Barings BDC, Inc. 10-K

Item 9A. Controls and Procedures. Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act 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 Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2020. It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of 97 control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. Management’s Report on Internal Control over Financial Reporting Our management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with U.S. GAAP. Internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. Management (with the participation of our Chief Executive Officer and Chief Financial Officer) conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2020. Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting during the fourth quarter of 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information. Not applicable. 98 PART III Item 10. Directors, Executive Officers and Corporate Governance. We have adopted a code of ethics, the Global Code of Ethics Policy, which applies to, among others, our executive officers, including our Chief Executive Officer and Chief Financial Officer, as well as Barings' officers, directors and employees. The Global Code of Ethics Policy is publicly available on our website under “Corporate Governance” at the following URL: https://ir.barings.com/governance-docs. We will provide any person, without charge, upon request, a copy of our Global Code of Ethics Policy. To receive a copy, please provide a written request to: Barings BDC, Inc., Attn: Chief Compliance Officer, 300 South Tryon Street, Suite 2500 Charlotte, North Carolina, 28202. There have been no material changes to the procedures by which stockholders may recommend nominees to the Board that have been implemented since the date the Company last filed a periodic report with the SEC. Except as set forth above, the information required by this Item with respect to our directors, executive officers and corporate governance matters is incorporated by reference from our definitive Proxy Statement for our 2021 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. Our definitive Proxy Statement will be filed with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2020. Item 11. Executive Compensation. The information required by this Item with respect to compensation of executive officers and directors is incorporated by reference from our definitive Proxy Statement for our 2021 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. Our definitive Proxy Statement will be filed with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2020. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by this Item with respect to security ownership of certain beneficial owners and management is incorporated by reference from our definitive Proxy Statement for our 2021 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. Our definitive Proxy Statement will be filed with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2020. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by this Item with respect to certain relationships and related transactions and director independence is incorporated by reference from our definitive Proxy Statement for our 2021 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. Our definitive Proxy Statement will be filed with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2020. Item 14. Principal Accountant Fees and Services. The information required by this Item with respect to principal accountant fees and services is incorporated by reference from our definitive Proxy Statement for our 2021 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. Our definitive Proxy Statement will be filed with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2020. 99 PART IV Item 15. Exhibits and Financial Statement Schedules. (a) The following documents are filed as part of this Report: (1) Financial Statements Barings BDC, Inc. Financial Statements: Page Report s of Independent Registered Public Accounting Firm s F- 1 Consolidated Balance Sheets as of December 31, 2020 and 2019 F- 5 Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 F- 6 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2020, 2019 and 2018 F- 8 Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 F- 9 Consolidated Schedule of Investments as of December 31, 2020 F- 10 Consolidated Schedule of Investments as of December 31, 2019 F- 23 Notes to Consolidated Financial Statements F- 33 (2) Financial Statement Schedules None. Schedules that are not listed herein have been omitted because they are not applicable or the information required to be set forth therein is included in the Consolidated Financial Statements or notes thereto. (3) List of Exhibits The exhibits required by Item 601 of Regulation S-K, except as otherwise noted, have been filed with previous reports by the Registrant and are herein incorporated by reference. Number Exhibit 2.1 Asset Purchase Agreement, dated April 3, 2018, by and between the Registrant and BSP Asset Acquisition I, LLC (Filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 9, 2018 and incorporated herein by reference). 2.2 Stock Purchase and Transaction Agreement, dated April 3, 2018, by and between the Registrant and Barings LLC (Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 9, 2018 and incorporated herein by reference). 2.3 Agreement and Plan of Merger, by and among Barings BDC, Inc., MVC Capital, Inc., Mustang Acquisition Sub, Inc., and Barings LLC, dated as of August 10, 2020 (Filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 11, 2020 and incorporated herein by reference). 3.1 Form of Articles of Amendment and Restatement of the Registrant (Filed as Exhibit (a)(3) to the Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-138418) filed with the Securities and Exchange Commission on December 29, 2006 and incorporated herein by reference). 3.2 Articles of Amendment of the Registrant (Filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018 and incorporated herein by reference). 3.3 Seventh Amended and Restated Bylaws of the Registrant (Filed as Exhibit 3.3 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018 and incorporated herein by reference). 3.4 Articles Supplementary (Filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018 and incorporated herein by reference). 100 Number Exhibit 3.5 Amended and Restated Limited Liability Company Agreement of Barings BDC Senior Funding I, LLC Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 6, 2018 and incorporated herein by reference) 4.1 Form of Common Stock Certificate (Filed as Exhibit (d) to the Registrant's Post-Effective Amendment No. 1 on Form N2/N-5 (File No. 333-138418) filed with the Securities and Exchange Commission on February 15, 2007 and incorporated herein by reference) 4.2 Barings BDC, Inc. Dividend Reinvestment Plan (Filed as Exhibit 4.2 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission on March 12, 2008 and incorporated herein by reference). 4.3 Agreement to Furnish Certain Instruments (Filed as Exhibit 4.19 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on February 25, 2009 and incorporated herein by reference). 4.4 Description of Registrant's securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (Filed as Exhibit 4.4 to the Registrant’s Current Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020 and incorporated herein by reference). 10.1 Amended and Restated Investment Advisory Agreement, dated December 23, 2020 by and between Barings BDC, Inc. and Barings LLC (Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 2020 and incorporated herein by reference). 10.2 Administration Agreement, dated August 2, 2018 by and between Triangle Capital Corporation and Barings LLC (Filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018 and incorporated herein by reference). 10.3 Registration Rights Agreement, dated August 2, 2018 by and between Triangle Capital Corporation and Barings LLC (Filed as Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018 and incorporated herein by reference). 10.4 Master Custodian Agreement, dated August 2, 2018, between the Company and State Street Bank and Trust Company (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2018 and incorporated herein by reference). 10.5 Investment Management Agreement, dated August 3, 2018, between Barings BDC Senior Funding I, LLC and Barings LLC (Filed as Exhibit 10.5 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 6, 2018 and incorporated herein by reference). 10.6 Stock Transfer Agency Agreement between the Registrant and Computershare, Inc. (as successor to The Bank of New York) (Filed as Exhibit 10.11 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission on March 12, 2008 and incorporated herein by reference). 10.7† Form of Indemnification Agreement. (Filed as Exhibit 10.23 to the Registrant ' s Annual Report on Form 10-K for the year ended December 31, 2 017 filed with the Securities and Exchange Commission on February 28, 2018 and incorporated herein by reference). 10.8 Senior Secured Revolving Credit Facility, dated as of February 21, 2019, by and among the Company, as borrower, the lenders party thereto, ING Capital LLC, as administrative agent, and the other parties signatory thereto (Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 filed with the Securities and Exchange Commission on May 9, 2019 and incorporated herein by reference). 10.9 Guarantee, Pledge and Security Agreement, dated as of February 21, 2019, by and among the Company, as borrower, the subsidiary guarantors party thereto, ING Capital LLC, as revolving administrative agent for the revolving lenders and collateral agent, and the other parties signatory thereto (Filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 filed with the Securities and Exchange Commission on May 9, 2019 and incorporated herein by reference). 101 Number Exhibit 10.10 Amendment to the Senior Secured Revolving Credit Agreement dated as of December 3, 2019, by and among the Company, as borrower, the lenders party thereto, ING Capital LLC, as administrative agent, and the other parties signatory thereto (Filed as Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020 and incorporated herein by reference). 10.11 Credit Support Agreement, dated December 23, 2020, by and between the Company and Barings LLC (Filed as Exhibit 10. 2 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 2020 and incorporated herein by reference). 10.12 N ote Purchase Agreement b y and between the Company and the purchase r s party thereto, dated August 3, 2020 (Filed as Exhibit 10.1 to the Registra nt's Quarterly Report on Form 10-Q filed with the Securities and Ex change Commission on August 5, 2020 and inc orporated herein by reference ). 10.13 Amend ment No. 1 to August 3, 2020 Note Purchase Agreement by and between the Company and the purchase r s party thereto, dated November 4 , 2 020 (Filed as Exhibit 10.2 to the Registrant 's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 4, 2020 and inc orporated herein by reference). 10.14 Note Purchase Agreement by and between the C ompany and the purchase rs party thereto, dated November 4, 2020 (Filed as Exhibit 10. 1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 4, 2020 and incorporated herein by reference). 10.15 Note Purchase Agreement by and between the Company and the purchasers party thereto, dated February 25, 2021 (Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 25, 2021 and incorporated herein by reference). 21.1 List of Subsidiaries.* 31.1 Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* 31.2 Chief Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* * 32.1 Chief Executive Officer Certification pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** 32.2 Chief Financial Officer Certification pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** 99.1 Report of KPMG LLP on Senior Securities Table.* 99.2 Report of Ernst & Young LLP on Senior Securities Table.* 99.3 Consent of Ernst & Young LL P . * † Management contract or compensatory plan or arrangement. * Filed herewith. ** Furnished herewith. (b) Exhibits See Item 15(a)(3) above. (c) Financial Statement Schedules See Item 15(a)(2) above. 102 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. Date: March 23, 2021 BARINGS BDC, INC. By: /s/ Eric Lloyd Name: Eric Lloyd Title: Chief Executive Officer 103 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Eric Lloyd Chief Executive Officer and Director (Principal Executive Officer) March 23, 2021 Eric Lloyd /s/ Ian Fowler President March 23, 2021 Ian Fowler /s/ Jonathan Bock Chief Financial Officer (Principal Financial Officer) March 23, 2021 Jonathan Bock /s/ Elizabeth A. Murray Controller (Principal Accounting Officer) March 23, 2021 Elizabeth A. Murray /s/ Michael Freno Chairman of the Board March 23, 2021 Michael Freno /s/ Robert C. Knapp Director March 23, 2021 Robert C. Knapp /s/ David Mihalick Director March 23, 2021 David Mihalick /s/ Mark F. Mulhern Director March 23, 2021 Mark F. Mulhern /s/ Thomas W. Okel Director March 23, 2021 Thomas W. Okel /s/ Jill Olmstead Director March 23, 2021 Jill Olmstead /s/ John A. Switzer Director March 23, 2021 John A. Switzer Barings BDC, Inc. Index to Financial Statements and Financial Statement Schedules Page Report s of Independent Registered Public Accounting Firm s F- 1 Consolidated Balance Sheets as of December 31, 2020 and 2019 F- 5 Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 F- 6 Consolidated Statements of Ch anges in Net Assets for the years ended December 31, 2020, 2019 and 2018 F- 8 Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 F- 9 Consolidated Schedule of Investments as of December 31, 2020 F- 10 Consolidated Schedule of Investments as of December 31, 2019 F- 23 Notes to Consolidated Financial Statements F- 33 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Barings BDC, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Barings BDC, Inc. and subsidiaries (the Company), including the consolidated schedule of investments, as of December 31, 2020, the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, the results of its operations, and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As a part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purposes of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Such procedures also included confirmation of securities owned as of December 31, 2020, by correspondence with custodians, portfolio companies or agents or by other appropriate auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Acquisition of MVC Capital, Inc. As discussed in Note 11 to the consolidated financial statements, the Company completed its acquisition of MVC Capital, Inc. on December 23, 2020. The transaction was accounted for as an asset acquisition under Accounting Standards Codification 805-50. The difference between the fair value of net assets acquired and the fair value of the merger consideration paid was recognized as deemed contribution from the Company’s investment adviser and shareholder, Barings LLC. F-1 We identified the evaluation of the acquisition of MVC Capital, Inc. as a critical audit matter because the application of asset acquisition guidance and the accounting for the difference between the fair value of the net assets acquired and the fair value of the merger consideration paid involved a higher degree of auditor judgment. The following are the procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls over the Company’s acquisition process, including controls related to the application of the asset acquisition guidance. We assessed the evidence underlying the accounting of the transaction as an asset acquisition and the recognition of deemed contribution from Barings LLC. Specifically, we read and evaluated the Company’s asset acquisition accounting memorandum that documented the facts and circumstances in the transaction, which included the factors the Company considered in determining the applicable accounting treatment. In addition, we compared the facts and circumstances in the Company’s accounting memorandum to the acquisition agreement. Credit Support Agreement As discussed in Note 2 to the consolidated financial statements, the Company entered into a credit support arrangement (CSA) with Barings LLC. The CSA was recognized as a derivative asset and deemed contribution from Barings LLC. We identified the evaluation of the CSA as a critical audit matter. A higher degree of auditor judgment was required to evaluate the application of the derivative accounting guidance due to the nature of the CSA. The following are the procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls over the Company’s derivatives process, including the control related to the application of the derivative guidance to the CSA. We assessed the evidence underlying the accounting of the CSA as a derivative and the recognition of deemed contribution from Barings LLC. Specifically, we read and evaluated the Company’s CSA accounting memorandum that documented the business purpose and the terms of the CSA, which included the factors the Company considered in determining the applicable accounting treatment. In addition, we compared the facts and circumstances in the Company’s accounting memorandum to the CSA. Assessment of the fair value of investments As discussed in Notes 1 and 3 to the consolidated financial statements, the Company measures its investments at fair value. In determining the fair value of investments that are not publicly traded and whose market quotations are not readily available, the Company makes subjective judgments and estimates using unobservable inputs. We identified the assessment of the fair value of investments with no readily determinable market value as a critical audit matter. The evaluation of certain assumptions used to estimate the fair value of investments with no readily determinable market value involved a high degree of subjective auditor judgment and specialized skills and knowledge. Specifically, market yields for investments with similar terms and credit risks used in income approach analyses and the selection of comparable companies and financial performance multiples of such comparable companies used in market approach analyses required subjective auditor judgment. Changes in these assumptions could have a significant impact on the estimate of the fair value of investments. The following are the procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls over the process to value investments. These included controls related to the determination of market yields, credit risk, selection of comparable companies, and financial performance multiples assumptions. We evaluated the Company’s ability to estimate fair value by comparing prior period fair values for a selection of investments to transaction prices of transactions occurring subsequent to the valuation date. We involved valuation professionals with specialized skills and F-2 knowledge who, for a selection of the Company’s investments, assisted in evaluating the Company’s fair value estimate by: • developing a market yield, for investments fair valued using an income approach, by assessing available market information, such as market yields of comparable companies of similar credit risk • developing a market multiple, for investments fair valued using a market approach, by assessing market information from third-party sources, including financial performance multiples of comparable companies • developing independent estimates of fair value, for the selected investments, based upon developed market yields and financial performance multiples and compared the results to the Company’s fair value estimates. We have served as the Company’s auditor since 2020. /s/ KPMG LLP Charlotte, North Carolina March 23, 2021 F-3 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Barings BDC, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Barings BDC, Inc. (the “Company”), including the consolidated schedule of investments, as of December 31, 2019, the related consolidated statements of operations, changes in net assets, and cash flows for each of the two years in the period ended December 31, 2019, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2019, the results of its operations, changes in its net assets, and its cash flows for each of the two years in the period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 2019, by correspondence with the custodians, agents and/or the underlying investee or by other appropriate auditing procedures where replies from agents were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. We served as the Company’s auditor from 2006 to 2020. /s/ ERNST & YOUNG LLP Charlotte, North Carolina February 27, 2020 F-4 Barings BDC, Inc. Consolidated Balance Sheets December 31, 2020 2019 Assets: Investments at fair value: Non-Control / Non-Affiliate investments (cost of $1,318,614,617 and $1,085,886,720 at December 31, 2020 and 2019, respectively) $ 1,325,783,281 $ 1,066,845,054 Affiliate investments (cost of $76,055,873 and $10,158,270 at December 31, 2020 and December 31, 2019, respectively) 78,598,633 10,229,813 Control investments (cost of $25,826,428 at December 31, 2020) 25,855,796 — Short-term investments (cost of $65,558,227 and $96,568,940 at December 31, 2020 and 2019, respectively) 65,558,227 96,568,940 Total investments at fair value 1,495,795,937 1,173,643,807 Cash (restricted cash of $3,488,336 and $0 at December 31, 2020 and 2019, respectively) 62,651,340 13,567,849 Foreign currencies (cost of $29,555,465 and $8,360,011 at December 31, 2020 and December 31, 2019, respectively) 29,836,121 8,423,716 Interest and fees receivable 21,617,843 5,265,980 Prepaid expenses and other assets 2,014,558 1,112,559 Credit support agreement 13,600,000 — Deferred financing fees 4,110,564 5,366,119 Receivable from unsettled transactions 47,412,382 45,254,808 Total assets $ 1,677,038,745 $ 1,252,634,838 Liabilities: Accounts payable and accrued liabilities $ 6,045,443 $ 1,501,271 Interest payable 2,219,274 2,491,534 Administrative fees payable 675,000 400,000 Base management fees payable 3,413,270 3,266,722 Derivatives liabilities 1,336,283 23,559 Payable from unsettled transactions 1,548,578 4,924,150 Borrowings under credit facilities 719,660,707 352,488,419 Debt securitization — 316,664,474 Notes payable 224,335,666 — Total liabilities 959,234,221 681,760,129 Commitments and contingencies (Note 9) Net Assets: Common stock, $0.001 par value per share (150,000,000 shares authorized, 65,316,085 and 48,950,803 shares issued and outstanding as of December 31, 2020 and 2019, respectively) 65,316 48,951 Additional paid-in capital 1,027,707,047 853,766,370 Total distributable loss (309,967,839) (282,940,612) Total net assets 717,804,524 570,874,709 Total liabilities and net assets $ 1,677,038,745 $ 1,252,634,838 Net asset value per share $ 10.99 $ 11.66 See accompanying notes. F-5 Barings BDC, Inc. Consolidated Statements of Operations Year Ended December 31, 2020 2019 2018 Investment income: Interest income: Non-Control / Non-Affiliate investments $ 65,267,782 $ 72,486,107 $ 61,223,025 Affiliate investments — — 5,580,051 Control investments — — 644,805 Short-term investments 353,109 985,286 950,736 Total interest income 65,620,891 73,471,393 68,398,617 Dividend income: Non-Control / Non-Affiliate investments 2,603 44,744 252,369 Affiliate investments — — 642,187 Total dividend income 2,603 44,744 894,556 Fee and other income: Non-Control / Non-Affiliate investments 4,075,344 2,116,820 4,459,511 Affiliate investments — — 601,571 Control investments 5,292 — 107,819 Total fee and other income 4,080,636 2,116,820 5,168,901 Payment-in-kind interest income: Non-Control / Non-Affiliate investments 1,304,986 5,413 2,814,474 Affiliate investments 11,789 — 962,080 Control investments 9,532 — — Total payment-in-kind interest income 1,326,307 5,413 3,776,554 Interest income from cash 631 9,975 1,984,997 Total investment income 71,031,068 75,648,345 80,223,625 Operating expenses: Interest and other financing fees 19,812,711 26,100,941 23,887,331 Base management fee (Note 2) 14,317,693 12,112,475 4,218,628 Compensation expenses 48,381 442,238 37,487,461 General and administrative expenses (Note 2) 5,793,880 6,441,095 16,177,534 Total operating expenses 39,972,665 45,096,749 81,770,954 Base management fee waived (Note 2) — — (1,486,607) Net operating expenses 39,972,665 45,096,749 80,284,347 Net investment income (loss) before taxes 31,058,403 30,551,596 (60,722) Income taxes, including excise tax expense 70,599 — — Net investment income(loss) after taxes $ 30,987,804 $ 30,551,596 $ (60,722) F-6 Barings BDC, Inc. Consolidated Statements of Operations - (Continued) Year Ended December 31, 2020 2019 2018 Realized gains (losses) and unrealized appreciation (depreciation) on investments and foreign currency transactions: Net realized gains (losses): Non-Control / Non-Affiliate investments $ (38,302,323) $ (3,798,263) $ (130,870,385) Affiliate investments — — 9,939,330 Control investments — — (38,542,704) Net realized losses on investments (38,302,323) (3,798,263) (159,473,759) Foreign currency transactions 12,743 (12,185) 1,081,211 Net realized losses (38,289,580) (3,810,448) (158,392,548) Net unrealized appreciation (depreciation): Non-Control / Non-Affiliate investments 26,210,329 33,021,249 27,025,025 Affiliate investments 2,471,217 71,543 3,197,568 Control investments 29,368 — 24,387,532 Net unrealized appreciation on investments 28,710,914 33,092,792 54,610,125 Foreign currency transactions (10,161,326) (1,004,788) (863,980) Net unrealized appreciation 18,549,588 32,088,004 53,746,145 Net realized losses and unrealized appreciation (depreciation) on investments and foreign currency transactions (19,739,992) 28,277,556 (104,646,403) Loss on extinguishment of debt (3,088,728) (297,188) (10,507,183) Benefit from (provision for) taxes 17,709 (340,330) 932,172 Net increase (decrease) in net assets resulting from operations $ 8,176,793 $ 58,191,634 $ (114,282,136) Net investment income (loss) per share — basic and diluted $ 0.64 $ 0.61 $ — Net increase (decrease) in net assets resulting from operations per share — basic and diluted $ 0.17 $ 1.16 $ (2.29) Dividends / distributions per share: Total dividends / distributions $ 0.65 $ 0.54 $ 0.43 Weighted average number of shares outstanding — basic and diluted 48,575,139 50,185,300 49,897,085 See accompanying notes. F-7 Barings BDC, Inc. Consolidated Statements of Changes in Net Assets Common Stock Additional Paid-In Capital Total Distributable Earnings (Loss) Number of Shares Par Value Total Net Assets Balance, January 1, 2018 47,740,832 $ 47,741 $ 823,614,881 $ (182,387,248) $ 641,275,374 Net investment loss — — — (60,722) (60,722) Stock-based compensation — — 14,229,633 — 14,229,633 Net realized loss on investments / foreign currency transactions — — — (158,392,548) (158,392,548) Net unrealized appreciation on investments / foreign currency transactions — — — 53,746,145 53,746,145 Loss on extinguishment of debt — — — (10,507,183) (10,507,183) Income tax benefit — — — 932,172 932,172 Return of capital and other tax related adjustments — — 5,085,295 (5,085,295) — Distributions of net investment income — — (20,223,567) (20,223,567) Return of capital distributions — — (850,745) — (850,745) Issuance of shares to Adviser 8,529,917 8,530 99,831,315 — 99,839,845 Purchase of shares in tender offer (4,901,961) (4,902) (50,997,387) — (51,002,289) Issuance of restricted stock 435,106 435 (435) — — Common stock withheld for payroll taxes upon vesting of restricted stock (519,830) (520) (6,018,308) — (6,018,828) Balance, December 31, 2018 51,284,064 $ 51,284 $ 884,894,249 $ (321,978,246) $ 562,967,287 Net investment income — — — 30,551,596 30,551,596 Net realized loss on investments / foreign currency transactions — — — (3,810,448) (3,810,448) Net unrealized appreciation on investments / foreign currency transactions — — — 32,088,004 32,088,004 Loss on extinguishment of debt — — — (297,188) (297,188) Provision for taxes — — — (340,330) (340,330) Return of capital and other tax related adjustments — — (7,773,706) 7,773,706 — Distributions of net investment income — — (26,927,706) (26,927,706) Purchase of shares in repurchase plan (2,333,261) (2,333) (23,354,173) — (23,356,506) Balance, December 31, 2019 48,950,803 $ 48,951 $ 853,766,370 $ (282,940,612) $ 570,874,709 Net investment income — — — 30,987,804 30,987,804 Net realized loss on investments / foreign currency transactions — — — (38,289,580) (38,289,580) Net unrealized appreciation on investments / foreign currency transactions — — — 18,549,588 18,549,588 Loss on extinguishment of debt — — — (3,088,728) (3,088,728) Provision for taxes — — — 17,709 17,709 Return of capital and other tax related adjustments — — 3,878,798 (3,878,798) — Distributions of net investment income — — (31,325,222) (31,325,222) Deemed contribution - CSA (See Note 2) — — 13,600,000 — 13,600,000 Deemed contribution - from Adviser (See Note 11) — — 3,254,849 — 3,254,849 Issuance of common stock in connection with acquisition of MVC Capital 17,354,332 17,354 160,336,673 — 160,354,027 Purchase of shares in repurchase plan (989,050) (989) (7,129,643) — (7,130,632) Balance, December 31, 2020 65,316,085 $ 65,316 $ 1,027,707,047 $ (309,967,839) $ 717,804,524 See accompanying notes. F-8 Barings BDC, Inc. Consolidated Statements of Cash Flows Year Ended December 31, 2020 2019 2018 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 8,176,793 $ 58,191,634 $ (114,282,136) Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of portfolio investments (881,171,047) (473,701,786) (1,553,937,707) Acquisition of MVC Capital, net of cash acquired (See Note 11) (96,719,967) — — Repayments received / sales of portfolio investments 684,530,539 449,882,092 606,803,725 Proceeds from sale of portfolio to Asset Buyer — — 793,281,722 Purchases of short-term investments (1,182,185,606) (913,641,727) (1,363,333,538) Sales of short-term investments 1,213,197,945 862,296,728 1,318,109,597 Loan origination and other fees received 19,193,244 8,606,347 4,105,796 Net realized loss on investments 38,302,323 3,798,263 159,473,759 Net realized gain (loss) on foreign currency transactions (12,743) 12,185 (1,081,211) Net unrealized appreciation on investments (28,710,914) (33,092,792) (53,278,592) Net unrealized depreciation on foreign currency transactions 10,161,326 1,004,788 863,980 Payment-in-kind interest / fees accrued, net of payments received (1,348,204) (5,413) 120,933 Amortization of deferred financing fees 1,478,364 1,336,181 1,758,226 Loss on extinguishment of debt 3,088,728 297,188 10,507,183 Loss on disposal of property and equipment — — 22,236 Accretion of loan origination and other fees (2,716,765) (1,609,167) (3,306,421) Amortization / accretion of purchased loan premium / discount (1,805,972) (279,694) (197,715) Depreciation expense — — 27,414 Stock-based compensation — — 14,229,633 Changes in operating assets and liabilities: Interest and fees receivable (4,022,690) 747,340 (5,991,755) Prepaid expenses and other assets (44,607) 3,007,347 (2,268,881) Accounts payable and accrued liabilities 3,890,759 (159,256) (6,665,600) Interest payable (1,411,993) 1,805,266 (3,247,955) Net cash provided by (used in) operating activities (218,130,487) (31,504,476) (198,287,307) Cash flows from investing activities: Proceeds from sales of property and equipment — — 31,499 Net cash provided by (used in) investing activities — — 31,499 Cash flows from financing activities: Repayments of SBA-guaranteed debentures payable — — (250,000,000) Borrowings under credit facilities 636,707,505 320,777,502 574,100,000 Repayments of credit facilities (280,523,363) (539,341,125) (159,953,253) Proceeds from debt securitization — 348,250,000 — Repayments of debt securitization (318,210,176) (30,039,824) — Proceeds from notes 225,000,000 — — Redemption of notes (95,471,804) — (166,750,000) Financing fees paid (773,952) (8,293,282) (308,070) Net proceeds related to issuance of common stock for MVC acquisition 160,354,027 — 99,839,845 Purchases of shares in repurchase plan (7,130,632) (23,356,506) — Common stock withheld for taxes upon vesting of restricted stock — — (6,018,828) Cash dividends / distributions paid (31,325,222) (26,927,706) (21,074,312) Purchase of common stock in tender offer — — (51,002,289) Net cash provided by financing activities 288,626,383 41,069,059 18,833,093 Net increase (decrease) in cash 70,495,896 9,564,583 (179,422,715) Cash and foreign currencies, beginning of year 21,991,565 12,426,982 191,849,697 Cash and foreign currencies, end of year $ 92,487,461 $ 21,991,565 $ 12,426,982 Supplemental disclosure of cash flow information: Cash paid for interest $ 16,697,097 $ 20,063,847 $ 23,630,783 See accompanying notes. F-9 Barings BDC, Inc. Consolidated Schedule of Investments December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Non–Control / Non–Affiliate Investments: 1WorldSync, Inc. (4.0%)* (7) (9) (12) IT Consulting & Other Services First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 07/19, Due 07/25) $ 29,000,000 $ 28,490,102 $ 28,420,000 29,000,000 28,490,102 28,420,000 Accelerate Learning, Inc. (1.0%)* (7) (9) (12) Education Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 12/18, Due 12/24) 7,567,965 7,461,410 7,258,435 7,567,965 7,461,410 7,258,435 Accurus Aerospace Corporation (2.9%)* (7) (9) (12) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 10/18, Due 10/24) 24,500,000 24,251,575 20,506,500 24,500,000 24,251,575 20,506,500 ADE Holding (d/b/a AD Education) (0.8%)* (3) (7) (9) (19) Education Services First Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 01/20, Due 01/27) 5,459,746 4,977,557 5,459,746 5,459,746 4,977,557 5,459,746 AEP Holdings, Inc. (1.8%)* (7) (9) Wholesale First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 6.8% Cash, Acquired 11/20, Due 11/25) (18) 4,362,794 4,143,810 4,275,538 First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/20, Due 11/25) (12) 8,902,516 8,727,725 8,724,466 13,265,310 12,871,535 13,000,004 Aftermath Bidco Corporation (1.3%)* (7) (9) (12) Professional Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 04/19, Due 04/25) 9,425,284 9,265,301 9,335,155 9,425,284 9,265,301 9,335,155 Ahead DB Borrower, LLC. (0.3%)* (7) (9) (12) Technology Distributors Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.5% Cash, Acquired 10/20, Due 10/28) 2,139,295 2,076,161 2,075,117 2,139,295 2,076,161 2,075,117 Air Canada 2020-2 Class B Pass Through Trust (1.1%)* Airlines Structured Secured Note - Class B (9.0% Cash, Acquired 09/20, Due 10/25) 7,500,000 7,500,000 8,077,169 7,500,000 7,500,000 8,077,169 American Dental Partners, Inc. (1.3%)* (7) (9) (12) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 11/18, Due 03/23) 9,800,000 9,786,672 9,396,240 9,800,000 9,786,672 9,396,240 American Scaffold, Inc. (1.3%)* (7) (9) (12) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/19, Due 09/25) 9,686,750 9,509,443 9,686,750 9,686,750 9,509,443 9,686,750 Anagram Holdings, LLC (2.2%)* (3) Chemicals, Plastics, & Rubber First Lien Senior Secured Note (10.0% Cash, 5.0% PIK, Acquired 08/20, Due 08/25) 13,673,780 12,565,289 15,588,108 13,673,780 12,565,289 15,588,108 Anchorage Capital CLO Ltd: Series 2013-1A (0.3%)* (3) (9) (12) Structured Finance Structured Secured Note - Class DR (LIBOR + 6.8%, 7.0% Cash, Acquired 03/20, Due 10/30) 2,000,000 1,743,066 2,000,156 2,000,000 1,743,066 2,000,156 Anju Software, Inc. (1.9%)* (7) (12) Application Software First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.4% Cash, Acquired 02/19, Due 02/25) 13,701,182 13,442,543 13,385,963 13,701,182 13,442,543 13,385,963 Apex Bidco Limited (0.3%)* (3) (7) Business Equipment & Services First Lien Senior Secured Term Loan (GBP LIBOR + 6.50%, 7.0% Cash, Acquired 01/20, Due 01/27) (9) (15) 1,992,033 1,851,359 1,950,974 Subordinated Senior Unsecured Term Loan (8.0% PIK, Acquired 01/20, Due 07/27) 258,955 241,837 253,618 2,250,988 2,093,196 2,204,592 AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.7%)* (7) (9) (12) High Tech Industries Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 9.0% Cash, Acquired 10/18, Due 05/24) 4,959,088 4,877,581 4,959,088 4,959,088 4,877,581 4,959,088 Arch Global Precision LLC (2.3%)* (7) (12) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.0% Cash, Acquired 04/19, Due 04/26) 16,649,218 16,496,045 16,557,510 16,649,218 16,496,045 16,557,510 F-10 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Archimede (0.4%)* (3) (7) (9) (17) Consumer Services First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 10/20, Due 10/27) $ 2,677,354 $ 2,510,391 $ 2,610,420 2,677,354 2,510,391 2,610,420 Argus Bidco Limited (0.8%)* (3) (7) (9) (15) High Tech Industries First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.8% Cash, Acquired 12/20, Due 12/27) 5,715,005 5,383,300 5,543,555 5,715,005 5,383,300 5,543,555 Armstrong Transport Group (Pele Buyer, LLC ) (1.0%)* (7) (9) (12) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 06/19, Due 06/24) 5,354,941 5,277,976 5,302,778 First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 07/20, Due 06/24) 2,000,318 1,964,493 2,000,318 7,355,259 7,242,469 7,303,096 Ascensus Specialties, LLC (1.0%)* (7) (9) (10) Specialty Chemicals First Lien Senior Secured Term Loan (LIBOR + 4.75%, 4.9% Cash, Acquired 09/19, Due 09/26) 7,019,401 6,959,939 6,978,909 7,019,401 6,959,939 6,978,909 ASPEQ Heating Group LLC (1.2%)* (7) (9) (12) Building Products, Air & Heating First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 11/19, Due 11/25) 8,945,499 8,833,249 8,862,629 8,945,499 8,833,249 8,862,629 Auxi International (0.2%)* (3) (7) (9) (19) Commercial Finance First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 12/19, Due 12/26) 1,712,970 1,514,901 1,682,438 1,712,970 1,514,901 1,682,438 AVSC Holding Corp. (1.4%)* (9) (12) Advertising First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, 0.25% PIK, Acquired 08/18, Due 03/25) 4,904,496 4,313,104 4,165,780 First Lien Senior Secured Term Loan (LIBOR + 4.50%, 5.5% Cash, 1.0% PIK, Acquired 08/18, Due 03/25) 748,116 682,722 665,823 First Lien Senior Secured Term Loan (5.0% Cash, 10.0% PIK, Acquired 11/20, Due 10/26) 4,951,086 4,816,560 5,668,994 10,603,698 9,812,386 10,500,597 Bass Pro Group, LLC (0.3%)* (9) (12) General Merchandise Stores First Lien Senior Secured Term Loan (LIBOR + 5.0%, 5.8% Cash, Acquired 03/20, Due 09/24) 1,979,540 1,793,950 1,983,083 1,979,540 1,793,950 1,983,083 BDP International, Inc. (f/k/a BDP Buyer, LLC) (4.8%)* (7) (9) (12) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/18, Due 12/24) 34,937,500 34,387,459 34,238,750 34,937,500 34,387,459 34,238,750 Beacon Pointe Advisors, LLC (0.1%)* (7) (9) (12) Asset Manager & Custody Bank First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 03/20, Due 03/26) 631,591 611,703 631,591 631,591 611,703 631,591 Benify (Bennevis AB) (0.2%)* (3) (7) (9) (20) High Tech Industries First Lien Senior Secured Term Loan (STIBOR + 5.25%, 5.3% Cash, Acquired 07/19, Due 07/26) 1,588,980 1,366,586 1,576,555 1,588,980 1,366,586 1,576,555 Black Diamond Equipment Rentals LLC (1.2%)* (7) (23) Equipment Rental Second Lien Loan (12.5% Cash, Acquired 12/20, Due 06/22) 7,500,000 7,500,000 7,500,000 Warrant (1.0 unit, Acquired 12/20) 847,000 847,000 7,500,000 8,347,000 8,347,000 British Airways 2020-1 Class B Pass Through Trust (0.2%)* Airlines Structured Secured Note - Class B (8.4% Cash, Acquired 11/20, Due 11/28) 1,500,000 1,500,000 1,661,827 1,500,000 1,500,000 1,661,827 British Engineering Services Holdco Limited (1.1%)* (3) (7) (9) (15) Commercial Services & Supplies First Lien Senior Secured Term Loan (GBP LIBOR + 5.25%, 5.5% Cash, Acquired 12/20, Due 12/27) 8,667,451 7,989,566 8,191,066 8,667,451 7,989,566 8,191,066 Brown Machine Group Holdings, LLC (0.7%)* (7) (9) (12) Industrial Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 10/24) 5,286,022 5,241,933 5,286,022 5,286,022 5,241,933 5,286,022 Cadent, LLC (f/k/a Cross MediaWorks) (1.0%)* (7) (9) (12) Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 09/18, Due 09/23) 7,532,846 7,490,785 7,361,851 7,532,846 7,490,785 7,361,851 F-11 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Carlson Travel, Inc (1.0%)* Business Travel Management First Lien Senior Secured Note (6.8% Cash, Acquired 09/20, Due 12/25) $ 3,000,000 $ 2,362,500 $ 2,471,250 Super Senior Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 4,239,000 4,149,608 4,376,768 Common Stock (1,962 units, Acquired 11/20) (7) 88,290 68,670 7,239,000 6,600,398 6,916,688 Carlyle Aviation Partners Ltd. (0.2%)* Structured Finance Structured Secured Note, Series 2019-2 - Class A (3.4% Cash, Acquired 3/20, Due 11/39) 912,844 826,343 863,003 Structured Secured Note, Series 2018-2 - Class A (4.5% Cash, Acquired 3/20, Due 11/38) 432,194 391,920 408,302 1,345,038 1,218,263 1,271,305 Centralis Finco S.a.r.l. (0.1%)* (3) (7) (9) (18) Diversified Financial Services First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 05/20, Due 05/27) 867,913 732,995 867,913 867,913 732,995 867,913 Cineworld Group PLC (1.1%)* (3) (9) (13) Leisure Products First Lien Senior Secured Term Loan (LIBOR + 2.50%, 2.8% Cash, Acquired 04/20, Due 02/25) 9,070,729 5,915,501 6,121,290 Super Senior Secured Term Loan (7.0% Cash, 8.3% PIK, Acquired 11/20, Due 05/24) 1,618,242 1,446,976 1,920,318 Warrants (553,375 units, Acquired 12/20) 101,602 166,416 10,688,971 7,464,079 8,208,024 Classic Collision (Summit Buyer, LLC) (1.6%)* (7) (9) (12) Auto Collision Repair Centers First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 01/20, Due 01/26) 12,006,341 11,774,075 11,820,664 12,006,341 11,774,075 11,820,664 CM Acquisitions Holdings Inc. (3.4%)* (7) (9) (13) Internet & Direct Marketing First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 05/19, Due 05/25) 24,655,278 24,287,477 24,196,657 24,655,278 24,287,477 24,196,657 CMT Opco Holding, LLC (Concept Machine) (0.6%)* (7) (9) (12) Distributors First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/20, Due 01/25) 4,425,935 4,351,646 4,097,088 LLC Units (8,309 units, Acquired 01/20) 332,904 230,492 4,425,935 4,684,550 4,327,580 Command Alkon (Project Potter Buyer, LLC) (3.0%)* (7) (9) (10) Software First Lien Senior Secured Term Loan (LIBOR + 8.25%, 9.3% Cash, Acquired 04/20, Due 04/27) 22,166,804 21,527,201 21,501,800 Class A Units (90.384 units, Acquired 04/20) 90,384 93,510 Class B Units (33,324.69 units, Acquired 04/20) — 8,165 22,166,804 21,617,585 21,603,475 Confie Seguros Holding II Co. (0.3%)* (9) (12) Insurance Brokerage Services Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 8.7% Cash, Acquired 10/19, Due 11/25) 2,500,000 2,370,563 2,233,600 2,500,000 2,370,563 2,233,600 Contabo Finco S.À R.L (0.2%)* (3) (7) (9) (18) Internet Software & Services First Lien Senior Secured Term Loan (EURIBOR + 4.75%, 4.8% Cash, Acquired 10/19, Due 10/26) 1,483,377 1,310,386 1,454,918 1,483,377 1,310,386 1,454,918 CSL DualCom (0.5%)* (3) (7) (9) (15) Tele-communications First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.6% Cash, Acquired 09/20, Due 09/27) 3,776,936 3,339,563 3,646,170 3,776,936 3,339,563 3,646,170 Custom Alloy Corporation (4.8%)* (7) (23) Manufacturer of Pipe Fittings & Forgings Second Lien Loan (15.0% PIK, Acquired 12/20, Due 04/22) 39,391,300 31,434,257 31,434,257 Revolver (15.0% PIK, Acquired 12/20, Due 04/21) 3,745,808 3,228,308 3,228,308 43,137,108 34,662,565 34,662,565 Dart Buyer, Inc. (1.7%)* (3) (7) (9) (12) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 04/19, Due 04/25) 12,310,907 12,092,929 12,188,061 12,310,907 12,092,929 12,188,061 Diamond Sports Group, LLC (0.1%)* (9) (10) Broadcasting First Lien Senior Secured Term Loan (LIBOR + 3.25%, 3.4% Cash, Acquired 03/20, Due 08/26) 989,975 790,536 872,208 989,975 790,536 872,208 F-12 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Discovery Education, Inc. (3.7%)* (7) (9) (10) Publishing First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 10/20, Due 10/26) $ 27,000,000 $ 26,538,991 $ 26,527,500 27,000,000 26,538,991 26,527,500 Distinct Holdings, Inc. (1.0%)* (7) (9) (10) Systems Software First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 04/19, Due 12/23) 7,516,792 7,453,665 7,475,638 7,516,792 7,453,665 7,475,638 DreamStart Bidco SAS (d/b/a SmartTrade) (0.3%)* (3) (7) (9) (19) Diversified Financial Services First Lien Senior Secured Term Loan (EURIBOR + 4.5%, 4.5% Cash, 1.8% PIK, Acquired 03/20, Due 03/27) 2,232,173 1,939,189 2,176,655 2,232,173 1,939,189 2,176,655 Dukane IAS, LLC (0.6%)* (7) (23) Welding Equipment Manufacturer Second Lien Note (10.5% Cash, 2.5% PIK, Acquired 12/20, Due 12/24) 4,604,374 4,604,374 4,604,374 4,604,374 4,604,374 4,604,374 Envision Healthcare Corp. (0.4%)* (9) (10) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 3.75%, 3.9% Cash, Acquired 03/20, Due 10/25) 3,156,772 2,259,339 2,623,688 3,156,772 2,259,339 2,623,688 Exeter Property Group, LLC (2.6%)* (7) (9) (10) Real Estate First Lien Senior Secured Term Loan (LIBOR + 4.5%, 4.7% Cash, Acquired 02/19, Due 08/24) 19,363,647 19,100,177 18,976,374 19,363,647 19,100,177 18,976,374 F24 (Stairway BidCo Gmbh) (0.3%)* (3) (7) (9) (18) Software Services First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, Acquired 08/20, Due 08/27) 1,855,625 1,734,062 1,805,715 1,855,625 1,734,062 1,805,715 FitzMark Buyer, LLC (0.5%)* (7) (9) (10) Cargo & Transportation First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/20, Due 12/26) 3,529,412 3,429,854 3,429,412 3,529,412 3,429,854 3,429,412 Foundation Risk Partners, Corp. (1.4%)* (7) (9) (12) Financial Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 09/20, Due 11/23) 8,789,777 8,575,855 8,576,718 Second Lien Senior Secured Term Loan (LIBOR + 8.50%, 9.5% Cash, Acquired 09/20, Due 11/24) 1,722,222 1,588,593 1,602,355 10,511,999 10,164,448 10,179,073 GoldenTree Loan Opportunities IX, Limited: Series 2014-9A (0.2%)* (3) (9) (12) Structured Finance Structured Secured Note - Class DR2 (LIBOR + 3.0%, 3.2% Cash, Acquired 03/20, Due 10/29) 1,250,000 916,935 1,231,963 1,250,000 916,935 1,231,963 GTM Intermediate Holdings, Inc. (0.9%)* (7) (23) Medical Equipment Manufacturer Second Lien Loan (11.0% Cash, 1.0% PIK, Acquired 12/20, Due 11/24) 5,115,750 5,064,593 5,064,593 Common Stock (2 shares, Acquired 12/20) 1,078,778 1,078,778 5,115,750 6,143,371 6,143,371 Gulf Finance, LLC (0.1%)* (9) (10) Oil & Gas Exploration & Production First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 08/23) 1,048,305 944,246 788,105 1,048,305 944,246 788,105 Hawaiian Airlines 2020-1 Class B Pass Through Certificates (1.1%)* Airlines Structured Secured Note - Class B (11.3% Cash, Acquired 08/20, Due 09/25) 7,500,000 7,500,000 7,738,286 7,500,000 7,500,000 7,738,286 Heartland, LLC (1.2%)* (7) (9) (12) Commercial Services & Supplies First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 08/19, Due 08/25) 8,831,018 8,667,194 8,582,892 8,831,018 8,667,194 8,582,892 Heilbron (f/k/a Sucsez (Bolt Bidco B.V.)) (1.6%)* (3) (7) (9) Insurance First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 09/19, Due 09/26) (19) 10,413,655 9,216,174 10,266,128 First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 6.3% Cash, Acquired 07/20, Due 09/26) (18) 1,092,757 820,169 1,092,757 11,506,412 10,036,343 11,358,885 Highbridge Loan Management Ltd: Series 2014A-19 (0.1%)* (3) (9) (12) Structured Finance Structured Secured Note - Class E (LIBOR + 6.75%, 7.0% Cash, Acquired 03/20, Due 07/30) 1,000,000 833,749 978,180 1,000,000 833,749 978,180 F-13 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Highpoint Global LLC (0.7%)* (7) (23) Government Services Second Lien Note (12.0% Cash, 2.0% PIK, Acquired 12/20, Due 09/22) $ 5,307,799 $ 5,286,568 $ 5,286,568 5,307,799 5,286,568 5,286,568 Holley Performance Products (Holley Purchaser, Inc.) (2.4%)* (7) (9) (12) Automotive Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 5.0%, 5.2% Cash, Acquired 10/18, Due 10/25) 16,936,387 16,754,221 16,936,387 16,936,387 16,754,221 16,936,387 HTI Technology & Industries (1.70%)* (7) (23) Electronic Component Manufacturing Second Lien Note (12.0% Cash, 4.8% PIK, Acquired 12/20, Due 09/24) 12,619,964 12,115,165 12,115,165 12,619,964 12,115,165 12,115,165 HW Holdco, LLC (Hanley Wood LLC) (1.0%)* (7) (9) (12) Advertising First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 12/18, Due 12/24) 7,527,218 7,396,115 7,527,218 7,527,218 7,396,115 7,527,218 Hyperion Materials & Technologies, Inc. (1.9%)* (7) (9) (12) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 08/19, Due 08/26) 13,855,795 13,643,767 13,700,560 13,855,795 13,643,767 13,700,560 IGL Holdings III Corp. (1.9%)* (7) (9) (12) Commercial Printing First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/20, Due 11/26) 14,025,147 13,635,887 13,626,360 14,025,147 13,635,887 13,626,360 IM Analytics Holding, LLC (d/b/a NVT) (1.0%)* (7) (9) (12) Electronic Instruments & Components First Lien Senior Secured Term Loan (LIBOR + 7.0%, 8.0% Cash, Acquired 11/19, Due 11/23) 8,209,191 8,147,872 6,982,738 Warrant (68,950 units, Acquired 11/19) — — 8,209,191 8,147,872 6,982,738 INOS 19-090 GmbH (1.7%)* (3) (7) (9) (18) Aerospace & Defense First Lien Senior Secured Term Loan (EURIBOR + 6.1%, 6.1% Cash, Acquired 12/20, Due 10/27) 12,275,911 11,888,699 11,934,913 12,275,911 11,888,699 11,934,913 Institutional Shareholder Services, Inc. (0.7%)* (7) (9) (12) Diversified Support Services Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 8.7% Cash, Acquired 03/19, Due 03/27) 4,951,685 4,830,132 4,951,685 4,951,685 4,830,132 4,951,685 International Precision Components (1.0%)* (7) (23) Plastic Injection Molding Second Lien Loan (12.0% Cash, 2.0% PIK, Acquired 12/20, Due 10/24) 7,000,000 6,895,000 6,895,000 7,000,000 6,895,000 6,895,000 ISS#2, LLC (d/b/a Industrial Services Solutions) (0.9%)* (7) (9) (12) Commercial Services & Supplies First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 02/20, Due 02/26) 6,819,551 6,700,432 6,300,583 6,819,551 6,700,432 6,300,583 Jade Bidco Limited (Jane's) (1.7%)* (3) (7) (9) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 4.5%, 4.8% Cash, 2.0% PIK, Acquired 11/19, Due 12/26) (13) 10,538,414 10,291,098 10,353,797 First Lien Senior Secured Term Loan (EURIBOR + 4.5%, 4.5% Cash, 2.0% PIK, Acquired 11/19, Due 12/26) (19) 2,057,007 1,813,166 2,020,971 12,595,421 12,104,264 12,374,768 Jedson Engineering, Inc. (0.4%)* (7) (8) (23) Engineering & Construction Management First Lien Loan (12.0% Cash, 3.0% PIK, Acquired 12/20, Due 06/22) 9,560,423 3,000,000 3,000,000 9,560,423 3,000,000 3,000,000 JetBlue 2019-1 Class B Pass Through Trust (0.7%)* Airlines Structured Secured Note - Class B (8.0% Cash, Acquired 08/20, Due 11/27) 4,721,693 4,721,693 5,048,044 4,721,693 4,721,693 5,048,044 Kano Laboratories LLC (1.4%)* (7) (9) (12) Chemicals, Plastics & Rubber First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 11/20, Due 09/26) 9,873,095 9,589,856 9,584,754 Partnership Equity (227.2 units, Acquired 11/20) 227,198 227,200 9,873,095 9,817,054 9,811,954 Kenan Advantage Group Inc. (0.6%)* (9) (10) Trucking First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 08/18, Due 07/22) 4,265,453 4,263,951 4,217,125 4,265,453 4,263,951 4,217,125 F-14 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Kene Acquisition, Inc. (En Engineering) (1.0%)* (7) (9) (12) Oil & Gas Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 08/19, Due 08/26) $ 7,298,712 $ 7,173,784 $ 7,202,679 7,298,712 7,173,784 7,202,679 Kona Buyer, LLC (4.8%)* (7) (9) (12) High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 12/20, Due 12/27) 35,000,000 34,132,135 34,125,000 35,000,000 34,132,135 34,125,000 LAC Intermediate, LLC (f/k/a Lighthouse Autism Center) (1.3%)* (7) (9) (12) Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 10/18, Due 10/24) 9,218,032 9,083,136 8,987,581 Class A LLC Units (154,320 units, Acquired 10/18) 154,320 184,312 9,218,032 9,237,456 9,171,893 Learfield Communications, LLC (1.0%)* Broadcasting First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 08/20, Due 12/23) (9)(10) 136,803 96,446 123,073 First Lien Senior Secured Term Loan (LIBOR + 3.00%, 3.2% Cash, 10.0% PIK, Acquired 08/20, Due 12/23) (12) 7,181,368 7,117,163 7,133,468 7,318,171 7,213,609 7,256,541 Legal Solutions Holdings (1.3%)* (7) (23) Business Services Senior Subordinated Loan (6.0% Cash, 10.0% PIK, Acquired 12/20, Due 03/22) 10,398,126 9,597,471 9,597,471 10,398,126 9,597,471 9,597,471 MB2 Dental Solutions, LLC (1.0%)* (7) (9) (12) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 6.5%, 6.7% Cash, Acquired 09/19, Due 09/23) 7,443,622 7,381,819 7,443,622 7,443,622 7,381,819 7,443,622 Media Recovery, Inc. (SpotSee) (1.3%)* (7) (9) (12) Containers, Packaging & Glass First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/19, Due 11/25) 9,179,626 8,873,020 9,018,983 9,179,626 8,873,020 9,018,983 Modern Star Holdings Bidco Pty Limited. (1.4%)* (3) (7) (9) (22) Non-durable Consumer Goods First Lien Senior Secured Term Loan (BBSY + 6.25%, 6.8% Cash, Acquired 12/20, Due 12/26) 10,482,797 9,973,821 10,101,881 10,482,797 9,973,821 10,101,881 MSG National Properties (0.3%)* (3) (7) (9) (12) Hotel, Gaming, & Leisure First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.0% Cash, Acquired 11/20, Due 11/25) 2,461,759 2,389,417 2,474,068 2,461,759 2,389,417 2,474,068 Murphy Midco Limited (1.3%)* (3) (7) (9) (16) Media, Diversified & Production First Lien Senior Secured Term Loan (GBP LIBOR + 5.50%, 5.5% Cash, Acquired 11/20, Due 11/27) 9,904,416 9,228,222 9,508,239 9,904,416 9,228,222 9,508,239 Music Reports, Inc. (0.8%)* (7) (9) (10) Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 08/20, Due 08/26) 5,592,972 5,459,912 5,469,461 5,592,972 5,459,912 5,469,461 Neuberger Berman CLO Ltd: Series 2020-36A (0.3%)* (3) (9) (12) Structured Finance Structured Secured Note - Class E (LIBOR + 7.81%, 8.0% Cash, Acquired 03/20, Due 04/33) 2,500,000 2,476,562 2,501,790 2,500,000 2,476,562 2,501,790 NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (1.6%)* (7) (9) (10) Energy Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 10/18, Due 10/25) 11,855,804 11,813,315 11,645,956 11,855,804 11,813,315 11,645,956 Omni Intermediate Holdings, LLC (1.4%)* (7) (9) (10) Transportation First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 12/20, Due 12/26) 10,000,000 9,700,263 9,700,000 10,000,000 9,700,263 9,700,000 Options Technology Ltd. (1.3%)* (3) (7) (9) (12) Computer Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 12/19, Due 12/25) 9,796,552 9,583,342 9,633,049 9,796,552 9,583,342 9,633,049 Pacific Health Supplies Bidco Pty Limited (2.5%)* (3) (7) (9) (21) Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (BBSY + 6.0%, 6.5% Cash, Acquired 12/20, Due 12/25) 18,489,367 17,237,355 17,919,335 18,489,367 17,237,355 17,919,335 Pare SAS (SAS Maurice MARLE) (0.7%)* (3) (7) (9) (19) Health Care Equipment First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, 1.5% PIK, Acquired 12/19, Due 12/26) 4,817,430 4,305,403 4,683,024 4,817,430 4,305,403 4,683,024 F-15 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Patriot New Midco 1 Limited (Forensic Risk Alliance) (1.2%)* (3) (7) (9) Diversified Financial Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 02/20, Due 02/27) (12) $ 4,489,471 $ 4,372,581 $ 4,388,907 First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 02/20, Due 02/27) (18) 4,126,940 3,579,755 4,034,496 8,616,411 7,952,336 8,423,403 PerTronix, LLC (1.1%)* (7) (9) (13) Automotive First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/20, Due 10/26) 8,308,515 8,186,879 8,183,887 8,308,515 8,186,879 8,183,887 Playtika Holding Corp. (0.5%)* (9) (12) Leisure, Amusement & Entertainment First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 03/20, Due 12/24) 3,800,000 3,536,230 3,818,582 3,800,000 3,536,230 3,818,582 Premier Technical Services Group (Project Graphite) (0.4%)* (3) (7) (9) (15) Construction & Engineering First Lien Senior Secured Term Loan (GBP LIBOR + 6.75%, 7.3% Cash, Acquired 08/19, Due 06/26) 3,108,900 2,681,906 3,039,998 3,108,900 2,681,906 3,039,998 Premium Franchise Brands, LLC (3.4%)* (7) (9) (12) Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 12/20, Due 12/26) 25,000,000 24,501,666 24,500,000 25,000,000 24,501,666 24,500,000 Process Equipment, Inc. (ProcessBarron) (0.8%)* (7) (9) (12) Industrial Air & Material Handling Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 03/19, Due 03/25) 6,173,594 6,090,812 5,612,414 6,173,594 6,090,812 5,612,414 Professional Datasolutions, Inc. (PDI) (2.3%)* (7) (9) (12) Application Software First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 03/19, Due 10/24) 16,924,678 16,905,254 16,628,496 16,924,678 16,905,254 16,628,496 PSC UK Pty Ltd. (0.4%)* (3) (7) (9) (15) Insurance Services First Lien Senior Secured Term Loan (GBP LIBOR + 6.0%, 6.5% Cash, Acquired 11/19, Due 10/24) 2,684,817 2,439,292 2,614,299 2,684,817 2,439,292 2,614,299 Questel Unite (3.1%)* (3) (7) (9) (18) Business Services First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 7.3% Cash, Acquired 12/20, Due 12/27) 22,451,369 21,728,443 21,905,058 22,451,369 21,728,443 21,905,058 Radwell International, LLC (1.9%)* (7) (9) (12) Wholesale First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/20, Due 12/26) 14,264,053 13,916,962 13,914,053 14,264,053 13,916,962 13,914,053 Recovery Point Systems, Inc. (1.6%)* (7) (9) (10) Technology First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.5% Cash, Acquired 03/20, Due 07/26) 11,795,776 11,572,084 11,766,287 11,795,776 11,572,084 11,766,287 REP SEKO MERGER SUB LLC (1.2%)* (7) (9) (10) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 12/20, Due 12/26) 8,545,455 8,290,487 8,345,456 8,545,455 8,290,487 8,345,456 RPX Corporation (2.4%)* (7) (9) (12) Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 10/20, Due 10/25) 17,500,000 17,110,715 17,106,250 17,500,000 17,110,715 17,106,250 RR Ltd: Series 2019-6A (0.3%)* (3) (12) Structured Finance Structured Secured Note - Class D (LIBOR + 6.75%, 7.0% Cash, Acquired 03/20, Due 04/30) 2,000,000 1,661,539 2,000,124 2,000,000 1,661,539 2,000,124 Ruffalo Noel Levitz, LLC (1.3%)* (7) (9) (12) Media Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 01/19, Due 05/22) 9,616,736 9,552,719 9,567,718 9,616,736 9,552,719 9,567,718 Safety Products Holdings, LLC (2.5%)* (9) (12) Non-durable Consumer Goods First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 12/20, Due 12/26) (7) 18,108,567 17,559,056 17,555,609 Common Stock (424.1 units, Acquired 12/20) 424,088 424,090 18,108,567 17,983,144 17,979,699 Scaled Agile, Inc. (0.7%)* (7) (9) (10) Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 06/19, Due 06/24) 4,845,720 4,807,839 4,797,263 4,845,720 4,807,839 4,797,263 F-16 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Serta Simmons Bedding LLC (1.5%)* (9) (10) Home Furnishings Super Priority First Out (LIBOR + 7.5%, 8.5% Cash, Acquired 6/20, Due 08/23) $ 7,424,499 $ 7,234,063 $ 7,498,744 Super Priority Second Out (LIBOR + 7.5%, 8.5% Cash, Acquired 6/20, Due 08/23) 3,643,817 3,379,870 3,272,913 11,068,316 10,613,933 10,771,657 SISU ACQUISITIONCO., INC. (2.2%)* (7) (9) (12) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/20, Due 12/26) 16,132,835 15,811,282 15,810,178 16,132,835 15,811,282 15,810,178 SMA Holdings, Inc. (1.0%)* (7) (23) Consulting First Lien Loan (11.0% Cash, Acquired 12/20, Due 06/24) 7,000,000 6,720,000 6,720,000 Warrants (2.0 units, Acquired 12/20) 286,781 286,781 7,000,000 7,006,781 7,006,781 Smile Brands Group Inc. (2.1%)* (7) (9) (12) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 5.17%, 5.4% Cash, Acquired 10/18, Due 10/24) 5,880,607 5,842,184 5,824,154 First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/20, Due 10/24) 9,310,993 9,030,258 9,024,500 15,191,600 14,872,442 14,848,654 SN BUYER, LLC (4.8%)* (7) (9) (12) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 12/20, Due 11/26) 35,000,000 34,304,393 34,300,000 35,000,000 34,304,393 34,300,000 Springbrook Software (SBRK Intermediate, Inc.) (1.3%)* (7) (9) (12) Enterprise Software & Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 12/19, Due 12/26) 9,349,719 9,152,983 9,201,599 9,349,719 9,152,983 9,201,599 SSCP Pegasus Midco Limited (2.3%)* (3) (7) (9) (16) Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (GBP LIBOR + 6.75%, 6.8% Cash, Acquired 12/20, Due 11/27) 17,664,989 16,498,614 16,733,353 17,664,989 16,498,614 16,733,353 Syniverse Holdings, Inc. (2.2%)* (9) (12) Technology Distributors First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 08/18, Due 03/23) 17,480,454 16,048,735 15,749,365 17,480,454 16,048,735 15,749,365 Team Health Holdings, Inc. (0.8%)* (9) (10) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 2.75%, 3.8% Cash, Acquired 09/18, Due 02/24) 6,822,785 6,659,174 6,058,906 6,822,785 6,659,174 6,058,906 The Hilb Group, LLC (2.1%)* (7) (9) Insurance Brokerage First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 12/19, Due 12/26) (11) 11,667,719 11,413,365 11,541,707 First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 12/19, Due 12/26) (12) 3,602,001 3,374,934 3,373,303 15,269,720 14,788,299 14,915,010 Total Safety U.S. Inc. (0.9%)* (12) Diversified Support Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/19, Due 08/25) 6,857,482 6,611,003 6,576,325 6,857,482 6,611,003 6,576,325 Transit Technologies LLC (0.7%)* (7) (9) (12) Software First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.0% Cash, Acquired 02/20, Due 02/25) 6,035,305 5,859,123 5,221,746 6,035,305 5,859,123 5,221,746 Transportation Insight, LLC (3.3%)* (7) (9) (12) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.5%, 4.6% Cash, Acquired 08/18, Due 12/24) 24,506,875 24,346,335 23,899,105 24,506,875 24,346,335 23,899,105 Truck-Lite Co., LLC (3.0%)* (7) (9) (12) Automotive Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 12/19, Due 12/26) 22,352,885 21,960,470 21,791,827 22,352,885 21,960,470 21,791,827 Trystar, LLC (2.5%)* (7) (9) (12) Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 09/18, Due 09/23) 17,596,398 17,384,658 17,288,461 Class A LLC Units (384.5 units, Acquired 09/18) 395,995 339,474 17,596,398 17,780,653 17,627,935 F-17 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Tuf-Tug, Inc. (0.1%)* (7) (23) Safety Equipment Manufacturer Common Stock (24.6 shares, Acquired 12/20) $ 385,047 $ 385,047 385,047 385,047 Turf Products, LLC (1.2%)* (7) (23) Landscaping & Irrigation Equipment Distributor Senior Subordinated Debt (10.0% Cash, Acquired 12/20, Due 10/23) $ 8,697,056 8,383,962 8,383,962 8,697,056 8,383,962 8,383,962 U.S. Gas & Electric, Inc. (0.2%)* (7) (23) Energy Services Second Lien Loan (9.5% Cash, Acquired 12/20, Due 07/25) 2,285,250 1,785,250 1,785,250 Second Lien Loan (9.5% Cash, Acquired 12/20, Due 07/25) (24) 2,485,469 — — 4,770,719 1,785,250 1,785,250 U.S. Silica Company (0.2%)* (3) (9) (10) Metal & Glass Containers First Lien Senior Secured Term Loan (LIBOR + 4.0%, 5.0% Cash, Acquired 08/18, Due 05/25) 1,487,525 1,490,312 1,299,724 1,487,525 1,490,312 1,299,724 UKFast Leaders Limited (3.3%)* (3) (7) (9) (14) Technology First Lien Senior Secured Term Loan (GBP LIBOR + 6.75%, 6.8% Cash, Acquired 09/20, Due 9/27) 24,226,278 22,140,865 23,625,466 24,226,278 22,140,865 23,625,466 USF Holdings LLC (U.S. Farathane, LLC) (0.4%)* (9) (12) Auto Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 08/18, Due 12/21) 3,088,580 3,092,541 2,849,214 3,088,580 3,092,541 2,849,214 USLS Acquisition, Inc. (f/k/a US Legal Support, Inc.) (2.1%)* (7) (9) (12) Legal Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/18, Due 11/24) 16,388,428 16,165,710 15,226,488 16,388,428 16,165,710 15,226,488 Utac Ceram (0.2%)* (3) (7) (9) (18) Business Services First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 09/20, Due 09/27) 1,713,064 1,524,242 1,651,143 1,713,064 1,524,242 1,651,143 Validity, Inc. (0.6%)* (7) (9) (10) IT Consulting & Other Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 4.9% Cash, Acquired 07/19, Due 05/25) 5,025,862 4,896,882 4,586,098 5,025,862 4,896,882 4,586,098 W2O Holdings, Inc. (0.0%)* (7) (9) Healthcare Technology Undrawn Delayed Draw Term Loan (LIBOR + 5.0%, 5.0% Cash, Acquired 10/20, Due 06/25) — (115,981) (104,214) — (115,981) (104,214) Winebow Group, LLC, (The) (2.1%)* (9) (10) Consumer Goods First Lien Senior Secured Term Loan (LIBOR + 3.75%, 4.8% Cash, Acquired 11/19, Due 07/21) 10,599,445 10,113,510 9,690,543 Second Lien Senior Secured Term Loan (LIBOR + 7.5%, 8.5% Cash, Acquired 10/19, Due 01/22) 7,141,980 4,813,864 5,713,584 17,741,425 14,927,374 15,404,127 World 50, Inc. (1.7%)* (7) (9) (10) Professional Services First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 01/20, Due 01/26) 3,313,191 3,218,141 3,313,191 First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 09/20, Due 01/26) 9,100,607 8,905,025 8,940,436 12,413,798 12,123,166 12,253,627 Subtotal Non–Control / Non–Affiliate Investments (184.7%) 1,378,776,392 1,318,614,617 1,325,783,281 Affiliate Investments: (4) Advantage Insurance, Inc. (0.8%)* (7) (23) Banking, Finance, Insurance, & Real Estate Preferred Stock (587,001 shares, Acquired 12/20) 5,946,641 5,946,641 5,946,641 5,946,641 Jocassee Partners LLC (3.2%)* (3) Investment Funds & Vehicles 9.1% Member Interest, Acquired 06/19 20,158,270 22,623,820 20,158,270 22,623,820 JSC Tekers Holdings (0.7%)* (3) (7) (23) Real Estate Management Preferred Stock (9,159,085 shares, Acquired 12/20) 4,753,000 4,753,000 Common Stock (3,201 shares, Acquired 12/20) — — 4,753,000 4,753,000 F-18 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Portfolio Company (6) Industry Type of Investment (1) (2) (6) Principal Amount Cost Fair Value Security Holdings B.V. (4.9%)* (3) (7) (23) Electrical Engineering Bridge Loan (5.0% PIK, Acquired 12/20, Due 05/22) $ 5,187,506 $ 5,187,508 $ 5,187,508 Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) 8,746,454 8,746,454 8,746,454 Common Stock (1,099.5 shares, Acquired 12/20) 21,264,000 21,329,370 13,933,960 35,197,962 35,263,332 Thompson Rivers LLC (1.4%)* (3) Investment Funds & Vehicles 10% Member Interest, Acquired 06/20 10,000,000 10,011,840 10,000,000 10,011,840 Subtotal Affiliate Investments (11.0%) 13,933,960 76,055,873 78,598,633 Control Investments: (5) MVC Automotive Group Gmbh (2.3%)* (3) (7) (23) Other Diversified Financial Services Bridge Loan (6.0% Cash, Acquired 12/20, Due 12/21) 7,149,166 7,149,166 7,149,166 Common Equity Interest (18,000 shares, Acquired 12/20) 9,553,000 9,582,368 7,149,166 16,702,166 16,731,534 MVC Private Equity Fund LP (1.3%)* (3) (23) Investment Funds & Vehicles General Partnership Interest 224,978 224,978 Limited Partnership Interest 8,899,284 8,899,284 9,124,262 9,124,262 Subtotal Control Investments (3.6%) 7,149,166 25,826,428 25,855,796 Short-Term Investments: BlackRock, Inc. (4.2%)* Money Market Fund BlackRock Liquidity Temporary Fund (0.08% yield) 30,000,000 30,000,000 30,000,000 30,000,000 JPMorgan Chase & Co. (5.0%)* Money Market Fund JPMorgan Prime Money Market Fund (0.09% yield) 35,558,227 35,558,227 35,558,227 35,558,227 Subtotal Short-Term Investments (9.1%) 65,558,227 65,558,227 Total Investments, December 31, 2020 (208.4%)* $ 1,399,859,518 $ 1,486,055,145 $ 1,495,795,937 F-19 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Derivative Instruments Credit Support Agreement(a)(b)(d) Description Counter Party Settlement Date(c) Notional Amount Value Unrealized Appreciation (Depreciation) Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 13,600,000 $ — Total Credit Support Agreement, December 31, 2020 $ — (a) The Credit Support Agreement covers all of the investments acquired by the Company from MVC Capital, Inc. ("MVC") in connection with the MVC Acquisition (as defined in “Note 11 – MVC Capital, Inc. Acquisition”) and any investments received by the Company in connection with the restructuring, amendment, extension or other modification (including the issuance of new securities) of any of the investments acquired by the Company from MVC in connection with the MVC Acquisition (collectively, the “Reference Portfolio”). Each investment that is included in the Reference Portfolio is denoted in the above Schedule of Investments with footnote (23). (b) The Company and Barings LLC entered into a Credit Support Agreement pursuant to which Barings LLC agreed to provide credit support to the Company in the amount of up to $23.0 million. (c) Settlement Date means the earlier of (1) January 1, 2031 and (2) the date on which the entire Reference Portfolio has been realized or written off. (d) See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the Credit Support Agreement. Foreign Currency Forward Contracts: Description Notional Amount to be Purchased Notional Amount to be Sold Settlement Date Unrealized Appreciation (Depreciation) Foreign currency forward contract (AUD) $8,471,304 A$11,378,670 01/05/21 $ (309,049) Foreign currency forward contract (AUD) A$11,378,670 $8,610,504 01/05/21 169,849 Foreign currency forward contract (AUD) $148,019 A$193,882 04/06/21 (1,698) Foreign currency forward contract (EUR) $13,472,749 €11,406,604 01/05/21 (483,801) Foreign currency forward contract (EUR) €11,406,604 $13,518,023 01/05/21 438,526 Foreign currency forward contract (EUR) $561,754 €456,604 04/06/21 1,944 Foreign currency forward contract (GBP) $13,554,607 £10,215,299 01/05/21 (409,190) Foreign currency forward contract (GBP) £10,215,299 $13,717,678 01/05/21 246,118 Foreign currency forward contract (GBP) $13,109,849 £9,672,758 04/06/21 (119,769) Foreign currency forward contract (SEK) $141,603 1,259,406kr 01/05/21 (11,748) Foreign currency forward contract (SEK) 1,259,406kr $152,396 01/05/21 955 Foreign currency forward contract (SEK) $164,325 1,356,628kr 04/06/21 (1,028) Total Foreign Currency Forward Contracts, December 31, 2020 $ (478,891) _______________________________________________________________ * Fair value as a percentage of net assets. (1) All debt investments are income producing, unless otherwise noted. Equity and any equity-linked investments are non-income producing, unless otherwise noted. The Company's Board of Directors (the "Board") determined in good faith that all investments were valued at fair value in accordance with the Company's valuation policies and procedures and the Investment Company Act of 1940, as amended, (the "1940 Act") based on, among other things, the input of the Company's external investment adviser, Barings LLC ("Barings"), the Company’s Audit Committee and independent valuation firms that have been engaged to assist in the valuation of the Company's middle-market investments. In addition, all debt investments are variable rate investments unless otherwise noted. Index-based floating interest rates are generally subject to a contractual minimum interest rate. A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to LIBOR, EURIBOR, GBP LIBOR, BBSY, STIBOR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically reset semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. (2) All of the Company’s portfolio company investments (including joint venture and short-term investments), which as of December 31, 2020 represented 208.4 % of the Company’s net assets, are subject to legal restrictions on sales. The acquisition date represents the date of the Company's initial investment in the relevant portfolio company. (3) Investment is not a qualifying investment as defined under Section 55(a) of the 1940 Act. Non-qualifying assets repres ent 23.4% of tot al investments at fair value as of December 31, 2020. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets. If at any time qualifying assets do not represent at least 70% of the Company's total assets, the Company will be precluded from acquiring any additional non-qualifying asset until such time as it complies with the requirements of Section 55(a). F-20 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 (4) As defined in the 1940 Act, the Company is deemed to be an “affiliated person” of the portfolio company as the Company owns between 5% or more, up to 25%(inclusive), of the portfolio company's voting securities (“non-controlled affiliate”). Transactions related to investments in non-controlled "Affiliate Investments" for the year ended December 31, 2020 were as follows: Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2019 Value Gross Additions (c) Gross Reductions (d) December 31, 2020 Value Portfolio Company Type of Investment(a) Advantage Insurance, Inc. (e) Preferred Stock (587,001 shares) $ — $ — $ — $ — $ 5,946,641 $ — $ 5,946,641 — — — — 5,946,641 — 5,946,641 Jocassee Partners LLC 9.1% Member Interest — 2,394,007 — 10,229,813 12,394,007 — 22,623,820 — 2,394,007 — 10,229,813 12,394,007 — 22,623,820 JSC Tekers Holdings (e) Common Stock (3,201 shares) — — — — — — — Preferred Stock (9,159,085 shares) — — — — 4,753,000 — 4,753,000 — — — — 4,753,000 — 4,753,000 Security Holdings B.V (e) Bridge Loan (5.0% PIK) — — — — 5,187,508 — 5,187,508 Senior Subordinated Loan (3.1% PIK) — — — — 8,746,454 — 8,746,454 Common Stock (1,099.5 shares) — 65,370 — — 21,329,370 — 21,329,370 — 65,370 — — 35,263,332 — 35,263,332 Thompson Rivers LLC 10% Member Interest — 11,840 — — 10,011,840 — 10,011,840 — 11,840 — — 10,011,840 — 10,011,840 Total Affiliate Investments $ — $ 2,471,217 $ — $ 10,229,813 $ 68,368,820 $ — $ 78,598,633 (a) Equity and equity-linked investments are non-income producing, unless otherwise noted. (b) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Affiliate category. (c) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation. (d) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation. (e) The fair value of the investment was determined using significant unobservable inputs. (5) As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” and “control” the portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the year ended December 31, 2020 in which the portfolio company is deemed to be a "Control Investment" of the Company are as follows: F-21 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2020 Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2019 Value Gross Additions (c) Gross Reductions (d) December 31, 2020 Value Portfolio Company Type of Investment(a) MVC Automotive Group GmbH (e) Common Equity Interest (18,000 shares) $ — $ 29,368 $ — $ — $ 9,582,368 $ — $ 9,582,368 Bridge Loan (6.0% PIK) — — 9,532 — 7,149,166 — 7,149,166 — 29,368 9,532 — 16,731,534 — 16,731,534 MVC Private Equity Fund LP (e) Limited Partnership Interest — — — — 8,899,284 — 8,899,284 General Partnership Interest — — 5,292 — 224,978 — 224,978 — — 5,292 — 9,124,262 — 9,124,262 Total Control Investments $ — $ 29,368 $ 14,824 $ — $ 25,855,796 $ — $ 25,855,796 (a) Equity and equity-linked investments are non-income producing, unless otherwise noted. (b) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Control category. (c) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation. (d) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation. (e) The fair value of the investment was determined using significant unobservable inputs. (6) Some or all of the investment is or will be encumbered as security for the Company's $800.0 million senior secured credit facility with ING Capital LLC initially entered into in February 2019 (as amended, restated and otherwise modified from time to time, the "February 2019 Credit Facility"). (7) The fair value of the investment was determined using significant unobservable inputs. (8) Non-accrual investment. (9) Debt investment includes interest rate floor feature. (10) The interest rate on these loans is subject to 1 Month LIBOR, which as of December 31, 2020 w as 0.14388%. (11) The interest rate on these loans is subject to 2 Month LIBOR, which as of December 31, 2020 was 0.19038%. (12) The interest rate on these loans is subject to 3 Month LIBOR, which as of December 31, 2020 was 0.23838%. (13) The interest rate on these loans is subject to 6 Month LIBOR, which as of December 31, 2020 was 0.25763%. (14) The interest rate on these loans is subject to 2 month GBP LIBOR, which as of December 31, 2020 was 0.06088%. (15) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of December 31, 2020 was 0.02550%. (16) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of December 31, 2020 was 0.02988%. (17) The interest rate on these loans is subject to 1 Month EURIBOR, which as of December 31, 2020 was -0.55400%. (18) The interest rate on these loans is subject to 3 Month EURIBOR, which as of December 31, 2020 was -0.54500%. (19) The interest rate on these loans is subject to 6 Month EURIBOR, which as of December 31, 2020 was -0.526%. (20) The interest rate on these loans is subject to 3 Month STIBOR, which as of December 31, 2020 was -0.08500%. (21) The interest rate on these loans is subject to 1 Month BBSY, which as of December 31, 2020 was 0.01000%. (22) The interest rate on these loans is subject to 3 Month BBSY, which as of December 31, 2020 was 0.01000%. (23) Investment was purchased as part of the MVC Acquisition and is part of the Reference Portfolio for purposes of the Credit Support Agreement. (24) In 2017, MVC Capital, Inc. received $5.7 million of 9.5% second lien callable notes due in 2025, in lieu of an escrow to satisfy any indemnification claims associated with MVC Capital, Inc's sale of its equity investment in U.S. Gas & Electric. Effective January 1, 2018, the cost basis of the U.S. Gas second lien loan was decreased by approximately $3.0 million due to a working capital adjustment. This loan is still subject to indemnification adjustments. See accompanying notes. F-22 Barings BDC, Inc. Consolidated Schedule of Investments December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value Non–Control / Non–Affiliate Investments: 1WorldSync, Inc. (3.9%)* (5) (7) (8) IT Consulting & Other Services First Lien Senior Secured Term Loan (LIBOR + 7.25%, 9.2% Cash, Acquired 07/19, Due 07/25) $ 22,445,913 $ 22,024,832 $ 22,000,839 22,445,913 22,024,832 22,000,839 24 Hour Fitness Worldwide, Inc. (0.6%)* (4) (6) (8) Leisure Facilities First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 05/25) 4,612,441 4,652,772 3,475,889 4,612,441 4,652,772 3,475,889 Accelerate Learning, Inc. (1.3%)* (5) (7) (8) Education Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.4% Cash, Acquired 12/18, Due 12/24) 7,567,964 7,438,417 7,271,525 7,567,964 7,438,417 7,271,525 Accurus Aerospace Corporation (4.1%)* (5) (7) (8) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.4% Cash, Acquired 10/18, Due 10/24) 24,750,000 24,442,153 23,423,629 24,750,000 24,442,153 23,423,629 Acrisure, LLC (0.9%)* (6) (8) Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.2% Cash, Acquired 08/18, Due 11/23) 4,961,929 4,986,542 4,968,131 4,961,929 4,986,542 4,968,131 ADMI Corp. (0.6%)* (6) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 08/18, Due 04/25) 3,447,500 3,458,266 3,449,672 3,447,500 3,458,266 3,449,672 Aftermath Bidco Corporation (2.1%)* (5) (7) (8) Professional Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.8% Cash, Acquired 04/19, Due 04/25) 12,259,030 12,010,502 12,016,813 12,259,030 12,010,502 12,016,813 AlixPartners LLP (0.9%)* (6) (8) Investment Banking & Brokerage First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 04/24) 4,961,735 4,980,608 4,985,005 4,961,735 4,980,608 4,985,005 Alliant Holdings LP (0.9%)* (6) (8) Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 05/25) 4,922,531 4,929,349 4,919,775 4,922,531 4,929,349 4,919,775 American Dental Partners, Inc. (1.7%)* (5) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.2% Cash, Acquired 11/18, Due 03/23) 9,900,000 9,880,958 9,751,500 9,900,000 9,880,958 9,751,500 American Scaffold, Inc. (1.7%)* (5) (7) (8) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.2% Cash, Acquired 09/19, Due 09/25) 9,784,844 9,574,185 9,576,821 9,784,844 9,574,185 9,576,821 Anju Software, Inc. (2.4%)* (5) (7) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.4% Cash, Acquired 02/19, Due 02/25) 13,820,065 13,505,384 13,485,435 13,820,065 13,505,384 13,485,435 Apex Tool Group, LLC (1.2%)* (4) (6) (8) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.3% Cash, Acquired 08/18, Due 08/24) 7,145,435 7,014,166 7,032,680 7,145,435 7,014,166 7,032,680 Applied Systems Inc. (0.9%)* (6) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 09/19, Due 09/24) 4,963,321 4,993,617 4,978,360 4,963,321 4,993,617 4,978,360 AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.9%)* (5) (7) (8) High Tech Industries Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.1% Cash, Acquired 10/18, Due 05/24) 4,959,088 4,857,998 4,859,316 4,959,088 4,857,998 4,859,316 Arch Global Precision LLC (1.4%)* (5) (7) (8) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.6% Cash, Acquired 04/19, Due 04/26) 8,285,058 8,160,532 8,202,739 8,285,058 8,160,532 8,202,739 Armstrong Transport Group (Pele Buyer, LLC ) (0.8%)* (5) (7) (8) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.5% Cash, Acquired 06/19, Due 06/24) 4,679,427 4,581,840 4,575,617 4,679,427 4,581,840 4,575,617 F-23 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value Ascend Learning, LLC (0.9%)* (6) (8) IT Consulting & Other Services First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 07/24) $ 4,961,928 $ 4,971,130 $ 4,989,864 4,961,928 4,971,130 4,989,864 Ascensus Specialties, LLC (1.4%)* (5) (7) (8) Specialty Chemicals First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.4% Cash, Acquired 09/19, Due 09/26) 8,092,810 8,014,212 8,023,386 8,092,810 8,014,212 8,023,386 ASPEQ Heating Group LLC (1.8%)* (5) (7) (8) Building Products, Air and Heating First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.2% Cash, Acquired 11/19, Due 11/25) 10,535,858 10,381,002 10,403,101 10,535,858 10,381,002 10,403,101 AssuredPartners Capital, Inc. (0.9%)* (6) (8) Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 10/24) 4,957,568 4,966,915 4,968,722 4,957,568 4,966,915 4,968,722 Auxi International (1.0%)* (3) (5) (7) (8) Commercial Finance First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/19, Due 12/26) 5,578,822 5,359,131 5,429,359 5,578,822 5,359,131 5,429,359 Avantor, Inc. (0.3%)* (3) (6) (8) Health Care Equipment First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 11/24) 1,477,017 1,494,467 1,489,320 1,477,017 1,494,467 1,489,320 Aveanna Healthcare Holdings, Inc. (0.8%)* (6) (8) Health Care Facilities First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.0% Cash, Acquired 10/18, Due 03/24) 1,473,559 1,457,678 1,415,545 First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.3% Cash, Acquired 10/18, Due 03/24) 3,529,748 3,530,607 3,400,700 5,003,307 4,988,285 4,816,245 AVSC Holding Corp. (1.4%)* (4) (5) (6) (8) Advertising First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.1% Cash, Acquired 08/18, Due 03/25) 7,879,699 7,843,898 7,840,301 7,879,699 7,843,898 7,840,301 Bausch Health Companies Inc. (0.8%)* (3) (6) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.7% Cash, Acquired 08/18, Due 05/25) 4,581,718 4,600,701 4,604,627 4,581,718 4,600,701 4,604,627 BDP International, Inc. (f/k/a BDP Buyer, LLC) (4.3%)* (5) (7) (8) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.7% Cash, Acquired 12/18, Due 12/24) 24,750,000 24,326,180 24,449,263 24,750,000 24,326,180 24,449,263 Benify (Bennevis AB) (0.2%)* (3) (5) (7) (8) High Tech Industries First Lien Senior Secured Term Loan (STIBOR + 5.75%, 5.85% Cash, Acquired 07/19, Due 07/26) 1,394,029 1,363,957 1,373,219 1,394,029 1,363,957 1,373,219 Berlin Packaging LLC (1.5%)* (4) (5) (6) (8) Forest Products /Containers First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.7% Cash, Acquired 08/18, Due 11/25) 8,372,500 8,389,597 8,297,734 8,372,500 8,389,597 8,297,734 Blackhawk Network Holdings Inc. (0.9%)* (6) (8) Data Processing & Outsourced Services First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 11/18, Due 06/25) 4,962,217 4,962,217 4,957,056 4,962,217 4,962,217 4,957,056 Brown Machine Group Holdings, LLC (0.9%)* (5) (7) (8) Industrial Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.2% Cash, Acquired 10/18, Due 10/24) 5,286,022 5,231,847 5,016,305 5,286,022 5,231,847 5,016,305 Cadent, LLC (f/k/a Cross MediaWorks) (1.4%)* (5) (7) (8) Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.0% Cash, Acquired 09/18, Due 09/23) 7,866,556 7,806,344 7,827,224 7,866,556 7,806,344 7,827,224 Capital Automotive LLC (0.9%)* (6) (8) Automotive Retail First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.3% Cash, Acquired 09/18, Due 03/24) 4,987,277 4,999,916 4,998,199 4,987,277 4,999,916 4,998,199 CM Acquisitions Holdings Inc. (f/k/a Campaign Monitor (UK) Limited) (3.5%)* (5) (7) (8) Internet & Direct Marketing First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.5% Cash, Acquired 05/19, Due 05/25) 20,537,685 20,188,267 20,161,398 20,537,685 20,188,267 20,161,398 Confie Seguros Holding II Co. (0.4%)* (5) (7) (8) Insurance Brokerage Services Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 10.4% Cash, Acquired 10/19, Due 11/25) 2,500,000 2,350,797 2,312,500 2,500,000 2,350,797 2,312,500 F-24 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value Contabo Finco S.À R.L (0.9%)* (3) (5) (7) (8) Internet Software and Services First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.75% Cash, Acquired 10/19, Due 10/26) $ 5,069,246 $ 4,853,087 $ 4,900,448 5,069,246 4,853,087 4,900,448 Container Store Group, Inc., (The) (0.5%)* (6) (7) (8) Retail First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.8% Cash, Acquired 09/18, Due 09/23) 2,929,197 2,931,249 2,753,445 2,929,197 2,931,249 2,753,445 Core & Main LP (0.7%)* (6) (8) Building Products First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 08/24) 3,979,695 3,995,692 3,978,024 3,979,695 3,995,692 3,978,024 CPG Intermediate LLC (0.4%)* (6) (8) Specialty Chemicals First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 11/24) 2,110,623 2,112,734 2,122,506 2,110,623 2,112,734 2,122,506 CPI International Inc. (0.8%)* (6) (8) Electronic Components First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 09/18, Due 07/24) 4,747,070 4,753,808 4,557,187 4,747,070 4,753,808 4,557,187 Dart Buyer, Inc. (1.8%)* (3) (5) (7) (8) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.2% Cash, Acquired 04/19, Due 04/25) 10,571,782 10,307,197 10,315,912 10,571,782 10,307,197 10,315,912 Dimora Brands, Inc. (0.5%)* (6) (8) Building Products First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 08/24) 2,941,442 2,944,373 2,919,381 2,941,442 2,944,373 2,919,381 Distinct Holdings, Inc. (1.3%)* (5) (7) (8) Systems Software First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.7% Cash, Acquired 04/19, Due 12/23) 7,592,719 7,509,950 7,519,228 7,592,719 7,509,950 7,519,228 Duff & Phelps Corporation (1.2%)* (4) (6) (8) Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 09/18, Due 02/25) 6,754,286 6,769,081 6,725,310 6,754,286 6,769,081 6,725,310 Edelman Financial Center, LLC, The (f/k/a Edelman Financial Group, Inc.) (0.9%)* (6) (8) Investment Banking & Brokerage First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 09/18, Due 07/25) 4,962,406 4,999,143 4,986,176 4,962,406 4,999,143 4,986,176 Endo International PLC (1.3%)* (3) (4) (6) (8) Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.1% Cash, Acquired 09/18, Due 04/24) 7,878,788 7,939,415 7,524,242 7,878,788 7,939,415 7,524,242 Exeter Property Group, LLC (2.2%)* (5) (7) (8) Real Estate First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.2% Cash, Acquired 02/19, Due 08/24) 12,437,500 12,276,532 12,351,037 12,437,500 12,276,532 12,351,037 ExGen Renewables IV, LLC (f/k/a Exelon Corp.) (0.5%)* (3) (6) (8) Electric Utilities First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.9% Cash, Acquired 09/18, Due 11/24) 2,865,257 2,888,576 2,822,278 2,865,257 2,888,576 2,822,278 Eyemart Express (0.6%)* (6) (8) Retail First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 08/24) 3,452,217 3,462,081 3,456,463 3,452,217 3,462,081 3,456,463 Fieldwood Energy LLC (1.5%)* (4) (5) (6) (8) Oil & Gas Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.2% Cash, Acquired 08/18, Due 04/22) 10,000,000 10,065,208 8,322,200 10,000,000 10,065,208 8,322,200 Filtration Group Corporation (0.8%)* (6) (8) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 03/25) 4,774,230 4,804,208 4,788,840 4,774,230 4,804,208 4,788,840 Flex Acquisition Holdings, Inc. (1.7%)* (4) (5) (6) (8) Paper Packaging First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.3% Cash, Acquired 08/18, Due 06/25) 9,782,731 9,800,160 9,695,077 9,782,731 9,800,160 9,695,077 Frazer Consultants, LLC (d/b/a Tribute Technology) (1.3%)* (5) (7) (8) Software Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.7% Cash, Acquired 11/19, Due 08/23) 7,742,985 7,667,700 7,684,869 7,742,985 7,667,700 7,684,869 F-25 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value Graftech International Ltd. (1.6%)* (3) (4) (6) (7) (8) Specialty Chemicals First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 02/25) $ 9,013,889 $ 9,081,525 $ 8,980,087 9,013,889 9,081,525 8,980,087 Gulf Finance, LLC (0.1%)* (4) (8) Oil & Gas Exploration & Production First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.0% Cash, Acquired 10/18, Due 08/23) 1,058,979 920,988 826,003 1,058,979 920,988 826,003 Harbor Freight Tools USA Inc.(1.0%)* (6) (8) Specialty Stores First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.3% Cash, Acquired 08/18, Due 08/23) 5,979,675 5,931,148 5,951,870 5,979,675 5,931,148 5,951,870 Hayward Industries, Inc. (1.4%)* (4) (6) (8) Leisure Products First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 08/24) 8,221,922 8,247,578 8,147,924 8,221,922 8,247,578 8,147,924 Heartland, LLC (0.9%)* (5) (7) (8) Commercial Services & Supplies First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.7% Cash, Acquired 08/19, Due 08/25) 5,504,030 5,260,931 5,280,431 5,504,030 5,260,931 5,280,431 Heilbron (f/k/a Sucsez (Bolt Bidco B.V.)) (1.2%)* (3) (5) (7) (8) Insurance First Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 09/19, Due 09/26) 6,948,082 6,633,562 6,713,253 6,948,082 6,633,562 6,713,253 Hertz Corporation (The) (1.0%)* (3) (6) (8) Rental & Leasing Services First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.6% Cash, Acquired 09/18, Due 06/23) 5,814,910 5,806,679 5,845,206 5,814,910 5,806,679 5,845,206 Holley Performance Products (Holley Purchaser, Inc.) (3.9%)* (5) (7) (8) Packaging First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.9% Cash, Acquired 10/18, Due 10/25) 22,309,650 22,020,784 22,015,260 22,309,650 22,020,784 22,015,260 Hub International Limited (0.9%)* (6) (8) Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.7% Cash, Acquired 08/18, Due 04/25) 4,962,217 4,966,855 4,955,666 4,962,217 4,966,855 4,955,666 HW Holdco, LLC (f/k/a Hanley Wood LLC) (1.3%)* (5) (7) (8) Advertising First Lien Senior Secured Term Loan (LIBOR + 6.25%, 8.1% Cash, Acquired 12/18, Due 12/24) 7,584,677 7,422,931 7,447,061 7,584,677 7,422,931 7,447,061 Hyland Software Inc. (0.9%)* (6) (8) Technology Distributors First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 09/18, Due 07/24) 4,962,312 5,001,673 4,984,046 4,962,312 5,001,673 4,984,046 Hyperion Materials & Technologies, Inc. (2.4%)* (5) (7) (8) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.3% Cash, Acquired 08/19, Due 08/26) 13,995,753 13,751,206 13,873,283 13,995,753 13,751,206 13,873,283 IM Analytics Holding, LLC (d/b/a NVT) (1.6%)* (5) (7) (8) Electronic Instruments and Components First Lien Senior Secured Term Loan (LIBOR + 6.5%, 8.4% Cash, Acquired 11/19, Due 11/23) 9,292,112 9,201,220 9,222,019 Warrant (77,265 units, Acquired 11/19) — — 9,292,112 9,201,220 9,222,019 Immucor Inc. (0.4%)* (4) (8) Healthcare First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.9% Cash, Acquired 09/18, Due 06/21) 2,466,061 2,486,174 2,454,496 2,466,061 2,486,174 2,454,496 Infor Software Parent, LLC (0.9%)* (6) (8) Systems Software First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.7% Cash, Acquired 08/18, Due 02/22) 4,970,073 4,976,381 4,989,606 4,970,073 4,976,381 4,989,606 Institutional Shareholder Services, Inc. (0.8%)* (5) (7) (8) Diversified Support Services Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 10.4% Cash, Acquired 03/19, Due 03/27) 4,951,685 4,816,340 4,840,149 4,951,685 4,816,340 4,840,149 Internet Brands, Inc.(f/k/a Micro Holding Corp.) (0.7%)* (6) (8) Entertainment First Lien Senior Secured Term Loan (LIBOR + 3.75%, 5.5% Cash, Acquired 08/18, Due 09/24) 3,969,543 3,992,088 3,973,949 3,969,543 3,992,088 3,973,949 F-26 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value ION Trading Technologies Ltd. (2.5%)* (3) (4) (6) (8) Electrical Components & Equipment First Lien Senior Secured Term Loan (LIBOR + 4.0%, 6.1% Cash, Acquired 08/18, Due 11/24) $ 14,773,869 $ 14,745,732 $ 14,145,980 14,773,869 14,745,732 14,145,980 IRB Holding Corporation (0.7%)* (6) (8) Food Retail First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 08/18, Due 02/25) 3,969,697 3,984,302 3,990,657 3,969,697 3,984,302 3,990,657 Jade Bidco Limited (4.2%)* (3) (5) (7) (8) Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.9% Cash, Acquired 11/19, Due 12/26) 20,933,517 20,363,170 20,377,010 First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 11/19, Due 12/26) 3,748,582 3,581,938 3,648,928 24,682,099 23,945,108 24,025,938 Jaguar Holding Company I (0.9%)* (6) (8) Life Sciences Tools & Services First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.3% Cash, Acquired 08/18, Due 08/22) 4,922,680 4,923,566 4,945,620 4,922,680 4,923,566 4,945,620 Kenan Advantage Group Inc. (1.1%)* (4) (5) (6) (8) Trucking First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 07/22) 6,203,297 6,200,149 6,145,172 6,203,297 6,200,149 6,145,172 Kene Acquisition, Inc. (1.1%)* (5) (7) (8) Oil & Gas Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.2% Cash, Acquired 08/19, Due 08/26) 6,635,895 6,488,912 6,490,475 6,635,895 6,488,912 6,490,475 K-Mac Holdings Corp. (0.2%)* (6) (8) Restaurants First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 03/25) 994,342 997,356 979,925 994,342 997,356 979,925 Kronos Inc. (1.1%)* (6) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.9% Cash, Acquired 08/18, Due 11/23) 5,998,096 6,018,120 6,024,727 5,998,096 6,018,120 6,024,727 LAC Intermediate, LLC (f/k/a Lighthouse Autism Center) (1.4%)* (5) (7) (8) Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.7% Cash, Acquired 10/18, Due 10/24) 7,887,705 7,666,906 7,550,895 Class A LLC Units (154,320 units, Acquired 10/18) 154,320 163,135 7,887,705 7,821,226 7,714,030 LTI Holdings, Inc. (1.9%)* (4) (6) (8) Industrial Conglomerates First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 09/18, Due 09/25) 11,850,000 11,906,192 10,610,016 11,850,000 11,906,192 10,610,016 Mallinckrodt Plc (0.5%)* (3) (4) (5) (6) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.9% Cash, Acquired 08/18, Due 09/24) 3,254,149 3,243,401 2,648,519 3,254,149 3,243,401 2,648,519 MB2 Dental Solutions, LLC (0.8%)* (5) (7) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.9% Cash, Acquired 09/19, Due 09/23) 4,723,425 4,670,058 4,671,419 4,723,425 4,670,058 4,671,419 Media Recovery, Inc. (0.6%)* (5) (7) (8) Containers, Packaging and Glass First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.7% Cash, Acquired 11/19, Due 11/25) 3,233,126 3,169,337 3,176,175 3,233,126 3,169,337 3,176,175 Men's Wearhouse, Inc. (The) (1.4%)* (4) (6) (8) Apparel Retail First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.9% Cash, Acquired 08/18, Due 04/25) 9,845,114 9,928,392 7,843,307 9,845,114 9,928,392 7,843,307 Nautilus Power, LLC (0.6%)* (6) (8) Independent Power Producers & Energy Traders First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.0% Cash, Acquired 09/18, Due 05/24) 3,220,650 3,234,041 3,206,157 3,220,650 3,234,041 3,206,157 NFP Corp. (1.5%)* (4) (6) (8) Specialized Finance First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 01/24) 8,564,081 8,562,584 8,521,261 8,564,081 8,562,584 8,521,261 F-27 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (2.1%)* (5) (7) (8) Energy Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.0% Cash, Acquired 10/18, Due 10/25) $ 11,994,231 $ 11,943,470 $ 11,870,574 11,994,231 11,943,470 11,870,574 NVA Holdings, Inc. (0.7%)* (6) (8) Health Care Facilities First Lien Senior Secured Term Loan (LIBOR + 2.75%, 6.5% Cash, Acquired 08/18, Due 02/25) 3,979,900 3,973,472 3,975,761 3,979,900 3,973,472 3,975,761 Omaha Holdings LLC (0.9%)* (6) (8) Auto Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 03/24) 4,961,929 4,991,732 4,961,929 4,961,929 4,991,732 4,961,929 Omnitracs, LLC (0.8%)* (6) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.7% Cash, Acquired 08/18, Due 03/25) 4,619,141 4,606,867 4,600,387 4,619,141 4,606,867 4,600,387 Options Technology Ltd. (1.9%)* (3) (5) (7) (8) Computer Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.5% Cash, Acquired 12/19, Due 12/25) 11,090,100 10,810,546 10,838,484 11,090,100 10,810,546 10,838,484 Ortho-Clinical Diagnostics Bermuda Co. Ltd. (2.0%)* (4) (6) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.3% Cash, Acquired 08/18, Due 06/25) 11,286,170 11,289,852 11,142,722 11,286,170 11,289,852 11,142,722 Pare SAS (SAS Maurice MARLE) (2.4%)* (3) (5) (7) (8) Health Care Equipment First Lien Senior Secured Term Loan (EURIBOR + 6.75%, 5.75% Cash, 1.0% PIK, Acquired 12/19, Due 12/26) 13,918,994 13,521,804 13,640,614 13,918,994 13,521,804 13,640,614 PAREXEL International Corp. (1.1%)* (4) (6) (8) Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.6% Cash, Acquired 09/18, Due 09/24) 6,680,843 6,655,192 6,544,821 6,680,843 6,655,192 6,544,821 Penn Engineering & Manufacturing Corp. (0.3%)* (6) (8) Industrial Conglomerates First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 06/24) 1,684,725 1,696,539 1,682,619 1,684,725 1,696,539 1,682,619 PeroxyChem Holdings, L.P. (1.5%)* (5) (7) (8) Diversified Chemicals First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.1% Cash, Acquired 10/19, Due 09/24) 8,415,118 8,374,666 8,384,879 8,415,118 8,374,666 8,384,879 Phoenix Services International LLC (0.5%)* (6) (8) Steel First Lien Senior Secured Term Loan (LIBOR + 3.75%, 5.5% Cash, Acquired 08/18, Due 03/25) 2,954,887 2,964,982 2,757,885 2,954,887 2,964,982 2,757,885 PODS Enterprises, Inc. (0.9%)* (6) (8) Packaging First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 12/24) 4,961,943 4,975,275 4,982,088 4,961,943 4,975,275 4,982,088 Premier Technical Services Group (0.5%)* (3) (5) (7) (8) Construction & Engineering First Lien Senior Secured Term Loan (GBP LIBOR + 6.75%, 7.5% Cash, Acquired 08/19, Due 08/26) 2,875,549 2,533,643 2,752,808 2,875,549 2,533,643 2,752,808 Pro Mach Inc. (1.0%)* (5) (6) (8) Industrial Machinery First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 08/18, Due 03/25) 5,909,774 5,893,603 5,847,013 5,909,774 5,893,603 5,847,013 ProAmpac Intermediate Inc. (1.7%)* (4) (6) (8) Packaged Foods & Meats First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.4% Cash, Acquired 08/18, Due 11/23) 9,846,482 9,857,895 9,680,372 9,846,482 9,857,895 9,680,372 Process Equipment, Inc. (1.1%)* (5) (7) (8) Industrial Air & Material Handling Equipment First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.9% Cash, Acquired 03/19, Due 03/25) 6,762,500 6,635,562 6,546,325 6,762,500 6,635,562 6,546,325 Professional Datasolutions, Inc. (PDI) (4.0%)* (5) (7) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.4% Cash, Acquired 03/19, Due 10/24) 23,158,008 23,120,723 22,879,936 23,158,008 23,120,723 22,879,936 F-28 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value PSC UK Pty Ltd. (0.6%)* (3) (5) (7) (8) Insurance Services First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 6.3% Cash, Acquired 11/19, Due 11/24) $ 3,625,921 $ 3,396,509 $ 3,494,295 3,625,921 3,396,509 3,494,295 Qlik Technologies Inc. (Alpha Intermediate Holding, Inc.) (0.9%)* (6) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Acquired 08/18, Due 04/24) 4,974,555 4,974,727 4,977,689 4,974,555 4,974,727 4,977,689 Red Ventures, LLC (1.0%)* (6) (8) Advertising First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 11/24) 5,954,774 5,985,039 5,990,919 5,954,774 5,985,039 5,990,919 RedPrairie Holding, Inc. (0.9%)* (6) (8) Computer Storage & Peripherals First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.6% Cash, Acquired 09/18, Due 10/23) 4,961,637 4,990,946 4,989,571 4,961,637 4,990,946 4,989,571 Renaissance Learning, Inc. (0.9%)* (6) (8) Application Software First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 08/18, Due 05/25) 5,391,318 5,387,730 5,354,711 5,391,318 5,387,730 5,354,711 Reynolds Group Holdings Ltd. (0.9%)* (6) (8) Packaging First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 02/23) 4,961,637 4,979,527 4,973,297 4,961,637 4,979,527 4,973,297 Ruffalo Noel Levitz, LLC (1.7%)* (5) (7) (8) Media Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.9% Cash, Acquired 01/19, Due 05/22) 9,714,617 9,607,656 9,641,334 9,714,617 9,607,656 9,641,334 Scaled Agile, Inc. (0.9%)* (5) (7) (8) Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.0% Cash, Acquired 06/19, Due 06/24) 4,986,980 4,940,603 4,941,809 4,986,980 4,940,603 4,941,809 SCI Packaging Inc. (0.9%)* (6) (8) Metal & Glass Containers First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 08/18, Due 04/24) 4,961,832 4,952,139 4,940,149 4,961,832 4,952,139 4,940,149 Seadrill Ltd. (0.9%)* (3) (4) (8) Oil & Gas Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.9% Cash, Acquired 09/18, Due 02/21) 9,809,097 9,508,856 4,883,066 9,809,097 9,508,856 4,883,066 Seaworld Entertainment, Inc. (1.0%)* (3) (6) (8) Leisure Facilities First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 03/24) 5,954,081 5,945,241 5,978,910 5,954,081 5,945,241 5,978,910 Serta Simmons Bedding LLC (0.6%)* (4) (5) (8) Home Furnishings First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.2% Cash, Acquired 10/19, Due 11/23) 4,961,929 3,927,986 3,184,963 4,961,929 3,927,986 3,184,963 SIWF Holdings, Inc. (1.6%)* (4) (6) (8) Home Furnishings First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.0% Cash, Acquired 08/18, Due 06/25) 9,350,501 9,403,797 9,303,749 9,350,501 9,403,797 9,303,749 SK Blue Holdings, LP (0.7%)* (6) (7) (8) Commodity Chemicals First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.8% Cash, Acquired 09/18, Due 10/25) 4,160,612 4,158,472 4,129,407 4,160,612 4,158,472 4,129,407 Smile Brands Group Inc. (0.9%)* (5) (7) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.6% Cash, Acquired 10/18, Due 10/24) 5,390,141 5,339,191 5,293,980 5,390,141 5,339,191 5,293,980 Solenis International, LLC (f/k/a Solenis Holdings, L.P.) (1.4%)* (5) (6) (8) Specialty Chemicals First Lien Senior Secured Term Loan (LIBOR + 4.0%, 5.9% Cash, Acquired 08/18, Due 06/25) 7,880,000 7,922,706 7,781,500 7,880,000 7,922,706 7,781,500 SonicWALL, Inc. (0.8%)* (6) (8) Internet Software & Services First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.4% Cash, Acquired 08/18, Due 05/25) 4,455,000 4,457,031 4,336,185 4,455,000 4,457,031 4,336,185 Springbrook Software (SBRK Intermediate, Inc.) (1.8%)* (5) (7) (8) Enterprise Software and Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.7% Cash, Acquired 12/19, Due 12/26) 10,520,990 10,269,533 10,294,130 10,520,990 10,269,533 10,294,130 F-29 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value SRS Distribution, Inc. (0.9%)* (6) (8) Building Products First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 09/18, Due 05/25) $ 4,974,811 $ 4,899,772 $ 4,930,038 4,974,811 4,899,772 4,930,038 SS&C Technologies, Inc. (0.3%)* (3) (6) (8) Computer & Electronics Retail First Lien Senior Secured Term Loan (LIBOR + 2.25%, 4.0% Cash, Acquired 10/18, Due 04/25) 1,742,327 1,738,643 1,753,042 1,742,327 1,738,643 1,753,042 Syniverse Holdings, Inc. (1.7%)* (4) (6) (8) Technology Distributors First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.8% Cash, Acquired 08/18, Due 03/23) 10,342,105 10,306,230 9,612,573 10,342,105 10,306,230 9,612,573 Tahoe Subco 1 Ltd. (2.6%)* (3) (4) (6) (8) Internet Software & Services First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.7% Cash, Acquired 09/18, Due 06/24) 14,800,754 14,806,789 14,677,463 14,800,754 14,806,789 14,677,463 Team Health Holdings, Inc. (1.0%)* (4) (6) (8) Health Care Services First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 02/24) 6,893,671 6,679,490 5,560,159 6,893,671 6,679,490 5,560,159 Tempo Acquisition LLC (1.0%)* (6) (8) Investment Banking & Brokerage First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 09/18, Due 05/24) 5,589,753 5,606,977 5,618,876 5,589,753 5,606,977 5,618,876 The Hilb Group, LLC (1.8%)* (5) (7) (8) Insurance Brokerage First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.4% Cash, Acquired 12/19, Due 12/26) 10,357,834 10,029,427 10,049,762 10,357,834 10,029,427 10,049,762 Total Safety U.S. Inc. (0.8%)* (5) (8) Diversified Support Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.9% Cash, Acquired 11/19, Due 08/25) 4,937,500 4,668,972 4,650,533 4,937,500 4,668,972 4,650,533 Transportation Insight, LLC (3.9%)* (5) (7) (8) Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.3% Cash, Acquired 08/18, Due 12/24) 22,286,485 22,088,329 22,245,067 22,286,485 22,088,329 22,245,067 Truck-Lite Co., LLC (3.7%)* (5) (7) (8) Automotive Parts and Equipment First Lien Senior Secured Term Loan (LIBOR + 6.25%, 8.1% Cash, Acquired 12/19, Due 12/24) 21,794,872 21,298,442 21,337,947 21,794,872 21,298,442 21,337,947 Trystar, LLC (2.9%)* (5) (7) (8) Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.7% Cash, Acquired 09/18, Due 09/23) 15,999,318 15,782,579 15,963,771 LLC Units (361.5 units, Acquired 09/18) 361,505 597,581 15,999,318 16,144,084 16,561,352 U.S. Anesthesia Partners, Inc. (2.4%)* (4) (6) (8) Managed Health Care First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 06/24) 13,585,533 13,637,823 13,534,587 13,585,533 13,637,823 13,534,587 U.S. Silica Company (0.2%)* (3) (4) (5) (8) Metal & Glass Containers First Lien Senior Secured Term Loan (LIBOR + 4.0%, 5.8% Cash, Acquired 08/18, Due 05/25) 1,502,945 1,506,348 1,324,200 1,502,945 1,506,348 1,324,200 USF Holdings LLC (0.5%)* (6) (7) (8) Auto Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.3% Cash, Acquired 08/18, Due 12/21) 3,224,841 3,233,041 2,902,357 3,224,841 3,233,041 2,902,357 USIC Holdings, Inc. (1.2%)* (5) (6) (8) Packaged Foods & Meats First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 08/18, Due 12/23) 6,896,886 6,925,717 6,866,746 6,896,886 6,925,717 6,866,746 USI Holdings Corp. (0.9%)* (6) (8) Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.9% Cash, Acquired 08/18, Due 05/24) 4,961,929 4,956,994 4,956,967 4,961,929 4,956,994 4,956,967 USLS Acquisition, Inc. (f/k/a US Legal Support, Inc.) (2.8%)* (5) (7) (8) Legal Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.7% Cash, Acquired 11/18, Due 11/24) 16,513,432 16,260,417 16,107,839 16,513,432 16,260,417 16,107,839 F-30 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Portfolio Company Industry Type of Investment (1) (2) Principal Amount Cost Fair Value Validity, Inc. (0.7%)* (5) (7) (8) IT Consulting & Other Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.7% Cash, Acquired 07/19, Due 05/25) $ 4,178,543 $ 3,989,821 $ 3,977,081 4,178,543 3,989,821 3,977,081 Venator Materials LLC (0.3%)* (3) (6) (8) Commodity Chemicals First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 09/18, Due 08/24) 1,562,199 1,566,972 1,547,873 1,562,199 1,566,972 1,547,873 Veritas Bermuda Intermediate Holdings Ltd. (0.8%)* (6) (8) Technology Distributors First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.3% Cash, Acquired 09/18, Due 01/23) 4,961,735 4,784,696 4,767,235 4,961,735 4,784,696 4,767,235 VF Holding Corp. (2.1%)* (4) (5) (6) (8) Systems Software First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.0% Cash, Acquired 08/18, Due 07/25) 11,880,000 11,885,248 11,728,768 11,880,000 11,885,248 11,728,768 Wilsonart, LLC (0.9%)* (6) (8) Building Products First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 11/18, Due 12/23) 4,961,832 4,961,832 4,970,118 4,961,832 4,961,832 4,970,118 Winebow Group, LLC, (The) (1.7%)* (4) (5) (8) Consumer Goods First Lien Senior Secured Term Loan (LIBOR + 3.75%, 5.5% Cash, Acquired 11/19, Due 07/21) 7,088,420 6,425,336 6,361,857 Second Lien Senior Secured Term Loan (LIBOR + 7.5%, 9.3% Cash, Acquired 10/19, Due 01/22) 4,911,766 3,314,045 3,209,004 12,000,186 9,739,381 9,570,861 Wink Holdco, Inc. (0.7%)* (6) (8) Managed Health Care First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.8% Cash, Acquired 08/18, Due 12/24) 3,969,620 3,967,724 3,972,121 3,969,620 3,967,724 3,972,121 Xperi Corp. (0.4%)* (3) (6) (8) Semiconductor Equipment First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.3% Cash, Acquired 08/18, Due 12/23) 2,049,364 2,042,322 2,048,729 2,049,364 2,042,322 2,048,729 Subtotal Non–Control / Non–Affiliate Investments 1,099,631,654 1,085,886,720 1,066,845,054 Affiliate Investment: (9) Jocassee Partners LLC (1.8%)* (3) (5) (8) Investment Funds & Vehicles 9.1% Member Interest, Acquired 06/19 10,158,270 10,229,813 10,158,270 10,229,813 Subtotal Affiliate Investment 10,158,270 10,229,813 Short-Term Investments BNY Mellon Investment Advisor, Inc. (12.6%)* (4) (5) Money Market Fund Dreyfus Government Cash Management Fund (1.5% yield) 71,963,994 71,963,994 71,963,994 71,963,994 Federated Investment Management Company (4.3%)* (6) Money Market Fund Federated Government Obligation Fund (1.5% yield) 24,604,946 24,604,946 24,604,946 24,604,946 Subtotal Short-Term Investments — 96,568,940 96,568,940 Total Investments, December 31, 2019 (205.6%)* $ 1,099,631,654 $ 1,192,613,930 $ 1,173,643,807 F-31 Barings BDC, Inc. Consolidated Schedule of Investments — (Continued) December 31, 2019 Foreign Currency Forward Contracts: Description Notional Amount to be Purchased Notional Amount to be Sold Settlement Date Unrealized Appreciation (Depreciation) Foreign currency forward contract (EUR) $158,244 €142,781 01/02/20 $ (2,028) Foreign currency forward contract (EUR) €142,781 $158,547 01/02/20 1,724 Foreign currency forward contract (EUR) $506,967 €453,920 04/02/20 (5,440) Foreign currency forward contract (GBP) $707,963 £549,253 01/02/20 (19,660) Foreign currency forward contract (GBP) £549,253 $718,861 01/02/20 8,763 Foreign currency forward contract (GBP) $227,890 £175,529 04/02/20 (5,215) Foreign currency forward contract (SEK) $95,654 920,569kr 01/02/20 (2,687) Foreign currency forward contract (SEK) 920,569kr $96,846 01/02/20 1,495 Foreign currency forward contract (SEK) $97,360 912,212kr 04/02/20 (511) Total Foreign Currency Forward Contracts, December 31, 2019 $ (23,559) * Fair value as a percentage of net assets. (1) All debt investments are income producing, unless otherwise noted. Equity and any equity-linked investments are non-income producing, unless otherwise noted. The Board determined in good faith that all investments were valued at fair value in accordance with the Company's valuation policies and procedures and the 1940 Act based on, among other things, the input of Barings, the Company’s Audit Committee and, in accordance with the Company's valuation policies and procedures, an independent valuation firm that has been engaged to assist in the valuation of the Company's middle-market investments. In addition, all debt investments are variable rate investments unless otherwise noted. Index-based floating interest rates are generally subject to a contractual minimum interest rate. A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to either LIBOR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically reset semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. (2) All of the Company’s portfolio company investments (including joint venture and short-term investments), which as of December 31, 2019 represented 206% of the Company’s net assets, are subject to legal restrictions on sales. The acquisition date represents the date of the Company's initial investment in the relevant portfolio company. (3) Investment is not a qualifying investment as defined under Section 55(a) of the 1940 Act. Non-qualifying assets represent 14.8% of total investments at fair value as of December 31, 2019. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets. If at any time qualifying assets do not represent at least 70% of the Company's total assets, the Company will be precluded from acquiring any additional non-qualifying asset until such time as it complies with the requirements of Section 55(a). (4) Some or all of the investment is or will be encumbered as security for Barings BDC Senior Funding I, LLC's credit facility entered into in August 2018 with Bank of America, N.A., as subsequently amended in December 2018 and February 2020 (the "August 2018 Credit Facility"). (5) Some or all of the investment is or will be encumbered as security for the February 2019 Credit Facility. (6) Some or all of the investment is encumbered as security for the Company's Debt Securitization. (7) The fair value of the investment was determined using significant unobservable inputs. (8) Debt investment includes interest rate floor feature. (9) As defined in the 1940 Act, the Company is deemed to be an “affiliated person” of the portfolio company as the Company owns 5% or more, up to 25% (inclusive), of the portfolio company's voting securities (“non-controlled affiliate”). Transactions related to investments in non-controlled "Affiliate Investments" for the year ended December 31, 2019 were as follows: Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2018 Value Gross Additions (c) Gross Reductions (d) December 31, 2019 Value Portfolio Company Type of Investment(a) Jocassee Partners LLC 9.1% Member Interest $ — $ 71,543 $ — $ — $ 10,229,813 $ — $ 10,229,813 Total Affiliate Investments $ — $ 71,543 $ — $ — $ 10,229,813 $ — $ 10,229,813 (a) Equity and equity-linked investments are non-income producing, unless otherwise noted. (b) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Affiliate category. (c) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation. (d) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation. See accompanying notes. F-32 Barings BDC, Inc. Notes to Consolidated Financial Statements 1. Organization, Business, Basis of Presentation and Summary of Significant Accounting Policies Organization and Business Barings BDC, Inc. (the "Company") and its wholly-owned subsidiaries are specialty finance companies. The Company currently operates as a closed-end, non-diversified investment company and has elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company has elected for federal income tax purposes to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"). The Asset Sale and Externalization Transactions On April 3, 2018, the Company entered into an asset purchase agreement (the "Asset Purchase Agreement") with BSP Asset Acquisition I, LLC (the "Asset Buyer"), an affiliate of Benefit Street Partners L.L.C., pursuant to which the Company agreed to sell its December 31, 2017 investment portfolio to the Asset Buyer for gross proceeds of $981.2 million in cash, subject to certain adjustments to take into account portfolio activity and other matters occurring since December 31, 2017 (such transaction referred to herein as the "Asset Sale Transaction"). Also on April 3, 2018, the Company entered into a stock purchase and transaction agreement (the "Externalization Agreement") with Barings LLC ("Barings" or the "Adviser"), through which Barings agreed to become the investment adviser to the Company in exchange for (1) a payment by Barings of $85.0 million directly to the Company’s stockholders, (2) an investment by Barings of $100.0 million in newly issued shares of the Company's common stock at net asset value and (3) a commitment from Barings to purchase up to $50.0 million of shares of the Company's common stock in the open market at prices up to and including the Company's then-current net asset value per share for a two-year period, after which Barings agreed to use any remaining funds from the $50.0 million to purchase additional newly issued shares of the Company's common stock at the greater of the Company's then-current net asset value per share and market price (collectively, the "Externalization Transaction"). The Asset Sale Transaction and the Externalization Transaction are collectively referred to as the "Transactions." The Transactions were approved by the Company's stockholders at the Company's July 24, 2018 special meeting of stockholders. The Asset Sale Transaction closed on July 31, 2018. The gross cash proceeds received from the Asset Buyer and certain affiliates of the Asset Buyer in connection with the Asset Sale Transaction were approximately $793.3 million, after adjustments to take into account portfolio activity and other matters occurring since December 31, 2017, as described in greater detail in the Asset Purchase Agreement. Adjustments to the purchase price included, among other things, approximately $208.8 million of principal payments and prepayments, sales proceeds and distributions related to the investment portfolio that were received and retained by the Company between December 31, 2017 and the closing of the Asset Sale Transaction, offset by approximately $29.5 million of loans and equity investments originated between December 31, 2017 and the closing of the Asset Sale Transaction. In connection with the closing of the Asset Sale Transaction, the Company caused notices to be issued to the holders of its unsecured notes issued in October 2012 and November 2012 due 2022 (the “December 2022 Notes”) and to holders of its unsecured notes issued in February 2015 due 2022 (the “March 2022 Notes”) regarding the redemption of all $80.5 million in aggregate principal amount of the December 2022 Notes and all $86.3 million in aggregate principal amount of the March 2022 Notes, in each case, on August 30, 2018. The December 2022 Notes and the March 2022 Notes were redeemed at 100% of their principal amount ($25.00 per Note), plus the accrued and unpaid interest thereon from June 15, 2018 to, but excluding, August 30, 2018, which resulted in a loss on the extinguishment of debt of $2.9 million. In furtherance of the redemption, on July 31, 2018, the Company irrevocably deposited with The Bank of New York Mellon Trust Company, N.A., as trustee under the indenture and supplements thereto relating to the December 2022 Notes and the March 2022 Notes, funds in trust for the purposes of redeeming all of the issued and outstanding December 2022 Notes and March 2022 Notes and paying all sums due and payable under the indenture and supplements thereto. As a result, the Company’s obligations under the indenture and supplements thereto relating to the December 2022 Notes and the March 2022 Notes were satisfied and discharged as of July 31, 2018, except with respect to those obligations that the indenture expressly provides shall survive the satisfaction and discharge of the indenture. In addition, in connection with the closing of the Asset F-33 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Sale Transaction, the Company terminated its senior secured credit facility entered into in May 2015 and subsequently amended in May 2017 which resulted in a loss on the extinguishment of debt of $4.1 million. The Company's former wholly-owned subsidiaries, Triangle Mezzanine Fund II LP ("Triangle SBIC II") and Triangle Mezzanine Fund III LP ("Triangle SBIC III") were specialty finance limited partnerships that were formed to make investments primarily in lower middle-market companies located throughout the United States. Each of Triangle SBIC, Triangle SBIC II and Triangle SBIC III held licenses to operate as Small Business Investment Companies ("SBICs") under the authority of the United States Small Business Administration ("SBA"). In connection with the closing of the Asset Sale Transaction, the Company repaid all of its outstanding SBA-guaranteed debentures and surrendered the SBIC licenses held by Triangle SBIC, Triangle SBIC II, and Triangle SBIC III. The Company recognized a loss on extinguishment of debt of $3.5 million related to the repayment of its outstanding SBA-guaranteed debentures. The Externalization Transaction closed on August 2, 2018 (the "Externalization Closing"). Effective as of the Externalization Closing, the Company changed its name from Triangle Capital Corporation to Barings BDC, Inc. and on August 3, 2018 began trading on the New York Stock Exchange ("NYSE") under the symbol "BBDC." In connection with the Externalization Closing, the following events occurred: • On August 2, 2018, the Company entered into an investment advisory agreement (the "Original Advisory Agreement") and an administration agreement (the "Administration Agreement") with the Adviser pursuant to which the Adviser serves as the Company’s investment adviser and administrator and manages its investment portfolio which initially consisted primarily of the cash proceeds received in connection with the Asset Sale Transaction. • On August 2, 2018, the Company issued 8,529,917 shares of the Company's common stock to the Adviser at a price of $11.723443 per share, or an aggregate of $100.0 million in cash, in a private transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and/or Rule 506 of Regulation D thereunder (the "Stock Issuance"). • On August 2, 2018, the Company entered into a registration rights agreement with the Adviser with respect to the shares of the Company's common stock acquired in the Stock Issuance. • On August 7, 2018, the Company launched a $50.0 million issuer tender offer (the "Tender Offer"). Pursuant to the Tender Offer, on September 11, 2018, the Company purchased 4,901,961 shares of the Company's common stock at a purchase price of $10.20 per share, for an aggregate cost of approximately $50.0 million, excluding fees and expenses relating to the Tender Offer. The shares of common stock purchased in the Tender Offer represented approximately 8.7% of the Company’s issued and outstanding shares as of September 6, 2018. • On September 24, 2018, the Adviser entered into a Rule 10b5-1 Purchase Plan, (the "10b5-1 Plan"), that qualified for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Pursuant to the 10b5-1 Plan, an independent broker made purchases of shares of the Company's common stock on the open market on behalf of the Adviser in accordance with purchase guidelines specified in the 10b5-1 Plan. The 10b5-1 Plan was established in accordance with the Adviser's obligation under the Externalization Agreement to enter into a trading plan pursuant to which the Adviser committed to purchase $50.0 million in value of shares in open market transactions through an independent broker. The maximum aggregate purchase price of all shares purchased under the 10b5-1 Plan was $50.0 million. On February 11, 2019, the Adviser fulfilled its obligations under the 10b5-1 Plan to purchase an aggregate amount of $50.0 million in shares of the Company's common stock and the 10b5-1 Plan terminated in accordance with its terms. Upon completion of the 10b5-1 Plan, the Adviser had purchased 5,084,302 shares of the Company's common stock pursuant to the 10b5-1 Plan and as of December 31, 2020, owned a total of 13,639,681 shares of our common stock, or 20.9% of the total shares outstanding. F-34 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Expenses Related to the Transactions In connection with the Externalization Transaction, and the subsequent change of control and related termination of employees, the Company recognized one-time compensation expenses of approximately $27.6 million in the year ended December 31, 2018. These one-time compensation expenses included severance expenses, pro-rata incentive compensation, transaction-related bonuses, expenses related to the acceleration of vesting of restricted stock grants and deferred compensation grants, and other expenses associated with the obligations under the Company's existing severance agreements and severance policy. In addition, the Company recognized transaction advisory fees, legal expenses and other direct costs associated with the Transactions of approximately $11.8 million in the year ended December 31, 2018. Organization The Company is a Maryland corporation incorporated on October 10, 2006. Prior to the Externalization Transaction, the Company was internally managed by its executive officers under the supervision of its Board of Directors (the "Board"). During this period, the Company did not pay management or advisory fees, but instead incurred the operating costs associated with employing executive management and investment and portfolio management professionals. On August 2, 2018, the Company entered into the Original Advisory Agreement and became an externally-managed BDC managed by the Adviser. An externally-managed BDC generally does not have any employees, and its investment and management functions are provided by an outside investment adviser and administrator under an investment advisory agreement and administration agreement. Instead of the Company directly compensating employees, the Company pays the Adviser for investment and management services pursuant to the terms of the Amended and Restated Advisory Agreement (as defined in “Note 2 - Agreements and Related Party Transactions”) (and, prior to January 1, 2021, under the terms of the Original Advisory Agreement) and the Administration Agreement. See “Note 2 - Agreements and Related Party Transactions” for additional information regarding the Company’s investment advisory agreement and administration agreement. Basis of Presentation The financial statements of the Company include the accounts of Barings BDC, Inc. and its wholly-owned subsidiaries. The effects of all intercompany transactions between the Company and its wholly-owned subsidiaries have been eliminated in consolidation. The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification ("ASC") Topic 946, Financial Services – Investment Companies. ASC Topic 946 states that consolidation by the Company of an investee that is not an investment company is not appropriate, except when the Company holds a controlling interest in an operating company that provides all or substantially all of its services directly to the Company or to its portfolio companies. None of the portfolio investments made by the Company qualify for this exception. Therefore, the Company's investment portfolio is carried on the Consolidated Balance Sheets at fair value, as discussed further in Note 3, with any adjustments to fair value recognized as "Net unrealized appreciation (depreciation)" on the Consolidated Statements of Operations. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All financial data and information included in these financial statements have been presented on the basis described above. Recently Issued Accounting Standards In August 2018, the FASB issued Accounting Standards Update, 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which includes new, eliminated and modified fair value disclosure requirements. The new guidance requires disclosure of the range and weighted average of the significant unobservable inputs for Level 3 fair value measurements and the way it is calculated. The guidance also eliminates the following disclosures: (i) amount and reason for transfers between Level 1 and Level 2, (ii) policy for timing of transfers between levels of the fair value hierarchy and (iii) valuation processes for Level 3 fair value measurement. In addition, the disclosure is modified such that the narrative description for the recurring Level 3 fair value measures should communicate information about the measurement uncertainty in fair value measurements as of the reporting date rather than a point in the future. The guidance is effective for all entities for F-35 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) interim and annual periods beginning after December 15, 2019. The Company adopted the aforementioned guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update, 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020- 04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting ASU 2020- 04 on its consolidated financial statements. Share Repurchase Plan On February 25, 2019, the Company adopted a share repurchase plan, pursuant to Board approval, for the purpose of repurchasing shares of the Company's common stock in the open market during the 2019 fiscal year (the "2019 Share Repurchase Plan"). The Board authorized the Company to repurchase in 2019 up to a maximum of 5.0% of the amount of shares outstanding under the following targets: • a maximum of 2.5% of the amount of shares of the Company's common stock outstanding if shares traded below NAV per share but in excess of 90% of NAV per share; and • a maximum of 5.0% of the amount of shares of the Company's common stock outstanding if shares traded below 90% of NAV per share. The 2019 Share Repurchase Plan was executed in accordance with applicable rules under the Exchange Act including Rules 10b5-1 and 10b-18 thereunder, as well as certain price, market volume and timing constraints specified in the 2019 Share Repurchase Plan. The 2019 Share Repurchase Plan was designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company was delegated the authority to repurchase shares on the Company's behalf in the open market, pursuant to, and under the terms and limitations of, the 2019 Share Repurchase Plan. During the year ended December 31, 2019, the Company repurchased a total of 2,333,261 shares of its common stock in the open market under the 2019 Share Repurchase Plan at an average price of $10.01 per share, including broker commissions. On February 27, 2020, the Board approved an open-market share repurchase program for the 2020 fiscal year (the “2020 Share Repurchase Program”). Under the 2020 Share Repurchase Program, the Company was authorized during fiscal year 2020 to repurchase up to a maximum of 5.0% of the amount of shares outstanding as of February 27, 2020 if shares traded below NAV per share, subject to liquidity and regulatory constraints. Purchases under the 2020 Share Repurchase Program were made in open-market transactions and included transactions being executed by a broker selected by the Company that had been delegated the authority to repurchase shares on the Company's behalf in the open market in accordance with applicable rules under the Exchange Act, including Rules 10b5-1 and 10b-18 thereunder, and pursuant to, and under the terms and limitations of, the 2020 Share Repurchase Program. During the year ended December 31, 2020, the Company repurchased a total of 989,050 shares of its common stock in the open market under the 2020 Share Repurchase Program at an average price of $7.21 per share, including broker commissions. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. F-36 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Valuation of Investments The Company has a valuation policy, as well as established and documented processes and methodologies for determining the fair values of portfolio company investments on a recurring (at least quarterly) basis in accordance with the 1940 Act and FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). The Company's current valuation policy and processes were established by the Adviser and were approved by the Board. Under ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between a willing buyer and a willing seller at the measurement date. For the Company’s portfolio securities, fair value is generally the amount that the Company might reasonably expect to receive upon the current sale of the security. Under ASC Topic 820, the fair value measurement assumes that the sale occurs in the principal market for the security, or in the absence of a principal market, in the most advantageous market for the security. Under ASC Topic 820, if no market for the security exists or if the Company does not have access to the principal market, the security should be valued based on the sale occurring in a hypothetical market. Under ASC Topic 820, there are three levels of valuation inputs, as follows: Level 1 Inputs – include quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs – include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 Inputs – include inputs that are unobservable and significant to the fair value measurement. A financial instrument is categorized within the ASC Topic 820 valuation hierarchy based upon the lowest level of input to the valuation process that is significant to the fair value measurement. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized as Level 3 investments within the tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). The Company’s investment portfolio includes certain debt and equity instruments of privately held companies for which quoted prices or other observable inputs falling within the categories of Level 1 and Level 2 are generally not available. In such cases, the Company determines the fair value of its investments in good faith primarily using Level 3 inputs. In certain cases, quoted prices or other observable inputs exist, and if so, the Company assesses the appropriateness of the use of these third-party quotes in determining fair value based on (i) its understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer and (ii) the depth and consistency of broker quotes and the correlation of changes in broker quotes with the underlying performance of the portfolio company. There is no single standard for determining fair value in good faith, as fair value depends upon the specific circumstances of each individual investment. The recorded fair values of the Company’s Level 3 investments may differ significantly from fair values that would have been used had an active market for the securities existed. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. Investment Valuation Process The Adviser has established a pricing committee that is, subject to the oversight of the Board, responsible for the approval, implementation and oversight of the processes and methodologies that relate to the pricing and valuation of assets held by the Company. The Adviser uses independent third-party providers to price the portfolio, but in the event an acceptable price cannot be obtained from an approved external source, the Adviser will utilize alternative methods in accordance with internal pricing procedures established by the Adviser's pricing committee. F-37 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) At least annually, the Adviser conducts reviews of the primary pricing vendors to validate that the inputs used in the vendors’ pricing process are deemed to be market observable. While the Adviser is not provided access to proprietary models of the vendors, the reviews have included on-site walkthroughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. The review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process the Adviser continues to perform annually. In addition, the pricing vendors have an established challenge process in place for all security valuations, which facilitates identification and resolution of prices that fall outside expected ranges. The Adviser believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (i.e. exit prices). The Company's money market fund investments are generally valued using Level 1 inputs and its equity investments listed on an exchange or on the NASDAQ National Market System are valued using Level 1 inputs, using the last quoted sale price of that day. The Company’s syndicated senior secured loans and structured product investments are generally valued using Level 2 inputs, which are generally valued at the bid quotation obtained from dealers in loans by an independent pricing service. The Company's middle-market, private debt and equity investments are generally valued using Level 3 inputs. Independent Valuation For the year ended December 31, 2019, the Company engaged an independent valuation firm to provide third-party valuation consulting services at the end of each fiscal quarter which consisted of certain limited procedures that the Company identified and requested the valuation firm to perform (hereinafter referred to as the "Procedures"). The Procedures generally consisted of a review of the quarterly fair values of the Company's middle-market investments, and were generally performed with respect to each investment every quarter beginning in the quarter after the investment was made. Beginning with the first quarter of 2020, the Company revised its valuation process to require that the Procedures generally be performed with respect to each middle-market investment at least once in every calendar year and for new investments, at least once in the twelve-month period subsequent to the initial investment. In addition, the Procedures were generally performed with respect to an investment where there was a significant change in the fair value or performance of the investment. Beginning with the fourth quarter of 2020, the fair value of bank loans and equity investments that are not syndicated or for which market quotations are not readily available, including middle-market bank loans, are generally submitted to independent providers to perform an independent valuation on those bank loans and equity investments as of the end of each quarter. Such bank loans and equity investments are initially held at cost, as that is a reasonable approximation of fair value on the acquisition date, and monitored for material changes that could affect the valuation (for example, changes in interest rates or the credit quality of the borrower). At the quarter end following the initial acquisition, such bank loans and equity investments are generally sent to a valuation provider which will determine the fair value of each investment. The independent valuation providers apply various methods (synthetic rating analysis, discounting cash flows, and re-underwriting analysis) to establish the rate of return a market participant would require (the “discount rate”) as of the valuation date, given market conditions, prevailing lending standards and the perceived credit quality of the issuer. Future expected cash flows for each investment are discounted back to present value using these discount rates in the discounted cash flow analysis. A range of values will be provided by the valuation provider and the Adviser will determine the point within that range that it will use in making valuation recommendations to the Board, and will report to the Board on its rationale for each such determination. The Adviser continued to use its internal valuation model as a comparison point to validate the price range provided by the valuation provider and, where applicable, in determining the point within that range that it will use in making valuation recommendations to the Board. If the Advisers’ pricing committee disagrees with the price range provided, it may make a fair value recommendation to the Board that is outside of the range provided by the independent valuation provider, and will notify the Board of any such override and the reasons therefore. In certain instances, the Company may determine that it is not cost-effective, and as a result is not in the stockholders' best interests, to request the independent valuation firm to perform an independent valuation on certain investments. Such instances include, but are not limited to, situations where the fair value of the investment in the portfolio F-38 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) company is determined to be insignificant relative to the total investment portfolio. Pursuant to these procedures, the Board determines in good faith whether the Company's investments were valued at fair value in accordance with the Company's valuation policies and procedures and the 1940 Act based on, among other things, the input of Barings, the Company’s Audit Committee and the independent valuation firm. Valuation Techniques The Company's valuation techniques are based upon both observable and unobservable pricing inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. The Company's 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. An independent pricing service provider is the preferred source of pricing a loan, however, to the extent the independent pricing service provider price is unavailable or not relevant and reliable, the Company will utilize alternative approaches such as broker quotes or manual prices. The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the security. Valuation of Investment in Jocassee The Company estimates the fair value of its investment in Jocassee Partners LLC using the net asset value of Jocassee Partners LLC and its ownership percentage. The net asset value of Jocassee Partners LLC is determined in accordance with the specialized accounting guidance for investment companies. Valuation of Investment in Thompson Rivers The Company estimates the fair value of its investment in Thompson Rivers LLC using the net asset value of Thompson Rivers LLC and its ownership percentage. The net asset value of Thompson Rivers LLC is determined in accordance with the specialized accounting guidance for investment companies. Valuation of Investments in MVC Private Equity Fund LP The Company estimates the fair value of its investment in MVC Private Equity Fund LP (the "MVC PE Fund") using the net asset value of the MVC PE Fund and its ownership percentage. The net asset value of the MVC PE Fund is determined in accordance with the specialized accounting guidance for investment companies. F-39 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Level 3 Unobservable Inputs The following tables summarize the significant unobservable inputs the Company used in the valuation of its Level 3 debt and equity securities as of December 31, 2020 and 2019. The weighted average range of unobservable inputs is based on fair value of investments. December 31, 2020: Fair Value Valuation Model Level 3 Input Range of Inputs Weighted Average Senior debt and 1 st lien notes (1) $ 650,550,710 Yield Analysis Market Yield 4.7% – 16.2% 7.4% 3,000,000 Liquidation Analysis Adjusted EBITDA Multiple 0.05x – 0.15x 0.10x 399,692,333 Recent Transaction Transaction Price 96.0% – 100.0% 97.8% Subordinated debt and 2 nd lien notes (2) 109,851,771 Yield Analysis Market Yield 6.0% – 26.0% 16.7% 13,933,960 Market Approach Adjusted EBITDA Multiple 5.0x – 6.0x 5.50x 4,959,088 Recent Transaction Transaction Price 100% 100% Equity shares (3) 39,178,157 Market Approach Adjusted EBITDA Multiple 0.8x – 11.8x 4.80x 4,752,997 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892 Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81 Real Estate - Income Approach Market Rent CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718 Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5% Real Estate - Income Approach Adj. Factor for Development Zone n/a 1.15 227,200 Recent Transaction Transaction Price $1,000 $1,000 Equity warrants 1,133,781 Market Approach Adjusted EBITDA Multiple 4.8x-9.0x 6.0x (1) Excludes investments with an aggregate fair value amounting to $2,474,068, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. (2) Excludes investments with an aggregate fair value amounting to $2,075,117, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. (3) Excludes investments with an aggregate fair value amounting to $68,670, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. December 31, 2019: Fair Value Valuation Model Level 3 Input Range of Inputs Weighted Average Senior debt and 1st lien notes (1) $ 528,907,788 Income Approach Implied Spread 4.6% – 8.0% 5.7% Subordinated debt and 2nd lien notes (2) 9,699,465 Income Approach Implied Spread 8.8% – 9.4% 9.1% Equity shares 760,716 Enterprise Value Waterfall Approach Adjusted EBITDA Multiple 10.0x – 12.3x 10.5x F-40 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) (1) Excludes investments with an aggregate fair value amounting to $26,592,519, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. (2) Excludes investments with an aggregate fair value amounting to $2,312,500, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. Significant increases or decreases in any of the above unobservable inputs in isolation, including changes in market yields, discount rates or EBITDA multiples, may change the fair value of certain of the Company’s investments. Generally, an increase in market yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company's investments. Unsettled Purchases and Sales of Investments Investment transactions are recorded based on the trade date of the transaction. As a result, unsettled purchases and sales are recorded as payables and receivables from unsettled transactions, respectively. While purchase and sales of the Company's syndicated senior secured loans generally settle on a T+7 basis, the settlement period will sometimes extend past the scheduled settlement. In such cases, the Company is contractually owed and recognizes interest income equal to the applicable margin ("spread") beginning on the T+7 date. Such income is accrued as interest receivable and is collected upon settlement of the investment transaction. Realized Gain or Loss and Unrealized Appreciation or Depreciation of Portfolio Investments Realized gains or losses are recorded upon the sale or liquidation of investments and are calculated as the difference between the net proceeds from the sale or liquidation, if any, and the cost basis of the investment using the specific identification method. Unrealized appreciation or depreciation reflects the difference between the fair value of the investments and the cost basis of the investments. Investment Classification In accordance with the provisions of the 1940 Act, the Company classifies investments by level of control. As defined in the 1940 Act, "Control Investments" are investments in those companies that the Company is deemed to "Control." "Affiliate Investments" are investments in those companies that are "Affiliated Persons" of the Company, as defined in the 1940 Act, other than Control Investments. "Non-Control / Non-Affiliate Investments" are those that are neither Control Investments nor Affiliate Investments. Generally, under the 1940 Act, the Company is deemed to control a company in which it has invested if the Company owns more than 25.0% of the voting securities (i.e., securities with the right to elect directors) and/or has the power to exercise control over the management or policies of such portfolio company. Generally, under the 1940 Act, “Affiliate Investments” that are not otherwise “Control Investments” are defined as investments in which the Company owns at least 5.0%, up to 25.0% (inclusive), of the voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Short-Term Investments Short-term investments represent investments in money market funds. Deferred Financing Fees Costs incurred to issue debt are capitalized and are amortized over the term of the debt agreements using the effective interest method. F-41 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Investment Income Interest income, including amortization of premium and accretion of discount, is recorded on the accrual basis to the extent that such amounts are expected to be collected. Generally, when interest and/or principal payments on a loan become past due, or if the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the loan on non-accrual status and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. The Company writes off any previously accrued and uncollected interest when it is determined that interest is no longer considered collectible. As of December 31, 2020 the Company had one investment that was on non-accrual. As of December 31, 2019, the Company had no non-accrual assets. Dividend income is recorded on the ex-dividend date. Payment-in-Kind Interest The Company currently holds, and expects to hold in the future, some loans in its portfolio that contain payment-in-kind ("PIK") interest provisions. PIK interest, computed at the contractual rate specified in each loan agreement, is periodically added to the principal balance of the loan, rather than being paid to the Company in cash, and is recorded as interest income. Thus, the actual collection of PIK interest may be deferred until the time of debt principal repayment. PIK interest, which is a non-cash source of income at the time of recognition, is included in the Company’s taxable income and therefore affects the amount the Company is required to distribute to its stockholders to maintain its tax treatment as a RIC for federal income tax purposes, even though the Company has not yet collected the cash. Generally, when current cash interest and/or principal payments on a loan become past due, or if the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the loan on non-accrual status and will generally cease recognizing PIK interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. The Company writes off any accrued and uncollected PIK interest when it is determined that the PIK interest is no longer collectible. Fee Income Origination, facility, commitment, consent and other advance fees received in connection with loan agreements ("Loan Origination Fees") are recorded as deferred income and recognized as investment income over the term of the loan. Upon prepayment of a loan, any unamortized Loan Origination Fees are recorded as investment income. In the general course of its business, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees, covenant waiver fees and loan amendment fees, and are recorded as investment income when earned. Fee income for the years ended December 31, 2020, 2019 and 2018 was as follows: Year Ended December 31 2020 2019 2018 Recurring Fee Income: Amortization of loan origination fees $ 2,179,859 $ 914,197 $ 1,374,049 Management, valuation and other fees 867,465 275,510 427,628 Total Recurring Fee Income 3,047,324 1,189,707 1,801,677 Non-Recurring Fee Income: Prepayment fees 84,151 59,617 1,191,943 Acceleration of unamortized loan origination fees 536,906 694,971 1,932,367 Advisory, loan amendment and other fees 412,255 172,525 242,914 Total Non-Recurring Fee Income 1,033,312 927,113 3,367,224 Total Fee Income $ 4,080,636 $ 2,116,820 $ 5,168,901 F-42 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Compensation Expenses Compensation expenses generally include salaries, discretionary compensation, equity-based compensation and benefits. General and Administrative Expenses General and administrative expenses include administrative costs, facilities costs, insurance, legal and accounting expenses, expenses reimbursable to the Adviser under the terms of the Administration Agreement and other costs related to operating as a publicly-traded company. Segments The Company lends to and invests in customers in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these loan and investment relationships has similar business and economic characteristics, they have been aggregated into a single lending and investment segment. All applicable segment disclosures are included in or can be derived from the Company’s financial statements. Concentration of Credit Risk As of both December 31, 2020 and 2019, there were no individual investments representing greater than 10% of the fair value of the Company’s portfolio. As of December 31, 2020 and December 31, 2019, the Company’s largest single portfolio company investment, excluding short-term investments, represented approximately 2.5% and 2.3%, respectively, of the fair value of the Company’s portfolio, exclusive of short-term investments. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, can fluctuate dramatically upon repayment of an investment or sale of an equity interest and in any given year can be highly concentrated among several portfolio companies. The Company places its cash with financial institutions and, at times, cash may exceed insured limits under applicable law. As of December 31, 2020, all of the Company's assets were or will be pledged as collateral for the February 2019 Credit Facility. Investments Denominated in Foreign Currency As of December 31, 2020 the Company held t wo investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, seventeen investments that were denominated in Euros and eleven investments that were denominated in British pounds sterling . As of December 31, 2019, the Company held one investment that was denominated in Swedish kronas, five investments that were denominated in Euros and two investments that were denominated in British pounds sterling. At each balance sheet date, portfolio company investments denominated in foreign currencies are translated into United States dollars using the spot exchange rate on the last business day of the period. Purchases and sales of foreign portfolio company investments, and any income from such investments, are translated into United States dollars using the rates of exchange prevailing on the respective dates of such transactions. Although the fair values of foreign portfolio company investments and the fluctuation in such fair values are translated into United States dollars using the applicable foreign exchange rates described above, the Company does not separately report that portion of the change in fair values resulting from foreign currency exchange rates fluctuations from the change in fair values of the underlying investment. All fluctuations in fair value are included in net unrealized appreciation (depreciation) of investments in the Company's Consolidated Statements of Operations. In addition, during the years ended December 31, 2020 and 2019, the Company entered into forward currency contracts primarily to help mitigate the impact that an adverse change in foreign exchange rates would have on net interest income from the Company's investments and related borrowings denominated in foreign currencies. Net F-43 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) unrealized appreciation or depreciation on foreign currency contracts are included in "Net unrealized appreciation (depreciation) - foreign currency transactions" and net realized gains or losses on forward currency contracts are included in "Net realized gains (losses) - foreign currency transactions" in the Consolidated Statements of Operations. Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. Dollar. Dividends and Distributions Dividends and distributions to common stockholders are approved by the Board and dividends payable are recorded on the ex-dividend date. The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a dividend, stockholders who have not opted out of the DRIP will have their dividends automatically reinvested in shares of the Company’s common stock, rather than receiving cash dividends. The table below summarizes the Company’s dividends and distributions in the three years ended December 31, 2020: Declared Record Payable Per Share Amount Amount Paid in Cash Amount Settled via Newly Issued Shares Total February 28, 2018 March 14, 2018 March 28, 2018 $ 0.30 $ 14,407,000 $ — $ 14,407,000 August 29, 2018 September 20, 2018 September 27, 2018 0.03 1,539,000 — 1,539,000 October 11, 2018 December 14, 2018 December 21, 2018 0.10 5,128,000 — 5,128,000 Total 2018 dividends and distributions $ 0.43 $ 21,074,000 $ — $ 21,074,000 February 27, 2019 March 13, 2019 March 20, 2019 $ 0.12 $ 6,107,000 $ — $ 6,107,000 May 9, 2019 June 12, 2019 June 19, 2019 0.13 6,541,000 — 6,541,000 July 26, 2019 September 11, 2019 September 18, 2019 0.14 6,935,000 — 6,935,000 October 29, 2019 December 11, 2019 December 18, 2019 0.15 7,345,000 — 7,345,000 Total 2019 dividends and distributions $ 0.54 $ 26,928,000 $ — $ 26,928,000 February 27, 2020 March 11, 2020 March 18, 2020 $ 0.16 $ 7,824,000 $ — $ 7,824,000 April 30, 2020 June 10, 2020 June 17, 2020 0.16 7,674,000 — 7,674,000 August 5, 2020 September 9, 2020 September 16, 2020 0.16 7,674,000 — 7,674,000 November 9, 2020 November 25, 2020 December 2, 2020 0.17 8,153,000 — 8,153,000 Total 2020 dividends and distributions $ 0.65 $ 31,325,000 $ — $ 31,325,000 Per Share Amounts Per share amounts included in the Consolidated Statements of Operations are computed by dividing net investment income and net increase in net assets resulting from operations by the weighted average number of shares of common stock outstanding for the period. As the Company has no common stock equivalents outstanding, diluted per share amounts are the same as basic per share amounts. Net asset value per share is computed by dividing total net assets by the number of common shares outstanding as of the end of the period. 2. Agreements and Related Party Transactions On August 2, 2018, the Company entered into the Original Advisory Agreement and the Administration Agreement with the Adviser, an investment adviser registered under the Investment Advisers Act of 1940, as amended. In connection with the MVC Acquisition (as defined in “Note 11 – MVC Capital, Inc. Acquisition”) , on December 23, 2020, the Company entered into an amended and restated investment advisory agreement (the “Amended and Restated Advisory Agreement”) with the Adviser , following approval of the Amended and Restated F-44 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Advisory Agreement by the Company’s stockholders at its December 23, 2020 special meeting of stockholders. The terms of the Amended and Restated Advisory Agreement became effective on January 1, 2021. The Amended and Restated Advisory Agreement amended the Original Advisory Agreement to, among other things, (i) reduce the annual base management fee payable to the Adviser from 1.375% to 1.250% of the Company’s gross assets, (ii) reset the commencement date for the rolling 12-quarter “look-back” provision used to calculate the income incentive fee and incentive fee cap to January 1, 2021 from January 1, 2020 and (iii) describe the fact that the Company may enter into guarantees, sureties and other credit support arrangements with respect to one or more of its investments, including the impact of these arrangements on the income incentive fee cap. Investment Advisory Agreement Pursuant to the Amended and Restated Advisory Agreement, the Adviser manages the Company's day-to-day operations and provides the Company with investment advisory services. Among other things, the Adviser (i) determines the composition of the portfolio of the Company, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identifies, evaluates and negotiates the structure of the investments made by the Company; (iii) executes, closes, services and monitors the investments that the Company makes; (iv) determines the securities and other assets that the Company will purchase, retain or sell; (v) performs due diligence on prospective portfolio companies and (vi) provides the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably require for the investment of its funds. The Amended and Restated Advisory Agreement provides that, absent fraud, willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of the reckless disregard of its duties and obligations, the Adviser, and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser (collectively, the "IA Indemnified Parties"), are entitled to indemnification from the Company for any damages, liabilities, costs, demands, charges, claims and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the IA Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Company or its security holders) arising out of any actions or omissions or otherwise based upon the performance of any of the Adviser’s duties or obligations under the Amended and Restated Advisory Agreement or otherwise as an investment adviser of the Company. The Adviser’s services under the Amended and Restated Advisory Agreement are not exclusive, and the Adviser is generally free to furnish similar services to other entities so long as its performance under the Amended and Restated Advisory Agreement is not adversely affected. The Adviser has entered into a personnel-sharing arrangement with its affiliate, Barings International Investment Limited ("BIIL"). BIIL is a wholly-owned subsidiary of Baring Asset Management Limited, which in turn is an indirect, wholly-owned subsidiary of the Adviser. Pursuant to this arrangement, certain employees of BIIL may serve as "associated persons" of the Adviser and, in this capacity, subject to the oversight and supervision of the Adviser, may provide research and related services, and discretionary investment management and trading services (including acting as portfolio managers) to the Company on behalf of the Adviser. This arrangement is based on no-action letters of the staff of the Securities and Exchange Commission (the "SEC") that permit SEC-registered investment advisers to rely on and use the resources of advisory affiliates or "participating affiliates," subject to the supervision of that SEC-registered investment adviser. BIIL is a "participating affiliate" of the Adviser, and the BIIL employees are "associated persons" of the Adviser. Under the Amended and Restated Advisory Agreement, the Company pays the Adviser (i) a base management fee (the "Base Management Fee") and (ii) an incentive fee (the "Incentive Fee") as compensation for the investment advisory and management services it provides the Company thereunder. Pre-January 1, 2021 Base Management Fee For the period from January 1, 2020 through December 31, 2020, the Base Management Fee was calculated based on the Company's gross assets, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents, at an annual rate of 1.375%. The annual rate of the Base Management Fee was F-45 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 1.0% for the period from August 2, 2018 through December 31, 2018, and was 1.125% for the period commencing on January 1, 2019 through December 31, 2019. The Base Management Fee was payable quarterly in arrears on a calendar quarter basis. The Base Management Fee was calculated based on the average value of the Company’s gross assets, excluding cash and cash equivalents, at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated. Base Management Fees for any partial month or quarter were appropriately pro-rated. For the years ended December 31, 2020 and December 31, 2019, the Base Management Fee determined in accordance with the terms of the Original Advisory Agreement was approximately $14.3 million and $12.1 million, respectively. As of December 31, 2020, the Base Management Fee of $3.4 million for the three months ended December 31, 2020 was unpaid and included in "Base management fees payable" in the accompanying Consolidated Balance Sheets. As of December 31, 2019, the Base Management Fee of $3.3 million for the three months ended December 31, 2019 was unpaid and included in "Base management fees payable" in the accompanying Consolidated Balance Sheets. For the year ended December 31, 2018, the Base Management Fee determined in accordance with the terms of the Original Advisory Agreement was approximately $4.2 million. For the quarter ended September 30, 2018, the calculation of the Base Management Fee under the terms of the Original Advisory Agreement was based on the average of the Company's gross assets, excluding cash and cash equivalents, as of March 31, 2018 and June 30, 2018, both of which were dates prior to the consummation of the Transactions. For the quarter ended December 31, 2018, the calculation of the Base Management Fee under the terms of the Original Advisory Agreement was based on the average of the Company's gross assets, excluding cash and cash equivalents, as of June 30, 2018, which was prior to the Transactions, and September 30, 2018. In light of this fact, and in order to ensure that the Adviser did not earn a Base Management Fee on assets that it did not manage prior to the Transactions, the Adviser calculated the Base Management Fee for the quarter ended September 30, 2018 based on the Company's average gross assets as of August 2, 2018 and September 30, 2018, excluding (i) cash and cash equivalents, (ii) short-term investments, (iii) unsettled purchased investments and (iv) assets subject to participation agreements (the “Q3 2018 Adjusted Management Fee”). For the quarter ended December 31, 2018, the Adviser calculated the Base Management Fee based on the Company's average gross assets as of September 30, 2018 and December 31, 2018, excluding (i) cash and cash equivalents, (ii) short-term investments, (iii) unsettled purchased investments and (iv) assets subject to participation agreements (the “Q4 2018 Adjusted Management Fee,” and together with the Q3 2018 Adjusted Management Fee,” the “FY 2018 Adjusted Management Fee”). The Adviser voluntary agreed to waive the difference between the $4.2 million Base Management Fee calculated under the terms of the Original Advisory Agreement and the FY 2018 Adjusted Management Fee, which resulted in a net Base Management Fee of approximately $2.7 million for the year ended December 31, 2018 after taking into account a waiver of approximately $1.5 million based on the calculations noted above. Post-December 31, 2020 Base Management Fee Beginning January 1, 2021, the Base Management Fee is calculated based on the Company’s gross assets, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents, at an annual rate of 1.25%. The Base Management Fee is payable quarterly in arrears on a calendar quarter basis. The Base Management Fee will be calculated based on the average value of the Company’s gross assets, excluding cash and cash equivalents, at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated. Base Management Fees for any partial month or quarter will be appropriately pro-rated. Pre-January 1, 2021 Incentive Fee For the period from August 2, 2018 through December 31, 2020, under the Original Advisory Agreement, the Incentive Fee was comprised of two parts: (1) a portion based on the Company’s pre-incentive fee net investment income (the "Pre-2021 Income-Based Fee") and (2) a portion based on the net capital gains received on the Company’s portfolio of securities on a cumulative basis for each calendar year, net of all realized capital losses and all unrealized capital depreciation for that same calendar year (the "Pre-2021 Capital Gains Fee"). F-46 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The Pre-2021 Income-Based Fee was calculated as follows: (i) For each quarter from and after August 2, 2018 through December 31, 2019 (the "Pre-2020 Period"), the Pre-2021 Income-Based Fee was calculated and payable quarterly in arrears based on the Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter for which such fees were being calculated. In respect of the Pre-2020 Period, "Pre-Incentive Fee Net Investment Income" meant interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that the Company receives from portfolio companies) accrued during the relevant calendar quarter, minus the Company’s operating expenses for such quarter (including the Base Management Fee, expenses payable under the Administration Agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. (ii) For each quarter beginning on and after January 1, 2020 (the "Post-2019 Period"), the Pre-2021 Income-Based Fee was calculated and payable quarterly in arrears based on the Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter and the eleven preceding calendar quarters (or such fewer number of preceding calendar quarters counting each calendar quarter beginning on or after January 1, 2020) (each such period referred to as the "Pre-2021 Trailing Twelve Quarters") for which such fees were being calculated and was payable promptly following the filing of the Company’s financial statements for such quarter. In respect of the Post-2019 Period, "Pre-Incentive Fee Net Investment Income" meant interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that the Company receives from portfolio companies) accrued during the relevant Pre-2021 Trailing Twelve Quarters, minus the Company’s operating expenses for such Pre-2021 Trailing Twelve Quarters (including the Base Management Fee, expenses payable under the Administration Agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee) divided by the number of quarters that comprise the relevant Pre-2021 Trailing Twelve Quarters. Pre-Incentive Fee Net Investment Income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. (iii) Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less senior securities constituting indebtedness and preferred stock) at the end of the calendar quarter for which such fees were being calculated, was compared to a "hurdle rate", expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed calendar quarter, of 2% per quarter (8% annualized). The Company paid the Adviser the Pre-2021 Income-Based Fee with respect to the Company’s Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) (a) With respect to the Pre-2020 Period, no Pre-2021 Income-Based Fee for any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) did not exceed the hurdle rate; (b) With respect to the Post-2019 Period, no Pre-2021 Income-Based Fee for any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) did not exceed the hurdle rate; (2) (a) With respect to the Pre-2020 Period, 100% of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) for any calendar quarter with respect to that portion of the Pre-Incentive Fee Net Investment Income for such quarter, if any, that exceeded the hurdle rate F-47 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) but was less than 2.5% (10% annualized) (the "Pre-2020 Catch-Up Amount"). The Pre-2020 Catch-Up Amount was intended to provide the Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) when the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) reached 2% per quarter (8% annualized); (b) With respect to the Post-2019 Period, 100% of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) with respect to that portion of the Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above), if any, that exceeded the hurdle rate but was less than 2.5% (10% annualized) (the "Post-2019 Catch-Up Amount"). The Post-2019 Catch-Up Amount was intended to provide the Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) when the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) reached 2% per quarter (8% annualized); (3) (a) With respect to the Pre-2020 Period, 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) for any calendar quarter with respect to that portion of the Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) for such quarter, if any, that exceeded the Pre-2020 Catch-Up Amount; and (b) With respect to the Post-2019 Period, 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) for any calendar quarter with respect to that portion of the Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above), if any, that exceeded the Post-2019 Catch-Up Amount. However, with respect to the Post-2019 Period, the Pre-2021 Income-Based Fee paid to the Adviser would in no event be in excess of the Pre-2021 Incentive Fee Cap. With respect to the Post-2019 Period, the "Pre-2021 Incentive Fee Cap" for any quarter was an amount equal to (a) 20% of the Cumulative Net Return (as defined below) during the relevant Pre-2021 Trailing Twelve Quarters minus (b) the aggregate Pre-2021 Income-Based Fee that was paid in respect of the first eleven calendar quarters (or the portion thereof) included in the relevant Pre-2021 Trailing Twelve Quarters. Cumulative Net Return meant (x) the aggregate net investment income in respect of the relevant Pre-2021 Trailing Twelve Quarters minus (y) any Net Capital Loss (as defined below), if any, in respect of the relevant Pre-2021 Trailing Twelve Quarters. If, in any quarter, the Pre-2021 Incentive Fee Cap was zero or a negative value, the Company paid no Pre-2021 Income-Based Fee to the Adviser for such quarter. If, in any quarter, the Pre-2021 Incentive Fee Cap for such quarter was a positive value but was less than the Pre-2021 Income-Based Fee that was payable to the Adviser for such quarter (before giving effect to the Pre-2021 Incentive Fee Cap) calculated as described above, the Company paid a Pre-2021 Income-Based Fee to the Adviser equal to the Pre-2021 Incentive Fee Cap for such quarter. If, in any quarter, the Pre-2021 Incentive Fee Cap for such quarter was equal to or greater than the Pre-2021 Income-Based Fee that was payable to the Adviser for such quarter (before giving effect to the Pre-2021 Incentive Fee Cap) calculated as described above, the Company paid an Pre-2021 Income-Based Fee to the Adviser equal to the Pre-2021 Income-Based Fee calculated as described above for such quarter without regard to the Pre-2021 Incentive Fee Cap. Net Capital Loss in respect of a particular period meant the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period. The Pre-2021 Capital Gains Fee was determined and payable in arrears as of the end of each calendar year, commencing with the calendar year ended on December 31, 2018, and was calculated at the end of each applicable year by subtracting (1) the sum of the Company’s cumulative aggregate realized capital losses and aggregate unrealized capital depreciation from (2) the Company’s cumulative aggregate realized capital gains, in each case calculated from August 2, 2018. If such amount was positive at the end of such year, then the Pre-2021 Capital Gains Fee payable for such year was equal to 20% of such amount, less the cumulative aggregate amount of F-48 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Pre-2021 Capital Gains Fees paid in all prior years. If such amount was negative, then there was no Pre-2021 Capital Gains Fee payable for such year. The Company did not pay any Incentive Fees for the years ended December 31, 2020, 2019 and 2018. Post-December 31, 2020 Incentive Fee Beginning January 1, 2021, the Incentive Fee continues to consist of two components that are independent of each other, with the result that one component may be payable even if the other is not. Under the Amended and Restated Advisory Agreement, a portion of the Incentive Fee is based on the Company's income (the “ Income-Based Fee”) and a portion is based on the Company's capital gains (the “Capital Gains Fee”), each as described below: (i) The Income-Based Fee will be determined and paid quarterly in arrears based on the amount by which (x) the aggregate “Pre-Incentive Fee Net Investment Income” (as defined below) in respect of the current calendar quarter and the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after January 1, 2021, as the case may be (or the appropriate portion thereof in the case of any of the Company's first eleven calendar quarters that commences on or after January 1, 2021) (in either case, the “Trailing Twelve Quarters”) exceeds (y) the Hurdle Amount (as defined below) in respect of the Trailing Twelve Quarters. The Hurdle Amount will be determined on a quarterly basis, and will be calculated by multiplying 2.0% (8% annualized) by the aggregate of the Company's net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters. For this purpose, under the Amended and Restated Advisory Agreement, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including, without limitation, any accrued income that we have not yet received in cash and any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company's operating expenses accrued during the calendar quarter (including, without limitation, the Base Management Fee, administration expenses and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the Income-Based Fee and the Capital Gains Fee). For the avoidance of doubt, Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation: The calculation of the Income-Based Fee for each quarter is as follows: (A) No Income-Based Fee will be payable to the Adviser in any calendar quarter in which the Company's aggregate Pre-Incentive Fee Net Investment Income for the Trailing Twelve Quarters does not exceed the Hurdle Amount; (B) 100% of the Company's aggregate Pre-Incentive Fee Net Investment Income for the Trailing Twelve Quarters, if any, that exceeds the Hurdle Amount but is less than or equal to an amount (the “Catch-Up Amount”) determined on a quarterly basis by multiplying 2.5% (10% annualized) by the Company's net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters. The Catch-Up Amount is intended to provide the Adviser with an incentive fee of 20% on all of the Company's Pre-Incentive Fee Net Investment Income when the Company's Pre-Incentive Fee Net Investment Income reaches the Catch-Up Amount for the Trailing Twelve Quarters; and (C) For any quarter in which the Company's aggregate Pre-Incentive Fee Net Investment Income for the Trailing Twelve Quarters exceeds the Catch-Up Amount, the Income-Based Fee shall equal 20% of the amount of the Company's Pre-Incentive Fee Net Investment Income for such Trailing Twelve Quarters, as the Hurdle Amount and Catch-Up Amount will have been achieved. Subject to the Incentive Fee Cap described below, the amount of the Income-Based Fee that will be paid to the Adviser for a particular quarter will equal the excess of the aggregate Income-Based Fee so calculated less the aggregate Income-Based Fees that were paid to the Adviser in the preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve Quarters. F-49 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) (ii) The Income-Based Fee is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20% of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the relevant Trailing Twelve Quarters less (b) the aggregate Income-Based Fee that were paid to the Adviser in the preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve Quarters. For this purpose, “Cumulative Pre-Incentive Fee Net Return” during the relevant Trailing Twelve Quarters means (x) Pre-Incentive Fee Net Investment Income in respect of the Trailing Twelve Quarters less (y) any Net Capital Loss, if any, in respect of the Trailing Twelve Quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, we will pay no Income-Based Fee to the Adviser in that quarter. If, in any quarter, the Incentive Fee Cap is a positive value but is less than the Income-Based Fee calculated in accordance with paragraph (i) above, we will pay the Adviser the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap is equal to or greater than the Income-Based Fee calculated in accordance with paragraph (i) above, we will pay the Adviser the Income-Based Fee for such quarter. “Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses on the Company's assets, whether realized or unrealized, in such period and (ii) aggregate capital gains or other gains on the Company's assets (including, for the avoidance of doubt, the value ascribed to any credit support arrangement in the Company's financial statements even if such value is not categorized as a gain therein), whether realized or unrealized, in such period. (iii) The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears as of the end of each calendar year (or upon termination of the Amended and Restated Advisory Agreement), commencing with the calendar year ended on December 31, 2018, and is calculated at the end of each applicable year by subtracting (1) the sum of the Company's cumulative aggregate realized capital losses and aggregate unrealized capital depreciation from (2) the Company's cumulative aggregate realized capital gains, in each case calculated from August 2, 2018. If such amount is positive at the end of such year, then the Capital Gains Fee payable for such year is equal to 20% of such amount, less the cumulative aggregate amount of Capital Gains Fees paid in all prior years commencing with the calendar year ended on December 31, 2018. If such amount is negative, then there is no Capital Gains Fee payable for such year. If this Agreement is terminated as of a date that is not a calendar year end, the termination date will be treated as though it were a calendar year end for purposes of calculating and paying a Capital Gains Fee. Under the Amended and Restated Advisory Agreement, the "cumulative aggregate realized capital gains" are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company's portfolio when sold and (b) the accreted or amortized cost basis of such investment. The cumulative aggregate realized capital losses are calculated as the sum of the differences, if negative, between (a) the net sales price of each investment in the Company's portfolio when sold and (b) the accreted or amortized cost basis of such investment. The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company's portfolio as of the applicable Capital Gains Fee calculation date and (b) the accreted or amortized cost basis of such investment. Under the Amended and Restated Advisory Agreement, the “ accreted or amortized cost basis of an investment” shall mean the accreted or amortized cost basis of such investment as reflected in the Company’s financial statements. Payment of Company Expenses Under the Amended and Restated Advisory Agreement, all investment professionals of the Adviser and its staff, when and to the extent engaged in providing services required to be provided by the Adviser under the Amended and Restated Advisory Agreement, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Adviser and not by the Company, except that F-50 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) all costs and expenses relating to the Company's operations and transactions, including, without limitation, those items listed in the Amended and Restated Advisory Agreement, will be borne by the Company. Administration Agreement Under the terms of the Administration Agreement, the Adviser performs (or oversees, or arranges for, the performance of) the administrative services necessary for the operation of the Company, including, but not limited to, office facilities, equipment, clerical, bookkeeping and record-keeping services at such office facilities and such other services as the Adviser, subject to review by the Board, from time to time, determines to be necessary or useful to perform its obligations under the Administration Agreement. The Adviser also, on behalf of the Company and subject to oversight by the Board, arranges for the services of, and oversees, custodians, depositories, transfer agents, dividend disbursing agents, other stockholder servicing agents, accountants, attorneys, valuation experts, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. The Company will reimburse Barings for the costs and expenses incurred by it in performing its obligations and providing personnel and facilities under the Administration Agreement in an amount to be negotiated and mutually agreed to by the Company and Barings quarterly in arrears. In no event will the agreed-upon quarterly expense amount exceed the amount of expenses that would otherwise be reimbursable by the Company under the Administration Agreement for the applicable quarterly period, and Barings will not be entitled to the recoupment of any amounts in excess of the agreed-upon quarterly expense amount. The costs and expenses incurred by the Adviser on behalf of the Company under the Administration Agreement include, but are not limited to: • the allocable portion of the Adviser’s rent for the Company’s Chief Financial Officer and the Chief Compliance Officer and their respective staffs, which is based upon the allocable portion of the usage thereof by such personnel in connection with their performance of administrative services under the Administration Agreement; • the allocable portion of the salaries, bonuses, benefits and expenses of the Company’s Chief Financial Officer and Chief Compliance Officer and their respective staffs, which is based upon the allocable portion of the time spent by such personnel in connection with performing administrative services for the Company under the Administration Agreement; • the actual cost of goods and services used for the Company and obtained by the Adviser from entities not affiliated with the Company, which is reasonably allocated to the Company on the basis of assets, revenues, time records or other methods conforming with generally accepted accounting principles; • all fees, costs and expenses associated with the engagement of a sub-administrator, if any; and • costs associated with (a) the monitoring and preparation of regulatory reporting, including registration statements and amendments thereto, prospectus supplements, and tax reporting, (b) the coordination and oversight of service provider activities and the direct cost of such contractual matters related thereto and (c) the preparation of all financial statements and the coordination and oversight of audits, regulatory inquiries, certifications and sub-certifications. For the years ended December 31, 2020 and 2019, the Company incurred and was invoiced by the Adviser for expenses of approximately $1.6 million and $2.3 million, respectively, under the terms of the Administration Agreement. For the year ended December 31, 2018, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.5 million. As of December 31, 2020, the administrative expenses of $0.7 million incurred for the three months ended December 31, 2020 were unpaid and included in "Administrative fees payable" in the accompanying Consolidated Balance Sheets. As of December 31, 2019, the administrative expenses of $0.4 million incurred for the three months ended December 31, 2019 were unpaid and included in "Administrative fees payable" in the accompanying Consolidated Balance Sheets. F-51 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Credit Support Agreement In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Merger (as defined in “Note 11 – MVC Capital, Inc. Acquisition”) , the Company entered into a Credit Support Agreement (the “Credit Support Agreement”) with the Adviser, pursuant to which the Adviser has agreed to provide credit support to the Company in the amount of up to $23.0 million relating to the net cumulative realized and unrealized losses on the acquired MVC investment portfolio over a 10-year period. A summary of the material terms of the Credit Support Agreement are as follows: • The Credit Support Agreement covers all of the investments in the Reference Portfolio. • The Adviser has an obligation to provide credit support to the Company in an amount equal to the excess of (1) the aggregate realized and unrealized losses on the Reference Portfolio over (2) the aggregate realized and unrealized gains on the Reference Portfolio, in each case from the date of the closing of the Merger through the Designated Settlement Date (up to a $23.0 million cap) (such amount, the “Covered Losses”). For purposes of the Credit Support Agreement, “Designated Settlement Date” means the earlier of (1) January 1, 2031 and (2) the date on which the entire Reference Portfolio has been realized or written off. No credit support is required to be made by the Adviser to the Company under the Credit Support Agreement if the aggregate realized and unrealized gains on the Reference Portfolio exceed realized and unrealized losses of the Reference Portfolio on the Designated Settlement Date. • The Adviser will settle any credit support obligation under the Credit Support Agreement as follows. If the Covered Losses are greater than $0.00, then, in satisfaction of the Adviser’s obligation set forth in the Credit Support Agreement, the Adviser will irrevocably waive during the Waiver Period (as defined below) (1) the incentive fees payable under the Amended and Restated Advisory Agreement (including any incentive fee calculated on an annual basis during the Waiver Period), and (2) in the event that Covered Losses exceed such incentive fee, the base management fees payable under the Amended and Restated Advisory Agreement. The “Waiver Period” means the four quarterly measurement periods immediately following the quarter in which the Designated Settlement Date occurs. If the Covered Losses exceed the aggregate amount of incentive fees and base management fees waived by the Adviser during the Waiver Period, then, on the date on which the last incentive fee or base management fee payment would otherwise be due during the Waiver Period, the Adviser shall make a cash payment to the Company equal to the positive difference between the Covered Losses and the aggregate amount of incentive fees and base management fees previously waived by the Adviser during the Waiver Period. • The Credit Support Agreement and the rights of the Company thereunder shall automatically terminate if the Adviser (or an affiliate of the Adviser) ceases to serve as the investment adviser to the Company or any successor thereto, other than as a result of the voluntary termination by the Adviser of its investment advisory agreement with the Company. In the event of such a voluntary termination by the Adviser of the then-current investment advisory agreement with the Company, the Adviser will remain obligated to provide the credit support contemplated by the Credit Support Agreement. In the event of a non-voluntary termination of the advisory agreement or its expiration (due to non-renewal by the Board, the Adviser will have no obligations under the Credit Support Agreement. The Credit Support Agreement is intended to give stockholders of the combined company downside protection from net cumulative realized and unrealized losses on the acquired MVC portfolio and insulate the combined company’s stockholders from potential value volatility and losses in MVC’s portfolio following the closing of the Merger. There is no fee or other payment by the Company to the Adviser or any of its affiliates in connection with the Credit Support Agreement. Any cash payment from the Adviser to the Company under the Credit Support Agreement will be excluded from the combined company’s incentive fee calculations under the Amended and Restated Advisory Agreement. When the Company and the Adviser entered into the Credit Support Agreement, it was accounted for as a deemed contribution from the Adviser and is included in "Additional paid-in capital" in the accompanying Consolidated Balance Sheets. In addition, the Credit Support Agreement will be accounted for as a derivative in F-52 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) accordance with ASC 815, Derivatives and Hedging , and is included in "Credit support agreement" in the accompanying Consolidated Balance Sheets. 3. Investments Portfolio Composition The Company invests predominately in senior secured private debt investments in well-established middle-market businesses that operate across a wide range of industries, as well as syndicated senior secured loans, structured products, bonds and other fixed income securities. Structured products include collateralized loan obligations and asset-backed securities. The Adviser's existing SEC co-investment exemptive relief under the 1940 Act, permits the Company and the Adviser's affiliated private funds and SEC-registered funds to co-invest in loans originated by the Adviser, which allows the Adviser to efficiently implement its senior secured private debt investment strategy for the Company. The cost basis of the Company's debt investments includes any unamortized purchased premium or discount and unamortized loan origination fees and PIK interest, if any. Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments, are shown in the following tables: Cost Percent of Total Portfolio Fair Value Percent of Total Portfolio Percent of Total Net Assets December 31, 2020: Senior debt and 1 st lien notes $ 1,167,436,742 79 % $ 1,171,250,512 79 % 163 % Subordinated debt and 2 nd lien notes 137,776,808 9 138,767,120 9 19 Structured products 30,071,808 2 32,508,845 2 5 Equity shares 44,693,645 3 44,651,114 3 6 Equity warrants 1,235,383 — 1,300,197 — — Investments in joint ventures / PE fund 39,282,532 3 41,759,922 3 6 Short-term investments 65,558,227 4 65,558,227 4 9 $ 1,486,055,145 100 % $ 1,495,795,937 100 % 208 % December 31, 2019: Senior debt and 1 st lien notes $ 1,070,031,715 90 % $ 1,050,863,369 90 % 184 % Subordinated debt and 2 nd lien notes 15,339,180 1 15,220,969 1 3 Equity shares 515,825 — 760,716 — — Investment in joint venture 10,158,270 1 10,229,813 1 2 Short-term investments 96,568,940 8 96,568,940 8 17 $ 1,192,613,930 100 % $ 1,173,643,807 100 % 206 % During the year ended December 31, 2020, the Company made 76 new investments totaling $743.2 million, purchased $185.0 million of investments as part of the MVC Acquisition, made investments in existing portfolio companies totaling $114.6 million, made a new joint venture equity investment totaling $10.0 million and made an additional investment in one existing joint venture equity portfolio company totaling $10.0 million. During the year ended December 31, 2019, the Company made 43 new investments totaling $425.9 million, investments in existing portfolio companies totaling $14.0 million and made one new joint venture equity investment totaling $10.2 million. During the year ended December 31, 2018, subsequent to the Transactions, the Company purchased $1,314.6 million in syndicated senior secured loans and made new investments in nineteen middle-market portfolio companies totaling $237.2 million. Prior to the Transactions, in the year ended December 31, 2018, the Company made investments in 12 existing portfolio companies totaling approximately $30.7 million. F-53 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Industry Composition The industry composition of investments at fair value at December 31, 2020 and December 31, 2019, excluding short-term investments, was as follows: December 31, 2020 Percent of Portfolio December 31, 2019 Percent of Portfolio Aerospace and Defense $ 82,501,170 5.8 % $ 71,899,486 6.7 % Automotive 61,581,980 4.3 29,879,546 2.8 Banking, Finance, Insurance and Real Estate 99,099,552 6.9 83,826,677 7.8 Beverage, Food and Tobacco 15,404,126 1.1 11,837,328 1.1 Capital Equipment 30,899,579 2.2 62,694,548 5.8 Chemicals, Plastics, and Rubber 32,378,972 2.3 31,989,552 3.0 Construction and Building 59,861,616 4.2 23,222,638 2.2 Consumer goods: Durable 38,165,784 2.7 30,207,496 2.8 Consumer goods: Non-durable 28,081,580 2.0 13,958,377 1.3 Containers, Packaging and Glass 9,018,983 0.6 32,465,070 3.0 Energy: Electricity 17,627,935 1.2 16,561,352 1.5 Energy: Oil and Gas 788,105 0.1 14,031,270 1.3 Healthcare and Pharmaceuticals 142,708,050 10.0 106,336,903 9.9 High Tech Industries 152,413,985 10.6 124,598,066 11.6 Hotel, Gaming and Leisure 10,682,093 0.7 5,978,910 0.6 Investment Funds and Vehicles 41,759,922 2.9 10,229,813 0.9 Media: Advertising, Printing and Publishing 54,123,033 3.8 30,919,615 2.9 Media: Broadcasting and Subscription 6,464,741 0.4 — — Media: Diversified and Production 48,200,216 3.4 31,962,571 3.0 Metals and Mining 17,857,236 1.2 12,284,823 1.1 Retail 1,983,083 0.1 28,438,030 2.6 Services: Business 209,974,914 14.7 127,261,336 11.8 Services: Consumer 54,450,324 3.8 35,667,981 3.3 Structured Products 32,508,845 2.3 — — Telecommunications 43,021,001 3.0 33,725,812 3.1 Transportation: Cargo 91,132,943 6.4 83,353,452 7.7 Transportation: Consumer — — 5,845,206 0.5 Utilities: Electric 8,987,929 0.6 6,028,435 0.6 Utilities: Oil and Gas 11,645,956 0.8 11,870,574 1.1 Wholesale 26,914,057 1.9 — — Total $ 1,430,237,710 100.0 % $ 1,077,074,867 100.0 % F-54 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Jocassee Partners LLC On May 8, 2019, the Company entered into an agreement with South Carolina Retirement Systems Group Trust ("SCRS") to create and co-manage Jocassee Partners LLC ("Jocassee"), a joint venture, which invests in a highly diversified asset mix including senior secured, middle-market, private debt investments, syndicated senior secured loans, structured products and real estate debt. The Company and SCRS committed to initially provide $50.0 million and $500.0 million, respectively, of equity capital to Jocassee. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments. As of December 31, 2020, Jocassee had $180.6 million in senior secured private middle-market debt investments, $382.9 million in U.S. syndicated senior secured loans, $161.5 million in European syndicated senior secured loans, $25.6 million in structured product investments, $5.8 million in an equity investment, $90.1 million in a joint venture investment and $23.1 million in short-term investments. As of December 31, 2019, Jocassee had $41.3 million in senior secured private middle-market debt investments, $140.8 million in U.S. syndicated senior secured loans, $57.3 million in European syndicated senior secured loans, $8.2 million in an equity investment and $36.7 million in a short-term investment. The Company may sell portions of its investments via assignment to Jocassee. Since inception, as of December 31, 2020, and December 31, 2019, the Company had sold $162.2 million and $36.1 million, respectively, of its investments to Jocassee. As of December 31, 2020, the Company had $44.2 million in unsettled receivables due from Jocassee that were included in "Receivable from unsettled transactions" in the accompanying Consolidated Balance Sheets. The sale of the investments met the criteria set forth in ASC 860, Transfers and Servicing for treatment as a sale and satisfies the following conditions: • Assigned investments have been isolated from the Company, and put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership; • each participant has the right to pledge or exchange the assigned investments it received, and no condition both constrains the participant from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the Company; and • the Company, its consolidated affiliates or its agents do not maintain effective control over the assigned investments through either: (i) an agreement that entitles and/or obligates the Company to repurchase or redeem the assets before maturity, or (ii) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. The Company has determined that Jocassee is an investment company under ASC, Topic 946, Financial Services - Investment Companies , however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Jocassee as it is not a substantially wholly owned investment company subsidiary. In addition, the Company does not control Jocassee due to the allocation of voting rights among Jocassee members. F-55 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) As of December 31, 2020 and December 31, 2019, Jocassee had the following commitments, contributions and unfunded commitments from its members: As of December 31, 2020 Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments Barings BDC, Inc. $ 50,000,000 $ 20,000,000 $ — $ 30,000,000 South Carolina Retirement Systems Group Trust 500,000,000 200,000,000 — 300,000,000 Total $ 550,000,000 $ 220,000,000 $ — $ 330,000,000 As of December 31, 2019 Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments Barings BDC, Inc. $ 50,000,000 $ 10,000,000 $ — $ 40,000,000 South Carolina Retirement Systems Group Trust 500,000,000 100,000,000 — 400,000,000 Total $ 550,000,000 $ 110,000,000 $ — $ 440,000,000 Thompson Rivers LLC On April 28, 2020, Thompson Rivers LLC (“Thompson Rivers”) was formed as a Delaware limited liability company. On May 13, 2020, the Company entered into a limited liability company agreement (“LLC Agreement”) with Jocassee. The Company and Jocassee have committed to initially provide $10.0 million and $90.0 million, respectively, of equity capital to Thompson Rivers. Equity contributions (and equity ownership) are on a pro-rata basis, based on their equity commitments (10% for the Company and 90% for Jocassee). As of December 31, 2020, Thompson Rivers had $715.2 million in Ginnie Mae early buyout loans. The Company has determined that Thompson Rivers is an investment company under ASC, Topic 946, Financial Services - Investment Companies , however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its interest in Thompson Rivers as it is not a substantially wholly owned investment company subsidiary. In addition, the Company does not control Thompson Rivers due to the allocation of voting rights among Thompson Rivers members. As of December 31, 2020, Thompson Rivers had the following commitments, contributions and unfunded commitments from its members: As of December 31, 2020 Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments Barings BDC, Inc. $ 10,000,000 $ 10,000,000 $ — $ — Jocassee Partners LLC 90,000,000 90,000,000 — — Total $ 100,000,000 $ 100,000,000 $ — $ — F-56 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The following table presents the Company’s investment portfolio at fair value as of December 31, 2020 and 2019, categorized by the ASC Topic 820 valuation hierarchy, as previously described: Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Total Senior debt and 1 st lien notes $ — $ 115,533,401 $ 1,055,717,111 $ 1,171,250,512 Subordinated debt and 2 nd lien notes — 7,947,184 130,819,936 138,767,120 Structured products — 32,508,845 — 32,508,845 Equity shares — 424,090 44,227,024 44,651,114 Equity warrants — 166,416 1,133,781 1,300,197 Short-term investments 65,558,227 — — 65,558,227 Investments subject to leveling $ 65,558,227 $ 156,579,936 $ 1,231,897,852 $ 1,454,036,015 Investments in joint ventures / PE fund(1) 41,759,922 $ 1,495,795,937 Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Senior debt and 1 st lien notes $ — $ 495,363,062 $ 555,500,307 $ 1,050,863,369 Subordinated debt and 2 nd lien notes — 3,209,004 12,011,965 15,220,969 Equity shares — — 760,716 760,716 Short-term investments 96,568,940 — — 96,568,940 Investments subject to leveling $ 96,568,940 $ 498,572,066 $ 568,272,988 $ 1,163,413,994 Investment in joint venture(1) 10,229,813 $ 1,173,643,807 (1) The Company's investments in Jocassee, Thompson Rivers and the MVC PE Fund are measured at fair value using net asset value and have not been categorized in the fair value hierarchy. The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. F-57 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The following tables reconcile the beginning and ending balances of the Company’s investment portfolio measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020: Senior Debt and 1 st Lien Notes Subordinated Debt and 2 nd Lien Notes Equity Shares Equity Warrants Total Fair value, beginning of period $ 555,500,307 $ 12,011,965 $ 760,716 $ — $ 568,272,988 New investments 735,177,116 4,027,048 862,277 — 740,066,441 Investments acquired in MVC merger 9,720,000 122,082,933 42,980,466 1,133,781 175,917,180 Transfers into (out of) Level 3, net 19,074,284 (2,677,220) — — 16,397,064 Proceeds from sales of investments (209,685,651) (444,978) (78,992) — (210,209,621) Loan origination fees received (17,726,770) (19,808) — — (17,746,578) Principal repayments received (37,416,476) (5,104,857) — — (42,521,333) Payment-in-kind interest earned 249,907 41,753 — — 291,660 Accretion of loan premium/discount 17,936 1,045 — — 18,981 Accretion of deferred loan origination revenue 2,631,269 44,571 — — 2,675,840 Realized gain (loss) 1,544,794 (35,357) (10,019) — 1,499,418 Unrealized appreciation (depreciation) (3,369,605) 892,841 (287,424) — (2,764,188) Fair value, end of period $ 1,055,717,111 $ 130,819,936 $ 44,227,024 $ 1,133,781 $ 1,231,897,852 Year Ended December 31, 2019: Senior Debt and 1 st Lien Notes Subordinated Debt and 2 nd Lien Notes Equity Shares Total Fair value, beginning of period $ 257,987,259 $ 7,679,132 $ 515,825 $ 266,182,216 New investments 414,676,673 7,301,685 — 421,978,358 Transfers out of Level 3, net (20,602,230) — — (20,602,230) Proceeds from sales of investments (39,665,684) — — (39,665,684) Loan origination fees received (8,427,797) (148,551) — (8,576,348) Principal repayments received (52,423,326) (2,980,874) — (55,404,200) Accretion of loan premium/discount (18,682) 797 — (17,885) Accretion of deferred loan origination revenue 1,506,175 74,231 — 1,580,406 Realized gain 197,877 — — 197,877 Unrealized appreciation 2,270,042 85,545 244,891 2,600,478 Fair value, end of period $ 555,500,307 $ 12,011,965 $ 760,716 $ 568,272,988 All realized gains and losses and unrealized appreciation and depreciation are included in earnings (changes in net assets) and are reported on separate line items within the Company’s Consolidated Statements of Operations. Pre-tax net unrealized depreciation on Level 3 investments of $4.9 million during the year ended December 31, 2020 was related to portfolio company investments that were still held by the Company as of December 31, 2020. Pre-tax net unrealized depreciation on Level 3 investments of $1.5 million during the year ended December 31, 2019 was related to portfolio company investments that were still held by the Company as of December 31, 2019. F-58 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The Company’s primary investment objective is to generate current income by investing directly in privately-held middle-market companies to help these companies fund acquisitions, growth or refinancing. Exclusive of short-term investments, during the year ended December 31, 2020, the Company made investments of approximately $1,030.5 million in portfolio companies (including $185.0 million from the MVC Acquisition), to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2020, the Company made investments of $32.4 million in companies to which it was previously committed to provide such financing. Exclusive of short-term investments, during the year ended December 31, 2019, the Company made investments of approximately $439.7 million in portfolio companies to which it was not previously contractually committed to provide such financing. During the year ended December 31, 2019, the Company made investments of $11.5 million in companies to which it was previously committed to provide such financing. 4. Borrowings The Company had the following borrowings outstanding as of December 31, 2020 and 2019: Issuance Date Maturity Date Interest Rate as of December 31, 2020 December 31, 2020 December 31, 2019 Credit Facilities: August 3, 2018 - Class A-1 NA NA $ — $ 107,200,000 February 21, 2019 February 21, 2024 2.141% 719,660,707 245,288,419 Total Credit Facilities $ 719,660,707 $ 352,488,419 Debt Securitization: May 9, 2019 - Class A-1 2019 Notes NA NA $ — $ 266,710,176 May 9, 2019 - Class A-2 2019 Notes NA NA — 51,500,000 Less: Deferred financing fees — (1,545,702) Total Debt Securitization $ — $ 316,664,474 Notes: September 24, 2020 - August 2025 Notes August 4, 2025 4.660% $ 25,000,000 $ — September 29, 2020 - August 2025 Notes August 4, 2025 4.660% 25,000,000 — November 5, 2020 - Series B Notes November 4, 2025 4.250% 62,500,000 — November 5, 2020 - Series C Notes November 4, 2027 4.750% 112,500,000 — Less: Deferred financing fees (664,334) — Total Notes $ 224,335,666 $ — August 2018 Credit Facility On July 3, 2018, the Company formed Barings BDC Senior Funding I, LLC, an indirectly wholly-owned Delaware limited liability company (“BSF”), the primary purpose of which was to function as the Company's special purpose, bankruptcy-remote, financing subsidiary. On August 3, 2018, BSF entered into the August 2018 Credit Facility (as subsequently amended in December 2018 and in February 2020) with Bank of America, N.A., as administrative agent and Class A-1 Lender, Société Générale, as Class A Lender, and Bank of America Merrill Lynch, as sole lead arranger and sole book manager. BSF and the administrative agent also entered into a security agreement dated as of August 3, 2018 (the "Security Agreement") pursuant to which BSF’s obligations under the August 2018 Credit Facility were secured by a first-priority security interest in substantially all of the assets of BSF, including its portfolio of investments (the "Pledged Property"). In connection with the first-priority security interest established under the Security Agreement, all of the Pledged Property was held in the custody of State Street Bank and Trust Company, as collateral administrator. F-59 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The August 2018 Credit Facility initially provided for borrowings in an aggregate amount up to $750.0 million, including up to $250.0 million borrowed under the Class A Loan Commitments and up to $500.0 million borrowed under the Class A-1 Loan Commitments. Effective February 28, 2019, the Company reduced its Class A Loan Commitments to $100.0 million, which reduced total commitments under the August 2018 Credit Facility to $600.0 million. Effective May 9, 2019, the Company further reduced its Class A Loan Commitments under the August 2018 Credit Facility from $100.0 million to zero and reduced its Class A-1 Loan Commitments under the August 2018 Credit Facility from $500.0 million to $300.0 million, which collectively reduced total commitments under the August 2018 Credit Facility to $300.0 million. Effective June 18, 2019, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $300.0 million to $250.0 million. Effective August 14, 2019, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $250.0 million to $177.0 million. Effective October 29, 2019, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $177.0 million to $150.0 million. Effective January 21, 2020, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $150.0 million to $80.0 million. Effective April 23, 2020, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $80.0 million to $30.0 million. Finally, effective June 26, 2020, the Company further reduced its Class A-1 Loan Commitments, and therefore total commitments, under the August 2018 Credit Facility from $30.0 million to zero. In connection with these reductions, the pro rata portion of the unamortized deferred financing costs related to the August 2018 Credit Facility was written off and recognized as a loss on extinguishment of debt in the Company's Consolidated Statements of Operations. On February 21, 2020, the Company extended the maturity date of the August 2018 Credit Facility from August 3, 2020 to August 3, 2021. On June 30, 2020, following the repayment of all borrowings, interest, and fees payable thereunder and at the election of the Company, the August 2018 Credit Facility was terminated, including all commitments and obligations of Bank of America, N.A. to lend or make advances to BSF. In addition, the Security Agreement was terminated and all security interests in the assets of BSF in favor of the lenders were terminated. As a result of these terminations, all obligations of BSF under the August 2018 Credit Facility and Security Agreement were fully discharged. All borrowings under the August 2018 Credit Facility bore interest, subject to BSF’s election, on a per annum basis equal to (i) the applicable base rate plus the applicable spread or (ii) the applicable LIBOR rate plus the applicable spread. The applicable base rate was equal to the greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate or (iii) one-month LIBOR plus 1.0%. The applicable LIBOR rate depended on the term of the borrowing under the August 2018 Credit Facility, which could be either one month or three months, and could not be less than zero. BSF was required to pay commitment fees on the unused portion of the August 2018 Credit Facility. BSF could prepay any borrowing at any time without premium or penalty, except that BSF could have been liable for certain funding breakage fees if prepayments occurred prior to expiration of the relevant interest period. BSF could also permanently reduce all or a portion of the commitment amount under the August 2018 Credit Facility without penalty. Borrowings under the August 2018 Credit Facility were subject to compliance with a borrowing base, pursuant to which the amount of funds advanced by the lenders to BSF would vary depending upon the types of assets in BSF’s portfolio. Assets were required to meet certain criteria to be included in the borrowing base, and the borrowing base was subject to certain portfolio restrictions including investment size, sector concentrations, investment type and credit ratings. Borrowings of BSF were considered borrowings by the Company for purposes of complying with the asset coverage requirements under the 1940 Act applicable to business development companies. The obligations of BSF under the August 2018 Credit Facility were non-recourse to the Company. As of December 31, 2019, BSF had borrowings of $107.2 million, outstanding under the August 2018 Credit Facility with an interest rate of 2.940%. As of December 31, 2019, the total fair value of the borrowings outstanding under the August 2018 Credit Facility was $107.2 million. The fair values of the borrowings outstanding under the August 2018 Credit Facility were based on a market yield approach and current interest rates, which were Level 3 inputs to the market yield model. The August 2018 Credit Facility was terminated at the Company’s election on June 30, 2020. F-60 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) February 2019 Credit Facility On February 21, 2019, the Company entered into the February 2019 Credit Facility (as subsequently amended in December 2019) with ING Capital LLC ("ING"), as administrative agent, and the lenders party thereto. The initial commitments under the February 2019 Credit Facility total $800.0 million. The February 2019 Credit Facility has an accordion feature that allows for an increase in the total commitments of up to $400.0 million, subject to certain conditions and the satisfaction of specified financial covenants. The Company can borrow foreign currencies directly under the February 2019 Credit Facility. The February 2019 Credit Facility, which is structured as a revolving credit facility, is secured primarily by a material portion of the Company's assets and guaranteed by certain subsidiaries of the Company. Following the termination of the August 2018 Credit Facility on June 30, 2020, BSF became a subsidiary guarantor and its assets will secure the February 2019 Credit Facility. The revolving period of the February 2019 Credit Facility ends on February 21, 2023, followed by a one-year repayment period with a final maturity date of February 21, 2024. Borrowings under the February 2019 Credit Facility bear interest, subject to the Company's election, on a per annum basis equal to (i) the applicable base rate plus 1.00% (or 1.25% if the Company no longer maintains an investment grade credit rating), (ii) the applicable LIBOR rate plus 2.00% (or 2.25% if the Company no longer maintains an investment grade credit rating), (iii) for borrowings denominated in certain foreign currencies other than Australian dollars, the applicable currency rate for the foreign currency as defined in the credit agreement plus 2.00% (or 2.25% if the Company no longer maintains an investment grade credit rating) or (iv) for borrowings denominated in Australian dollars, the applicable Australian dollars Screen Rate, plus 2.20% (or 2.45% if the Company no longer maintains an investment grade credit rating). The applicable base rate is equal to the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.5%, (iii) the Overnight Bank Funding Rate plus 0.5%, (iv) the adjusted three-month applicable currency rate plus 1.0% and (v) 1.0%. The applicable LIBOR and currency rates depend on the currency and term of the draw under the February 2019 Credit Facility, and cannot be less than zero. In addition, the Company (i) paid a commitment fee of 0.375% per annum on undrawn amounts for the period beginning on the closing date of the February 2019 Credit Facility to and including the date that was six months after the closing date of the February 2019 Credit Facility, and (ii) thereafter pays a commitment fee of (x) 0.5% per annum on undrawn amounts if the unused portion of the February 2019 Credit Facility is greater than two-thirds of total commitments or (y) 0.375% per annum on undrawn amounts if the unused portion of the February 2019 Credit Facility is equal to or less than two-thirds of total commitments. In connection with entering into the February 2019 Credit Facility, the Company incurred financing fees of approximately $6.4 million, which will be amortized over the remaining life of the February 2019 Credit Facility. The February 2019 Credit Facility contains certain affirmative and negative covenants, including but not limited to (i) maintaining minimum stockholders' equity, (ii) maintaining minimum obligors' net worth, (iii) maintaining a minimum asset coverage ratio, (iv) meeting a minimum liquidity test and (v) maintaining the Company's status as a regulated investment company and as a business development company. The February 2019 Credit Facility also contains customary events of default with customary cure and notice provisions, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default to other indebtedness, bankruptcy, change of control, and material adverse effect. The February 2019 Credit Facility also permits the administrative agent to select an independent third party valuation firm to determine valuations of certain portfolio investments for purposes of borrowing base provisions. In connection with the February 2019 Credit Facility, the Company also entered into new collateral documents. As of December 31, 2020, the Company was in compliance with all covenants under the February 2019 Credit Facility. As of December 31, 2020, the Company had U.S. dollar borrowings of $472.0 million outstanding under the February 2019 Credit Facility with a weighted average interest rate of 2.188% (weighted average one month LIBOR of 0.188%), borrowings denominated in Swedish kronas of 12.8kr million ($1.6 million U.S. dollars) with an interest rate of 2.000% (one month STIBOR of 0.000%), borrowings denominated in British pounds sterling of £69.3 million ($94.8 million U.S. dollars) with a weighted average interest rate of 2.063% (weighted average one month GBP LIBOR of 0.063%), borrowings denominated in Australian dollars of A$36.6 million ($28.2 million U.S. dollars) with a weighted average interest rate of 2.250% (weighted average one month AUD Screen Rate of 0.050%) and borrowings denominated in Euros of €100.6 million ($123.1 million U.S. dollars) with a weighted average F-61 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) interest rate of 2.00% (weighted average one month EURIBOR of 0.000%). The borrowings denominated in foreign currencies were translated into U.S. dollars based on the spot rate at the relevant balance sheet date. The impact resulting from changes in foreign exchange rates on the February 2019 Credit Facility borrowings is included in "Net unrealized appreciation (depreciation) - foreign currency transactions" in the Company's Consolidated Statements of Operations. As of December 31, 2019, the Company had U.S. dollar borrowings of $195.0 million outstanding under the February 2019 Credit Facility with a weighted average interest rate of 4.054%, borrowings denominated in Swedish kronas of 12.8kr million ($1.4 million U.S. dollars) with an interest rate of 2.25%, borrowings denominated in British pounds sterling of £4.7 million ($6.3 million U.S. dollars) with an interest rate of 3.0%, and borrowings denominated in Euros of €38.0 million ($42.7 million U.S. dollars) with an interest rate of 2.25%. The borrowings denominated in foreign currencies were translated into U.S. dollars based on the spot rate at the relevant balance sheet date. The impact resulting from changes in foreign exchange rates on the February 2019 Credit Facility borrowings is included in "Net unrealized appreciation (depreciation) - foreign currency transactions" in the Company's Consolidated Statements of Operations. As of December 31, 2020 and December 31, 2019, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $719.7 million and $245.3 million, respectively. The fair values of the borrowings outstanding under the February 2019 Credit Facility are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. Debt Securitization On May 9, 2019, the Company completed a $449.3 million term debt securitization (the "Debt Securitization"). Term debt securitizations are also known as collateralized loan obligations and are a form of secured financing incurred by the Company, which is consolidated by the Company for financial reporting purposes and subject to its overall asset coverage requirement. The notes offered in the Debt Securitization (collectively, the “2019 Notes”) were issued by Barings BDC Static CLO Ltd. 2019-I (“BBDC Static CLO Ltd.”) and Barings BDC Static CLO 2019-I, LLC, wholly-owned and consolidated subsidiaries of the Company (collectively, the “Issuers”), and were secured by a diversified portfolio of senior secured loans and participation interests therein. The Debt Securitization was executed through a private placement of approximately $296.8 million of AAA(sf) Class A-1 Senior Secured Floating Rate 2019 Notes (the “Class A-1 2019 Notes”), which bore interest at the three-month LIBOR plus 1.02%; $51.5 million of AA(sf) Class A-2 Senior Secured Floating Rate 2019 Notes (the “Class A-2 2019 Notes”), which bore interest at the three-month LIBOR plus 1.65%; and $101.0 million of Subordinated 2019 Notes which did not bear interest and were not rated. The Company retained all of the Subordinated 2019 Notes issued in the Debt Securitization in exchange for the Company’s sale and contribution to BBDC Static CLO Ltd. of the initial closing date portfolio, which included senior secured loans and participation interests therein distributed to the Company by BSF. The 2019 Notes were scheduled to mature on April 15, 2027; however, the 2019 Notes could be redeemed by the Issuers, at the direction of the Company as holder of the Subordinated 2019 Notes, on any business day after May 9, 2020. In connection with the sale and contribution, the Company made customary representations, warranties and covenants to the Issuers. The Class A-1 2019 Notes and Class A-2 2019 Notes were the secured obligations of the Issuers, the Subordinated 2019 Notes were the unsecured obligations of BBDC Static CLO Ltd., and the indenture governing the 2019 Notes included customary covenants and events of default. The 2019 Notes were not registered under the Securities Act or any state securities or “blue sky” laws and could not be offered or sold in the United States absent registration with the SEC or an applicable exemption from registration. The Company served as collateral manager to BBDC Static CLO Ltd. under a collateral management agreement and agreed to irrevocably waive all collateral management fees payable pursuant to the collateral management agreement. The Class A-1 2019 Notes and the Class A-2 2019 Notes issued in connection with the Debt Securitization had floating rate interest provisions based on the three-month LIBOR that reset quarterly, except that LIBOR for the first interest accrual period was calculated by reference to an interpolation between the rate for deposits with a term equal F-62 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) to the next shorter period of time for which rates were available and the rate appearing for deposits with a term equal to the next longer period of time for which rates were available. During the year ended December 31, 2019, $30.0 million of the Class A-1 2019 Notes were repaid. During the year ended December 31, 2020, the remaining 2019 Notes were repaid in full, with the final repayment on October 15, 2020 . In connection with these repayments, the pro rata portion of the unamortized deferred financing costs related to the 2019 Notes was written off and recognized as a loss on extinguishment of debt in the Company's Consolidated Statements of Operations. As of December 31, 2019, the total fair value of the Class A-1 2019 Notes and the Class A-2 2019 Notes was $266.8 million and $51.5 million, respectively. The fair value determinations of the Company’s 2019 Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. August 2025 Notes On August 3, 2020, the Company entered into a Note Purchase Agreement (the "August 2020 NPA") with Massachusetts Mutual Life Insurance Company governing the issuance of (1) $50.0 million in aggregate principal amount of Series A senior unsecured notes due August 2025 (the "Series A Notes due 2025") with a fixed interest rate of 4.66% per year, and (2) up to $50.0 million in aggregate principal amount of additional senior unsecured notes due August 2025 with a fixed interest rate per year to be determined (the "Additional Notes" and, collectively with the Series A Notes due 2025, the "August 2025 Notes"), in each case, to qualified institutional investors in a private placement. An aggregate principal amount of $25.0 million of the Series A Notes due 2025 was issued on September 24, 2020 and an aggregate principal amount of $25.0 million of the Series A Notes due 2025 was issued on September 29, 2020, both of which will mature on August 4, 2025 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with their terms. Interest on the August 2025 Notes will be due semiannually in March and September, beginning in March 2021. In addition, the Company is obligated to offer to repay the August 2025 Notes at par (plus accrued and unpaid interest to, but not including, the date of prepayment) if certain change in control events occur. Subject to the terms of the August 2020 NPA, the Company may redeem the August 2025 Notes in whole or in part at any time or from time to time at the Company’s option at par plus accrued interest to the prepayment date and, if redeemed on or before November 3, 2024, a make-whole premium. The August 2025 Notes are guaranteed by certain of the Company's subsidiaries, and are the Company's general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. On November 4, 2020, the Company amended the August 2020 NPA to reduce the aggregate principal amount of unissued Additional Notes from $50.0 million to $25.0 million. The August 2020 NPA contains certain representations and warranties, and various covenants and reporting requirements customary for senior unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC within the meaning of the 1940 Act, minimum shareholders’ equity, maximum net debt to equity ratio and minimum asset coverage ratio. The August 2020 NPA also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under our other indebtedness or that of our subsidiary guarantors, certain judgements and orders, and certain events of bankruptcy. Upon the occurrence of an event of default, the holders of at least 66-2/3% in principal amount of the August 2025 Notes at the time outstanding may declare all August 2025 Notes then outstanding to be immediately due and payable. As of December 31, 2020, the Company was in compliance with all covenants under the August 2020 NPA. The August 2025 Notes were offered in reliance on Section 4(a)(2) of the Securities Act. The August 2025 Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable. F-63 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) As of December 31, 2020, the fair value of the outstanding August 2025 Notes was $50.0 million. The fair value determination of the August 2025 Notes was based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. November Notes On November 4, 2020, the Company entered into a Note Purchase Agreement (the “November 2020 NPA”) governing the issuance of (1) $62.5 million in aggregate principal amount of Series B senior unsecured notes due November 2025 (the “Series B Notes”) with a fixed interest rate of 4.25% per year and (2) $112.5 million in aggregate principal amount of Series C senior unsecured notes due November 2027 (the “Series C Notes” and, collectively with the Series B Notes, the “November Notes”) with a fixed interest rate of 4.75% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable November Notes do not satisfy certain investment grade conditions and/or (y) 1.50% per year, to the extent the ratio of the Company’s secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The November Notes were delivered and paid for on November 5, 2020. The Series B Notes will mature on November 4, 2025, and the Series C Notes will mature on November 4, 2027 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with their terms. Interest on the November Notes will be due semiannually in May and November, beginning in May 2021. In addition, the Company is obligated to offer to repay the November Notes at par (plus accrued and unpaid interest to, but not including, the date of prepayment) if certain change in control events occur. Subject to the terms of the November 2020 NPA, the Company may redeem the Series B Notes and the Series C Notes in whole or in part at any time or from time to time at the Company’s option at par plus accrued interest to the prepayment date and, if redeemed on or before May 4, 2025, with respect to the Series B Notes, or on or before May 4, 2027, with respect to the Series C Notes, a make-whole premium . The November Notes are guaranteed by certain of the Company’s subsidiaries, and are the Company's general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The November 2020 NPA contains certain representations and warranties, and various covenants and reporting requirements customary for senior unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC within the meaning of the 1940 Act, minimum shareholders’ equity, maximum net debt to equity ratio and minimum asset coverage ratio. The November 2020 NPA also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under our other indebtedness or that of our subsidiary guarantors, certain judgements and orders, and certain events of bankruptcy. Upon the occurrence of an event of default, the holders of at least 66-2/3% in principal amount of the November Notes at the time outstanding may declare all November Notes then outstanding to be immediately due and payable. As of December 31, 2020, the Company was in compliance with all covenants under the November 2020 NPA. The November Notes were offered in reliance on Section 4(a)(2) of the Securities Act. The November Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable. As of December 31, 2020, the fair value of the outstanding Series B Notes and the Series C Notes was $62.5 million and $112.5 million, respectively. The fair value determinations of the Series B Notes and Series C Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. F-64 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 5. Income Taxes The Company has elected for federal income tax purposes to be treated, and intends to qualify annually, as a RIC under the Code and intends to make the required distributions to its stockholders as specified therein. In order to maintain its tax treatment as a RIC, the Company must meet certain minimum distribution, source-of-income and asset diversification requirements. If such requirements are met, then the Company is generally required to pay taxes only on the portion of its taxable income and gains it does not distribute (actually or constructively) and certain built-in gains. The Company met its source of income, asset diversification and minimum distribution requirements for 2020, 2019 and 2018 and continually monitors these requirements with the goal of ensuring compliance with the Code. Depending on the level of investment company taxable income (“ICTI”) and net capital gains, if any, or taxable income, the Company may choose to carry forward undistributed taxable income and pay a 4% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner, an amount at least equal to the sum of (i) 98% of net ordinary income for each calendar year, (ii) 98.2% of the amount by which capital gains exceed capital losses (adjusted for certain ordinary losses) for the one-year period ending October 31 in that calendar year and (iii) certain undistributed amounts from previous years on which the Company paid no U.S. federal income tax. Any such carryover of taxable income must be distributed before the end of that next tax year through a dividend declared prior to filing of the tax return related to the year which generated such taxable income not to be subject to US federal income tax. Taxable income generally differs from increase in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, or total distributable earnings (loss), as appropriate. During the years ended December 31, 2020, 2019 and 2018, the Company reclassified for book purposes amounts arising from permanent book/tax differences primarily related to differences in the tax basis and book basis of investments sold, merger adjustments and non-deductible excise taxes paid during the year as follows: December 31, 2020 2019 2018 Additional paid-in capital $ 3,878,798 $ (7,773,706) $ 5,085,295 Total distributable earnings (loss) $ (3,878,798) $ 7,773,706 $ (5,085,295) Tax positions taken or expected to be taken in the course of preparing the Company's tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Company's tax positions taken, or to be taken, on federal income tax returns for all open tax years (fiscal years 2017-2019), and has concluded that the provision for uncertain tax positions in the Company's financial statements is appropriate. For income tax purposes, distributions paid to stockholders are reported as ordinary income, long-term capital gains, return of capital or a combination thereof. The tax character of distributions paid for the years ended December 31, 2020, 2019 and 2018 was as follows: Year Ended December 31, 2020 2019 2018 Ordinary income $ 31,325,222 $ 26,927,706 $ 19,960,181 Tax return of capital — — 850,745 Distributions on a tax basis $ 31,325,222 $ 26,927,706 $ 20,810,926 F-65 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) At December 31, 2020, 2019 and 2018, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Consolidated Balance Sheets by temporary and other book/tax differences, primarily relating to depreciation expense, stock-based compensation, accruals of defaulted debt investment interest and the tax treatment of certain partnership investments, as follows: December 31, 2020 2019 2018 Undistributed net investment income $ 1,712,779 $ 2,537,913 $ — Accumulated capital losses (312,322,988) (267,368,444) (272,527,795) Other permanent differences relating to the Company's formation 1,975,543 1,975,543 1,975,543 Other temporary differences (4) (4) (12,896) Unrealized depreciation (1,333,169) (20,085,620) (51,413,098) Components of distributable earnings at year end $ (309,967,839) $ (282,940,612) $ (321,978,246) Tax information for the fiscal year ended December 31, 2020 is estimated and is not considered final until the Company files its tax return. Under current law, the Company may carry forward net capital losses indefinitely to use to offset capital gains realized in future years. As of December 31, 2019, the Company had a capital loss carryforward of $267.4 million. In addition, MVC had a capital loss carryforward of $3.8 million as of the merger date. As of December 31, 2020, the Company estimates that it will have a capital loss carryforward of approximately $312.3 million ($6.4 million of short-term capital losses and $305.9 million of long-term capital losses) none of which will expire. Because of the loss limitation rules of the Code, some of the tax basis losses may be limited in their use. The unused balance will be carried forward and utilized as gains are realized, subject to such limitations. For federal income tax purposes, the cost of investments owned as of December 31, 2020 and December 31, 2019 was approximately $1,486.0 million and $1,192.7 million, respectively. As of December 31, 2020, net unrealized depreciation on the Company's investments (tax basis) was approximately $1.3 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $23.4 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $24.7 million. As of December 31, 2019, net unrealized depreciation on the Company's investments (tax basis) was approximately $20.1 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $2.5 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $22.6 million. I n addition, the Company has wholly-owned taxable subsidiaries (the “Taxable Subsidiaries”), which hold certain portfolio investments that are listed on the Consolidated Schedules of Investments. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that the Company’s consolidated financial statements reflect the Company’s investments in the portfolio companies owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit the Company to hold certain portfolio companies that are organized as LLCs (or other forms of pass-through entities) and still satisfy the RIC tax requirement that at least 90% of the RIC’s gross revenue for income tax purposes must consist of qualifying investment income. Absent the Taxable Subsidiaries, a proportionate amount of any gross income of an LLC (or other pass-through entity) portfolio investment would flow through directly to the RIC. To the extent that such income did not consist of qualifying investment income, it could jeopardize the Company’s ability to qualify as a RIC and therefore cause the Company to incur significant amounts of federal income taxes. When LLCs (or other pass-through entities) are owned by the Taxable Subsidiaries, their income is taxed to the Taxable Subsidiaries and does not flow through to the RIC, thereby helping the Company preserve its RIC tax treatment and resultant tax advantages. The Taxable Subsidiaries are not consolidated for income tax purposes and may generate income tax expense as a result of their ownership of the portfolio companies. This income tax expense is reflected in the Company’s Consolidated Statements of Operations. Additionally, any unrealized appreciation related to portfolio investments held by the Taxable Subsidiaries (net of unrealized depreciation related to portfolio investments held by the Taxable Subsidiaries) is reflected net of applicable federal F-66 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) and state income taxes in the Company's Consolidated Statements of Operations, with the related deferred tax liabilities included in "Accounts payable and accrued liabilities" in the Company's Consolidated Balance Sheets. As of December 31, 2020, the Company had a deferred tax asset of $8.6 million pertaining to operating losses, related to its investments. Given the losses generated by the entity, the deferred tax asset has been offset by a valuation allowance of $8.6 million. As of December 31, 2019, the Company had a deferred tax asset of $2.2 million pertaining to operating losses, related to its investments. Given the losses generated by the entity, the deferred tax asset has been offset by a valuation allowance of $2.2 million. As of December 31, 2018, the Company had a deferred tax asset of $4.9 million pertaining to operating losses, related to its investments. Given the losses generated by the entity, the deferred tax asset has been offset by a valuation allowance of $4.9 million 6. Derivative Instruments Credit Support Agreement In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Merger, the Company and the Adviser entered into the Credit Support Agreement, pursuant to which the Adviser has agreed to provide credit support to the Company in the amount of up to $23.0 million relating to the net cumulative realized and unrealized losses on the acquired MVC investment portfolio over a 10-year period. For the year ended December 31, 2020, there was no unrealized appreciation (depreciation) associated with the Credit Support Agreement. See “Note 2 - Agreements and Related Party Transactions” for additional information regarding the Credit Support Agreement. Description Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation) Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 13,600,000 $ — Total Credit Support Agreement, December 31, 2020 $ — As of December 31, 2020, the fair value of the Credit Support Agreement was $13.6 million and is included in "Credit support agreement" in the accompanying Consolidated Balance Sheets. The fair value of the Credit Support Agreement was determined based on an income approach, with the primary inputs being the enterprise value, the continuously annual risk-free interest rate, a measure of expected asset volatility, and the expected time until an exit event for each portfolio company in the Referenced Portfolio, which are all Level 3 inputs. Foreign Currency Forward Contracts The Company enters into forward currency contracts from time to time to primarily help mitigate the impact that an adverse change in foreign exchange rates would have on net interest income from the Company's investments and related borrowings denominated in foreign currencies. Net unrealized appreciation or depreciation on foreign currency contracts are included in "Net unrealized appreciation (depreciation) - foreign currency transactions" and net realized gains or losses on forward currency contracts are included in "Net realized gains (losses) - foreign currency transactions" in the Consolidated Statements of Operations. Forward currency contracts are considered undesignated derivative instruments. F-67 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) The following table presents the Company's foreign currency forward contracts as of December 31, 2020: Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts Foreign currency forward contract (AUD) $8,471,304 A$11,378,670 01/05/21 $ (309,049) Derivative liability Foreign currency forward contract (AUD) A$11,378,670 $8,610,504 01/05/21 169,849 Prepaid expenses and other assets Foreign currency forward contract (AUD) $148,019 A$193,882 04/06/21 (1,698) Derivative liability Foreign currency forward contract (EUR) $13,472,749 €11,406,604 01/05/21 (483,801) Derivative liability Foreign currency forward contract (EUR) €11,406,604 $13,518,023 01/05/21 438,526 Prepaid expenses and other assets Foreign currency forward contract (EUR) $561,754 €456,604 04/06/21 1,944 Derivative liability Foreign currency forward contract (GBP) $13,554,607 £10,215,299 01/05/21 (409,190) Derivative liability Foreign currency forward contract (GBP) £10,215,299 $13,717,678 01/05/21 246,118 Prepaid expenses and other assets Foreign currency forward contract (GBP) $13,109,849 £9,672,758 04/06/21 (119,769) Derivative liability Foreign currency forward contract (SEK) $141,603 1,259,406kr 01/05/21 (11,748) Derivative liability Foreign currency forward contract (SEK) 1,259,406kr $152,396 01/05/21 955 Prepaid expenses and other assets Foreign currency forward contract (SEK) $164,325 1,356,628kr 04/06/21 (1,028) Derivative liability Total $ (478,891) The following table presents the Company's foreign currency forward contracts as of December 31, 2019: Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts Foreign currency forward contract (EUR) $158,244 €142,781 01/02/20 $ (2,028) Derivative liability Foreign currency forward contract (EUR) €142,781 $158,547 01/02/20 1,724 Derivative liability Foreign currency forward contract (EUR) $506,967 €453,920 04/02/20 (5,440) Derivative liability Foreign currency forward contract (GBP) $707,963 £549,253 01/02/20 (19,660) Derivative liability Foreign currency forward contract (GBP) £549,253 $718,861 01/02/20 8,763 Derivative liability Foreign currency forward contract (GBP) $227,890 £175,529 04/02/20 (5,215) Derivative liability Foreign currency forward contract (SEK) $95,654 920,569kr 01/02/20 (2,687) Derivative liability Foreign currency forward contract (SEK) 920,569kr $96,846 01/02/20 1,495 Derivative liability Foreign currency forward contract (SEK) $97,360 912,212kr 04/02/20 (511) Derivative liability Total $ (23,559) As of December 31, 2020 and 2019, the total fair value of the Company's foreign currency forward contracts was $(478,891) and $(23,559), respectively. The fair values of the Company's foreign currency forward contracts are based on unadjusted prices from independent pricing services and independent indicative broker quotes, which are Level 2 inputs. 7. Equity-Based and Other Compensation Plans Prior to the Asset Sale Transaction, the Company utilized the Triangle Capital Corporation Omnibus Incentive Plan (the "Omnibus Plan") as part of its compensation programs. The Omnibus Plan provided for grants of restricted stock, incentive stock options, non-statutory stock options and cash-based and/or stock-based performance awards, collectively, "Awards," to the Company’s employees and independent directors. Equity-based awards granted under the Omnibus Plan to independent directors generally vested over a one-year period and equity-based awards granted under the Omnibus Plan to executive officers and employees generally vested ratably over a four-year period. The Company accounted for its equity-based compensation using the fair value method, as prescribed by ASC Topic 718, Stock Compensation . Accordingly, for restricted stock awards, the Company measured the grant date fair value based upon the market price of the Company’s common stock on the date of the grant and amortized this fair value to compensation expense ratably over the requisite service period or vesting term. On July 31, 2018, in connection with the closing of the Asset Sale Transaction, all 904,060 outstanding shares of restricted stock outstanding under the Omnibus Plan vested and on August 2, 2018, the Board terminated the F-68 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Omnibus Plan. As a result, in the year ended December 31, 2018, the Company recognized equity based compensation expense of approximately $14.2 million. The following table presents information with respect to equity-based compensation for the year ended December 31, 2018: Year Ended December 31, 2018 Number of Shares Weighted Average Grant Date Fair Value per Share Unvested shares, beginning of period 748,674 $ 19.79 Shares granted during the period 435,106 $ 10.73 Shares vested during the period (1,183,780) $ 16.46 Unvested shares, end of period — N/A Prior to the Asset Sale Transaction, the Board had adopted a nonqualified deferred compensation plan covering the Company’s executive officers and key employees. On July 31, 2018, in connection with the closing of the Asset Sale Transaction, the Company's Amended and Restated Executive Deferred Compensation Plan was terminated and all previously unvested deferred compensation benefits became fully vested. As a result, in the year ended December 31, 2018, the Company accelerated the recognition of the remaining $0.8 million of deferred compensation expense. Prior to the Asset Sale Transaction, the Company maintained a 401(k) plan in which all full-time employees who were at least 21 years of age were eligible to participate and receive employer contributions. Eligible employees could contribute a portion of their compensation on a pretax basis into the 401(k) plan up to the maximum amount allowed under the Code, and direct the investment of their contributions. On July 31, 2018, the Board took action to terminate the Company's 401(k) plan in connection with the closing of the Asset Sale Transaction. 8. Transactions with Controlled Companies During the year ended December 31, 2020, the Company received management and other fees from the MVC PE Fund of $5,292. During the year ended December 31, 2018, the Company received management and other fees from SRC Worldwide, Inc., a wholly-owned subsidiary of CRS-SPV, Inc., of $100,000. These fees were recognized as fee income in the Company's Consolidated Statements of Operations. F-69 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 9. Commitments and Contingencies In the normal course of business, the Company is party to financial instruments with off-balance sheet risk, consisting primarily of unused commitments to extend financing to the Company’s portfolio companies. Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. As of December 31, 2020 and 2019, the Company believed that it had adequate financial resources to satisfy its unfunded commitments. The balances of unused commitments to extend financing as of December 31, 2020 and 2019 were as follows: Portfolio Company(1) Investment Type December 31, 2020 December 31, 2019 ADE Holding(3) Committed Capex Line $ 91,814 $ — Anju Software, Inc.(2) Delayed Draw Term Loan 1,981,371 1,981,371 Arch Global Precision, LLC Delayed Draw Term Loan 4,193,475 1,012,661 Armstrong Transport Group (Pele Buyer, LLC) Delayed Draw Term Loan — 712,567 Beacon Pointe Advisors, LLC Delayed Draw Term Loan 363,636 — British Engineering Services Holdco Limited(4) Acquisition Facility 7,006,008 — British Engineering Services Holdco Limited(4) Bridge Revolver 618,177 — Centralis Finco S.a.r.l.(3) Acquisition Facility 495,950 — Classic Collision (Summit Buyer, LLC) Delayed Draw Term Loan 1,672,446 — CM Acquisitions Holdings Inc.(2) Delayed Draw Term Loan 1,551,602 1,859,111 Contabo Finco S.À R.L(3) Delayed Draw Term Loan 228,211 1,013,849 CSL Dualcom(4) Delayed Draw Term Loan 1,007,182 — Dart Buyer, Inc.(2) Delayed Draw Term Loan 2,430,569 4,294,503 DreamStart Bidco SAS(3) Acquisition Facility 995,640 — F24 (Stairway BidCo GmbH)(3) Delayed Draw Term Loan 323,840 — FitzMark Buyer, Inc.(2) Delayed Draw Term Loan 1,470,588 — Foundation Risk Partners, Corp. Delayed Draw Term Loan 4,984,771 — Heartland, LLC(2) Delayed Draw Term Loan 5,347,666 8,729,695 Heilbron (f/k/a Sucsez (Bolt Bidco B.V.))(3) Accordion Facility 10,225,081 2,605,531 IGL Holdings III Corp.(2) Delayed Draw Term Loan 5,914,219 — INOS 19-090 GmbH(3) Acquisition Facility 2,727,980 — Jocassee Partners LLC Joint Venture 30,000,000 40,000,000 Kano Laboratories LLC(2) Delayed Draw Term Loan 4,543,950 — Kene Acquisition, Inc. Delayed Draw Term Loan 322,928 1,076,427 LAC Intermediate, LLC(2) Delayed Draw Term Loan — 4,367,284 Modern Star Holdings Bidco Pty Limited(5) Capex Term Loan 2,315,967 — Murphy Midco Limited(4) Delayed Draw Term Loan 3,301,472 — Options Technology Ltd. Delayed Draw Term Loan 2,604,080 2,918,447 Pacific Health Supplies Bidco Pty Limited(5) CapEx Term Loan 1,535,025 — Premier Technical Services Group(4) Acquisition Facility 1,197,505 1,297,915 Process Equipment, Inc.(2) Delayed Draw Term Loan — 654,493 Professional Datasolutions, Inc. (PDI) Delayed Draw Term Loan — 1,666,994 PSC UK Pty Ltd.(4) GBP Acquisition Facility 535,157 1,010,706 Questel Unite(3) Cap Acquisition Facility 10,300,913 — Radwell International, LLC(2) Delayed Draw Term Loan 3,235,947 — Rep Seko Merger Sub LLC Delayed Draw Term Loan 1,454,546 — F-70 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Portfolio Company(1) Investment Type December 31, 2020 December 31, 2019 Safety Products Holdings, LLC(2) Delayed Draw Term Loan 6,467,345 — Smile Brands Group, Inc.(2) Delayed Draw Term Loan 2,148,691 927,046 Springbrook Software (SBRK Intermediate, Inc.) Delayed Draw Term Loan 3,489,026 3,896,663 SSCP Pegasus Midco Limited(4) Delayed Draw Term Loan 13,389,546 — The Hilb Group, LLC Delayed Draw Term Loan 5,545,939 2,904,066 Transit Technologies LLC(2) Delayed Draw Term Loan 6,035,305 — Transportation Insight, LLC(2) Delayed Draw Term Loan — 2,464,230 Truck-Lite Co., LLC(2) Delayed Draw Term Loan — 3,205,128 USLS Acquisition, Inc.(2) Delayed Draw Term Loan 450,466 — Utac Ceram(3) Delayed Draw Term Loan 743,327 — Validity, Inc.(2) Delayed Draw Term Loan — 898,298 W2O Holdings, Inc. Delayed Draw Term Loan 5,989,298 $ — Total unused commitments to extend financing $ 159,236,659 $ 89,496,985 (1) The Company's estimate of the fair value of the current investments in these portfolio companies includes an analysis of the fair value of any unfunded commitments. (2) Represents a commitment to extend financing to a portfolio company where one or more of the Company's current investments in the portfolio company are carried at less than cost. (3) Actual commitment amount is denominated in Euros. Commitment was translated into U.S. dollars based on the spot rate at the relevant balance sheet date. (4) Actual commitment amount is denominated in British pounds sterling.Commitment was translated into U.S. dollars based on the spot rate at the relevant balance sheet date. (5) Actual commitment amount is denominated in Australian dollars. Commitment was translated into U.S. dollars based on the spot rate at the relevant balance sheet date. In the normal course of business, the Company guarantees certain obligations in connection with its portfolio companies (in particular, certain controlled portfolio companies). Under these guarantee arrangements, payments may be required to be made to third parties if such guarantees are called upon or if the portfolio companies were to default on their related obligations, as applicable. As of December 31, 2020, the Company had guaranteed € 9.9 million ($12.1 million U.S. dollars) relating to credit facilities among Erste Bank and MVC Automotive Group Gmbh ("MVC Auto"). The Company would be required to make payments to Erste Bank if MVC Auto were to default on their related payment obligations. None of the credit facility guarantees are recorded as a liability on the Company's Consolidated Balance Sheets, as such the credit facility liabilities are considered in the valuation of the investments in MVC Auto. The guarantees denominated in foreign currencies were translated into U.S. dollars based on the spot rate at the relevant balance sheet date. In addition, the Company agreed to cash collateralize a $3.5 million letter of credit for Security Holdings B.V. The $3.5 million cash collateralization is reflected as "Restricted cash" on the accompanying Consolidated Balance Sheets. The Company and certain of its former executive officers have been named as defendants in two putative securities class action lawsuits, each filed in the United States District Court for the Southern District of New York (and then transferred to the United States District Court for the Eastern District of North Carolina) on behalf of all persons who purchased or otherwise acquired our common stock between May 7, 2014 and November 1, 2017. The first lawsuit was filed on November 21, 2017, and was captioned Elias Dagher, et al., v. Triangle Capital Corporation, et al. , Case No. 5:18-cv-00015-FL (the “ Dagher Action”). The second lawsuit was filed on November 28, 2017, and was captioned Gary W. Holden, et al., v. Triangle Capital Corporation, et al. , Case No. 5:18-cv-00010-FL (the “ Holden Action”). The Dagher Action and the Holden Action were consolidated and are currently captioned In re Triangle Capital Corp. Securities Litigation , Master File No. 5:18-cv-00010-FL. On April 10, 2018, the plaintiff filed its First Consolidated Amended Complaint. The complaint alleged certain violations of the securities laws, including, among other things, that the defendants made certain materially false and misleading statements and omissions regarding the Company’s business, operations and prospects between May 7, F-71 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 2014 and November 1, 2017. The plaintiff seeks compensatory damages and attorneys’ fees and costs, among other relief, but did not specify the amount of damages being sought. On May 25, 2018, the defendants filed a motion to dismiss the complaint. On March 7, 2019, the court entered an order granting the defendants’ motion to dismiss. On March 28, 2019, the plaintiff filed a motion seeking leave to file a Second Consolidated Amended Complaint. On September 20, 2019, the court entered an order denying the plaintiff’s motion for leave to file a Second Consolidated Amended Complaint and dismissing the action with prejudice. On October 17, 2019, the plaintiff filed a notice of appeal seeking review of the court’s September 20, 2019 order. The plaintiff filed its opening brief with the United States Court of Appeals for the Fourth Circuit on January 6, 2020. The defendants filed their response brief on February 28, 2020, and the plaintiff filed its reply brief on March 27, 2020. The United States Court of Appeals for the Fourth Circuit heard oral argument on the appeal on December 9, 2020. On February 22, 2021, the United States Court of Appeals for the Fourth Circuit affirmed the court’s September 20, 2019 order dismissing the action with prejudice. In addition, the Company may be party to certain lawsuits in the normal course of business or in connection with strategic transactions. Furthermore, third parties may try to seek to impose liability on the Company in connection with the activities of its portfolio companies. While the outcome of any open legal proceedings, including those described above, cannot at this time be predicted with certainty, the Company does not expect that any reasonably possible losses arising from these matters will materially affect its financial condition or results of operations. Furthermore, in management's opinion, it is not possible to estimate a range of reasonably possible losses with respect to litigation contingencies. COVID-19 Developments During the year ended December 31, 2020, the spread of the Coronavirus and the COVID-19 pandemic had a significant impact on the U.S economy. To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies. F-72 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 10. Financial Highlights Year Ended December 31, 2020 2019 2018 2017 2016 Per share data: Net asset value at beginning of period $ 11.66 $ 10.98 $ 13.43 $ 15.13 $ 15.23 Net investment income (loss)(1) 0.64 0.61 — 1.55 1.62 Net realized gain (loss) on investments / foreign currency(1) (0.79) (0.08) (3.17) (1.11) 0.05 Net unrealized appreciation (depreciation) on investments / foreign currency(1) 0.38 0.64 1.08 (1.04) (0.72) Total increase (decrease) from investment operations(1) 0.23 1.17 (2.09) (0.60) 0.95 Dividends paid to stockholders from net investment income (0.65) (0.54) (0.41) (1.65) (1.89) Tax return of capital to stockholders — — (0.02) — — Total dividends and distributions paid (0.65) (0.54) (0.43) (1.65) (1.89) Common stock offerings (0.63) — — 0.61 0.72 Deemed contribution - CSA 0.28 — — — — Deemed contribution - Barings LLC 0.07 — — — — Purchase of shares in tender offer — — 0.13 — — Purchases of shares in share repurchase plan 0.05 0.07 — — — Stock-based compensation(1) — — 0.17 (0.01) 0.09 Shares issued pursuant to Dividend Reinvestment Plan — — — 0.01 0.04 Loss on extinguishment of debt(1) (0.06) (0.01) (0.21) — — Benefit from (provision for) taxes(1) — (0.01) 0.02 (0.02) (0.01) Other(2) 0.04 — (0.04) (0.04) — Net asset value at end of period $ 10.99 $ 11.66 $ 10.98 $ 13.43 $ 15.13 Market value at end of period(3) $ 9.20 $ 10.28 $ 9.01 $ 9.49 $ 18.34 Shares outstanding at end of period 65,316,085 48,950,803 51,284,064 47,740,832 40,401,292 Net assets at end of period $ 717,804,524 $ 570,874,709 $ 562,967,287 $ 641,275,374 $ 611,156,258 Average net assets $ 517,740,268 $ 579,198,975 $ 628,154,942 $ 667,188,287 $ 556,549,060 Ratio of total expenses, prior to waiver of base management fee, including loss on extinguishment of debt and benefit from (provision for) taxes, to average net assets (4) 8.33 % 7.90 % 14.54 % 7.74 % 9.93 % Ratio of total expenses, net of base management fee waived, including loss on extinguishment of debt and benefit from (provision for) taxes, to average net assets(4) 8.33 % 7.90 % 14.31 % 7.74 % 9.93 % Ratio of net investment income to average net assets 5.99 % 5.27 % (0.01) % 10.83 % 10.58 % Portfolio turnover ratio(5) 67.80 % 113.99 % 228.49 % 37.02 % 24.61 % Total return(6) (2.17) % 20.27 % 18.18 % (42.15) % 5.86 % (1) Weighted average per share data—basic and diluted. (2) Represents the impact of the different share amounts used in calculating per share data as a result of calculating certain per share data based upon the weighted average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date. (3) Represents the closing price of the Company’s common stock on the last day of the period. (4) Does not include expenses of underlying investment companies, including joint ventures and short-term investments. (5) Portfolio turnover ratio as of December 31, 2020 excludes the impact of short-term investments and the MVC Acquisition. (6) Total return is based on purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period reported on the table and assumes reinvestment of dividends at prices obtained by the Company's dividend reinvestment plan during the period. F-73 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) 11. MVC Capital, Inc. Acquisition On December 23, 2020, the Company completed its acquisition of MVC pursuant to the terms and conditions of that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of August 10, 2020, with MVC, Mustang Acquisition Sub, Inc., a Delaware corporation and our wholly owned subsidiary (“Acquisition Sub”), and Barings. To effect the acquisition, Acquisition Sub merged with and into MVC, with MVC surviving the merger as our wholly owned subsidiary (the “First Merger”). Immediately thereafter, MVC merged with and into the Company, with the Company as the surviving company (the “Second Merger” and, together with the First Merger, the “Merger”). The Merger has been treated as a “reorganization” within the meaning of Section 368(a)(1)(A) of the Code. Pursuant to the Merger Agreement, MVC stockholders received the right to the following merger consideration in exchange for each share of MVC common stock issued and outstanding immediately prior to the effective time of the First Merger (other than shares of MVC common stock issued and outstanding immediately prior to the effective time of the First Merger that were held by a subsidiary of MVC or held, directly or indirectly, by the Company or the Acquisition Sub), in accordance with the Merger Agreement: (i) an amount in cash from Barings, without interest, equal to $0.39492, and (ii) 0.9790836 shares of the Company’s common stock, which ratio gave effect to the Euro-dollar exchange rate adjustment mechanism in the Merger Agreement, plus cash in lieu of fractional shares. The Company issued approximately 17,354,332 shares of its common stock to MVC’s then-existing stockholders in connection with the Merger, thereby resulting in the Company’s then-existing stockholders owning approximately 73.4% of the combined company and MVC's then-existing stockholders owning approximately 26.6% of the combined company. In connection with the closing of the Merger on December 23, 2020, the Board affirmed the Company’s commitment to open-market purchases of shares of its common stock in an aggregate amount of up to $15.0 million at then-current market prices at any time shares trade below 90% of the Company’s then most recently disclosed net asset value per share. Any repurchases pursuant to the authorized program will occur during the 12-month period commencing upon the filing of the Company’s quarterly report on Form 10-Q for the quarter ending March 31, 2021 and are expected to be made in accordance with a repurchase plan that qualifies for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act, as well as subject to compliance with the covenants in the Company’s borrowing arrangements, including under our the February 2019 Credit Facility, and certain other regulatory requirements. In connection with the MVC Acquisition, on December 23, 2020, following the closing of the Merger, the Company entered into the Amended and Restated Advisory Agreement with Barings, effective January 1, 2021. Promptly following the closing of the Merger, the Company also entered into the Credit Support Agreement with Barings. See “Note 2 - Agreements and Related Party Transactions” for more information regarding the Amended and Restated Advisory Agreement and the Credit Support Agreement. In connection with the closing of the Merger, MVC notified U.S. Bank National Association ("U.S. Bank"), the trustee for MVC Capital's 6.25% Senior Notes due 2022 (the "MVC Notes"), of the election to redeem the remaining $95.0 million in aggregate principal amount of the MVC Notes outstanding at a price equal to 100% of the principal amount of the MVC Notes, plus accrued and unpaid interest on the Notes to, but excluding, the date of redemption, and the Company caused the discharge of the MVC Notes by entering into a Satisfaction and Discharge of Indenture, dated December 23, 2020, with respect to the indenture governing the MVC Notes. The trustee provided notice of such redemption to the holders of the MVC Notes in accordance with the terms of the indenture governing the MVC Notes. The redemption was completed on January 22, 2021 and was funded with trust funds deposited with U.S. Bank in trust for such purpose. The MVC Acquisition was accounted for in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations-Related Issues . Under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. Per ASC 805-50-30-1, the acquired assets (as a group) are recognized based on their cost to the acquiring entity, which generally includes transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as F-74 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) consideration differs from the assets carrying amounts on the acquiring entity’s records. ASC 805-50-30-2 goes on to say asset acquisitions in which the consideration given is cash are measured by the amount of cash paid. However, if the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or equity interests issued), measurement is based on the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measured. The fair value of the merger consideration paid by the Company was allocated to the assets acquired and liabilities assumed based on their relative fair values as of the date of acquisition and did not give rise to goodwill. Since the fair value of the net assets acquired exceeded the fair value of the merger consideration paid by the Company, the Company recognized a deemed contribution from the Adviser. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as a result of the MVC Acquisition: Common stock issued by the Company $ 160,354,027 Cash consideration paid by the Company(1) 7,633,267 Deemed contribution from Barings LLC(2) 3,254,849 Total purchase price $ 171,242,143 Assets acquired: Investments(3) $ 185,041,442 Cash 71,267,327 Other assets(4) 10,961,944 Total assets acquired $ 267,270,713 Liabilities assumed(5) (96,028,570) Net assets acquired $ 171,242,143 (1) During the year ended December 31, 2020, the Company incurred $7.6 million in professional fees and other costs related to the MVC Acquisition. For the year ended December 31, 2020, these costs included $2.5 million one-time investment banking fees. (2) Non-cash operating activity included in "Acquisition of MVC Capital, net of cash acquired" on the Company's Consolidated Statements of Cash Flows (3) Investments acquired were recorded at fair value, which is also the Company's initial cost basis (4) Other assets acquired in the MVC Acquisition consisted of the following: Interest receivable $ 9,530,086 Fees receivable 927,889 Escrow receivable 500,000 Other assets 3,969 Total $ 10,961,944 (5) Liabilities assumed in the MVC Acquisition consisted of the following: Notes payable(a) $ 93,815,587 Accrued interest payable 1,138,023 Other liabilities 1,074,960 Total $ 96,028,570 (a) On December 23, 2020, MVC and the Company deposited with the trustee for the MVC Notes funds from cash on hand sufficient to satisfy all obligations remaining to the redemption date for the MVC Notes under the indenture, and the trustee for the MVC Notes entered into a Satisfaction and Discharge of Indenture with the Company with F-75 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) respect to the indenture governing the MVC Notes. The redemption was completed on January 22, 2021 with such trust funds. 12. Selected Quarterly Financial Data (Unaudited) The following tables set forth certain quarterly financial information for each of the eight quarters in the two years ended December 31, 2020. Results for any quarter are not necessarily indicative of results for the full year or for any future quarter. Quarter Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Total investment income $ 18,679,598 $ 16,139,764 $ 16,329,142 $ 19,882,564 Net investment income 7,294,069 6,529,129 7,952,605 9,212,001 Net increase (decrease) in net assets resulting from operations (112,521,747) 54,748,708 43,177,627 22,772,205 Net investment income per share $ 0.15 $ 0.14 $ 0.17 $ 0.19 Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total investment income $ 18,339,758 $ 19,601,688 $ 19,304,107 $ 18,402,792 Net investment income 7,957,287 7,412,882 7,987,175 7,194,252 Net increase in net assets resulting from operations 33,162,313 9,247,050 5,195,491 10,586,780 Net investment income per share $ 0.16 $ 0.15 $ 0.16 $ 0.15 13. Subsequent Events Subsequent to December 31, 2020, the Company made approximately $224.1 million of new commitments, of which $202.2 million closed and funded. The $202.2 million of investments consist of $162.2 million of first lien senior secured debt investments, a $14.5 million second lien senior secured debt investment, and $25.6 million of equity and joint venture investments. The weighted average yield of the debt investments was 6.7%. In addition, the Company funded $27.1 million of previously committed delayed draw term loans. On February 7, 2021, the Board declared a quarterly distribution of $0.19 per share payable on March 17, 2021 to holders of record as of March 10, 2021. On February 25, 2021, the Company entered into a Note Purchase Agreement (the “February 2021 NPA”) governing the issuance of (1) $80.0 million in aggregate principal amount of Series D senior unsecured notes due February 26, 2026 (the “Series D Notes”) with a fixed interest rate of 3.41% per year and (2) $70.0 million in aggregate principal amount of Series E senior unsecured notes due February 26, 2028 (the “Series E Notes” and, collectively with the Series D Notes, the “February Notes”) with a fixed interest rate of 4.06% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable February Notes do not satisfy certain investment grade rating conditions and/or (y) 1.50% per year, to the extent the ratio of the Company’s secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The February Notes were delivered and paid for on February 26, 2021. The Company intends to use the net proceeds from the offering of the February Notes for general corporate purposes, including to make investments and make distributions permitted by the February 2021 NPA. The Series D Notes will mature on February 26, 2026, and the Series E Notes will mature on February 26, 2028 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with the terms of the February 2021 NPA. Interest on the February Notes will be due semiannually in February and August of each year, beginning in August 2021. In addition, the Company is obligated to offer to repay the February Notes at par (plus accrued and unpaid interest to, but not including, the date of prepayment) if certain change in control events occur. Subject to the terms of the February 2021 NPA, the Company may redeem the Series D Notes and the Series E F-76 Barings BDC, Inc. Notes to Consolidated Financial Statements — (Continued) Notes in whole or in part at any time or from time to time at the Company’s option at par plus accrued interest to the prepayment date and, if redeemed on or before August 26, 2025, with respect to the Series D Notes, or on or before August 26, 2027, with respect to the Series E Notes, a make-whole premium. The February 2021 NPA contains certain representations and warranties, and various covenants and reporting requirements customary for agreements of this type, including, without limitation, information reporting, maintenance of the Company’s status as a BDC within the meaning of the 1940 Act, and certain restrictions with respect to transactions with affiliates, fundamental changes, changes of line of business, permitted liens, investments and restricted payments. In addition, the February 2021 NPA contains the following financial covenants: (a) maintaining a minimum obligors’ net worth, measured as of each fiscal quarter end; (b) not permitting the Company’s asset coverage ratio, as of the date of the incurrence of any debt for borrowed money or the making of any cash dividend to shareholders, to be less than the statutory minimum then applicable to the Company under the 1940 Act; and (c) not permitting the Company’s net debt to equity ratio to exceed 2.0x, measured as of each fiscal quarter end. The February 2021 NPA also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness or that of the Company’s subsidiary guarantors, certain judgements and orders, and certain events of bankruptcy. Upon the occurrence of certain events of default, the holders of at least 66-2/3% in principal amount of the February Notes at the time outstanding may declare all February Notes then outstanding to be immediately due and payable. The Company’s obligations under the February 2021 NPA are guaranteed by certain of the Company’s subsidiaries, and are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The February Notes were offered in reliance on Section 4(a)(2) of the Securities Act. The February Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable. See Note 9 to the Company's Consolidated Financial Statements for information regarding the potential impact of the COVID-19 pandemic. To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies. F-77