UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-01393

Kayne DL 2021, Inc. 

Delaware	86-2440860
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
717 Texas Avenue, Suite 2200, Houston, TX	77002
(Address of principal executive offices)	(Zip Code)

(713) 493-2020

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☐ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐Yes ☒ No

As of May 7, 2025, the registrant had 61,741 shares of common stock, $0.001 par value per share, issued and outstanding and there was no public market for the registrant’s shares.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements	1
	Consolidated Statements of Assets and Liabilities as of March 31, 2025 (Unaudited) and December 31, 2024	1
	Consolidated Statement of Operations for the three ended March 31, 2025 and 2024 (Unaudited)	2
	Consolidated Statement of Changes in Net Assets for the three months ended March 31, 2025 and 2024 (Unaudited)	3
	Consolidated Statement of Cash Flows for the three months ended March 31, 2025 and 2024 (Unaudited)	4
	Consolidated Schedule of Investments as of March 31, 2025 (Unaudited) and December 31, 2024	5
	Notes to Financial Statements (Unaudited)	29
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53
PART II.	OTHER INFORMATION	54
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	55
Signatures		56

i

Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the company, current and prospective portfolio investments, the industry, beliefs and assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” 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 control of Kayne DL 2021, Inc. (“the Company”) and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

● future operating results;

● business prospects and the prospects of portfolio companies in which we invest;

● the ability of our portfolio companies to achieve their objectives;

● changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets;

● the ability of KA Credit Advisors II, LLC (our “Advisor”) to locate suitable investments and to monitor and administer investments;

● the ability of the Advisor and its affiliates to attract and retain highly talented professionals;

● risks associated with possible disruptions in our operations, the operations of our portfolio companies or the economy generally, including disruptions due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents;

● the adequacy of our cash resources, financing sources and working capital;

● the timing of cash flows, distributions and dividends, if any, from the operations of the companies in which the Company invests;

● the ability to maintain qualification as a business development company (“BDC”) and as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”);

● the use of borrowings under our credit facility to finance a portion of the Company’s investments;

● the adequacy, availability and pricing of financing sources and working capital for the Company;

● actual or potential conflicts of interest with the Advisor and its affiliates;

● contractual arrangements and relationships with third parties;

● the risks associated with an economic downturn, increased inflation, political instability, tariffs and trade policy instability, supply chain issues, interest rate volatility, loss of key personnel, and the illiquid nature of investments of the Company; and

● the risks, uncertainties and other factors the Company identifies under “Item 1A. Risk Factors” and elsewhere in this quarterly report on Form 10-Q, as well as in the Company’s annual report on Form 10-K for the year ended December 31, 2024.

We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the United States Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, registration statements on Form 10, quarterly reports on Form 10-Q and current reports on Form 8-K.

ii

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Kayne DL 2021, Inc.

Consolidated Statements of Assets and Liabilities

(amounts in 000’s, except share and per share amounts)

	March 31, 2025 (Unaudited)			December 31, 2024
Assets:
Investments, at fair value:
Long-term investments (amortized cost of $298,643 and $257,420)	$	303,112		$	261,833
Investments in money market funds (amortized cost of $1,645 and $13,440)		1,645			13,440
Cash		1,804			2,899
Receivable for principal payments on investments		37			71
Interest receivable		2,298			2,070
Prepaid expenses and other assets		81			115
Total Assets	$	308,977		$	280,428
Liabilities:
Subscription Credit Facility (Note 6)	$	2,500		$	-
Unamortized Subscription Credit Facility issuance costs		(14	)		(12	)
Distributions payable		7,494			7,202
Management fee payable		521			481
Accrued expenses and other liabilities		305			284
Total Liabilities	$	10,806		$	7,955
Commitments and contingencies (Note 8)
Net Assets:
Common Shares, $0.001 par value; 100,000 shares authorized; 56,769 and 51,812 as of March 31, 2025 and December 31, 2024, respectively, issued and outstanding	$	-		$	-
Additional paid-in capital		294,313			268,243
Total distributable earnings (deficit)		3,858			4,230
Total Net Assets	$	298,171		$	272,473
Total Liabilities and Net Assets	$	308,977		$	280,428
Net Asset Value Per Common Share	$	5,252		$	5,259

See accompanying notes to consolidated financial statements.

1

Kayne DL 2021, Inc.

Consolidated Statements of Operations

(amounts in 000’s, except share and per share amounts)

(Unaudited)

	For the three months ended March 31,
	2025		2024
Income:
Investment income from investments:
Interest income	$	7,874	$	6,200
Dividend income		57		138
Total Investment Income		7,931		6,338
Expenses:
Interest expense		47		46
Management fees		521		351
Professional fees		113		94
Directors fees		41		37
Other general and administrative expenses		143		108
Total Expenses		865		636
Net Investment Income (Loss)		7,066		5,702
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Investments		-		-
Total net realized gains (losses)		-		-
Net change in unrealized gains (losses):
Investments		55		831
Total net change in unrealized gains (losses)		55		831
Total realized and unrealized gains (losses)		55		831
Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,121	$	6,533
Per Common Share Data:
Basic and diluted net investment income per common share	$	130	$	148
Basic and diluted net increase in net assets resulting from operations	$	131	$	170
Weighted Average Common Shares Outstanding - Basic and Diluted		54,466		38,411

See accompanying notes to consolidated financial statements.

2

Kayne DL 2021, Inc.

Consolidated Statements of Changes in Net Assets

(amounts in 000’s)

(Unaudited)

	For the three months ended March 31,
	2025			2024
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss)	$	7,066		$	5,702
Net realized gains (losses) on investments		-			-
Net change in unrealized gains (losses) on investments		55			831
Net Increase (Decrease) in Net Assets Resulting from Operations		7,121			6,533
Decrease in Net Assets Resulting from Stockholder Dividends
Dividends to stockholders		(7,493	)		(5,560	)
Net Decrease in Net Assets Resulting from Stockholder Dividends		(7,493	)		(5,560	)
Increase in Net Assets Resulting from Capital Share Transactions
Issuance of common shares		25,000			25,000
Reinvestment of dividends		1,070			4,616
Net Increase in Net Assets Resulting from Capital Share Transactions		26,070			29,616
Total Increase (Decrease) in Net Assets		25,698			30,589
Net Assets, Beginning of Period		272,473			184,551
Net Assets, End of Period	$	298,171		$	215,140

See accompanying notes to consolidated financial statements.

3

Kayne DL 2021, Inc.

Consolidated Statements of Cash Flows

(amounts in 000’s)

(Unaudited)

	For the three months ended March 31,
	2025			2024
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	7,121		$	6,533
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net change in unrealized (gains)/losses on investments		(55	)		(831	)
Net accretion of discount on investments		(515	)		(383	)
Sales (purchases) of investments in money market funds, net		11,795			(12,592	)
Purchases of portfolio investments		(52,314	)		(27,404	)
Proceeds from sales of investments and principal repayments		11,659			6,962
Paid-in-kind interest from portfolio investments		(44	)		(12	)
Amortization of deferred financing cost		14			20
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in interest and dividends receivable		(238	)		(627	)
(Increase)/decrease in receivable for principal payments on investments		34			(26	)
(Increase)/decrease in prepaid expenses and other assets		34			34
Increase/(decrease) in management fees payable		40			45
Increase/(decrease) in excise tax payable		-			(14	)
Increase/(decrease) in accrued other general and administrative expenses		21			35
Net cash used in operating activities		(22,448	)		(28,260	)
Cash Flows from Financing Activities:
Borrowings/(payments) on subscription credit facility, net		2,500			-
Payments of debt issuance costs		(16	)		(79	)
Dividends paid in cash		(6,131	)		(43	)
Proceeds from issuance of common shares		25,000			25,000
Net cash provided by financing activities		21,353			24,878
Net increase (decrease) in cash		(1,095	)		(3,382	)
Cash, beginning of period		2,899			5,887
Cash, end of period	$	1,804		$	2,505
Supplemental and Non-Cash Information:
Interest paid during the period	$	32		$	27
Non-cash financing activities not included herein consisted of reinvestment of dividends	$	1,070		$	4,616

See accompanying notes to consolidated financial statements.

4

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Debt Investments
Aerospace & defense
Basel U.S. Acquisition Co., Inc. (IAC)	(5)	First lien senior secured revolving loan		9.55	%		5.25	%		-	SOFR(Q)	12/5/2028	$	-	$	-	$	-		0.0	%
		First lien senior secured loan		9.55	%		5.25	%		-	SOFR(Q)	12/5/2028		4,497		4,414		4,562		1.5	%
		First lien senior secured loan		9.55	%		5.25	%		-	SOFR(Q)	12/5/2028		601		592		610		0.2	%
		First lien senior secured delayed draw loan		9.55	%		5.25	%		-	SOFR(Q)	12/5/2028		-		-		-		0.0	%
Fastener Distribution Holdings, LLC		First lien senior secured loan		9.07	%		4.75	%		-	SOFR(M)	11/4/2031		3,783		3,751		3,812		1.3	%
Vitesse Systems Parent, LLC		First lien senior secured loan		11.44	%		7.00	%		-	SOFR(M)	12/22/2028		5,882		5,765		5,882		2.0	%
		First lien senior secured revolving loan		11.44	%		7.00	%		-	SOFR(M)	12/22/2028		939		918		939		0.3	%
														15,702		15,440		15,805		5.3	%
Automobile components
Speedstar Holding LLC		First lien senior secured loan		10.31	%		6.00	%		-	SOFR(Q)	7/22/2027		1,017		1,006		1,007		0.3	%
		First lien senior secured delayed draw loan		10.31	%		6.00	%		-	SOFR(Q)	7/22/2027		111		110		110		0.0	%
WAM CR Acquisition, Inc. (Wolverine)		First lien senior secured loan		10.55	%		6.25	%		-	SOFR(Q)	7/23/2029		5,066		4,975		5,142		1.7	%
														6,194		6,091		6,259		2.0	%
Biotechnology
Alcami Corporation		First lien senior secured delayed draw loan		11.42	%		7.00	%		-	SOFR(M)	12/21/2028		296		296		296		0.1	%
		First lien senior secured revolving loan		11.42	%		7.00	%		-	SOFR(M)	12/21/2028		41		29		41		0.0	%
		First lien senior secured loan		11.46	%		7.00	%		-	SOFR(Q)	12/21/2028		4,017		3,919		4,017		1.4	%
														4,354		4,244		4,354		1.5	%

See accompanying notes to consolidated financial statements.

5

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

													Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Building products
Ruff Roofers Buyer, LLC		First lien senior secured loan		9.29	%		5.00	%		-		SOFR(Q)	11/17/2029		1,599		1,558		1,599		0.5	%
		First lien senior secured loan		9.30	%		5.00	%		-		SOFR(M)	11/17/2029		433		428		433		0.2	%
		First lien senior secured revolving loan		9.30	%		5.00	%		-		SOFR(M)	11/17/2029		-		-		-		0.0	%
		First lien senior secured delayed draw loan		9.30	%		5.00	%		-		SOFR(M)	11/17/2029		600		589		600		0.2	%
		First lien senior secured delayed draw loan		9.30	%		5.00	%		-		SOFR(Q)	11/17/2029		1,195		1,171		1,195		0.4	%
		First lien senior secured delayed draw loan		9.30	%		5.00	%		-		SOFR(M)	11/17/2029		-		-		-		0.0	%
US Anchors Group, Inc. (Mechanical Plastics Corp.)		First lien senior secured loan		9.30	%		5.00	%		-		SOFR(Q)	7/15/2029		2,890		2,829		2,890		1.0	%
		First lien senior secured revolving loan		9.30	%		5.00	%		-		SOFR(Q)	7/15/2029		-		-		-		0.0	%
															6,717		6,575		6,717		2.3	%
Commercial services & supplies
Advanced Environmental Monitoring Intermediate, Inc.		First lien senior secured loan		10.21	%		5.75	%		-		SOFR(Q)	1/29/2027		3,000		2,977		3,000		1.0	%
Allentown, LLC		First lien senior secured loan		11.46	%		6.00	%		1.00	%	SOFR(Q)	4/22/2027		2,252		2,223		2,173		0.7	%
		First lien senior secured delayed draw loan		11.46	%		6.00	%		1.00	%	SOFR(Q)	4/22/2027		406		399		392		0.1	%
		First lien senior secured revolving loan		13.50	%		5.00	%		1.00	%	PRIME	4/22/2027		30		28		29		0.0	%
American Equipment Holdings LLC		First lien senior secured loan		10.69	%		6.00	%		-		SOFR(S)	11/5/2026		157		157		157		0.1	%
		First lien senior secured loan		10.74	%		6.00	%		-		SOFR(S)	11/5/2026		598		590		598		0.2	%
		First lien senior secured delayed draw loan		10.68	%		6.00	%		-		SOFR(S)	11/5/2026		4,907		4,856		4,907		1.7	%
		First lien senior secured delayed draw loan		10.68	%		6.00	%		-		SOFR(S)	11/5/2026		-		-		-		0.0	%
		First lien senior secured revolving loan		10.68	%		6.00	%		-		SOFR(S)	11/5/2026		380		369		380		0.1	%

See accompanying notes to consolidated financial statements.

6

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Bloomington Holdco, LLC (BW Fusion)		First lien senior secured loan		9.75	%		5.50	%		-	SOFR(S)	5/1/2030		3,938		3,864		3,978		1.3	%
		First lien senior secured loan		9.80	%		5.50	%		-	SOFR(Q)	5/1/2030		671		637		678		0.2	%
BLP Buyer, Inc. (Bishop Lifting Products)		First lien senior secured loan		10.32	%		6.00	%		-	SOFR(M)	12/22/2029		4,896		4,818		4,908		1.7	%
		First lien senior secured loan		10.32	%		6.00	%		-	SOFR(M)	12/22/2029		230		226		231		0.1	%
		First lien senior secured delayed draw loan		10.32	%		6.00	%		-	SOFR(M)	12/22/2029		599		589		601		0.2	%
		First lien senior secured revolving loan		10.32	%		6.00	%		-	SOFR(M)	12/22/2029		235		223		235		0.1	%
Connect America.Com, LLC		First lien senior secured loan		9.80	%		5.50	%		-	SOFR(Q)	10/11/2029		4,895		4,827		4,870		1.6	%
Diverzify Intermediate LLC		First lien senior secured loan		10.31	%		5.75	%		-	SOFR(Q)	5/11/2027		1,547		1,514		1,512		0.5	%
		First lien senior secured delayed draw loan		10.31	%		5.75	%		-	SOFR(M)	4/4/2026		-		-		-		0.0	%
Superior Intermediate LLC (Landmark Structures)		First lien senior secured loan		10.32	%		6.00	%		-	SOFR(M)	12/18/2029		3,430		3,342		3,456		1.2	%
		First lien senior secured delayed draw loan		10.32	%		6.00	%		-	SOFR(M)	12/18/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		10.32	%		6.00	%		-	SOFR(M)	12/18/2029		-		-		-		0.0	%
Tapco Buyer LLC		First lien senior secured loan		9.31	%		5.00	%		-	SOFR(Q)	11/15/2030		2,074		2,045		2,074		0.7	%
		First lien senior secured delayed draw loan		9.31	%		5.00	%		-	SOFR(Q)	11/15/2030		119		101		119		0.0	%
		First lien senior secured revolving loan		9.31	%		5.00	%		-	SOFR(Q)	11/15/2030		-		-		-		0.0	%
														34,364		33,785		34,298		11.5	%
Containers & packaging
Carton Packaging Buyer, Inc. (Century Box)		First lien senior secured loan		10.49	%		6.25	%		-	SOFR(S)	10/30/2028		5,376		5,258		5,376		1.8	%
		First lien senior secured revolving loan		10.49	%		6.25	%		-	SOFR(S)	10/30/2028		-		-		-		0.0	%
Drew Foam Companies Inc.		First lien senior secured loan		10.45	%		6.00	%		-	SOFR(Q)	12/5/2026		-		-		-		0.0	%
		First lien senior secured loan		10.45	%		6.00	%		-	SOFR(Q)	11/5/2025		2,824		2,804		2,796		0.9	%
FCA, LLC		First lien senior secured loan		9.26	%		5.00	%		-	SOFR(S)	7/18/2028		2,012		1,995		2,012		0.7	%
		First lien senior secured loan		10.07	%		5.75	%		-	SOFR(M)	7/18/2028		285		279		288		0.1	%

See accompanying notes to consolidated financial statements.

7

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Monza Purchaser, LLC (Smyth)		First lien senior secured loan		9.81	%		5.50	%		-	SOFR(Q)	2/28/2030		4,648		4,546		4,648		1.6	%
		First lien senior secured delayed draw loan		9.81	%		5.50	%		-	SOFR(Q)	2/28/2030		-		-		-		0.0	%
		First lien senior secured revolving loan		9.72	%		5.50	%		-	SOFR(S)	2/28/2030		360		332		360		0.1	%
The Robinette Company		First lien senior secured loan		10.06	%		5.75	%		-	SOFR(Q)	5/10/2029		2,181		2,143		2,202		0.7	%
		First lien senior secured revolving loan		10.06	%		5.75	%		-	SOFR(Q)	5/10/2029		516		498		521		0.2	%
		First lien senior secured delayed draw loan		10.06	%		5.75	%		-	SOFR(Q)	11/10/2025		-		-		-		0.0	%
WCHG Buyer, Inc. (Handgards)		First lien senior secured loan		9.30	%		5.00	%		-	SOFR(Q)	4/10/2031		6,787		6,715		6,787		2.3	%
														24,989		24,570		24,990		8.4	%
Diversified telecommunication services
Network Connex (f/k/a NTI Connect, LLC)		First lien senior secured loan		9.45	%		5.00	%		-	SOFR(Q)	1/31/2026		2,564		2,536		2,564		0.9	%
Food products
BR PJK Produce, LLC (Keany)		First lien senior secured loan		10.71	%		6.25	%		-	SOFR(Q)	11/14/2027		4,676		4,614		4,700		1.6	%
		First lien senior secured loan		10.71	%		6.25	%		-	SOFR(Q)	11/14/2027		719		705		723		0.2	%
		First lien senior secured delayed draw loan		10.71	%		6.25	%		-	SOFR(Q)	11/14/2027		732		714		736		0.2	%
		First lien senior secured delayed draw loan		10.71	%		6.25	%		-	SOFR(Q)	11/14/2027		226		226		227		0.1	%
CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)		First lien senior secured loan		9.28	%		5.00	%		-	SOFR(S)	2/26/2030		2,623		2,567		2,637		0.9	%
		First lien senior secured delayed draw loan		9.26	%		5.00	%		-	SOFR(S)	2/26/2030		1,496		1,448		1,504		0.5	%
		First lien senior secured revolving loan		9.28	%		5.00	%		-	SOFR(S)	2/26/2030		-		-		-		0.0	%
City Line Distributors LLC		First lien senior secured loan		10.44	%		6.00	%		-	SOFR(M)	8/31/2028		1,851		1,816		1,869		0.6	%
		First lien senior secured delayed draw loan		10.43	%		6.00	%		-	SOFR(M)	8/31/2028		758		749		766		0.3	%
		First lien senior secured revolving loan		10.44	%		6.00	%		-	SOFR(M)	8/31/2028		-		-		-		0.0	%

See accompanying notes to consolidated financial statements.

8

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Gulf Pacific Acquisition, LLC		First lien senior secured loan		11.42	%		7.00	%		-	SOFR(M)	9/30/2028		1,708		1,688		1,674		0.6	%
		First lien senior secured delayed draw loan		11.42	%		7.00	%		-	SOFR(M)	9/30/2028		144		144		141		0.0	%
		First lien senior secured revolving loan		11.42	%		7.00	%		-	SOFR(M)	9/30/2028		360		353		352		0.1	%
IF&P Foods, LLC (FreshEdge)		First lien senior secured loan		10.02	%		5.63	%		-	SOFR(Q)	7/23/2030		3,843		3,781		3,843		1.3	%
		First lien senior secured loan		10.40	%		6.00	%		-	SOFR(Q)	7/23/2030		97		95		97		0.0	%
		First lien senior secured loan		9.65	%		5.25	%		-	SOFR(Q)	7/23/2030		118		114		118		0.0	%
		First lien senior secured delayed draw loan		10.02	%		5.63	%		-	SOFR(Q)	7/23/2030		571		562		571		0.2	%
		First lien senior secured revolving loan		10.02	%		5.63	%		-	SOFR(M)	7/23/2030		436		429		436		0.2	%
J&K Ingredients, LLC		First lien senior secured loan		10.55	%		6.25	%		-	SOFR(Q)	11/16/2028		2,889		2,833		2,918		1.0	%
ML Buyer, LLC (Mama Lycha Foods, LLC)		First lien senior secured loan		9.54	%		5.25	%		-	SOFR(Q)	9/9/2029		2,539		2,494		2,545		0.9	%
		First lien senior secured revolving loan		9.55	%		5.25	%		-	SOFR(Q)	9/9/2029		44		28		44		0.0	%
Siegel Egg Co., LLC	(6)(7)	First lien senior secured loan					-			-		12/29/2026		2,341		2,324		1,756		0.6	%
		First lien senior secured revolving loan					-			-		12/29/2026		491		488		368		0.1	%
Worldwide Produce Acquisition, LLC		First lien senior secured delayed draw loan		10.97	%		6.75	%		-	SOFR(S)	1/18/2029		554		542		534		0.2	%
		First lien senior secured delayed draw loan		10.97	%		6.75	%		-	SOFR(S)	1/18/2029		460		430		444		0.2	%
		First lien senior secured delayed draw loan		10.97	%		6.75	%		-	SOFR(S)	1/18/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		10.97	%		6.75	%		-	SOFR(S)	1/17/2029		-		-		-		0.0	%
		First lien senior secured loan		10.97	%		6.75	%		-	SOFR(S)	1/18/2029		2,824		2,765		2,725		0.9	%
														32,500		31,909		31,728		10.7	%

See accompanying notes to consolidated financial statements.

9

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Health care providers & services
Brightview, LLC		First lien senior secured loan		10.44	%		6.00	%		-	SOFR(M)	12/14/2026		2,140		2,136		2,140		0.7	%
		First lien senior secured delayed draw loan		10.44	%		6.00	%		-	SOFR(M)	12/14/2026		286		284		286		0.1	%
		First lien senior secured revolving loan		10.44	%		6.00	%		-	SOFR(M)	12/14/2026		130		130		130		0.0	%
Guardian Dentistry Practice Management, LLC		First lien senior secured loan		9.94	%		5.50	%		-	SOFR(M)	8/20/2027		784		774		784		0.3	%
		First lien senior secured delayed draw loan		9.94	%		5.50	%		-	SOFR(M)	8/20/2027		1,412		1,397		1,412		0.5	%
		First lien senior secured revolving loan		9.94	%		5.50	%		-	SOFR(M)	8/20/2027		-		-		-		0.0	%
Guided Practice Solutions: Dental, LLC (GPS)		First lien senior secured delayed draw loan		10.69	%		6.25	%		-	SOFR(M)	11/24/2026		3,808		3,808		3,808		1.3	%
		First lien senior secured delayed draw loan		10.69	%		6.25	%		-	SOFR(M)	11/24/2026		952		952		952		0.3	%
		First lien senior secured delayed draw loan		10.69	%		6.25	%		-	SOFR(M)	11/24/2026		1,563		1,499		1,563		0.5	%
Light Wave Dental Management, LLC		First lien senior secured revolving loan		9.80	%		5.50	%		-	SOFR(Q)	6/30/2029		206		187		206		0.1	%
		First lien senior secured loan		9.80	%		5.50	%		-	SOFR(Q)	6/30/2029		6,067		5,935		6,083		2.1	%
		First lien senior secured loan		9.80	%		5.50	%		-	SOFR(Q)	6/30/2029		61		60		62		0.0	%
MVP VIP Borrower, LLC		First lien senior secured loan		10.80	%		6.50	%		-	SOFR(M)	1/3/2029		4,004		3,924		4,044		1.4	%
		First lien senior secured delayed draw loan		10.80	%		6.50	%		-	SOFR(Q)	1/3/2029		323		317		326		0.1	%
NMA Holdings, LLC (Neuromonitoring Associates)		First lien senior secured loan		9.55	%		5.25	%		-	SOFR(Q)	12/18/2030		3,164		3,094		3,203		1.1	%
		First lien senior secured delayed draw loan		9.55	%		5.25	%		-	SOFR(Q)	12/18/2030		-		-		-		0.0	%
		First lien senior secured revolving loan		9.55	%		5.25	%		-	SOFR(Q)	12/18/2030		-		-		-		0.0	%
Redwood MSO, LLC (Smile Partners)		First lien senior secured loan		9.57	%		5.25	%		-	SOFR(M)	12/19/2030		2,397		2,352		2,397		0.8	%
		First lien senior secured delayed draw loan		9.55	%		5.25	%		-	SOFR(M)	12/20/2029		42		33		42		0.0	%
		First lien senior secured revolving loan		11.75	%		4.25	%		-	SOFR(M)	12/20/2029		-		-		-		0.0	%
Refocus Management Services, LLC		First lien senior secured loan		9.90	%		5.50	%		-	SOFR(Q)	2/14/2029		3,557		3,467		3,557		1.2	%
		First lien senior secured delayed draw loan		9.91	%		5.50	%		-	SOFR(Q)	2/14/2029		647		632		647		0.2	%
		First lien senior secured revolving loan		9.91	%		5.50	%		-	SOFR(Q)	2/14/2029		97		89		97		0.0	%
Salt Dental Collective, LLC		First lien senior secured delayed draw loan		11.17	%		6.75	%		-	SOFR(M)	2/15/2028		993		984		993		0.3	%
		First lien senior secured delayed draw loan		11.17	%		6.75	%		-	SOFR(M)	2/15/2028		-		-		-		0.0	%
														32,633		32,054		32,732		11.0	%

See accompanying notes to consolidated financial statements.

10

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Health care equipment & supplies
ECS Opco 1, LLC (Spectrum Vascular)		First lien senior secured loan		8.94	%		4.75	%		-	SOFR(S)	3/26/2031		1,464		1,440		1,464		0.5	%
		First lien senior secured delayed draw loan		8.94	%		4.75	%		-	SOFR(S)	3/26/2031		-		-		-		0.0	%
		First lien senior secured revolving loan		8.94	%		4.75	%		-	SOFR(S)	3/26/2031		-		-		-		0.0	%
LSL Industries, LLC (LSL Healthcare)		First lien senior secured loan		11.56	%		7.00	%		-	SOFR(Q)	11/3/2027		1,632		1,596		1,595		0.5	%
		First lien senior secured delayed draw loan		11.56	%		7.00	%		-	SOFR(Q)	11/3/2027		-		-		-		0.0	%
		First lien senior secured revolving loan		11.56	%		7.00	%		-	SOFR(Q)	11/3/2027		-		-		-		0.0	%
														3,096		3,036		3,059		1.0	%
Household durables
Del-Air Heating, Air Conditioning & Refrigeration, LLC		First lien senior secured loan		9.82	%		5.50	%		-	SOFR(M)	2/4/2031		1,159		1,142		1,159		0.4	%
		First lien senior secured revolving loan		9.83	%		5.50	%		-	SOFR(M)	2/4/2031		202		195		202		0.1	%
		First lien senior secured delayed draw loan		9.82	%		5.50	%		-	SOFR(M)	2/4/2031		741		727		741		0.2	%
														2,102		2,064		2,102		0.7	%
Household products
CREO Group Inc. (HMS Manufacturing)		First lien senior secured loan		10.83	%		6.25	%		-	SOFR(Q)	7/3/2028		5,959		5,844		5,959		2.0	%
		First lien senior secured delayed draw loan		10.81	%		6.25	%		-	SOFR(Q)	7/3/2028		472		452		472		0.2	%
														6,431		6,296		6,431		2.2	%
Insurance
Allcat Claims Service, LLC		First lien senior secured loan		10.42	%		6.00	%		-	SOFR(M)	7/7/2027		653		647		653		0.2	%
		First lien senior secured delayed draw loan		10.42	%		6.00	%		-	SOFR(M)	7/7/2027		1,829		1,779		1,828		0.6	%
		First lien senior secured revolving loan		10.42	%		6.00	%		-	SOFR(M)	7/7/2027		-		-		-		0.0	%
														2,482		2,426		2,481		0.8	%
IT services
Improving Acquisition LLC		First lien senior secured loan		10.95	%		6.50	%		-	SOFR(Q)	7/26/2027		4,867		4,811		4,867		1.6	%
		First lien senior secured revolving loan		10.95	%		6.50	%		-	SOFR(Q)	7/26/2027		-		-		-		0.0	%
														4,867		4,811		4,867		1.6	%

See accompanying notes to consolidated financial statements.

11

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

													Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Leisure products
MacNeill Pride Group Corp.		First lien senior secured delayed draw loan		11.31	%		6.25	%		0.50	%	SOFR(Q)	4/22/2026		952		941		952		0.3	%
		First lien senior secured revolving loan		11.31	%		6.25	%		0.50	%	SOFR(Q)	4/22/2026		-		-		-		0.0	%
Olibre Borrower LLC (Revelyst)		First lien senior secured loan		10.06	%		5.75	%		-		SOFR(Q)	1/3/2030		6,182		6,063		6,182		2.1	%
Pixel Intermediate, LLC	(5)	First lien senior secured loan		10.92	%		6.50	%		-		SOFR(S)	2/1/2029		4,046		3,963		4,086		1.3	%
		First lien senior secured revolving loan		10.80	%		6.50	%		-		SOFR(Q)	2/1/2029		1,368		1,334		1,382		0.5	%
Spinrite Inc.	(5)	First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	6/30/2025		305		305		305		0.1	%
		First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	6/26/2030		527		527		527		0.2	%
		First lien senior secured revolving loan		9.80	%		5.50	%		-		SOFR(Q)	6/30/2025		554		552		554		0.2	%
VENUplus, Inc. (f/k/a CTM Group, Inc.)		First lien senior secured loan		11.96	%		4.75	%		2.75	%	SOFR(Q)	11/30/2026		3,052		3,000		2,975		1.0	%
															16,986		16,685		16,963		5.7	%
Machinery
MRC Keystone Acquisition LLC (Automated Handing Solutions)		First lien senior secured loan		10.80	%		6.50	%		-		SOFR(Q)	12/18/2029		2,841		2,770		2,841		0.9	%
		First lien senior secured revolving loan		10.80	%		6.50	%		-		SOFR(Q)	12/18/2029		-		-		-		0.0	%
CMT Intermediate Holdings (Capital Machine Technologies)		First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	3/31/2030		3,243		3,161		3,243		1.1	%
Luxium Solutions, LLC		First lien senior secured loan		10.55	%		6.25	%		-		SOFR(Q)	12/1/2027		957		946		957		0.3	%
		First lien senior secured loan		10.55	%		6.25	%		-		SOFR(Q)	12/1/2027		1,178		1,164		1,178		0.4	%
		First lien senior secured delayed draw loan		10.55	%		6.25	%		-		SOFR(Q)	12/1/2027		309		307		309		0.1	%
PVI Holdings, Inc		First lien senior secured loan		9.34	%		4.94	%		-		SOFR(Q)	1/18/2028		2,022		2,004		2,012		0.7	%
RMH Systems, LLC		First lien senior secured loan		9.55	%		5.25	%		-		SOFR(Q)	2/4/2030		2,025		1,955		2,025		0.7	%
		First lien senior secured delayed draw loan		9.55	%		5.25	%		-		SOFR(Q)	2/4/2030		-		-		-		0.0	%
		First lien senior secured revolving loan		9.55	%		5.25	%		-		SOFR(Q)	2/4/2030		-		-		-		0.0	%
															12,575		12,307		12,565		4.2	%

See accompanying notes to consolidated financial statements.

12

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

												Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Personal care products
PH Beauty Holdings III, Inc.		First lien senior secured loan		9.32	%		5.00	%		-	SOFR(Q)	9/28/2027		7,000		6,932		7,000		2.4	%
Phoenix YW Buyer, Inc. (Elida Beauty)		First lien senior secured loan		9.32	%		5.00	%		-	SOFR(M)	5/31/2030		2,424		2,368		2,424		0.8	%
		First lien senior secured revolving loan		9.32	%		5.00	%		-	SOFR(Q)	5/31/2030		-		-		-		0.0	%
Silk Holdings III Corp. (Suave)		First lien senior secured loan		9.82	%		5.50	%		-	SOFR(M)	5/1/2029		4,596		4,527		4,596		1.5	%
														14,020		13,827		14,020		4.7	%
Professional services
DISA Holdings Corp.		First lien senior secured delayed draw loan		9.32	%		5.00	%		-	SOFR(Q)	9/9/2028		1,270		1,249		1,270		0.4	%
		First lien senior secured delayed draw loan		9.31	%		5.00	%		-	SOFR(Q)	9/9/2028		180		180		180		0.1	%
		First lien senior secured revolving loan		9.31	%		5.00	%		-	SOFR(Q)	9/9/2028		74		68		74		0.0	%
		First lien senior secured loan		9.32	%		5.00	%		-	SOFR(Q)	9/9/2028		222		219		222		0.1	%
		First lien senior secured loan		9.32	%		5.00	%		-	SOFR(Q)	9/9/2028		3,351		3,290		3,351		1.1	%
Envirotech Services, LLC		First lien senior secured loan		9.99	%		5.75	%		-	SOFR(S)	1/18/2029		5,769		5,643		5,769		2.0	%
		First lien senior secured loan		9.97	%		5.75	%		-	SOFR(S)	1/18/2029		22		21		22		0.0	%
		First lien senior secured revolving loan		9.99	%		5.75	%		-	SOFR(S)	1/18/2029		-		-		-		0.0	%
CI (MG) Group, LLC (Mariani Premier Group)		First lien senior secured loan		9.72	%		5.50	%		-	SOFR(S)	3/27/2030		3,918		3,839		3,918		1.3	%
		First lien senior secured delayed draw loan		9.72	%		5.50	%		-	SOFR(S)	3/27/2030		-		-		-		0.0	%
		First lien senior secured delayed draw loan		9.72	%		5.50	%		-	SOFR(S)	3/27/2030		-		-		-		0.0	%
		First lien senior secured revolving loan		9.72	%		5.50	%		-	SOFR(S)	3/27/2030		-		-		-		0.0	%
														14,806		14,509		14,806		5.0	%

See accompanying notes to consolidated financial statements.

13

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

													Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Textiles, apparel & luxury goods
American Soccer Company, Incorporated (SCORE)		First lien senior secured loan		14.70	%		7.25	%		3.00	%	SOFR(Q)	7/20/2027		2,376		2,305		2,376		0.8	%
		First lien senior secured revolving loan		14.70	%		7.25	%		3.00	%	SOFR(Q)	7/20/2027		376		364		376		0.1	%
															2,752		2,669		2,752		0.9	%
Trading companies & distributors
AIDC IntermediateCo 2, LLC (Peak Technologies)		First lien senior secured loan		9.82	%		5.50	%		-		SOFR(M)	7/22/2027		2,930		2,869		2,930		1.0	%
BCDI Meteor Acquisition, LLC		First lien senior secured loan		11.40	%		7.00	%		-		SOFR(Q)	6/29/2028		4,881		4,801		4,881		1.6	%
		First lien senior secured loan		11.40	%		7.00	%		-		SOFR(Q)	6/29/2028		369		363		369		0.1	%
CGI Automated Manufacturing, LLC		First lien senior secured loan		11.64	%		7.00	%		-		SOFR(S)	12/17/2026		1,444		1,420		1,430		0.5	%
		First lien senior secured loan		11.64	%		7.00	%		-		SOFR(S)	12/17/2026		-		-		-		0.0	%
		First lien senior secured delayed draw loan		11.64	%		7.00	%		-		SOFR(S)	12/17/2026		1,206		1,186		1,194		0.4	%
		First lien senior secured revolving loan		11.56	%		7.00	%		-		SOFR(Q)	12/17/2026		125		122		123		0.0	%
Dusk Acquisition II Corporation (Motors & Armatures, Inc. – MARS)		First lien senior secured loan		10.30	%		6.00	%		-		SOFR(Q)	7/12/2029		5,288		5,193		5,288		1.8	%
		First lien senior secured loan		10.30	%		6.00	%		-		SOFR(Q)	7/12/2029		1,682		1,650		1,682		0.6	%
Energy Acquisition LP (Electrical Components International, Inc. - ECI)		First lien senior secured loan		10.81	%		6.50	%		-		SOFR(Q)	5/10/2029		5,092		5,002		5,130		1.7	%
		First lien senior secured delayed draw loan		10.81	%		6.50	%		-		SOFR(Q)	5/10/2029		-		-		-		0.0	%
Engineered Fastener Company, LLC (EFC International)		First lien senior secured loan		10.95	%		6.50	%		-		SOFR(Q)	11/1/2027		6,860		6,757		6,860		2.3	%
Genuine Cable Group, LLC		First lien senior secured loan		10.17	%		5.75	%		-		SOFR(M)	11/1/2026		4,875		4,804		4,863		1.6	%
		First lien senior secured loan		10.17	%		5.75	%		-		SOFR(M)	11/1/2026		1,965		1,937		1,960		0.7	%
I.D. Images Acquisition, LLC		First lien senior secured loan		10.07	%		5.75	%		-		SOFR(M)	7/30/2027		2,903		2,875		2,903		1.0	%
		First lien senior secured loan		10.07	%		5.75	%		-		SOFR(M)	7/30/2027		655		636		655		0.2	%

See accompanying notes to consolidated financial statements.

14

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

													Maturity	Principal /		Amortized		Fair		Percentage of
Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Date	Par		Cost(3)(4)		Value		Net Assets
Krayden Holdings, Inc.		First lien senior secured delayed draw loan		9.07	%		4.75	%		-		SOFR(M)	3/1/2029		-		-		-		0.0	%
		First lien senior secured delayed draw loan		9.07	%		4.75	%		-		SOFR(M)	3/1/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		9.07	%		4.75	%		-		SOFR(M)	3/1/2029		21		8		21		0.0	%
		First lien senior secured loan		9.07	%		4.75	%		-		SOFR(M)	3/1/2029		3,124		3,049		3,124		1.0	%
Lakewood Acquisition Corporation (R&B Wholesale)		First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	1/24/2030		5,197		5,095		5,197		1.7	%
		First lien senior secured revolving loan		9.80	%		5.50	%		-		SOFR(Q)	1/30/2030		210		176		210		0.1	%
OAO Acquisitions, Inc. (BearCom)		First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	12/27/2029		4,392		4,336		4,392		1.5	%
		First lien senior secured loan		9.80	%		5.50	%		-		SOFR(Q)	12/27/2029		178		176		178		0.1	%
		First lien senior secured delayed draw loan		9.80	%		5.50	%		-		SOFR(Q)	12/27/2025		933		920		933		0.3	%
		First lien senior secured revolving loan		9.80	%		5.50	%		-		SOFR(Q)	12/27/2029		-		-		-		0.0	%
TL Alpine Holding Corp. (Air Distribution Technologies Inc.)		First lien senior secured loan		10.30	%		6.00	%		-		SOFR(Q)	8/1/2030		3,939		3,867		3,979		1.3	%
Workholding US Holdings, LLC (Forkardt Hardinge)		First lien senior secured loan		9.79	%		5.50	%		-		SOFR(Q)	10/23/2029		1,675		1,639		1,675		0.6	%
		First lien senior secured revolving loan		9.79	%		5.50	%		-		SOFR(Q)	10/23/2029		253		237		253		0.1	%
															60,197		59,118		60,230		20.2	%
Wireless telecommunication services
Centerline Communications, LLC		First lien senior secured loan		12.47	%		8.00	%		-		SOFR(Q)	8/10/2027		100		98		100		0.0	%
		First lien senior secured delayed draw loan		11.98	%		8.00	%		1.50	%	SOFR(Q)	8/10/2027		2,979		2,941		2,689		0.9	%
		First lien senior secured loan		11.98	%		6.00	%		1.50	%	SOFR(Q)	8/10/2027		666		652		600		0.2	%
															3,745		3,691		3,389		1.1	%
Total Debt Investments															304,076		298,643		303,112		101.7	%

See accompanying notes to consolidated financial statements.

15

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of March 31, 2025

(amounts in 000’s, except number of shares, units)

(Unaudited)

		Number of				Fair			Percentage of
Portfolio Company(1)	Footnotes	Shares		Cost		Value			Net Assets
Investments in Money Market Funds
Morgan Stanley Institutional Liquidity Fund, Institutional Class, 4.19%	(8)		1,645,000		1,645		1,645			0.6	%
Total Investments in Money Market Funds			1,645,000		1,645		1,645			0.6	%
Total Investments				$	300,288	$	304,757			102.3	%
Liabilities in Excess of Other Assets							(6,586	)		(2.3	)%
Net Assets						$	298,171			100.0	%

(1) As of March 31, 2025, unless otherwise noted, all debt investments are Level 3 holdings. Investments in money market funds are Level 1 holdings. See Note 5 – Fair Value. As of such date, all investments are also non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.

(2) Unless otherwise noted, all loans contain a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR”) (which can include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

(3) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method. 

(4) As of March 31, 2025, the tax cost of the Company’s investments approximates their amortized cost.

(5)	Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of March 31, 2025, 3.9% of the Company’s total assets were in non-qualifying investments.
(6)	Debt investment on non-accrual status as of March 31, 2025.

(7) Non-income producing investment.

(8) The indicated rate is the yield as of March 31, 2025.

See accompanying notes to consolidated financial statements.

16

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of   Net Assets
Debt Investments
Aerospace & defense
Basel U.S. Acquisition Co., Inc. (IAC)	(5)	First lien senior secured revolving loan		9.94	%		5.50	%		-	SOFR(Q)	12/5/2028	$	-	$	-	$	-		0.0	%
		First lien senior secured loan		9.94	%		5.50	%		-	SOFR(Q)	12/5/2028		4,509		4,420		4,573		1.7	%
		First lien senior secured loan		9.94	%		5.50	%		-	SOFR(Q)	12/5/2028		603		593		612		0.2	%
		First lien senior secured delayed draw loan		9.94	%		5.50	%		-	SOFR(Q)	7/8/2026		-		-		-		0.0	%
Fastener Distribution Holdings, LLC		First lien senior secured loan		9.31	%		4.75	%		-	SOFR(Q)	11/4/2031		3,793		3,755		3,793		1.4	%
Vitesse Systems Parent, LLC		First lien senior secured loan		11.47	%		7.00	%		-	SOFR(M)	12/22/2028		5,897		5,774		5,882		2.1	%
		First lien senior secured revolving loan		11.56	%		7.00	%		-	SOFR(M)	12/22/2028		782		766		780		0.3	%
														15,584		15,308		15,640		5.7	%
Automobile components
Speedstar Holding LLC		First lien senior secured loan		10.59	%		6.00	%		-	SOFR(Q)	7/22/2027		1,020		1,008		1,025		0.4	%
		First lien senior secured delayed draw loan		10.59	%		6.00	%		-	SOFR(Q)	7/22/2027		111		110		112		0.0	%
Vehicle Accessories, Inc.		First lien senior secured loan		9.72	%		5.25	%		-	SOFR(M)	11/30/2026		3,827		3,788		3,827		1.4	%
		First lien senior secured revolving loan		9.72	%		5.25	%		-	SOFR(M)	11/30/2026		-		-		-		0.0	%
WAM CR Acquisition, Inc. (Wolverine)		First lien senior secured loan		10.58	%		6.25	%		-	SOFR(Q)	7/23/2029		5,079		4,983		5,155		1.9	%
														10,037		9,889		10,119		3.7	%
Biotechnology
Alcami Corporation (Alcami)		First lien senior secured delayed draw loan		11.55	%		7.00	%		-	SOFR(M)	12/21/2028		296		296		299		0.1	%
		First lien senior secured revolving loan		11.44	%		7.00	%		-	SOFR(M)	12/21/2028		41		28		42		0.0	%
		First lien senior secured loan		11.66	%		7.00	%		-	SOFR(Q)	12/21/2028		4,027		3,924		4,068		1.5	%
														4,364		4,248		4,409		1.6	%

See accompanying notes to consolidated financial statements.

17

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Building products
Ruff Roofers Buyer, LLC		First lien senior secured loan		9.86	%		5.50	%		-		SOFR(M)	11/17/2029		1,603		1,561		1,603		0.6	%
		First lien senior secured revolving loan		10.11	%		5.75	%		-		SOFR(M)	11/19/2029		-		-		-		0.0	%
		First lien senior secured delayed draw loan		10.11	%		5.75	%		-		SOFR(M)	11/19/2029		860		841		860		0.3	%
		First lien senior secured delayed draw loan		10.11	%		5.50	%		-		SOFR(M)	11/19/2029		-		-		-		0.0	%
US Anchors Group, Inc. (Mechanical Plastics Corp.)		First lien senior secured loan		9.33	%		5.00	%		-		SOFR(Q)	7/15/2029		2,897		2,834		2,897		1.1	%
		First lien senior secured revolving loan		9.33	%		5.00	%		-		SOFR(Q)	7/15/2029		-		-		-		0.0	%
															5,360		5,236		5,360		2.0	%
Commercial services & supplies
Advanced Environmental Monitoring, Inc.		First lien senior secured loan		10.41	%		5.75	%		-		SOFR(Q)	1/29/2027		3,000		2,974		3,000		1.1	%
Allentown, LLC		First lien senior secured loan		11.66	%		6.00	%		1.00	%	SOFR(Q)	4/22/2027		2,253		2,221		2,174		0.8	%
		First lien senior secured delayed draw loan		11.66	%		6.00	%		1.00	%	SOFR(Q)	4/22/2027		407		400		393		0.2	%
		First lien senior secured revolving loan		12.50	%		5.00	%		-		PRIME	4/22/2027		109		106		105		0.0	%
American Equipment Holdings LLC		First lien senior secured loan		10.45	%		6.00	%		-		SOFR(M)	11/5/2026		157		157		157		0.1	%
		First lien senior secured loan		10.50	%		6.00	%		-		SOFR(M)	11/5/2026		599		590		599		0.2	%
		First lien senior secured delayed draw loan		10.47	%		6.00	%		-		SOFR(M)	11/5/2026		4,920		4,872		4,920		1.8	%
		First lien senior secured revolving loan		10.47	%		6.00	%		-		SOFR(M)	11/5/2026		296		273		296		0.1	%
Bloomington Holdco, LLC (BW Fusion)		First lien senior secured loan		10.05	%		5.50	%		-		SOFR(Q)	5/1/2030		3,948		3,871		3,948		1.4	%
		First lien senior secured loan		10.05	%		5.50	%		-		SOFR(Q)	5/1/2030		671		635		671		0.2	%

See accompanying notes to consolidated financial statements.

18

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
BLP Buyer, Inc. (Bishop Lifting Products)		First lien senior secured loan		10.34	%		6.00	%		-	SOFR(M)	12/22/2029		4,909		4,827		4,946		1.8	%
		First lien senior secured loan		10.34	%		6.00	%		-	SOFR(M)	12/22/2029		231		226		232		0.1	%
		First lien senior secured delayed draw loan		10.34	%		6.00	%		-	SOFR(M)	12/22/2029		601		590		605		0.2	%
		First lien senior secured revolving loan		10.34	%		6.00	%		-	SOFR(M)	12/22/2029		143		131		144		0.1	%
Connect America.com, LLC		First lien senior secured loan		9.83	%		5.50	%		-	SOFR(Q)	10/11/2029		4,901		4,830		4,901		1.8	%
Diverzify Intermediate LLC		First lien senior secured loan		10.53	%		5.75	%		-	SOFR(Q)	5/11/2027		1,550		1,515		1,531		0.6	%
		First lien senior secured delayed draw loan		10.53	%		5.75	%		-	SOFR(M)	4/4/2026		-		-		-		0.0	%
Superior Intermediate LLC (Landmark Structures)		First lien senior secured loan		10.35	%		6.00	%		-	SOFR(Q)	12/18/2029		3,439		3,346		3,439		1.3	%
		First lien senior secured delayed draw loan		10.35	%		6.00	%			SOFR(M)	12/18/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		10.35	%		6.00	%		-	SOFR(M)	12/18/2029		-		-		-		0.0	%
Tapco Buyer LLC		First lien senior secured loan		9.52	%		5.00	%		-	SOFR(M)	11/15/2030		2,074		2,043		2,074		0.8	%
		First lien senior secured delayed draw loan		9.34	%		5.00	%		-	SOFR(Q)	11/15/2030		119		100		119		0.0	%
		First lien senior secured revolving loan		9.34	%		5.00	%		-	SOFR(Q)	11/15/2030		-		-		-		0.0	%
														34,327		33,707		34,254		12.6	%
Containers & packaging
Carton Packaging Buyer, Inc. (Century Box)		First lien senior secured loan		10.84	%		6.25	%		-	SOFR(Q)	10/30/2028		5,390		5,264		5,336		2.0	%
		First lien senior secured revolving loan		10.84	%		6.25	%		-	SOFR(S)	10/30/2028		-		-		-		0.0	%
Drew Foam Companies, Inc.		First lien senior secured loan		10.78	%		6.00	%		-	SOFR(Q)	12/5/2026		2,831		2,806		2,831		1.0	%
FCA, LLC (FCA Packaging)		First lien senior secured loan		10.13	%		5.00	%		-	SOFR(S)	7/18/2028		2,012		1,994		2,012		0.8	%
		First lien senior secured loan		10.11	%		5.75	%		-	SOFR(M)	7/18/2028		286		278		292		0.1	%

See accompanying notes to consolidated financial statements.

19

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
		First lien senior secured revolving loan		10.13	%		5.75	%		-	SOFR(S)	7/18/2028		-		-		-		0.0	%
Innopak Industries, Inc.		First lien senior secured loan		10.75	%		6.25	%		-	SOFR(M)	3/5/2027		3,064		3,015		3,064		1.1	%
		First lien senior secured loan		10.75	%		6.25	%		-	SOFR(M)	3/5/2027		2,507		2,467		2,507		0.9	%
The Robinette Company		First lien senior secured loan		10.52	%		6.00	%		-	SOFR(Q)	5/10/2029		2,186		2,147		2,230		0.8	%
		First lien senior secured revolving loan		10.52	%		6.00	%		-	SOFR(Q)	5/10/2029		516		497		526		0.2	%
		First lien senior secured delayed draw loan		10.52	%		6.00	%		-	SOFR(M)	11/10/2025		-		-		-		0.0	%
														18,792		18,468		18,798		6.9	%
Diversified telecommunication services
Network Connex (f/k/a NTI Connect, LLC)		First lien senior secured loan		9.48	%		5.00	%		-	SOFR(Q)	1/31/2026		2,564		2,528		2,564		0.9	%
Food products
BR PJK Produce, LLC (Keany)		First lien senior secured loan		10.99	%		6.25	%		-	SOFR(Q)	11/14/2027		4,688		4,620		4,688		1.7	%
		First lien senior secured loan		10.99	%		6.25	%		-	SOFR(Q)	11/14/2027		721		706		721		0.3	%
		First lien senior secured delayed draw loan		10.99	%		6.25	%		-	SOFR(Q)	11/14/2027		734		714		734		0.3	%
		First lien senior secured delayed draw loan		10.99	%		6.25	%		-	SOFR(Q)	11/14/2027		227		227		227		0.1	%
CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)		First lien senior secured loan		9.77	%		5.25	%		-	SOFR(Q)	2/26/2030		2,630		2,572		2,630		1.0	%
		First lien senior secured delayed draw loan		9.77	%		5.25	%		-	SOFR(Q)	2/26/2030		1,500		1,442		1,500		0.6	%
		First lien senior secured revolving loan		9.77	%		5.00	%		-	SOFR(Q)	2/26/2030		-		-		-		0.0	%
City Line Distributors, LLC		First lien senior secured loan		10.47	%		6.00	%		-	SOFR(M)	8/31/2028		1,855		1,819		1,874		0.7	%
		First lien senior secured delayed draw loan		10.51	%		6.00	%		-	SOFR(M)	8/31/2028		760		748		768		0.3	%
		First lien senior secured revolving loan		10.51	%		6.00	%		-	SOFR(M)	8/31/2028		-		-		-		0.0	%

See accompanying notes to consolidated financial statements.

20

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Gulf Pacific Holdings, LLC		First lien senior secured loan		10.46	%		6.00	%		-		SOFR(M)	9/30/2028		1,712		1,691		1,678		0.6	%
		First lien senior secured delayed draw loan		10.55	%		6.00	%		-		SOFR(M)	9/30/2028		144		144		142		0.1	%
		First lien senior secured revolving loan		10.46	%		6.00	%		-		SOFR(M)	9/30/2028		360		353		352		0.1	%
IF&P Foods, LLC (FreshEdge)		First lien senior secured loan		10.05	%		5.63	%		-		SOFR(Q)	7/23/2030		3,853		3,787		3,853		1.4	%
		First lien senior secured loan		10.43	%		6.00	%		-		SOFR(Q)	7/23/2030		97		95		97		0.0	%
		First lien senior secured loan		10.05	%		5.63	%		-		SOFR(Q)	7/23/2030		119		114		118		0.0	%
		First lien senior secured delayed draw loan		10.05	%		5.63	%		-		SOFR(Q)	7/23/2030		572		563		572		0.2	%
		First lien senior secured revolving loan		10.05	%		5.63	%		-		SOFR(M)	7/23/2030		341		333		341		0.1	%
J&K Ingredients, LLC		First lien senior secured loan		10.83	%		6.50	%		-		SOFR(Q)	11/16/2028		2,896		2,837		2,925		1.1	%
ML Buyer, LLC (Mama Lycha Foods, LLC)		First lien senior secured loan		9.68	%		5.25	%		-		SOFR(Q)	9/9/2029		2,545		2,481		2,545		0.9	%
		First lien senior secured revolving loan		9.68	%		5.25	%		-		SOFR(Q)	9/9/2029		-		-		-		0.0	%
Siegel Egg Co., LLC		First lien senior secured loan		13.19	%		6.50	%		2.00	%	SOFR(Q)	12/29/2026		2,329		2,312		2,003		0.7	%
		First lien senior secured revolving loan		13.19	%		6.50	%		2.00	%	SOFR(Q)	12/29/2026		418		415		359		0.1	%
Worldwide Produce Acquisition, LLC		First lien senior secured delayed draw loan		11.00	%		6.75	%		-		SOFR(S)	1/18/2029		555		543		544		0.2	%
		First lien senior secured delayed draw loan		11.00	%		6.75	%		-		SOFR(S)	1/18/2029		461		429		452		0.2	%
		First lien senior secured revolving loan		11.00	%		6.75	%		-		SOFR(S)	1/18/2029		-		-		-		0.0	%
		First lien senior secured loan		11.00	%		6.75	%		-		SOFR(S)	1/18/2029		2,831		2,769		2,774		1.0	%
															32,348		31,714		31,897		11.7	%

See accompanying notes to consolidated financial statements.

21

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Health care providers & services
Brightview, LLC		First lien senior secured loan		10.47	%		6.00	%		-	SOFR(M)	12/14/2026		2,145		2,140		2,124		0.8	%
		First lien senior secured delayed draw loan		10.47	%		6.00	%		-	SOFR(M)	12/14/2026		287		285		284		0.1	%
		First lien senior secured revolving loan		10.34	%		6.00	%		-	SOFR(M)	12/14/2026		130		130		129		0.0	%
Guardian Dentistry Partners, LLC		First lien senior secured loan		9.72	%		5.25	%		-	SOFR(M)	8/20/2027		786		775		786		0.3	%
		First lien senior secured delayed draw loan		9.72	%		5.25	%		-	SOFR(M)	8/20/2027		1,415		1,399		1,415		0.5	%
		First lien senior secured revolving loan		9.72	%		5.25	%		-	SOFR(M)	8/20/2027		-		-		-		0.0	%
Guided Practice Solutions: Dental, LLC (GPS)		First lien senior secured delayed draw loan		10.72	%		6.25	%		-	SOFR(M)	11/24/2026		3,818		3,753		3,818		1.4	%
		First lien senior secured delayed draw loan		10.72	%		6.25	%		-	SOFR(M)	11/24/2026		954		954		954		0.3	%
		First lien senior secured delayed draw loan		10.72	%		6.25	%		-	SOFR(M)	11/24/2026		1,567		1,551		1,567		0.6	%
Light Wave Dental Management LLC		First lien senior secured revolving loan		9.82	%		5.50	%		-	SOFR(Q)	6/30/2029		-		-		-		0.0	%
		First lien senior secured loan		9.82	%		5.50	%		-	SOFR(Q)	6/30/2029		6,083		5,925		6,083		2.2	%
		First lien senior secured loan		9.82	%		5.50	%		-	SOFR(Q)	6/30/2029		62		60		62		0.0	%
MVP VIP Borrower, LLC		First lien senior secured loan		10.83	%		6.50	%		-	SOFR(Q)	1/3/2029		4,014		3,930		4,054		1.5	%
		First lien senior secured delayed draw loan		10.83	%		6.50	%		-	SOFR(Q)	1/3/2029		324		317		327		0.1	%
NMA Holdings, LLC (Neuromonitoring Associates)		First lien senior secured loan		9.60	%		5.25	%		-	SOFR(Q)	12/18/2030		3,172		3,099		3,172		1.2	%
		First lien senior secured delayed draw loan		9.60	%		5.25	%		-	SOFR(Q)	12/18/2030		-		-		-		0.0	%
		First lien senior secured revolving loan		9.60	%		5.25	%		-	SOFR(Q)	12/18/2030		-		-		-		0.0	%

See accompanying notes to consolidated financial statements.

22

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Redwood MSO, LLC (Smile Partners)		First lien senior secured loan		9.60	%		5.25	%		-	SOFR(Q)	12/20/2029		2,403		2,348		2,403		0.9	%
		First lien senior secured delayed draw loan		9.60	%		5.25	%		-	SOFR(Q)	12/20/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		11.75	%		4.25	%		-	PRIME	12/20/2029		-		-		-		0.0	%
Refocus Management Services, LLC		First lien senior secured loan		10.75	%		6.00	%		-	SOFR(Q)	2/14/2029		3,566		3,471		3,566		1.3	%
		First lien senior secured delayed draw loan		10.75	%		6.00	%		-	SOFR(Q)	2/14/2029		494		465		494		0.2	%
		First lien senior secured revolving loan		10.75	%		6.00	%		-	SOFR(Q)	2/14/2029		-		-		-		0.0	%
Salt Dental Collective, LLC		First lien senior secured delayed draw loan		11.21	%		6.75	%		-	SOFR(Q)	2/15/2028		995		986		995		0.4	%
														32,215		31,588		32,233		11.8	%
Health care equipment & supplies
LSL Industries, LLC (LSL Healthcare)		First lien senior secured loan		11.78	%		7.00	%		-	SOFR(Q)	11/3/2027		1,636		1,597		1,599		0.6	%
		First lien senior secured delayed draw loan		11.78	%		7.00	%		-	SOFR(Q)	11/3/2027		-		-		-		0.0	%
		First lien senior secured revolving loan		11.78	%		7.00	%		-	SOFR(Q)	11/3/2027		-		-		-		0.0	%
														1,636		1,597		1,599		0.6	%
Insurance
Allcat Claims Service, LLC		First lien senior secured loan		10.46	%		6.00	%		-	SOFR(M)	7/7/2027		655		635		655		0.2	%
		First lien senior secured delayed draw loan		10.46	%		6.00	%		-	SOFR(M)	7/7/2027		1,833		1,792		1,833		0.7	%
		First lien senior secured revolving loan		10.46	%		6.00	%		-	SOFR(M)	7/7/2027		-		-		-		0.0	%
														2,488		2,427		2,488		0.9	%

See accompanying notes to consolidated financial statements.

23

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
IT services
Improving Acquisition LLC		First lien senior secured loan		11.00	%		6.50	%		-		SOFR(Q)	7/26/2027		4,879		4,809		4,879		1.8	%
		First lien senior secured revolving loan		11.00	%		6.50	%		-		SOFR(Q)	7/26/2027		-		-		-		0.0	%
															4,879		4,809		4,879		1.8	%
Leisure products
MacNeill Pride Group Corp.		First lien senior secured delayed draw loan		11.84	%		6.75	%		0.50	%	SOFR(Q)	4/22/2026		954		944		950		0.4	%
		First lien senior secured revolving loan		11.34	%		6.75	%		-		SOFR(Q)	4/22/2026		87		84		86		0.0	%
Pixel Intermediate, LLC	(5)	First lien senior secured loan		10.92	%		6.50	%		-		SOFR(S)	2/1/2029		4,056		3,968		4,097		1.5	%
		First lien senior secured revolving loan		10.83	%		6.50	%		-		SOFR(Q)	2/1/2029		1,368		1,333		1,382		0.5	%
Spinrite, Inc.	(5)	First lien senior secured loan		9.83	%		5.50	%		-		SOFR(Q)	6/30/2025		306		306		306		0.1	%
		First lien senior secured loan		9.83	%		5.50	%		-		SOFR(Q)	6/30/2025		529		529		529		0.2	%
		First lien senior secured revolving loan		9.83	%		5.50	%		-		SOFR(Q)	6/30/2025		554		550		554		0.2	%
VENUplus, Inc. (f/k/a CTM Group, Inc.)		First lien senior secured loan		12.16	%		4.75	%		2.75	%	SOFR(Q)	11/30/2026		3,031		2,973		2,985		1.1	%
															10,885		10,687		10,889		4.0	%
Machinery
MRC Keystone Acquisition LLC (Automated Handing Solutions)		First lien senior secured loan		10.85	%		6.50	%		-		SOFR(Q)	12/18/2029		2,848		2,775		2,848		1.0	%
		First lien senior secured revolving loan		10.85	%		6.50	%		-		SOFR(Q)	12/18/2029		-		-		-		0.0	%
Luxium Solutions, LLC		First lien senior secured loan		10.58	%		6.25	%		-		SOFR(Q)	12/1/2027		959		947		959		0.4	%
		First lien senior secured loan		10.58	%		6.25	%		-		SOFR(Q)	12/1/2027		1,181		1,166		1,181		0.4	%
		First lien senior secured delayed draw loan		10.58	%		6.25	%		-		SOFR(Q)	12/1/2027		310		307		310		0.1	%
PVI Holdings, Inc		First lien senior secured loan		9.68	%		4.94	%		-		SOFR(Q)	1/18/2028		2,027		2,008		2,027		0.8	%
															7,325		7,203		7,325		2.7	%

See accompanying notes to consolidated financial statements.

24

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Personal care products
Phoenix YW Buyer, Inc. (Elida Beauty)		First lien senior secured loan		9.33	%		5.00	%		-		SOFR(Q)	5/31/2030		2,493		2,434		2,493		0.9	%
		First lien senior secured revolving loan		9.33	%		5.00	%		-		SOFR(Q)	5/31/2030		-		-		-		0.0	%
Silk Holdings III Corp. (Suave)		First lien senior secured loan		9.83	%		5.50	%		-		SOFR(Q)	5/1/2029		5,370		5,284		5,370		2.0	%
															7,863		7,718		7,863		2.9	%
Professional services
DISA Holdings Corp. (DISA)		First lien senior secured delayed draw loan		9.50	%		5.00	%		-		SOFR(Q)	9/9/2028		1,273		1,251		1,273		0.5	%
		First lien senior secured delayed draw loan		9.40	%		5.00	%		-		SOFR(Q)	9/9/2028		21		14		21		0.0	%
		First lien senior secured revolving loan		9.40	%		5.00	%		-		SOFR(Q)	9/9/2028		-		-		-		0.0	%
		First lien senior secured loan		9.50	%		5.00	%		-		SOFR(Q)	9/9/2028		222		220		222		0.1	%
		First lien senior secured loan		9.50	%		5.00	%		-		SOFR(Q)	9/9/2028		3,360		3,294		3,360		1.2	%
Envirotech Services, LLC		First lien senior secured loan		10.34	%		6.00	%		-		SOFR(Q)	1/18/2029		5,783		5,650		5,783		2.1	%
		First lien senior secured loan		10.35	%		6.00	%		-		SOFR(Q)	1/18/2029		22		21		22		0.0	%
		First lien senior secured revolving loan		10.34	%		6.00	%		-		SOFR(Q)	1/18/2029		-		-		-		0.0	%
															10,681		10,450		10,681		3.9	%
Textiles, apparel & luxury goods
American Soccer Company, Incorporated (SCORE)		First lien senior secured loan		14.73	%		7.25	%		3.00	%	SOFR(Q)	7/20/2027		2,383		2,304		2,383		0.9	%
		First lien senior secured revolving loan		14.73	%		7.25	%		3.00	%	SOFR(Q)	7/20/2027		183		170		183		0.1	%
															2,566		2,474		2,566		1.0	%

See accompanying notes to consolidated financial statements.

25

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate		Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Trading companies & distributors
AIDC Intermediate Co 2, LLC (Peak Technologies)		First lien senior secured loan		9.59	%		5.25	%		-	SOFR(M)	7/22/2027		2,937		2,870		2,923		1.1	%
TL Alpine Holding Corp. (Air Distribution Technologies Inc.)		First lien senior secured loan		10.55	%		6.00	%		-	SOFR(M)	8/1/2030		3,949		3,874		3,989		1.5	%
BCDI Meteor Acquisition, LLC (Meteor)		First lien senior secured loan		11.43	%		7.00	%		-	SOFR(Q)	6/29/2028		4,913		4,827		4,913		1.8	%
		First lien senior secured loan		11.43	%		7.00	%		-	SOFR(Q)	6/29/2028		372		364		372		0.1	%
CGI Automated Manufacturing, LLC		First lien senior secured loan		11.59	%		7.00	%		-	SOFR(Q)	12/17/2026		1,448		1,421		1,448		0.5	%
		First lien senior secured loan		11.59	%		7.00	%		-	SOFR(Q)	12/17/2026		-		-		-		0.0	%
		First lien senior secured delayed draw loan		11.59	%		7.00	%		-	SOFR(Q)	12/17/2026		1,210		1,186		1,210		0.4	%
		First lien senior secured revolving loan		11.59	%		7.00	%		-	SOFR(Q)	12/17/2026		28		26		28		0.0	%
Dusk Acquisition II Corporation (Motors & Armatures, Inc. – MARS)		First lien senior secured loan		10.33	%		6.00	%		-	SOFR(Q)	7/12/2029		5,301		5,202		5,301		2.0	%
		First lien senior secured loan		10.33	%		6.00	%		-	SOFR(Q)	7/12/2029		1,686		1,653		1,686		0.6	%
Energy Acquisition LP (Electrical Components International, Inc. - ECI)		First lien senior secured loan		11.28	%		6.50	%		-	SOFR(Q)	5/10/2029		5,105		5,011		5,181		1.9	%
		First lien senior secured delayed draw loan		11.28	%		6.50	%		-	SOFR(Q)	5/11/2026		-		-		-		0.0	%
Engineered Fastener Company, LLC (EFC International)		First lien senior secured loan		10.98	%		6.50	%		-	SOFR(Q)	11/1/2027		6,878		6,766		6,908		2.5	%

See accompanying notes to consolidated financial statements.

26

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

Portfolio Company(1)	Footnotes	Investment	Interest Rate			Spread			PIK Rate			Reference(2)	Maturity Date	Principal / Par		Amortized Cost(3)(4)		Fair Value		Percentage of Net Assets
Genuine Cable Group, LLC		First lien senior secured loan		10.21	%		5.75	%		-		SOFR(M)	11/1/2026		4,888		4,806		4,875		1.8	%
		First lien senior secured loan		10.21	%		5.75	%		-		SOFR(M)	11/1/2026		1,970		1,938		1,965		0.7	%
I.D. Images Acquisition, LLC		First lien senior secured loan		10.11	%		5.75	%		-		SOFR(M)	7/30/2027		2,911		2,880		2,911		1.1	%
		First lien senior secured loan		10.11	%		5.75	%		-		SOFR(M)	7/30/2027		657		637		657		0.3	%
Krayden Holdings, Inc.		First lien senior secured delayed draw loan		9.11	%		4.75	%		-		SOFR(M)	3/1/2029		-		-		-		0.0	%
		First lien senior secured revolving loan		9.11	%		4.75	%		-		SOFR(M)	3/1/2029		-		-		-		0.0	%
		First lien senior secured loan		9.11	%		4.75	%		-		SOFR(M)	3/1/2029		3,132		3,036		3,132		1.2	%
OAO Acquisitions, Inc. (BearCom)		First lien senior secured loan		9.98	%		5.50	%		-		SOFR(M)	12/27/2029		4,403		4,345		4,403		1.6	%
		First lien senior secured loan		9.87	%		5.50	%		-		SOFR(M)	12/27/2029		178		176		178		0.1	%
		First lien senior secured delayed draw loan		9.87	%		5.50	%		-		SOFR(M)	12/27/2025		934		918		934		0.3	%
		First lien senior secured revolving loan		9.87	%		5.50	%		-		SOFR(M)	12/27/2029		-		-		-		0.0	%
Workholding US Holdings, LLC (Forkardt Hardinge)		First lien senior secured loan		10.13	%		5.50	%		-		SOFR(Q)	10/23/2029		1,680		1,641		1,680		0.6	%
		First lien senior secured revolving loan		10.09	%		5.50	%		-		SOFR(Q)	10/23/2029		126		110		126		0.0	%
															54,706		53,687		54,820		20.1	%
Wireless telecommunication services
Centerline Communications, LLC		First lien senior secured loan		12.12	%		6.00	%		1.50	%	SOFR(Q)	8/10/2027		100		98		100		0.1	%
		First lien senior secured delayed draw loan		12.12	%		6.00	%		1.50	%	SOFR(Q)	8/10/2027		2,975		2,934		2,737		1.0	%
		First lien senior secured loan		12.16	%		6.00	%		1.50	%	SOFR(Q)	8/10/2027		666		650		612		0.2	%
															3,741		3,682		3,449		1.3	%
Total Debt Investments															262,361		257,420		261,833		96.1	%

See accompanying notes to consolidated financial statements.

27

Kayne DL 2021, Inc.

Consolidated Schedule of Investments

As of December 31, 2024

(amounts in 000’s)

		Number of				Fair			Percentage
Portfolio Company(1)	Footnotes	Shares		Cost		Value			of Net Assets
Short-Term Investments
Morgan Stanley Institutional Liquidity Fund, Institutional Class, 4.24%	(6)		13,439,729		13,440		13,440			4.9	%
Total Short-Term Investments			13,439,729		13,440		13,440			4.9	%
Total Investments				$	270,860	$	275,273			101.0	%
							-
Liabilities in Excess of Other Assets							(2,800	)		(1.0	)%
Net Assets						$	272,473			100.0	%

(1) As of December 31, 2024, all investments are Level 3 holdings. See Note 5 – Fair Value. As of such date, all investments are also non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. 

(2) Unless otherwise noted, all loans contain a variable rate structure, that may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR”) (which can include one-(M), three-(Q) or six-month (S) SOFR), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate).

(3) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method. 

(4) As of December 31, 2024, the tax cost of the Company’s investments approximates their amortized cost.

(5) Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2024, 4.3% of the Company’s total assets were in non-qualifying investments. 

(6) The indicated rate is the yield as of December 31, 2024.

See accompanying notes to consolidated financial statements.

28

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Note 1. Organization

Organization

Kayne DL 2021, Inc. (the “Company”) is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company intends to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company is a Delaware corporation formed to make investments in middle-market companies and commenced operations on December 16, 2021.

The Company is managed by KA Credit Advisors II, LLC (the “Advisor”), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), a prominent alternative investment management firm. The Advisor operates within Kayne Anderson’s middle market private credit platform (“KAPC” or “Kayne Anderson Private Credit”). The Advisor is registered with the United States Securities and Exchange Commission (the “SEC”) under the Investment Advisory Act of 1940, as amended. Subject to the overall supervision of the Company’s board of directors (the “Board”), the Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments, determining the value of the investments and monitoring its investments and portfolio companies on an ongoing basis. The Board consists of five directors, four of whom are independent (including the Board’s chairperson).

The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.

As of March 31, 2025, the Company has entered into subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of the Company’s common stock ($85,535 is undrawn). See Note 12 – Subsequent Events.

The Company conducts private offerings of its Common Stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). At the closing of any private offering, each investor will make a capital commitment (a “Capital Commitment”) to purchase shares of its common stock pursuant to a subscription agreement entered into with the Company. Investors will be required to fund drawdowns to purchase shares up to the amount of their respective Capital Commitments each time the Company delivers a notice to the investors. The Company commenced its loan origination and investment activities on December 16, 2021 contemporaneously with the initial drawdown from investors in the private offering.

29

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Note 2. Significant Accounting Policies

A. Basis of Presentation—the accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an investment company and follows accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 — “Financial Services — Investment Companies.” In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of the financial statements for the periods presented, have been included.

B. Consolidation—As provided under Regulation S-X and ASC Topic 946 – “Financial Services – Investment Companies”, the Company will generally not consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business consists of providing services to the Company.

Accordingly, the Company consolidated the accounts of KDL Corp, LLC in its consolidated financial statements. KDL Corp, LLC is a Delaware LLC that has elected to be treated as a corporation for U.S. tax purposes and was formed to facilitate compliance with the requirements to be treated as a RIC under the Code by holding (directly or indirectly through a subsidiary) equity or equity related investments in portfolio companies organized as limited liability companies or limited partnerships. As of March 31, 2025, KDL Corp, LLC held no investments.

C. Use of Estimates—the preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Actual results could differ materially from those estimates.

D. Cash and Cash Equivalents—cash and cash equivalents include short-term, liquid investments with an original maturity of three months or less and include money market fund accounts. Cash equivalents, which are the Company’s investments in money market fund accounts, are presented on the Company’s consolidated schedule of investments, and within investments on the Company’s consolidated statement of assets and liabilities.

E. Investment Valuation, Fair Value—the Company conducts the valuation of its investments consistent with GAAP and the 1940 Act. The Company’s investments will be valued no less frequently than quarterly, in accordance with the terms of Topic 820 of the Financial Accounting Standards Board’s Accounting Standards Codification, Fair Value Measurement and Disclosures (“ASC 820”).

Pursuant to Rule 2a-5 under the 1940 Act, the Board of Directors has designated the Advisor as the “valuation designee” to perform fair value determinations of the Company’s portfolio holdings, subject to oversight by and periodic reporting to the Board. The valuation designee performs fair valuation of the Company’s portfolio holdings in accordance with the Advisor’s Valuation Program, as approved by the Board.

30

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Traded Investments (Level 1 or Level 2)

Investments for which market quotations are readily available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes, broadly syndicated loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices are stale or do not represent fair value in the judgment of the Company’s Advisor, fair market value will be determined using the Advisor’s valuation process for investments that are privately issued or otherwise restricted as to resale.

The Company may also invest, to a lesser extent, in equity securities purchased in conjunction with debt investments. While the Company anticipates these equity securities to be issued by privately held companies, the Company may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock Market, Inc. (“NASDAQ”) are valued, except as indicated below, at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

Non-Traded Investments (Level 3)

Investments that are privately issued or otherwise restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of the Company’s Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment of the Company’s Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the security on the valuation date. The Company expects that a significant majority of its investments will be Level 3 investments. Unless otherwise determined by the Advisor, the following valuation process is used for the Company’s Level 3 investments:

● Valuation Designee. The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

● Valuation Firm. Quarterly, a third-party valuation firm engaged by the Advisor reviews the valuation methodologies and calculations employed for each of the Company’s investments that the Advisor has placed on the “watch list” and approximately 25% of the Company’s remaining investments. The third-party valuation firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis. The quarterly report issued by the third-party valuation firm will provide positive assurance on the fair values of the investments reviewed.

● Oversight. The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act. The Audit Committee shall aid the Board in overseeing the Advisor’s fair valuation of securities that are not publicly traded or for which current market values are not readily available. The Audit Committee shall meet quarterly to review the fair value determinations, processes and written reports of the Advisor as part of the Board’s oversight responsibilities.

31

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to the Company’s financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the Company’s financial statements.

F. Interest Income Recognition—Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. The Company does not accrue PIK interest if, in the opinion of the Advisor, the portfolio company valuation indicates that the PIK interest is not likely to be collectible. If the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed through PIK interest income. Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status. To maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends for the year the income was earned, even though the Company has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest. For the three months ended March 31, 2025 and 2024, the Company had $44 and $12, respectively, of PIK interest included in interest income, which represents 0.6% and 0.2%, respectively, of aggregate interest income.

Loans are generally placed on non-accrual status when it has been determined that a significant impairment in the financial condition and ability of the borrower to repay principal and interest has occurred and is expected to continue such that it is probable the collectability of full amount of the loan (principal and interest) is doubtful. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. If cash payments are received subsequent to a loan being placed on non-accrual status, these payments will first be applied to previously accrued but uncollected interest, then to recover the principal. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer a reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, principal and interest are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection. As of March 31, 2025, the Company had one investment on non-accrual status, which comprised 0.9% and 0.7%, respectively, of total debt investments at cost and fair value. As of March 31, 2024, the Company did not have any debt investments in portfolio companies on non-accrual status.

G. Debt Issuance Costs – Costs incurred by the Company related to the issuance of its debt (credit facilities) are capitalized and amortized over the period the debt is outstanding. The Company has classified the costs incurred to issue its credit facilities as a deduction from the carrying value of the credit facilities on the Statement of Assets and Liabilities. For the purpose of calculating the Company’s asset coverage ratios pursuant to the 1940 Act, deferred issuance costs are not deducted from the carrying value of debt or preferred stock.

H. Dividends to Common Stockholders—Dividends to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Company’s board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed taxable income carried forward from the prior year for distribution in the current year. Net realized capital gains, if any, are generally distributed, although the Company may decide to retain such capital gains for investment.

I. Income Taxes – it is the Company’s intention to continue to be treated as and to qualify each year for special tax treatment afforded a RIC under the Code. As long as the Company meets certain requirements that govern its sources of income, diversification of assets and timely distribution of earnings to stockholders, the Company will not be subject to U.S. federal income tax.

32

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

The Company must pay distributions equal to 90% of its investment company taxable income (ordinary income and short-term capital gains) to qualify as a RIC and it must distribute all of its taxable income (ordinary income, short-term capital gains and long-term capital gains) to avoid federal income taxes. The Company will be subject to federal income tax on any undistributed portion of income. For purposes of the distribution test, the Company may elect to treat as paid on the last day of its taxable year all or part of any distributions that are declared after the end of its taxable year if such distributions are declared before the due date of its tax return, including any extensions.

All RICs are subject to a non-deductible 4% excise tax on income that is not distributed on a timely basis in accordance with the calendar year distribution requirements. To avoid the tax, the Company must distribute during each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its net capital gains for the one-year period ending on December 31, the last day of our taxable year, and (iii) undistributed amounts from previous years on which the Company paid no U.S. federal income tax. A distribution will be treated as paid during the calendar year if it is paid during the calendar year or declared by the Company in October, November or December of such year, payable to stockholders of record on a date during such months and paid by the Company no later than January of the following year. Any such distributions paid during January of the following year will be deemed to be received by stockholders on December 31 of the year the distributions are declared, rather than when the distributions are actually received.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.

J. Commitments and Contingencies – in the normal course of business, the Company may enter into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

K. Recent Accounting Pronouncements — In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all of the disclosures as required by ASC 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for the fiscal years beginning after December 15, 2023, and interim periods beginning with the first quarter ended March 31, 2025. Early adoption is permitted and retrospective adoption is required for all prior periods presented. The Company has adopted ASU 2023-07 effective December 31, 2024, and concluded that the application of this guidance did not have any material impact on its consolidated financial statements. See Note 11 – Segment Reporting, for more information on the effects of the adoption of ASU 2023-07.

Note 3. Agreements and Related Party Transactions

A.  Administration Agreement—on December 16, 2021, the Company entered into an Administration Agreement with its Advisor, which serves as its Administrator and provides or oversees the performance of its required administrative services and professional services rendered by others, which include (but are not limited to), accounting, payment of our expenses, legal, compliance, operations, technology and investor relations, preparation and filing of its tax returns, and preparation of financial reports provided to its stockholders and filed with the SEC. On February 19, 2025, the Board approved an additional one-year term of the Administration Agreement through March 15, 2026.

The Company reimburses the Administrator for its costs and expenses incurred in performing its obligations under the Administration Agreement. As the Company reimburses the Administrator for its expenses, the Company indirectly bears such cost. The Administration Agreement may be terminated by either party with 60 days’ written notice.

33

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

B. Investment Advisory Agreement – on December 16, 2021, the Company entered into an Investment Advisory Agreement with its Advisor. Pursuant to the Investment Advisory Agreement with its Advisor, the Company will pay its Advisor a management fee for investment advisory and management services. The Investment Advisory Agreement may be terminated by either party with 60 days’ written notice. On February 19, 2025, the Board approved an additional one-year term of the Investment Advisory Agreement through March 15, 2026.

Management Fee

The management fee is calculated at an annual rate of 0.75% of the fair market value of the Company’s investments including, in each case, assets purchased with borrowings under credit facilities, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase.

The management fee is payable quarterly in arrears and calculated based on the average of the Company’s fair market value of investments, at the end of the two most recently completed calendar quarters, including, in each case, assets purchased with borrowings under credit facilities, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase. Management fees for any partial quarter are appropriately pro-rated.

For the three months ended March 31, 2025 and 2024, the Company incurred management fees of $521 and $351, respectively.

C. Other – Kayne Anderson, an affiliate of the Advisor, made an equity contributions of $250 during the three months ended March 31, 2025. See Note 12 – Subsequent Events.

Note 4. Investments 

The following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of March 31, 2025 and December 31, 2024.

	March 31, 2025				December 31, 2024
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
First-lien senior secured debt investments	$	298,643	$	303,112	$	257,420	$	261,833
Investments in money market funds		1,645		1,645		13,440		13,440
Total Investments	$	300,288	$	304,757	$	270,860	$	275,273

As of March 31, 2025 and December 31, 2024, $12,026 and $12,053, respectively, of the Company’s total assets were non-qualifying assets as defined by Section 55(a) of the 1940 Act.

The Company uses Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of its portfolio companies.

34

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

The industry composition of long-term investments based on fair value as of March 31, 2025 and December 31, 2024 was as follows: 

	March 31, 2025			December 31, 2024
Trading companies & distributors		19.9	%		20.9	%
Commercial services & supplies		11.3	%		13.1	%
Health care providers & services		10.8	%		12.3	%
Food products		10.5	%		12.2	%
Containers & packaging		8.2	%		7.2	%
Leisure products		5.6	%		4.2	%
Aerospace & defense		5.2	%		6.0	%
Professional services		4.9	%		4.1	%
Personal care products		4.6	%		3.0	%
Machinery		4.2	%		2.8	%
Building products		2.2	%		2.0	%
Household products		2.1	%		-	%
Automobile components		2.1	%		3.9	%
IT services		1.6	%		1.8	%
Biotechnology		1.4	%		1.7	%
Wireless telecommunication services		1.1	%		1.3	%
Health care equipment & supplies		1.0	%		0.6	%
Textiles, apparel & luxury goods		0.9	%		1.0	%
Diversified telecommunication services		0.9	%		1.0	%
Insurance		0.8	%		0.9	%
Household durables		0.7	%		-	%
		100.0	%		100.0	%

35

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Note 5. Fair Value

The Fair Value Measurement Topic of the FASB Accounting Standards Codification (ASC 820) defines fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants under current market conditions at the measurement date. As required by ASC 820, the Company has performed an analysis of all investments measured at fair value to determine the significance and character of all inputs to their fair value determination. Inputs are the assumptions, along with considerations of risk, that a market participant would use to value an asset or a liability. In general, observable inputs are based on market data that is readily available, regularly distributed and verifiable that the Company obtains from independent, third-party sources. Unobservable inputs are developed by the Company based on its own assumptions of how market participants would value an asset or a liability.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories. 

Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement.

Level 2 — Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best available information.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

The following tables present the fair value hierarchy of investments as of March 31, 2025 and December 31, 2024. Note that the valuation levels below are not necessarily an indication of the risk associated with the underlying investment.

	Fair Value Hierarchy as of March 31, 2025
Investments:	Level 1		Level 2		Level 3		Total
First-lien senior secured debt investments	$	-	$	-	$	303,112	$	303,112
Investments in money market funds		1,645		-		-		1,645
Total Investments	$	1,645	$	-	$	303,112	$	304,757

	Fair Value Hierarchy as of December 31, 2024
Investments:	Level 1		Level 2		Level 3		Total
First-lien senior secured debt investments	$	-	$	-	$	261,833	$	261,833
Investments in money market funds		13,440		-		-		13,440
Total Investments	$	13,440	$	-	$	261,833	$	275,273

36

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three months ended March 31, 2025 and 2024, respectively.

	First-lien
	senior secured
For the three months ended March 31, 2025	debt investments
Fair value, beginning of period	$	261,833
Purchases of investments		52,314
Proceeds from sales of investments and principal repayments		(11,659	)
Net change in unrealized gain (loss)		55
Net realized gain (loss)		-
Net accretion of discount on investments		515
PIK interest		54
Transfers into (out of) Level 3		-
Fair value, end of period	$	303,112

	First-lien
	senior secured
For the three months ended March 31, 2024	debt investments
Fair value, beginning of period	$	177,526
Purchases of investments		27,407
Proceeds from principal payments and sales of investments		(6,962	)
Net change in unrealized gain (loss)		831
Net realized gain (loss)		-
Net accretion of discount on investments		383
PIK interest		9
Transfers into (out of) Level 3		-
Fair value, end of period	$	199,194

37

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

For the three three months ended March 31, 2025 and 2024, the Company did not recognize any transfers to or from Level 3. The increase in unrealized gain (loss) relates to investments that were held during the period. The Company includes these unrealized gains and losses on the Statement of Operations – Net Change in Unrealized Gains (Losses).

Valuation Techniques and Unobservable Inputs

Non-traded debt investments are typically valued using either a market yield analysis or an enterprise value analysis. For debt investments that are not considered to be credit impaired, the Advisor uses a market yield analysis to determine fair value. If the debt investment is considered to be credit impaired (which is determined by performing an enterprise value analysis), the Advisor will use the enterprise value analysis or a liquidation basis analysis to determine fair value.

To determine fair value using a market yield analysis, the Advisor discounts the contractual cash flows of each investment at an appropriate discount rate (the market yield). To determine the estimated market yield for its debt investments, the Advisor analyzes changes in the risk/reward (measured by yields and leverage) of middle market indices as compared to changes in risk/reward for the underlying investment and estimates the appropriate discount rate for such debt investment. In this context, the discount rate and fair market value of the investment is impacted by the structure and pricing of the security relative to current market yields for similar investments in similar businesses as well as the financial performance of such business. In performing this analysis, the Advisor considers data sources including, but not limited to: (i) industry publications, such as S&P Global’s High-End Middle Market Lending Review; Thomson Reuter’s Refinitiv Middle Market Monthly Stats; CapitalIQ; Pitchbook News; The Lead Left, and other data sources; (ii) comparable investments reviewed or completed by affiliates of the Advisor, and (iii) information obtained and provided by the Advisor’s independent valuation managers.

To determine if a debt investment is credit impaired, the Advisor estimates the enterprise value of the business and compares such estimate to the outstanding indebtedness of such business. The Advisor utilizes the following valuation methodologies to determine the estimated enterprise value of the company: (i) analysis of valuations of publicly traded companies in a similar line of business (“public company comparable analysis”), (ii) analysis of valuations of M&A transaction valuations for companies in a similar line of business (“precedent transaction analysis”), (iii) discounted cash flows (“DCF analysis”) and (iv) other valuation methodologies.

In determining the non-traded debt investment valuations, the following factors are considered, where relevant: the nature and realizable value of any collateral; the company’s ability to make interest payments, amortization payments (if any) and other fixed charges; call features, put features and other relevant terms of the debt security; the company’s historical and projected financial results; the markets in which the company does business; changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be valued; and other relevant factors. 

38

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Equity investments in private companies are typically valued using one of or a combination of the following valuation techniques: (i) public company comparable analysis, (ii) precedent transaction analysis and (iii) DCF analysis.

Under all of these valuation techniques, the Advisor estimates operating results of the companies in which it invests, including earnings before interest expense, income tax expense, depreciation and amortization (“EBITDA”) and free cash flow. These estimates utilize unobservable inputs such as historical operating results, which may be unaudited, and projected operating results, which will be based on operating assumptions for such company. Investment performance data utilized will be the most recently available as of the measurement date which in many cases may reflect up to a one quarter lag in information. These estimates will be sensitive to changes in assumptions specific to such company as well as general assumptions for the industry. Other unobservable inputs utilized in the valuation techniques outlined above include: discounts for lack of marketability, selection of publicly traded companies, selection of similar precedent transactions, selected ranges for valuation multiples and expected required rates of return (discount rates).

Quantitative Table for Valuation Techniques

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of March 31, 2025 and December 31, 2024. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Advisor’s determination of fair value. The Company calculates weighted average, based on the value of the unobservable input of each investment relative to the fair value of the investment compared to the total fair value of all investments.

	As of March 31, 2025
			Valuation	Unobservable		Weighted
	Fair Value		Technique	Input	Range	Average
First-lien senior secured debt investments	$	303,112	Discounted cash flow analysis	Discount rate	7.6% - 15.0%		9.2	%

	As of December 31, 2024
			Valuation	Unobservable		Weighted
	Fair Value		Technique	Input	Range	Average
First-lien senior secured debt investments	$	261,833	Discounted cash flow analysis	Discount rate	8.4% - 15.0%		9.8	%

Note 6. Debt

As of March 31, 2025, the Company has a senior secured revolving credit facility (the “Subscription Credit Facility”), that has a total commitment of $25,000 and a maturity date of February 20, 2026. The Subscription Credit Facility permits the Company to borrow up to $25,000, subject to availability under the borrowing base which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements. As of March 31, 2025, the interest rate on the Subscription Credit Facility is equal to SOFR plus an applicable spread of 2.25% with no floor. The Company is also required to pay a commitment fee of 0.25% per annum on any unused portion of the Subscription Credit Facility.

39

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Debt obligations consisted of the following as of March 31, 2025 and December 31, 2024. As of March 31, 2025, the amount outstanding under the Subscription Credit Facility equals its fair value.

	March 31, 2025
	Aggregate Principal Committed		Outstanding Principal		Amount Available(1)
Subscription Credit Facility	$	25,000	$	2,500	$	22,500
Total debt	$	25,000	$	2,500	$	22,500

	December 31, 2024
	Aggregate Principal Committed		Outstanding Principal		Amount Available(1)
Subscription Credit Facility	$	25,000	$	-	$	25,000
Total debt	$	25,000	$	-	$	25,000

(1) The amounts available under the Company’s credit facility reflect any limitations related to the Subscription Credit Facility’s borrowing base as of March 31, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2025 and 2024, the weighted average interest rate of borrowings outstanding was 6.59% and 7.35%, respectively.

As of March 31, 2025, the Company had $2,500 outstanding under the Subscription Credit Facility at a weighted average interest rate of 6.63%. As of March 31, 2024, the Company did not have any amounts outstanding under the Subscription Credit Facility. The Company does not routinely use leverage, and there are many days when there are no borrowings outstanding under its Subscription Credit Facility.

Note 7. Common Stock and Share Transactions

As of March 31, 2025, the Company had 100,000 shares of common stock authorized and 56,769 shares outstanding. As of March 31, 2025, Kayne Anderson owned 517 shares of the Company.

Common Stock Issuances

The following tables summarize the number of common stock shares issued and aggregate proceeds received from such issuances related to the Company’s capital call notices pursuant to subscription agreements with investors for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025
	Offering				Aggregate
	price per		Common stock		offering
Common stock issue date	share		shares issued		amount
February 13, 2025	$	5,259		4,754	$	25,000
Total common stock issued				4,754	$	25,000

For the three months ended March 31, 2024
	Offering				Aggregate
	price per		Common stock		offering
Common stock issue date	share		shares issued		amount
February 15, 2024	$	5,308		4,710	$	25,000
Total common stock issued				4,710	$	25,000

As of March 31, 2025, the Company had subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of common stock. Of this amount, the Company had $85,535 of undrawn commitments at March 31, 2025. See Note 12 – Subsequent Events.

40

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Dividends and Dividend Reinvestment

The following tables summarize the dividends declared and payable by the Company for the three months ended March 31, 2025 and 2024, respectively. See Note 12 – Subsequent Events.

For the three months ended March 31, 2025
	Dividend	Dividend	Dividend
	record	payment	per
Dividend declaration date	date	date	share
February 19, 2025	March 31, 2025	April 15, 2025	$	132.00
Total dividends declared			$	132.00

For the three months ended March 31, 2024
	Dividend	Dividend	Dividend
	record	payment	per
Dividend declaration date	date	date	share
March 6, 2024	March 29, 2024	April 17, 2024	$	136.00
Total dividends declared			$	136.00

The following tables summarize the amounts received and shares of common stock issued to shareholders pursuant to the Company’s dividend reinvestment plan (“DRIP”) for the three months ended March 31, 2025 and 2024, respectively. See Note 12 – Subsequent Events.

For the three months ended March 31, 2025
	Dividend	DRIP
	payment	shares		DRIP
Dividend record date	date	issued		value
December 31, 2024	January 15, 2025		203	$	1,070
			203	$	1,070

For the dividend with a record date of March 31, 2025 and paid on April 15, 2025, there were 212 shares issued with a DRIP value of $1,114. These shares are excluded from the table above, as the DRIP shares were issued after March 31, 2025.

For the three months ended March 31, 2024
	Dividend	DRIP
	payment	shares		DRIP
Dividend record date	date	issued		value
December 29, 2023	January 16, 2024		883	$	4,616
			883	$	4,616

For the dividend declared on March 6, 2024 and paid on April 17, 2024, there were 1,047 shares issued with a DRIP value of $5,510. These shares are excluded from the table above, as the DRIP shares were issued after March 31, 2024.

Note 8. Commitments and Contingencies

The Company had an aggregate of $41,328 and $31,808, respectively, of unfunded commitments, including $24,464 and $19,458, respectively, of unfunded commitments on revolvers, to provide debt financing to its portfolio companies as of March 31, 2025 and December 31, 2024. These commitments are not reflected in the Company’s consolidated statements of assets and liabilities but are generally incorporated into the Company’s determination of its liquidity. Consequently, such commitments result in an element of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities.

The Company’s unfunded revolving commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the underlying senior secured loan. The Company’s unfunded delayed draw term loan commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and certain operational metrics. The commitment period for unfunded delayed draw term loan commitments may be shorter than the maturity date if drawn or funded. 

41

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

A summary of the composition of the unfunded commitments as of March 31, 2025 and December 31, 2024 is shown in the table below.

	As of		As of
	March 31, 2025		December 31, 2024
Alcami Corporation	$	507	$	507
Allcat Claims Service, LLC		1,829		1,829
Allentown, LLC		276		197
American Equipment Holdings LLC		253		338
American Soccer Company, Incorporated (SCORE)		30		223
Basel U.S. Acquisition Co., Inc. (IAC)		613		613
Bloomington Holdco, LLC (BW Fusion)		1,193		1,193
BLP Buyer, Inc. (Bishop Lifting Products)		452		544
Carton Packaging Buyer, Inc. (Century Box)		639		639
CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)		1,857		1,857
CGI Automated Manufacturing, LLC		36		132
CI (MG) Group, LLC (Mariani Premier Group)		2,376		-
City Line Distributors LLC		533		533
CMT Intermediate Holdings, LLC (Capital Machine Technologies)		756		-
CREO Group Inc. (HMS Manufacturing)		569		-
Del-Air Heating, Air Conditioning & Refrigeration, LLC		720		-
DISA Holdings Corp.		302		534
Diverzify Intermediate, LLC		811		811
ECS Opco 1, LLC (Spectrum Vascular)		630		-
Energy Acquisition LP (Electrical Components International, Inc. - ECI)		281		281
Envirotech Services, LLC		1,181		1,181
Fastener Distribution Holdings, LLC		1,418		1,418
Guardian Dentistry Practice Management, LLC		77		77
Gulf Pacific Acquisition, LLC		154		154
IF&P Foods, LLC (FreshEdge)		335		431
Improving Acquisition LLC		327		327
Krayden Holdings, Inc.		1,791		1,812
Lakewood Acquisition Corporation (R&B Wholesale)		1,593		-
Light Wave Dental Management, LLC		586		792
LSL Industries, LLC (LSL Healthcare)		448		448
MacNeill Pride Group		346		260
ML Buyer, LLC (Mama Lycha Foods, LLC)		835		879
Monza Purchaser, LLC (Smyth)		1,992		-
MRC Keystone Acquisition LLC (Automated Handing Solutions)		785		785
NMA Holdings, LLC (Neuromonitoring Associates)		1,440		1,440
OAO Acquisitions, Inc. (BearCom)		515		515
Phoenix YW Buyer, Inc. (Elida Beauty)		444		444
Pixel Intermediate, LLC		290		290
Redwood MSO, LLC (Smile Partners)		555		597
Refocus Management Services, LLC		976		1,227
RMH Systems, LLC		2,105		-
The Robinette Company		1,079		1,079
Ruff Roofers Buyer, LLC		1,825		1,608
Siegel Egg Co., LLC		6		80
Speedstar Holding LLC		111		111
Superior Intermediate LLC (Landmark Structures)		1,885		1,885
Tapco Buyer LLC		1,869		1,869
US Anchors Group, Inc. (Mechanical Plastics Corp.)		579		579
Vehicle Accessories, Inc.		-		150
Vitesse Systems Parent, LLC		104		-
Workholding US Holdings, LLC (Forkardt Hardinge)		590		716
Worldwide Produce Acquisition, LLC		424		423
Total unfunded commitments	$	41,328	$	31,808

From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of March 31, 2025 and December 31, 2024, management was not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.  

42

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

Note 9. Earnings Per Share

In accordance with the provisions of ASC Topic 260, Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of March 31, 2025 and 2024, there were no dilutive shares.

The following table sets forth the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2025 and 2024.

	For the three months ended
	March 31, 2025		March 31, 2024
Net increase (decrease) in net assets resulting from operations	$	7,121	$	6,533
Weighted average shares of common stock outstanding - basic and diluted		54,466		38,411
Earnings (loss) per share of common stock - basic and diluted	$	131	$	170

Note 10. Financial Highlights

The following per share of common stock data has been derived from information provided in the unaudited financial statements. The following is a schedule of financial highlights for the three months ended March 31, 2025 and 2024.

	For the three months ended March 31,
	(amounts in thousands, except share and per share amounts)
	2025			2024
Per Common Share Operating Performance (1)
Net Asset Value, Beginning of Period	$	5,259		$	5,229
Results of Operations:
Net Investment Income (loss)		130			148
Net Realized and Unrealized Gain (Loss) on Investments(2)		(5	)		21
Net Increase (Decrease) in Net Assets Resulting from Operations		125			169
Dividends to Common Stockholders
Dividends from Net Investment Income		(132	)		(136	)
Net Decrease in Net Assets Resulting from Dividends		(132	)		(136	)
Net Asset Value, End of Period	$	5,252		$	5,262
Shares Outstanding, End of Period		56,769			40,886
Ratio/Supplemental Data
Net assets, end of period	$	298,171		$	215,140
Weighted-average shares outstanding		54,466			38,411
Total Return(3)		2.4	%		3.2	%
Portfolio turnover		4.1	%		3.7	%
Ratio of operating expenses to average net assets(4)		1.2	%		1.3	%
Ratio of net investment income (loss) to average net assets(4)		10.0	%		11.4	%

(1) The per common share data was derived by using weighted average shares outstanding.

43

Kayne DL 2021, Inc.

Notes to Consolidated Financial Statements

(amounts in 000s, except for shares and per share data)

(Unaudited)

(2) Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period and may not be consistent or reconcile with the aggregate gains and losses in the Consolidated Statement of Operations due to the timing of share transactions during the period.

(3)	Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. The calculation also assumes reinvestment of dividends at actual prices pursuant to the Company’s dividend reinvestment plan. Total return is not annualized.
(4)	Ratio is annualized.

Note 11. Segment Reporting

The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation through debt and equity investments. The CODM is comprised of the Company’s co-chief executive officers and these CODMs assess the performance and make operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase in stockholders’ equity resulting from operations (“net income”). In addition to numerous other factors and metrics, the CODMs utilize net income as a key metric in determining the amount of dividends to be distributed to the Company’s stockholders. As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying consolidated balance sheet as “total assets” and the significant segment expenses are listed on the accompanying consolidated statement of operations.

Note 12. Subsequent Events

The Company’s management has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that require recognition or disclosure in these financial statements except as described below.

On April 15, 2025, the Company paid a dividend of $132 per share to each common stockholder of record as of March 31, 2025. The total distribution was $7,493 and $1,114 was reinvested into the Company through the issuance of 212 shares of common stock.

On April 30, 2025, the Company sold 4,760 shares of its common stock for an aggregate offering price of $25,000. The Company has existing subscription agreements with investors for an aggregate capital commitment of $353,535 to purchase shares of common stock ($60,535 is undrawn following this share issuance).

On May 1, 2025, the Board of Directors of the Company declared a dividend to common stockholders in the amount of $118 per share. The dividend of $118 per share will be paid on July 16, 2025 to stockholders of record as of the close of business on June 30, 2025, payable in cash or shares of common stock of the Company pursuant to the Company’s Dividend Reinvestment Plan, as amended.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. Except as otherwise specified, references to “we,” “us,” “our,” or the “Company” refer to Kayne DL 2021, Inc.

Investment Objective, Principal Strategy and Investment Structure

Kayne DL 2021, Inc. is a Delaware corporation formed to make investments in middle-market companies and commenced operations on December 16, 2021. We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a BDC under the 1940 Act, as amended. In addition, for U.S. federal income tax purposes, we intend to qualify, annually, as a RIC under Subchapter M of the Code.

Our investment activities are managed by KA Credit Advisors II, LLC (the “Advisor”), an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), and the Advisor operates within Kayne Anderson’s middle market private credit platform (“KAPC” or “Kayne Anderson Private Credit”). The Advisor is an investment advisor registered with the United States Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). In accordance with the Advisers Act, our Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments, and monitoring our investments and portfolio companies on an ongoing basis. The Advisor benefits from the scale and resources of Kayne Anderson and specifically KAPC.

Our investment objective is to generate current income and, to a lesser extent, capital appreciation. We intend to have nearly all of our debt investments in private middle market companies. We use “private” to refer to companies that are not traded on a securities exchange and define “middle market companies” as companies that, in general, generate between $10 million and $150 million of annual earnings before interest, taxes, depreciation and amortization, or EBITDA. Further, we refer to companies that generate between $10 million and $50 million of annual EBITDA as “core middle market companies” and companies that generate between $50 million and $150 million of annual EBITDA as “upper middle market companies.” We typically adjust EBITDA for non-recurring and/or normalizing items to assess the financial performance of our borrowers over time.

We intend to achieve our investment objective by investing primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. Under normal market conditions, we expect at least 90% of our portfolio (including investments purchased with proceeds from borrowings under credit facilities) to be invested in first lien senior secured, unitranche and split-lien loans. Our investment decisions are made on a case-by-case basis. We expect that a majority of these debt investments will be made in core middle market companies and will generally have stated maturities of three to six years. We expect that the loans in which we principally invest will be to companies that are located in the United States. We determine the location of a company as being in the United States by (i) such company being organized under the laws of one of the states in the United States; or (ii) during its most recent fiscal year, such company derived at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed in the United States or has at least 50% of its assets in the United States.

The Advisor executes on our investment objective by (1) accessing the established loan sourcing channels developed by KAPC, which includes an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2) selecting investments within our middle market company focus, (3) implementing KAPC’s underwriting process and (4) drawing upon its experience and resources and the broader Kayne Anderson network. KAPC was established in 2011 and manages (directly and through affiliates) assets under management (“AUM”) of approximately $7.3 billion related to middle market private credit as of March 31, 2025.

45

Recent Developments 

On April 15, 2025, we paid a dividend of $132 per share to each common stockholder of record as of March 31, 2025. The total distribution was $7.5 million and $1.1 million was reinvested into the Company through the issuance of 212 shares of common stock.

On April 30, 2025, we sold 4,760 shares of common stock for an aggregate offering price of $25 million. We have existing subscription agreements with investors for an aggregate capital commitment of $353.5 million to purchase shares of common stock ($60.5 million is undrawn following this share issuance).

On May 1, 2025, our Board of Directors declared a dividend to common stockholders in the amount of $118 per share. The dividend of $118 per share will be paid on July 16, 2025 to stockholders of record as of the close of business on June 30, 2025, payable in cash or shares of our common stock pursuant to our Dividend Reinvestment Plan, as amended.

Portfolio and Investment Activity

Our portfolio is currently comprised of a broad mix of loans, with diversity among investment size and industry focus. The Advisor’s team of professionals conducts due diligence on prospective investments during the underwriting process and is involved in structuring the credit terms of our private middle market investments. Once an investment has been made, our Advisor closely monitors that portfolio investment and takes a proactive approach to identify and address sector or company specific risks. The Advisor seeks to maintain a regular dialogue with portfolio company management teams (as well as their owners, the majority of whom are private equity firms, where applicable), reviews detailed operating and financial results on a regular basis (typically monthly or quarterly) and monitors current and projected liquidity needs, in addition to other portfolio management activities. There are no assurances that we will achieve our investment objectives.

As of March 31, 2025, we had investments in 79 portfolio companies with an aggregate fair value of approximately $303.1 million, and unfunded commitments to these portfolio companies of $41.3 million, and our portfolio consisted of 100% first lien senior secured loans.

As of March 31, 2025, 100% of our debt investments had floating interest rates. Our weighted average yields for debt investments at fair value and amortized cost were 10.7% and 10.9%, respectively.

As of March 31, 2025, our portfolio was invested across 21 different industries (Global Industry Classification “GICS”, Level 3 – Industry). The largest industries in our portfolio as of March 31, 2025 were Trading Companies & Distributors, Commercial Services & Supplies, Health Care Providers & Services, and Food Products, which represented, as a percentage of our portfolio of long-term investments, 19.9%, 11.3%, 10.8% and 10.5% respectively, based on fair value. We are generalist investors and the industries in which our portfolio companies operate may change over time.

As of March 31, 2025, our average position size based on commitment (at the portfolio company level) was $4.4 million.

As of March 31, 2025, the weighted average and median last twelve months (“LTM”) EBITDA of our portfolio companies were $57.0 million and $37.6 million, respectively, based on fair value¹.

As of March 31, 2025, the weighted average loan-to-enterprise-value (“LTEV”) of our debt investments at the time of our initial investment was 42.7%, based on par¹. LTEV represents the total par value of our debt investment relative to our estimate of the enterprise value of the underlying borrower.

¹ Excludes investments on watch list, which represent 1.8% of the total fair value of debt investments as of March 31, 2025.

46

As of March 31, 2025, we had one debt investment on non-accrual status, which represented 0.7% and 0.9% of total debt investments at fair value and cost, respectively.

As of March 31, 2025, our portfolio companies’ weighted average leverage ratio and weighted average interest coverage ratio (the calculation of which is based on the most recent quarter end or latest available information from the portfolio companies) was of 4.2x and 2.4x, respectively, based on fair value¹.

As of March 31, 2025, the percentage of our debt investments including at least one financial maintenance covenant was 100% based on fair value.

Our investment activity for the three months ended March 31, 2025 and 2024 is presented below (information presented herein is at par value unless otherwise indicated).

	For the three months ended March 31,
	2025 ($ in millions)			2024 ($ in millions)
New investments:
Gross new investments commitments	$	62.2		$	31.7
Less: investment commitments sold down, exited or repaid(1)		(11.0	)		(6.3	)
Net investment commitments	$	51.2		$	25.4
Principal amount of investments funded:
Private credit investments	$	53.4		$	28.1
Liquid credit investments		-			-
Total principal amount of investments funded	$	53.4		$	28.1
Principal amount of investments sold / repaid:
Private credit investments	$	(11.7	)	$	(7.0	)
Liquid credit investments		-			-
Total principal amount of investments sold or repaid	$	(11.7	)	$	(7.0	)
Number of new investment commitments		13			10
Average new investment commitment amount	$	4.8		$	3.2
Weighted average maturity for new investment commitments(2)		4.6 years			4.3 years
Percentage of new debt investment commitments at floating rates		100.0	%		100.0	%
Percentage of new debt investment commitments at fixed rates		0.0	%		0.0	%
Weighted average interest rate of new investment commitments(3)		9.8	%		11.4	%
Weighted average interest rate on investment sold or paid down(4)		10.2	%		12.6	%

(1) Does not include repayments on revolving loans, which may be redrawn.

(2) For undrawn delayed draw term loans, the maturity date used is that of the associated term loan.

(3)	Based on the rate in effect at March 31, 2025 per our Consolidated Schedule of Investments for new commitments entered into during the quarter.
(4)	Based on the underlying rate if still held at March 31, 2025.  For those investments sold or paid down in full during the year, based on the rate in effect at the time of sale or paid down.

¹ Excludes investments on watch list, which represent 1.8% of the total fair value of debt investments as of March 31, 2025.

47

Portfolio Internal Performance Ratings

In general, we employ a strategy designed to ensure early detection of potential issues at underlying borrowers, including monthly financial reviews internal tracking memoranda, weekly “watch list” discussions and other like activities. We have designed a risk rating system to aid in our portfolio management efforts where each investment is rated level 1-9, where Level 1 is the “least risky” and Level 9 is the “most risky.” This risk-rating system is quantitative in nature and aggregates criteria such as LTEV, leverage levels and fixed charge coverage ratios (“FCCR”) (each measured at point-in-time and as relates to levels at the close of the investment). 

The table below sets forth our fair value of debt investments and number of portfolio companies, including percentage of each total, that are on watch list as of March 31, 2025 and December 31, 2024.

As of March 31, 2025										As of December 31, 2024
Fair Value ($ in millions)		%			Number of Companies		%			Fair Value ($ in millions)		%			Number of Companies		%
$	5.5		1.8	%		2		2.5	%	$	5.8		2.2	%		2		2.9	%

We use Global Industry Classification Standards (GICS), Level 3 – Industry, for classifying the industry groupings of our portfolio companies. The table below describes long-term investments by industry composition based on fair value as of March 31, 2025 and December 31, 2024.

	March 31, 2025			December 31, 2024
Trading companies & distributors		19.9	%		20.9	%
Commercial services & supplies		11.3	%		13.1	%
Health care providers & services		10.8	%		12.3	%
Food products		10.5	%		12.2	%
Containers & packaging		8.2	%		7.2	%
Leisure products		5.6	%		4.2	%
Aerospace & defense		5.2	%		6.0	%
Professional services		4.9	%		4.1	%
Personal care products		4.6	%		3.0	%
Machinery		4.2	%		2.8	%
Building products		2.2	%		2.0	%
Household products		2.1	%		-	%
Automobile components		2.1	%		3.9	%
IT services		1.6	%		1.8	%
Biotechnology		1.4	%		1.7	%
Wireless telecommunication services		1.1	%		1.3	%
Health care equipment & supplies		1.0	%		0.6	%
Textiles, apparel & luxury goods		0.9	%		1.0	%
Diversified telecommunication services		0.9	%		1.0	%
Insurance		0.8	%		0.9	%
Household durables		0.7	%		-	%
		100.0	%		100.0	%

Results of Operations

For the three months ended March 31, 2025 and 2024, our total investment income was derived from our portfolio of investments.

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The following table represents the operating results for the three months ended March 31, 2025 and 2024.

	For the three months ended March 31,
	2025			2024
	($ in millions)			($ in millions)
Total investment income	$	7.93		$	6.34
Less: Net expenses		(0.86	)		(0.64	)
Net investment income		7.07			5.70
Net realized gains (losses) on investments		-			-
Net change in unrealized gains (losses) on investments		0.05			0.83
Net increase (decrease) in net assets resulting from operations	$	7.12		$	6.53

Investment Income

Investment income for the three months ended March 31, 2025 and 2024 totaled $7.9 million and $6.3 million, respectively, and consisted primarily of interest income on our debt investments. For the three months ended March 31, 2025 and 2024, we had $0.04 million and $0.01 million, respectively, of PIK interest included in interest income. As of March 31, 2025, we had one debt investment on non-accrual status. As of March 31, 2024, all debt investments were income producing, and there were no loans on non-accrual status.

Expenses

Operating expenses for the three months ended March 31, 2025 and 2024 were as follows:

	For the three months ended March 31,
	2025		2024
	($ in millions)		($ in millions)
Interest and debt financing expenses	$	0.05	$	0.05
Management fees		0.52		0.35
Other operating expenses		0.25		0.20
Deferred offering costs		-		-
Directors fees		0.04		0.04
Total expenses	$	0.86	$	0.64

Net Unrealized Gains (Losses) on Investments

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. During the three months ended March 31, 2025 and 2024, net unrealized gains (losses) on our investment portfolio were comprised of the following:

	For the three months ended March 31,
	2025			2024
	($ in millions)			($ in millions)
Unrealized gains on investments	$	1.24		$	1.13
Unrealized (losses) on investments		(1.19	)		(0.30	)
Net change in unrealized gains (losses) on investments	$	0.05		$	0.83

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For these three-month periods ended March 31, 2025 and 2024, the top five largest contributors to the change in unrealized gains and the top five largest contributors to the change in unrealized losses on investments, and the remaining unrealized gains and losses from other portfolio companies, are presented in the following tables.

	For the three months ended
	March 31, 2025
	($ in millions)
Portfolio Company
Lakewood Acquisition Corporation (R&B Wholesale)	$	0.14
CREO Group Inc. (HMS Manufacturing)		0.14
Olibre Borrower LLC (Revelyst)		0.12
Monza Purchaser, LLC (Smyth)		0.09
CMT Intermediate Holdings (Capital Machine Technologies)		0.08
Other portfolio companies unrealized gains		0.67
Other portfolio companies unrealized (losses)		(0.59	)
Alcami Corporation		(0.05	)
Worldwide Produce Acquisition, LLC		(0.06	)
Centerline Communications, LLC		(0.07	)
Innopak Industries, Inc.		(0.09	)
Siegel Egg Co., LLC		(0.33	)
Total Unrealized Appreciation (Depreciation), net	$	0.05

	For the three months ended
	March 31, 2024
	($ in millions)
Portfolio Company
Envirotech Services, LLC	$	0.15
Refocus Management Services, LLC		0.13
Pixel Intermediate, LLC		0.13
MVP VIP Borrower, LLC		0.10
CCFF Buyer, LLC (California Custom Fruits & Flavors, LLC)		0.09
Other portfolio companies unrealized gains		0.53
Other portfolio companies unrealized (losses)		(0.13	)
American Soccer Company, Incorporated (SCORE)		(0.02	)
FCA, LLC (FCA Packaging)		(0.02	)
VENUplus, Inc. (f/k/a CTM Group, Inc.)		(0.02	)
Siegel Egg Co., LLC		(0.02	)
Universal Marine Medical Supply International, LLC (Unimed)		(0.09	)
Total Unrealized Appreciation (Depreciation), net	$	0.83

Financial Condition, Liquidity and Capital Resources

Our liquidity and capital resources are generated primarily from the net proceeds of any offering of our shares of common stock and from cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. Our primary use of cash is for investments in portfolio companies, payments of our expenses and payment of cash distributions to our stockholders.

In accordance with the 1940 Act, we are required to meet a coverage ratio of total assets (less total liabilities other than indebtedness) to total borrowings and other senior securities (and any preferred stock that we may issue in the future) of at least 150%. If this ratio declines below 150%, we cannot incur additional leverage and could be required to sell a portion of our investments to repay some leverage when it is disadvantageous to do so. As of March 31, 2025, our asset coverage ratio was not meaningful, as we only had $2.5 million borrowed under our subscription credit facility. As of December 31, 2024, we did not have any borrowings outstanding under our subscription credit facility. We do not routinely use leverage, and there are many days when there are no borrowings outstanding under our subscription credit facility.

Over the next twelve months, we expect that cash and cash equivalents, taken together with our available capacity under our credit facilities, will be sufficient to conduct anticipated investment activities. Beyond twelve months, we expect that our cash and liquidity needs will continue to be met by cash generated from our ongoing operations as well as financing activities.

As of March 31, 2025, we had $2.5 million borrowed under our subscription credit facility and had cash and cash equivalents of $3.4 million (including investments in money market funds). We do not routinely use leverage, and there are many days when there are no borrowings outstanding under our subscription credit facility. As of May 7, 2025, we did not have any borrowings outstanding under our subscription credit facility and had cash and cash equivalents of $16.7 million (including investments in money market funds).

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Capital Contributions

During the three months ended March 31, 2025 and 2024, we issued and sold 4,754 and 4,710 shares of our common stock related to capital called at an aggregate purchase price of $25 million and $25 million, respectively. As of May 7, 2025, we had aggregate capital commitments of $353.5 million and undrawn capital commitments from investors of $60.5 million ($293 million or 82.9% funded).

Credit Facility

Subscription Credit Facility. We are party to a senior secured revolving credit facility (the “Subscription Credit Facility”) that has a total commitment of $25 million and a maturity date of February 20, 2026.  The Subscription Credit Facility permits us to borrow up to $25 million, subject to availability under the borrowing base which is calculated based on the unused capital commitments of the investors meeting various eligibility requirements. The interest rate on the Subscription Credit Facility is equal to SOFR plus an applicable spread of 2.25% per annum with no floor. We are also required to pay a commitment fee of 0.25% per annum on any unused portion of the Subscription Credit Facility.

Contractual Obligations

A summary of our significant contractual principal payment obligations related to the repayment of our outstanding indebtedness at March 31, 2025 is as follows:

	Payments Due by Period ($ in millions)
	Total		Less than 1 year		1-3 years		3-5 years		After 5 years
Subscription Credit Facility	$	2.5	$	2.5	$	-	$	-	$	-
Total contractual obligations	$	2.5	$	2.5	$	-	$	-	$	-

Off-Balance Sheet Arrangements

As of March 31, 2025 and December 31, 2024, we had an aggregate $41.3 million and $31.8 million, respectively, of unfunded commitments, including $24.5 million and $19.5 million, respectively, of unfunded commitments on revolvers, to provide debt financing to our portfolio companies. Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in our financial statements. Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any other off-balance sheet financings or liabilities.

Critical Accounting Estimates

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in conjunction with our risk factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in this Quarterly Report. See Note 2 to our consolidated financial statements for the three months ended March 31, 2025, for more information on our critical accounting policies.

Investment Valuation

Traded Investments (Level 1 or Level 2)

Investments for which market quotations are readily available will typically be valued at those market quotations. Traded investments such as corporate bonds, preferred stock, bank notes, loans or loan participations are valued by using the bid price provided by an independent pricing service, by an independent broker, the agent bank, syndicate bank or principal market maker. When price quotes for investments are not available, or such prices are stale or do not represent fair value in the judgment of our Advisor, fair market value will be determined using our Advisor’s valuation process for investments that are privately issued or otherwise restricted as to resale.

Infrequently, we may also invest, to a lesser extent, in equity securities purchased in conjunction with debt investments. While we anticipate these equity securities to be issued by privately held companies, we may hold equity securities that are publicly traded. Equity securities listed on any exchange other than the NASDAQ Stock Market, Inc. (“NASDAQ”) are valued, except as indicated below, at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities admitted to trade on the NASDAQ are valued at the NASDAQ official closing price. Equity securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the NASDAQ, are valued at the closing bid prices.

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Non-Traded Investments (Level 3)

Investments that are privately issued or otherwise restricted as to resale, as well as any security for which (a) reliable market quotations are not available in the judgment of our Advisor, or (b) the independent pricing service or independent broker does not provide prices or provides a price that in the judgment of our Advisor is stale or does not represent fair value, shall each be valued in a manner that most fairly reflects fair value of the security on the valuation date. We expect that a significant majority of our investments will be Level 3 investments. Unless otherwise determined by the Advisor, the following valuation process is used for our Level 3 investments:

● Valuation Designee. The applicable investments will be valued no less frequently than quarterly by the Advisor, with new investments valued at the time such investment was made. The value of each Level 3 investment will be initially reviewed by the persons responsible for such portfolio company or investment. The Advisor will use a standardized template designed to approximate fair market value based on observable market inputs, updated credit statistics and unobservable inputs to determine a preliminary value. The Advisor will specify the titles of the persons responsible for determining the fair value of Company investments, including by specifying the particular functions for which they are responsible, and will reasonably segregate fair value determinations from the portfolio management of the Company such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.

● Valuation Firm. Quarterly, a third-party valuation firm engaged by the Advisor reviews the valuation methodologies and calculations employed for each of the Company’s investments that the Advisor has placed on the “watch list” and approximately 25% of the Company’s remaining investments. The third-party valuation firm will review and independently value all of the Level 3 investments at least once per year, on a rolling twelve-month basis. The quarterly report issued by the third-party valuation firm will provide positive assurance on the fair values of the investments reviewed.

● Oversight. The Board has appointed the Advisor as the valuation designee for the Company for purposes of making determinations of fair value as permitted by Rule 2a-5 under the 1940 Act. The Audit Committee shall aid the Board in overseeing the Advisor’s fair valuation of securities that are not publicly traded or for which current market values are not readily available. The Audit Committee shall meet quarterly to review the fair value determinations, processes and written reports of the Advisor as part of the Board’s oversight responsibilities.

Refer to Note 5 – Fair Value – for more information on the Company’s valuation process.

Revenue Recognition

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, which represents contractual interest accrued and added to the principal balance, we generally will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities for accounting purposes if we have reason to doubt our ability to collect such interest. Original Issue Discounts (OIDs), market discounts or premiums are accreted or amortized using the effective interest method as interest income. We record prepayment premiums on loans and debt securities as interest income.

Related Party Transactions

Investment Advisory Agreement. On December 16, 2021, we entered into the Investment Advisory Agreement with our Advisor. On February 19, 2025, the Board approved an additional one-year term of the Investment Advisory Agreement through March 15, 2026. Our Advisor serves as our investment advisor in accordance with the terms of our Investment Advisory Agreement. Payments under our Investment Advisory Agreement in each reporting period consist of a management fee equal to a percentage of the fair market value of investments, including, in each case, assets purchased with borrowings under credit facilities, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase.

For services rendered under the Investment Advisory Agreement, we pay a management fee quarterly in arrears to our Advisor based on the of the fair market value of our investments including, in each case, assets purchased with borrowings under credit facilities, but excluding cash, U.S. government securities and commercial paper instruments maturing within one year of purchase.

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Administration Agreement. On December 16, 2021, we entered into an Administration Agreement with our Advisor, which serves as our Administrator, pursuant to which the Administrator furnishes us with administrative services necessary to conduct our day-to-day operations. On February 19, 2025, the Board approved an additional one-year term of the Administration Agreement through March 15, 2026.

The Administrator is reimbursed for administrative expenses it incurs on our behalf in performing its obligations. As we reimburse the Administrator for its expenses, we indirectly bear such cost. The Administrator engaged Ultimus Fund Solutions, LLC under a sub-administration agreement to assist the Administrator in performing certain of its administrative duties. The Administrator may enter into additional sub-administration agreements with third-parties to perform other administrative and professional services on behalf of the Administrator.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are subject to financial market risks, including valuation risk and changes in interest rates.

Valuation Risk. The majority of our investments are in instruments that do not have readily ascertainable market prices and the Adviser, as our valuation designee, will value these securities at fair value as determined in good faith under procedures approved by our Board of Directors. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material.

Interest Rate Risk. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Assuming that the consolidated statement of assets and liabilities as of March 31, 2025 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact ($ in millions) of hypothetical base rate changes in interest rate (considering interest rate floors for floating rate instruments).

Change in Interest Rates	Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income
Down 200 basis points	$	(6.0	)	$	(0.1	)	$	(5.9	)
Down 100 basis points	$	(3.0	)	$	(0.0	)	$	(3.0	)
Up 100 basis points	$	3.0		$	0.0		$	3.0
Up 200 basis points	$	6.0		$	0.1		$	5.9

The data in the table is based on the Company’s current statement of assets and liabilities.

We may hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of March 31, 2025 (the end of the period covered by this report), we, including our Co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended). Based on that evaluation, our management, including the Co-Chief Executive Officers and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic United States Securities and Exchange Commission (the “SEC”) filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

Neither we nor our Advisor is currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us, or against our Advisor.

From time to time, we, or our Advisor, may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

From time to time, we are involved in various legal proceedings, lawsuits and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the risk factors described below and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, on our performance.

There have been recent proposed changes to United States trade policies, treaties and tariffs, and, in the future, there may be additional significant changes. These and any future developments, and continued uncertainty surrounding trade policies, treaties and tariffs, may have a material adverse effect on global economic conditions, inflation and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers, increase their supply-chain costs and expenses.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

As set forth in the table below (dollars in thousands, except per share and share amounts), during the three months ended March 31, 2025, we issued and sold 4,754 shares of common stock at an aggregate offering amount of approximately $25 million. The issuance of the shares of common stock was exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) and Rule 506(b) of Regulation D thereof and previously reported by us on our current reports on Form 8-K. The Company relied, in part, upon representations from the investors in the subscription agreements that each investor was an accredited investor as defined in Regulation D under the Securities Act. We did not engage in general solicitation or advertising, and did not offer securities to the public, in connection with such issuances and sales.

Common stock issue date	Offering price per share		Common stock shares issued		Aggregate offering amount
February 13, 2025	$	5,259		4,754	$	25,000

Item 3. Default Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

The exhibits required by this item are set forth in the Exhibit Index attached hereto and are filed or incorporated as part of this Report.

Exhibit Index
3.1	Certificate of Incorporation (1)
3.2	Amended and Restated Bylaws (2)
10.1	Investment Advisory Agreement (1)
10.2	Amendment to Investment Advisory Agreement (4)
10.3	Administration Agreement (1)
10.4	License Agreement (1)
10.5	Indemnification Agreement (1)
10.6	Custody Agreement (1)
10.7	Subscription Agreement (1)
10.8	Subscription Credit Agreement (3)
10.9	Second Amendment to Subscription Credit Agreement (5)
10.10	Third Amendment to Subscription Credit Agreement (6)
31.1*	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

(1) Incorporated by reference from the Company’s Amendment No. 1 to Form 10, as filed with the Securities and Exchange Commission on May 11, 2021.

(2) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on August 15, 2022.

(3) Incorporated by reference from the Company’s Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on March 3, 2022.

(4) Incorporated by reference from the Company’s Form 10-K, as filed with the Securities and Exchange Commission on March 13, 2023.

(5) Incorporated by reference from the Company’s Form 8-K, as filed with the Securities and Exchange Commission on February 28, 2024.

(6) Incorporated by reference from the Company’s Form 8-K, as filed with the Securities and Exchange Commission on February 24, 2025.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Kayne DL 2021, Inc.
Date: May 12, 2025
		/s/ Douglas L. Goodwillie
	Name:	Douglas L. Goodwillie
	Title:	Co-Chief Executive Officer
		(Co-Principal Executive Officer)
Date: May 12, 2025
		/s/ Kenneth B. Leonard
	Name:	Kenneth B. Leonard
	Title:	Co-Chief Executive Officer
		(Co-Principal Executive Officer)
Date: May 12, 2025
		/s/ Terry A. Hart
	Name:	Terry A. Hart
	Title:	Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)

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