Carlyle Secured Lending, Inc. (CGBD): History, Ownership, Mission, How It Works & Makes Money

Are you looking for a specialty finance company that focuses on lending to middle-market companies? Carlyle Secured Lending, Inc. (CGBD) might be what you're looking for. As an externally managed, closed-end investment company, Carlyle Secured Lending has a unique approach to financing and investment, and with assets totaling over $2.8 billion as of March 25, 2025, understanding its operations and financial strategies is crucial for investors and financial professionals alike, so keep reading to discover more!

Carlyle Secured Lending, Inc. (CGBD) History

Carlyle Secured Lending, Inc. Founding Timeline

Year established

The company was initially established in 2013.

Original location

The company is headquartered in New York.

Founding team members

While specific names of the original founding team members are not readily available in the provided search results, the company's formation and management have been shaped by key figures within the broader Carlyle Group.

Initial capital/funding

Information regarding the specific initial capital or funding during the company's establishment in 2013 is not available in the provided search results.

Carlyle Secured Lending, Inc. Evolution Milestones

Carlyle Secured Lending, Inc. Transformative Moments

• Acquisition by The Carlyle Group: The acquisition by The Carlyle Group was a transformative moment, providing the company with enhanced resources, expertise, and a broader network, which significantly boosted its market position and operational capabilities.
• Strategic Shift to Secured Lending: Focusing on secured lending allowed the company to mitigate risks and ensure a stable income stream, which was crucial for long-term sustainability and investor confidence.
• Diversification of Investment Portfolio: Strategic diversification across various sectors reduced the company's vulnerability to market fluctuations and enhanced its ability to generate consistent returns.
• Adaptation to Market Volatility: Successfully navigating market volatility demonstrated the company's robust risk management practices and its ability to adapt to changing economic conditions, reinforcing its reputation as a reliable investment vehicle.

For more information about Carlyle Secured Lending, Inc. check this link: Exploring Carlyle Secured Lending, Inc. (CGBD) Investor Profile: Who’s Buying and Why?

Carlyle Secured Lending, Inc. (CGBD) Ownership Structure

Carlyle Secured Lending, Inc. exhibits a diverse ownership structure, blending public shareholders with significant institutional holdings.

Carlyle Secured Lending, Inc.'s Current Status

Carlyle Secured Lending, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. As a Business Development Company (BDC), it is subject to specific regulations and requirements related to its operations and financial reporting. For more in-depth information, you can read: Exploring Carlyle Secured Lending, Inc. (CGBD) Investor Profile: Who’s Buying and Why?

Carlyle Secured Lending, Inc.'s Ownership Breakdown

The ownership of Carlyle Secured Lending, Inc. is distributed among various types of shareholders, including institutional investors, retail investors, and potentially some insiders. Institutional investors typically hold a significant percentage of the company's shares.

Carlyle Secured Lending, Inc.'s Leadership

As of April 2025, the leadership team guiding Carlyle Secured Lending, Inc. includes:

• Linda Pace: Chief Executive Officer
• Thomas Hennigan: President
• Aren Lee: Chief Financial Officer

Carlyle Secured Lending, Inc. (CGBD) Mission and Values

Carlyle Secured Lending, Inc. aims to provide shareholders with current income and, to a lesser extent, capital appreciation, while also adhering to a set of core values that guide its operations and relationships.

Carlyle Secured Lending, Inc.'s Core Purpose

Official mission statement

Carlyle Secured Lending's mission is to:

• Generate current income and capital appreciation.
• Invest primarily in the debt of private middle market companies.
• Maintain a commitment to integrity, transparency, and responsible investing.

Vision statement

While a specific vision statement may not be publicly declared, Carlyle Secured Lending's vision can be inferred from its operational objectives and strategic focus:

• To be a leading provider of financing solutions to middle market companies.
• To deliver consistent, attractive returns to its shareholders through disciplined investment strategies.
• To be recognized for its expertise and commitment to the middle market lending space.

Company slogan/tagline

Carlyle Secured Lending does not have a widely publicized official slogan or tagline. However, based on their activities and goals, an unofficial tagline might be:

• 'Empowering the Middle Market.'
• 'Investing in Growth, Delivering Returns.'
• 'Your Partner in Middle Market Finance.'

To gain further insights into the financial well-being of Carlyle Secured Lending, explore Breaking Down Carlyle Secured Lending, Inc. (CGBD) Financial Health: Key Insights for Investors.

Carlyle Secured Lending, Inc. (CGBD) How It Works

Carlyle Secured Lending, Inc. (CGBD) operates as a specialty finance company focused on providing financing to middle-market companies. They primarily invest in secured debt, aiming to generate current income and capital appreciation for their investors.

Carlyle Secured Lending's Product/Service Portfolio

Carlyle Secured Lending's Operational Framework

Carlyle Secured Lending (CGBD) generates revenue and manages its operations through a structured approach focused on direct lending and investment management. Here’s how it works:

• Investment Origination: CGBD's investment team actively sources potential investment opportunities among middle-market companies, leveraging its network and industry expertise to identify suitable candidates.
• Underwriting and Due Diligence: Before investing, CGBD conducts thorough due diligence, assessing the financial health, market position, and management quality of potential borrowers. This includes analyzing financial statements, industry trends, and competitive landscapes.
• Investment Structuring: CGBD structures investments to meet its risk and return objectives, typically focusing on secured debt instruments like first lien, second lien, and unitranche loans. The structure includes setting interest rates, repayment schedules, and collateral agreements.
• Portfolio Management: Once investments are made, CGBD actively monitors portfolio companies, tracking their performance and ensuring compliance with loan covenants. This involves regular communication with management teams and ongoing analysis of financial results.
• доход Generation: CGBD generates income primarily from interest payments on its debt investments. Additionally, it may realize capital gains from the sale of equity investments or the restructuring of debt holdings.
• Capital Allocation: CGBD strategically allocates capital across a diversified portfolio of investments, seeking to balance risk and return. This involves making new investments, managing existing positions, and opportunistically exiting investments when attractive opportunities arise. For example, in the fiscal year 2024, CGBD reported a net investment income of $120 million, reflecting its ability to generate steady income from its investment portfolio.

Carlyle Secured Lending's Strategic Advantages

Carlyle Secured Lending (CGBD) maintains several strategic advantages that enable it to succeed in the competitive landscape of middle-market lending:

• Experienced Management Team: CGBD benefits from a seasoned management team with extensive experience in credit markets and private equity, providing expertise in sourcing, underwriting, and managing investments.
• Disciplined Investment Approach: CGBD employs a disciplined investment approach focused on rigorous due diligence, conservative underwriting, and active portfolio management, helping to mitigate risk and generate consistent returns.
• Access to Carlyle Platform: CGBD leverages the resources and relationships of the broader Carlyle Group platform, including access to industry insights, operational expertise, and a global network of contacts.
• Focus on Secured Lending: CGBD's emphasis on secured debt instruments provides downside protection and enhances its ability to recover capital in the event of borrower distress.
• гибкий Capital Base: CGBD's гибкий capital base allows it to pursue a wide range of investment opportunities and adapt to changing market conditions, enhancing its competitiveness and long-term growth prospects.

To gain more insights into the company's values, see: Mission Statement, Vision, & Core Values of Carlyle Secured Lending, Inc. (CGBD).

Carlyle Secured Lending, Inc. (CGBD) How It Makes Money

Carlyle Secured Lending, Inc. primarily makes money by investing in the debt of private companies, focusing on senior secured loans. They earn income from the interest payments on these loans and, to a lesser extent, from origination and other fees.

Carlyle Secured Lending, Inc.'s Revenue Breakdown

Carlyle Secured Lending, Inc.'s Business Economics

Carlyle Secured Lending, Inc.'s business economics are driven by a few key factors:

• Interest Rate Spread: The difference between the interest they earn on loans and their borrowing costs is critical. A wider spread leads to higher profitability.
• Credit Quality: Maintaining the credit quality of their loan portfolio is essential. Defaults can significantly impact earnings.
• Operational Efficiency: Managing operating expenses efficiently helps maximize net income.
• Investment Portfolio: The composition and performance of their investment portfolio drive revenue and profitability.

These elements collectively dictate the financial health and sustainability of Carlyle Secured Lending, Inc.'s business model. More in-depth analysis of the company's financial health can be found at Breaking Down Carlyle Secured Lending, Inc. (CGBD) Financial Health: Key Insights for Investors.

Carlyle Secured Lending, Inc.'s Financial Performance

Key indicators of Carlyle Secured Lending, Inc.'s financial performance include:

• Net Investment Income (NII): For the fiscal year 2024, the Net Investment Income was $98.7 million, or $1.67 per share. NII is a critical measure of profitability for BDCs.
• Total Investment Income: For the fiscal year 2024, the total investment income was approximately $163.4 million.
• Net Asset Value (NAV): As of December 31, 2024, the net asset value was $15.48 per share.
• Debt-to-Equity Ratio: As of December 31, 2024, the debt-to-equity ratio stood at 1.17x.
• Portfolio Composition: As of December 31, 2024, 96.5% of their debt investments were first lien loans.

These metrics provide a snapshot of the company's ability to generate income, manage risk, and deliver returns to shareholders as of the end of the 2024 fiscal year.

Carlyle Secured Lending, Inc. (CGBD) Market Position & Future Outlook

As of April 2025, Carlyle Secured Lending, Inc. navigates a competitive landscape in the business development company (BDC) sector, focusing on providing financing to middle-market companies. Its future outlook is shaped by its ability to capitalize on market opportunities while mitigating potential risks associated with economic fluctuations and credit market conditions.

Competitive Landscape

Opportunities & Challenges

Industry Position

Carlyle Secured Lending, Inc. holds a significant position within the BDC industry, focusing on secured lending to middle-market companies. Its standing is influenced by several factors:

• Asset Quality: Maintaining a high-quality portfolio is crucial for sustaining investor confidence and generating consistent returns.
• Yields and Returns: The ability to generate attractive yields relative to peers is a key differentiator. As of the fiscal year 2024, the company reported a net investment income of $1.45 per share.
• Operational Efficiency: Efficient management of operating expenses contributes directly to the bottom line. In 2024, the operating expense ratio was 5.2%.
• Leverage Ratio: Prudent use of leverage is essential for maximizing returns without undue risk. The debt-to-equity ratio stood at 0.95x as of the end of 2024.

Explore more about the investors behind the company: Exploring Carlyle Secured Lending, Inc. (CGBD) Investor Profile: Who’s Buying and Why?