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Morgan Stanley | Direct Lending Fund Morgan Stanley Direct Lending Fund ( NYSE : MSDL ) Second Quarter 2026 Earnings Presentation
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SECOND QUARTER 2026 FINANCIAL RESULTS 2 This presentation (the “Presentation”) has been prepared by Morgan Stanley Direct Lending Fund (together with its consolidated subsidiaries, “we,” “us,” “our,” “MSDL”, or the “Company”). This Presentation is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell, or an offer to sell or a solicitation of offers to purchase, our common stock or any other securities that may be issued by the Company, or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks. For the avoidance of doubt, we are not a subsidiary of, or consolidated with, Morgan Stanley. Furthermore, Morgan Stanley has no obligation, contractual or otherwise, to financially support us and has no history of financially supporting any business development company (“BDC”) on the MS Private Credit platform (“MSPC”), even during periods of financial distress. This Presentation contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and you should not place undue reliance on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and opinions and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “potential,” “predicts,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including: our future operating results; our business prospects and the prospects of our portfolio companies; risk associated with possible disruptions in our operations or the economy generally, including disruptions from the impact of global health events and natural disasters; uncertainty and changes in the general interest rate environment; general economic, political and industry trends and other external factors, including government shutdowns, geopolitical conflicts and uncertainty surrounding international armed conflicts and war and the financial and political stability of the United States and other countries; the effect of an inflationary economic environment on our portfolio companies, our financial condition and our results of operations; the impact of interruptions in the supply chain on our portfolio companies, including potential shortages of oil and other energy sources; disruptions related to tariffs and other trade or sanctions issues; our contractual arrangements and relationships with third parties; actual and potential conflicts of interest with MS Capital Partners Adviser Inc., our investment adviser (the “Adviser” or the “Investment Adviser”), and its affiliates; the dependence of our future success on the general economy and its effect on the industries in which we invest; the ability of our portfolio companies to achieve their objectives; the timing and amount of cash flows, distributions and dividends, if any, from the operations of our portfolio companies; the use of borrowed money to finance a portion of our investments; the adequacy of our financing sources and working capital; the ability of our Adviser to locate suitable investments for us and to monitor and administer our investments; the ability of our Adviser and its affiliates to attract and retain highly talented professionals; our ability to maintain our qualification as a BDC, and as a regulated investment company, under the Internal Revenue Code of 1986, as amended; the impact on our business of U.S. and international financial reform legislation, rules and regulations; currency fluctuations, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars, could adversely affect the results of our investments in foreign companies; the effect of changes in tax laws and regulations and interpretations thereof; and the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statements in this Presentation should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Presentation. Moreover, we assume no duty and do not undertake to update the forward-looking statements. You are advised to consult any additional disclosures that we make directly to you or through reports that we have filed or in the future file with the Securities and Exchange Commission (the “SEC”), including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Information throughout the Presentation provided by sources other than the Company (including information relating to portfolio companies) has not been independently verified and, accordingly, the Company makes no representation or warranty in respect of this information. All information given is as of June 30, 2026 unless otherwise indicated. The following slides contain summaries of certain financial and statistical information about the Company and certain quarterly information about the Company’s portfolio. The information contained in this Presentation is summary information that may be derived from information included in SEC filings and is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this Presentation. The Company is managed by the Adviser, an SEC-registered investment adviser and an indirect wholly owned subsidiary of Morgan Stanley (together with its affiliates, “Morgan Stanley”). This Presentation contains information about the Company and certain of its affiliates and the Company’s historical performance. You should not view information related to the past performance of the Company as indicative of the Company’s future results, the achievement of which is dependent on many factors, many of which are beyond the control of the Company and the Investment Adviser and cannot be assured. There can be no assurances that future dividends will match or exceed historical rates or will be made at all. Further, an investment in the Company is discrete from, and does not represent an interest in, any other Morgan Stanley entity. Nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance of the Company or any other Morgan Stanley entity. The information in this Presentation should be reviewed in combination with the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The Company’s SEC filings are available at www.sec.gov. You are advised to consult any additional disclosures that we may make directly to you or through filings we have made or in the future may make with the SEC. Disclaimer and Forward-Looking Statement
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SECOND QUARTER 2026 FINANCIAL RESULTS 3 Second Quarter 2026 Highlights FINANCIAL RESULTS Net investment income per share of $0.45 in Q2’26, as compared to $0.47 in Q1’26 Earnings per share was $0.09 in Q2’26, as compared to ($0.05) in Q1’26 NAV per share was $19.50 as of Q2’26, as compared to $19.81 in Q1’26 Q2’26 regular dividend per share of $0.45 Total fair value was approximately $3.6 billion, invested in 229 portfolio companies across 36 industries – Weighted average yield at amortized cost of debt investments was 9.1% (1) The Company committed $95.0 million (2) to new investments during the quarter, resulting in a net funded portfolio decrease of $94.2 million – Approximately 89% of new investment commitments were in first lien senior secured loans with the remainder being in investments in the Capstone Lending LLC joint venture (“JV”) – As of June 30, 2026, 52.3% of the Company’s and the JV partner’s respective total capital commitments were called – Invested across three new portfolio companies – Received full repayments on investments in one portfolio company • Certain investments in seven portfolio companies (one net addition) were on non-accrual status as of quarter end (2.9% of the portfolio at cost) • As of June 30, 2026, approximately 95% of the portfolio, at fair value, had a risk rating of two or better (3) PORTFOLIO ACTIVITY DEBT Outstanding debt balance was $2,000.7 million, consisting of 56.2% unsecured debt; quarter-end debt-to-equity ratio was 1.21x The Company had total liquidity of $1,543.1 million, including unrestricted cash and cash equivalents of $71.6 million (4) and undrawn, committed debt capacity of $1,471.5 million (5) OTHER EVENTS On August 4, 2026, the Board declared a regular distribution of $0.45 per share, which is payable on or around October 23, 2026 to shareholders of record as of September 30, 2026 As part of the Company’s share repurchase program, 831,486 shares were repurchased during the quarter ended June 30, 2026, at an average price of $15.06 per share On April 23, 2026, the Company executed an amendment to the Truist Credit Facility, extending the final maturity to April 2031 On July 9, 2026, the Company issued $350.0 million in aggregate principal amount of 6.100% notes due 2031 (the “2031 Notes”) Please see the Company’s filings with the SEC for further details. 1. Weighted average yield at amortized cost of debt investments include effect of accretion of original issue discount/market discount and amortization of premium and interest rates as of quarter end. Actual yields earned over the life of investments could be materially different from the yields presented in this Presentation. 2. At par/principal and including unfunded commitments, net of syndication. 3. The Adviser’s ratings will not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of the Company’s investments. 4. Includes cash held in money market funds. 5. As of June 30, 2026, a $11.8 million letter of credit was outstanding, which reduced the unused availability under the Senior Secured Revolving Credit Agreement with Truist Bank (as amended, restated or otherwise modified from time to time, the “Truist Credit Facility”), by the same amount.
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SECOND QUARTER 2026 FINANCIAL RESULTS 4 Overview of Morgan Stanley Direct Lending Fund (NYSE:MSDL) PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RETURNS. ACTUAL RESULTS MAY VARY. There is no guarantee that investment objective can be achieved. The statements above reflect the Adviser’s views and opinions as of the date hereof and not as of any future date. All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Please see the Company’s filings with the SEC for further details. 1. Access to certain parts of Morgan Stanley may be limited in certain instances by a number of factors, including third party confidentiality obligations and information barriers established by Morgan Stanley in order to manage conflicts of interest and regulatory restrictions, including without limitation joint transaction restrictions pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”) and internal policies and procedures. 2. There can be no assurance that the Company or Adviser will achieve its investment or portfolio construction objectives. Cyclical industries are defined as restaurants, retail, energy, and other businesses that the Adviser believes may be subject to business cycle volatility. A defensive portfolio does not assure a profit or protect against loss in a declining market. A detailed breakdown of the Company’s industry investments can be found on slide 8. 3. There is no assurance the Company will pay distributions in any particular amount, if at all. Any distributions the Company makes will be at the discretion of the Board of Directors. Distributions are not guaranteed. 4. Dividend yield for dividend with record date on June 30, 2026. Distributions are not guaranteed. Annualized distribution of the Company is not indicative of performance results of the Company and should not be interpreted as such. Dividend yield (annualized) is calculated by dividing the declared dividend by the NAV per share at the beginning of the quarter, annualized over four quarterly periods. 5. Calculated based on fair market value. 6. For the period of December 2019 through June 30, 2026. Based on the count of deals closed for the MSPCplatform. Includes MSPC, MS Investment Banking, Private Equity Solutions, and Private Equity Secondaries. ATTRACTIVE MARKET Direct lending is an attractive asset class that has generated strong risk -adjusted returns DIFFERENTIATED PLATFORM Scaled private credit business, leveraging the broader Morgan Stanley platform (1) DEFENSIVE PORTFOLIO Primarily floating rate, first lien loans to borrowers in non- cyclical industries (2) FOCUS ON SHAREHOLDER ALIGNMENT Targets quarterly distributions with transparent fee structure (3) 9.1% ANNUALIZED DIVIDEND YIELD (4) 93.1% FIRST LIEN INVESTMENTS (5) PRESENTS A POTENTIALLY COMPELLING RISK-ADJUSTED RETURN PROPOSITION 76% DEALS CLOSED WITH MULTIPLE MORGAN STANLEY TOUCHPOINTS (6)
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SECOND QUARTER 2026 FINANCIAL RESULTS 5 Supported by Morgan Stanley’s Global Footprint For the avoidance of doubt, we are not a subsidiary of, or consolidated with, Morgan Stanley. Furthermore, Morgan Stanley has no obligation, contractual or otherwise, to financially support us and has no history of financially supporting any BDC on the MS Private Credit platform, even during periods of financial distress. 1. MSIM data as of June 30, 2026, unless otherwise noted. The figure represents the assets under management (“AUM”) and includes all discretionary and non-discretionary assets of MSIM and all advisory affiliates. MSIM Fund of Fund assets represent assets under management and assets under supervision. MSIM direct private investing assets represent the basis on which the firm earns management fees, not the market value of the assets owned. 2. As of December 31, 2025. Represented as Investable Capital, which includes fee-earning AUM, unfunded commitments, co-investments and fund leverage; inclusive of CLOs. 3. As of July 1, 2026. Committed capital is calculated as aggregate capital commitments or equity raised and total committed leverage within each of the direct lending funds or accounts managed by the MSPC platform with exception for funds in their harvesting period, where committed capital is calculated as invested capital. 4. Based on combined net assets for all BDCs managed by comparable peer managers as of March 31, 2026. Comparable peer managers presented herein are believed to be representative of relevant peers based on available information and reasonable judgement. However, there is no assurance that these peers are identical in structure, strategy, size, or performance, and they may not fully reflect the specific characteristics or risks applicable. Comparisons should therefore be viewed as illustrative and not as definitive indicators of relative value or performance and does not reflect the rankings of a third-party index or industry research group. Different inputs and assumptions about the relevant peer group may result in different results. MORGAN STANLEY PRIVATE CREDIT (“MSPC”) 15+ Year History in Private Credit Among Top 10 Largest BDC Managers (4) $23.1Bn of Direct Lending Committed Capital (3) Primary Private Credit Investment Management Platform of the Firm MORGAN STANLEY INVESTMENT MANAGEMENT (“MSIM”) ~$270Bn ALTERNATIVES INVESTABLE CAPITAL (2) 40 Year ALTERNATIVES TRACK RECORD 5,038 EMPLOYEES $2.0Tn TOTAL AUM (1) MSIM BY THE NUMBERS Morgan Stanley Investment Management, a Division of Morgan Stanley, Offers a Wide Range of Investment Solutions to Investors Around the World MORGAN STANLEY WEALTH MANAGEMENT (“MSWM”) INSTITUTIONAL SECURITIES GROUP (“ISG”)
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SECOND QUARTER 2026 FINANCIAL RESULTS 6 PILLARS OF OUR INVESTMENT STRATEGY Investment Strategy Built to Deliver Strong Risk-Adjusted Returns PRESERVATION OF CAPITAL LONG-TERM CREDIT PERFORMANCE RISK MITIGATION FOCUSED INVESTMENT CRITERIA BORROWER CHARACTERISTICS (3) Strong management teams Defensible, leading market positions Niche strategy or other barriers to entry Low technology or market risks Diversified products, customer and suppliers Stable cash flows Low capital expenditure requirements MARKET SEGMENT U.S. Sponsor-Backed Middle Market (1) ASSET FOCUS First Lien, Floating Rate, Senior Secured Loans INDUSTRY Seek to Limit Exposure to Cyclical Industry Sectors (2) Presented for illustrative purposes only. There can be no assurance that the Adviser will achieve its investment or portfolio construction objectives or that the portfolio will perform as expected. 1. For this purpose, “middle-market companies” refers to companies that, in general, generate annual earnings before interest, taxe s, depreciation and amortization, or EBITDA, in the range of approximately $15 million to $200 Million, although not all of our portfolio companies will meet this criteria. 2. Cyclical industries defined as restaurants, retail, energy, and other businesses that the Company believes may be subject to bus iness cycle volatility. 3. We expect our target portfolio companies to exhibit some, or all, of these characteristics at the time of the initial investm ent, although not all of our portfolio companies will meet these criteria.
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SECOND QUARTER 2026 FINANCIAL RESULTS 7 Morgan Stanley Direct Lending Fund Key Statistics As of June 30, 2026, unless otherwise noted. Please see the Company’s filings with the SEC for further details. 1. As of June 30, 2026, using closing market price of $15.12 per share. 2. Morgan Stanley has no obligation, contractual or otherwise, to financially support us and has no history of financially supporting any BDCs on the MSPC platform, even during periods of financial distress. 3. Incentive Fee incorporates 12-quarter lookback that takes into account net realized losses; this lookback became effective for the calendar quarter ended June 30, 2024. 4. Median earning before interest, taxes, depreciation and amortization, or EBITDA is as of the closing of the financing of the respective transactions. Based on results reported by each portfolio company. MSDL does not assume responsibility for the accuracy of such numbers. 5. Loan-to-value as of the closing of MSDL’s investment in the transaction; calculated using total outstanding debt through the tranche in which MSDL is a lender divided by enterprise value from the private equity sponsor or market comparables. Excludes companies which MSDL lends based on a multiple of recurring revenue generated by the portfolio company and not based on a multiple of EBITDA. 6. Interest Coverage for a particular portfolio company is calculated by taking the credit agreement EBITDA and dividing by annualized latest reported interest expense. Total interest coverage is calculated on a weighted average basis based on total gross debt commitments (funded and unfunded). Calculation excludes ARR Loans. Based on results reported by each portfolio company. MSDL does not assume responsibility for the accuracy of such numbers. 7. Calculated as a percentage of total investment income for the three months ended June 30, 2026. 8. Based on cost. FUND STATISTICS BORROWER STATISTICS $7.2Bn CUMULATIVE GROSS INVESTMENT COMMITMENTS $1.3Bn MARKET CAP (1) 11.5% MORGAN STANLEY OWNERSHIP (2) 1.0%/17.5% FEE STRUCTURE (3) 1.21x DEBT-TO-EQUITY $90.3MM MEDIAN EBITDA (4) 39% WEIGHTED AVERAGE LOAN-TO-VALUE (5) 1.8x INTEREST COVERAGE (6) 5.6% TOTAL PIK INCOME (7) 2.9% NON-ACCRUALS (8)
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SECOND QUARTER 2026 FINANCIAL RESULTS 8 Non-Cyclical Industries and Low Borrower Concentration Please see the Company’s filings with the SEC for more information about the Company’s portfolio. The information herein is q ualified in its entirety by the information set forth therein. Origination and investing activity is subject to change. There can be no assurance that such origination and investing activities will continue in future or that the same ind ustry and/or portfolio company diversification will be maintained. 1. Calculated as a percentage of total investments at fair value. 2. Cyclical industries are defined as restaurants, retail, energy, and other businesses that the Adviser believes may be subject to business cycle volatility. Based on gross commitments (funded and unfunded). 3. Primarily insurance brokerage; also includes agency, marketing, insurtech and other insurance related services. 4. In certain instances, we have disclosed the borrower’s DBA name. NON-CYCLICAL EXPOSURE (2)95% 36 INDUSTRIES (3) INDUSTRY CONCENTRATION(1) AVERAGE POSITION SIZE44bps 229 BORROWERS BORROWER CONCENTRATION(1)(4) Capstone Lending, LLC, 2.9% VRC Companies, LLC, 1.9% GS AcquisitionCo, Inc., 1.6% Foundation Risk Partners Corp., 1.5% World Insurance Associates, LLC, 1.4% Patriot Growth Insurance Services, LLC, 1.3% Catalis Intermediate, Inc., 1.3% GI DI Cornfield Acquisition, LLC, 1.3% MRI Software, LLC, 1.2% Sonny's Enterprises, LLC, 1.2% Other (219 Borrowers), 84.4% Software, 21.2% IT Services, 9.8% Insurance Services, 9.7% Commercial Services & Supplies, 7.6% Health Care Providers & Services, 5.8% Diversified Consumer Services, 5.0% Professional Services, 4.9% Real Estate Management & Development, 3.9% Automobile Components, 3.3% Financial Services, 3.1% Others (26 Industries), 25.7%
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SECOND QUARTER 2026 FINANCIAL RESULTS 9 $250MM Equity Commitment 1.8x Leverage Target Overview of Capstone Lending LLC Joint Venture TARGET JV STRUCTURE (1) $200MM MSDL $50MM JV Partner ~$700MM Asset Base CURRENT JV OVERVIEW As of June 30, 2026, unless otherwise noted. Please see the Company’s filings with the SEC for further details. 1. There is no guarantee that target size can be achieved. 2. Weighted average yield at amortized cost of debt investments include effect of accretion of original issue discount/market di scount and amortization of premium and interest rates as of quarter end. Actual yields earned over the life of investments could be materially different from the yields presented in this Presentation. 3. Calculated based on fair market value. 4. MSDL dividend yield is calculated by dividing the dividend paid to the Company by members capital (annualized). $104.5MMMSDL Equity Deployed 2.9%% of Total MSDL Portfolio 52.3%% Deployed 13.0%MSDL Dividend Yield (4) $324.4MMAssets at Fair Value 1.66xJV Leverage 8.8%Weighted Average Yield (2) 100.0%% First Lien (3) 58# of Portfolio Companies 25# of Industries JV Portfolio Snapshot as of June 30, 2026 MSDL Impact as of June 30, 2026
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SECOND QUARTER 2026 FINANCIAL RESULTS 10 Focused on Floating Rate, First Lien Assets Please see the Company’s filings with the SEC for more information about the Company’s portfolio. The information herein is q ualified in its entirety by the information set forth therein. 1. Other investments include other debt investments (unsecured and mezzanine debt positions), common equity and preferred equity positions. 2. At par/principal and including unfunded commitments, net of syndications. ASSET MIX BY CAPITAL DEPLOYMENT ASSET MIX AT PERIOD END (by Gross Commitments, Dollar Amounts in Millions) (by Fair Market Value, Dollar Amounts in Millions) 96% 96% 96% 94% 93% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 3% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 First Lien Second Lien Other Investments Investments in Joint Ventures Q2’26Q1’26Q4’25Q3’25Q2’25(Dollar Amounts In Thousands) $94,988$144,889$146,477 $183,049 $149,054 New Investment Commitments (2) $146,236$173,964$163,792$197,953$204,003Investment Fundings ($240,480)($239,807)($162,607)($199,898)($207,526)Investments Repaid or Sold ($94,244)($65,843)$1,185($1,945)($3,523)Net Investment Activity (1) 100% 100% 100% 34% 89% 66% 11% $149 $183 $146 $145 $95 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 First Lien Other Investments Investments in Joint Ventures(1)
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SECOND QUARTER 2026 FINANCIAL RESULTS 11 Selected Financial Highlights and Portfolio Information Dollar amounts in thousands, except per share data; per share data is based on weighted average shares outstanding during the period, except as otherwise noted. Please see the Company’s filings with the SEC for further details. NAV subject to change over time. Net investment income per share and net realized gain/loss and change in unrealized gain/loss per share are calculated using weighted average shares outstanding during the period. Dividends declared per share is calculated using number of shares outstanding on record date. 1. The amount shown does not correspond with the aggregate amount for the period as it includes the effect of the timing of capi tal transactions. 2. Weighted average yield of debt investments include effect of accretion of original issue discount/market discount and amortiz ation of premium and interest rates as of quarter end. Actual yields earned over the life of investments could be materially different from the yields presented in this Presentation 3. Net debt to equity is calculated as (a) total debt reduced by ( i) cash, (ii) cash equivalents (including cash held in money market funds) and (iii) restricted cash pledged as collateral div ided by (b) total net assets. Q2’26Q1’26Q4’25Q3’25Q2’25(Dollars In Thousands, Except Per Share Data) $0.45$0.47$0.49 $0.50 $0.50 Net Investment Income Per Share ($0.36)($0.52)($0.16)($0.18)($0.09)Net Realized And Unrealized Gain (Loss) Per Share (1) $0.09($0.05)$0.33 $0.32 $0.41 Earnings Per Share $0.45$0.45$0.50 $0.50 $0.50 Regular Dividend Per Share $3,554,287$3,668,950$3,771,546 $3,775,797 $3,785,496 Total Portfolio At Fair Value 229227227218214Number Of Portfolio Companies $15,521$16,163$16,615$17,320$17,689Average Investment Size Of Portfolio Companies 9.4%9.5%9.5%9.9%10.2%Weighted Average Yield of Debt Investments, At Fair Value (2) 9.1%9.3%9.3%9.7%10.1%Weighted Average Yield of Debt Investments, At Cost (2) 99.6%99.6%99.6%99.6%99.6%% Floating Rate Of Debt Investments $1,647,868$1,690,467$1,748,089 $1,771,611 $1,790,299 Net Assets $19.50$19.81$20.26 $20.41 $20.59 NAV Per Share $2,000,451$2,064,010$2,093,153 $2,078,120 $2,054,188 Debt Outstanding, At Par 1.21x1.22x1.20x1.17x1.15xDebt To Equity 1.17x1.16x1.14x1.13x1.10xNet Debt To Equity (3) 1.22x1.16x1.17x1.15x1.12xAverage Debt To Equity
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SECOND QUARTER 2026 FINANCIAL RESULTS 12 Credit Quality of Investments Dollar amounts shown in thousands, except as otherwise noted. Please see the Company’s filings with the SEC for further details. 1. The Adviser’s ratings will not constitute any rating of investments by a nationally recognized statistical rating organizatio n or represent or reflect any third-party assessment of any of the Company’s investments. Q2’26Q1’26Q4’25 % of TotalFair Value % of TotalFair Value % of TotalFair Value Internal Risk Rating 1.1%40,189 0.0%-2.0%73,976 1 93.6%3,325,57194.5%3,466,85993.7%3,535,0742 3.5%123,854 4.5%166,036 3.3%125,908 3 1.8% 64,673 1.0% 36,055 1.0% 36,588 4 100.0%$ 3,554,287 100.0%$ 3,668,950 100.0%$ 3,771,546 Total Internal Risk Rating System (1) In the opinion of our Investment Adviser, investments in Risk Rating 1 involve the least amount of risk relative to our initial cost basis at the time of origination or acquisition. Risk Rating 1 investment performance is above our initial underwriting expectations and the business trends and risk factors are generally favorable, which may include the performance of the portfolio company, or the likelihood of a potential exit. Risk Rating 1 In the opinion of our Investment Adviser, investments in Risk Rating 2 involve a level of risk relative to our initial cost basis at the time of origination or acquisition. Risk Rating 2 investments are generally performing in line with our initial underwriting expectations and risk factors to ultimately recoup the cost of our principal investment are neutral to favorable. All new originated or acquired investments are initially included in Risk Rating 2. Risk Rating 2 In the opinion of our Investment Adviser, investments in Risk Rating 3 indicate that the risk to our ability to recoup the initial cost basis at the time of origination or acquisition has increased materially since the origination or acquisition of the investment, such as declining financial performance and non-compliance with debt covenants; however, principal and interest payments are not more than 120 days past due. Risk Rating 3 In the opinion of our Investment Adviser, investments in Risk Rating 4 involve a borrower performing substantially below expectations and indicate that the loan’s risk has increased substantially since origination or acquisition. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. For Risk Rating 4 investments, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of ourinitial cost basis at the time of origination or acquisition upon exit. Risk Rating 4 As of June 30, 2026, approximately 95% of the portfolio, at fair value, had a risk rating of two or better (1) As of June 30, 2026, certain investments in seven portfolio companies (one net addition) were on non-accrual status, representing $106.5 million, or approximately 2.9% of the portfolio, at cost
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SECOND QUARTER 2026 FINANCIAL RESULTS 13 Quarterly Operating Results Dollar amounts in thousands, except as otherwise noted. Please see the Company’s filings with the SEC for further details. Q2’26Q1’26Q4’25Q3’25Q2’25(Dollar In Thousands, Except Per Share Data) Investment Income: $82,742$83,837$90,650 $94,198 $94,446 Interest And Dividend Income 4,9304,1043,7264,0573,887Payment-in-kind 1,1021,1232,221 1,467 1,175 Other Income 88,774$89,064$96,597 $99,722 $99,508 Total Investment Income Expenses: 32,018$30,665$33,344 $33,903 $34,707 Interest And Other Financing Expenses 9,1829,4309,596 9,628 9,624 Management Fees 6,5185,8007,281 9,281 9,279 Income Based Incentive Fees 2,0961,8252,380 2,778 2,041 Other Operating Expenses $49,814$47,720$52,601 $55,590 $55,651 Total Expenses $49,814$47,720$52,601 $55,590 $55,651 Net Expenses 8008341,585 402 200 Excise Tax Expense $38,160$40,510$42,411 $43,730 $43,657 Net Investment Income (22,801)(31,849)(5,596)(16,155)(7,652)Net Change In Unrealized Appreciation (Depreciation) (7,431)(13,171)(8,088)2691Net Realized Gains (Losses) 7,928($4,510)$28,727$27,601$36,096Net Increase In Net Assets Resulting From Operations $0.45$0.47$0.49$0.50$0.50Net Investment Income Per Share $0.09($0.05)$0.33$0.32$0.41Earning Per Share 84,75585,77586,656 86,845 87,190 Weighted Average Shares Outstanding
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SECOND QUARTER 2026 FINANCIAL RESULTS 14 Quarterly Balance Sheet Dollar amounts in thousands, except per share data; per share data is based on shares outstanding as of each period end, exce pt as otherwise noted. Please see the Company’s filings with the SEC for further details. 1. Includes cash held in money market funds. 2. Includes subscription receivable. 3. Net of unamortized debt issuance costs of $9,288 as of June 30, 2026, $10,110 as of March 31, 2026, $10,545 as of December 31, 2025, $11,180 as of September 30, 2025, and $8,773 as of June 30, 2025. 4. Includes interest payable and shares for stock repurchased, as applicable. Q2’26Q1’26Q4’25Q3’25Q2’25(Dollar In Thousands, Except Per Share Data) Assets $3,554,287$3,668,950$3,771,546 $3,775,797 $3,785,496 Investments At Fair Value 80,173100,51394,410 75,523 79,626 Cash And Cash Equivalents(1) 26,83229,71726,42129,89425,299Interest And Dividend Receivable 30,1424,543455 14,836 134 Receivable For Investments Sold/Repaid 18,91415,91716,87417,89218,853Deferred Financing Costs 3915,16310,39018,34112,482Prepaid Expenses And Other Assets(2) $3,710,739$3,824,803$3,920,096 $3,932,283 $3,921,890 Total Assets Liabilities 1,981,897$2,053,053$2,086,672 $2,072,400 $2,050,254 Debt (3) 38,10338,48543,222 43,499 43,575 Dividends Payable 117---Payable For Investment Purchased 9,1829,4309,596 9,628 9,624 Management Fee Payable 6,5185,8007,281 9,281 9,279 Incentive Fees Payable 518391 176 96 Payable To Affiliates 8,33327,47825,145 25,688 18,763 Accrued Expenses And Other Liabilities(4) $2,062,871$2,134,336$2,172,007 $2,160,672 $2,131,591 Total Liabilities $1,647,868$1,690,467$1,748,089 $1,771,611 $1,790,299 Total Net Assets $3,710,739$3,824,803$3,920,096 $3,932,283 $3,921,890 Total Liabilities And Net Assets $19.50$19.81$20.26 $20.41 $20.59 NAV Per Share 1.21x1.22x1.20x1.17x1.15xDebt To Equity At Quarter End 1.22x1.16x1.17x1.15x1.12xAverage Debt To Equity
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SECOND QUARTER 2026 FINANCIAL RESULTS 15 NAV per Share Bridge for the Quarter Ended June 30, 2026 March 31, 2026 NAV is based on ending shares outstanding as of such date. June 30, 2026 NAV is based on ending shares outstanding as of such date. June 30, 2026 per share data is based on weighted average shares outstanding for the quarter then ended. Please see the Company’s filings with the SEC for further details. $19.81 $0.45 $(0.45) $(0.36) $0.05 $19.50 Q1'26 NAV Net Investment Income Q2'26 Regular Dividend Realized & Unrealized Gain (Loss) Share Accretion From Share Repurchases Q2'26 NAV
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SECOND QUARTER 2026 FINANCIAL RESULTS 16 Conservative Balance Sheet Strategy Dollar amounts in thousands, except as otherwise noted. Please see the Company’s filings with the SEC for further details. 1. Includes short-term, liquid investments like money market funds which are considered cash equivalents. 2. Undrawn committed debt capacity is subject to borrowing base availability. Please refer to the Company’s Form 10-Q for the quarter ended June 30, 2026 for further details. 3. A $11.8 million letter of credit was outstanding, which reduced the unused availability under the Truist Credit Facility by the same amount. 4. Proforma for the amendment executed in April 2026 extending the maturity date of the Truist Credit Facility to April 2031. 5. As of June 30, 2026, the carrying value of the Company’s 2027 Notes, 2029 Notes, 2030 Notes and CLO 2025-1 Issued Debt were presented net of unamortized debt issuance costs of $619, $2,244, $3,534 and $2,891 and unamortized original issuance discount of $132, $2,236, $2,914 and $0, respectively. 6. For the avoidance of doubt, the ratings referenced herein are ratings of the Company itself and not its investments. 7. Represents the blended cost to the Company. 8. In connection with the 2029 Notes and 2030 Notes offerings, MSDL entered into an interest rate swap to continue to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. 9. Subsequent to quarter end, on July 9, 2026, the Company issued $350.0 million in aggregate principal amount of 6.100% notes due 2031. The debt figures presented do not include the 2031 Notes. • As of June 30, 2026, the Company had total liquidity of $1,543.1 million, including unrestricted cash and cash equivalents of $71.6 million (1) and undrawn committed debt capacity of $1,471.5 million (2)(3)(9) Maturity Date Interest Rate Available Amount Principal Outstanding Debt Commitment 8/21/2029S + 1.95%$249.0$351.0$600.0BNP Funding Facility (2) 4/23/2031S + 1.775%$1,234.3$215.7$1,450.0Truist Credit Facility (2)(3)(4) 2/11/20274.50%-$425.0$425.02027 Notes (5) 5/17/20296.15%-$350.0$350.02029 Notes (5)(8) 5/19/20306.00%-$350.0$350.02030 Notes (5)(8) 10/20/2037S + 1.70% (7)-$309.0$309.0CLO 2025-1 Issued Debt (5) $1,483.3 $2,000.7 $3,484.0Total Debt (9) DEBT MIX (Dollar Amounts in Millions) DEBT MATURITY PROFILE (4) IG RATINGS(6) Baa3 BBB- BBB FIXED VS. FLOATING RATE 21.2% 78.8% Fixed Rate Floating Rate (Based on Principal Outstanding) $425 $350 $350 $216 $351 $309 2027 2028 2029 2030 2031 2037 Unsecured Notes Truist Credit Facility BNP Funding Facility CLO Secured, 43.8%Unsecured, 56.2% (Based on Principal Outstanding)
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SECOND QUARTER 2026 FINANCIAL RESULTS 17 Dividend History (1) Past performance is not indicative of future results. Please see the Company’s filings with the SEC for further details. Distributions are not guaranteed. 1. Regular dividend and supplemental / special dividends are shown on a per share basis. 2. Dividend yield (annualized) is calculated by dividing the declared dividend by the weighted average of the NAV at the beginni ng of the quarter and capital transactions during the quarter, annualized over four quarterly periods. Annualized distribution of the Company is not indicative of performance results of the Company and should not be interpreted as such. YTDQ4Q3Q2Q1 $0.90 $0.45 $0.45 Regular 2026 Special $2.00 $0.50 $0.50 $0.50 $0.50 Regular 2025 Special $2.20 $0.50 $0.50 $0.50 $0.50 Regular 2024 $0.10 $0.10 Special $2.27 $0.50 $0.50 $0.50 $0.50 Regular 2023 $0.10 $0.10 $0.07 Special $1.92 $0.50 $0.47 $0.47 $0.48 Regular 2022 Special $2.07 $0.46 $0.56 $0.49 $0.45 Regular 2021 $0.11 Special $1.01 $0.43 $0.40 Regular 2020 $0.18 Special Q4Q3Q2Q1 9.1%8.9%Regular Dividend Yield 2026 9.1%8.9%Total Dividend Yield 9.8%9.7%9.7%9.6%Regular Dividend Yield 2025 9.8%9.7%9.7%9.6%Total Dividend Yield 9.6%9.6%9.7%9.7%Regular Dividend Yield 2024 11.5%11.5%9.7%9.7%Total Dividend Yield 9.7%9.9%10.1%10.3%Regular Dividend Yield 2023 11.7%11.9%11.5%10.3%Total Dividend Yield 9.8%9.3%9.3%9.3%Regular Dividend Yield 2022 9.8%9.3%9.3%9.3%Total Dividend Yield 9.6%11.1%10.7%10.1%Regular Dividend Yield 2021 11.9%11.1%10.7%10.1%Total Dividend Yield 10.0%9.7%Regular Dividend Yield 2020 14.2%9.7%Total Dividend Yield HISTORICAL DISTRIBUTION HISTORICAL DIVIDEND YIELD (2)
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