Carlyle Secured Lending Q2 2026 Earnings Report

Carlyle Secured Lending EPS Results

• Actual EPS: $0.35
• Consensus EPS: $0.32
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Carlyle Secured Lending Revenue Results

• Actual Revenue: $62.09 million
• Expected Revenue: $59.43 million
• Beat/Miss: Beat by +$2.66 million
• YoY Revenue Growth: N/A

Carlyle Secured Lending Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: After Market Closes
• Conference Call Date: Friday, August 7, 2026
• Conference Call Time: 11:00AM ET

Carlyle Secured Lending (NASDAQ:CGBD) (NASDAQ: CGBD) is a closed-end, non-diversified business development company that provides customized debt financing solutions to middle-market companies. Chartered under the Investment Company Act of 1940, the company invests primarily in floating-rate senior secured loans, including first-lien, unitranche and one-stop structures. Its objective is to generate current income and capital appreciation through disciplined credit selection and active portfolio management.

The firm focuses on U.S. borrowers across a range of industries, including business services, healthcare, manufacturing and technology. By targeting sponsor-backed and independently owned enterprises with stable cash flows, Carlyle Secured Lending seeks to structure transactions that balance yield potential with downside protection. Its portfolio typically comprises secured obligations backed by company assets and receivables, providing a cushion against credit volatility in varied market environments.

Carlyle Secured Lending’s investment activities are overseen by Carlyle Global Credit Investment Management, the credit arm of The Carlyle Group. Leveraging global research capabilities and risk management frameworks, the team employs in-house credit analysis and market insights to source and monitor investments. Since commencing operations in 2018, the company has maintained a diversified portfolio and a floating-rate exposure designed to benefit from rising interest rate regimes.

Carlyle Secured Lending Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Net investment income of $0.35 per share fully covered the base dividend, leading the board to declare a third-quarter dividend at the same level. Management also cited $0.73 per share of spillover income and expects earnings and supplemental dividends to increase as its joint ventures ramp.
• Positive Sentiment: Carlyle’s platform closed $1.5 billion of new and incremental commitments, while CGBD funded $248 million and grew total investments to $2.4 billion. Management highlighted increasing selectivity, stable spreads, lower entry leverage, and a commitment rate below 5% for second-quarter pipeline deals.
• Positive Sentiment: Credit performance remained stable, with non-accruals at just 0.6% of investments at fair value and 1.2% at amortized cost; DCA returned to accrual status. The company also reported no software defaults across $7 billion of platform commitments over the past six years.
• Positive Sentiment: The MMCF and SCP joint ventures continued to scale, producing dividend yields of 17.6% and 18.7%, respectively. SCP expects to price two additional CLOs in 2026, while the broader program targets approximately $6 billion–$7 billion of assets over time.
• Negative Sentiment: NAV declined to $15.61 per share from $15.89, following approximately $24 million of realized and unrealized net losses driven partly by markdowns on SPF and US Infra. Management also acknowledged that macroeconomic and geopolitical uncertainty continues to suppress M&A activity, although it expects conditions to improve over the medium term.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the Carlyle Secured Lending, Inc. second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star one one again.

[Operator]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nishil Mehta, Head of Shareholder Relations. Sir, please go ahead.

[Nishil Mehta, Head of Shareholder Relations at Carlyle Secured Lending]

Good morning, and welcome to Carlyle Secured Lending second quarter 2026 earnings call. I'm joined by Alex Chi, CGBD's Chief Executive Officer, and Tom Hennigan, our President and Chief Financial Officer. Last night, we filed our Form 10-Q and issued a press release with a presentation of our results, which are available on the investor relations section of our website. Following our remarks today, we will hold a question-and-answer session for analysts and institutional investors.

[Nishil Mehta, Head of Shareholder Relations at Carlyle Secured Lending]

This call is being webcast, and a replay will be available on our website. Today's earnings call may include forward-looking statements reflecting our views with respect to, among other things, our future operating results and financial performance. Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. These statements are based on current management expectations, estimates, and projections that involve inherent risks and uncertainties.

[Nishil Mehta, Head of Shareholder Relations at Carlyle Secured Lending]

Including those identified in the Risk Factors and Cautionary Statement Regarding Forward-Looking Statements sections of our 10-K and 10-Qs. These risks and uncertainties could cause actual results to differ materially from those indicated in our forward-looking statements. CGBD assumes no obligation to update any forward-looking statements at any time. During this call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G, such as adjusted net investment income or adjusted NII.

[Nishil Mehta, Head of Shareholder Relations at Carlyle Secured Lending]

The company's management believes adjusted net investment income, adjusted net investment income per common share, adjusted net income, and adjusted net income per common share are useful to investors as additional tools to evaluate ongoing results and trends and to review our performance without giving effect to the amortization or accretion resulting from the new cost basis of the investments acquired and accounted for under the acquisition method of accounting in accordance with ASC 805.

[Nishil Mehta, Head of Shareholder Relations at Carlyle Secured Lending]

And the one-time purchase or non-recurring investment income and expense events, including the effects on incentive fees, and are used by management to evaluate the economic earnings of the company. A reconciliation of GAAP net investment income per share, the most directly comparable GAAP financial measure to adjusted NII per common share, can be found in the accompanying slide presentation for this call that is available on our website. A reconciliation of these measures may also be found in our earnings press release filed last night with the SEC on Form 8-K. With that, I'll turn the call over to Alex.

[Alex Chi, CEO at Carlyle Secured Lending]

Thanks, Nishil, good morning. On today's call, I'll give an overview of our second quarter results, including the quarter's investment activity and portfolio positioning, provide an update on our investment outlook. I'll hand the call over to our President and CFO, Tom Hennigan. During the second quarter, macroeconomic and geopolitical factors led to a complicated market backdrop for new deal activity. However, we continue to be very pleased with the strength of Carlyle Direct Lending's origination platform and the consistent credit performance of CGBD.

[Alex Chi, CEO at Carlyle Secured Lending]

In total, we closed $1.5 billion of new and incremental commitments at the platform level, excluding joint venture activity, funded $248 million of investments at CGBD, reflecting a strong quarter of originations. Our platform originations were up over 20% versus the first quarter, while platform selectivity continued to increase with a commitment rate on second quarter pipeline deals of less than 5%. On our new originations, weighted average spreads held steady in line with first quarter, while weighted average leverage on entry continued to decrease.

[Alex Chi, CEO at Carlyle Secured Lending]

Our enhanced origination team continued to drive several wins, Carlyle played a lead role in nearly 90% of platform originations. Repayments decreased in the quarter with $68 million of activity. Combined with $123 million in sales to our MMCF joint venture and $50 million of equity fundings at SCP, net investment activity drove total investments at CGBD to increase from $2.3 billion to $2.4 billion during the quarter. Moving to our investment funds, both of our JVs, MMCF and SCP, continue to scale and generate attractive returns to CGBD.

[Alex Chi, CEO at Carlyle Secured Lending]

Total investments at our MMCF joint venture increased to $1.2 billion, with the annualized dividend yield increasing by over 200 basis points to 17.6% in the quarter. At SCP, the portfolio grew to $1.7 billion, produced an annualized dividend yield of 18.7% to CGBD. During the quarter, we generated $0.35 per share of Net Investment Income on both a GAAP and adjusted basis. In line with our revised dividend policy, our board of directors declared a third quarter dividend of $0.35 per share, which is fully covered by Net Investment Income in the quarter.

[Alex Chi, CEO at Carlyle Secured Lending]

Our Net Asset Value as of June 30th was $15.61 per share, compared to $15.89 per share as of March 31st. The market remains focused on the software sector, we continue to see strong fundamental performance from the software borrowers in our book. As I've mentioned in prior quarters, our underwriting approach to borrowers in the software space remains highly disciplined, and our platform software track record is exemplary, with zero defaults on $7 billion in commitments to software deals over the last six years.

[Alex Chi, CEO at Carlyle Secured Lending]

Turning to portfolio construction, we remain focused on portfolio diversification while managing target leverage. As of June 30th, our portfolio grew to 177 companies across more than 25 industries. The average exposure to any single portfolio company was less than 60 basis points of total investments, and 95% of our investments were in senior secured loans. The median EBITDA across our portfolio was $101 million. As always, discipline and consistency drove performance in the second quarter, and we expect these tenets to drive performance in future quarters.

[Alex Chi, CEO at Carlyle Secured Lending]

Looking ahead, despite the complicated market backdrop mentioned earlier, we continue to expect strong activity in our market over the medium long term. We're well-positioned with a revitalized origination platform to take advantage of increasing market activity and to continue taking share. Looking at our pipeline, a significant majority of deals continues to be in old economy sectors, including industrials, aerospace and defense, healthcare, and consumer products.

[Alex Chi, CEO at Carlyle Secured Lending]

As manager performance dispersion increases, we expect the breadth of the Carlyle platform and the consistency of our performance to differentiate us through our ability to leverage Carlyle's scale, scope of investment capabilities, and dedicated in-house investing, portfolio management, and restructuring resources. With that, I'll now hand the call over to our President and CFO, Tom Hennigan.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Thank you, Alex. Today, I'll begin with an overview of our second quarter financial results. I'll discuss portfolio performance before concluding with detail on our balance sheet positioning. Total investment income for the second quarter was $62 million. Below prior quarter, primarily driven by a decline in interest income due to lower OID accretion from reduced repayment activity, as well as a decrease in fee income, partially offset by increased dividend income from both the MMCF and SCP JVs.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Total expenses of $38 million also decreased versus the prior quarter, primarily as a result of lower interest expense due to lower outstanding debt balance. The result was net investment income for the second quarter of $24 million, or $0.35 per share on both a GAAP basis and after adjusting for the impact of asset acquisition accounting. Achieving NII of $0.35 per share means we fully earned our new base dividend. Our board of directors declared the dividend for the third quarter of 2026 at that $0.35 per share base dividend level.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Which is payable to stockholders of record as of the close of business on September 30th. As a reminder, we're maintaining our existing supplemental dividend policy, which targets paying out at least 50% of excess earnings above the base dividend, allowing us to deliver additional value to shareholders as earnings grow. As mentioned on prior earnings calls, we still expect the second quarter will be the near-term earnings trough, which means we not only expect to maintain full dividend coverage in future quarters.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

We anticipate an increase in earnings and supplemental dividends as we ramp the portfolios and earnings of both JVs over the course of the next four to six quarters. In addition, we currently estimate we have $0.73 per share of spillover income to support the quarterly dividend. Given CGBD shares continued to trade at a compelling discount, we repurchased $12.5 million of shares at an average discount of 29% during the second quarter, resulting in $0.07 of accretion to NAV per share.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

In total, repurchases since inception of the program now exceed $200 million. On valuations, our total aggregate realized and unrealized net loss for the quarter was about $24 million, or $0.35 per share, partially driven by markdowns on a limited number of investments. To highlight a couple of the larger movers, on our investment in SPF debt and equity, we expect a successful exit later this year. However, we did adjust the mark on our residual equity position down to align with updated expectations on total recovery to lenders, given higher than anticipated proceeds to management and doctors.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Overall, it remains a very positive story with an expected MOIC of 1.4x and highlights the impact of our dedicated workouts team. On US Infra, which is a provider of inspection, maintenance, and rehabilitation services for critical infrastructure, based on our expectation of lower earnings for fiscal year 2026, we lowered our valuation as of 6/30. Our workout team is closely working with the sponsor and management team to rightsize the capital structure and provide additional liquidity to support the business to best position the company for a recovery.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Turning to credit performance, we continue to see overall stability and credit quality across the portfolio. The fair value of loans utilizing PIK provisions decreased during the second quarter, and the majority of our PIK is underwritten at origination or for performing borrowers and is what we would consider to be good PIK. Non-accruals continue to remain low as of June 30th and represent only 0.6% of investments at fair value and 1.2% at amortized cost.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

The restructuring of DCA closed in the second quarter, that investment was placed back on accrual status, while US Infra and Project Castle, also known as Material Handling Systems, were added to non-accrual status. Moving to the Middle Market Credit Fund, our longstanding JV, we continue to focus on maximizing both asset growth and returns. During the second quarter, we closed a $400 million upsize to our main credit facility, increasing total commitments to $1.2 billion, an attractive spread of SOFR+170 basis points.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

During the second quarter, MMCF achieved a 17.6% dividend yield, an increase of over 200 basis points quarter-over-quarter, generating for $1.2 billion of in investments with no fees at the joint venture. The increases in both debt and equity commitments that closed earlier this year position us to continue asset growth and income generation at the JV. Our newer JV, Structured Credit Partners or SCP, ramps to $1.7 billion of investments and produced a dividend yield of 18.7%.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

In April, we were able to capitalize on market volatility and accelerated the timeline for the first two CLOs to price and close, benefiting from lower loan prices and tight liability pricing. We expect SCP to price and close two additional CLOs in 2026, subject to market conditions, in line with our plan to ramp at a cadence of four CLO issuances per year to ensure vintage diversification. Over time, the JV is expected to manage approximately $6 billion-$7 billion of assets fee-free at SCP. I'll finish by touching on our financing facilities and leverage.

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Our debt stack is 100% floating rate, matching our primarily floating rate assets, meaning CGBD is well-positioned in advance of any additional interest rate movement. At quarter end, statutory and net financial leverage were both 1.2x. Given our current strong liquidity profile, we believe we're well-positioned to benefit from both more attractive terms for new investments and the expected pickup in deal volume in future quarters. With that, I'll turn the call back over to Alex.

[Alex Chi, CEO at Carlyle Secured Lending]

Thanks, Tom. As we approach the middle of the third quarter, our portfolio remains resilient and our strategy remains unchanged. We continue to focus on sourcing transactions with significant equity cushions, conservative leverage profiles, and attractive spreads relative to market levels, and expect to take advantage of improved conditions in the market with a revitalized origination platform. Our pipeline of new originations is active, and with a stable, high-quality portfolio, CGBD stockholders are benefiting from the continued execution of our strategy.

[Alex Chi, CEO at Carlyle Secured Lending]

As always, we remain committed to delivering a resilient, stable cash flow stream to our investors through consistent income and solid credit performance. I'd like to now hand the call over to the operator to take your questions. Thank you.

[Operator]

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. Our first question is going to come from the line of Rick Shane with JPMorgan. Your line is open. Please go ahead.

[Rick Shane, Analyst at JPMorgan]

Hey, guys. Thanks for taking my question this morning. Really just curious right now as you sort of look at the deal market, we're starting to see underlying equity values improve in some sectors, and at the same time, M&A activity remains pretty muted. I am curious sort of what you are seeing in terms of pricing and terms related to new transactions versus refinanced transactions, and opportunities to rotate the portfolio.

[Alex Chi, CEO at Carlyle Secured Lending]

Sure. Thanks, Rick, for the question. It's Alex. As you can see from the results, we were able to find some attractive new investments in the second quarter, and the pipeline for the third quarter also continues to be pretty robust. Having said that, the overall landscape for M&A continues to be a bit muted. I think that's driven by the continued geopolitical uncertainty and also the macroeconomic uncertainty. I think once you see a clearer picture of what will happen there, I think that should unleash some more M&A activity that we'll all benefit from.

[Alex Chi, CEO at Carlyle Secured Lending]

Having said that, in terms of what the pipeline looks like, these are companies that are more shielded from what's happening out in the economy, clearly away from software. Most of the deals that we're looking at and are in our pipeline are within industrials, aerospace and defense, healthcare, basic consumer products, etc. In terms of pricing, as you can see from our results, the weighted average spread that we saw really held steady from the first quarter. We didn't really see much more spread widening.

[Alex Chi, CEO at Carlyle Secured Lending]

Having said that, it really depends on the sector. I think that if you see a very attractive industrial deal, per se, then I think you'll see some competition, and that'll lead to a bit tighter pricing. Having said that, we've seen spreads hold in there, and the doc standards have also continued to improve. That's also one of the nice parts about just being in the middle market where you see just more consistent deal flow and in terms holding steady.

[Rick Shane, Analyst at JPMorgan]

Yeah. No, it's an interesting observation in terms of spreads. I think obviously base rates are a tailwind for the industry, but with rising non-accruals in a lot of portfolios, there's an offset. It does look like you guys picked up a little bit of yield. You actually were able to benefit efficiently from the pickup in base rates it looks like.

[Alex Chi, CEO at Carlyle Secured Lending]

Yeah, I think we saw some modest benefit. Again, we also benefit from the fact that our non-accruals are quite low. It allows us to be on offense with respect to deployment and just looking for the best opportunities to invest in. Just given where we've landed on that front as well as our leverage, not only we're able to deploy into attractive opportunities, but we were also able to take advantage of the discount and also purchase some shares too.

[Rick Shane, Analyst at JPMorgan]

Got it. We saw that as well. Pretty straightforward quarter. We appreciate you guys taking our questions.

[Alex Chi, CEO at Carlyle Secured Lending]

Thank you very much.

[Operator]

Thank you. One moment for our next question. Our next question will come from the line of Erik Zwick with Lucid Capital Markets. Your line is open. Please go ahead.

[Analyst at Lucid Capital Markets]

Hey, guys. Good morning. This is Justin. I'm for Erik. I wanted to go back to yields a little bit. Obviously, it held steady from the first quarter. Can you talk about the spread environment thus far in the second half of the year, and how are you thinking about balancing capital deployment in terms of new loans versus share repurchases given the current discount to NAV?

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Hey, morning, Justin. Thanks for the question. We're trying to find the right balance and continue to be active in deploying new capital. Certainly, where we've been focused, and you'll see is we had increases in the yields at both JVs. We're certainly focused on depending on the spread for individual investments is continuing to deploy at the JV because that's very accretive for our investors. Likewise, we've been nicely ramping the SCP JV. We're trying to find the right balance between to be active on both the new deal front and on share repurchases.

[Analyst at Lucid Capital Markets]

Okay, thanks. Just follow up. On the other income line, I was curious on the quarter-over-quarter decline. Was that due to lower refi and amendment activity, or what drove that decrease?

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Yes, it was. Last quarter, we had more outsized one-time income from repayment activity. One particular repayment had a large repayment fee. This quarter really more normalized. It's actually probably a lower level than normal because we had very limited other income this quarter. I'd say that last quarter was atypically high, and this quarter was actually lower than, let's say, our steady baseline.

[Analyst at Lucid Capital Markets]

Okay. All right. Great. Thanks for the color there. I appreciate it.

[Alex Chi, CEO at Carlyle Secured Lending]

Thanks, Justin.

[Operator]

Thank you. As a reminder, if you would like to ask a question, please press star one one. Our next question is going to come from the line of Robert Dodd with Raymond James. Your line is open. Please go ahead.

[Robert Dodd, Analyst at Raymond James]

Morning, everybody. On your comments, obviously your macro geopolitical, et cetera. Yeah, there's a lot going on out there. The M&A environment still being a little muted. A lot of other competitors have given a more, a pretty, I would say generally hopeful and optimistic view about the back end of this year. It sounds like that's not necessarily to say the M&A pipeline is building right now, but they're hopeful it will. How would you characterize your view? Do we need flat out stability before you even get more optimistic about the back half of the year, or how are you thinking about that?

[Alex Chi, CEO at Carlyle Secured Lending]

Hey, Robert. Thanks a lot for the question. Definitely a lot going on right now. Look, I think with respect to just the M&A market coming back in full force, I do think you need more clarity with respect to the inflationary picture, what's going to happen to rates. That is linked to what's happening out of the Middle East and all the derivatives and permutations from oil prices. If your business is linked whatsoever to those impacts, it's really difficult to forecast what the near to medium term is going to look like for your business, and that's just going to lead to an impact on valuation from buyers.

[Alex Chi, CEO at Carlyle Secured Lending]

Therefore, if you're a seller, unless you really have to generate proceeds, why not wait for another quarter or two before you put it into the market for a successful outcome? At the same time, if you put it in the market right now and you don't achieve the outcome that you want, it's really hard to ignore the valuations that came through as part of the auction process. As a result for those kinds of businesses, I do think you're going to have to wait until that comes until likely later in the year or even early next year.

[Alex Chi, CEO at Carlyle Secured Lending]

Having said that, there's still a healthy amount of flow that we're seeing with businesses where you can put a box around those risks or are not as impacted because they are recession resistant or more non-cyclical. We're still seeing some healthy multiples for those kinds of businesses. I think that where we are, M&A is quite a seasonal type of dynamic. Right now, the top of the funnel has certainly expanded.

[Alex Chi, CEO at Carlyle Secured Lending]

As these deals start to get signed up and the commitments come to fruition, it's going to still take another quarter or two in order to fund as part of the closing process. That's why I think that perhaps some of our peers are saying that they're a bit more optimistic about the fourth quarter because at the top of the funnel, I think across the board, we are seeing a bit of an expansion for that. It really remains to be seen, and I think as a result of all these forces, I think you just still have to be quite selective about what you invest in.

[Robert Dodd, Analyst at Raymond James]

Got it. Thank you for that color. Very helpful. If we look forward to the year 2026 for the credit partners or the SCP, you indicate plans to do another two CLOs this year, four a year is the plan, right? If the market's much hotter in, say, 2027, would you be willing to change those plans? You articulated the plan is to diversify by vintage, different vintages of collateral can be a good thing. We know that the 2021 was a big vintage, we know what's going on with the 2021s. Is there anything that could get you to change that ramp-up schedule on the SCP?

[Robert Dodd, Analyst at Raymond James]

Do you just want to stick to four a year, no more, and the diversification just matters that much, even if the market gets hot?

[Tom Hennigan, President and CFO at Carlyle Secured Lending]

Robert, I can say when we talk with Lauren Basmadjian, who runs our liquid business, she is laser-focused on vintage diversification. Something that when we started this program and idea, it's something we were very focused on. Not to say it's not something we consider, and we have conversations based on the market, we're very focused on that vintage diversification. We anticipate it'll be that four CLO cadence. Could timing result in whether one year has three CLOs, one year has five CLOs? It's possible, we're going to be focused on evenly deploying over the horizon.

[Robert Dodd, Analyst at Raymond James]

Got it. I'm not going to disagree that vintage matters. Appreciate all that. One more. On the sectors that you find attractive right now. In industrials aerospace, and GICS aerospace is a subset within industrials. Any particular niches within. Obviously, I don't think you say industrials, I'm not thinking you meaning deep cyclical steel foundries or things like that. Could you now give us some kind of insight into where you're looking specifically within those pretty broad categories?

[Alex Chi, CEO at Carlyle Secured Lending]

You're absolutely right that we are going to stay away from the more cyclical OEM, new install type of industrial businesses. We are gravitating much more towards aftermarket repair, replacement, short repair maintenance type cycles. That's what we're really looking at. You can apply that towards pretty many broad parts of the economy. I wouldn't say that we're just drilling down on a certain subsector within industrials. It's more of the overlay of the type of business model that we're looking at.

[Alex Chi, CEO at Carlyle Secured Lending]

At the same time, I think we are being a bit more careful within sectors that were supposed to be recession-resistant, such as, let's say, home services or residential services. That's a pretty popular area for private equity firms to invest in, is buy and builds. As a result, direct lenders will take a look at those things. If you unpack those areas, we are starting to see a bit of top-line volume deceleration because I think people are feeling it in terms of what's happening in the economy, and margins are starting to get a bit squeezed.

[Alex Chi, CEO at Carlyle Secured Lending]

I think that's a sector that, again, I think if you unpack the different portfolios of various private credit lenders, you're going to see a bunch of these platforms in there. I think given what's going on, we also just have to be more selective about areas to stay away from, too.

[Robert Dodd, Analyst at Raymond James]

Got it. Thank you.

[Operator]

Thank you.

[Alex Chi, CEO at Carlyle Secured Lending]

Thanks, Dodd.

[Operator]

I would now like to hand the conference back over to Alex Chi for closing remarks.

[Alex Chi, CEO at Carlyle Secured Lending]

Great. Thanks, everyone, for joining the call. We appreciate your support. Please reach out with any further questions, and enjoy the rest of your summer.

[Operator]

This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day. Goodbye.

Participants

Executives

• Nishil Mehta, Head of Shareholder Relations
• Alex Chi, CEO
• Tom Hennigan, President and CFO

Analysts

• Rick Shane, Analyst at JPMorgan
• Analyst at Lucid Capital Markets
• Robert Dodd, Analyst at Raymond James