Carlyle Secured Lending Q3 Net Investment Income Rises to $0.36 a Share

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter 2026 net investment income was $0.36 a share, covering the $0.35 dividend, while NAV per share rose 0.3% to $15.65.

Carlyle Secured Lending (CGBD), an externally managed specialty finance company focused on middle-market lending, reported net investment income of $0.36 a share for the third quarter ended September 30, 2026, matching adjusted net investment income and covering the $0.35 quarterly dividend.

That per-share figure reversed a sequential dip after the first quarter’s $0.36 and the second quarter’s $0.35. Net investment income rose to $24.98 million from $24.00 million, and adjusted net investment income rose to $25.08 million from $24.09 million. Total investment income increased to $63.20 million from $62.09 million.

Net asset value per common share rose 0.3% to $15.65 from $15.61 as of June 30, reversing a 1.8% decline in the prior quarter. The company said the increase was primarily driven by accretion from share repurchases and net investment income in excess of the base dividend.

Net realized and change in unrealized losses narrowed to $1.21 million from $24.06 million, lifting the net increase in net assets resulting from operations to $23.78 million from a $0.06 million net decrease. Net income was $0.35 a share.

Chief Executive Officer Alex Chi said the company continued to execute its strategy, resulting in increased earnings and a stable NAV, and that it was selective in deploying new capital given an uncertain market backdrop.

The company originated $80.93 million of investments in the quarter, with a weighted average yield of 9.6%, down from $248.00 million of fundings at a 9.1% yield in the second quarter. First-lien originations fell to $77.18 million from $241.46 million. Sales and repayments rose to $128.94 million from $67.69 million, producing net investment activity of negative $48.01 million versus positive $180.31 million.

Total investments at fair value declined to $2.34 billion from $2.36 billion. The portfolio expanded to 180 companies, with a weighted average yield on income-producing investments of 10.8%, up from 10.4%. Non-accrual investments remained at seven borrowers, representing 2.2% of the portfolio on amortized cost and 1.1% on fair value. Senior secured exposure rose to 96.0% from 95.0%.

Investment funds rose to 9.7% of the portfolio from 8.2%. First-lien debt fell to 81.6% from 82.0%, and equity fell to 5.3% from 6.5%. Total liquidity was $598.2 million in cash and undrawn debt capacity.

Credit Fund produced an annualized yield of 18.4% to CGBD through its $1.2 billion investment portfolio, up from 17.6% in the prior quarter. Structured Credit Partners grew its portfolio to $2.1 billion of investments and produced an annualized yield of 20.3% to CGBD. SCP priced one CLO financed with long-term, non-mark-to-market, and predominantly investment-grade rated CLO debt. Inclusive of the $1.2 billion of assets at Credit Fund, where no management fees are charged, the annualized management fee rate was 0.99%, down from the base rate of 1.50%.

The company repurchased $6.1 million of shares during the quarter at an average discount to June 30 NAV of 31.5%, resulting in NAV accretion of $0.04 a share. Common shares outstanding fell to 68.59 million from 69.16 million. Since inception, it had repurchased $208.7 million of shares as of September 30.

The board declared a fourth-quarter 2026 dividend of $0.35 a share, payable January 19, 2027, to holders of record December 31, 2026. The company said the dividend continues to be supported by an estimated $0.72 a share in spillover income.