Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — Q2 2026 Earnings Presentation
57 slides from Sixth Street Specialty Lending's earnings presentation, August 2026
Slide 1: Sixth Street Specialty Lending Equity Investor Presentation August 2026
SIXTH STREET SPECIALTY LENDING SIXTH STREET SPECIALTY LENDING, INC Equity Investor Presentation August 2026
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 15.35 2.01 $17.36 OVERVIEW 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: Sixth Street Fund Architecture
SIXTH STREET FUND ARCHITECTURE 1 Overview & Organization TAO: Sixth Street Highly Flexible, Thematically Focused, Cross-Platform Investing Vehicle Sports & Live Direct Asset Based Real Estate Opportunities Growth Public Markets Entertainment Lending Finance US Middle Market Control Convex Commercial
Slide 6: Sixth Street Thematic Investing Architecture
SIXTH STREET THEMATIC 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 &
Slide 7: SLX Senior Leadership
SLX SENIOR LEADERSHIP 1 Overview & Organization BO STANLEY MICHAEL FISHMAN MIKE GRIFFIN CEO of SLX & SSLP Chairman of SLX & SSLP Co-Head of Direct Lending Co-Head of Direct Lending Partner Partner Partner 15 years at Sixth Street 14 years at Sixth Street 14 years at Sixth Street CRAIG HAMRAH IAN SIM
Slide 8: Differentiated Solutions Provider
DIFFERENTIATED SOLUTIONS PROVIDER 1 Overview & Organization Our Competitive Advantages Our Track Record Highlights Approximately $56.0 billion of Part of $135+ billion1 Sixth Street investments originated with a realized platform with proprietary deal flow and significant resources including average
Slide 9: BDC Sector Themes
BDC SECTOR THEMES 1 Overview & Organization CENTRAL THEMES Liquidity and Capital Raising Credit Dividend Dispersion in Balance Sheet and Deployment Normalization Sustainability ROE Flexibility EMERGING THEMES Rebalancing of the Contracting portfolio Exposure to AI and Platform and Capital optimizati
Slide 10: Agenda: Track Record
AGENDA 2. Track Record 10 SIXTH STREET SPECIALTY LENDING
Slide 11: 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 12.8% 13.4% 11.1% 10.5% 10.6% 9.4% 9.3% 8.9% 6
Slide 12: 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% 10.9% 10.0% 10.3% 7.6% 7.6% 7.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Income / Sh
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% 13.3% Higher return on assets Cost of Funds2 (5.7%) (5.9%) Debt/Equity 0.97x 0.91x Net Interest Income Return (on Equity)1 14.5% 20.0% Management Fees3 (3.0%
Slide 14: 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 ~3.4x ~3.4x ~3.6x 397.2% 284.4% 83.3% 83.2% 78.2% ~0.7x TSLX TSLX BDC Peers S&P 500 High Yield Leveraged Loans Historical Total Returns LTM 3-Year 5-Year Since TSLX IPO To
Slide 15: Agenda: Capital Allocation & Dividend Policy
AGENDA 3. Capital Allocation & Dividend Policy 15 SIXTH STREET SPECIALTY LENDING
Slide 16: Access to Equity Markets
ACCESS TO EQUITY MARKETS 3 Capital Allocation & Dividend Policy 1.60x TSLX BDC Peers SLX Average: 1.20x 1.40x 1.20x 1.00x 0.80x BDC Peers Average: 0.90x 0.60x 0.40x 0.20x Mar '14 Mar '15 Apr '16 Apr '17 Apr '18 Apr '19 May '20 May '21 May '22 May '23 Jun '24 Jun '25 Jun '26 Canceled undrawn pre-IPO
Slide 17: Dividend Level Considerations
DIVIDEND LEVEL CONSIDERATIONS 3 Capital Allocation & Dividend Policy “Our second quarter operating earnings exceeded the base dividend level we established last quarter. As we discussed on our last earnings call, we expected activity-based fee income to normalize over several quarters following the
Slide 18: SLX Historical Dividend Coverage
SLX HISTORICAL DIVIDEND COVERAGE 3 Capital Allocation & Dividend Policy 31 Supplemental dividends have been paid since the framework was introduced in 2017 (37 quarters) $0.63 $0.64 $0.62 $0.61 $0.59 $0.60 $0.58 $0.58 $0.57 $0.58 $0.55 $0.55 $0.56 $0.53 $0.52 $0.49 $0.47 $0.09 $0.08 $0.06 $0.07 $0.0
Slide 19: 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 20: 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 Q1'13 $15.27 $1.23 $16.50 Note: As of 6/30/2026. 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 21: Agenda: Principles and Investment Strategy
AGENDA 4. Principles and Investment Strategy 21 SIXTH STREET SPECIALTY LENDING
Slide 22: Differentiated Platform Expertise
DIFFERENTIATED PLATFORM EXPERTISE 4 Principles and Investment Strategy DIFFERENTIATED DISCIPLINED SECTOR MAINTAIN A LOW FOCUSED RISK PLATFORM APPROACH VOLATILITY MANAGEMENT EXPERTISE AND PORTFOLIO CAPABILITIES • Source away from Wall • Late cycle-minded sector • Cover the downside • Avoid risks that
Slide 23: 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 24: Differentiated Platform Expertise and Capabilities
DIFFERENTIATED PLATFORM EXPERTISE AND CAPABILITIES 4 Principles and Investment Strategy Sourcing Voting Control TSLX Portfolio Construction No Voting Non-Sponsor Control Originated 22% 36% $20-105 Predominantly, million floating rate, first position size lien / senior secured US and Target ROA Europ
Slide 25: Net Interest Margin Analysis
NET INTEREST MARGIN ANALYSIS 5 4 Principles and Investment Strategy Weighted Average Total Yield on Debt and Income Producing Securities at Amortized Cost 1 Weighted Average Interest Rate of Debt and Income Producing Securities at Fair Value Weighted Average Spread Over Reference Rate of All Floatin
Slide 26: 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 27: 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 28: Diversification Across Borrowers & Industries
DIVERSIFICATION ACROSS BORROWERS & INDUSTRIES 4 Principles and Investment Strategy Top 10 Borrower Diversification Industry Diversification EDB Parent, LLC ExtraHop Networks, Inc. Internet Services Retail and consumer products Ranger Intermediate II, LLC Payscale Holdings Inc. Business Services Hote
Slide 29: 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 30: 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 27% $840 24% 21% $755 22% $651 $688 17% $511 15% 15% 14% $475 $463 $440 11% 11% $332 $346 7% $218 3% 2% 2% 3% 3% $108 $76 $95 1% $88 $73 $
Slide 31: High Quality Portfolio
HIGH QUALITY PORTFOLIO 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 98% 99% 99% 96% 97% 2.1% 2.0% 2.1% 1.9% 1.9% 1.10 1.12 1.13 1.19 1.20 1.4% 1.3%
Slide 32: Agenda: Sector Observations
AGENDA 5. Sector Observations 32 SIXTH STREET SPECIALTY LENDING
Slide 33: 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 293.48% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 293.48% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 10.0% 2.50x 2.49x 2.48x 2.46x 2.45x 2.42x 5.50% 3
Slide 34: Illustrative ROE Throughout Cycles
ILLUSTRATIVE ROE THROUGHOUT CYCLES 5 Sector Observations Illustrative ROE Illustrative IllustrativeROE Interest Coverage Debt to Equity Debt to Equity Debt to Equity 11.32% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 11.32% 0.90x 0.95x 1.00x 1.05x 1.10x 1.25x 10.0% 6.7% 6.8% 7.0% 7.1% 7.3% 7.8% 5.50% 11.1%
Slide 35: 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: 12.8% • BDC Peers Mean: 7.4% 1.2x TSLX • BDC Peers Median: 6.4% 1.1x BDC 11 BDC 6 BDC 20 1.0x BDC 1 BDC 8 BDC 12 BDC 9 BDC 28 BDC 13 BDC 16
Slide 36: Price-to-Earnings (NII 2026E)
PRICE-TO-EARNINGS (NII 2026E) 5 Sector Observations Price-to-Earnings2 Historical NI as % of NII1: 40.0x 38.2x • TSLX: 95% • BDC Peers Median: 80% 35.0x 30.0x 25.0x 20.0x 15.0x BDC Peers Mean: 8.6x 9.7x 9.6x 9.4x 9.4x 9.3x BDC Peers Median: 8.0x 10.0x 8.7x 8.7x 8.6x 8.5x 8.4x 8.3x 8.2x 8.1x 8.1x 8.1
Slide 37: Adjusted Price-to-Earnings (2026E)
ADJUSTED PRICE-TO-EARNINGS (2026E) 5 Sector Observations Adjusted Price-to-Earnings1 30.0x 28.5x 25.0x 20.0x 17.8x 17.6x 14.6x 15.0x 13.1x 12.4x 11.7x 11.6x 11.1x 11.1x BDC Peers Mean: 8.7x 9.9x 9.5x 9.4x 9.4x 9.3x 9.0x BDC Peers Median: 8.1x 10.0x 9.1x 9.7x 8.8x 8.5x 8.3x 8.0x 8.0x 7.2x 6.8x 6.1x 5
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 7 LIQUIDITY VS. NEAR-TERM OBLIGATIONS 7 ($ in Millions) As of June 30, 2026 / $ Millions Near-term Obligations Total Liquidity: $943 Undrawn Revolver $943 $0.9BN1,2 Capacity1 $221 $559 Secured Revolver 3 Liquidity 1,2 Avai
Slide 40: Liquidity Management
LIQUIDITY MANAGEMENT CASH AND CASH EQUIVALENTS 5 Unrestricted Cash Totaled $157.3 Million as of June 30, 2026. Restricted Cash Related to Interest Rate Swaps Totaled $36.3 Million 1 5 Revolving Credit Facility Unsecured Notes $1.525 Billion Committed; Uncommitted Accordion Size: $300 Million $350 Mi
Slide 41: A Disciplined Approach to Liquidity & Capital Management
A DISCIPLINED APPROACH TO LIQUIDITY & CAPITAL MANAGEMENT Revolving Credit Facility Renewal Unsecured Bonds Issued Convertible Notes Issued Equity Issued DRIP Equity ($ in Millions) $36 $25 1.60x $90 $94 $23 $21 $11 1.40x $130 $300 $350 $300 $22 $300 $78 1.20x $10 $300 $16 $10 $300 $50 1.00x P / NAV
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 11 people Complete Initial Preliminary Final Valuation Audit Committee Board of Portfolio Review of Draft of Valuation Committee Meeting Directors Reviews Valuation Valuation Com
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 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net Investment Income Per Share $0.54 $0.54 $0.53 $0.42 $0.43 Net Income (Loss)
Slide 45: Portfolio Highlights – Selected Metrics
PORTFOLIO HIGHLIGHTS – SELECTED METRICS DOLLAR AMOUNTS IN THOUSANDS June 30, 2025 September 30, 2025 December 30, 2025 March 31, 2026 June 30, 2026 Investments at Fair Value $3,294,905 $3,376,311 $3,347,317 $3,313,441 $3,302,132 Number of Portfolio Companies 109 145 143 143 137 Average Investment Si
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 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 Assets Investments at Fair Value $3,294,905 $3,376,311 $3,347,317 $3,313
Slide 47: Net Asset Value Bridge – Q2'26
NET ASSET VALUE BRIDGE – Q2’26 $0.43 ($0.02) ($0.42) $16.24 $16.23 $0.06 $0.01 $16.24 ($0.04) ($0.02) 3/31/26 Q2'26 Q2'26 Q2'26 NAV Q2'26 Q2'26 Q2'26 Q2'26 6/30/26 NAV Net Reversal of Net Base Dividend Before Net Unrealized Net Unrealized Net Realized Gains on Other Changes Primarily NAV Investment
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 10.7% Amortization of upfront fees1 0.8% Total Yield on Debt and Income Producing Securities 11.5% Impact of Additional fees2 0.7% Prudent Use of Leverage
Slide 49: Overview of Structured Credit Partners (SCP)
OVERVIEW OF STRUCTURED CREDIT PARTNERS (“SCP”) • Structured Credit Partners JV, LLC (“SCP”) is a joint venture that will invest in broadly syndicated loans financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt 1. STRUCTURE • Each pool of loans will be 100% ow
Slide 50: Overview of Structured Credit Partners (SCP)
OVERVIEW OF STRUCTURED CREDIT PARTNERS (“SCP”) • During Q2'26, SCP's portfolio grew to $1.7 billion, primarily in first lien and senior secured debt • SCP generated an annualized dividend yield of 18.7% to SSLP during Q2’26 • There are no management or incentive fees charged at SCP and its underlyin
Slide 51: 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 52: Differentiated Investor Transparency and Communication
DIFFERENTIATED INVESTOR TRANSPARENCY AND COMMUNICATION AI Adoption Cycle – Letter to Stakeholders – Quarterly Debt & Equity March 2026 April 2025 & November 2025 Investor Presentations Regional Banking Crisis – Valuation Principles – Covid-19 Pandemic – 2020 March 2023 August 2022 52 SIXTH STREET SP
Slide 53: Footnotes
FOOTNOTES SIXTH STREET SPECIALTY LENDING
Slide 54: Footnotes
FOOTNOTES Slide 4: Overview 1. Moody’s rating affirmed 2/14/2025; S&P rating outlook changed to positive on 12/11/2025; Fitch rating affirmed on 4/9/2026; KBRA affirmed 6/18/2026 Slide 5: Sixth Street fund Architecture 1. Assets under management (“AUM”) is presented as of 6/30/2026, unless otherwise
Slide 55: Footnotes
FOOTNOTES Slide 19: Dividend Level Considerations 1. Calculated as total dividends per share paid during 2025 divided by Q4’24 adjusted NAV per share of $17.09 Slide 25: Net Interest Margin Analysis 1. Total yield on investments is calculated based on the interest rate and the accretion of OID, excl
Slide 56: Footnotes
FOOTNOTES Slide 44: Financial Highlights 1. Adjusted to exclude the capital gains incentive fee expense that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive
Slide 57: TSLX Investor Relations
CONTACT US: TSLX Investor Relations IRTSLX@sixthstreet.com VISIT US: www.sixthstreetspecialtylending.com 57 SIXTH STREET SPECIALTY LENDING
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