The Partnership Includes $200 million of Seed Capital for Kennedy Lewis’ BDC, Kennedy Lewis Capital Company

Kennedy Lewis Investment Management LLC ("Kennedy Lewis"), a leading alternative credit firm, and the California State Teachers' Retirement System (“CalSTRS”), have announced a strategic partnership focused on senior corporate lending for non-sponsored borrowers.

In addition to investments in Kennedy Lewis’ core lending strategy, CalSTRS will provide Kennedy Lewis with $200 million of seed capital to support the growth of Kennedy Lewis' Capital Company (“KLCC”), the firm’s non-exchange traded, perpetual-life Business Development Company (“BDC”). This partnership reflects CalSTRS and Kennedy Lewis’ shared confidence in the attractive total return and diversification benefits offered by non-sponsored direct lending and its appeal to a broad range of investors.

"We are thrilled to partner with CalSTRS, one of the world’s leading institutional investors, known for being at the forefront of the investment management industry," said David K. Chene and Darren L. Richman, Co-Founders and Co-Managing Partners of Kennedy Lewis. "There is currently an extremely compelling opportunity set that is complimentary to sponsor-backed lending mandates within the non-sponsored direct lending space. We see the potential to achieve diversification across industries and secure beneficial terms and pricing. We look forward to pursuing this investment opportunity on behalf of CalSTRS, its beneficiaries, and all investors in KLCC.”

Kennedy Lewis’ core lending strategy focuses on originating and investing in senior-secured, floating rate, loans to middle- and upper-middle market non-sponsored companies. The strategy benefits from Kennedy Lewis proprietary sourcing channels across a range of industries and sectors where the firm has specialized expertise, and its defensive investment approach that emphasizes long-term credit performance and principal protection.

About Kennedy Lewis

Kennedy Lewis is an alternative credit manager founded in 2017 by David K. Chene and Darren L. Richman with approximately $16 billion under management across private funds, a business development company, and collateralized loan obligations. The firm seeks to deliver attractive risk adjusted returns for clients by investing across the credit markets through its opportunistic credit, homebuilder finance, core lending and broadly syndicated loan strategies.

About CalSTRS

CalSTRS provides a secure retirement to more than 1 million members and beneficiaries whose CalSTRS-covered service is not eligible for Social Security participation. On average, members who retired in 2022–23 had 25 years of service and a monthly benefit of $5,141. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with $337.9 billion in assets under management as of May 31, 2024. CalSTRS demonstrates its strong commitment to long-term sustainability principles in its annual Sustainability Report.

Forward Looking Statements

Certain information contained in this material constitutes “forward looking statements,” which can be identified by the use of forward looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words, or the negatives thereof. These may include our financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, and statements regarding future performance. Such forward‐looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in KLCC’s prospectus and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the “SEC”) which will be accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in KLCC’s prospectus and other filings. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

The contents of this material: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities of KLCC or any other product, (ii) offers can be made only by KLCC’s prospectus which is available upon request, (iii) do not and cannot replace the KLCC prospectus and is qualified in its entirety by the prospectus, and (iv) may not be relied upon in making an investment decision related to any investment. All potential investors in KLCC must read the prospectus and no person may invest without acknowledging receipt and complete review of the prospectus.

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