Mission Statement, Vision, & Core Values (2024) of Carlyle Secured Lending, Inc. (CGBD)

An Overview of Carlyle Secured Lending, Inc. (CGBD)

General Summary of Carlyle Secured Lending, Inc. (CGBD)

Carlyle Secured Lending, Inc. (CGBD) is a publicly traded investment company established under the Investment Company Act of 1940. The company primarily focuses on providing secured debt investments to U.S. middle-market companies. As of 2024, CGBD has built a robust portfolio comprising 175 investments across 128 portfolio companies and 26 industries, with a total fair value of approximately $1.7 billion.

Throughout its history, CGBD has developed a diverse range of financial products and services, specializing in first lien and second lien senior secured loans. These offerings cater primarily to companies with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) between $25 million and $100 million.

As of 2024, CGBD reported total assets amounting to $1.8 billion, with net assets per common share valued at $16.85 as of September 30, 2024.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Carlyle Secured Lending, Inc. achieved a net investment income of $24.0 million, equating to $0.47 per common share. After adjusting for one-time expenses related to debt issuance, the adjusted net investment income per share was reported at $0.49.

During this period, CGBD declared dividends totaling $23.9 million, or $0.47 per share. The company's net investment income for the three months ending September 30, 2024, experienced a slight decline compared to the previous year, attributed to a decrease in portfolio size, although this was partially offset by lower non-accruals.

Investment activity during this quarter included fundings of $143.4 million and repayments totaling $171.2 million. The portfolio's non-accrual investments represented 1.2% of the total cost and 0.6% based on fair value.

Introduction to Company as a Leader in the Industry

Carlyle Secured Lending, Inc. stands out as one of the leading companies in the middle-market lending sector, leveraging its extensive expertise and resources from the Carlyle Group. The company primarily focuses on originating secured debt investments, which are crucial for providing financial solutions to middle-market firms that often face challenges accessing traditional financing.

As of September 30, 2024, CGBD's investment portfolio reveals a weighted average yield of 11.9% at amortized cost, underscoring its capability to generate attractive returns in a competitive landscape. The company’s strategic focus on first lien and second lien debt further solidifies its position as a trusted lender within the industry.

Mission Statement of Carlyle Secured Lending, Inc. (CGBD)

Overview of Carlyle Secured Lending, Inc. Mission Statement

Carlyle Secured Lending, Inc. (CGBD) is dedicated to providing high-quality secured lending solutions. The mission statement emphasizes the importance of generating sustainable income for shareholders while maintaining a commitment to risk management and operational excellence.

Core Components of the Mission Statement

1. Commitment to Shareholder Value

CGBD aims to create long-term value for its shareholders through a disciplined investment approach. As of September 30, 2024, the net asset value (NAV) per common share was $16.85, down from $16.99 at the end of 2023. The company declared dividends totaling $74.8 million for the nine months ended September 30, 2024, which reflects its commitment to returning capital to shareholders.

2. Focus on High-Quality Investments

The company strategically invests in secured debt instruments, primarily targeting U.S. middle-market companies. As of September 30, 2024, CGBD held 175 investments across 128 portfolio companies, with a total fair value of $1.7 billion. The portfolio is diversified across 26 industries, showcasing the company's commitment to high-quality investments that are expected to yield attractive returns.

3. Risk Management and Operational Excellence

CGBD prioritizes risk management in its investment strategies. The company has established rigorous underwriting standards and actively monitors its portfolio, which had a non-accrual rate of 1.2% based on cost as of September 30, 2024. The firm also emphasizes operational excellence, demonstrated by its ability to generate a net investment income of $80.2 million for the nine months ended September 30, 2024.

Vision Statement of Carlyle Secured Lending, Inc. (CGBD)

Vision Statement Overview

The vision statement of Carlyle Secured Lending, Inc. (CGBD) emphasizes a commitment to providing innovative financing solutions while fostering sustainable growth in the middle-market sector. The company aims to be a leader in secured lending by leveraging its expertise and resources to create value for its stakeholders.

Commitment to Middle-Market Growth

CGBD's vision focuses on empowering middle-market companies through tailored financial solutions. As of September 30, 2024, CGBD held 175 investments across 128 portfolio companies, reflecting a diverse investment strategy aimed at supporting growth in this sector. The total fair value of these investments was approximately $1.7 billion .

Innovative Financing Solutions

CGBD strives to lead the market in providing innovative financing options that meet the unique needs of its clients. The company has positioned itself to offer flexible lending solutions, which include senior secured loans and other credit facilities. For instance, as of September 30, 2024, the company had $790 million in total credit facility capacity, with $197.6 million drawn .

Focus on Risk Management

In its vision, CGBD emphasizes the importance of prudent risk management practices. The company maintains a low non-accrual rate, with non-accrual investments representing only 1.2% of the portfolio based on cost and 0.6% based on fair value as of September 30, 2024 . This careful approach to managing investments contributes to the company’s overall stability and reliability as a lender.

Commitment to Stakeholder Value

CGBD is dedicated to generating sustainable returns for its shareholders. The company declared dividends totaling $23.9 million, or $0.47 per share, for the third quarter of 2024 . This commitment to returning capital to shareholders reflects its operational success and alignment with its vision of creating long-term value.

Conclusion on Vision Statement

Carlyle Secured Lending, Inc.'s vision for 2024 encapsulates its focus on fostering growth in the middle-market sector, providing innovative financing solutions, and prioritizing risk management. By aligning its operational strategies with its vision, CGBD aims to enhance stakeholder value and solidify its position as a leader in secured lending.

Core Values of Carlyle Secured Lending, Inc. (CGBD)

Integrity

Integrity is the cornerstone of Carlyle Secured Lending, Inc. (CGBD), emphasizing ethical conduct and accountability in all business dealings. This core value ensures that the company maintains trust with its investors, stakeholders, and portfolio companies.

In 2024, CGBD demonstrated its commitment to integrity through transparent reporting practices. The company has consistently provided detailed disclosures in its financial statements, including a comprehensive breakdown of net investment income, which was reported as $24.0 million or $0.47 per common share for the third quarter of 2024 . Furthermore, the NAV per common share decreased to $16.85 as of September 30, 2024, from $16.95 the previous quarter, reflecting the company’s commitment to accurate and honest financial reporting .

Collaboration

Collaboration is vital for CGBD, fostering teamwork and partnerships that enhance investment opportunities and operational efficiency. The company's collaborative approach is evident in its strategic alliances within the Carlyle Group, leveraging shared resources and expertise.

As of September 30, 2024, CGBD managed a diverse portfolio with 175 investments across 128 portfolio companies, illustrating the effectiveness of its collaborative investment strategy . The company’s participation in the Carlyle Group’s extensive network enables it to access a broader range of investment opportunities and insights, thus enhancing its competitive edge in the market.

Excellence

CGBD strives for excellence in all aspects of its operations, from investment strategies to customer service. This core value drives the company to exceed expectations and achieve superior results for its stakeholders.

In the third quarter of 2024, CGBD achieved adjusted net investment income of $0.49 per share, reflecting excellence in its investment management . The firm’s focus on high-quality secured debt investments has contributed to a total fair value of investments reaching approximately $1.7 billion, underscoring its commitment to maintaining a robust and performing portfolio .

Responsiveness

Responsiveness is essential for CGBD, allowing the company to adapt swiftly to market changes and client needs. This core value ensures that the company remains agile and proactive in its investment approach.

In 2024, CGBD demonstrated its responsiveness by entering into a merger agreement with Carlyle Secured Lending III, facilitating an exchange of preferred stock for common stock . Additionally, the company maintained total liquidity of $354.8 million as of September 30, 2024, ensuring it can swiftly respond to investment opportunities and market fluctuations .

Accountability

Accountability is a fundamental value at CGBD, promoting responsible decision-making and ownership of outcomes. This principle ensures that all employees and management are held to high standards of performance and ethical behavior.

As part of its accountability framework, CGBD reported total dividends declared on common shares amounting to $23.9 million for the third quarter of 2024 . The company’s commitment to regular dividend payments demonstrates its accountability to shareholders, ensuring they are rewarded for their investments in a timely manner.

Updated on 16 Nov 2024

Resources:

1. Carlyle Secured Lending, Inc. (CGBD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carlyle Secured Lending, Inc. (CGBD)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Carlyle Secured Lending, Inc. (CGBD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.