Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — Investor Presentation (December 2025)
55 slides from Sixth Street Specialty Lending's investor presentation, December 2025
Slide 1: Sixth Street Specialty Lending Equity Investor Presentation December 2025
SIXTH STREET SPECIALTY LENDING SIXTH STREET SPECIALTY LENDING, INC Equity Investor Presentation December 2025
Slide 2: Disclaimer and Forward-Looking Statement
DISCLAIMER AND FORWARD-LOOKING STATEMENT General Disclaimer The information contained in this presentation (the ʺPresentationʺ) is preliminary, may not be complete and may be changed. By acceptance hereof, you agree that the information contained herein may not be used, reproduced or distributed to
Slide 3: Agenda: Overview & Organization
AGENDA 1. Overview & Organization 3 SIXTH STREET SPECIALTY LENDING
Slide 4: Overview
14.71 0.00 $14.71 Q4'11 14.88 0.06 $14.94 14.92 0.22 $15.14 15.12 0.54 $15.66 15.19 0.90 $16.09 Q4'12 15.27 1.23 $16.50 15.29 1.61 $16.90 OVERVIEW 15.35 2.01 $17.36 15.52 2.39 $17.91 Q4'13 15.51 2.79 $18.30 15.70 3.17 $18.87 15.66 3.55 $19.21 15.53 3.93 $19.46 Q4'14 15.60 4.32 $19.92 15.84 4.71 $20.
Slide 5: The Sixth Street Platform
THE SIXTH STREET PLATFORM 1 Overview & Organization TAO: Sixth Street Highly Flexible, Thematically Focused, Cross-Platform Investing Vehicle Sports & Live Fundamental Direct Asset Based Credit Market Real Estate Opportunities Growth Entertainment Strategies Lending Finance Strategies US Middle Mark
Slide 6: Sixth Street Investing Architecture
SIXTH STREET INVESTING ARCHITECTURE 1 Overview & Organization Fundamental US & European Healthcare & Growth Energy Opportunistic Insurance Real Estate Strategies Direct Lending Life Sciences Software & Sports, Media & Credit Market Financial & Asset Based Consumer & Digital Infrastructure & Business
Slide 7: Flexible Capital: Sixth Street Platform Reach
FLEXIBLE CAPITAL: SIXTH STREET PLATFORM REACH 1 Overview & Organization Opportunities Growth Adjacencies Reward Fundamental Infrastructure Strategies ABF Direct Lending Insurance Real Estate Credit Market Strategies Yielding Agriculture Risk Note: For illustrative purposes only. FLEXIBLE CAPITAL TO
Slide 8: SLX Senior Leadership
SLX SENIOR LEADERSHIP 1 Overview & Organization JOSHUA EASTERLY BO STANLEY MIKE GRIFFIN Chairman and Co-CEO Partner Co-CEO of SLX & SSLP of SLX & SSLP Co-Head of Direct Lending Partner Co‐Founding Partner, Co‐President 14 years at Sixth Street and Co-CIO of Sixth Street Co-Head of Direct Lending 16
Slide 9: Differentiated Solutions Provider
DIFFERENTIATED SOLUTIONS PROVIDER 1 Overview & Organization Our Competitive Advantages Our Track Record Highlights Part of a $115+ billion1 Sixth Street Approximately $51.8 billion of platform with proprietary deal flow investments originated with a realized and significant resources including avera
Slide 10: BDC Sector Themes
BDC SECTOR THEMES CENTRAL THEMES Idiosyncratic Capital Raising Dividend Access to Capital Dispersion in Credit and Deployment Coverage Markets ROE Headwinds EMERGING THEMES Improving portfolio Imbalance in supply and Shrinking portfolio yields Credit stabilizing company interest Portfolio turnover d
Slide 11: Agenda: Track Record
AGENDA 2. Track Record 11 SIXTH STREET SPECIALTY LENDING
Slide 12: Track Record of Strong Performance
TRACK RECORD OF STRONG PERFORMANCE 2 Track Record RETURN ON EQUITY 2 (NI) OPERATING RETURN ON EQUITY 2 (NII) TSLX BDC Peers (Mean) BDC Peers Top Quartile¹ TSLX BDC Peers (Mean) BDC Peers Top Quartile¹ LTM Since TSLX IPO LTM Since TSLX IPO outperformance 13.4% 13.3% 13.5% 11.7% 10.9% 10.9% 9.3% 10.3%
Slide 13: Industry vs TSLX Unit Economics
INDUSTRY VS TSLX UNIT ECONOMICS 2 Track Record Unit Economics (Since TSLX IPO) BDC Peers TSLX Return on Assets: All-in Yield (on Assets) 10.2% 13.4% Higher return on assets Cost of Funds2 (5.7%) (5.8%) Debt/Equity 0.96x 0.89x Net Interest Income Return (on Equity)1 14.5% 20.1% Management Fees3 (3.0%
Slide 14: TSLX Annual Returns Since IPO
TSLX ANNUAL RETURNS SINCE IPO 2 Track Record ROE on Adj. Net Income Economic Return 19.7% 19.1% 15.4% 15.9% 16.2% 15.5% 14.7% 15.5% 16.1% 14.5% 11.9% 13.0% 10.8% 12.1% 11.6% 11.7% 11.6% 11.3% 10.0% 7.6% 7.6% 7.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Income / Share $1.68 $1.18 $
Slide 15: Returns vs Industry
RETURNS VS INDUSTRY 2 Track Record Since TSLX IPO Total Return Since TSLX IPO Total Return Since TSLX IPO Out/(Under)performance ~3.9x ~1.1x ~4.8x ~5.0x 370.7% 339.5% 94.2% 77.3% 73.7% TSLX TSLX BDC Peers S&P 500 High Yield Leveraged Loans Historical Total Returns LTM 3-Year 5-Year Since TSLX IPO To
Slide 16: 3-Year Cumulative Change in NAV per Share
3-YEAR CUMULATIVE CHANGE IN NAV PER SHARE 2 Track Record Q3’22 – Q3’25 15.0% 7.7% 5.4% 4.8% 5.0% 3.0% 2.5% 2.0% 2.0% 1.7% 0.8% 0.6% 0.3% -0.9% -1.6% -5.0% -2.3% Median: -3.8% -3.7%-3.8% -4.0% -4.4% -4.7% -5.1% -8.0% -8.6%-8.6% -9.4%-10.2% -15.0% -13.1% -15.1% -18.3% -25.0% -23.8% -35.0% -35.6% -38.4
Slide 17: Agenda: Capital Allocation & Dividend Policy
AGENDA 3. Capital Allocation & Dividend Policy 17 SIXTH STREET SPECIALTY LENDING
Slide 18: Access to Equity Markets
ACCESS TO EQUITY MARKETS 3 Capital Allocation & Dividend Policy Price-to-Book 1.60x TSLX BDC Peers TSLX Average: 1.20x 1.40x 1.20x 1.00x 0.80x BDC Peers Average: 0.91x 0.60x 0.40x 0.20x Mar '14 Mar '15 Feb '16 Feb '17 Jan '18 Jan '19 Dec '19 Dec '20 Nov '21 Nov '22 Oct '23 Oct '24 Sep '25 Canceled u
Slide 19: Dividend Level Considerations
DIVIDEND LEVEL CONSIDERATIONS 3 Capital Allocation & Dividend Policy “In the short term, we expect to see dividend cuts across the industry as net investment income falls below dividend levels. For SLX, we continued to over earn our base dividend with 114% coverage in Q3, allowing us to pay another
Slide 20: SLX Historical Dividend Coverage
SLX HISTORICAL DIVIDEND COVERAGE 3 Capital Allocation & Dividend Policy 48 1.00 Sequential Quarters 0.90 of Stable or Increasing 0.80 per Base Dividends Share 0.70 $0.63 $0.64 $0.60 $0.62 $0.61 $0.59 $0.58 $0.58 $0.58 0.60 $0.57 $0.56 $0.55 $0.55 $0.53 $0.49 0.50 $0.47 $0.09 $0.08 $0.06 $0.07 $0.06
Slide 21: Dividend Level Considerations
DIVIDEND LEVEL CONSIDERATIONS 3 Capital Allocation & Dividend Policy Variable Supplemental Dividend Framework 1 50% Over-Earning (NII per share less base dividend per share) Variable Supplemental Dividend NAV Constraint Test (no more than $0.15 per share decline in NAV over current and 2 preceding q
Slide 22: Book Value per Share and Dividends Paid per Share
Q4'11 $14.71 $0.00 $14.71 Q1'12 $14.88 $0.06 $14.94 Q2'12 $14.92 $0.22 $15.14 Q3'12 $15.12 $0.54 $15.66 Q4'12 $15.19 $0.90 $16.09 $15.27 $1.23 $16.50 Note: As of 9/30/2025. Q1'13 Q2'13 $15.29 $1.61 $16.90 Q3'13 $15.35 $2.01 $17.36 Q4'13 $15.52 $2.39 $17.91 Q1'14 $15.51 $2.79 $18.30 Q2'14 $15.70 $3.1
Slide 23: Agenda: Principles and Investment Strategy
AGENDA 4. Principles and Investment Strategy 23 SIXTH STREET SPECIALTY LENDING
Slide 24: Differentiated Platform Expertise
DIFFERENTIATED PLATFORM EXPERTISE 4 Principles and Investment Strategy DIFFERENTIATED MAINTAIN A LOW PLATFORM DISCIPLINED SECTOR FOCUSED RISK VOLATILITY EXPERTISE AND APPROACH MANAGEMENT PORTFOLIO CAPABILITIES • Source away from Wall • Late cycle-minded sector • Cover the downside • Avoid risks that
Slide 25: Sourcing and Underwriting Overview
SOURCING AND UNDERWRITING OVERVIEW 4 Principles and Investment Strategy Sourcing Underwriting Asset Management Process: Process: Process: • Credit originators / team • Quick Look memo • Performing Loans – Monthly review of operating performance • Weekly pipeline conference calls • Prepare Investment
Slide 26: Differentiated Platform Expertise and Capabilities
DIFFERENTIATED PLATFORM EXPERTISE AND CAPABILITIES 4 Principles and Investment Strategy Sourcing Voting Control TSLX Portfolio Construction Intermediary/ Market Relationship No Voting >1% Control 22% $20-105 Predominantly, million floating rate, first position size lien / senior secured US and Targe
Slide 27: Net Interest Margin Analysis
NET INTEREST MARGIN ANALYSIS 4 Principles and Investment Strategy Weighted Average Total Yield on Debt and Income Producing Securities at Amortized Cost Weighted Average Interest Rate of Debt and Income Producing Securities at Fair Value Weighted Average Spread Over Reference Rate of All Floating Ra
Slide 28: Disciplined Sector Approach
DISCIPLINED SECTOR APPROACH 4 Principles and Investment Strategy GOOD BUSINESSES WITH CHALLENGED BUSINESS GOOD BUSINESSES WITH 1 2 3 GOOD CAPITAL STRUCTURE MODELS WITH GOOD ASSETS CHALLENGING CAPITAL STRUCTURE Note: Reflects current and fully realized investments; selected to represent a variety of
Slide 29: Low Cyclical Exposure
Q1'13 626 31% 31% Q2'13 787 25% 25% Q3'13 22% 889 26% Q4'13 22% 1,016 26% Q1'14 19% 1,196 28% Q2'14 20% 1,129 24% Q3'14 18% 28% 1,233 Q4'14 12% 20% 1,264 $ Millions by Fair Value Q1'15 10% 18% 1,331 Q2'15 8% 17% 1,398 Investments at Fair Value Q3'15 7% 16% 1,396 Q4'15 7% 10% 1,486 Q1'16 7% 9% 1,564
Slide 30: Diversification Across Borrowers & Industries
DIVERSIFICATION ACROSS BORROWERS & INDUSTRIES 4 Principles and Investment Strategy Top 10 Borrower Diversification Industry Diversification Bcto Ace Purchaser Inc ExtraHop Networks, Inc. Internet Services Business Services EDB Parent, LLC Galileo Parent, Inc. Retail and consumer products Human Resou
Slide 31: Portfolio Diversification Across Borrowers
Q1'13 626 70% Q2'13 787 61% Q3'13 889 57% Q4'13 1,016 54% Q1'14 1,196 50% Q2'14 1,129 50% Q3'14 1,233 49% Q4'14 1,264 48% $ Millions by Fair Value Q1'15 1,331 47% Q2'15 44% 1,398 Q3'15 43% 1,396 Q4'15 41% 1,486 Q1'16 39% 1,564 Q2'16 38% 1,611 Q3'16 36% 1,644 Q4'16 36% 1,657 Q1'17 38% 1,580 Q2'17 40%
Slide 32: Asset Vintage Diversity
ASSET VINTAGE DIVERSITY 4 Principles and Investment Strategy Fair Value by Vintage Debt Investments by Maturity $ Millions by Fair Value $ Millions by Fair Value 23% 27% $733 $848 20% $636 20% 16% 16% $629 15% $511 17% $503 $470 15% 15% $538 $488 $470 7% $213 4% 3% $135 2% 2% $86 $70 $71 0% 0% 0% 0%
Slide 33: High Quality Portfolio
HIGH QUALITY PORTFOLIO 5 4 Principles and Investment Strategy SLX Weighted Average Portfolio Performance Rating SLX % of Investments on Non-Accrual By Fair Value % of Portfolio Rated 1 or 2 By Fair Value By Amortized Cost 97% 98% 97% 98% 99% 3.9% 3.7% 3.7% 2.1% 2.0% 1.9% 1.14 1.10 1.11 1.10 1.12 1.4
Slide 34: Agenda: Sector Observations
AGENDA 5. Sector Observations 34 SIXTH STREET SPECIALTY LENDING
Slide 35: Illustrative Interest Coverage Throughout Cycles
ILLUSTRATIVE INTEREST COVERAGE THROUGHOUT CYCLES 5 Sector Observations Illustrative Interest Coverage Illustrative Interest Coverage Debt to Equity Debt to Equity 303.04% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 303.04% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 10.0% 2.52x 2.50x 2.48x 2.46x 2.45x 2.40x 5.50% 4
Slide 36: Illustrative Interest Coverage Throughout Cycles
ILLUSTRATIVE INTEREST COVERAGE THROUGHOUT CYCLES 5 Sector Observations Illustrative Interest Coverage Illustrative Interest Coverage Debt to Equity Debt to Equity 303.04% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 303.04% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 10.0% 2.52x 2.50x 2.48x 2.46x 2.45x 2.40x 5.50% 4
Slide 37: BDC Sector Price-to-Book
BDC SECTOR PRICE-TO-BOOK 5 Sector Observations Price-to-Book vs. ROE on Net Income (Since TSLX IPO) Average Price-to-Book1 1.3x Annualized ROE (on NI): • TSLX: 13.4% • BDC Peers Mean: 7.7% 1.2x TSLX • BDC Peers Median: 6.7% BDC 11 1.1x BDC 6 BDC 20 1.0x BDC 26BDC 8 BDC 1 BDC 9 BDC 22 BDC 12 BDC 28 B
Slide 38: Agenda: Appendix
AGENDA 6. Appendix 38 SIXTH STREET SPECIALTY LENDING
Slide 39: Strong Liquidity and Funding Profile
STRONG LIQUIDITY AND FUNDING PROFILE CAPITAL & LIQUIDITY ROBUST BALANCE SHEET LIQUIDITY VS. NEAR-TERM OBLIGATIONS ($ in Millions) As of September 30, 2025 / $ Millions Near-term Obligations $63 Cash $1,110 Total Liquidity: $ 1,047 Undrawn Revolver $1.1BN1,2 Capacity1 $174 $609 Secured Revolver Liqui
Slide 40: Liquidity Management
LIQUIDITY MANAGEMENT CASH AND CASH EQUIVALENTS Unrestricted Cash Totaled $63.0 Million as of September 30, 2025. Restricted Cash Related to Interest Rate Swaps Totaled $20.1 Million 1 Revolving Credit Facility Unsecured Notes $1.675 Billion Committed; Uncommitted Accordion Size: $300 Million $300 Mi
Slide 41: A Disciplined Approach to Liquidity & Capital Management
A DISCIPLINED APPROACH TO LIQUIDITY & CAPITAL MANAGEMENT ($ in Millions) Revolving Credit Facility Renewal Unsecured Bonds Issued Convertible Notes Issued Equity Issued DRIP Equity $36 $25 1.60x $90 $94 $13 $21 1.40x $130 $300 $350 $300 $22 $78 1.20x $10 $300 $16 $10 $300 $50 1.00x P / NAV $75 $9 $2
Slide 42: TSLX Valuation Process: Internal, External & Board Level Review
TSLX VALUATION PROCESS: INTERNAL, EXTERNAL & BOARD LEVEL REVIEW 25+ people 15+ people 100+ people 100+ people 100+ people 9 people Complete Initial Preliminary Final Valuation Audit Committee Board of Portfolio Review of Draft of Valuation Committee Meeting Directors Reviews Valuation Valuation Comm
Slide 43: Thorough Origination, Underwriting and Negotiation Process
THOROUGH ORIGINATION, UNDERWRITING AND NEGOTIATION PROCESS ORIGINATION UNDERWRITING & APPROVAL NEGOTIATION & CLOSING Input / Output Process Bottleneck Make Decision Simultaneous Process Pre-cmt. Create Expense checklist Start Ledger for Out-of- Pocket Expenses Issue Commitment Legal & Final KYC Proc
Slide 44: Financial Highlights
FINANCIAL HIGHLIGHTS DOLLAR AMOUNTS IN THOUSANDS Except Per Share Data; Per Share Data is Based on Weighted Average Shares Outstanding During the Period, Except as Otherwise Noted Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net Investment Income Per Share $0.59 $0.62 $0.62 $0.54 $0.54 Net Income (Loss)
Slide 45: Portfolio Highlights – Selected Metrics
PORTFOLIO HIGHLIGHTS – SELECTED METRICS DOLLAR AMOUNTS IN THOUSANDS September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Investments at Fair Value $3,441,075 $3,518,412 $3,412,032 $3,294,905 $3,376,311 Number of Portfolio Companies 115 116 115 109 145 Average Investme
Slide 46: Quarterly Statements of Financial Condition
QUARTERLY STATEMENTS OF FINANCIAL CONDITION DOLLAR AMOUNTS IN THOUSANDS Except Per Share Data; Per Share Data is Based on Ending Shares Outstanding September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Assets Investments at Fair Value $3,441,075 $3,518,412 $3,412,032 $
Slide 47: Net Asset Value Bridge – Q3'25
NET ASSET VALUE BRIDGE – Q3’25 $0.01 $0.53 ($0.08) ($0.46) $17.17 $17.12 $17.13 $0.01 $0.01 $17.14 $17.11 ($0.05) ($0.01) ($0.03) 6/30/2025 Q2'25 6/30/25 Q3'25 Q3'25 Q32'25 Q3'25 NAV Q3'25 Q3'25 Q3'25 9/30/25 Q3'25 9/30/25 1 2 Supplemental Adjusted NAV Adjusted Net Reversal of Reversal of Net Base D
Slide 48: Our Drivers of ROE
OUR DRIVERS OF ROE Illustrative Unit Economics / Return on Equity Return on Assets: Return on Assets Weighted Average Interest Rate of Portfolio 10.9% Amortization of upfront fees1 0.9% Total Yield on Debt and Income Producing Securities 11.8% Impact of Additional fees2 0.7% Prudent Use of Leverage
Slide 49: Sixth Street Responsible Investment Overview
SIXTH STREET RESPONSIBLE INVESTMENT OVERVIEW WHAT WE BELIEVE RI AND ESG GOVERNANCE EMPLOYEE TRAINING • Our mission is to deliver • Senior oversight through • Sixth Street provides training compelling risk-adjusted ESG Oversight and other tools to its returns while conducting our Committee includes e
Slide 50: Differentiated Investor Transparency and Communication
DIFFERENTIATED INVESTOR TRANSPARENCY AND COMMUNICATION Letter to Stakeholders – Quarterly Debt & Equity Investor Presentations April 2025 Regional Banking Crisis – Valuation Principles – Covid-19 Pandemic – 2020 March 2023 August 2022 50 SIXTH STREET SPECIALTY LENDING
Slide 51: Footnotes
FOOTNOTES SIXTH STREET SPECIALTY LENDING
Slide 52: Footnotes
FOOTNOTES Slide 4: Overview 1. Reflects NAV per share adjusted for the supplemental dividend per share related to Q3 2025 earnings 2. Moody’s rating upgraded 2/14/2025; S&P rating affirmed on 1/16/2025; Fitch rating affirmed on 4/14/2025; KBRA rating affirmed 6/4/2025 Slide 5: The Sixth Street Platf
Slide 53: Footnotes
FOOTNOTES Slide 21: Dividend Level Considerations 1. Calculated as the base dividend of $0.46 per share annualized and divided by Q2’25 NAV per share of $17.17 2. Calculated as total dividends per share for 2024 divided by Q4’23 adjusted NAV per share of $16.96 Slide 27: Net Interest Margin Analysis
Slide 54: Footnotes
FOOTNOTES Slide 46: Quarterly Statements of Financial Condition 1. Net of Deferred Financing Costs and Interest Rate Fair Value Hedging. Deferred Financing Costs total $25.5M at 9/30/24, $23.8M at 12/31/24, $29.6M at 3/31/25, $27.9M at 6/30/25 and $26.2M at 9/30/25. Fair value hedge on interest rate
Slide 55: TSLX Investor Relations
CONTACT US: TSLX Investor Relations IRTSLX@sixthstreet.com VISIT US: www.sixthstreetspecialtylending.com 55 SIXTH STREET SPECIALTY LENDING
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