The following is a summary of the Crescent Capital BDC, Inc. (CCAP) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Net investment income per share in Q3 was $0.64, annualizing to an NII return on equity of 12.6%.

• Total investment income increased by 5% to $51.6 million, mainly due to a rise in non-recurring investment income including accelerated amortization and fee income which grew from $1.8 million to $3.3 million.

• GAAP earnings per share for Q3 were $0.41, reflecting higher net investment income offset by net unrealized and realized losses of $0.22 per share.

Business Progress:

• Crescent Capital BDC ended the quarter with around $1.6 billion of investments at fair value across 183 companies, maintaining a portfolio largely composed of first-lien loans which represent 90% of the total portfolio at fair value.

• The company successfully deployed $73 million in Q3, with 97% in first-lien investments and continued strong performance in managing non-accrual statuses below the industry average.

Opportunities:

• The forecast for significant pickup in deal activity due to recent and future rate cuts should lead to greater momentum in LBO activity.

• Crescent Capital's dominant position in the direct lending market, especially in non-cyclical industries and the lower and core middle market, provides a competitive edge and opportunity for further growth.

Risks:

• Unrealized losses in the portfolio were primarily driven by four names, including controlled investments, which could indicate potential vulnerabilities in specific segments of the portfolio.

• The depreciation in the NAV per share by $0.10 this quarter, primarily driven by net unrealized marks, highlights the fluctuating valuations that can impact the portfolio's stability.

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