 Investments, at fair value:

 Long-term investments (amortized cost of $ 1,343,223 and $ 1,147,788)

 $

 $

 Short-term investments (amortized cost of $ 12,802 and $ 9,847)

 9,847

 Cash and cash equivalents

 34,069

 8,526

 Receivable for principal payments on investments

 Interest receivable

 12,874

 10,444

 Prepaid expenses and other assets

 Total Assets

 $
 1,423,666

 $
 1,194,394

 Liabilities:

 Corporate Credit Facility (Note 6)

 $
 234,000

 $
 269,000

 Unamortized Corporate Credit Facility issuance costs

 ( 1,715
)

 ( 2,517
)

 Revolving Funding Facility (Note 6)

 306,000

 200,000

 Unamortized Revolving Funding Facility issuance costs

 ( 2,019
)

 ( 2,827
)

 Revolving Funding Facility II (Note 6)

 70,000

 -

 Unamortized Revolving Funding Facility II issuance costs

 ( 1,805
)

 -

 Subscription Credit Agreement (Note 6)

 10,750

 108,000

 Unamortized Subscription Credit Facility issuance costs

 ( 41
)

 ( 65
)

 Notes (Note 6)

 -

 Unamortized notes issuance costs

 ( 851
)

 -

 Payable for investments purchased

 -

 Distributions payable

 22,050

 15,428

 Management fee payable

 2,996

 2,415

 Incentive fee payable

 14,195

 4,762

 Accrued expenses and other liabilities

 11,949

 7,201

 Accrued excise tax expense

 -

 Total Liabilities

 $
 740,610

 $
 602,353

 Commitments and contingencies (Note 8)

 Net Assets:

 Common Shares, $ 0.001 par value; 100,000,000 shares authorized; 41,603,666 and 35,879,291 as of December 31, 2023 and December 31, 2022, respectively, issued and outstanding

 $

 $

 Additional paid-in capital

 669,990

 574,540

 Total distributable earnings (deficit)

 13,024

 17,465

 Total Net Assets

 $
 683,056

 $

 Total Liabilities and Net Assets

 $
 1,423,666

 $
 1,194,394

 Net Asset Value Per Common Share

 $
 16.42

 $
 16.50

 See accompanying notes to consolidated
financial statements.

 F- 3

 Consolidated Statements of Operations

 For the years ended December 31,

 2023

 2022

 2021

 Income:

 Investment income from investments:

 Interest income

 $
 160,433

 $
 74,829

 $
 18,755

 Dividend income

 -

 -

 Total Investment Income

 161,004

 74,829

 18,755

 Expenses:

 Management fees

 11,433

 7,147

 2,095

 Incentive fees

 9,433

 4,698

 Interest expense

 52,314

 20,292

 4,455

 Professional fees

 Directors fees

 Offering costs

 -

 Excise tax

 -

 -

 Initial organization costs

 -

 -

 Other general and administrative expenses

 1,604

 1,379

 Total Expenses

 76,187

 34,650

 8,628

 Net Investment Income (Loss)

 84,817

 40,179

 10,127

 Realized and unrealized gains (losses) on investments

 Net realized gains (losses):

 Investments

)

 Total net realized gains (losses)

)

 Net change in unrealized gains (losses):

 Investments

 2,944

 5,502

 Total net change in unrealized gains (losses)

 2,944

 5,502

 Total realized and unrealized gains (losses)

 ( 7,742
)

 5,586

 12,161

 Net Increase (Decrease) in Net Assets Resulting from Operations

 $

 $

 $

 Per Common Share Data:

 Basic and diluted net investment income per common share

 $
 2.16

 $
 1.48

 $
 0.94

 Basic and diluted net increase in net assets resulting from operations

 $
 1.96

 $
 1.68

 $
 2.08

 Weighted Average Common Shares Outstanding - Basic and Diluted

 39,250,232

 27,184,302

 10,718,083

 See accompanying notes to consolidated
financial statements.

 F- 4

 Consolidated Statements of Changes in Net Assets

 For the years ended December 31,

 2023

 2022

 2021

 Increase (Decrease) in Net Assets Resulting from Operations:

 Net investment income (loss)

 $
 84,817

 $
 40,179

 $
 10,127

 Net realized gains (losses) on investments

)

 Net change in unrealized gains (losses) on investments

 2,944

 5,502

 Net Increase (Decrease) in Net Assets Resulting from Operations

 Decrease in Net Assets Resulting from Stockholder Distributions

 Dividends and distributions to stockholders

 ( 81,617
)

 ( 39,553
)

 ( 10,514
)

 Net Decrease in Net Assets Resulting from Stockholder Distributions

 ( 81,617
)

 ( 39,553
)

 ( 10,514
)

 Increase in Net Assets Resulting from Capital Share Transactions

 Issuance of common shares

 90,575

 268,218

 299,501

 Reinvestment of distributions

 4,982

 5,642

 1,492

 Net Increase in Net Assets Resulting from Capital Share Transactions

 95,557

 273,860

 300,993

 Total Increase (Decrease) in Net Assets

 91,015

 280,072

 312,767

 Net Assets, Beginning of Period

 311,969

 ( 798
)

 Net Assets, End of Period

 $
 683,056

 $

 $
 311,969

 F- 5

 Consolidated Statements of Cash Flows

 For the years ended December 31,

 2023

 2022

 2021

 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

 10,686

 ( 84
)

 ( 332
)

 Net change in unrealized (gains)/losses on investments

 ( 2,944
)

 ( 5,502
)

 ( 11,829
)

 Net accretion of discount on investments

 ( 9,777
)

 ( 4,819
)

 ( 1,175
)

 Sales (purchases) of short-term investments, net

 ( 2,955
)

 ( 6,173
)

 ( 3,674
)

 Purchases of portfolio investments

 ( 391,341
)

 ( 718,236
)

 ( 647,460
)

 Proceeds from sales of investments and principal repayments

 196,649

 142,118

 82,524

 Paid-in-kind interest from portfolio investments

 ( 1,652
)

 ( 151
)

 ( 173
)

 Amortization of deferred financing cost

 2,694

 2,122

 Increase/(decrease) in operating assets and liabilities:

 (Increase)/decrease in interest and dividends receivable

 ( 2,430
)

 ( 8,311
)

 ( 2,133
)

 (Increase)/decrease in deferred offering costs

 -

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

 ( 111
)

 -

 Increase/(decrease) in excise tax payable

 -

 -

 (Increase)/decrease in prepaid expenses and other assets

 ( 199
)

 Increase/(decrease) in payable for investments purchased

 ( 956
)

 -

 Increase/(decrease) in management fees payable

 1,463

 Increase/(decrease) in incentive fee payable

 9,433

 4,697

 Increase/(decrease) in payable to affiliate

 -

 -

 ( 1,075
)

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

 -

 ( 6
)

 ( 135
)

 Increase/(decrease) in accrued other general and administrative expenses

 4,748

 4,672

 2,529

 Net cash used in operating activities

 ( 110,053
)

 ( 541,770
)

 ( 559,137
)

 Cash Flows from Financing Activities:

 Borrowings/(payments) on Corporate Credit Facility, net

 ( 35,000
)

 269,000

 -

 Borrowings on Revolving Funding Facility, net

 106,000

 200,000

 -

 Borrowings on Revolving Funding Facility II, net

 70,000

 -

 -

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

 -

 ( 162,000
)

 162,000

 Borrowings/(payments) on Subscription Credit Agreement, net

 ( 97,250
)

 3,000

 105,000

 Payments of debt issuance costs

 ( 3,716
)

 ( 6,859
)

 ( 932
)

 Distributions paid in cash

 ( 70,013
)

 ( 23,098
)

 ( 4,407
)

 Proceeds from issuance of common shares

 90,575

 268,218

 299,501

 Proceeds from issuance of Notes

 -

 -

 Net cash provided by financing activities

 135,596

 548,261

 561,162

 Net increase in cash and cash equivalents

 25,543

 6,491

 2,025

 Cash and cash equivalents, beginning of period

 8,526

 2,035

 Cash and cash equivalents, end of period

 $
 34,069

 $
 8,526

 $
 2,035

 Supplemental and Non-Cash Information:

 Interest paid during the period

 $
 44,384

 $
 14,211

 $
 2,346

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

 $
 4,982

 $
 5,642

 $
 1,492

 F- 6

 (amounts in 000's, except number of shares,
units)

 /

 Fair

 (2)

 Rate

 Date

 Par

 Cost (3)(4)

 Value

 Debt and Equity Investments

 Private Credit Investments (5)

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

 (6)

 senior secured revolving loan

 11.51 % (S + 6.00 %)

 12/5/2028

 $

 -

 $

 -

 $

 -

 0.0

 %

 loan

 11.51 % (S + 6.00 %)

 12/5/2028

 18,494

 18,066

 18,679

 2.7

 %

 Fastener Distribution Holdings, LLC

 loan

 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.

 loan

 8/31/2027

 5,352

 5,281

 5,272

 0.8

 %

 8/31/2027

 1,102

 1,087

 1,086

 0.2

 %

 Vitesse Systems Parent, LLC

 loan

 12.63 % (S + 7.00 %)

 12/22/2028

 31,208

 30,430

 31,208

 4.6

 %

 85,748

 83,963

 85,837

 12.6

 %

 Automobile components

 Speedstar Holding LLC

 loan

 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.

 loan

 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 %)

 12/21/2028

 -

 -

 -

 0.0

 %

 loan

 12.46 % (S + 7.00 %)

 12/21/2028

 11,618

 11,197

 11,850

 1.7

 %

 11,618

 11,197

 11,850

 1.7

 %

 Building products

 Ruff Roofers Buyer, LLC

 loan

 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

 %

 First lien senior secured revolving loan

 11.08 % (S + 5.75 %)

 11/19/2029

 -

 -

 -

 0.0

 %

 Eastern Wholesale Fence

 loan

 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.

 loan

 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.)

 loan

 10.61 % (S + 5.00 %)

 8/30/2024

 1,274

 1,271

 1,274

 0.2

 %

 Fralock Buyer LLC

 loan

 4/17/2024

 11,654

 11,628

 11,567

 1.7

 %

 4/17/2024

 0.1

 %

 Shrieve Chemical Company, LLC

 loan

 11.90 % (S + 6.38 %)

 12/2/2024

 8,720

 8,628

 8,720

 1.3

 %

 USALCO, LLC

 loan

 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)

 loan

 12.01 % (S + 6.50 %)

 1/29/2026

 10,158

 9,994

 10,158

 1.5

 %

 Allentown, LLC

 loan

 7,586

 7,535

 7,586

 1.1

 %

 1,370

 1,354

 1,370

 0.2

 %

 13.50 % (P + 5.00 %)

 0.0

 %

 American Equipment Holdings LLC

 loan

 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

 %

 Arborworks Acquisition LLC

 (8)(9)(10)

 loan

 11/6/2028

 4,688

 4,688

 4,688

 0.7

 %

senior secured revolving loan

 11/6/2028

 1,253

 1,253

 1,253

 0.2

 %

 BLP Buyer, Inc. (Bishop Lifting Products)

 loan

 11.11 % (S + 5.75 %)

 12/22/2029

 26,099

 25,549

 26,099

 3.8

 %

 11.11 % (S + 5.75 %)

 12/22/2025

 -

 -

 -

 0.0

 %

 11.11 % (S + 5.75 %)

 12/22/2029

 0.0

 %

 Gusmer Enterprises, Inc.

 loan

 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

 loan

 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

 loan

 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

 %

 F- 7

 /

 Fair

 (2)

 Rate

 Date

 Par

 Cost (3)(4)

 Value

 Containers
 & packaging

 Carton
 Packaging Buyer, Inc. (Century Box)

 First

 11.39 % (S + 6.00 %)

 10/30/2028

 24,261

 23,605

 24,262

 3.6

 %

 First

 11.39 % (S + 6.00 %)

 10/30/2028

 -

 -

 -

 0.0

 %

 Drew
 Foam Companies, Inc.

 First

 12.75 % (S + 7.25 %)

 11/5/2025

 7,052

 6,997

 6,999

 1.0

 %

 First

 12.80 % (S + 7.25 %)

 11/5/2025

 20,045

 19,789

 19,895

 2.9

 %

 FCA,
 LLC (FCA Packaging)

 First

 11.90 % (S + 6.50 %)

 7/18/2028

 18,673

 18,419

 19,047

 2.8

 %

 First

 11.90 % (S + 6.50 %)

 7/18/2028

 -

 -

 -

 0.0

 %

 Innopak
 Industries, Inc.

 First

 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)

 First

 11.00 % (S + 5.50 %)

 1/31/2026

 5,195

 5,140

 5,196

 0.8

 %

 5,195

 5,140

 5,196

 0.8

 %

 Food

 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

 %

 BR
 PJK Produce, LLC (Keany)

 First

 11.50 % (S + 6.00 %)

 11/14/2027

 29,564

 28,973

 29,564

 4.3

 %

 First

 11/14/2027

 2,938

 2,812

 2,938

 0.4

 %

 City
 Line Distributors, LLC

 First

 8/31/2028

 8,895

 8,576

 8,895

 1.3

 %

 First

 3/3/2025

 -

 -

 -

 0.0

 %

 First

 8/31/2028

 -

 -

 -

 0.0

 %

 Gulf
 Pacific Holdings, LLC

 First

 11.25 % (S + 5.75 %)

 20,180

 19,847

 20,079

 2.9

 %

 First

 11.38 % (S + 5.75 %)

 1,701

 1,618

 1,693

 0.2

 %

 First

 11.29 % (S + 5.75 %)

 2,697

 2,602

 2,683

 0.4

 %

 IF&P
 Foods, LLC (FreshEdge)

 First

 11.07 % (S + 5.63 %)

 27,245

 26,684

 26,904

 4.0

 %

 First

 11.48 % (S + 6.00 %)

 0.0

 %

 First

 11.07 % (S + 5.63 %)

 4,045

 3,969

 3,994

 0.6

 %

 First

 10.91 % (S + 5.63 %)

 1,759

 1,690

 1,737

 0.3

 %

 J&K
 Ingredients, LLC

 First

 11.63 % (S + 6.25 %)

 11/16/2028

 11,581

 11,295

 11,581

 1.7

 %

 Siegel
 Egg Co., LLC

 First

 11.99 % (S + 6.50 %)

 12/29/2026

 15,466

 15,290

 14,616

 2.1

 %

 First

 11.99 % (S + 6.50 %)

 12/29/2026

 2,594

 2,557

 2,451

 0.4

 %

 Worldwide
 Produce Acquisition, LLC

 First

 11.60 % (S + 6.25 %)

 1/18/2029

 0.1

 %

 First

 11.60 % (S + 6.25 %)

 4/18/2024

 -

 -

 -

 0.0

 %

 First

 11.60 % (S + 6.25 %)

 1/18/2029

 0.0

 %

 First

 11.60 % (S + 6.25 %)

 1/18/2029

 2,860

 2,786

 2,832

 0.4

 %

 154,125

 150,750

 152,556

 22.3

 %

 Health
 care providers & services

 Brightview,
 LLC

 First

 12,870

 12,855

 12,645

 1.9

 %

 First

 1,719

 1,714

 1,689

 0.3

 %

 First

 0.1

 %

 Guardian
 Dentistry Partners

 First

 8,057

 7,929

 8,057

 1.2

 %

 First

 15,682

 15,464

 15,682

 2.3

 %

 First

 5,808

 5,808

 5,808

 0.9

 %

 Guided
 Practice Solutions: Dental, LLC (GPS)

 First

 11.72 % (S + 6.25 %)

 12/29/2025

 6,475

 6,056

 6,475

 0.9

 %

 Light
 Wave Dental Management LLC

 First

 12.35 % (S + 7.00 %)

 6/30/2029

 2,181

 2,099

 2,181

 0.3

 %

 First

 12.35 % (S + 7.00 %)

 6/30/2029

 22,423

 21,834

 22,423

 3.3

 %

 SGA
 Dental Partners Holdings, LLC

 First

 11.67 % (S + 6.00 %)

 11,828

 11,683

 11,828

 1.7

 %

 First

 1,681

 1,563

 1,681

 0.2

 %

 First

 11.67 % (S + 6.00 %)

 11,024

 10,856

 11,024

 1.6

 %

 First

 11.67 % (S + 6.00 %)

 4/19/2024

 -

 -

 -

 0.0

 %

 First

 11.67 % (S + 6.00 %)

 -

 -

 -

 0.0

 %

 100,522

 98,635

 100,254

 14.7

 %

 F- 8

 /

 Fair

 (2)

 Rate

 Date

 Par

 Cost (3)(4)

 Value

 Health care equipment & supplies

 LSL Industries, LLC (LSL Healthcare)

 loan

 12.15 % (S + 6.50 %)

 11/3/2027

 19,529

 18,911

 19,334

 2.8

 %

 12.15 % (S + 6.50 %)

 11/3/2024

 -

 -

 -

 0.0

 %

 12.15 % (S + 6.50 %)

 11/3/2027

 -

 -

 -

 0.0

 %

 19,529

 18,911

 19,334

 2.8

 %

 Household durables

 Curio Brands, LLC

 loan

 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)

 loan

 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

 loan

 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)

 loan

 11.29 % (S + 5.75 %)

 9/30/2025

 20,444

 20,122

 20,342

 3.0

 %

 Improving Acquisition LLC

 loan

 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

 %

 Leisure products

 BCI Burke Holding Corp.

 loan

 11.11 % (S + 5.50 %)

 12/14/2027

 15,373

 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.)

 loan

 12.29 % (S + 6.75 %)

 4,420

 4,325

 4,398

 0.6

 %

 MacNeill Pride Group

 loan

 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

 loan

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

 11,798

 11,776

 10,736

 1.6

 %

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

 2,630

 2,627

 2,393

 0.3

 %

 46,330

 45,911

 45,103

 6.6

 %

 Machinery

 Pennsylvania Machine Works, LLC

 loan

 3/6/2027

 1,908

 1,896

 1,908

 0.3

 %

 PVI Holdings, Inc

 loan

 12.16 % (S + 6.77 %)

 1/18/2028

 23,895

 23,602

 24,074

 3.5

 %

 Techniks Holdings, LLC / Eppinger Holdings Germany GMBH

 (6)

 loan

 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

 %

 Personal care products

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

 loan

 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.

 loan

 10.65 % (S + 5.00 %)

 9/28/2025

 9,442

 9,278

 9,183

 1.3

 %

 Silk Holdings III Corp. (Suave)

 loan

 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

 loan

 2/12/2027

 6,781

 6,744

 6,832

 1.0

 %

 2/12/2027

 -

 -

 -

 0.0

 %

 6,781

 6,744

 6,832

 1.0

 %

 F- 9

 Fair

 (2)

 Rate

 Date

 Par

 Cost (3)(4)

 Value

 Professional
 services

 Over International, LLC

 First lien senior
 secured loan

 12.46 % (S + 7.00 %)

 12/7/2026

 19,438

 18,757

 19,438

 2.8
 %

 DISA
 Holdings Corp. (DISA)

 senior secured delayed draw loan

 10.84 % (S + 5.50 %)

 3,714

 3,578

 3,714

 0.5
 %

 loan

 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
 %

 senior secured revolving loan

 13.00 % (S + 7.50 %)

 12/5/2027

 2,544

 2,494

 2,544

 0.4
 %

 61,792

 60,054

 61,792

 9.0
 %

 AIDC
 Intermediate Co 2, LLC (Peak Technologies)

 senior secured loan

 11.80 % (S + 6.25 %)

 7/22/2027

 34,650

 33,736

 34,650

 5.1
 %

 Specialty
 retail

 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
 %

 senior secured delayed draw loan

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

 5/1/2024

 -

 -

 -

 0.0
 %

 9,210

 9,022

 8,911

 1.3
 %

 Textiles,
 apparel & luxury goods

 American
 Soccer Company, Incorporated (SCORE)

 12.75 % (S + 7.25 %)

 7/20/2027

 29,816

 29,317

 29,145

 4.3
 %

 loan

 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

 senior secured loan

 13.00 % (S + 7.50 %)

 8/9/2026

 6,849

 6,758

 6,729

 1.0
 %

 44,693

 44,011

 43,854

 6.4
 %

 Trading
 companies & distributors

 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
 %

 loan

 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
 %

 loan

 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
 %

 loan

 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
 %

 loan

 11.20 % (S + 5.75 %)

 3/1/2029

 -

 -

 -

 0.0
 %

 11.20 % (S + 5.75 %)

 3/1/2029

 9,491

 9,099

 9,491

 1.4
 %

 OAO
 Acquisitions, Inc. (BearCom)

 11.61 % (S + 6.25 %)

 12/27/2029

 21,370

 20,979

 21,370

 3.1
 %

 11.61 % (S + 6.25 %)

 12/27/2025

 -

 -

 -

 0.0
 %

 loan

 11.61 % (S + 6.25 %)

 12/27/2029

 -

 -

 -

 0.0
 %

 United
 Safety & Survivability Corporation (USSC)

 12,436

 12,147

 12,436

 1.8
 %

 9/28/2027

 1,607

 1,490

 1,607

 0.3

 %

 3,160

 3,110

 3,160

 0.5
 %

 senior secured revolving loan

 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
 %

 loan

 1,800

 1,778

 1,679

 0.2
 %

 senior secured loan

 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
 %

 F- 10

 Number of
 Shares/Units

 Cost

 Fair
 Value

 Percentage of Net Assets

 Equity Investments(9)

 Automobile components

 Vehicle Accessories, Inc. - Class A common

 (12)

 128,250

 -

 0.0
 %

 Vehicle Accessories, Inc. - preferred

 (12)

 250,000

 0.1
 %

 378,250

 0.1
 %

 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
 %

 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
 %

 Domain Information Services Inc. (Integris)

 250,000

 0.0
 %

 Specialty retail

 Sundance Direct Holdings, Inc. - common

 21,479

 -

 -

 0.0
 %

 (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

 $
 683,056

 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.

 (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").

 See
accompanying notes to consolidated financial statements.

 F- 11

 (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.

 F- 12

 Fair

 Rate

 Date

 Par

 Cost (2)(3)

 Value

 Debt
 and Equity Investments

 Private
 Credit Investments (4)

 Aerospace
 & defense

 Basel
 U.S. Acquisition Co., Inc. (IAC) (5)

 First

 11.10 % (S + 6.50 %)

 12/5/2028

 $

 -

 $

 -

 $

 -

 0.0

 %

 First

 11.10 % (S + 6.50 %)

 12/5/2028

 18,681

 18,180

 18,681

 3.1

 %

 Fastener
 Distribution Holdings, LLC

 First

 11.73 % (S + 7.00 %)

 4/1/2024

 2,362

 2,293

 2,362

 0.4

 %

 First

 11.73 % (S + 7.00 %)

 4/1/2024

 20,701

 20,347

 20,701

 3.5

 %

 Precinmac
 (US) Holdings, Inc.

 First

 8/31/2027

 1,113

 1,094

 1,096

 0.2

 %

 First

 8/31/2027

 5,408

 5,315

 5,326

 0.9

 %

 48,265

 47,229

 48,166

 8.1

 %

 Asset
 management & custody banks

 Atria
 Wealth Solutions, Inc.

 First

 10.84 % (S + 6.00 %)

 2/29/2024

 0.0

 %

 First

 10.84 % (S + 6.00 %)

 2/29/2024

 5,139

 5,101

 5,036

 0.9

 %

 5,371

 5,303

 5,264

 0.9

 %

 Auto
 components

 Speedstar
 Holding LLC

 First

 11.73 % (L + 7.00 %)

 1/22/2027

 4,908

 4,828

 4,908

 0.8

 %

 Vehicle
 Accessories, Inc.

 First

 12.00 % (P + 4.50 %)

 -

 -

 -

 0.0

 %

 First

 10.34 % (S + 5.50 %)

 21,225

 20,898

 21,066

 3.6

 %

 26,133

 25,726

 25,974

 4.4

 %

 Biotechnology

 Alcami
 Corporation (Alcami)

 First

 11.42 % (S + 7.00 %)

 6/30/2024

 -

 -

 -

 0.0

 %

 First

 11.42 % (S + 7.00 %)

 12/21/2028

 -

 -

 -

 0.0

 %

 First

 11.42 % (S + 7.00 %)

 12/21/2028

 11,735

 11,237

 11,618

 2.0

 %

 11,735

 11,237

 11,618

 2.0

 %

 Building

 BCI
 Burke Holding Corp.

 First

 9.70 % (L + 5.50 %)

 12/14/2023

 0.1

 %

 First

 12/14/2027

 16,489

 16,256

 16,572

 2.8

 %

 First

 6/14/2027

 -

 -

 -

 0.0

 %

 Eastern
 Wholesale Fence

 First

 11.73 % (L + 7.00 %)

 1,275

 1,252

 1,275

 0.2

 %

 First

 11.73 % (L + 7.00 %)

 21,239

 20,778

 21,239

 3.6

 %

 39,642

 38,901

 39,728

 6.7

 %

 Chemicals

 Cyalume
 Technologies Holdings, Inc.

 First

 8/30/2024

 1,274

 1,266

 1,274

 0.2

 %

 Fralock
 Buyer LLC

 First

 4/17/2024

 -

 -

 -

 0.0

 %

 First

 4/17/2024

 11,679

 11,560

 11,621

 2.0

 %

 Schrieve
 Chemical Company, LLC

 First

 10.33 % (L + 6.00 %)

 12/2/2024

 0.1

 %

 USALCO,
 LLC

 First

 10.38 % (L + 6.00 %)

 10/19/2026

 1,081

 1,042

 1,070

 0.2

 %

 First

 10.73 % (L + 6.00 %)

 10/19/2027

 19,181

 18,792

 18,989

 3.2

 %

 33,824

 33,257

 33,563

 5.7

 %

 Commercial
 services & supplies

 Advanced
 Environmental Monitoring (6)

 First

 11.68 % (S + 7.00 %)

 1/29/2026

 10,158

 9,918

 10,158

 1.7

 %

 Allentown,
 LLC

 First

 10/22/2023

 -

 -

 -

 0.0

 %

 First

 12.50 % (P + 5.00 %)

 0.1

 %

 First

 7,663

 7,588

 7,452

 1.3

 %

 American
 Equipment Holdings LLC

 First

 10.88 % (S + 6.00 %)

 6,303

 6,202

 6,303

 1.1

 %

 First

 10.45 % (S + 6.00 %)

 1,610

 1,559

 1,610

 0.3

 %

 First

 9.33 % (S + 6.00 %)

 3,670

 3,594

 3,670

 0.6

 %

 First

 10.51 % (S + 6.00 %)

 2,107

 2,072

 2,107

 0.3

 %

 First

 10.88 % (S + 6.00 %)

 18,142

 17,853

 18,142

 3.1

 %

 Arborworks
 Acquisition LLC

 First

 11.41 % (L + 7.00 %)

 11/9/2026

 3,125

 3,053

 2,750

 0.5

 %

 First

 11.56 % (L + 7.00 %)

 11/9/2026

 19,855

 19,533

 17,473

 2.9

 %

 BLP
 Buyer, Inc. (Bishop Lifting Products)

 First

 10.67 % (S + 6.25 %)

 2/1/2027

 0.1

 %

 First

 10.21 % (S + 6.50 %)

 2/1/2027

 6,176

 6,027

 6,099

 1.0

 %

 First

 10.49 % (S + 6.25 %)

 2/1/2027

 16,372

 16,097

 16,168

 2.7

 %

 Gusmer
 Enterprises, Inc.

 First

 11.44 % (S + 7.00 %)

 8,032

 7,891

 8,032

 1.4

 %

 First

 11.43 % (S + 7.00 %)

 -

 -

 -

 0.0

 %

 First

 11.43 % (S + 7.00 %)

 4,795

 4,647

 4,795

 0.8

 %

 PMFC
 Holding, LLC

 First

 10.88 % (L + 6.50 %)

 7/31/2023

 2,818

 2,811

 2,818

 0.5

 %

 10.88 % (L + 6.50 %)

 7/31/2023

 5,619

 5,604

 5,619

 0.9

 %

 First

 11.18 % (L + 6.50 %)

 7/31/2023

 0.1

 %

 Regiment
 Security Partners LLC

 First

 12.66 % (S + 8.00 %)

 9/15/2023

 2,635

 2,593

 2,635

 0.4

 %

 First

 12.66 % (S + 8.00 %)

 6,461

 6,358

 6,461

 1.1

 %

 First

 12.66 % (S + 8.00 %)

 1,345

 1,320

 1,345

 0.2

 %

 The
 Kleinfelder Group, Inc.

 First

 9.98 % (L + 5.25 %)

 11/30/2024

 12,760

 12,678

 12,697

 2.1

 %

 140,949

 138,665

 137,619

 23.2

 %

 F- 13

 Fair

 Rate

 Date

 Par

 Cost (2)(3)

 Value

 Containers
 & packaging

 Drew
 Foam Companies, Inc.

 loan

 11.48 % (S + 6.75 %)

 11/5/2025

 7,375

 7,288

 7,375

 1.2

 %

 loan

 10.89 % (S + 6.75 %)

 11/5/2025

 20,964

 20,564

 20,964

 3.6

 %

 FCA,
 LLC (FCA Packaging)

 9.46 % (S + 6.50 %)

 7/18/2028

 -

 -

 -

 0.0

 %

 loan

 9.46 % (S + 6.50 %)

 7/18/2028

 23,382

 23,004

 23,616

 4.0

 %

 51,721

 50,856

 51,955

 8.8

 %

 Diversified
 telecommunication services

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

 loan

 9.48 % (S + 4.75 %)

 11/30/2024

 5,249

 5,187

 5,249

 0.9

 %

 Pavion
 Corp., f/k/a Corbett Technology Solutions, Inc.

 9.14 % (S + 5.00 %)

 10/29/2027

 0.1

 %

 9.66 % (S + 5.00 %)

 10/29/2027

 9,434

 9,354

 9,293

 1.6

 %

 loan

 9.58 % (S + 5.00 %)

 10/29/2027

 1,742

 1,727

 1,716

 0.3

 %

 loan

 9.24 % (S + 5.00 %)

 10/29/2027

 13,429

 13,188

 13,227

 2.2

 %

 30,426

 29,898

 30,048

 5.1

 %

 Electronic
 equipment, instruments & components

 Process
 Insights, Inc.

 loan

 10.49 % (S + 6.00 %)

 3,044

 2,993

 3,021

 0.5

 %

 3,044

 2,993

 3,021

 0.5

 %

 Food

 BC
 CS 2, L.P. (Cuisine Solutions) (5)

 loan

 12.18 % (S + 8.00 %)

 7/8/2028

 25,000

 24,283

 25,000

 4.2

 %

 BR
 PJK Produce, LLC (Keany)

 loan

 10.47 % (S + 6.25 %)

 11/14/2027

 29,863

 29,095

 29,863

 5.0

 %

 10.47 % (S + 6.25 %)

 5/14/2024

 -

 -

 -

 0.0

 %

 Gulf
 Pacific Holdings, LLC

 10.73 % (S + 6.00 %)

 9/30/2024

 -

 -

 -

 0.0

 %

 1,498

 1,384

 1,498

 0.3

 %

 loan

 10.73 % (S + 6.00 %)

 20,384

 19,905

 20,384

 3.5

 %

 IF&P
 Foods, LLC (FreshEdge) (6)

 8.91 % (S + 5.25 %)

 10/3/2024

 -

 -

 -

 0.0

 %

 8.91 % (S + 5.25 %)

 1,366

 1,187

 1,366

 0.2

 %

 loan

 8.91 % (S + 5.25 %)

 27,520

 26,853

 27,520

 4.7

 %

 Siegel
 Egg Co., LLC

 9.25 % (L + 5.50 %)

 12/29/2026

 1,923

 1,873

 1,913

 0.3

 %

 loan

 9.25 % (L + 5.50 %)

 12/29/2026

 15,624

 15,383

 15,546

 2.6

 %

 123,178

 119,963

 123,090

 20.8

 %

 Health
 care providers & services

 Brightview,
 LLC

 10.14 % (L + 5.75 %)

 1,736

 1,714

 1,719

 0.3

 %

 10.13 % (L + 5.75 %)

 -

 -

 -

 0.0

 %

 loan

 10.13 % (L + 5.75 %)

 13,002

 12,923

 12,872

 2.2

 %

 Guardian
 Dentistry Partners

 10.94 % (S + 6.50 %)

 21,708

 21,402

 21,708

 3.7

 %

 loan

 10.94 % (S + 6.50 %)

 8,139

 7,961

 8,139

 1.4

 %

 Light
 Wave Dental Management LLC

 11.32 % (S + 6.50 %)

 12/31/2023

 9,559

 9,437

 9,559

 1.6

 %

 loan (7)

 30.00 %

 9/30/2023

 6,254

 6,254

 6,254

 1.0

 %

 11.32 % (S + 6.50 %)

 12/31/2023

 0.1

 %

 loan

 11.32 % (S + 6.50 %)

 12/31/2023

 12,941

 12,851

 12,941

 2.1

 %

 OMH-HealthEdge
 Holdings, LLC

 loan

 10.03 % (L + 5.25 %)

 10/24/2025

 17,572

 17,271

 17,572

 3.0

 %

 SGA
 Dental Partners Holdings, LLC

 9.93 % (S + 6.00 %)

 11,136

 10,941

 11,136

 1.9

 %

 loan

 9.93 % (S + 6.00 %)

 11,948

 11,725

 11,948

 2.0

 %

 9.93 % (S + 6.00 %)

 -

 -

 -

 0.0

 %

 114,553

 113,034

 114,406

 19.3

 %

 F- 14

 Fair

 Rate

 Date

 Par

 Cost (2)(3)

 Value

 Healthcare
 equipment & supplies

 LSL
 Industries, LLC (LSL Healthcare)

 10.90 % (S + 6.50 %)

 11/3/2024

 -

 -

 -

 0.0

 %

 10.90 % (S + 6.50 %)

 11/3/2027

 -

 -

 -

 0.0

 %

 loan

 10.90 % (S + 6.50 %)

 11/3/2027

 19,727

 19,001

 19,727

 3.3

 %

 19,727

 19,001

 19,727

 3.3

 %

 Household
 durables

 Curio
 Brands, LLC

 3,296

 3,296

 3,230

 0.5

 %

 -

 -

 -

 0.0

 %

 loan

 18,009

 17,596

 17,648

 3.0

 %

 21,305

 20,892

 20,878

 3.5

 %

 Household

 Home
 Brands Group Holdings, Inc. (ReBath)

 9.16 % (L + 4.75 %)

 11/8/2026

 -

 -

 -

 0.0

 %

 loan

 9.16 % (L + 4.75 %)

 11/8/2026

 19,046

 18,706

 18,951

 3.2

 %

 19,046

 18,706

 18,951

 3.2

 %

 Insurance

 Allcat
 Claims Service, LLC

 10.24 % (S + 6.00 %)

 5,396

 5,127

 5,396

 0.9

 %

 10.33 % (S + 6.00 %)

 1,651

 1,591

 1,651

 0.3

 %

 loan

 10.41 % (S + 6.00 %)

 7,795

 7,641

 7,795

 1.3

 %

 14,842

 14,359

 14,842

 2.5

 %

 IT
 services

 Domain
 Information Services Inc. (Integris)

 loan

 10.63 % (S + 6.25 %)

 9/30/2025

 20,632

 20,133

 20,632

 3.5

 %

 Improving
 Acquisition LLC

 10.24 % (S + 6.00 %)

 7/26/2027

 -

 -

 -

 0.0

 %

 loan

 10.24 % (S + 6.00 %)

 7/26/2027

 24,260

 23,754

 24,260

 4.1

 %

 44,892

 43,887

 44,892

 7.6

 %

 Leisure

 MacNeill
 Pride Group

 11.09 % (S + 6.25 %)

 4,119

 4,061

 4,017

 0.7

 %

 loan

 11.09 % (S + 6.25 %)

 8,619

 8,533

 8,403

 1.4

 %

 11.09 % (S + 6.25 %)

 0.1

 %

 Trademark
 Global LLC

 11.88 % (L + 7.50%), 4.50 % is PIK

 2,760

 2,744

 2,574

 0.4

 %

 11.88 % (L + 7.50%), 4.50 % is PIK

 0.1

 %

 loan

 11.88 % (L + 7.50%), 4.50 % is PIK

 11,516

 11,451

 10,739

 1.8

 %

 27,942

 27,684

 26,637

 4.5

 %

 Machinery

 Pennsylvania
 Machine Works, LLC

 loan

 11.09 % (S + 6.25 %)

 3/6/2027

 2,009

 1,991

 2,009

 0.3

 %

 PVI
 Holdings, Inc

 loan

 10.12 % (S + 6.38 %)

 7/18/2027

 24,124

 23,763

 24,124

 4.1

 %

 26,133

 25,754

 26,133

 4.4

 %

 Personal

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

 10.48 % (L + 5.75 %)

 11/1/2025

 -

 -

 -

 0.0

 %

 loan

 10.48 % (L + 5.75 %)

 11/1/2025

 11,377

 11,295

 11,149

 1.9

 %

 PH
 Beauty Holdings III, Inc.

 loan

 9/28/2025

 9,542

 9,277

 9,113

 1.5

 %

 20,919

 20,572

 20,262

 3.4

 %

 Pharmaceuticals

 Foundation
 Consumer Brands

 10.15 % (L + 5.50 %)

 2/12/2027

 -

 -

 -

 0.0

 %

 loan

 10.15 % (L + 5.50 %)

 2/12/2027

 7,331

 7,276

 7,331

 1.2

 %

 7,331

 7,276

 7,331

 1.2

 %

 F- 15

 Fair

 Rate

 Date

 Par

 Cost (2)(3)

 Value

 Professional
 services

 Over International, LLC

 First

 10.73 % (L + 6.00 %)

 12/7/2023

 24,326

 24,013

 24,205

 4.1

 %

 DISA
 Holdings Corp. (DISA)

 First

 9.73 % (S + 5.50 %)

 2,443

 2,283

 2,430

 0.4

 %

 First

 9.82 % (S + 5.50 %)

 0.0

 %

 First

 9.72 % (S + 5.50 %)

 22,401

 21,741

 22,289

 3.8

 %

 Universal
 Marine Medical Supply International, LLC (Unimed)

 First

 12.14 % (S + 7.50 %)

 12/5/2027

 0.1

 %

 First

 12.10 % (S + 7.50 %)

 12/5/2027

 14,756

 14,395

 14,756

 2.5

 %

 64,491

 62,879

 64,245

 10.9

 %

 AIDC
 Intermediate Co 2, LLC (Peak Technologies)

 First

 10.44 % (S + 6.25 %)

 7/22/2027

 35,000

 33,835

 35,000

 5.9

 %

 35,000

 33,835

 35,000

 5.9

 %

 Specialty
 retail

 Sundance
 Holdings Group, LLC (6)

 First

 10.73 % (L + 6.00 %)

 5/1/2024

 8,743

 8,548

 8,656

 1.5

 %

 8,743

 8,548

 8,656

 1.5

 %

 Textiles,
 apparel & luxury goods

 American
 Soccer Company, Incorporated (SCORE)

 First

 11.91 % (S + 7.25 %)

 7/20/2027

 1,892

 1,795

 1,892

 0.3

 %

 First

 11.98 % (S + 7.25 %)

 7/20/2027

 30,119

 29,478

 30,119

 5.1

 %

 BEL
 USA, LLC

 First

 10.43 % (S + 6.00 %)

 2/2/2025

 7,006

 6,937

 6,936

 1.2

 %

 YS
 Garments, LLC

 First

 9.51 % (L + 5.50 %)

 8/9/2024

 7,706

 7,608

 7,706

 1.3

 %

 46,723

 45,818

 46,653

 7.9

 %

 Trading
 companies & distributors

 BCDI
 Meteor Acquisition, LLC (Meteor)

 First

 11.66 % (S + 7.00 %)

 6/29/2028

 16,420

 16,010

 16,420

 2.8

 %

 Broder
 Bros., Co.

 First

 10.73 % (L + 6.00 %)

 12/4/2025

 4,763

 4,456

 4,763

 0.8

 %

 CGI
 Automated Manufacturing, LLC

 First

 11.34 % (S + 6.50 %)

 3,710

 3,566

 3,710

 0.6

 %

 First

 11.34 % (S + 6.50 %)

 27,896

 26,809

 27,896

 4.7

 %

 First

 11.34 % (S + 6.50 %)

 -

 -

 -

 0.0

 %

 EIS
 Legacy, LLC

 First

 5/1/2023

 -

 -

 -

 0.0

 %

 First

 -

 -

 -

 0.0

 %

 First

 18,277

 17,885

 18,140

 3.1

 %

 Genuine
 Cable Group, LLC

 First

 10.17 % (S + 5.75 %)

 11/1/2026

 34,912

 33,732

 34,476

 5.8

 %

 I.D.
 Images Acquisition, LLC

 First

 10.98 % (S + 6.25 %)

 15,415

 15,236

 15,415

 2.6

 %

 First

 10.67 % (S + 6.25 %)

 4,743

 4,651

 4,743

 0.8

 %

 First

 10.98 % (S + 6.25 %)

 2,608

 2,587

 2,608

 0.4

 %

 First

 10.67 % (S + 6.25 %)

 0.1

 %

 Refrigeration
 Sales Corp.

 First

 11.26 % (L + 6.50 %)

 6/22/2026

 6,876

 6,789

 6,876

 1.2

 %

 United
 Safety & Survivability Corporation (USSC)

 First

 11.41 % (S + 6.75 %)

 0.1

 %

 First

 10.88 % (S + 6.25 %)

 1,075

 1,051

 1,075

 0.2

 %

 First

 11.48 % (S + 6.75 %)

 12,563

 12,332

 12,563

 2.1

 %

 150,524

 146,299

 149,951

 25.3

 %

 Wireless
 telecommunication services

 Centerline
 Communications, LLC

 First

 9.93 % (S + 5.50 %)

 1,031

 1,000

 1,026

 0.2

 %

 First

 10.06 % (S + 5.50 %)

 7,116

 6,999

 7,080

 1.2

 %

 First

 9.93 % (S + 5.50 %)

 6,265

 6,148

 6,233

 1.1

 %

 First

 10.06 % (S + 5.50 %)

 -

 -

 -

 0.0

 %

 First

 10.06 % (S + 5.50 %)

 15,098

 14,819

 15,022

 2.5

 %

 29,510

 28,966

 29,361

 5.0

 %

 Total
 Private Credit Debt Investments

 1,165,969

 1,141,538

 195.6

 %

 See accompanying notes to consolidated
financial statements.

 F- 16

 Number of

 Units

 Cost

 Fair

Value

 Equity Investments

 Auto components

 Vehicle Accessories, Inc. - Class
 A common (8)

 128.250

 -

 0.0

 %

 Vehicle Accessories, Inc. - preferred (8)

 250.000

 0.1

 %

 378.250

 0.1

 %

 American Equipment Holdings LLC (9)

 250.000

 0.0

 %

 BLP Buyer, Inc. (Bishop Lifting Products) - Class A
 common (10)

 500.000

 0.1

 %

 750.000

 0.1

 %

 BC CS 2, L.P. (Cuisine Solutions) (5)

 2,000.000

 2,000

 2,220

 0.4

 %

 IF&P Foods, LLC (FreshEdge) – Class A common
 (9)

 0.750

 0.1

 %

 IF&P Foods, LLC
 (FreshEdge) – Class B common (9)

 0.750

 -

 -

 0.0

 %

 Gulf Pacific Holdings, LLC - Class A common (9)

 0.250

 0.0

 %

 Gulf Pacific Holdings, LLC - Class C common (9)

 0.250

 -

 -

 0.0

 %

 Siegel Parent, LLC (11)

 0.250

 0.1

 %

 2,002.250

 3,250

 3,739

 0.6

 %

 Healthcare equipment & supplies

 LSL Industries, LLC (LSL Healthcare) (9)

 7.500

 0.1

 %

 7.500

 0.1

 %

 Domain Information Services Inc. (Integris)

 250.000

 0.0

 %

 250.000

 0.0

 %

 American Soccer Company, Incorporated (SCORE) (11)

 1,000.000

 1,000

 1,258

 0.2

 %

 1,000.000

 1,000

 1,258

 0.2

 %

 Total Private Equity Investments

 4,388.000

 6,250

 7,148

 1.1

 %

 Total Private Investments

 1,147,788

 196.7

 %

 Number of

 Fair

 Shares

 Cost

 Value

 Short-Term
 Investments

 First
 American Treasury Obligations Fund - Institutional Class Z, 4.16% (12)

 9,847

 9,847

 9,847

 1.7
 %

 Total
 Short-Term Investments

 9,847

 9,847

 9,847

 1.7
 %

 Total
 Investments

 $
 1,157,635

 $
 1,174,966

 198.4
 %

 Liabilities
 in Excess of Other Assets

 ( 582,925
)

 ( 98.4
)%

 Net
 Assets

 $

 100.0
 %

 (1)
 As of December 31, 2022, 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.

 (2)
 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.

 (3)
 As of December 31, 2022, the tax cost of the Company's investments approximates their amortized cost.

 See accompanying notes to
consolidated financial statements.

 F- 17

 (4)
 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 London Interbank Offered Rate ("LIBOR" or "L") (which can include one-, two-, three- or six-month LIBOR), 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").

 (5)
 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, 2022, 3.8% of the Company's total assets were in non-qualifying investments.

 (6)
 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.

 (7)
 On December 5, 2022, the Company funded a $6,254 first lien senior secured loan in Light Wave Dental Management LLC. The loan has an annual interest rate of 30% with a minimum of 1.3x MOIC (multiple on invested capital) if the loan is repaid prior to June 6, 2023 with further increases above 1.3x thereafter. The interest and the prepayment premium are payable to the Company upon a triggering event or maturity in September 2023.

 (8)
 The Company owns 0.19% of the common equity and 0.43% of the preferred equity of Vehicle Accessories, Inc.

 (9)
 The Company owns 71% 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.

 (10)
 The Company owns 0.53% of the common equity BLP Buyer, Inc. (Bishop Lifting Products).

 (11)
 The Company owns 40% 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.

 (12)
 The indicated rate is the yield as of December 31, 2022.

 See accompanying notes to
consolidated financial statements.

 F- 18

 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 was formed as a Delaware corporation
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 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.

 As of December 31, 2023, the Company has entered
into subscription agreements with investors for an aggregate capital commitment of $ 1,046,928 to purchase shares of the Company's
common stock. On December 5, 2023, the Company completed its final close of subscription agreements with investors.

 The Company conducts 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 will make a capital commitment (a "Capital
Commitment") to purchase shares of its common stock pursuant to a subscription agreement entered into with the Company. Investors
will be required to fund drawdowns to purchase shares of common stock up to the amount of their respective Capital Commitments each time
the Company delivers a notice to the investors. Following the initial closing of the private offering (the "Initial Closing")
on February 5, 2021 and prior to any Liquidity Event (as defined below), the Advisor may, in its sole discretion, permit additional closings
of the private offering. A "Liquidity Event" is defined as (a) an initial public offering of shares of common stock (the
"Initial Public Offering") or the listing of shares of common stock on an exchange (together with the Initial Public Offering,
an "Exchange Listing"), (b) the sale of the Company or (c) a disposition of the Company's investments and distribution
of the net proceeds (after repayment of borrowings under credit facilities and issuances of senior unsecured notes) to the Company's
investors.

 F- 19

 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"); KABDC Corp, LLC and KABDC Corp II, LLC in its consolidated financial statements. All significant intercompany
balances and transactions have been eliminated in consolidation. KABDC Corp, LLC and KABDC Corp II, LLC are Delaware LLCs that have elected
to be treated as corporations for U.S. tax purposes and were formed to facilitate compliance with the requirements to be treated as a
RIC under the Code by holding (directly or indirectly through a subsidiary) 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- 20

 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 will 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 years ended December 31, 2023,
2022 and 2021, the Company had $ 1,652, $ 151 and $ 173, respectively, of PIK interest included in interest income, which represents 1.0 %,
 0.2 % and 0.9 %, respectively, of aggregate interest income.

 F- 21

 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, 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 —Distributions
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. Organizational Costs —organizational
expenses include costs and expenses relating to the formation and organization of the Company. The Company has reimbursed the Advisor
for these costs which are expensed as incurred.

 J. Offering Costs —offering costs
include costs and expenses incurred in connection with the offering of the Company's common stock. These initial costs were capitalized
as deferred offering expenses and included in prepaid expenses and other assets on the Statement of Assets and Liabilities. These costs
were amortized over a twelve-month period beginning with the commencement of operations. These expenses consist primarily of legal fees
and other costs incurred in connection with the Company's share offerings, the preparation of the Company's registration statement
and registration fees. The Company reimbursed the Advisor for these costs.

 K. 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.

 F- 22

 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.

 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.

 L. 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.

 Note 3. Agreements and Related Party Transactions

 A. 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 March 7, 2023,
the Board approved a one-year renewal of the Administration Agreement through March 15, 2024.

 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 our Exchange Listing, 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.

 B. 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 March 7, 2023, the Board approved a one-year renewal of the Investment
Advisory Agreement through March 15, 2024.

 F- 23

 Base Management Fee

 Prior to an Exchange Listing, the base management
fee will be 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.

 The base management fee 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.

 For the years ended December 31, 2023, 2022 and 2021, the Company incurred
base management fees of $ 11,433, $ 7,147 and $ 2,095, respectively.

 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") is determined and paid quarterly in arrears in cash (subject to the limitations described in "Payment of Incentive
Fees" below). 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 an Exchange Listing,
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.

 F- 24

 Incentive Fee on Capital Gains

 Prior to an Exchange Listing, the incentive fee
on capital gains (the "capital gains incentive fee") will be 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 an Exchange Listing, (b) upon
consummation of a Liquidity Event 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. For the purpose of computing the capital gain incentive fee,
the calculation methodology will look through derivative financial instruments or swaps as if the Company owned the reference assets directly.

 Payment of Incentive Fees

 Prior to an Exchange Listing, any incentive fees
earned by the Advisor shall accrue as earned but only become payable in cash to the Advisor upon consummation of an Exchange Listing.
To the extent the Company does not complete an Exchange Listing, the incentive fees will be payable to the Advisor (a) upon consummation
of a sale of the Company or (b) once substantially all the proceeds from a Company Liquidation payable to the Company's stockholders
have been distributed to such stockholders.

 For the year ended December 31, 2023, the Company incurred incentive
fees on income of $ 9,433 and no incentive fees on capital gains. For the year ended December 31, 2022, the Company incurred incentive
fees on income of $ 4,698 and no incentive fees on capital gains. For the year ended December 31, 2021, the Company incurred incentive
fees on income of $ 31 and on realized gains $ 34 (total of $ 65).

 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, 2023 and 2022:

 December 31, 2023

 December 31, 2022

 Fair

 Fair

 Cost

 Value

 Cost

 Value

 $
 1,327,190

 $

 $
 1,141,538

 $

 Equity investments

 16,033

 6,250

 7,148

 Short-term investments

 9,847

 9,847

 Total Investments

 $
 1,356,025

 $
 1,376,300

 $
 1,157,635

 $
 1,174,966

 F- 25

 As of December 31, 2023 and December 31, 2022, $ 68,578 and $ 45,901,
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, 2023 and 2022 was as follows:

2023

2022

 15.3
 %

 12.9
 %

 11.5
 %

 10.9
 %

 9.4
 %

 11.9
 %

 Health care providers & services

 7.4
 %

 9.8
 %

 Containers & packaging

 7.2
 %

 4.5
 %

 6.3
 %

 4.1
 %

 Professional services

 4.5
 %

 5.5
 %

 3.8
 %

 3.9
 %

 Machinery

 3.8
 %

 2.2
 %

 Leisure products

 3.3
 %

 2.3
 %

 3.3
 %

 4.1
 %

 Chemicals

 3.1
 %

 2.9
 %

 Personal care products

 3.0
 %

 1.7
 %

 2.5
 %

 3.0
 %

 Insurance

 2.2
 %

 1.3
 %

 Wireless telecommunication services

 2.1
 %

 2.5
 %

 Automobile components

 2.0
 %

 2.3
 %

 Building products

 2.0
 %

 3.4
 %

 Household durables

 1.5
 %

 1.8
 %

 Health care equipment & supplies

 1.5
 %

 1.8
 %

 Household products

 1.2
 %

 1.6
 %

 Biotechnology

 0.9
 %

 1.0
 %

 Specialty retail

 0.7
 %

 0.7
 %

 Capital markets

 0.6
 %

 -
 %

 Pharmaceuticals

 0.5
 %

 0.6
 %

 Diversified telecommunication services

 0.4
 %

 2.6
 %

 Electronic equipment, instruments & components

 -
 %

 0.3
 %

 Asset management & custody banks

 -
 %

 0.4
 %

 Total

 100.0
 %

 100.0
 %

 F- 26

 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- 27

 The following tables present the fair value hierarchy
of investments as of December 31, 2023 and December 31, 2022. 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, 2023

 Investments:

 Level 1

 Level 2

 Level 3

 Total

 $
 -

 $
 -

 $

 $

 Equity investments

 -

 -

 Short-term investments

 -

 -

 Total Investments

 $

 $
 -

 $

 $
 1,376,300

 Fair Value Hierarchy as of December 31, 2022

 Investments:

 Level 1

 Level 2

 Level 3

 Total

 $
 -

 $
 -

 $

 $

 Equity investments

 -

 -

 7,148

 7,148

 Short-term investments

 9,847

 -

 -

 9,847

 Total Investments

 $
 9,847

 $
 -

 $

 $
 1,174,966

 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, 2023 and 2022.

 For the year ended December 31, 2023

 First-lien

 senior secured

 debt investments

 Private

 equity

 investments

 Total

 Fair value, beginning of period

 $

 $
 7,148

 $

 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.

 First-lien

 Private

 senior secured

 equity

 For the year ended December 31, 2022

 debt investments

 investments

 Total

 Fair value, beginning of period

 $
 578,195

 $

 $
 578,445

 Purchases of investments

 712,387

 6,000

 718,387

 Proceeds from sales of investments and principal repayments

 ( 142,118
)

 -

 ( 142,118
)

 Net change in unrealized gain (loss)

 4,604

 5,502

 Net realized gain (loss)

 -

 Net accretion of discount on investments

 4,819

 -

 4,819

 Transfers into (out of) Level 3

 -

 -

 -

 Fair value, end of period

 $

 $
 7,148

 $

 F- 28

 For the years ended December 31, 2023 and 2022,
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- 29

 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, 2023 and December 31, 2022. 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.

 Valuation

 Unobservable

 Weighted

 Fair Value

 Technique

 Input

 Range

 Average

 $

 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

 $

 Valuation

 Unobservable

 Weighted

 Fair Value

 Technique

 Input

 Range

 Average

 $

 Discounted cash flow analysis

 Discount rate

 8.4 % – 15.0
 %

 10.1
 %

 Equity investments

 1,988

 Precedent Transaction Analysis

 Original Cost

 1.0

 1.0

 5,160

 Comparable Multiples

 EV / EBITDA

 6.6 – 17.2

 12.7

 $

 F- 30

 Note 6. Debt

 Subscription Credit Agreement

 As of December 31, 2023, the Company had a $ 50,000
credit agreement (the "Subscription Credit Agreement") with certain lenders party thereto. The Subscription Credit Agreement
permits the Company to elect the commitment amount each quarter to borrow up to $ 50,000, subject to availability under the borrowing base
which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements. The interest rate
under the Subscription Credit Agreement is equal to the Secured Overnight Funding Rate ("SOFR") plus 2.25 % (subject to a 0.275 %
SOFR floor). The Company is also required to pay a commitment fee of 0.25 % per annum on any unused portion of the Subscription Credit
Agreement. The Company also pays an extension fee of 0.075 % per quarter on the elected commitment amount on the first day of each calendar
quarter. The Subscription Credit Agreement will expire on December 31, 2024.

 For the years ended December 31, 2023 and 2022,
the average amount of borrowings outstanding under the Subscription Credit Agreement were $ 41,782 and $ 65,751, respectively, with a weighted
average interest rate of 7.03 % and 3.70 %, respectively. As of December 31, 2023, the Company had $ 10,750 outstanding under the Subscription
Credit Agreement at a weighted average interest rate of 7.35 %.

 Corporate Credit Facility

 As of December 31, 2023, the Company had a senior
secured revolving credit facility (the "Corporate Credit Facility"), that has a total commitment of $ 400,000. The Company entered
into the Corporate Credit Facility on February 18, 2022. The Corporate Credit Facility's commitment termination date and the final
maturity date are February 18, 2026 and February 18, 2027, respectively. 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 $ 550,000.
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 2.35 % per annum or an "alternate base rate" (as defined in the agreements governing the Corporate Credit Facility)
plus an applicable spread of 1.25 %. 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 (as defined below).

 For the years ended December 31, 2023 and 2022,
the average amount of borrowings outstanding under the Corporate Credit Facility was $ 251,655 and $ 134,239, respectively, with a
weighted average interest rate of 7.35 % and 4.26 %, respectively. As of December 31, 2023, the Company had $ 234,000 outstanding under the
Corporate Credit Facility at a weighted average interest rate of 7.71 %.

 Revolving Funding Facility

 As of December 31, 2023, the Company had a senior
secured revolving funding facility (the "Revolving Funding Facility"), that has a total commitment of $ 455,000. The Company and
KABDCF entered into the Revolving Funding Facility on February 18, 2022, and on June 29, 2023, amended the facility and increased the
commitment amount from $ 350,000 to $ 455,000. The interest rate and all other terms remained unchanged. 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. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are February 18, 2025 and
February 18, 2027, respectively. The interest rate on the Revolving Funding Facility is equal to daily SOFR plus 2.75 % 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. 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.

 F- 31

 For the years ended December 31, 2023 and 2022,
the average amount of borrowings outstanding under the Revolving Funding Facility was $ 290,890 and $ 147,808, respectively, with a weighted
average interest rate of 7.74 % and 4.20 %, respectively. As of December 31, 2023, the Company had $ 306,000 outstanding under the Revolving
Funding Facility at a weighted average interest rate of 8.06 %.

 Revolving Funding Facility II

 On December 22, 2023,
the Company and Kayne Anderson BDC Financing II, LLC ("KABDCF II"), a wholly-owned, special purpose financing subsidiary,
entered into a new 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 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, 2023, the Company had $ 70,000 outstanding under the Revolving Funding Facility II at a
weighted average interest rate of 8.07 %.

 Loan and Security Agreement

 On February 18, 2022, the Company and KABDCF established
two new credit facilities (described above) and fully repaid the $ 150,000 outstanding balance on the Loan and Security Agreement (the
"LSA"), which was entered into by KABDCF on February 5, 2021. Advances under the LSA had an interest rate of LIBOR plus 4.25%
(subject to a 1.00% LIBOR floor).

 For the year ended December 31, 2022, the average amount of borrowings
outstanding under the LSA were $ 20,384 with a weighted average interest rate of 5.25 %.

 Senior Unsecured Notes

 On June 29, 2023, the Company completed a private
placement of $ 75,000 of senior unsecured notes (the "Notes"). Net proceeds from the offering was used to refinance existing
debt and for general corporate purposes.

 F- 32

 The table below sets forth a summary of the key
terms of each series of Notes outstanding at December 31, 2023.

 Series

Outstanding

 2023

 Unamortized Issuance Costs

 Estimated Fair Value December 31,
 2023

 Fixed

Rate

 A

 $
 25,000

 $

 $
 26,906

 8.65
 %

 B

 50,000

 54,173

 8.74
 %

 $

 $

 $
 81,079

 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, 2023, the weighted average interest
rate on the outstanding Notes was 8.71 %.

 As of December 31, 2023, 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 60 % (until June 29, 2024) or 55 % (on or after June 29, 2024) (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, 2023, the Company was in compliance
with all covenants under the Notes agreements.

 Debt obligations consisted of the following as
of December 31, 2023 and 2022.

 December 31, 2023

 Committed

 Outstanding Principal

 Amount Available (1)

 Net Carrying Value (2)

 Notes

 $

 $

 $
 -

 $
 74,149

 Corporate Credit Facility

 400,000

 234,000

 166,000

 232,285

 Revolving Funding Facility

 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.

 F- 33

 December 31, 2022

 Committed

 Outstanding Principal

 Amount Available (1)

 Net
 Carrying
 Value (2)

 Corporate Credit Facility

 $
 400,000

 $
 269,000

 $
 131,000

 $
 266,483

 Revolving Funding Facility

 350,000

 200,000

 21,793

 197,173

 Subscription Credit Agreement

 125,000

 108,000

 17,000

 107,935

 Total debt

 $
 875,000

 $
 577,000

 $
 169,793

 $
 571,591

 (1)
 The amount available under the Company's credit facilities reflects
the assets held at KABDCF and any limitations related to the borrowing base as of December 31, 2022.

 (2)
 The carrying value of the Corporate Credit Facility, Revolving Funding Facility, and Subscription Credit Agreement are presented net of deferred financing costs totaling $ 5,409.

 For the years ended December 31, 2023, 2022 and 2021, the components
of interest expense were as follows:

 2023

 2022

 2021

 Interest expense

 $
 49,620

 $
 18,170

 $
 4,195

 Amortization of debt issuance costs

 2,694

 2,122

 Total interest expense

 $
 52,314

 $
 20,292

 $
 4,455

 Average interest rate

 8.4
 %

 5.5
 %

 5.4
 %

 Average borrowings

 $
 624,464

 $
 368,182

 $
 91,355

 F- 34

 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, 2023, 2022 and 2021. See Note 12 – Subsequent Events.

 For the year ended December 31, 2023

 Offering

 price per

 Common stock issue date

 share

 shares issued

 April 4, 2023

 $
 16.61

 3,010,942

 $
 50,000

 August 8, 2023

 $
 16.82

 2,411,582

 40,575

 5,422,524

 $
 90,575

 For the year ended December 31, 2022

 Offering

 price per

 Common stock issue date

 share

 shares issued

 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

 16,305,034

 $
 268,218

 For the year ended December 31, 2021

 Offering

 price per

 Common stock issue date

 share

 shares issued

 February 5, 2021

 $
 15.00

 5,666,667

 $
 85,000

 April 23, 2021

 $
 15.57

 3,532,434

 55,000

 July 23, 2021

 $
 15.72

 2,862,595

 45,000

 October 28, 2021

 $
 15.98

 2,502,612

 40,000

 December 2, 2021

 $
 16.31

 4,568,314

 74,501

 $
 19,132,622

 $
 299,501

 F- 35

 On December 5, 2023, the Company completed its
final close of subscription agreements with investors. As of December 31, 2023, the Company had subscription agreements with investors
for an aggregate capital commitment of $ 1,046,928 to purchase shares of common stock. Of this amount, the Company had $ 388,634 of undrawn
commitments at December 31, 2023. See Note 12 – Subsequent Events.

 Dividends and Dividend Reinvestment

 The following tables summarize the dividends declared
and payable by the Company for the years ended December 31, 2023, 2022 and 2021. See Note 12 – Subsequent Events.

 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

 For the year ended December 31, 2021

 Dividend declaration date

 per share

 April 23, 2021

 April 20, 2021

 May 14, 2021

 $
 0.15

 July 19, 2021

 July 20, 2021

 July 27, 2021

 0.22

 October 18, 2021

 October 22, 2021

 November 2, 2021

 0.25

 December 2, 2021

 December 29, 2021

 January 18, 2022

 0.24

 Total dividends declared

 $
 0.86

 F- 36

 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, 2023, 2022 and 2021. See Note 12 - Subsequent Events.

 For the year ended December 31, 2023

 DRIP

 DRIP

 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 declared on November 9, 2023
and 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

 DRIP

 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 declared on December 16, 2022 and 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.

 For the year ended December 31, 2021

 DRIP

 DRIP

 value

 April 20, 2021

 May 14, 2021

 1,361

 $

 July 20, 2021

 July 27, 2021

 37,460

 October 22, 2021

 November 2, 2021

 55,792

 94,613

 $
 1,492

 For the dividend declared on December 2, 2021
and paid on January 18, 2022, there were 55,590 shares issued with a DRIP value of $ 902. These shares are excluded from the table above,
as the DRIP shares were issued after December 31, 2021.

 Note 8. Commitments and Contingencies

 The Company had an aggregate of $ 147,928 and $ 149,338,
respectively, of unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2023 and December 31, 2022.
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- 37

 A summary of the composition of the unfunded
commitments as of December 31, 2023 and 2022 is shown in the table below.

 As of

 As of

 2023

 2022

 Alcami Corporation (Alcami)

 $
 2,543

 $
 2,543

 Allcat Claims Service, LLC

 5,370

 20,106

 Allentown, LLC

 2,040

 American Equipment Holdings LLC

 2,956

 2,601

 2,838

 Arborworks Acquisition LLC

 1,872

 1,563

 Atria Wealth Solutions, Inc.

 -

 2,996

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

 1,622

 1,622

 BCI Burke Holding Corp.

 4,659

 4,659

 OAO Acquisitions, Inc. (BearCom)

 6,982

 -

 BLP Buyer, Inc. (Bishop Lifting Products)

 6,548

 1,047

 BR PJK Produce, LLC (Keany)

 2,870

 1,429

 Brightview, LLC

 -

 2,904

 Carton Packaging Buyer, Inc.

 2,848

 -

 Centerline Communications, LLC

 -

 1,800

 CGI Automated Manufacturing, LLC

 2,390

 2,717

 City Line Distributors, LLC

 5,322

 -

 Curio Brands, LLC

 1,719

 2,722

 DISA Holdings Corp. (DISA)

 6,142

 7,769

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

 Eastern Wholesale Fence

 1,332

 EIS Legacy, LLC

 6,922

 6,539

 Fastener Distribution Holdings, LLC

 -

 6,810

 FCA, LLC (FCA Packaging)

 2,670

 2,670

 Foundation Consumer Brands

 Fralock Buyer LLC

 Guided Practice Solutions: Dental, LLC (GPS)

 10,299

 -

 Gulf Pacific Holdings, LLC

 10,153

 13,066

 Gusmer Enterprises, Inc.

 3,676

 3,676

 Home Brands Group Holdings, Inc. (ReBath)

 2,099

 2,099

 I.D. Images Acquisition, LLC

 2,020

 1,424

 IF&P Foods, LLC (FreshEdge)

 1,656

 6,114

 Improving Acquisition LLC

 1,672

 2,028

 Krayden Holdings, Inc.

 5,438

 -

 Light Wave Dental Management LLC

 6,774

 LSL Industries, LLC (LSL Healthcare)

 15,224

 15,224

 MacNeill Pride Group

 3,877

 2,978

 Pavion Corp., f/k/a Corbett Technology Solutions, Inc.

 -

 1,334

 PMFC Holding, LLC

 Regiment Security Partners LLC

 3,207

 Ruff Roofers Buyer, LLC

 10,966

 -

 SGA Dental Partners Holdings, LLC

 5,087

 1,724

 Siegel Egg Co., LLC

 1,207

 Sundance Holdings Group, LLC

 -

 Techniks Holdings, LLC / Eppinger Holdings Germany GMBH

 1,450

 -

 Trademark Global LLC

 United Safety & Survivability Corporation (USSC)

 2,942

 Universal Marine Medical Supply International, LLC (Unimed)

 -

 2,035

 USALCO, LLC

 1,494

 1,462

 Vehicle Accessories, Inc.

 1,671

 1,671

 Worldwide Produce Acquisition, LLC

 1,286

 -

 Total unfunded commitments

 $
 147,928

 $
 149,338

 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, 2023 and 2022, management was not aware of any material
pending or threatened litigation that would require accounting recognition or financial statement disclosure.

 F- 38

 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, 2023, 2022 and 2021,
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, 2023, 2022 and 2021.

 2023

 2022

 2021

 Net increase (decrease) in net assets resulting from operations

 $

 $

 $

 Weighted average shares of common stock outstanding – basic and diluted

 39,250,232

 27,184,302

 10,718,083

 Earnings (loss) per share of common stock – basic and diluted

 $
 1.96

 $
 1.68

 $
 2.08

 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, 2023, 2022
and 2021.

 F- 39

 These reclassifications have no impact on net assets.

 2023

 2022

 2021

 Increase (decrease) in distributable earnings

 $

 $

 $

 Increase (decrease) in additional paid-in capital

 $
 ( 101
)

 $
 ( 29
)

 $
 ( 257
)

 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, 2023, 2022 and 2021:

 2023

 2022

 2021

 Net increase (decrease) in net assets resulting from operations

 $

 $

 $

 Net change in unrealized losses (gains) from investments

 ( 2,944
)

 ( 5,502
)

 ( 11,829
)

 Non-deductible expenses, including excise taxes, offering costs disallowed

 Capital loss carryforward

 10,686

 -

 -

 Other book tax differences

 ( 65
)

 ( 67
)

 Taxable income before deductions for distributions

 $
 84,853

 $
 40,225

 $
 10,833

 For income tax purposes, distributions made to
stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof.

 For the year ended December 31, 2023, the Company
incurred $ 101 of U.S. federal excise tax. There was no U.S. federal excise tax incurred for the years ended December 31, 2022 or 2021,
respectively.

 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, 2023, 2022 and 2021 were as follows.

 2023

 2022

 2021

 Ordinary income

 $
 81,617

 $
 39,553

 $
 10,514

 Capital gains

 -

 -

 -

 Return of capital

 -

 -

 -

 Total

 $
 81,617

 $
 39,553

 $
 10,514

 F- 40

 For the years ended December 31, 2023, 2022 and 2021, the components
of accumulated earnings on a tax basis were as follows.

 2023

 2022

 2021

 Undistributed net investment income (loss)

 $

 4,227

 $

 $

 Undistributed capital gains

 -

 -

 -

 Capital loss carryforward

)

 -

 -

 Other accumulated gain (loss)

 -

 -

 -

 Other temporary book / tax differences

 ( 792

)

 ( 857

)

 ( 924

)

 Net unrealized appreciation (depreciation)

 20,275

 17,331

 Total

 $

 13,024

 $

 17,465

 $

 11,224

 Capital losses can be carried forward indefinitely
to offset future capital gains. 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 and 2021, the Company had no capital loss carryforwards.

 As of December 31, 2023, 2022 and 2021, the Company's aggregate
unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes was as follows:

 2023

 2022

 2021

 Tax cost

 $
 1,356,025

 $
 1,157,635

 $
 570,290

 Gross unrealized appreciation

 $
 25,718

 $
 21,476

 $

 Gross unrealized depreciation

 ( 5,443
)

 ( 4,145
)

 -

 Net unrealized appreciation/(depreciation) on investments

 $
 20,275

 $
 17,331

 $

 KABDC Corp, LLC and KABDC Corp II, LLC are wholly
owned subsidiaries that were formed in December 2021 and October 2023, respectively. Each of these wholly owned subsidiaries are Delaware
LLCs that have elected to be treated as a corporation for U.S. tax purposes. As such, KABDC Corp, LLC and KABDC Corp II, LLC are subject
to U.S. Federal, state and local taxes. For the Company's tax years ended December 31, 2023, 2022 and 2021, KABDC Corp, LLC and
KABDC Corp II, 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, 2023, 2022
and 2021, 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- 41

 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, 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)

 2023

 2022

 2021

 Net Asset Value, Beginning of Period (2)

 $
 16.50

 $
 16.22

 $
 14.86

 Results of Operations:

 Net Investment Income

 2.16

 1.48

 0.94

 Net
 Realized and Unrealized Gain (Loss) on Investments (3)

 ( 0.18
)

 0.14

 1.28

 Net Increase (Decrease)
 in Net Assets Resulting from Operations

 1.98

 1.62

 2.22

 Distributions to Common Stockholders

 Distributions

 ( 2.06
)

 ( 1.34
)

 ( 0.86
)

 Net Decrease in Net
 Assets Resulting from Distributions

 ( 2.06
)

 ( 1.34
)

 ( 0.86
)

 Net Asset Value, End of Period

 $
 16.42

 $
 16.50

 $
 16.22

 Shares Outstanding, End of Period

 41,603,666

 35,879,291

 19,227,902

 Ratio/Supplemental
 Data

 Net assets, end of period

 $
 683,056

 $

 $
 311,969

 Weighted-average shares outstanding

 39,250,232

 27,184,302

 10,718,083

 Total Return (4)

 12.5
 %

 10.3
 %

 14.2
 %

 Portfolio turnover

 15.5
 %

 17.6
 %

 31.3
 %

 Ratio of operating expenses to average net
 assets (5)

 11.9
 %

 7.9
 %

 5.8
 %

 Ratio of net investment income (loss) to average
 net assets (5)

 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, 2023,
2022 and 2021, such share transactions include the effect of share issuances of $ 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.

 (5)
 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).

 F- 42

 Note 12. 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 16, 2024, the Company paid a distribution
of $ 0.53 per share to each common stockholder of record as of December 29, 2023. The total distribution was $ 22,050 and $ 1,573 was reinvested
into the Company through the issuance of 95,791 shares of common stock.

 On February 14, 2024, the Company sold 7,089,771 shares
of its common stock for a total aggregate offering price of $ 118,689. As of February 22, 2024, the Company has subscription agreements
with investors for an aggregate capital commitment of $ 1,046,928 to purchase shares of common stock ($ 269,945 is undrawn).

 F- 43

 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

 Our management, with the participation of
our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as
defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of
the end of the period covered by this Annual Report on Form 10-K. Based on such evaluation, our Chief Executive Officer and Chief Financial
Officer have concluded that, as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.

 Report of Management on Internal Control
Over Financial Reporting

 This annual report does not include an annual
report of management's assessment regarding internal control over financial reporting or attestation report of our registered public
accounting firm due to a transition period established by the rules of the Securities and Exchange Commission for newly public companies.

 Internal Control Over Financial Reporting

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

 ITEM 9B. OTHER INFORMATION

 None.

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS

 Not Applicable.

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

definitive Proxy Statement for its 2024 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31,

 ITEM 11. EXECUTIVE COMPENSATION

definitive Proxy Statement for its 2024 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31,

 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS

definitive Proxy Statement for its 2024 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31,

 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE

definitive Proxy Statement for its 2024 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31,

 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

definitive Proxy Statement for its 2024 Annual Stockholder Meeting, to be filed with the SEC within 120 days after December 31,

 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, 2023 and 2022

 Consolidated Statements of Operations for the years ended December
31, 2023, 2022 and 2021

 Consolidated Statements of Changes in Net Assets for the years ended
December 31, 2023, 2022 and 2021

 Consolidated Statement of Cash Flows for the years ended December 31,
2023, 2022 and 2021

 Consolidated Schedules of Investments as of December 31, 2023 and 2022

 (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

 Advisory Agreement (1)

 10.2

 Amendment
 to Investment Advisory Agreement (8)

 10.3

 Administration

 10.4

 License

 10.5

 Indemnification

 10.6

 Custody

 10.7

 Subscription

 10.8

 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)

 10.9

 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)

 10.10

 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)

 10.11

 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)

 10.12

 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)

 10.13

 Senior
 Secured Revolving Credit Agreement (4)

 10.14

 Loan
 and Security Agreement (4)

 10.15

 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)

 10.16

 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)

 10.17

 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)

 10.18

 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 March 1, 2021 (8)

 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

 Schema Document.*

 101.CAL

 Calculation Linkbase Document.*

 101.DEF

 Definition Linkbase Document.*

 101.LAB

 Label Linkbase Document.*

 101.PRE

 Presentation Linkbase Document.*

 Cover Page Interactive Data

 (1)

 from the Company's Amendment No. 2 to Form 10, as filed with the Securities and Exchange Commission on November 9,
 2020.

 (2)

 from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 9, 2021.

 (3)

 from the Company's Form 10-K, as filed with the Securities and Exchange Commission on February 26, 2021.

 (4)

 from the Company's Form 8-K, as filed with the Securities and Exchange Commission on February 25, 2022.

 (5)

 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)

 from the Company's Form 8-K, as filed with the Securities and Exchange Commission on January 6, 2023.

 (8)

 from the Company's Form 10-K, as filed with the Securities and Exchange Commission on March 13, 2023.

 (9)

 from the Company's Form 8-K, as filed with the Securities and Exchange Commission on July 5, 2023.

 (10)

 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.

 *

 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: February 29, 2024

 /s/ Douglas L. Goodwillie

 Name:

 Douglas L. Goodwillie

 Title:

 Co-Chief Executive Officer

 (Co-Principal Executive Officer)

 Date: February 29, 2024

 /s/ Kenneth B. Leonard

 Name:

 Kenneth B. Leonard

 Title:

 Co-Chief Executive Officer

 (Co-Principal Executive Officer)

 Date: February 29, 2024

 /s/ Terry A. Hart

 Name:

 Terry A. Hart

 Title:

 Chief Financial Officer and Treasurer

 (Principal Financial and Accounting Officer)

 NONE 0.94 1.48 2.16 1.68 1.96 2.08 10718083 27184302 39250232 As of December 31, 2022, 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.
 As of December 31, 2022, 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 London Interbank Offered Rate ("LIBOR" or "L") (which can include one-, two-, three- or six-month LIBOR), 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, 2022, 3.8% of the Company's total assets were in non-qualifying investments.
 On December 5, 2022, the Company funded a $6,254 first lien senior secured loan in Light Wave Dental Management LLC. The loan has an annual interest rate of 30% with a minimum of 1.3x MOIC (multiple on invested capital) if the loan is repaid prior to June 6, 2023 with further increases above 1.3x thereafter. The interest and the prepayment premium are payable to the Company upon a triggering event or maturity in September 2023.
 10718083 27184302 39250232 1.68 1.96 2.08 false FY 0001747172 0

 2024-02-22

 2023-06-30

 2020-12-31

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