The Charlotte-based BDC saw net assets decline modestly as realized and unrealized losses offset steady investment income throughout the fiscal year.

March 26, 2026

Steele Creek Capital Corporation, a Charlotte-based business development company focused on syndicated corporate loans and structured credit products, released its annual report for the fiscal year ended December 31, 2025, disclosing a portfolio valued at approximately $115.3 million across 222 investments and reporting a net decrease in assets from operations of roughly $943,000.

The results mark a notable shift from 2024, when the company posted a net increase in assets from operations of approximately $2.8 million, and a sharper contrast with 2023, when it generated a $9.8 million gain. The decline was driven primarily by realized losses of approximately $2.2 million and unrealized depreciation of roughly $1.9 million, which together outweighed the $3.1 million in net investment income earned during the year.

The company’s net asset value per share fell to $8.65 at year-end 2025, down from $9.40 a year earlier. Total net assets stood at approximately $53.4 million, compared with $54.7 million at the close of 2024. As of March 25, 2026, the company had 6,026,867 shares of common stock outstanding and 206 holders of record.

Company Overview

Steele Creek is externally managed by Steele Creek Investment Management LLC, an indirect subsidiary of Moelis Asset Management LP. The company operates as a regulated investment company for tax purposes and is structured as a non-diversified, closed-end management investment company regulated as a BDC under the Investment Company Act of 1940. Its shares are not publicly traded.

Income and Expenses

Investment income for 2025 totaled approximately $9.7 million, a significant decrease from $13.1 million in 2024 and $13.9 million in 2023. The decline reflected lower interest income driven by falling base rates and reduced portfolio size. The average yield on investments dropped to 7.28 percent from 8.09 percent the prior year.

Total expenses before fee waivers came in at approximately $7.2 million, down from $9.4 million in 2024. Interest and debt financing costs accounted for the largest expense category at roughly $4.3 million. The Investment Advisor waived approximately $610,000 in management fees during the year to support the company’s targeted 6 percent annual distribution to shareholders. Net expenses after waivers totaled approximately $6.6 million.

Portfolio Composition and Activity

The portfolio was diversified across 28 industries and nine countries, with average individual investment exposure of approximately $519,000, or 0.5 percent of the total. Business services, banking and financial services, and healthcare and pharmaceuticals were the three largest industry concentrations, representing 14.4 percent, 13.2 percent, and 10.0 percent of portfolio fair value, respectively. All term loan investments carried floating interest rates, predominantly benchmarked to SOFR.

Portfolio turnover moderated significantly, with a ratio of 75.5 percent compared with 197.5 percent in 2024. The company invested approximately $88.5 million and received roughly $91.2 million from sales and repayments during the year.

Financing and Capital Activity

Steele Creek transitioned its credit facility during 2024 from BNP Paribas to Bank of America. The BNP facility was fully repaid in October 2024, and the associated subsidiary, Funding I, was wound down by September 2025. The Bank of America facility provides up to $80 million, matures in October 2027, and bears interest at Term SOFR plus 1.50 percent. As of year-end, approximately $71.6 million was drawn with $8.4 million available, and the company maintained an asset coverage ratio of 174.6 percent — above the 150 percent regulatory minimum.

During 2025, the company issued 538,439 new shares for aggregate proceeds of approximately $4.9 million and repurchased 178,325 shares for roughly $1.6 million through its quarterly share repurchase program. Its dividend reinvestment plan resulted in 208,088 shares being reinvested. The company distributed approximately $3.6 million to shareholders, of which roughly $77,000 was classified as a return of capital — the first such component in the periods reported.

In early March 2026, the company also completed a smaller $50,000 private stock sale, with final share pricing still pending at the time of that announcement.

Market Conditions and Outlook

The company noted that fourth-quarter 2025 loan market conditions were characterized by selectivity amid renewed tariff threats and disruption in the auto sector. High-quality issuers continued to transact with ease, while debut and underperforming credits faced headwinds. New issue loan volume was heavily dominated by repricing activity, and net inflows remained strong relative to new issuance.

In subsequent events, the company accepted approximately 211,165 shares in a December 2025 tender offer and completed two additional small private stock sales in early 2026 raising a combined $120,000. As of March 25, 2026, the Investment Advisor had received requests to tender approximately 189,812 additional shares.

Grant Thornton LLP served as the company’s independent auditor and issued a clean opinion on the financial statements. Glenn Duffy serves as Chief Executive Officer and Chief Investment Officer, while Douglas Applegate Jr. serves as Chief Financial Officer.