What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-05 compared with 2021-11-09 · 1995 added, 977 removed, 2005 unchanged (60% of the section changed)

This section is long enough that the comparison stopped early. What follows is partial, and the remainder is not necessarily unchanged.

2 unchanged sentences

Consolidated Balance Sheets

September 30,

(in thousands, except share and per share data)

2022 December 31, 2021

Investments at fair value:

Non-Control / Non-Affiliate investments (cost of $1,346,611,782 and $1,318,614,617 as of September 30, 2021 and December 31, 2020, respectively)

$ 1,355,088,125 $ 1,325,783,281

Affiliate investments (cost of $211,274,188 and $76,055,873 as of September 30, 2021 and December 31, 2020, respectively)

Non-Control / Non-Affiliate investments (cost of $1,950,064 and $1,494,031 as of March 31, 2022 and December 31, 2021, respectively)

$ 1,917,558 $ 1,490,113

Control investments (cost of $25,826,428 as of both September 30, 2021 and December 31, 2020)

Affiliate investments (cost of $336,327 and $267,967 as of March 31, 2022 and December 31, 2021, respectively)

364,753 288,069

Short-term investments (cost of $50,000,000 and $65,558,227 as of September 30, 2021 and December 31, 2020, respectively)

Control investments (cost of $105,210 and $25,826 as of March 31, 2022 and December 31, 2021, respectively)

121,114 22,412

Total investments at fair value 2,403,425 1,800,594

Cash (restricted cash of $0 and $3,488,336 at September 30, 2021 and December 31, 2020, respectively)

30,248,388 62,651,340

Foreign currencies (cost of $11,311,582 and $29,555,465 as of September 30, 2021 and December 31, 2020, respectively)

Cash 106,400 49,987

Foreign currencies (cost of $47,990 and $34,069 as of March 31, 2022 and December 31, 2021, respectively)

48,031 34,266

1 unchanged sentence

Prepaid expenses and other assets 2,662 4,297

Credit support agreement (cost of $13,600,000 as of both September 30, 2021 and December 31, 2020)

Credit support agreements (cost of $58,000 and $13,600 as of March 31, 2022 and December 31, 2021, respectively)

59,400 15,400

13 unchanged sentences

Commitments and contingencies (Note 7)

Common stock, $0.001 par value per share (150,000,000 shares authorized and 65,316,085 shares issued and outstanding as of both September 30, 2021 and December 31, 2020)

65,316 65,316

Common stock, $0.001 par value per share (150,000,000 shares authorized, 111,095,334 and 65,316,085 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively)

Additional paid-in capital 1,597,257 1,027,687

6 unchanged sentences

Unaudited Consolidated Statements of Operations

Nine Months Ended

September 30,

2021 September 30,

2020 September 30,

2021 September 30,

(in thousands, except share and per share data)

2022 March 31,

Investment income:

17 unchanged sentences

Affiliate investments 44 136

Control investments 467 —

Total payment-in-kind interest income 2,798 3,173

5 unchanged sentences

Incentive management fees (Note 2) 4,754 2,722

Compensation expenses — — — 48,410

General and administrative expenses (Note 2) 2,455 2,301

Total operating expenses 24,742 16,237

Net investment income 14,882,552 7,960,166 43,796,306 21,783,364

Income taxes, including excise tax provision 25,533 7,561 7,495 7,561

Net investment income before taxes 19,015 14,356

Income taxes, including excise tax expense 6 (18)

Net investment income after taxes 19,009 14,374

1 unchanged sentence

Unaudited Consolidated Statements of Operations — (Continued)

Nine Months Ended

September 30,

2021 September 30,

2020 September 30,

2021 September 30,

Realized and unrealized gains (losses) on investments, credit support agreement and foreign currency transactions:

(in thousands, except share and per share data)

2022 March 31,

Realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements and foreign currency transactions:

Net realized gains (losses):

3 unchanged sentences

Foreign currency transactions (1,293) (975)

Net realized losses (3,761,700) (20,506,085) (1,579,460) (37,323,454)

Net realized gains (losses) (1,442) 1,839

Net unrealized appreciation (depreciation):

3 unchanged sentences

Net unrealized appreciation (depreciation) on investments (947) 3,833

Credit support agreement — — 700,006 —

Credit support agreements (400) (1,600)

Foreign currency transactions 4,812 4,042

Net unrealized appreciation 3,465 6,275

Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreement and foreign currency transactions (446,637) 35,441,297 22,419,171 (35,728,815)

Loss on extinguishment of debt — (216,474) — (660,066)

Benefit from (provision for) taxes — 199 (1,290) 17,666

Net increase (decrease) in net assets resulting from operations $ 14,410,382 $ 43,177,627 $ 66,206,692 $ (14,595,412)

Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements and foreign currency transactions 2,023 8,114

Net increase in net assets resulting from operations $ 21,032 $ 22,488

Net investment income per share—basic and diluted $ 0.23 $ 0.22

Net increase (decrease) in net assets resulting from operations per share—basic and diluted $ 0.22 $ 0.90 $ 1.01 $ (0.30)

Net increase in net assets resulting from operations per share—basic and diluted $ 0.25 $ 0.34

Dividends/distributions per share:

4 unchanged sentences

Unaudited Consolidated Statements of Changes in Net Assets

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Three Months Ended September 30, 2020

of Shares Par

Balance, June 30, 2020 47,961,753 $ 47,962 $ 846,636,727 $ (356,211,495) $ 490,473,194

Net investment income — — — 7,952,605 7,952,605

Net realized loss on investments / foreign currency transactions — — — (20,506,085) (20,506,085)

Net unrealized appreciation of investments / foreign currency transactions — — — 55,947,382 55,947,382

Loss on extinguishment of debt — — — (216,474) (216,474)

Income tax benefit — — — 199 199

Dividends / distributions — — — (7,673,880) (7,673,880)

Balance, September 30, 2020 47,961,753 $ 47,962 $ 846,636,727 $ (320,707,748) $ 525,976,941

(in thousands, except share amounts)

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Three Months Ended September 30, 2021

Three Months Ended March 31, 2021

of Shares Par

Balance, June 30, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (283,644,802) $ 744,127,561

Balance, December 31, 2020 65,316,085 $ 65 $ 1,027,707 $ (309,968) $ 717,804

Net investment income — — — 14,374 14,374

Net realized loss on investments / foreign currency transactions — — — (3,761,700) (3,761,700)

Net realized gain on investments / foreign currency transactions — — — 1,839 1,839

Net unrealized appreciation of investments / CSA / foreign currency transactions — — — 6,275 6,275

Dividends / distributions — — — (12,410) (12,410)

Balance, September 30, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (282,950,798) $ 744,821,565

See accompanying notes.

Barings BDC, Inc.

Unaudited Consolidated Statements of Changes in Net Assets — (Continued)

Balance, March 31, 2021 65,316,085 $ 65 $ 1,027,707 $ (299,890) $ 727,882

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2022

of Shares Par

2 unchanged sentences

Net realized loss on investments / foreign currency transactions — — — (1,442) (1,442)

Net unrealized appreciation of investments / foreign currency transactions — — — 1,594,639 1,594,639

Loss on extinguishment of debt — — — (660,066) (660,066)

Income tax benefit — — — 17,666 17,666

Dividends / distributions — — — (23,171,724) (23,171,724)

Purchases of shares in repurchase plan (989,050) (989) (7,129,643) — (7,130,632)

Balance, September 30, 2020 47,961,753 $ 47,962 $ 846,636,727 $ (320,707,748) $ 525,976,941

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Nine Months Ended September 30, 2021

of Shares Par

Balance, December 31, 2020 65,316,085 $ 65,316 $ 1,027,707,047 $ (309,967,839) $ 717,804,524

Net investment income — — — 43,788,811 43,788,811

Net realized gain on investments / foreign currency transactions — — — (1,579,460) (1,579,460)

Net unrealized appreciation of investments / CSA / foreign currency transactions — — — 3,465 3,465

Provision for taxes — — — (1,290) (1,290)

Dividends / distributions — — — (15,023) (15,023)

Balance, September 30, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (282,950,798) $ 744,821,565

Deemed Contribution - CSA (See Note 2) — 44,400 — 44,400

Deemed contribution - from Adviser (See Note 9) — 27,904 — 27,904

Public offering of common stock 45,986,926 46 499,372 — 499,418

Purchases of shares in repurchase plan (207,677) — (2,106) — (2,106)

Balance, March 31, 2022 111,095,334 $ 111 $ 1,597,257 $ (279,812) $ 1,317,556

See accompanying notes.

1 unchanged sentence

Unaudited Consolidated Statements of Cash Flows

Nine Months Ended

September 30, 2021 September 30, 2020

(in thousands)

Three Months Ended

March 31, 2022 March 31, 2021

Cash flows from operating activities:

Net increase (decrease) in net assets resulting from operations $ 66,206,692 $ (14,595,412)

Net increase in net assets resulting from operations $ 21,032 $ 22,488

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 (335,519) (276,456)

Net cash acquired from mergers (cash consideration paid) (See Note 9) 101,896 —

Transaction costs from mergers (See Note 9) (2,866) —

Repayments received/sales of portfolio investments 210,493 188,160

4 unchanged sentences

Net realized loss on foreign currency transactions 1,293 975

Net unrealized appreciation of investments (9,029,730) (3,351,051)

Net unrealized appreciation of CSA (700,006) —

Net unrealized appreciation of foreign currency transactions (14,268,895) 1,756,412

Net unrealized appreciation on investments 947 (3,832)

Net unrealized depreciation of CSA 400 1,600

Net unrealized appreciation on foreign currency transactions (4,812) (4,042)

Payment-in-kind interest (2,798) (3,174)

Amortization of deferred financing fees 732 344

Loss on extinguishment of debt — 660,066

Accretion of loan origination and other fees (1,523) (1,481)

5 unchanged sentences

Interest payable 4,746 1,869

Net cash provided by (used in) operating activities (115,872,743) 4,824,041

Net cash used in operating activities (18,832) (85,112)

Cash flows from financing activities:

1 unchanged sentence

Repayments of credit facilities — (134,083)

Repayment of debt securitization — (139,897,128)

Proceeds from notes — 150,000

3 unchanged sentences

Net cash provided by (used in) financing activities 89,010 33,140

Net decrease in cash and foreign currencies (51,101,889) (7,204,207)

Net increase (decrease) in cash and foreign currencies 70,178 (51,972)

Cash and foreign currencies, beginning of period 84,253 92,487

Cash and foreign currencies, end of period $ 154,431 $ 40,515

Supplemental disclosure of cash flow information:

Supplemental Information:

Cash paid for interest $ 5,966 $ 4,903

Supplemental non-cash information

Acquisitions (See Note 9):

Fair value of Sierra net assets acquired, net of cash $ (435,811) $ —

Transaction Costs 7,520 —

Common stock issued in acquisition of Sierra net assets 499,418 —

Credit support agreement (See Note 2) (44,400) —

Deemed contribution -from Adviser 27,904 —

Deemed contributions - CSA 44,400 —

See accompanying notes.

1 unchanged sentence

Unaudited Consolidated Schedule of Investments

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

2 unchanged sentences

Non–Control / Non–Affiliate Investments:

1A Smart Start LLC (0.4%)* (7) (8) (11)

Technology Distributors Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.5% Cash, Acquired 06/21, Due 05/28) $ 3,001,138 $ 2,957,652 $ 2,961,043

3,001,138 2,957,652 2,961,043

1WorldSync, Inc.

2 unchanged sentences

16,474 16,240 16,445

Accelerant Holdings (0.4%)* (7)

Banking, Finance, Insurance & Real Estate Class A Convertible Preferred Equity (5,000 shares, Acquired 01/22) 5,000 5,103

Accelerate Learning, Inc.

9 unchanged sentences

24,874 24,699 24,563

Acogroup (1.7%)* (3) (7) (8) (16)

Business Services First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 6.3% Cash, Acquired 03/22, Due 10/26) 23,622 22,760 23,031

23,622 22,760 23,031

ADB Safegate (0.4%)* (3) (8) (10)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 7.75%, 8.8% Cash, Acquired 08/21, Due 10/25) 5,500,000 5,069,046 5,180,340

Aerospace & Defense Second Lien Senior Secured Term Loan (LIBOR + 7.75%, 8.8% Cash, Acquired 08/21, Due 10/25) 5,500 5,113 5,118

5,500 5,113 5,118

Advantage Software Company (The), LLC (0.1%)* (7)

Advertising, Printing & Publishing First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.5% Cash, Acquired 01/21, Due 01/27) (8) (9)

18,256,407 17,821,678 18,219,894

Advertising, Printing & Publishing Class A1 Partnership Units (8,717.76 units, Acquired 12/21) 280 902

Class A2 Partnership Units (2,248.46 units, Acquired 12/21) 72 233

Class B1 Partnership Units (8,717.76 units, Acquired 12/21) 9 6

18,256,407 18,549,793 20,228,074

Class B2 Partnership Units (2,248.46 units, Acquired 12/21) 2 2

Aftermath Bidco Corporation (0.7%)* (7) (8) (10)

11 unchanged sentences

6,460 6,677 7,006

Alpine SG, LLC (2.0%)* (7) (8) (9) (31)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 02/22, Due 11/27) 26,957 26,418 26,418

26,957 26,418 26,418

Alpine US Bidco LLC (2.4%)* (7) (8) (9)

1 unchanged sentence

18,157 17,654 17,612

AMMC CLO 22, Limited Series 2018-22A (0.3%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 12.61%, Acquired 02/22, Due 04/31)

7,222 4,690 4,267

AMMC CLO 23, Ltd.

Series 2020-23A (0.1%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 12.35%, Acquired 02/22, Due 10/30)

2,000 1,948 1,781

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Amtech LLC (0.2%)* (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 11/27) (9)

$ 2,291 $ 2,210 $ 2,225

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 11/27) (10)

2,291 2,197 2,213

Anagram Holdings, LLC (1.2%)* (3)

1 unchanged sentence

14,755 13,866 15,714

AnalytiChem Holding Gmbh (0.2%)* (3) (7) (8) (16)

Chemicals First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 6.3% Cash, Acquired 11/21, Due 12/28) 2,740 2,589 2,551

2,740 2,589 2,551

Anju Software, Inc.

2 unchanged sentences

13,528 13,368 12,865

AP Aristotle Holdings, LLC (0.1)* (7)

Oil Field Services Subordinated Term Loan (19.8% Cash, Acquired 12/21, Due 06/25) 1,588 1,594 1,592

1,588 1,594 1,592

Apex Bidco Limited (0.2%)* (3) (7)

3 unchanged sentences

2,194 2,141 2,194

Apidos CLO XXIV, Series 2016-24A (0.5%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 19.24%, Acquired 02/22, Due 10/30)

18,358 7,557 6,946

GmbH (0.4%)* (3) (7)

4 unchanged sentences

5,301 5,587 5,312

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Apus Bidco Limited (0.3%)* (3) (7) (8) (22)

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.5% Cash, Acquired 02/21, Due 03/28) $ 3,884,134 $ 3,870,272 $ 3,796,407

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (SONIA + 5.5%, 5.5% Cash, Acquired 02/21, Due 03/28) 3,793 3,877 3,725

3,793 3,877 3,725

3 unchanged sentences

20,000 19,523 19,647

Aquavista Watersides 2 LTD (0.5%)* (3) (7) (8) (22)

Transportation Services First Lien Senior Secured Term Loan (SONIA + 6.0%, 6.1% Cash, Acquired 12/21, Due 12/28) 5,873 5,709 5,661

Revolver (SONIA + 6.0%, 6.1% Cash, Acquired 12/21, Due 12/22) — (3) (4)

Second Lien Senior Secured Term Loan (SONIA + 10.5% PIK, Acquired 12/21, Due 12/28) 1,468 1,447 1,436

7,341 7,153 7,093

Arch Global Precision LLC (0.7%)* (7) (8) (10)

5 unchanged sentences

Argus Bidco Limited (0.2%)* (3) (7) (8)

High Tech Industries First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.8% Cash, Acquired 12/20, Due 12/27) (14)

High Tech Industries First Lien Senior Secured Term Loan (SONIA + 5.5%, 5.8% Cash, Acquired 12/20, Due 12/27) (21)

2,607 2,562 2,597

1 unchanged sentence

3,279 3,216 3,266

3,342,065 3,209,803 3,342,065

Armstrong Transport Group (Pele Buyer, LLC ) (0.3%)* (7) (8) (10)

1 unchanged sentence

4,015 3,962 3,948

First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 07/20, Due 06/24) (12)

Arrow International, Inc.

(1.1%)* (7) (8) (10) (31)

Hotel, Gaming & Leisure First Lien Senior Secured Term Loan (LIBOR + 7.25%, 8.5% Cash, Acquired 02/22, Due 12/25) 15,000 15,000 15,000

15,000 15,000 15,000

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

ASPEQ Heating Group LLC (0.6%)* (7) (8) (9)

1 unchanged sentence

8,435 8,353 8,435

Astra Bidco Limited (0.2%)* (3) (7) (8) (21)

Healthcare First Lien Senior Secured Term Loan (SONIA + 5.75%, 5.8% Cash, Acquired 11/21, Due 11/28) 2,148 2,089 2,068

2,148 2,089 2,068

Auxi International (0.2%)* (3) (7) (8)

3 unchanged sentences

2,440 2,420 2,221

Avance Clinical Bidco Pty Ltd (0.2%)* (3) (7) (8) (24)

Healthcare First Lien Senior Secured Term Loan (BBSY + 5.5%, 6.0% Cash, Acquired 11/21, Due 11/27) 2,651 2,395 2,543

2,651 2,395 2,543

Aviation Technical Services, Inc.(1.9%)* (7) (8) (9) (31)

Aerospace & Defense Second Lien Senior Secured Term Loan (LIBOR + 2.0%, 2.2% Cash, 6.5% PIK, Acquired 02/22, Due 03/25) 27,042 25,699 25,690

27,042 25,699 25,690

AVSC Holding Corp.

2 unchanged sentences

First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, 1.0% PIK, Acquired 08/18, Due 10/26) (8) (10)

748,251 690,105 689,191

First Lien Senior Secured Term Loan (5.0% Cash, 10.0% PIK, Acquired 11/20, Due 10/26) 5,651 5,542 6,518

11,256 10,667 11,799

Azalea Buyer, Inc.

Technology First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 11/21, Due 11/27) (8) (10)

4,606 4,500 4,507

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 11/21, Due 11/27) (8) (10)

Subordinated Term Loan (12.0% PIK, Acquired 11/21, Due 05/28) 1,260 1,235 1,237

Common Stock (192,307.7 shares, Acquired 11/21) 192 192

5,866 5,918 5,927

Bariacum S.A.

(0.5%)* (3) (7) (8) (16)

Consumer Products First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 11/28) 6,342 6,243 6,139

6,342 6,243 6,139

BDP International, Inc.

2 unchanged sentences

14,812 14,621 14,812

Beacon Pointe Advisors, LLC (0.1%)* (7) (8) (11)

Asset Manager & Custody Bank First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 03/20, Due 03/26) 989,250 971,944 968,847

989,250 971,944 968,847

Benify (Bennevis AB)

2 unchanged sentences

1,249 1,223 1,249

Beyond Risk Management, Inc.

(0.2%)* (7) (8) (10)

Other Financial First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.3% Cash, Acquired 10/21, Due 10/27) 2,427 2,345 2,343

2,427 2,345 2,343

Bidwax (0.6%)* (3) (7) (8) (16)

2 unchanged sentences

BigHand UK Bidco Limited (0.3%)* (3) (7) (8) (21)

High Tech Industries First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.6% Cash, Acquired 01/21, Due 01/28) 904,698 878,496 879,072

904,698 878,496 879,072

Black Diamond Equipment Rentals LLC (1.4%)* (7) (25)

Equipment Rental Second Lien Loan (12.5% Cash, Acquired 12/20, Due 06/22) 10,000,000 10,000,000 10,000,000

Warrant (4.17 units, Acquired 12/20) 1,010,000 623,862

High Tech Industries First Lien Senior Secured Term Loan (SONIA + 5.5%, 5.5% Cash, Acquired 01/21, Due 01/28) 3,416 3,360 3,313

3,416 3,360 3,313

3 unchanged sentences

1,905 1,817 1,823

Brightline Trains Florida LLC (0.4%)* (7)

Transportation Senior Secured Note (8.0% Cash, Acquired 08/21, Due 01/28) 5,000 5,000 4,825

5,000 5,000 4,825

Brightpay Limited (0.2%)* (3) (7) (8) (16)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 10/21, Due 10/28) 2,058 2,078 2,012

2,058 2,078 2,012

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

Brightline Trains Florida LLC (0.7%)* Transportation Senior Secured Note (8.0% Cash, Acquired 08/21, Due 01/28) $ 5,000,000 $ 5,000,000 $ 4,941,125

BrightSign LLC (0.6%)* (7)

Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 10/21, Due 10/27) (8) (10)

$ 6,779 $ 6,707 $ 6,664

British Airways 2020-1 Class B Pass Through Trust (0.1%)* Airlines Structured Secured Note - Class B (8.4% Cash, Acquired 11/20, Due 11/28) 836,486 836,486 979,265

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 10/21, Due 10/27) (8) (10)

LLC units (1,107,492.71 units, Acquired 10/21) 1,107 1,107

6,779 7,802 7,748

British Airways 2020-1 Class B Pass Through Trust (0.1%)* Airlines Structured Secured Note - Class B (8.4% Cash, Acquired 11/20, Due 11/28) 783 783 862

British Engineering Services Holdco Limited (1.1%)* (3) (7) (8) (22)

Commercial Services & Supplies First Lien Senior Secured Term Loan (GBP LIBOR + 6.75%, 7.0% Cash, Acquired 12/20, Due 12/27) 15,460,203 15,064,588 15,270,266

Commercial Services & Supplies First Lien Senior Secured Term Loan (SONIA + 7.03%, 7.0% Cash, Acquired 12/20, Due 12/27) 15,097 15,094 14,689

15,097 15,094 14,689

Brook & Whittle Holding Corp.(0.1%)* (7) (8) (10) (31)

Containers, Packaging & Supplies First Lien Senior Secured Term Loan (LIBOR + 4.0%, 4.5% Cash, Acquired 02/22, Due 12/28) 1,994 1,974 1,944

1,994 1,974 1,944

Brown Machine Group Holdings, LLC (0.5%)* (7) (8) (10)

4 unchanged sentences

6,913 6,892 6,913

CAi Software, LLC (0.7%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 12/21, Due 12/28) 9,057 8,882 8,894

Revolver (LIBOR + 6.25%, 7.3% Cash, Acquired 12/21, Due 12/28) — (18) (17)

9,057 8,864 8,877

Canadian Orthodontic Partners Corp.(0.1%)* (3) (7) (8) (25)

1 unchanged sentence

1,703 1,741 1,666

Cardenas Markets, LLC (0.1%)* (7) (8) (10) (31)

Retail First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 02/22, Due 06/27) 1,990 1,985 1,950

1,990 1,985 1,950

Carlson Travel, Inc (0.7%)* Business Travel Management First Lien Senior Secured Note (8.5% Cash, Acquired 11/21, Due 11/26) 6,050 5,670 5,959

Super Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 5,915,060 5,838,792 6,210,813

Common Stock (1,962 units, Acquired 11/20) (7)

Common Stock (94,155 shares, Acquired 11/21) 1,655 2,787

6,050 7,325 8,746

2 unchanged sentences

Diversified Financial Services First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 05/20, Due 05/27) 789 740 789

Ceres Pharma NV (0.1%)* (3) (7) (8) (17)

Pharmaceuticals First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 10/21, Due 10/28) 1,342 1,285 1,254

1,342 1,285 1,254

CGI Parent, LLC (1.4%)* (7)

Business Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 02/22, Due 02/28) (8) (10)

17,796 17,446 17,440

Revolver (LIBOR + 5.5%, 6.5% Cash, Acquired 02/22, Due 02/28) (8) (10)

Preferred Stock (551 shares, Acquired 02/22) 551 551

18,237 18,405 18,399

Cineworld Group PLC (0.2%)* (3)

Leisure Products First Lien Senior Secured Term Loan (LIBOR + 2.5%, 3.5% Cash, 2.5% PIK, Acquired 04/20, Due 02/25) (8) (12)

Leisure Products Super Senior Secured Term Loan (7.0% Cash, 8.3% PIK, Acquired 11/20, Due 05/24) 1,824 1,640 2,152

Super Senior Secured Term Loan (LIBOR + 8.25% Cash, 9.3% Cash, Acquired 07/21, Due 02/25) (8) (11)

994 964 1,056

Super Senior Secured Term Loan (7.0% Cash, 8.3% PIK, Acquired 11/20, Due 05/24) 1,749,570 1,544,114 2,157,079

Super Senior Secured Term Loan (8.25% Cash, 9.3% Cash, Acquired 07/21, Due 05/24) 993,503 957,944 1,060,565

Warrants (553,375 units, Acquired 12/20) 102 84

5 unchanged sentences

(1.4%)* (7) (8) (19)

Internet & Direct Marketing First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 05/19, Due 05/25) 19,154,411 18,913,478 19,154,412

Internet & Direct Marketing First Lien Senior Secured Term Loan (SOFR + 4.75%, 5.8% Cash, Acquired 05/19, Due 05/25) 19,106 18,911 18,819

19,106 18,911 18,819

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

CMT Opco Holding, LLC (Concept Machine) (0.3%)* (7) (8)

3 unchanged sentences

4,144 4,446 3,966

Coastal Marina Holdings, LLC (1.4%)* (7)

Other Financial Subordinated Term Loan (10.0% PIK, Acquired 11/21, Due 11/31) 4,901 4,472 4,447

Subordinated Term Loan (8.0% Cash, Acquired 11/21, Due 11/31) 13,044 11,873 11,830

LLC Units (547,591 units, Acquired 11/21) 1,643 2,177

17,945 17,988 18,454

Cobham Slip Rings SAS (0.1%)* (3) (7) (8) (10)

Diversified Manufacturing First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 11/21, Due 11/28) 1,303 1,273 1,276

1,303 1,273 1,276

Command Alkon (Project Potter Buyer, LLC) (1.0%)* (7)

7 unchanged sentences

5,821 5,768 5,733

Core Scientific, Inc.

(1.5%)* (3) (7)

Technology First Lien Senior Secured Term Loan (9.8% Cash, Acquired 03/22, Due 03/25) 20,000 20,200 20,000

20,000 20,200 20,000

Coyo Uprising GmbH (0.4%)* (3) (7)

First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, Acquired 09/21, Due 09/28) (8) (16)

First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, 3.5% PIK, Acquired 09/21, Due 09/28) (8) (16)

4,043 4,137 3,932

2 unchanged sentences

4,043 4,788 4,654

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

CPI International, Inc.

(0.6%)* (7) (8) (10) (31)

Aerospace & Defense Second Lien Senior Secured Term Loan (LIBOR + 7.25%, 8.3% Cash, Acquired 02/22, Due 07/25) 8,575 7,975 7,975

8,575 7,975 7,975

Crash Champions (0.9%)* (7) (8) (10)

4 unchanged sentences

1,304 1,205 1,270

CT Technologies Intermediate Holdings, Inc.

(0.4%)* (8) (9) (31)

Healthcare First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.0% Cash, Acquired 02/22, Due 12/25) 4,975 4,968 4,924

4,975 4,968 4,924

Custom Alloy Corporation (2.2%)* (7) (29)

Manufacturer of Pipe Fittings & Forgings Second Lien Loan (15.0% PIK, Acquired 12/20, Due 04/22) (28)

52,244 42,162 26,122

Revolver (15.0% PIK, Acquired 12/20, Due 04/22) (28)

4,940 4,222 2,470

57,184 46,384 28,592

CVL 3 (0.3%)* (3) (7) (8)

Capital Equipment First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) (16)

1,947 1,928 1,903

First Lien Senior Secured Term Loan (SOFR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) (19)

1,142 1,115 1,116

6-Month Bridge Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 06/22) (16)

3,868 3,830 3,790

CW Group Holdings, LLC (0.2%)* (7)

3 unchanged sentences

2,810 2,919 2,758

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Dart Buyer, Inc.

2 unchanged sentences

13,438 13,280 13,438

DataOnline Corp.

(1.3%)* (7) (8) (10) (31)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 02/22, Due 11/25) 14,700 14,700 14,700

Revolver (LIBOR + 6.25%, 7.3% Cash, Acquired 02/22, Due 11/25) 2,143 2,143 2,143

16,843 16,843 16,843

DecksDirect, LLC (0.1%)* (7)

Building Materials First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 12/21, Due 12/26) (8) (9)

Revolver (LIBOR + 6.0%, 7.0% Cash, Acquired 12/21, Due 12/26) (8) (10)

LLC Units (1,280.8 units, Acquired 12/21) 55 55

Discovery Education, Inc.

12 unchanged sentences

2,366 2,297 2,341

Dryden 43 Senior Loan Fund, Series 2016-43A (0.2%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 10.8%, Acquired 02/22, Due 04/34)

3,620 2,454 2,296

Dryden 49 Senior Loan Fund, Series 2017-49A (0.6%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 14.7%, Acquired 02/22, Due 07/30)

17,233 7,934 7,548

Dune Group (0.1%)* (3) (7) (8)

3 unchanged sentences

1,359 1,317 1,324

3,530,280 3,433,272 3,433,731

Dwyer Instruments, Inc.

2 unchanged sentences

4,551 4,460 4,471

Echo Global Logistics, Inc.

Air Transportation Second Lien Senior Secured Term Loan (LIBOR + 7.25%, 7.8% Cash, Acquired 11/21, Due 11/29) (8) (9)

14,469 14,224 14,246

Partnership Equity (530.92 units, Acquired 11/21) 531 531

14,469 14,755 14,777

Ellkay, LLC (0.4%)* (7) (8) (10)

1 unchanged sentence

4,975 4,883 4,894

EMI Porta Holdco LLC (0.8%)* (7) (8) (10)

Diversified Manufacturing First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) 10,822 10,401 10,430

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) 605 549 552

11,427 10,950 10,982

Entact Environmental Services, Inc.

2 unchanged sentences

5,690 5,645 5,554

Envision Healthcare Corporation (0.0%)* (8) (9) (31)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 3.75%, 4.2% Cash, Acquired 02/22, Due 10/25) 48 37 32

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

EPS NASS Parent, Inc.

2 unchanged sentences

5,798 5,685 5,711

eShipping, LLC (0.3%)* (7) (8)

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 11/27) (9)

3,854 3,744 3,759

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 11/27) (10)

4,517 4,379 4,396

Events Software BidCo Pty Ltd (0.1%)* (3) (7) (8) (24)

Technology First Lien Senior Secured Term Loan (BBSY + 5.5%, 5.5% Cash, Acquired 03/22, Due 03/28) 1,924 1,850 1,852

1,924 1,850 1,852

F24 (Stairway BidCo Gmbh) (0.1%)* (3) (7) (8) (16)

4 unchanged sentences

Oil & Gas Equipment & Services OpCo Preferred Units (2,886 units, Acquired 03/21) 2,799 3,030

2,799,420 2,972,580

Fineline Technologies, Inc.

2 unchanged sentences

1,302 1,281 1,302

Finexvet (0.1%)* (3) (7) (8) (16)

Consumer Cyclical

First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 03/22, Due 03/29) 1,536 1,458 1,467

1,536 1,458 1,467

FinThrive Software Intermediate Holdings Inc.

(0.5%)* Business Equipment & Services Preferred Stock (6,582.7 shares, Acquired 03/22) 7,263 7,263

FitzMark Buyer, LLC (0.3%)* (7) (8) (10)

1 unchanged sentence

4,259 4,189 4,173

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Foundation Risk Partners, Corp.

(1.6%)* (7) (8) (11)

Financial Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 09/20, Due 11/23) $ 10,255,784 $ 10,095,792 $ 10,255,784

Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.5% Cash, Acquired 09/20, Due 11/24) 1,722,221 1,612,762 1,722,221

Flexential Issuer, LLC (1.1%)* Information Technology Structured Secured Note - Class C (6.9% Cash, Acquired 11/21, Due 11/51) 16,000 14,822 15,040

16,000 14,822 15,040

4 unchanged sentences

4,685 5,453 5,106

Front Line Power Construction LLC (0.3%)* Construction Machinery First Lien Senior Secured Term Loan (LIBOR + 12.5%, 13.5% Cash, Acquired 11/21, Due 11/28) (7) (8) (10)

4,000 3,876 3,880

Common Stock (50,848 shares, Acquired 11/21) 130 94

4,000 4,006 3,974

FSS Buyer LLC (0.5%)* (7)

4 unchanged sentences

6,895 6,825 6,847

GC EOS Buyer Inc.

(0.2%)* (8) (9) (31)

Automotive First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.0% Cash, Acquired 02/22, Due 08/25) 2,481 2,479 2,448

2,481 2,479 2,448

GTM Intermediate Holdings, Inc.

1 unchanged sentence

Medical Equipment Manufacturer Second Lien Loan (11.0% Cash, 1.0% PIK, Acquired 12/20, Due 12/24) 11,540 11,489 11,309

Series A Preferred Units (923,347.4 units) 1,446,615 1,652,792

Series C Preferred Units (460,652.6 units) 721,708 815,355

Common Stock (2 shares, Acquired 12/20) 1,078,778 1,367,408

Series A Preferred Units (923,347.4 units, Acquired 12/20) 2,166 1,391

Series C Preferred Units (460,652.6 units, Acquired 12/20) 1,081 995

11,540 14,736 13,695

1 unchanged sentence

Oil & Gas Exploration & Production First Lien Senior Secured Term Loan (LIBOR + 6.75%, 7.8% Cash, Acquired 11/21, Due 08/26) 829 798 756

1,040,300 963,345 998,251

Halo Technology Bidco, Inc.

(0.5%)* (7) (8) (11)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 06/21, Due 06/27) 3,491,250 3,440,704 3,443,245

3,491,250 3,440,704 3,443,245

Hawaiian Airlines 2020-1 Class B Pass Through Certificates (0.4%)* Airlines Structured Secured Note - Class B (11.3% Cash, Acquired 08/20, Due 09/25) 5,389 5,389 5,874

5,389 5,389 5,874

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Heartland Veterinary Partners, LLC (0.7%)* (7)

Healthcare Subordinated Term Loan (11.0% PIK, Acquired 11/21, Due 11/28) $ 9,343 $ 9,103 $ 9,124

9,343 9,103 9,124

Heartland, LLC (1.1%)* (7) (8) (10)

1 unchanged sentence

14,040 13,948 13,818

Heavy Construction Systems Specialists, LLC (0.5%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 11/21, Due 11/27) 7,368 7,228 7,239

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 11/21, Due 11/27) — (49) (46)

7,368 7,179 7,193

Heilbron (f/k/a Sucsez (Bolt Bidco B.V.)) (0.6%)* (3) (7) (8) (16)

4 unchanged sentences

5,461 5,440 5,461

Holley Performance Products (Holley Purchaser, Inc.) (2.3%)* (7) (8) (11)

Automotive Parts & Equipment First Lien Senior Secured Term Loan (LIBOR + 5.0%, 5.1% Cash, Acquired 10/18, Due 10/25) 16,826,972 16,671,230 16,826,972

Holland Acquisition Corp.

(0.0%)* (7) (8) (9) (28) (31)

Oil & Gas First Lien Senior Secured Term Loan (LIBOR + 9.0%, 10.0% Cash, Acquired 02/22, Due 05/22) 3,754 — —

Home Care Assistance, LLC (0.3%)* (7) (8) (10)

16 unchanged sentences

8,106 8,069 6,416

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

IM Square (0.5%)* (3) (7) (8) (17)

1 unchanged sentence

6,898 7,272 6,774

IMIA Holdings, Inc.

(2.0%)* (7) (8) (11)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 04/21, Due 04/27) 14,925,000 14,645,916 14,835,450

Infoniqa Holdings GmbH (0.2%)* (3) (7) (8) (16)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 11/21, Due 11/28) 2,924 2,895 2,853

2,924 2,895 2,853

2 unchanged sentences

6,121 6,327 5,583

Innovative XCessories & Services, LLC (0.2%)* (8) (10) (31)

Automotive First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 02/22, Due 03/27) 2,946 2,892 2,762

2,946 2,892 2,762

INOS 19-090 GmbH (0.4%)* (3) (7) (8) (16)

1 unchanged sentence

5,157 5,501 5,157

(0.2%)* (8) (9) (31)

Business First Lien Senior Secured Term Loan (LIBOR + 7.5%, 8.5% Cash, Acquired 02/22, Due 11/24) 2,710 2,738 2,696

2,710 2,738 2,696

Isagenix International, LLC (0.1%)* (8) (10) (31)

Wholesale First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 02/22, Due 06/25) 1,645 1,208 1,033

1,645 1,208 1,033

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

ISS#2, LLC (d/b/a Industrial Services Solutions) (0.5%)* (7) (8) (10)

1 unchanged sentence

6,720 6,628 6,431

ITI Intermodal, Inc.

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

Revolver (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

Common Stock (1,433.37 shares, Acquired 01/22) 144 143

Ivanti Software, Inc.

(0.4%)* (8) (10) (31)

High Tech Industries Second Lien Senior Secured Term Loan (LIBOR + 7.25%, 7.8% Cash, Acquired 02/22, Due 12/28) 6,000 5,989 5,910

6,000 5,989 5,910

Jade Bidco Limited (Jane's)

5 unchanged sentences

30,970 30,126 30,235

Jaguar Merger Sub Inc.

(0.2%)* (7) (8) (10)

Other Financial First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 09/24) 2,722 2,671 2,671

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 09/24) — (6) (6)

2,722 2,665 2,665

Jedson Engineering, Inc.

7 unchanged sentences

3,856 3,759 3,687

Jon Bidco Limited (0.6%)* (3) (7) (8) (27)

First Lien Senior Secured Term Loan (BKBM + 5.5%, 6.0% Cash, Acquired 03/22, Due 03/27) 8,319 8,065 8,047

8,319 8,065 8,047

Jones Fish Hatcheries & Distributors LLC (0.2%)* (7)

Consumer Products First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 02/22, Due 02/28) (8) (10)

2,785 2,730 2,729

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 02/22, Due 02/28) (8) (11)

LLC Units (974.68 units, Acquired 02/22) 97 97

2,785 2,819 2,818

K&N Parent, Inc.

(0.7%)* (8) (10) (31)

Automotive First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 02/22, Due 10/23) 7,923 7,243 7,115

Second Lien Senior Secured Term Loan (LIBOR + 8.75%, 9.8% Cash, Acquired 02/22, Due 10/24) (7)

2,000 1,700 1,660

9,923 8,943 8,775

Kano Laboratories LLC (0.4%)* (7)

7 unchanged sentences

7,206 7,111 7,076

Kid Distro Holdings, LLC (0.7%)* (7)

Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 10/21, Due 10/27) (8) (10)

9,326 9,152 9,170

LLC Units (637,677.11 units, Acquired 10/21) 638 638

9,326 9,790 9,808

Kona Buyer, LLC (0.7%)* (7) (8) (10)

1 unchanged sentence

9,058 8,875 8,968

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

LAF International (0.1%)* (3) (7) (8) (17)

1 unchanged sentence

1,602 1,696 1,584

Learfield Communications, LLC (1.1%)* Broadcasting First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 08/20, Due 12/23) (8) (9)

Lambir Bidco Limited (0.5%)* (3) (7)

Healthcare First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 12/21, Due 12/28) (8) (15)

4,909 4,776 4,726

Revolver (EURIBOR + 6.0%, 6.0% Cash, Acquired 12/21, Due 12/24) (8) (15)

Second Lien Senior Secured Term Loan (12.0% PIK, Acquired 12/21, Due 06/29) 1,387 1,365 1,349

6,603 6,434 6,349

LeadsOnline, LLC (0.8%)* (7)

Business Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 02/28) (8) (10)

10,354 10,176 10,172

Revolver (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 02/28) (8) (10)

LLC Units (52,493.44 units, Acquired 02/22) 52 52

10,354 10,184 10,178

Learfield Communications, LLC (0.6%)* Broadcasting First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 08/20, Due 12/23) (8) (9)

First Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.0% Cash, 10.2% PIK, Acquired 08/20, Due 12/23) (10)

4 unchanged sentences

12,319 10,129 —

Lifestyle Intermediate II, LLC (0.2%)* (7) (8) (10) (31)

Consumer Goods:

Durable First Lien Senior Secured Term Loan (LIBOR + 7.0%, 8.0% Cash, Acquired 02/22, Due 01/26) 3,174 3,174 3,174

Revolver (LIBOR + 7.0%, 8.0% Cash, Acquired 02/22, Due 01/26) — — —

3,174 3,174 3,174

LivTech Purchaser, Inc.

1 unchanged sentence

Business Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/21, Due 12/25) 862 854 853

LogMeIn, Inc.

(0.1%)* (8) (9) (31)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.75% Cash, Acquired 02/22, Due 08/27) 1,975 1,957 1,936

1,975 1,957 1,936

Magnetite XIX, Limited (1.0%)* (3) (31)

Multi-Sector Holdings Subordinated Notes (LIBOR + 8.77, 9.0% Cash, Acquired 02/22, Due 04/34) (10)

5,250 5,107 5,019

Subordinated Structured Notes (Residual Interest, current yield 12.38%, Acquired 02/22, Due 04/34)

13,730 9,425 8,342

18,980 14,532 13,361

Marmoutier Holding B.V.

(0.1%)* (3) (7) (8) (16)

Consumer Products First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 12/21, Due 12/28) 1,902 1,874 1,845

Revolver (EURIBOR + 5.0%, 5.0% Cash, Acquired 12/21, Due 06/27) — (4) (4)

1,902 1,870 1,841

Marshall Excelsior Co.

(0.8%)* (7) (8) (19)

Capital Goods

First Lien Senior Secured Term Loan (SOFR + 5.5%, 6.5% Cash, Acquired 02/22, Due 02/28) 10,467 10,287 10,284

Revolver (SOFR + 5.5%, 6.5% Cash, Acquired 02/22, Due 02/28) 606 578 577

11,073 10,865 10,861

MC Group Ventures Corporation (0.3%)* (7)

3 unchanged sentences

3,678 4,339 4,341

Media Recovery, Inc.

(SpotSee) (0.5%)* (7) (8)

Containers, Packaging & Glass First Lien Senior Secured Term Loan (SOFR + 6.0%, 7.0% Cash, Acquired 11/19, Due 11/25) (19)

2,933 2,895 2,933

First Lien Senior Secured Term Loan (SONIA + 6.0%, 7.0% Cash, Acquired 12/20, Due 11/25) (21)

4,318 4,306 4,318

7,251 7,201 7,251

(0.7%)* (3) (8) (21)

Healthcare First Lien Senior Secured Term Loan (SONIA + 6.0%, 7.0% Cash, Acquired 02/22, Due 11/27) 9,809 9,762 9,490

9,809 9,762 9,490

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

Media Recovery, Inc.

(SpotSee) (1.0%)* (7) (8)

Containers, Packaging & Glass First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/19, Due 11/25) (11)

$ 2,947,860 $ 2,904,822 $ 2,947,860

First Lien Senior Secured Term Loan (GBP LIBOR + 6.0%, 7.0% Cash, Acquired 12/20, Due 12/26) (14)

Medical Solutions Parent Holdings, Inc.

(0.3%)* (8) (10)

Healthcare Second Lien Senior Secured Term Loan (LIBOR + 7.0%, 7.5% Cash, Acquired 11/21, Due 11/29) $ 4,421 $ 4,378 $ 4,244

4,421 4,378 4,244

1 unchanged sentence

Construction & Building First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 08/21, Due 08/27) (8) (9)

923,077 904,955 904,615

Partnership Units (76.92 Units, Acquired 08/21) 77 77

923,077 981,878 981,535

Modern Star Holdings Bidco Pty Limited.

6 unchanged sentences

Murphy Midco Limited (0.1%)* (3) (7) (8) (22)

Media, Diversified & Production First Lien Senior Secured Term Loan (GBP LIBOR + 5.5%, 5.6% Cash, Acquired 11/20, Due 11/27) 4,577,225 4,296,504 4,467,552

Media, Diversified & Production First Lien Senior Secured Term Loan (SONIA + 5.0%, 5.0% Cash, Acquired 11/20, Due 11/27) 1,077 1,039 1,049

1,077 1,039 1,049

3 unchanged sentences

7,462 7,319 7,301

Napa Bidco Pty Ltd (1.5%)* (3) (7) (8) (24)

Healthcare First Lien Senior Secured Term Loan (BBSY + 6.0%, 6.1% Cash, Acquired 03/22, Due 03/28) 20,895 19,461 20,215

20,895 19,461 20,215

Narda Acquisitionco., Inc.

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) (8) (10)

5,680 5,585 5,589

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) (8) (10)

Class A Preferred Stock (4,587.38 shares, Acquired 12/21) 459 468

Class B Common Stock (509.71 shares, Acquired 12/21) 51 51

5,680 6,073 6,087

Navia Benefit Solutions, Inc.

2 unchanged sentences

2,721 2,665 2,678

Nexus Underwriting Management Limited (0.1%)* (3) (7) (8) (22)

Other Financial First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 10/21, Due 10/28) 1,644 1,638 1,594

Revolver (SONIA + 5.25%, 5.3% Cash, Acquired 10/21, Due 04/22) 101 102 101

1,745 1,740 1,695

NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (0.4%)* (7) (8) (9)

1 unchanged sentence

4,740 4,727 4,707

Northstar Recycling, LLC (0.2%)* (7) (8) (10)

Environmental Industries First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 10/21, Due 09/27) 2,500 2,454 2,458

2,500 2,454 2,458

Novotech Aus Bidco Pty Ltd (0.5%)* (3) (7) (8)

Healthcare First Lien Senior Secured Term Loan (BBSY + 5.75%, 6.3% Cash, Acquired 01/22, Due 01/28) (23)

3,864 3,659 3,777

First Lien Senior Secured Term Loan (SOFR + 5.75%, 6.3% Cash, Acquired 01/22, Due 01/28) (18)

3,474 3,380 3,377

7,338 7,039 7,154

OA Buyer, Inc.

Healthcare First Lien Senior Secured Term Loan (LIBOR + 6.0%, 6.8% Cash, Acquired 12/21, Due 12/28) (8) (10)

8,501 8,336 8,346

Revolver (LIBOR + 6.0%, 6.8% Cash, Acquired 12/21, Due 12/28) (8) (10)

Partnership Units (210,920.11 units, Acquired 12/21) 211 211

8,501 8,521 8,533

OAC Holdings I Corp (0.3%)* (7) (8) (19)

Automotive First Lien Senior Secured Term Loan (SOFR + 5.0%, 6.0% Cash, Acquired 03/22, Due 04/28) 3,630 3,557 3,557

Revolver (SOFR + 5.0%, 6.0% Cash, Acquired 03/22, Due 04/28) 685 658 658

4,315 4,215 4,215

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Odeon Cinemas Group Limited (0.3%)* (3) (7)

2 unchanged sentences

(0.3%)* (7) (9) (31)

Transportation:

Cargo First Lien Senior Secured Term Loan (LIBOR + 5.0%, Cash 5.2%, Acquired 02/22, Due 06/26) 3,747 3,709 3,691

3,747 3,709 3,691

(0.2%)* (3) (7) (8) (16)

Containers & Glass Products First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) 2,853 2,999 2,789

12 unchanged sentences

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 06/21, Due 06/28) (11)

597,094 581,261 582,346

First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) (16)

384,446 393,487 374,950

OSP Hamilton Purchaser, LLC (0.2%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) 2,281 2,237 2,239

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) — (4) (3)

2,281 2,233 2,236

5 unchanged sentences

4,537 4,481 4,516

Path Medical, LLC (0.3%)* (7) (31)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (9.5% PIK, Acquired 02/22, Due 10/22) (28)

8,465 4,571 4,571

First Lien Senior Secured Term Loan 13.0% PIK, Acquired 02/22, Due 10/22) (28)

Warrants (36,716 units, Acquired 02/22) — —

20,229 4,571 4,571

Patriot New Midco 1 Limited (Forensic Risk Alliance) (0.5%)* (3) (7) (8)

4 unchanged sentences

6,911 6,711 6,385

PDQ.Com Corporation (0.6%)* (7)

Business Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 08/21, Due 08/27) (8) (10)

7,546 7,284 7,300

Class A-2 Partnership Units (26.32 units, Acquired 08/21) 29 37

7,546 7,313 7,337

Permaconn Bidco Ltd (0.4%)* (3) (7) (8) (24)

Tele-communications First Lien Senior Secured Term Loan (BBSY + 6.5%, 6.5% Cash, Acquired 12/21, Due 12/27) 5,179 4,810 5,049

5,179 4,810 5,049

PetroChoice Holdings, Inc.

(0.6%)* (7) (8) (10) (31)

Chemicals, Plastics & Rubber Second Lien Senior Secured Term Loan (LIBOR + 8.75%, 9.8% Cash, Acquired 02/22, Due 08/23) 9,000 8,190 8,190

9,000 8,190 8,190

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

PDQ.Com Corporation (0.6%)* (7)

Business Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 08/21, Due 08/28) (8) (11)

Polara Enterprises, LLC (0.1%)* (7)

Capital Equipment First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

$ 1,243 $ 1,219 $ 1,198

Class A-2 Partnership Units (26.32 units, Acquired 08/21) 26,316 26,320

Revolver (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

Partnership Units (3,820.44 units, Acquired 12/21) 382 382

1,243 1,591 1,560

PerTronix, LLC (0.9%)* (7) (8) (9)

Automotive First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/20, Due 10/26) 6,525,965 6,440,766 6,525,965

Policy Services Company, LLC (3.2%)* (7)

Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, 4.0% PIK, Acquired 12/21, Due 06/26) (8) (10)

44,474 43,075 43,026

Warrants - Class A (25,582 units, Acquired 12/21) — —

Warrants - Class B (8,634 units, Acquired 12/21) — —

Warrants - Class C (888 units, Acquired 12/21) — —

Warrants - Class D (2,282 units, Acquired 12/21) — —

44,474 43,075 43,026

Polymer Solutions Group Holdings, LLC (0.1%)* (7) (8) (9) (31)

Chemicals, Plastics & Rubber First Lien Senior Secured Term Loan (LIBOR + 7.0%, 8.0% Cash, Acquired 02/22, Due 01/23) 1,031 1,031 1,031

1,031 1,031 1,031

Premium Franchise Brands, LLC (1.1%)* (7) (8) (10)

15 unchanged sentences

1,836 1,835 1,812

ProfitOptics, LLC (0.2%)* (7)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 03/22, Due 02/28) (8) (10)

1,770 1,735 1,734

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 03/22, Due 02/28) (8) (10)

Second Lien Senior Subordinated Term Loan (8.0% Cash, Acquired 03/22, Due 02/29) 81 81 81

LLC Units (241,935.48 units, Acquired 03/22) 161 161

1,851 1,967 1,966

Proppants Holdings, LLC (0.0%)* (7) (31)

Oil & Gas Common Stock (1,668,106 shares, Acquired 02/22) — —

Protego Bidco B.V.

3 unchanged sentences

3,693 3,833 3,620

PSC UK Pty Ltd.

(0.4%)* (3) (7) (8) (13)

Insurance Services First Lien Senior Secured Term Loan (GBP LIBOR + 6.0%, 6.5% Cash, Acquired 11/19, Due 10/24) 2,648,286 2,453,899 2,648,286

2,648,286 2,453,899 2,648,286

QPE7 SPV1 BidCo Pty Ltd (0.2%)* (3) (7) (8) (24)

2 unchanged sentences

Questel Unite (0.5%)* (3) (7) (8) (10)

Business Services First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 6.3% Cash, Acquired 12/20, Due 12/27) (16)

18,333,313 18,730,984 18,259,980

First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.8% Cash, Acquired 12/20, Due 12/27) (11)

Business Services First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.8% Cash, Acquired 12/20, Due 12/27) 6,892 6,805 6,892

6,892 6,805 6,892

RA Outdoors, LLC (1.4%)* (7) (8) (10) (31)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 6.75%, 7.8% Cash, Acquired 02/22, Due 04/26) 17,855 17,498 17,498

Revolver (LIBOR + 6.75%, 7.8% Cash, Acquired 02/22, Due 04/26) 494 494 469

18,349 17,992 17,967

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Recovery Point Systems, Inc.

3 unchanged sentences

11,619 11,627 11,652

Redwood Services Group, LLC (2.0%)* (7) (8) (9) (31)

Business First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 02/22, Due 06/23) 10,594 10,594 10,594

First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 02/22, Due 06/23) (7)

16,434 16,434 16,434

27,028 27,028 27,028

Renovation Parent Holdings, LLC

Home Furnishings First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 11/21, Due 11/27) (8) (10)

4,854 4,740 4,748

Partnership Equity (197,368.42 units, Acquired 11/21) 197 197

4,854 4,937 4,945

REP SEKO MERGER SUB LLC

2 unchanged sentences

7,763 7,574 7,650

Resolute Investment Managers, Inc.(0.4%)* (7) (8) (10) (31)

Banking, Finance, Insurance & Real Estate Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 9.0% Cash, Acquired 02/22, Due 04/25) 5,081 5,107 5,030

5,081 5,107 5,030

Resonetics, LLC (0.3%)* (7) (8) (10)

4 unchanged sentences

3,164 3,222 3,082

Riedel Beheer B.V.

(0.1%)* (3) (7) (8) (16)

Food & Beverage First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) 1,858 1,836 1,808

1,858 1,836 1,808

RPX Corporation (0.6%)* (7) (8) (10)

1 unchanged sentence

7,530 7,383 7,389

RTIC Subsidiary Holdings, LLC (1.2%)* (7) (31)

Consumer Goods:

Durable First Lien Senior Secured Term Loan (LIBOR + 7.75%, 9.0% Cash, Acquired 02/22, Due 09/25) (8) (10)

9,661 9,661 9,661

First Lien Senior Secured Term Loan (LIBOR + 7.75%, 9.0% Cash, Acquired 02/22, Due 09/25) (8) (10)

Revolver (LIBOR + 7.75%, 9.0% Cash, Acquired 02/22, Due 09/25) (8) (10)

3,968 3,968 3,968

Class A Preferred Stock (145.347 shares, Acquired 02/22) 4 4

Class B Preferred Stock (145.347 shares, Acquired 02/22) — —

Class C Preferred Stock (7,844.03 shares, Acquired 02/22) 450 450

Common Stock (153 shares, Acquired 02/22) — —

14,403 14,857 14,857

Ruffalo Noel Levitz, LLC

2 unchanged sentences

9,519 9,511 9,519

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Safety Products Holdings, LLC (0.9%)* (7)

6 unchanged sentences

Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 12/21, Due 12/28) 1,748 1,707 1,728

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 12/21, Due 12/28) — (6) (3)

1,748 1,701 1,725

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Serta Simmons Bedding LLC

3 unchanged sentences

10,929 10,604 10,712

Sigmatek Systems, LLC (0.5%)* (7) (8) (11)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 01/21, Due 01/27) 3,955,075 3,884,464 3,939,255

3,955,075 3,884,464 3,939,255

SISU ACQUISITIONCO., INC.

2 unchanged sentences

7,009 6,894 6,708

SMART Financial Operations, LLC (0.0%)* (7) (31)

Banking, Finance, Insurance & Real Estate Preferred Stock (1,000,000 shares, Acquired 02/22) — —

Smartling, Inc.

(1.0%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 10/27) 13,846 13,547 13,572

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 10/27) — (22) (20)

13,846 13,525 13,552

Smile Brands Group Inc.

1 unchanged sentence

Health Care Services First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.3% Cash, Acquired 10/18, Due 10/24) 4,590 4,569 4,554

First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.3% Cash, Acquired 12/20, Due 10/25) 237 226 232

4,827 4,795 4,786

2 unchanged sentences

18,394 18,093 18,394

Sound Point CLO XX, Ltd.

(0.2%)* (3) (31)

Multi-Sector Holdings

Subordinated Structured Notes (Residual Interest, current yield 18.99%, Acquired 02/22, Due 07/31)

4,489 2,332 2,284

Springbrook Software (SBRK Intermediate, Inc.) (1.6%)* (7) (8) (9)

3 unchanged sentences

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 01/21, Due 12/27) 658 644 658

658,312 643,248 658,312

SSCP Pegasus Midco Limited (0.2%)* (3) (7) (8) (13)

1 unchanged sentence

2,677 2,544 2,550

Starnmeer B.V.

(0.2%)* (3) (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.4%, 6.9% Cash, Acquired 10/21, Due 04/27) 2,500 2,465 2,468

2,500 2,465 2,468

Superjet Buyer, LLC (1.0%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) 13,175 12,920 12,933

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) — (35) (33)

13,175 12,885 12,900

Syniverse Holdings, Inc.

2 unchanged sentences

17,256 16,595 16,700

TA SL Cayman Aggregator Corp.

Technology Unsecured HoldCo Note (8.8% PIK, Acquired 07/21, Due 07/28) (8)

Syntax Systems Ltd (0.2%)* (3) (7) (8) (9)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 10/28) 2,051 2,017 2,012

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 10/26) 564 554 553

2,615 2,571 2,565

TA SL Cayman Aggregator Corp.

Technology Subordinated Term Loan (7.8% PIK, Acquired 07/21, Due 07/28) 2,084 2,048 2,052

Common Stock (1,227.79 shares, Acquired 07/21) 50 75

2,084 2,098 2,127

The Hilb Group, LLC

Tank Holding Corp (1.4%)* (7) (8) (18)

Metal & Glass Containers First Lien Senior Secured Term Loan (SOFR + 6.0%, 6.8% Cash, Acquired 03/22, Due 03/28) 19,127 18,698 18,698

Revolver (SOFR + 6.0%, 6.8% Cash, Acquired 03/22, Due 03/28) — (20) (20)

19,127 18,678 18,678

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Team Car Care, LLC (1.0%)* (7) (8) (9) (31)

Automotive First Lien Senior Secured Term Loan (LIBOR + 8.0%, 9.0% Cash, Acquired 02/22, Due 06/24) $ 12,687 $ 12,687 $ 12,687

12,687 12,687 12,687

Team Services Group (1.1%)* (7) (8) (10) (31)

Consumer First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 12/27) 9,903 9,903 9,779

Second Lien Senior Secured Term Loan (LIBOR + 9.0%, 10.0% Cash, Acquired 02/22, Due 12/28) 5,000 4,975 4,950

14,903 14,878 14,729

(0.2%)* (3) (7) (8) (16)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 11/28) 2,324 2,265 2,229

Revolver (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 05/28) 106 97 96

2,430 2,362 2,325

Tencarva Machinery Company, LLC (0.4%)* (7) (8) (10)

Capital Equipment First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) 5,486 5,378 5,384

Revolver (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) — (19) (18)

5,486 5,359 5,366

The Caprock Group, Inc.

(aka TA/TCG Holdings, LLC) (0.3%)* (7)

Brokerage, Asset Managers & Exchanges First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 10/21, Due 12/27) (8) (10)

Revolver (LIBOR + 4.25%, 5.3% Cash, Acquired 10/21, Due 12/27) (8) (10)

Subordinated Term Loan (7.8% PIK, Acquired 10/21, Due 10/28) 3,333 3,270 3,276

4,180 4,035 4,062

The Hilb Group, LLC (1.5%)* (7) (8) (10)

Insurance Brokerage First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 12/19, Due 12/26) 20,269 19,888 19,815

1 unchanged sentence

20,568 20,134 20,051

The Octave Music Group, Inc.

(0.4%)* (7) (8) (9) (31)

Diversified & Production First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, 0.75% PIK, Acquired 02/22, Due 05/25) 5,601 5,601 5,489

5,601 5,601 5,489

Thermacell Repellents, Inc.

(0.3%)* (7) (8) (10) (31)

Consumer Goods:

Durable First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.75% Cash, Acquired 02/22, Due 12/26) 2,766 2,766 2,766

Revolver (LIBOR + 5.75%, 6.75% Cash, Acquired 02/22, Due 12/26) 1,595 1,595 1,595

4,361 4,361 4,361

Total Safety U.S.

16 unchanged sentences

14,964 14,620 14,652

True Religion Apparel, Inc.

(0.0%)* (7) (31)

Retail Common Stock (2.71 shares, Acquired 02/22) — —

Preferred Stock (2.82 shares, Acquired 02/22) — —

Trystar, LLC (0.5%)* (7)

Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/18, Due 09/23) (8) (10)

6,980 6,897 6,869

Class A LLC Units (440.97 units, Acquired 09/18) 481 402

6,980 7,378 7,271

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

Trystar, LLC (1.5%)* (7)

Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 09/18, Due 09/23) (8) (11)

TSM II Luxco 10 SARL (0.8%)* (3) (7) (8) (17)

Chemicals & Plastics Second Lien Senior Secured Term Loan (EURIBOR + 8.75%, 8.8% Cash, Acquired 03/22, Due 03/27) $ 11,127 $ 10,658 $ 10,682

11,127 10,658 10,682

Class A LLC Units (384.5 units, Acquired 09/18) 395,995 341,244

Turbo Buyer, Inc.

(0.5%)* (7) (8) (10)

Finance Companies First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/21, Due 12/25) 6,149 5,991 5,955

6,149 5,991 5,955

Turf Products, LLC (0.7%)* (7) (29)

3 unchanged sentences

(0.4%)* (7) (8) (19)

Consumer Cyclical First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 07/21, Due 09/26) 7,500,000 7,354,973 7,350,000

Consumer Cyclical First Lien Senior Secured Term Loan (SOFR + 6.0%, 7.0% Cash, Acquired 07/21, Due 09/26) 5,025 4,936 4,924

5,025 4,936 4,924

4 unchanged sentences

4,770 1,785 1,785

4,770,719 1,785,250 1,785,250

Silica Company (0.1%)* (3) (8) (9)

2 unchanged sentences

UKFast Leaders Limited (0.9%)* (3) (7) (8) (21)

Technology First Lien Senior Secured Term Loan (GBP LIBOR + 7.0%, 7.1% Cash, Acquired 09/20, Due 9/27) 12,256,215 11,387,846 12,018,579

Technology First Lien Senior Secured Term Loan (SONIA + 7.12%, 7.1% Cash, Acquired 09/20, Due 9/27) 11,968 11,410 11,706

11,968 11,410 11,706

13 unchanged sentences

4,783 4,693 4,773

Velocity Pooling Vehicle, LLC (0.0%)* (7) (31)

Automotive Common Stock (4,676 shares, Acquired 02/22) 60 60

Warrants (5,591 units, Acquired 02/22) 72 72

Victoria Bidco Limited (0.3%)* (3) (7) (8) (22)

Industrial Machinery First Lien Senior Secured Term Loan (SONIA + 6.5%, 6.5% Cash, Acquired 03/22, Due 01/29) 3,646 3,618 3,523

3,646 3,618 3,523

Vision Solutions, Inc.

(0.5%)* (8) (10) (31)

Business equipment & services Second Lien Senior Secured Term Loan (LIBOR + 7.25%, 8.0% Cash, Acquired 02/22, Due 04/29) 6,500 6,497 6,373

6,500 6,497 6,373

VistaJet Pass Through Trust 2021-1B (0.4%)* (7)

Airlines Structured Secured Note - Class B (6.3% Cash, Acquired 11/21, Due 02/29) 5,000 5,000 4,986

5,000 5,000 4,986

Vital Buyer, LLC (0.6%)* (7)

3 unchanged sentences

7,802 7,825 8,085

VOYA CLO 2015-2, LTD.

(0.2%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 454.7%, Acquired 02/22, Due 07/27)

10,736 2,627 2,561

VOYA CLO 2016-2, LTD.

(0.2%)* (3) (31)

Multi-Sector Holdings Subordinated Structured Notes (Residual Interest, current yield 15.05%, Acquired 02/22, Due 07/28)

11,088 3,653 3,185

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

W2O Holdings, Inc.

1 unchanged sentence

Healthcare Technology First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.1% Cash, Acquired 10/20, Due 06/25) $ 2,147 $ 2,147 $ 2,147

First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.7% Cash, Acquired 10/20, Due 06/25) (8)

2,147 2,088 2,147

Walker Edison Furniture Company LLC (0.3%)* (7) (31)

Consumer Goods:

Durable Common Stock (2,819.53 shares, Acquired 02/22) 3,598 3,598

Watermill-QMC Midco, Inc.

(0.0%)* (7) (31)

Automotive Equity (1.62% Partnership Interest, Acquired 02/22) — —

Wawona Delaware Holdings, LLC (0.0%)* (7) (10) (31)

Beverage & Food First Lien Senior Secured Term Loan (LIBOR + 4.75% 5.0% Cash, Acquired 02/22, Due 09/26) 45 41 40

West Dermatology, LLC (0.7%)* (7) (8) (10) (31)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 7.5%, 8.5% Cash, Acquired 02/22, Due 02/25) 862 862 862

First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 02/22, Due 02/25) 1,049 1,049 1,049

First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, 0.8% PIK, Acquired 02/22, Due 02/25) 6,376 6,376 6,376

Revolver (LIBOR + 6.0%, 7.0% Cash, 0.8% PIK, Acquired 02/22, Due 02/25) 1,105 1,105 1,105

9,392 9,392 9,392

Wok Holdings Inc.

(0.0%)* (9) (31)

Retail First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.5% Cash, Acquired 02/22, Due 03/26) 49 48 48

Woodland Foods, LLC (0.8%)* (7)

Food & Beverage First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) (8) (10)

8,512 8,350 8,362

Revolver (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) (8) (10)

Common Stock (1,663.31 shares, Acquired 12/21) 1,663 1,663

9,021 10,479 10,494

World 50, Inc.

3 unchanged sentences

11,646 11,436 11,498

ZB Holdco LLC (0.2%)* (7)

Food & Beverage First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 02/28) (8) (10)

2,705 2,627 2,623

Revolver (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 02/28) (8) (10)

LLC Units (152.69 units, Acquired 02/22) 153 153

2,705 2,763 2,759

Zeppelin Bidco Limited (0.4%)* (3) (7) (8) (21)

Business First Lien Senior Secured Term Loan (SONIA + 6.25%, 6.3% Cash, Acquired 03/22, Due 03/29) 5,653 5,427 5,403

Revolver (SONIA + 6.25%, 6.3% Cash, Acquired 03/22, Due 03/23) — (3) (3)

5,653 5,424 5,400

Subtotal Non–Control / Non–Affiliate Investments (144.8%) 2,029,027 1,950,064 1,917,558

Affiliate Investments:

Eclipse Business Capital, LLC (12.7%)* (7)

Banking, Finance, Insurance, & Real Estate

Second Lien Senior Secured Term Loan (7.5% Cash, Acquired 07/21, Due 07/28) 4,545,455 4,501,161 4,545,455

Revolver (LIBOR + 7.25%, Acquired 07/21.

Due 07/28) (11)

LLC Units (89,849,519 units, Acquired 07/21) 89,849,519 89,849,519

1888 Industrial Services, LLC (0.1%)* (7) (31)

Oil & Gas First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 05/23) (8) (10) (28)

4,186 419 151

Jocassee Partners LLC (4.9%)* (3)

Investment Funds & Vehicles 9.1% Member Interest, Acquired 06/19 30,158,270 36,133,440

Revolver (LIBOR + 6.0%, 7.0% Cash, Acquired 02/22, Due 05/23) (8) (10)

1,307 1,184 1,145

JSC Tekers Holdings (0.8%)* (3) (7) (25)

Real Estate Management Preferred Stock (9,159,085 shares, Acquired 12/20) 4,753,000 5,953,405

Common Stock (3,201 shares, Acquired 12/20) — —

Warrants (7,546.76 units, Acquired 02/22) — —

5,493 1,603 1,296

1 unchanged sentence

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

Security Holdings B.V.

Charming Charlie LLC (0.0%)* (7) (31)

Retail First Lien Senior Secured Term Loan (LIBOR + 12.0%, 13.0% Cash, Acquired 02/22, Due 04/23) (8) (10) (28)

$ 4,948 $ — $ —

Electrical Engineering Bridge Loan (5.0% PIK, Acquired 12/20, Due 05/22) $ 5,451,205 $ 5,451,207 $ 5,451,205

Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) 8,953,684 8,953,685 8,953,684

Senior Unsecured Term Loan (6.0% Cash, 9.0% PIK, Acquired 04/21, Due 04/25) 6,953,700 7,155,302 6,953,700

First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 02/22, Due 04/23) (8) (10) (28)

First Lien Senior Secured Term Loan (20.0% Cash, Acquired 02/22, Due 05/22) (28)

Common Stock (34,923,249 shares, Acquired 02/22) — —

Eclipse Business Capital, LLC (9.5%)* (7)

Banking, Finance, Insurance, & Real Estate Second Lien Senior Secured Term Loan (7.5% Cash, Acquired 07/21, Due 07/28) 4,545 4,504 4,545

Revolver (LIBOR + 7.25%, Acquired 07/21, Due 07/28) (10)

2,727 2,605 2,727

LLC Units (89,447,396 units, Acquired 07/21) 89,850 118,366

7,272 96,959 125,638

Hylan Datacom & Electrical LLC (1.0%)* (7) (31)

Construction & Building First Lien Senior Secured Term Loan (SOFR + 8.0%, 9.0% Cash, Acquired 02/22, Due 03/26) (8)(19)

3,917 3,615 3,917

Second Lien Senior Secured Term Loan (SOFR + 10.0%, 11.0% Cash, Acquired 02/22, Due 03/27) (8)(19)

3,850 3,850 3,850

Common Stock (102,144 shares, Acquired 02/22) 5,219 5,219

7,767 12,684 12,986

Jocassee Partners LLC (3.2%)* (3)

Investment Funds & Vehicles 9.1% Member Interest, Acquired 06/19 35,158 42,106

35,158 42,106

Kemmerer Operations, LLC (0.2%)* (7) (31)

Metals & Mining First Lien Senior Secured Term Loan (15.0% PIK, Acquired 02/22, Due 06/23) 2,543 2,543 2,543

Common Stock (6.78 shares, Acquired 02/22) 1,589 1,589

2,543 4,132 4,132

Sierra Senior Loan Strategy JV I LLC (6.5%)* (3) (31)

Investment Funds & Vehicles 89.01% Member Interest, Acquired 02/22 85,963 82,910

85,963 82,910

Thompson Rivers LLC (5.9%)* (3)

6 unchanged sentences

Control Investments:

Black Angus Steakhouses, LLC (1.2%)* (7) (31)

Hotel, Gaming & Leisure First Lien Senior Secured Term Loan (LIBOR + 9.0%, 10.0% Cash, Acquired 02/22, Due 06/22) (8) (12)

5,647 5,647 5,647

First Lien Senior Secured Term Loan (10.0% PIK, Acquired 02/22, Due 06/22) (8) (12) (28)

24,071 9,628 9,628

Common Stock (44.6 shares, Acquired 02/22) — —

29,718 15,275 15,275

JSC Tekers Holdings (0.4%)* (3) (7) (29)

Real Estate Management Preferred Stock (9,159,085 shares, Acquired 12/20) 4,753 5,953

Common Stock (35,571 shares, Acquired 12/20) — —

MVC Automotive Group Gmbh (1.0%)* (3) (7) (29)

5 unchanged sentences

Limited Partnership Interest 8,899 7,508

9,124,262 8,165,222

Subtotal Control Investments (3.3%) 7,149,166 25,826,428 24,394,808

Short-Term Investments:

BlackRock, Inc.

(3.4%)* Money Market Fund BlackRock Liquidity Temporary Fund (0.04% yield) 25,000,000 25,000,000

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Security Holdings B.V.

(5.9%)* (3) (7) (29)

JPMorgan Chase & Co.

(3.4%)* Money Market Fund JPMorgan Prime Money Market Fund (0.05% yield) 25,000,000 25,000,000

Electrical Engineering Bridge Loan (5.0% PIK, Acquired 12/20, Due 05/22) $ 5,727 $ 5,727 $ 5,727

Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) 9,598 9,598 9,598

Subordinated Senior Subordinated Note (5.0% PIK, Acquired 01/22, Due 05/22) 14,292 14,567 14,292

Senior Unsecured Term Loan (6.0% Cash, 9.0% PIK, Acquired 04/21, Due 04/25) 7,149 7,639 7,149

Common Stock Series A (17,100 shares, Acquired 02/22) 560 439

Common Stock Series B (900 shares, Acquired 12/20) 21,264 41,104

36,766 59,355 78,309

Subtotal Short-Term Investment (6.7%) 50,000,000 50,000,000

Total Investments, September 30, 2021 (221.9%)*

Subtotal Control Investments (9.1%) 73,633 105,210 121,114

Total Investments, March 31, 2022 (182.0%)*

$ 2,134,235 $ 2,391,601 $ 2,403,425

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 $ 14,300,006 $ 700,006

Total Credit Support Agreement, September 30, 2021

(a) The Credit Support Agreement covers all of the investments acquired by Barings BDC, Inc.

Credit Support Agreements

Description(d) Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

MVC Credit Support Agreement(a)(b)(c) Barings LLC 01/01/31 $ 23,000 $ 15,000 $ 1,400

Sierra Credit Support Agreement(e)(f)(g) Barings LLC 04/01/32 $ 100,000 $ 44,400 $ —

Total Credit Support Agreements, March 31, 2022

(a) The MVC Credit Support Agreement covers all of the investments acquired by Barings BDC, Inc.

(the “Company”) from MVC Capital, Inc.

("MVC") in connection with the MVC Acquisition (as defined in “Note 1 – Organization, Business and Basis of Presentation”) 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 (25).

(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 or (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.

Each investment that is included in the MVC Reference Portfolio is denoted in the above Schedule of Investments with footnote (29).

(b) The Company and Barings LLC (“Barings”) entered into the MVC Credit Support Agreement pursuant to which Barings 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 or (2) the date on which the entire MVC Reference Portfolio has been realized or written off.

(d) See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the Credit Support Agreements.

(e) The Sierra Credit Support Agreement covers all of the investments acquired by the Company from Sierra Income Corporation (“Sierra”) in connection with the Sierra Acquisition (as defined in “Note 1 – Organization, Business and Basis of Presentation”) 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 Sierra in connection with the Sierra Acquisition (collectively, the “Sierra Reference Portfolio”).

Each investment that is included in the Sierra Reference Portfolio is denoted in the above Schedule of Investments with footnote (31).

(f) The Company and Barings entered into the Sierra Credit Support Agreement pursuant to which Barings agreed to provide credit support to the Company in the amount of up to $100.0 million.

(g) Settlement Date means the earlier of (1) April 1, 2032 or (2) the date on which the entire Sierra Reference Portfolio has been realized or written off.

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

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) A$9,000,000 $6,523,357 10/06/21 $ (22,179)

Foreign currency forward contract (AUD) $6,550,418 A$9,000,000 10/06/21 49,240

Foreign currency forward contract (AUD) A$2,098,659 $1,507,742 01/06/22 9,026

Foreign currency forward contract (CAD) C$6,124,048 $4,797,823 10/06/21 36,200

Foreign currency forward contract (CAD) $4,962,973 C$6,124,048 10/06/21 128,950

Foreign currency forward contract (CAD) $4,881,155 C$6,229,673 01/06/22 (36,660)

Foreign currency forward contract (DKK) 2,105,000kr.

Description Notional Amount to be Purchased Notional Amount to be Sold Counterparty Settlement Date Unrealized Appreciation (Depreciation)

Foreign currency forward contract (AUD) A$67,436 $50,505 Bank of America, N.A.

04/08/22 $ 138

Foreign currency forward contract (DKK) $334,772 2,105,000kr.

Foreign currency forward contract (AUD) $22,755 A$31,386 Bank of America, N.A.

04/08/22 (815)

Foreign currency forward contract (AUD) $19,490 A$27,000 Citibank N.A.

04/08/22 (787)

Foreign currency forward contract (AUD) $6,494 A$9,050 HSBC Bank USA 04/08/22 (302)

Foreign currency forward contract (AUD) $51,174 A$68,223 Bank of America, N.A.

07/07/22 (146)

Foreign currency forward contract (CAD) C$3,203 $2,559 HSBC Bank USA 04/08/22 5

Foreign currency forward contract (CAD) $2,506 C$3,203 Bank of America, N.A.

04/08/22 (58)

Foreign currency forward contract (CAD) $2,549 C$3,190 HSBC Bank USA 07/07/22 (5)

Foreign currency forward contract (CAD) $49 C$61 BNP Paribas SA 07/07/22 —

Foreign currency forward contract (DKK) 2,116kr.

Foreign currency forward contract (EUR) €13,326,630 $15,559,560 10/06/21 (114,118)

Foreign currency forward contract (EUR) $15,737,249 €13,326,630 10/06/21 291,805

Foreign currency forward contract (EUR) $4,864,467 €4,182,593 01/06/22 6,576

Foreign currency forward contract (GBP) £9,000,000 $12,189,271 10/06/21 (54,099)

Foreign currency forward contract (GBP) $12,254,165 £9,000,000 10/06/21 118,993

Foreign currency forward contract (GBP) £4,465,465 $5,997,745 01/06/22 24,868

Foreign currency forward contract (SEK) 1,787,447kr $203,104 10/06/21 1,212

Foreign currency forward contract (SEK) $209,997 1,787,447kr 10/06/21 5,680

Foreign currency forward contract (SEK) $203,853 1,791,942kr 01/07/22 (1,216)

Total Foreign Currency Forward Contracts, September 30, 2021

$315 Bank of America, N.A.

Foreign currency forward contract (DKK) $323 2,116kr.

Bank of America, N.A.

Foreign currency forward contract (DKK) $323 2,159kr.

Bank of America, N.A.

Foreign currency forward contract (EUR) €2,000 $2,215 Bank of America, N.A.

Foreign currency forward contract (EUR) €86,555 $96,092 Bank of America, N.A.

Foreign currency forward contract (EUR) €5,020 $5,701 HSBC Bank USA 04/08/22 (116)

Foreign currency forward contract (EUR) $25,366 €23,000 HSBC Bank USA 04/08/22 (228)

Foreign currency forward contract (EUR) $8,514 €7,500 BNP Paribas SA 04/08/22 168

Foreign currency forward contract (EUR) $69,071 €61,075 Bank of America, N.A.

04/08/22 1,109

Foreign currency forward contract (EUR) $95,469 €85,835 Bank of America, N.A.

07/07/22 (400)

Foreign currency forward contract (NZD) NZ$11,600 $8,026 Bank of America, N.A.

Foreign currency forward contract (NZD) $7,995 NZ$11,600 HSBC Bank USA 04/08/22 (74)

Foreign currency forward contract (NZD) $8,151 NZ$11,801 Bank of America, N.A.

07/07/22 (44)

Foreign currency forward contract (GBP) $13,131 £10,000 HSBC Bank USA 04/01/22 (35)

Foreign currency forward contract (GBP) £8,819 $11,521 Bank of America, N.A.

Foreign currency forward contract (GBP) $5,642 £4,220 HSBC Bank USA 04/08/22 86

Foreign currency forward contract (GBP) $6,122 £4,599 Bank of America, N.A.

Foreign currency forward contract (GBP) $12,612 £9,656 Bank of America, N.A.

07/07/22 (97)

Foreign currency forward contract (GBP) £10,000 $13,128 HSBC Bank USA 07/07/22 35

Foreign currency forward contract (SEK) 1,875kr $201 HSBC Bank USA 04/08/22 —

Foreign currency forward contract (SEK) $207 1,875kr HSBC Bank USA 04/08/22 6

Foreign currency forward contract (SEK) $213 1,976kr HSBC Bank USA 07/07/22 —

Total Foreign Currency Forward Contracts, March 31, 2022

_______________________________________________________________

* Fair value as a percentage of net assets.

2 unchanged sentences

All other equity and any equity-linked investments are non-income producing.

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.

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, 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, CDOR, SOFR, SONIA 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.

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, CDOR, SOFR, SONIA, BKBM 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 September 30, 2021 represented 221.9% of the Company’s net assets, are subject to legal restrictions on sales.

(2) All of the Company’s portfolio company investments (including joint venture investments), which as of March 31, 2022 represented 182.0% 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 en t 26.4% of tot al investments at fair value as of September 30, 2021.

Non-qualifying assets repres e nt 28.7% of tot al investments at fair value as of March 31, 2022.

Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.

2 unchanged sentences

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

March 31, 2022

(Amounts in thousands, except share amounts)

(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 nine months ended September 30, 2021 were as follows:

Transactions related to investments in non-controlled "Affiliate Investments" for the three months ended March 31, 2022 were as follows:

December 31, 2021

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) September 30, 2021 Value

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) March 31, 2022 Value

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

Advantage Insurance, Inc.

Preferred Stock (587,001 shares) $ 5,946,641 $ — $ (5,870,010) $ (76,631) $ — $ — $ 71,500

1888 Industrial Services, LLC (e)

First Lien Senior Secured Term Loan (LIBOR +5.0%, 6.0% Cash) (f)

$ — $ 419 $ — $ — $ (268) $ 151 $ 8

Revolver (LIBOR + 6.0%, 7.0% Cash) — 1,184 — — (39) 1,145 —

Warrants (7,546.76 units) — — — — — — —

— 1,603 — — (307) 1,296 8

Charming Charlie LLC (e)(f)

First Lien Senior Secured Term Loan (LIBOR + 12.0%, 13.0% Cash) — — — — — — —

First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash) — — — — — — —

First Lien Senior Secured Term Loan (20.0% Cash) — — — — — — —

Common Stock (34,923,249 shares) — — — — — — —

— — — — — — —

Eclipse Business Capital, LLC (e)

3 unchanged sentences

99,224 915 — — 25,499 125,638 4,200

Hylan Datacom & Electrical LLC (e)

First Lien Senior Secured Term Loan (SOFR + 8.0%, 9.0% Cash) — 3,514 — 101 302 3,917 33

Second Lien Senior Secured Term Loan (SOFR + 10.0%, 11.0% Cash) — 3,850 — — — 3,850 26

Common Stock (102,144 shares) — 5,219 — — — 5,219 —

— 12,583 — 101 302 12,986 59

Jocassee Partners LLC 9.1% Member Interest 37,601 5,000 — — (495) 42,106 —

4 unchanged sentences

6,197 — (6,197) — — — —

Kemmerer Operations, LLC (e)

First Lien Senior Secured Term Loan (15.0% PIK) — 2,543 — — — 2,543 40

Common Stock (6.78 shares) — 1,589 — — — 1,589 —

— 4,132 — — — 4,132 40

Security Holdings B.V (e)

4 unchanged sentences

47,108 — (47,108) — — — —

Sierra Senior Loan Strategy JV I LLC 89.01% Member Interest — 85,963 — — (3,053) 82,910 —

— 85,963 — — (3,053) 82,910 —

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

December 31, 2021

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) March 31, 2022 Value

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

Thompson Rivers LLC 16.0% Member Interest 84,438 — (4) — (8,771) 75,663 3,192

9 unchanged sentences

(e) The fair value of the investment was determined using significant unobservable inputs.

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

September 30, 2021

(f) Non-accrual investment.

(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 nine months ended September 30, 2021 in which the portfolio company is deemed to be a "Control Investment" of the Company were as follows:

Transactions as of and during the three months ended March 31, 2022 in which the portfolio company is deemed to be a "Control Investment" of the Company were as follows:

December 31, 2021

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) September 30, 2021

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) March 31, 2022

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

Black Angus Steakhouses, LLC (e)

First Lien Senior Secured Term Loan (10.0% PIK) (f)

$ — $ 9,628 $ — $ — $ — $ 9,628 $ —

First Lien Senior Secured Term Loan (LIBOR + 9.0%, 10.0% Cash) — 5,647 — — — 5,647 55

Common Stock (44.6 shares) — — — — — — —

— 15,275 — — — 15,275 55

JSC Tekers Holdings (e)

Preferred Stock (9,159,085 shares) — 6,197 — — (244) 5,953 —

Common Stock (3,201 shares) — — — — — — —

— 6,197 — — (244) 5,953 —

MVC Automotive Group GmbH (e)

5 unchanged sentences

7,564 — — — 135 7,699 (1,039)

Waccamaw River LLC 50% Member Interest — 4,500,000 (4,474,229) — (25,771) — —

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2022

(Amounts in thousands, except share amounts)

December 31, 2021

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) March 31, 2022

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

Security Holdings B.V (e)

Bridge Loan (5.0% PIK, Acquired 12/20, Due 05/22) $ — $ 5,727 $ — $ — $ — $ 5,727 $ 72

Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) — 9,598 — — — 9,598 78

Subordinated Senior Subordinated Note (5.0% PIK, Acquired 12/20, Due 05/22) — 14,567 — — (275) 14,292 160

Senior Unsecured Term Loan (6.0% Cash, 9.0% PIK, Acquired 04/21, Due 04/25) — 7,307 — — (158) 7,149 268

Common Stock Series A (17,100 shares, Acquired 02/22) — 560 — — (121) 439 —

Common Stock Series B (900 shares, Acquired 12/20) — 24,827 — — 16,277 41,104 —

— 62,586 — — 15,723 78,309 578

Total Control Investments $ 22,412 $ 84,058 $ — $ — $ 14,644 $ 121,114 $ (299)

4 unchanged sentences

(e) The fair value of the investment was determined using significant unobservable inputs.

(f) Non-accrual investment

(6) Some or all of the investment is or will be encumbered as security for the Company's $965.0 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").

1 unchanged sentence

(8) Debt investment includes interest rate floor feature.

(9) The interest rate on these loans is subject to 1 Month LIBOR, which as of September 30, 2021 was 0.08025%.

(10) The interest rate on these loans is subject to 2 Month LIBOR, which as of September 30, 2021 was 0.11138%.

(11) The interest rate on these loans is subject to 3 Month LIBOR, which as of September 30, 2021 was 0.13013%.

(12) The interest rate on these loans is subject to 6 Month LIBOR, which as of September 30, 2021 was 0.15850%.

(13) The interest rate on these loans is subject to 1 Month GBP LIBOR, which as of September 30, 2021 was 0.04750%.

(14) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of September 30, 2021 was 0.08188%.

(15) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of September 30, 2021 was 0.17463%.

(16) The interest rate on these loans is subject to 3 Month EURIBOR, which as of September 30, 2021 was -0.54500%.

(17) The interest rate on these loans is subject to 6 Month EURIBOR, which as of September 30, 2021 was -0.52800%.

(18) The interest rate on these loans is subject to 3 Month STIBOR, which as of September 30, 2021 was -0.09900%.

(19) The interest rate on these loans is subject to 1 Month BBSY, which as of September 30, 2021 was 0.01000%.

(20) The interest rate on these loans is subject to 3 Month BBSY, which as of September 30, 2021 was 0.01960%.

(21) The interest rate on these loans is subject to 3 Month CDOR, which as of September 30, 2021 was 0.44468%.

(22) The interest rate on these loans is subject to 6 Month SONIA, which as of September 30, 2021 was 0.16350%.

(23) The interest rate on these loans is subject to 6 Month SOFR, which as of September 30, 2021 was 0.05628%.

(9) The interest rate on these loans is subject to 1 Month LIBOR, which as of March 31, 2022 was 0.45200%.

(10) The interest rate on these loans is subject to 3 Month LIBOR, which as of March 31, 2022 was 0.96157%.

(11) The interest rate on these loans is subject to 6 Month LIBOR, which as of March 31, 2022 was 1.46986%.

(12) The interest rate on these loans is subject to 12 Month LIBOR, which as of March 31, 2022 was 2.10143%.

(13) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of March 31, 2022 was 1.03540%.

(14) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of March 31, 2022 was 1.47070%.

(15) The interest rate on these loans is subject to 1 Month EURIBOR, which as of March 31, 2022 was -0.53200%.

(16) The interest rate on these loans is subject to 3 Month EURIBOR, which as of March 31, 2022 was -0.45800%.

(17) The interest rate on these loans is subject to 6 Month EURIBOR, which as of March 31, 2022 was -0.36700%.

(18) The interest rate on these loans is subject to 1 Month SOFR, which as of March 31, 2022 was 0.30240%.

(19) The interest rate on these loans is subject to 3 Month SOFR, which as of March 31, 2022 was 0.67512%.

(20) The interest rate on these loans is subject to 6 Month SOFR, which as of March 31, 2022 was 1.07915%.

(21) The interest rate on these loans is subject to 3 Month SONIA, which as of March 31, 2022 was 0.91610%.

(22) The interest rate on these loans is subject to 6 Month SONIA, which as of March 31, 2022 was 1.19410%.

(23) The interest rate on these loans is subject to 1 Month BBSY, which as of March 31, 2022 was 0.01270%.

(24) The interest rate on these loans is subject to 3 Month BBSY, which as of March 31, 2022 was 0.23150%.

(25) The interest rate on these loans is subject to 3 Month CDOR, which as of March 31, 2022 was 1.26000%.

(26) The interest rate on these loans is subject to 3 Month STIBOR, which as of March 31, 2022 was 0.00057%.

(27) The interest rate on these loans is subject to 3 Month BKBM, which as of March 31, 2022 was 1.49000%.

(28) Non-accrual investment.

(25) Investment was purchased as part of the MVC Acquisition and is part of the Reference Portfolio for purposes of the Credit Support Agreement.

(29) Investment was purchased as part of the MVC Acquisition and is part of the MVC Reference Portfolio for purposes of the MVC Credit Support Agreement.

(30) In 2017, MVC 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’s sale of its equity investment in U.S.

3 unchanged sentences

This loan is still subject to indemnification adjustments.

(31) Investment was purchased as part of the Sierra Acquisition and is part of the Sierra Reference Portfolio for purposes of the Sierra Credit Support Agreement.

See accompanying notes.

2 unchanged sentences

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

10 unchanged sentences

7,568 7,486 7,429

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.

Acclime Holdings HK Limited

(0.2%)* (3) (7) (8) (10)

Wholesale First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 6.8% Cash, Acquired 11/20, Due 11/25) (18)

Business Services First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.0% Cash, Acquired 08/21, Due 07/27) 1,211 1,138 1,147

1,211 1,138 1,147

First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/20, Due 11/25) (12)

Accurus Aerospace Corporation (3.2%)* (7) (8) (11)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, 1.50% PIK, Acquired 10/18, Due 10/24) 24,874 24,684 24,016

24,874 24,684 24,016

ADB Safegate (0.7%)* (3) (8) (10)

Aerospace & Defense Second Lien Senior Secured Term Loan (LIBOR + 7.75%, 8.8% Cash, Acquired 08/21, Due 07/25) 5,500 5,091 5,106

5,500 5,091 5,106

Advantage Software Company (The), LLC (0.0%)* (7)

Advertising, Printing & Publishing Class A1 Partnership Units (8,717.76 units, Acquired 12/21) 280 280

Class A2 Partnership Units (2,248.46 units, Acquired 12/21) 72 72

Class B1 Partnership Units (8,717.76 units, Acquired 12/21) 9 9

Class B2 Partnership Units (2,248.46 units, Acquired 12/21) 2 2

Aftermath Bidco Corporation (1.3%)* (7) (8) (10)

1 unchanged sentence

9,425 9,299 9,303

Ahead DB Borrower, LLC.

Air Canada 2020-2 Class B Pass Through Trust (0.9%)* Airlines Structured Secured Note - Class B (9.0% Cash, Acquired 09/20, Due 10/25) 6,170 6,170 6,822

6,170 6,170 6,822

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

Air Comm Corporation, LLC (1.5%)* (7) (8) (10)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 06/21, Due 07/27) 11,540 11,265 11,280

11,540 11,265 11,280

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

AIT Worldwide Logistics Holdings, Inc.

Transportation Services Second Lien Senior Secured Term Loan (LIBOR + 7.75%, 8.5% Cash, Acquired 04/21, Due 04/29) (8) (10)

6,460 6,325 6,460

American Dental Partners, Inc.

Partnership Units (348.68 units, Acquired 04/21) 349 689

6,460 6,674 7,149

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

Alpine US Bidco LLC (2.4%)* (7) (8) (10)

Agricultural Products Second Lien Senior Secured Term Loan (LIBOR + 9.0%, 9.8% Cash, Acquired 05/21, Due 05/29) 18,157 17,642 17,975

18,157 17,642 17,975

American Scaffold, Inc.

Amtech LLC (0.5%)* (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 11/27) (9)

4,091 3,958 3,955

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

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 11/27) (10)

4,091 3,945 3,941

2 unchanged sentences

14,395 13,459 16,051

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

AnalytiChem Holding Gmbh (0.3%)* (3) (7) (8) (14)

Chemicals First Lien Senior Secured Term Loan (EURIBOR + 6.25%, 6.3% Cash, Acquired 11/21, Due 11/28) 2,801 2,580 2,576

2,801 2,580 2,576

3 unchanged sentences

13,528 13,355 13,284

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

AP Aristotle Holdings, LLC (0.2)* (7)

Oil Field Services Subordinated Term Loan (19.8% Cash, Acquired 12/21, Due 06/25) $ 1,883 $ 1,890 $ 1,854

1,883 1,890 1,854

Apex Bidco Limited (0.3%)* (3) (7)

3 unchanged sentences

2,252 2,133 2,248

GmbH (0.6%)* (3) (7)

Chemicals, Plastics, & Rubber First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, Acquired 09/21, Due 09/27) (8) (14)

4,656 4,717 4,552

Preferred Stock (13 shares, Acquired 09/21) 120 111

Common Stock (48 shares, Acquired 09/21) 12 11

4,656 4,849 4,674

Apus Bidco Limited (0.5%)* (3) (7) (8) (17)

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (SONIA + 5.5%, 5.5% Cash, Acquired 02/21, Due 03/28) 3,902 3,874 3,823

3,902 3,874 3,823

AQA Acquisition Holding, Inc.

(f/k/a SmartBear) (0.7%)* (7) (9) (12)

(2.7%)* (7) (8) (10)

High Tech Industries Second Lien Senior Secured Term Loan (LIBOR + 7.5%, 8.0% Cash, Acquired 03/21, Due 03/29) 20,000 19,510 20,000

20,000 19,510 20,000

Aquavista Watersides 2 LTD (1.0%)* (3) (7) (8) (17)

Transportation Services First Lien Senior Secured Term Loan (SONIA + 6.0%, 6.1% Cash, Acquired 12/21, Due 12/28) 6,042 5,696 5,766

Second Lien Senior Secured Term Loan (SONIA + 10.5% PIK, Acquired 12/21, Due 12/28) 1,510 1,446 1,465

Revolver (SONIA + 6.0%, 6.1% Cash, Acquired 12/21, Due 12/22) — (4) (5)

7,552 7,138 7,226

Arch Global Precision LLC (1.2%)* (7) (8) (10)

5 unchanged sentences

Argus Bidco Limited (0.5%)* (3) (7) (8)

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

High Tech Industries First Lien Senior Secured Term Loan (SONIA + 5.5%, 5.8% Cash, Acquired 12/20, Due 12/27) (16)

2,682 2,559 2,682

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2020

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

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 + 5.5%, 5.8% Cash, Acquired 05/21, Due 12/27) (10)

3,354 3,212 3,354

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

Armstrong Transport Group (Pele Buyer, LLC ) (0.5%)* (7) (8) (10)

Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 06/19, Due 06/24) 4,020 3,961 3,939

4,020 3,961 3,939

2 unchanged sentences

8,464 8,377 8,464

Astra Bidco Limited (0.7%)* (3) (7) (8) (16)

Healthcare First Lien Senior Secured Term Loan (SONIA + 5.75%, 5.8% Cash, Acquired 11/21, Due 11/28) 5,786 5,479 5,535

5,786 5,479 5,535

Auxi International (0.3%)* (3) (7) (8)

1 unchanged sentence

1,592 1,521 1,439

AVSC Holding Corp.

First Lien Senior Secured Term Loan (SONIA + 6.25%, 6.3% Cash, Acquired 04/21, Due 12/26) (17)

2,499 2,418 2,259

Avance Clinical Bidco Pty Ltd (0.8%)* (3) (7) (8) (20)

Healthcare First Lien Senior Secured Term Loan (BBSY + 5.5%, 6.0% Cash, Acquired 11/21, Due 11/27) 6,457 6,040 6,158

6,457 6,040 6,158

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

AVSC Holding Corp.

(1.6%)* Advertising First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, 0.25% PIK, Acquired 08/18, Due 03/25) (8) (10)

$ 4,867 $ 4,405 $ 4,458

First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, 1.0% PIK, Acquired 08/18, Due 10/26) (8) (10)

1 unchanged sentence

11,129 10,497 11,555

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

Azalea Buyer, Inc.

Technology First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 11/21, Due 11/27) (10)

4,606 4,496 4,494

Subordinated Term Loan (12.0% PIK, Acquired 11/21, Due 05/28) 1,260 1,235 1,234

Common Stock (192,307.7 shares, Acquired 11/21) 192 192

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 11/21, Due 11/27) (10)

5,866 5,914 5,910

Bariacum S.A.

(0.8%)* (3) (7) (8) (14)

Consumer Products First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 11/28) 6,482 6,236 6,244

6,482 6,236 6,244

BDP International, Inc.

2 unchanged sentences

14,849 14,643 14,626

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)

2 unchanged sentences

1,286 1,222 1,286

Beyond Risk Management, Inc.

(0.3%)* (7) (8) (10)

Other Financial First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.3% Cash, Acquired 10/21, Due 09/27) 2,427 2,336 2,327

2,427 2,336 2,327

Bidwax (1.0%)* (3) (7) (8) (14)

Non-durable Consumer Goods First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, Acquired 02/21, Due 02/28) 7,960 8,062 7,741

7,960 8,062 7,741

BigHand UK Bidco Limited (0.1%)* (3) (7) (8) (13)

High Tech Industries First Lien Senior Secured Term Loan (GBP LIBOR + 5.25%, 5.4% Cash, Acquired 01/21, Due 01/28) 909 880 878

Black Diamond Equipment Rentals LLC (1.5%)* (7) (25)

Equipment Rental Second Lien Loan (12.5% Cash, Acquired 12/20, Due 06/22) 10,000 10,000 10,000

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

Warrant (4.17 units, Acquired 12/20) 1,010 864

10,000 11,010 10,864

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

Bounteous, Inc.

(0.6%)* (7) (8) (10)

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

Technology First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 08/21, Due 08/27) 4,911 4,752 4,756

4,911 4,752 4,756

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

Brightline Trains Florida LLC (0.7%)* (7)

Transportation Senior Secured Note (8.0% Cash, Acquired 08/21, Due 01/28) 5,000 5,000 5,005

5,000 5,000 5,005

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 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)

Brightpay Limited (0.3%)* (3) (7) (8) (14)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 10/21, Due 10/28) 1,918 1,883 1,862

1,918 1,883 1,862

BrightSign LLC (1.9%)* (7)

Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 10/21, Due 10/27) (8) (10)

12,811 12,687 12,683

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

LLC units (1,107,492.71 units, Acquired 10/21) 1,107 1,135

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 10/21, Due 10/27) (8) (10)

12,811 13,781 13,805

British Airways 2020-1 Class B Pass Through Trust (0.1%)* Airlines Structured Secured Note - Class B (8.4% Cash, Acquired 11/20, Due 11/28) 810 810 916

Barings BDC, Inc.

1 unchanged sentence

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

British Engineering Services Holdco Limited (2.1%)* (3) (7) (8) (17)

Commercial Services & Supplies First Lien Senior Secured Term Loan (SONIA + 6.75%, 7.0% Cash, Acquired 12/20, Due 12/27) $ 15,530 $ 15,081 $ 15,406

Revolver (SONIA + 6.75%, 7.0% Cash, Acquired 12/20, Due 06/22) — (2) (5)

15,530 15,079 15,401

Brown Machine Group Holdings, LLC (0.9%)* (7) (8) (9)

Industrial Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 10/24) 6,634 6,587 6,634

6,634 6,587 6,634

Cadent, LLC (f/k/a Cross MediaWorks) (0.9%)* (7) (8) (9)

Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 09/18, Due 09/23) 6,913 6,888 6,913

6,913 6,888 6,913

CAi Software, LLC (1.2%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.25%, 7.3% Cash, Acquired 12/21, Due 12/28) 9,057 8,877 8,876

Revolver (LIBOR + 6.25%, 7.3% Cash, Acquired 12/21, Due 12/28) — (19) (19)

9,057 8,858 8,857

Canadian Orthodontic Partners Corp.(0.2%)* (3) (7) (8) (21)

Healthcare First Lien Senior Secured Term Loan (CDOR + 6.5%, 7.5% Cash, Acquired 06/21, Due 03/26) 1,640 1,697 1,625

1,640 1,697 1,625

Carlson Travel, Inc (1.2%)* Business Travel Management First Lien Senior Secured Note (8.5% Cash, Acquired 11/21, Due 11/26) 6,050 5,654 6,161

Common Stock (94,155 shares, Acquired 11/21) 1,655 3,084

6,050 7,309 9,245

Centralis Finco S.a.r.l.

1 unchanged sentence

Diversified Financial Services First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 05/20, Due 05/27) 807 739 807

Ceres Pharma NV (0.6%)* (3) (7) (8) (15)

Pharmaceuticals First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 10/21, Due 10/28) 4,556 4,444 4,355

4,556 4,444 4,355

Cineworld Group PLC

Leisure Products Super Senior Secured Term Loan (7.0% Cash, 8.3% PIK, Acquired 11/20, Due 05/24) 1,786 1,591 2,128

Super Senior Secured Term Loan (LIBOR + 8.25%, 9.3% Cash, Acquired 07/21, Due 05/24) (8) (11)

994 961 1,054

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) 102 244

9 unchanged sentences

Distributors First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/20, Due 01/25) (8) (10)

4,144 4,090 3,999

LLC Units (8,782 units, Acquired 01/20) 352 227

4,144 4,442 4,226

Coastal Marina Holdings, LLC (2.4%)* (7)

Other Financial Subordinated Term Loan (10.0% PIK, Acquired 11/21, Due 11/31) 17,608 15,965 15,966

LLC Units (547,591 units, Acquired 11/21) 1,643 1,643

17,608 17,608 17,609

Cobham Slip Rings SAS (0.6%)* (3) (7) (8) (10)

Diversified Manufacturing First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.4% Cash, Acquired 11/21, Due 11/28) 4,303 4,199 4,196

4,303 4,199 4,196

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Command Alkon (Project Potter Buyer, LLC) (1.9%)* (7)

Software First Lien Senior Secured Term Loan (LIBOR + 8.25%, 9.3% Cash, Acquired 04/20, Due 04/27) (8) (9)

$ 13,779 $ 13,290 $ 13,658

Class A Units (90.384 units, Acquired 04/20) 90 101

1 unchanged sentence

13,779 13,380 13,945

Confie Seguros Holding II Co.

Contabo Finco S.À R.L (0.8%)* (3) (7) (8) (16)

Internet Software & Services First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 11/21, Due 10/26) 5,949 5,819 5,830

5,949 5,819 5,830

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

Coyo Uprising GmbH (0.6%)* (3) (7)

First Lien Senior Secured Term Loan (EURIBOR + 6.5%, 6.5% Cash, Acquired 09/21, Due 09/28) (8) (14)

4,062 4,050 3,938

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

Class A Units (440.0 units, Acquired 09/21) 205 587

Class B Units (191.0 units, Acquired 09/21) 446 252

4,062 4,701 4,777

Crash Champions (1.9%)* (7) (8) (10)

Automotive First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 05/21, Due 08/25) 14,567 14,040 13,968

14,567 14,040 13,968

CSL DualCom (0.2%)* (3) (7) (8) (13)

5 unchanged sentences

49,255 40,781 30,046

CVL 3 (1.3%)* (3) (7) (8)

Capital Equipment First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) (14)

5,913 5,724 5,766

First Lien Senior Secured Term Loan (SOFR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) (22)

3,382 3,298 3,298

6-Month Bridge Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 06/22) (14)

10,091 9,794 9,852

CW Group Holdings, LLC (0.4%)* (7)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 01/21, Due 01/27) (8) (10)

2,817 2,762 2,774

LLC Units (161,290.32 units, Acquired 01/21) 161 112

2,817 2,923 2,886

Dart Buyer, Inc.

2 unchanged sentences

12,217 12,047 11,734

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

DecksDirect, LLC (0.1%)* (7)

Building Materials First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 12/21, Due 12/26) (8) (9)

Revolver (LIBOR + 6.0%, 7.0% Cash, Acquired 12/21, Due 12/26) (8) (10)

LLC Units (1,280.8 units, Acquired 12/21) 55 55

Discovery Education, Inc.

6 unchanged sentences

6,880 6,841 6,715

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.

Dragon Bidco (0.4%)* (3) (7) (8) (15)

Technology First Lien Senior Secured Term Loan (EURIBOR + 6.75%, 6.8% Cash, Acquired 04/21, Due 04/28) 2,729 2,812 2,676

2,729 2,812 2,676

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

DreamStart Bidco SAS (d/b/a SmartTrade) (0.3%)* (3) (7) (8) (15)

Diversified Financial Services First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 03/20, Due 03/27) 2,418 2,295 2,385

2,418 2,295 2,385

2 unchanged sentences

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

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

Dune Group (0.2%)* (3) (7) (8)

Health Care Equipment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.0% Cash, Acquired 09/21, Due 09/28) (10)

$ 1,230 $ 1,205 $ 1,202

First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 09/21, Due 09/28) (14)

1,361 1,310 1,315

Dwyer Instruments, Inc.

(0.6%)* (7) (8) (10)

First Lien Senior Secured Term Loan (LIBOR + 5.50%, 6.3% Cash, Acquired 07/21, Due 07/27) 4,563 4,452 4,516

4,563 4,452 4,516

Echo Global Logistics, Inc.

Air Transportation Second Lien Senior Secured Term Loan (LIBOR + 7.25%, 8.0% Cash, Acquired 11/21, Due 11/29) (8) (10)

14,469 14,210 14,216

Partnership Equity (530.92 units, Acquired 11/21) 531 531

14,469 14,741 14,747

Ellkay, LLC (0.7%)* (7) (8) (10)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 09/21, Due 09/27) 4,988 4,892 4,898

4,988 4,892 4,898

EMI Porta Holdco LLC (1.2%)* (7) (8) (10)

Diversified Manufacturing First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) 9,576 9,141 9,136

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) — (59) (59)

9,576 9,082 9,077

Entact Environmental Services, Inc.

(0.8%)* (7) (8) (10)

Environmental Industries First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 02/21, Due 12/25) 5,705 5,657 5,631

5,705 5,657 5,631

EPS NASS Parent, Inc.

(0.8%)* (7) (8) (10)

Electrical Components & Equipment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 04/21, Due 04/28) 5,813 5,695 5,715

5,813 5,695 5,715

Eshipping, LLC (0.8%)* (7) (8)

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 11/27) (9)

5,965 5,799 5,795

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 12/27) (10)

6,220 6,025 6,020

F24 (Stairway BidCo Gmbh) (0.2%)* (3) (7) (8) (14)

1 unchanged sentence

1,621 1,649 1,621

Ferrellgas L.P.

(0.4%)* (3) (7)

Oil & Gas Equipment & Services OpCo Preferred Units (2,886 units, Acquired 03/21) 2,799 3,146

Fineline Technologies, Inc.

(0.2%)* (7) (8) (10)

Consumer Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 02/21, Due 02/28) 1,306 1,283 1,306

1,306 1,283 1,306

FitzMark Buyer, LLC (0.6%)* (7) (8) (10)

1 unchanged sentence

4,269 4,197 4,184

Foundation Risk Partners, Corp.

Flexential Issuer, LLC (2.1%)* Information Technology Structured Secured Note - Class C (6.9% Cash, Acquired 11/21, Due 11/51) 16,000 14,817 15,609

16,000 14,817 15,609

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

FragilePak LLC (0.7%)* (7)

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 05/21, Due 05/27) (8) (9)

4,697 4,519 4,541

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

Partnership Units (937.5 units, Acquired 05/21) 938 926

4,697 5,457 5,467

Front Line Power Construction LLC (0.5%)* Construction Machinery First Lien Senior Secured Term Loan (LIBOR + 12.5%, 13.5% Cash, Acquired 11/21, Due 11/28) (7) (8) (10)

4,000 3,872 3,880

Common Stock (50,848 shares, Acquired 11/21) 130 111

4,000 4,002 3,991

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

FSS Buyer LLC (0.9%)* (7)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 08/21, Due 08/28) (8) (10)

$ 6,913 $ 6,773 $ 6,790

LP Interest (1,160.9 units, Acquired 08/21) 12 30

LP Units (5,104.32 units, Acquired 08/21) 51 132

6,913 6,836 6,952

GTM Intermediate Holdings, Inc.

1 unchanged sentence

Medical Equipment Manufacturer Second Lien Loan (11.0% Cash, 1.0% PIK, Acquired 12/20, Due 12/24) 11,500 11,449 11,500

Common Stock (2 shares, Acquired 12/20) 1,078,778 1,078,778

Series A Preferred Units (1,434,472.41 units) 2,166 2,290

Series C Preferred Units (715,649.59 units) 1,081 1,184

11,500 14,696 14,974

1 unchanged sentence

Oil & Gas Exploration & Production First Lien Senior Secured Term Loan (LIBOR + 6.75%, 7.8% Cash, Acquired 11/21, Due 08/26) 832 799 774

1,048,305 944,246 788,105

Hawaiian Airlines 2020-1 Class B Pass Through Certificates (1.0%)* Airlines Structured Secured Note - Class B (11.3% Cash, Acquired 08/20, Due 09/25) 6,093 6,093 7,213

6,093 6,093 7,213

Heartland Veterinary Partners, LLC (1.2%)* (7)

Healthcare Subordinated Term Loan (11.0% PIK, Acquired 11/21, Due 11/28) 9,343 9,096 9,093

9,343 9,096 9,093

Heartland, LLC (1.9%)* (7) (8) (10)

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

Business Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 08/19, Due 08/25) 14,075 13,976 13,794

14,075 13,976 13,794

Heavy Construction Systems Specialists, LLC (1.0%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 11/21, Due 11/27) 7,368 7,199 7,221

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 11/21, Due 11/27) — (54) (53)

7,368 7,145 7,168

Heilbron (f/k/a Sucsez (Bolt Bidco B.V.)) (1.2%)* (3) (7) (8) (15)

1 unchanged sentence

8,789 9,380 8,612

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

Highpoint Global LLC (0.7%)* (7) (25)

1 unchanged sentence

5,416 5,395 5,416

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

Home Care Assistance, LLC (0.5%)* (7) (8) (10)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 03/21, Due 03/27) 3,830 3,762 3,753

3,830 3,762 3,753

5 unchanged sentences

13,437 13,189 13,137

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.

4 unchanged sentences

Electronic Instruments & Components First Lien Senior Secured Term Loan (LIBOR + 7.0%, 8.0% Cash, Acquired 11/19, Due 11/23) (10)

8,126 8,085 6,603

Warrant (68,950 units, Acquired 11/19) — —

8,126 8,085 6,603

IM Square (0.9%)* (3) (7) (8) (15)

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 05/21, Due 04/28) 7,051 7,232 6,938

7,051 7,232 6,938

Barings BDC, Inc.

1 unchanged sentence

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

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.

Infoniqa Holdings GmbH (1.2%)* (3) (7) (8) (14)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 11/21, Due 11/28) $ 9,243 $ 8,947 $ 8,989

9,243 8,947 8,989

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

Innovad Group II BV (0.8%)* (3) (7) (8) (14)

Beverage, Food & Tobacco First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 04/21, Due 04/28) 6,256 6,321 5,876

6,256 6,321 5,876

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

INOS 19-090 GmbH (0.7%)* (3) (7) (8) (14)

Aerospace & Defense First Lien Senior Secured Term Loan (EURIBOR + 6.13%, 6.1% Cash, Acquired 12/20, Due 12/27) 5,271 5,495 5,263

5,271 5,495 5,263

2 unchanged sentences

6,737 6,639 6,407

ITI Intermodal, Inc.

(0.1%)* (7) (8)

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (9)

Revolver (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (10)

Jade Bidco Limited (Jane's)

2 unchanged sentences

2,315 2,257 2,315

First Lien Senior Secured Term Loan (EURIBOR + 4.5%, 4.5% Cash, 2.0% PIK, Acquired 11/19, Due 12/26) (19)

Jaguar Merger Sub Inc.

(0.3%)* (7) (8) (10)

Other Financial First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 09/24) 2,543 2,487 2,486

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 09/24) (6) (6)

2,543 2,481 2,480

1 unchanged sentence

(0.4%)* (7) (25)

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

Engineering & Construction Management First Lien Loan (12.0% Cash, Acquired 12/20, Due 06/24) 2,650 2,650 2,650

2,650 2,650 2,650

1 unchanged sentence

4,165 4,165 4,805

JF Acquisition, LLC (0.5%)* (7) (8) (10)

Automotive First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 05/21, Due 07/24) 3,866 3,763 3,711

3,866 3,763 3,711

Kano Laboratories LLC (1.2%)* (7)

Chemicals, Plastics & Rubber First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 11/20, Due 11/26) (8) (11)

Partnership Equity (227.2 units, Acquired 11/20) 227,198 227,200

9,002 8,773 8,728

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

Partnership Equity (203.2 units, Acquired 11/20) 203 205

9,002 8,976 8,933

3 unchanged sentences

7,225 7,125 7,080

Kid Distro Holdings, LLC (1.3%)* (7)

Media & Entertainment First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 10/21, Due 10/27) (8) (10)

9,362 9,168 9,174

Partnership Equity (637,677.11 units, Acquired 10/21) 638 638

9,362 9,806 9,812

Kona Buyer, LLC (1.2%)* (7) (8) (10)

1 unchanged sentence

8,994 8,785 8,994

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

LAF International (0.2%)* (3) (7) (8) (15)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 03/21, Due 03/28) 1,478 1,543 1,446

1,478 1,543 1,446

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)

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Lambir Bidco Limited (0.9%)* (3) (7)

Healthcare First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 12/21, Due 12/28) (8) (14)

$ 5,017 $ 4,770 $ 4,810

Second Lien Senior Secured Term Loan (12.0% PIK, Acquired 12/21, Due 06/29) 1,417 1,363 1,375

Revolver (EURIBOR + 6.0%, 6.0% Cash, Acquired 12/21, Due 12/24) (8) (14)

6,748 6,425 6,480

Learfield Communications, LLC (1.1%)* Broadcasting First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 08/20, Due 12/23) (8) (9)

First Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.0% Cash, 10.2% PIK, Acquired 08/20, Due 12/23) (10)

2 unchanged sentences

Legal Solutions Holdings (0.8%)* (7) (24) (25)

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

Business Services Senior Subordinated Loan (16.0% PIK, Acquired 12/20, Due 03/22) 11,836 10,129 5,918

11,836 10,129 5,918

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

LivTech Purchaser, Inc.

(0.1%)* (7) (8) (10)

Business Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/21, Due 12/25) 918 908 910

Marmoutier Holding B.V.

(0.3%)* (3) (7) (8) (14)

Consumer Products First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 12/21, Due 12/28) 1,944 1,872 1,880

Revolver (EURIBOR + 5.0%, 5.0% Cash, Acquired 12/21, Due 06/27) — (4) (4)

1,944 1,868 1,876

MC Group Ventures Corporation (0.6%)* (7)

Business Services First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 07/21, Due 06/27) (8) (10)

3,687 3,598 3,656

Partnership Units (746.66 units, Acquired 06/21) 747 761

3,687 4,345 4,417

Media Recovery, Inc.

2 unchanged sentences

2,933 2,892 2,933

First Lien Senior Secured Term Loan (GBP LIBOR + 6.0%, 7.0% Cash, Acquired 12/20, Due 11/25) (12)

4,442 4,303 4,442

7,375 7,195 7,375

Medical Solutions Parent Holdings, Inc.

(0.6%)* (8) (10)

Healthcare Second Lien Senior Secured Term Loan (LIBOR + 7.0%, 7.5% Cash, Acquired 11/21, Due 11/29) 4,421 4,377 4,362

4,421 4,377 4,362

MNS Buyer, Inc.

Construction & Building First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 08/21, Due 08/27) (8) (9)

Partnership Units (76.92 Units, Acquired 08/21) 77 78

Modern Star Holdings Bidco Pty Limited.

2 unchanged sentences

8,368 8,281 8,299

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2020

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

MSG National Properties (0.3%)* (3) (7) (8) (10)

8 unchanged sentences

7,462 7,288 7,313

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

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Narda Acquisitionco., Inc.

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) (8) (10)

$ 5,680 $ 5,581 $ 5,580

Revolver (LIBOR + 5.25%, 6.3% Cash, Acquired 12/21, Due 12/27) (8) (10)

Class A Preferred Stock (4,587.38 shares, Acquired 12/21) 459 459

Class B Common Stock (509.71 shares, Acquired 12/21) 51 51

5,680 6,068 6,067

Navia Benefit Solutions, Inc.

(0.4%)* (7) (8) (10)

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 02/21, Due 02/27) 2,727 2,668 2,703

2,727 2,668 2,703

Nexus Underwriting Management Limited (0.2%)* (3) (7) (8) (17)

Other Financial First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 12/21, Due 10/28) 1,691 1,620 1,630

First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 12/21, Due 04/22) 103 102 101

1,794 1,722 1,731

NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (0.6%)* (7) (8) (9)

1 unchanged sentence

4,753 4,734 4,677

Northstar Recycling, LLC (0.3%)* (7) (8) (10)

Environmental Industries First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 10/21, Due 09/27) 2,500 2,452 2,450

2,500 2,452 2,450

OA Buyer, Inc.

Healthcare First Lien Senior Secured Term Loan (LIBOR + 6.0%, 6.8% Cash, Acquired 12/21, Due 12/28) (8) (10)

8,501 8,331 8,331

Revolver (LIBOR + 6.0%, 6.8% Cash, Acquired 12/21, Due 12/28) (8) (10)

Partnership Units (210,920.11 units, Acquired 12/21) 211 211

8,501 8,515 8,515

Odeon Cinemas Group Limited (0.5%)* (3) (7)

Hotel, Gaming, & Leisure First Lien Senior Secured Term Loan (10.8% Cash, Acquired 02/21, Due 08/23) 3,954 4,055 4,033

3,954 4,055 4,033

(0.4%)* (3) (7) (8) (14)

Containers & Glass Products First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) 2,916 2,997 2,843

2,916 2,997 2,843

Omni Intermediate Holdings, LLC (1.5%)* (7) (8) (9)

5 unchanged sentences

2,313 2,282 2,267

Oracle Vision Bidco Limited (0.4%)* (3) (7) (8) (17)

Healthcare First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 06/21, Due 05/28) 3,100 3,141 3,028

3,100 3,141 3,028

Origin Bidco Limited (0.1%)* (3) (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 06/21, Due 06/28) (10)

First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) (14)

OSP Hamilton Purchaser, LLC (0.3%)* (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 12/21, Due 12/27) (9)

2,281 2,235 2,235

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 12/21, Due 12/27) (10)

2,281 2,231 2,231

Pacific Health Supplies Bidco Pty Limited (1.1%)* (3) (7) (8) (20)

1 unchanged sentence

8,779 8,730 8,529

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Pare SAS (SAS Maurice MARLE) (0.6%)* (3) (7) (14)

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

Health Care Equipment First Lien Senior Secured Term Loan (EURIBOR + 6.75%, 6.8% Cash, Acquired 12/19, Due 12/26) $ 4,638 $ 4,478 $ 4,638

4,638 4,478 4,638

5 unchanged sentences

6,980 6,702 6,659

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

PDQ.Com Corporation (1.2%)* (7)

Business Equipment & Services First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 08/21, Due 08/27) (8) (10)

9,062 8,710 8,707

Playtika Holding Corp.

Class A-2 Partnership Units (26.32 units, Acquired 08/21) 29 29

9,062 8,739 8,736

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

Permaconn Bidco Ltd (2.0%)* (3) (7) (8) (19)

Tele-communications First Lien Senior Secured Term Loan (BBSY + 6.5%, 6.5% Cash, Acquired 12/21, Due 12/27) 15,012 14,386 14,599

15,012 14,386 14,599

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

Polara Enterprises, LLC (0.6%)* (7)

Capital Equipment First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

4,243 4,159 4,158

Revolver (LIBOR + 4.75%, 5.8% Cash, Acquired 12/21, Due 12/27) (8) (10)

Partnership Units (3,820.44 units, Acquired 12/21) 382 382

4,243 4,530 4,529

Policy Services Company, LLC (5.9%)* (7)

Property & Casualty Insurance First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, 4.0% PIK, Acquired 12/21, Due 06/26) (8) (10)

45,831 44,018 44,008

Warrants - Class A (28,260 units, Acquired 12/21) — —

Warrants - Class B (9,537 units, Acquired 12/21) — —

Warrants - Class CC (980 units, Acquired 12/21) — —

Warrants - Class D (2,520 units, Acquired 12/21) — —

45,831 44,018 44,008

Premium Franchise Brands, LLC (2.0%)* (7) (8) (10)

1 unchanged sentence

14,853 14,597 14,556

Premium Invest (0.5%)* (3) (7) (8) (14)

Brokerage, Asset Managers & Exchanges First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 06/21, Due 06/28) 4,094 4,113 4,010

4,094 4,113 4,010

Preqin MC Limited (0.4%)* (3) (7) (8) (23)

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (SOFR + 5.5%, 5.5% Cash, Acquired 08/21, Due 07/28) 2,789 2,695 2,764

2,789 2,695 2,764

Process Equipment, Inc.

6 unchanged sentences

1,836 1,833 1,809

PSC UK Pty Ltd.

Protego Bidco B.V.

(0.5%)* (3) (7) (8) (14)

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

Aerospace & Defense First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 03/21, Due 03/27) 2,227 2,269 2,195

First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 03/21, Due 03/28) 1,548 1,561 1,495

3,775 3,830 3,690

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)

QPE7 SPV1 BidCo Pty Ltd (0.2%)* (3) (7) (8) (20)

Consumer Cyclical First Lien Senior Secured Term Loan (BBSY + 5.5%, 6.0% Cash, Acquired 09/21, Due 09/26) 1,632 1,564 1,605

1,632 1,564 1,605

Questel Unite (0.9%)* (3) (7) (8) (10)

Business Services First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.8% Cash, Acquired 12/20, Due 12/27) 6,892 6,802 6,851

6,892 6,802 6,851

2 unchanged sentences

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

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 08/20, Due 08/26) (8) (10)

$ 11,648 $ 11,460 $ 11,648

Partnership Equity (187,235 units, Acquired 03/21) 187 150

11,648 11,647 11,798

Renovation Parent Holdings, LLC

Home Furnishings First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 11/21, Due 11/27) (8) (11)

4,854 4,735 4,733

Partnership Equity (197,368.42 units, Acquired 11/21) 197 203

4,854 4,932 4,936

REP SEKO MERGER SUB LLC

2 unchanged sentences

7,614 7,416 7,478

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

Resonetics, LLC (0.5%)* (7) (8) (10)

Health Care Equipment Second Lien Senior Secured Term Loan (LIBOR + 7.0%, 7.8% Cash, Acquired 04/21, Due 04/29) 4,011 3,934 3,930

4,011 3,934 3,930

Series 2019-6A

Reward Gateway (UK) Ltd (0.4%)* (3) (7) (8) (17)

Precious Metals & Minerals First Lien Senior Secured Term Loan (SONIA + 6.75%, 6.8% Cash, Acquired 08/21, Due 06/28) 2,869 2,807 2,776

2,869 2,807 2,776

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

Riedel Beheer B.V.

(0.3%)* (3) (7) (8) (14)

Food & Beverage First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) 1,899 1,835 1,843

Revolver (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 06/28) — (5) (5)

Super Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/21, Due 12/28) 230 222 223

2,129 2,052 2,061

RPX Corporation (1.0%)* (7) (8) (10)

Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 10/20, Due 10/25) 7,612 7,426 7,455

7,612 7,426 7,455

Ruffalo Noel Levitz, LLC

5 unchanged sentences

12,026 11,798 11,755

Common Stock (424.1 units, Acquired 12/20) 424,088 424,090

Preferred Stock (372.1 shares, Acquired 12/20) 372 510

12,026 12,170 12,265

2 unchanged sentences

Research & Consulting Services First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 12/21, Due 12/28) 1,748 1,705 1,705

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 12/21, Due 12/28) — (7) (7)

1,748 1,698 1,698

8 unchanged sentences

7,009 6,869 6,771

SMA Holdings, Inc.

Smartling, Inc.

(2.2%)* (7) (8) (10)

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

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 11/27) 16,471 16,102 16,094

Revolver (LIBOR + 5.75%, 6.8% Cash, Acquired 11/21, Due 11/27) — (23) (24)

16,471 16,079 16,070

4 unchanged sentences

4,593 4,559 4,547

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

SN BUYER, LLC (2.5%)* (7) (8) (9)

4 unchanged sentences

10,346 10,179 10,346

SPT Acquico Limited (0.1%)* (3) (7) (8) (10)

High Tech Industries First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 01/21, Due 12/27) 658 644 658

SSCP Pegasus Midco Limited (0.4%)* (3) (7) (8) (12)

1 unchanged sentence

2,754 2,488 2,722

Starnmeer B.V.

(1.0%)* (3) (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.4%, 6.9% Cash, Acquired 10/21, Due 04/27) 7,500 7,391 7,388

7,500 7,391 7,388

Superjet Buyer, LLC (3.0%)* (7) (8) (10)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) 23,175 22,711 22,711

Revolver (LIBOR + 5.75%, 6.5% Cash, Acquired 12/21, Due 12/27) — (37) (37)

23,175 22,674 22,674

Syniverse Holdings, Inc.

2 unchanged sentences

17,314 16,493 17,192

Team Health Holdings, Inc.

Syntax Systems Ltd (0.3%)* (3) (7) (8) (9)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 10/28) 2,056 2,018 2,016

Revolver (LIBOR + 5.5%, 6.3% Cash, Acquired 11/21, Due 10/26) 442 432 432

2,498 2,450 2,448

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

TA SL Cayman Aggregator Corp.

Technology Subordinated Term Loan (8.8% PIK, Acquired 07/21, Due 07/28) 1,995 1,957 1,960

Common Stock (1,227.79 shares, Acquired 07/21) 50 65

1,995 2,007 2,025

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2020

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

(1.1%)* (3) (7) (8) (14)

Technology First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 11/28) 8,726 8,428 8,441

Revolver (EURIBOR + 5.5%, 5.5% Cash, Acquired 11/21, Due 05/28) 108 97 97

8,834 8,525 8,538

Tencarva Machinery Company, LLC (0.7%)* (7) (8) (10)

Capital Equipment First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) 5,486 5,375 5,374

Revolver (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) — (20) (20)

5,486 5,355 5,354

The Caprock Group, Inc.

(aka TA/TCG Holdings, LLC) (0.5%)* (7)

Brokerage, Asset Managers & Exchanges First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 10/21, Due 12/27) (8) (10)

Revolver (LIBOR + 4.25%, 5.3% Cash, Acquired 10/21, Due 12/27) (8) (10)

Subordinated Term Loan (7.8% PIK, Acquired 10/21, Due 10/28) 3,333 3,268 3,267

4,180 4,030 4,029

The Hilb Group, LLC

1 unchanged sentence

Insurance Brokerage First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 12/19, Due 12/26) 20,279 19,880 19,874

$ 11,667,719 $ 11,413,365 $ 11,541,707

First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 12/19, Due 12/26) 55 (1) (2)

20,334 19,879 19,872

15,269,720 14,788,299 14,915,010

Total Safety U.S.

(0.9%)* (8) (11)

Diversified Support Services First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/19, Due 08/25) 6,583 6,393 6,482

6,583 6,393 6,482

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Transit Technologies LLC

5 unchanged sentences

11,330 11,260 11,160

Trident Maritime Systems, Inc.

(2.0%)* (7) (8) (10)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 02/21, Due 02/27) 14,888 14,665 14,888

14,888 14,665 14,888

Truck-Lite Co., LLC (2.0%)* (7) (8) (10)

3 unchanged sentences

Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/18, Due 09/23) (8) (10)

11,988 11,777 11,778

Class A LLC Units (440.97 units, Acquired 09/18) 481 412

11,988 12,258 12,190

Tuf-Tug, Inc.

Turbo Buyer, Inc.

(1.1%)* (7) (8) (10)

Safety Equipment Manufacturer Common Stock (24.6 shares, Acquired 12/20) 385,047 $ 385,047

Finance Companies First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 11/21, Due 12/25) 8,430 8,226 8,220

8,430 8,226 8,220

2 unchanged sentences

8,697 8,384 8,627

Turnberry Solutions, Inc.

(0.6%)* (7) (8) (10)

Consumer Cyclical First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 07/21, Due 09/26) 4,500 4,406 4,423

4,500 4,406 4,423

Gas & Electric, Inc.

3 unchanged sentences

4,770 1,785 1,785

4,770,719 1,785,250 1,785,250

Silica Company (0.2%)* (3) (8) (9)

2 unchanged sentences

UKFast Leaders Limited (1.6%)* (3) (7) (8) (16)

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

Technology First Lien Senior Secured Term Loan (SONIA + 7.0%, 7.1% Cash, Acquired 09/20, Due 9/27) 12,312 11,399 12,090

12,312 11,399 12,090

6 unchanged sentences

1,706 1,706 1,673

First Lien Senior Secured Term Loan (LIBOR + 5.25%, 5.5% Cash, Acquired 02/21, Due 09/27) (10)

3,518 3,456 3,451

5,224 5,162 5,124

Validity, Inc.

2 unchanged sentences

4,783 4,687 4,764

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)

VistaJet Pass Through Trust 2021-1B (0.7%)* Airlines Structured Secured Note - Class B (6.3% Cash, Acquired 11/21, Due 02/29) 5,000 5,000 4,905

5,000 5,000 4,905

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)

Vital Buyer, LLC (1.1%)* (7)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 06/21, Due 06/28) (8) (10)

7,802 7,656 7,676

Partnership Units (16,442.9 units, Acquired 06/21) 164 171

7,802 7,820 7,847

2 unchanged sentences

December 31, 2021

(Amounts in thousands, except share amounts)

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

W2O Holdings, Inc.

(0.3%)* (7) (8) (10)

Healthcare Technology First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 10/20, Due 06/25) $ 2,152 $ 2,090 $ 2,152

2,152 2,090 2,152

Woodland Foods, LLC (1.8%)* (7)

Food & Beverage First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) (8) (10)

11,512 11,285 11,282

Revolver (LIBOR + 5.5%, 6.5% Cash, Acquired 12/21, Due 12/27) (8) (10)

Common Stock (1,663,307.18 shares, Acquired 12/21) 1,663 1,663

11,684 13,076 13,072

World 50, Inc.

4 unchanged sentences

Subtotal Non–Control / Non–Affiliate Investments (200.9%) 1,518,708 1,494,028 1,490,115

Affiliate Investment:

Advantage Insurance, Inc.

Affiliate Investments:

Eclipse Business Capital, LLC (13.4%)* (7)

Banking, Finance, Insurance, & Real Estate

Second Lien Senior Secured Term Loan (7.5% Cash, Acquired 07/21, Due 07/28) 4,545 4,502 4,738

Revolver (LIBOR + 7.25%, Acquired 07/21, Due 07/28) (10)

1,818 1,691 1,818

Banking, Finance, Insurance, & Real Estate Preferred Stock (587,001 shares, Acquired 12/20) 5,946,641 5,946,641

LLC Units (89,447,396 units, Acquired 07/21) 89,850 92,668

6,363 96,043 99,224

5 unchanged sentences

Common Stock (3,201 shares, Acquired 12/20) — —

4,753,000 4,753,000

Security Holdings B.V.

2 unchanged sentences

Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) 9,525 9,525 9,525

Senior Unsecured Term Loan (6.0% Cash, 9.0% PIK, Acquired 04/21, Due 04/25) 7,307 7,639 7,307

Common Stock (900 shares, Acquired 12/20) 21,264 24,825

3 unchanged sentences

79,414 84,438

Waccamaw River LLC (1.8%)* (3)

Investment Funds & Vehicles 20% Member Interest, Acquired 02/21 13,720 13,501

13,720 13,501

Subtotal Affiliate Investments (38.8%) 28,646 267,967 288,069

1 unchanged sentence

MVC Automotive Group Gmbh (2.0%)* (3) (7) (25)

Other Diversified Financial Services Bridge Loan (6.0% Cash, Acquired 12/20, Due 12/21) 7,149,166 7,149,166 7,149,166

Automotive Bridge Loan (6.0% Cash, Acquired 12/20, Due 06/26) 7,149 7,149 7,149

Common Equity Interest (18,000 shares, Acquired 12/20) 9,553 7,699

3 unchanged sentences

Limited Partnership Interest 8,899 7,376

9,124,262 9,124,262

Subtotal Control Investments (3.0%) 7,149 25,826 22,412

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, 2021 (242.7%)* $ 1,554,503 $ 1,787,821 $ 1,800,596

2 unchanged sentences

December 31, 2021

(Amounts in thousands, except share amounts)

Derivative Instruments

3 unchanged sentences

Total Credit Support Agreement, December 31, 2021

(a) The Credit Support Agreement covers all of the investments acquired by the Company from MVC in connection with the MVC Acquisition (as defined in “Note 1 – Organization, Business and Basis of Presentation”) 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.

(a) The MVC Credit Support Agreement covers all of the investments acquired by the Company from MVC in connection with the MVC Acquisition (as defined in “Note 1 – Organization, Business and Basis of Presentation”) 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 MVC Reference Portfolio.

Each investment that is included in the MVC Reference Portfolio is denoted in the above Schedule of Investments with footnote (25).

(b) The Company and Barings entered into a Credit Support Agreement pursuant to which Barings 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 or (2) the date on which the entire MVC Reference Portfolio has been realized or written off.

(d) See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the MVC 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)

Description Notional Amount to be Purchased Notional Amount to be Sold Counterparty Settlement Date Unrealized Appreciation (Depreciation)

Foreign currency forward contract (AUD) A$31,601 $22,850 Bank of America, N.A.

01/06/22 $ 126

Foreign currency forward contract (AUD) A$2,099 $1,508 HSBC Bank USA 01/06/22 18

Foreign currency forward contract (AUD) $20,727 A$28,700 Citibank N.A.

01/06/22 (139)

Foreign currency forward contract (AUD) $3,580 A$5,000 HSBC Bank USA 04/08/22 (55)

Foreign currency forward contract (AUD) $18,247 A$25,386 Bank of America, N.A.

04/08/22 (215)

Foreign currency forward contract (CAD) C$3,230 $2,528 Bank of America, N.A.

Foreign currency forward contract (CAD) C$3,000 $2,425 HSBC Bank USA 01/06/22 (50)

Foreign currency forward contract (CAD) $4,881 C$6,230 HSBC Bank USA 01/06/22 (51)

Foreign currency forward contract (CAD) $2,506 C$3,203 Bank of America, N.A.

04/08/22 (29)

Foreign currency forward contract (DKK) 2,143kr.

$326 Bank of America, N.A.

Foreign currency forward contract (DKK) $335 2,143kr.

Bank of America, N.A.

Foreign currency forward contract (DKK) $323 2,116kr.

Bank of America, N.A.

Foreign currency forward contract (EUR) €52,583 $59,524 Bank of America, N.A.

Foreign currency forward contract (EUR) €5,020 $5,701 HSBC Bank USA 04/08/22 18

Foreign currency forward contract (EUR) $24,722 €21,500 Bank of America, N.A.

Foreign currency forward contract (EUR) $14,563 €12,900 HSBC Bank USA 01/06/22 (108)

Foreign currency forward contract (EUR) $20,655 €18,183 BNP Paribas SA 01/06/22 (23)

Foreign currency forward contract (EUR) $60,413 €53,265 Bank of America, N.A.

04/08/22 (282)

Foreign currency forward contract (EUR) $1,130 €1,000 HSBC Bank USA 04/08/22 (10)

Foreign currency forward contract (EUR) $8,514 €7,500 BNP Paribas SA 04/08/22 (33)

Foreign currency forward contract (GBP) £9,900 $13,220 Bank of America, N.A.

Foreign currency forward contract (GBP) $13,349 £9,900 BNP Paribas SA 01/06/22 (60)

Foreign currency forward contract (GBP) $6,122 £4,599 Bank of America, N.A.

04/08/22 (104)

Foreign currency forward contract (SEK) 1,792kr $198 HSBC Bank USA 01/07/22 —

Foreign currency forward contract (SEK) $204 1,792kr Bank of America, N.A.

Foreign currency forward contract (SEK) $207 1,875kr HSBC Bank USA 04/08/22 —

Total Foreign Currency Forward Contracts, December 31, 2021 $ (219)

2 unchanged sentences

(1) All debt investments are income producing, unless otherwise noted.

Equity and any equity-linked investments are non-income producing, unless otherwise noted.

Eclipse Business Capital, LLC, Ferrellgas L.P ., Kano Laboratories LLC, Thompson Rivers LLC and Waccamaw River LLC equity investments are income producing.

All other equity and any equity-linked investments are non-income producing.

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 the Company's external investment adviser, 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.

1 unchanged sentence

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.

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2021

(Amounts in thousands, except share amounts)

(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.

(2) All of the Company’s portfolio company investments (including joint venture investments), which as of December 31, 2021 represented 242.0% 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.

Non-qualifying assets repres en t 25.7% of tot al investments at fair value as of December 31, 2021.

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).

Barings BDC, Inc.

Consolidated Schedule of Investments — (Continued)

December 31, 2020

Transactions related to investments in non-controlled "Affiliate Investments" for the year ended December 31, 2021 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

December 31, 2020

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) December 31, 2021 Value

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

2 unchanged sentences

5,947 — (5,870) (77) — — 72

Eclipse Business Capital, LLC (e)

Second Lien Senior Secured Term Loan (7.5% Cash) — 4,502 — — 236 4,738 170

Revolver (LIBOR + 7.25%) — 1,691 — — 127 1,818 53

LLC units (89,447,396 units) — 89,850 — — 2,818 92,668 3,582

— 96,043 — — 3,181 99,224 3,805

Jocassee Partners LLC 9.1% Member Interest 22,624 10,000 — — 4,978 37,602 —

1 unchanged sentence

JSC Tekers Holdings (e)

Common Stock (3,201 shares) — — — — — — —

Preferred Stock (9,159,085 shares) 4,753 — — — 1,444 6,197 —

Common Stock (3,201 shares) — — — — — — —

4,753 — — — 1,444 6,197 —

2 unchanged sentences

Senior Subordinated Loan (3.1% PIK) 8,746 778 — — — 9,524 285

Common Stock (1,099.5 shares) — 65,370 — — 21,329,370 — 21,329,370

Senior Unsecured Term Loan (9.0% PIK) — 8,831 (1,168) (24) (332) 7,307 820

Common Equity Interest 21,329 — — — 3,496 24,825 —

35,263 9,873 (1,168) (24) 3,164 47,108 1,381

1 unchanged sentence

10,012 69,414 — — 5,012 84,438 4,776

Waccamaw River LLC 20% Member Interest — 13,762 (68) — (194) 13,500 280

— 13,762 (68) — (194) 13,500 280

Total Affiliate Investments $ 78,599 $ 199,092 $ (7,106) $ (101) $ 17,585 $ 288,069 $ 10,314

(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.

(a) Eclipse Business Capital, LLC, Thompson Rivers LLC and Waccamaw River LLC equity investments are income producing.

All other equity and any equity-linked investments are non-income producing.

(b) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

Barings BDC, Inc.

1 unchanged sentence

December 31, 2021

(Amounts in thousands, except share amounts)

(d) 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.

(e) The fair value of the investment was determined using significant unobservable inputs.

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:

Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2019

Transactions as of and during the year ended December 31, 2021 in which the portfolio company is deemed to be a "Control Investment" of the Company were as follows:

December 31, 2020

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) December 31, 2021

Amount of Interest or Dividends Credited to Income(d)

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

Common Equity Interest $ 9,582 $ — $ — $ — $ (1,883) $ 7,699 $ —

Bridge Loan (6.0% Cash 12/31/2021) 7,149 — — — — 7,149 435

16,731 — — — (1,883) 14,848 435

2 unchanged sentences

9,124 — — — (1,560) 7,564 643

Waccamaw River LLC 50% Member Interest — 4,500 (4,474) — (26) — —

Total Control Investments $ 25,855 $ 4,500 $ (4,474) $ — $ (3,469) $ 22,412 $ 1,078

(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.

(b) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

(d) 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.

(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 February 2019 Credit Facility.

(6) Some or all of the investment is or will be encumbered as security for the Company's senior secured credit facility with ING Capital LLC.

(7) The fair value of the investment was determined using significant unobservable inputs.

(8) Non-accrual investment.

(8) Debt investment includes interest rate floor feature.

2 unchanged sentences

(11) The interest rate on these loans is subject to 6 Month LIBOR, which as of December 31, 2021 was 0.33875%.

(13) The interest rate on these loans is subject to 6 Month LIBOR, which as of December 31, 2020 was 0.25763%.

(12) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of December 31, 2021 was 0.26225%.

(13) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of December 31, 2021 was 0.47363%.

(16) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of December 31, 2020 was 0.02988%.

(14) The interest rate on these loans is subject to 3 Month EURIBOR, which as of December 31, 2021 was -0.57200%.

(15) The interest rate on these loans is subject to 6 Month EURIBOR, which as of December 31, 2021 was -0.54600%.

(19) The interest rate on these loans is subject to 6 Month EURIBOR, which as of December 31, 2020 was -0.526%.

(16) The interest rate on these loans is subject to 3 Month SONIA, which as of December 31, 2021 was 0.33830%.

(17) The interest rate on these loans is subject to 6 Month SONIA, which as of December 31, 2021 was 0.49870%.

(18) The interest rate on these loans is subject to 3 Month STIBOR, which as of December 31, 2021 was -0.00050%.

1 unchanged sentence

(20) The interest rate on these loans is subject to 3 Month BBSY, which as of December 31, 2021 was 0.06770%.

(23) Investment was purchased as part of the MVC Acquisition and is part of the Reference Portfolio for purposes of the Credit Support Agreement.

(21) The interest rate on these loans is subject to 3 Month CDOR, which as of December 31, 2021 was 0.51750%.

(22) The interest rate on these loans is subject to 3 Month SOFR, which as of December 31, 2021 was 0.09125%.

(23) The interest rate on these loans is subject to 6 Month SOFR, which as of December 31, 2021 was 0.19947%.

(24) Non-accrual investment.

(25) Investment was purchased as part of the MVC Acquisition and is part of the MVC Reference Portfolio for purposes of the MVC Credit Support Agreement.

(26) In 2017, MVC 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’s sale of its equity investment in U.S.

Gas & Electric.

Effective January 1, 2018, the cost basis of the U.S.

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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.

Instead of the Company directly compensating employees, the Company pays the Adviser for investment and management services pursuant to the terms of the New Barings BDC Advisory Agreement (as defined in “Note 2 – Agreements and Related Party Transactions”) (and, from January 1, 2021 to February 25, 2022, pursuant to the terms of the Amended and Restated Advisory Agreement (as defined in “Note 2 – Agreements and Related Party Transactions”)) 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.

26 unchanged sentences

Share Purchase Programs

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 net asset value (“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 Securities Exchange Act of 1934, as amended (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 nine months ended September 30, 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.

In connection with the completion of the Company’s acquisition of MVC Capital, Inc.

(“MVC”), a Delaware corporation, on December 23, 2020 (the “MVC Acquisition”), the Company committed to make 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 NAV per share.

In connection with the completion of the Company’s acquisition of MVC on December 23, 2020 (the “MVC Acquisition”), the Company committed to make 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 NAV 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 ended March 31, 2021, which occurred on May 6, 2021, and will be made in accordance with applicable legal, contractual and regulatory requirements.

During the nine months ended September 30, 2021, the Company did not repurchase any shares under the authorized program.

During the three months ended March 31, 2022, the Company repurchased a total of 207,677 shares of its common stock in the open market under the authorized program at an average price of $10.14 per share, including broker commissions.

In connection with the completion of the Company’s acquisition of Sierra on February 25, 2022 (the “Sierra Acquisition”), the Company committed to make open-market purchases of shares of its common stock in an aggregate amount of up to $30.0 million at then-current market prices at any time shares trade below 90% of the Company’s then most recently disclosed NAV per share.

Any repurchases pursuant to the authorized program will occur during the 12-month period commencing on April 1, 2022 and are expected to be made in accordance with a Rule 10b5-1 purchase plan that qualifies for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as subject to compliance with the Company’s covenant and regulatory requirements.

AGREEMENTS AND RELATED PARTY TRANSACTIONS

3 unchanged sentences

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.

In connection with the Sierra Acquisition, on February 25, 2022, the Company entered into a second amended and restated investment advisory agreement (the “New Barings BDC Advisory Agreement”) with the Adviser, which increased the hurdle rate applicable to the income incentive fee from 2.0% to 2.0625% per quarter (or from 8.0% to 8.25% annualized) and therefore increased the catch-up amount that is used in calculating the income incentive fee to correspond to the increase in the hurdle rate.

All other terms and provisions of the Amended and Restated Advisory Agreement between the Company and the Adviser, including with respect to the calculation of the other fees payable to the Adviser, remained unchanged under the New Barings BDC Advisory Agreement.

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.

Pursuant to the New Barings BDC 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;

3 unchanged sentences

(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

The New Barings BDC 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,

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

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 New Barings BDC Advisory Agreement or otherwise as an investment adviser of the Company.

The Adviser’s services under the New Barings BDC 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 New Barings BDC Advisory Agreement is not adversely affected.

The Adviser has entered into a personnel-sharing arrangement with its affiliate, Baring International Investment Limited (“BIIL”).

3 unchanged sentences

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 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.

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%.

Under the New Barings BDC 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.

Base Management Fee

The Base Management Fee is calculated based on the Company’s gross assets, including the Company’s credit support agreements, 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.

1 unchanged sentence

Base Management Fees for any partial month or quarter will be appropriately pro-rated.

For the three and nine months ended September 30, 2021, the Base Management Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was approximately $5.3 million and $14.1 million, respectively.

For the three and nine months ended, September 30, 2020, the Base Management Fee determined in accordance with the terms of the Original Advisory Agreement was approximately $3.4 million and $10.9 million, respectively.

As of September 30, 2021, the Base Management Fee of $5.3 million for the three months ended September 30, 2021 was unpaid and included in “Base management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

For the three months ended March 31, 2022, the Base Management Fee determined in accordance with the terms of the New Barings BDC Advisory Agreement was approximately $5.9 million.

For the three months ended March 31, 2021, the Base Management Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was approximately $3.9 million.

As of March 31, 2022, the Base Management Fee of $5.9 million for the three months ended March 31, 2022 was unpaid and included in “Base management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

As of December 31, 2021, the Base Management Fee of $5.4 million for the three months ended December 31, 2021 was unpaid and included in “Base management fees payable” in the accompanying Consolidated Balance Sheet.

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").

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

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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 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 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);

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

(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;

(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 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.

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:

Incentive Fee

The Incentive Fee consists of two components that are independent of each other, with the result that one component may be payable even if the other is not.

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 2.0625% (8.25% annualized) by the aggregate of the Company's NAV 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

For this purpose, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including, without limitation, any accrued income that the Company has not yet received in cash and any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives 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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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 NAV at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters.

(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 2.578125% (10.3125% annualized) by the aggregate of the Company's NAV 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;

(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.

(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 aggregate 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.

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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.

If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company 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, the Company 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, the Company 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.

(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 investment 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.

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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.

Under the New Barings BDC 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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

For the three and nine months ended September 30, 2021, the Income-Based Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was $4.4 million and $10.7 million, respectively.

As of September 30, 2021, the Income-Based Fee of $4.4 million was unpaid and included in “Incentive management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

The Company did not pay any Pre-2021 Income-Based Fee for the three or nine months ended September 30, 2020.

The Company did not incur any capital gains fees for either of the three or nine months ended September 30, 2021 or 2020.

Under the New Barings BDC 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.

For the three months ended March 31, 2022, the Income-Based Fee determined in accordance with the terms of the New Barings BDC Advisory Agreement was $4.8 million.

For the three months ended March 31, 2021, the Income-Based Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was $2.7 million.

As of March 31, 2022, the Income-Based Fee of $4.8 million was unpaid and included in “Incentive management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

As of December 31, 2021, the Income-Based Fee of $4.1 million for the three months ended December 31, 2021 was unpaid and included in “Incentive management fees payable” in the accompanying Consolidated Balance Sheet.

The Company did not incur any capital gains fees for either of the three months ended March 31, 2022 or 2021.

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 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.

Under the New Barings BDC 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 New Barings BDC 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 all costs and expenses relating to the Company's operations and transactions, including, without limitation, those items listed in the New Barings BDC Advisory Agreement, will be borne by the Company.

Administration Agreement

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• 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;

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

• all fees, costs and expenses associated with the engagement of a sub-administrator, if any;

• 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 three and nine months ended September 30, 2021, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.8 million and $1.8 million, respectively, under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

For the three and nine months ended September 30, 2020, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.3 million and $0.9 million, respectively, under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

As of September 30, 2021, the administrative expenses of $0.8 million for the three months ended September 30, 2021 were unpaid and included in “Administrative fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

• costs associated with (a) the monitoring and preparation of regulatory reporting, including filings with the SEC 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 three months ended March 31, 2022 and March 31, 2021, the Company incurred and was invoiced by the Adviser for expenses of approximately $1.0 million and $0.5 million under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

As of March 31, 2022, the administrative expenses of $1.0 million for the three months ended March 31, 2022 were unpaid and included in “Administrative fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

As of December 31, 2021, the administrative expenses of $0.8 million incurred for the three months ended December 31, 2021 were unpaid and included in “Administrative fees payable” in the accompanying Consolidated Balance Sheet.

Credit Support Agreement

In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Company’s merger with MVC , 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 Company’s merger with MVC 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.

MVC Credit Support Agreement

In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Company’s merger with MVC , the Company entered into a Credit Support Agreement (the “MVC 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 MVC Credit Support Agreement are as follows:

• The MVC Credit Support Agreement covers all of the investments in the MVC 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 MVC Reference Portfolio over (2) the aggregate realized and unrealized gains on the MVC Reference Portfolio, in each case from the date of the closing of the Company’s merger with MVC through the MVC Designated Settlement Date (up to a $23.0 million cap) (such amount, the “MVC Covered Losses”).

For purposes of the MVC Credit Support Agreement, “MVC Designated Settlement Date” means the earlier of (1) January 1, 2031 and (2) the date on which the entire MVC Reference Portfolio has been realized or written off.

No credit support is required to be made by the Adviser to the Company under the MVC Credit Support Agreement if the aggregate realized and unrealized gains on the MVC Reference Portfolio exceed realized and unrealized losses of the MVC Reference Portfolio on the MVC Designated Settlement Date.

• The Adviser will settle any credit support obligation under the MVC Credit Support Agreement as follows.

If the MVC Covered Losses are greater than $0.00, then, in satisfaction of the Adviser’s obligation set forth in the MVC Credit Support Agreement, the Adviser will irrevocably waive during the MVC Waiver Period (as defined below) (1) the incentive fees payable under the New Barings BDC Advisory Agreement (including any incentive fee calculated on an annual basis during the MVC Waiver Period), and (2) in the event that MVC Covered Losses exceed such incentive fee, the base management fees payable under the New Barings BDC Advisory Agreement.

The “MVC Waiver Period” means the four quarterly measurement periods immediately following the quarter in which the MVC Designated Settlement Date occurs.

If the MVC Covered Losses exceed the aggregate amount of incentive fees and base management fees waived by the Adviser during the MVC Waiver Period, then, on the date on which the last incentive fee or base management fee payment would otherwise be due during the MVC Waiver Period, the Adviser shall make a cash payment to the Company equal to the positive difference between the MVC Covered Losses and the aggregate amount of incentive fees and base management fees previously waived by the Adviser during the MVC Waiver Period.

• The MVC 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 MVC 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 MVC Credit Support Agreement.

The MVC Credit Support Agreement is intended to give stockholders of the combined company following the MVC Acquisition 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 MVC Acquisition.

There is no fee or other payment by the Company to the Adviser or any of its affiliates in connection with

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

the MVC Credit Support Agreement.

Any cash payment from the Adviser to the Company under the MVC Credit Support Agreement will be excluded from the Company’s incentive fee calculations under the New Barings BDC Advisory Agreement.

When the Company and the Adviser entered into the MVC Credit Support Agreement, it was accounted for as a deemed contribution from the Adviser and was included in "Additional paid-in capital" in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

In addition, the MVC Credit Support Agreement is accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging , and is included in “Credit support agreements” in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

Sierra Credit Support Agreement

In connection with the Sierra Acquisition, on February 25, 2022, promptly following the closing of the Company’s merger with Sierra, the Company entered into a Credit Support Agreement (the “Sierra 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 $100.0 million relating to the net cumulative realized and unrealized losses on the acquired Sierra investment portfolio over a 10-year period.

A summary of the material terms of the Sierra Credit Support Agreement are as follows:

• The Sierra Credit Support Agreement covers all of the investments in the Sierra 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 Sierra Reference Portfolio less (2) the aggregate realized and unrealized gains on the Sierra Reference Portfolio, in each case from the date of the closing of the Company’s merger with Sierra through the Designated Settlement Date (up to a $100.0 million cap) (such amount, the “Covered Losses”).

For purposes of the Sierra Credit Support Agreement, “Designated Settlement Date” means the earlier of (1) April 1, 2032 and (2) the date on which the entire Sierra Reference Portfolio has been realized or written off.

No credit support is required to be made by the Adviser to the Company under the Sierra Credit Support Agreement if the aggregate realized and unrealized gains on the Sierra Reference Portfolio exceed realized and unrealized losses of the Sierra Reference Portfolio on the Designated Settlement Date.

• The Adviser will settle any credit support obligation under the Sierra 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 Sierra Credit Support Agreement, the Adviser will irrevocably waive during the Waiver Period (as defined below) (1) the incentive fees payable under the New Barings BDC 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 New Barings BDC 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 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 Sierra 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 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 Sierra Credit Support Agreement.

The Sierra Credit Support Agreement is intended to give stockholders of the combined company following the Sierra Acquisition downside protection from net cumulative realized and unrealized losses on the acquired Sierra portfolio and insulate the combined company’s stockholders from potential value volatility and losses in Sierra’s portfolio following the closing of the Company’s merger with Sierra.

There is no fee or other payment by the Company to the Adviser or any of its affiliates in connection with the Sierra Credit Support Agreement.

Any cash payment from the Adviser to the Company under the Sierra Credit Support Agreement will be excluded from the combined company’s incentive fee calculations under the New Barings BDC Advisory Agreement.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The Credit Support Agreement is intended to give stockholders of the combined company following the MVC Acquisition 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 MVC Acquisition.

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 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 Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

In addition, the Credit Support Agreement is accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging , and is included in "Credit support agreement" in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

When the Company and the Adviser entered into the Sierra Credit Support Agreement, it was accounted for as a deemed contribution from the Adviser and was included in "Additional paid-in capital" in the accompanying Unaudited Consolidated Balance Sheet.

In addition, the Sierra Credit Support Agreement is accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging , and is included in "Credit support agreement" in the accompanying Unaudited Consolidated Balance Sheet.

Portfolio Composition

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Structured product investments 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 Adviser's existing SEC co-investment exemptive relief under the 1940 Act permits the Company and the Adviser's affiliated private funds and SEC regulated 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, 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 and net assets, are shown in the following tables:

Cost Percentage of

($ in thousands) Cost Percentage of

Total Portfolio Fair Value Percentage of

Total Portfolio Percentage of

September 30, 2021:

March 31, 2022:

Senior debt and 1 st lien notes

6 unchanged sentences

Investment in joint ventures / PE fund 230,076 10 228,400 10 17

Short-term investments 50,000,000 3 50,000,000 3 7

$ 2,391,601 100 % $ 2,403,425 100 % 182 %

8 unchanged sentences

Investment in joint ventures / PE fund 132,417 8 143,104 8 19

Short-term investments 65,558,227 4 65,558,227 4 9

$ 1,787,824 100 % $ 1,800,594 100 % 243 %

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

During the three months ended September 30, 2021, the Company made 19 new investments totaling $122.1 million, made investments in existing portfolio companies totaling $60.3 million, made additional investments in existing joint venture equity portfolio companies totaling $3.8 million and made an $89.8 million equity co-investment alongside certain affiliates in a portfolio company focused on directly originated, senior-secured asset-based loans to middle-market companies.

During the nine months ended September 30, 2021, the Company made 59 new investments totaling $529.9 million, made investments in existing portfolio companies totaling $156.3 million, made a net new joint venture equity investment totaling $9.3 million, additional investments in joint venture equity portfolio companies totaling $30.0 million and made an $89.8 million equity co-investment alongside certain affiliates in a portfolio company focused on directly originated, senior-secured asset-based loans to middle-market companies.

During the three months ended September 30, 2020, the Company made 15 new investments totaling $127.3 million, nine investments in existing portfolio companies totaling $16.3 million and an additional investment in one joint venture equity portfolio company totaling $1.6 million.

During the nine months ended September 30, 2020, the Company made 47 new investments totaling $263.9 million, investments in 18 existing portfolio companies totaling $39.8 million, one new joint venture equity investment totaling $3.1 million and an additional investment in one joint venture equity portfolio company totaling $5.0 million.

During the three months ended March 31, 2022, the Company made 22 new investments totaling $229.3 million, purchased $442.2 million of investments as part of the Sierra Acquisition, made investments in existing portfolio companies totaling $89.3 million and made additional investments in joint venture equity portfolio companies totaling $11.7 million.

During the three months ended March 31, 2021, the Company made 18 new investments totaling $172.2 million, made investments in existing portfolio companies totaling $73.2 million, made one new joint venture equity investment totaling $4.5 million and made additional investments in existing joint venture equity portfolio companies totaling $25.0 million.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The industry composition of investments at fair value at September 30, 2021 and December 31, 2020, excluding short-term investments, was as follows:

September 30, 2021 December 31, 2020

Industry Composition

The industry composition of investments at fair value at March 31, 2022 and December 31, 2021, excluding short-term investments, was as follows:

($ in thousands) March 31, 2022 December 31, 2021

Aerospace and Defense $ 154,797 6.4 % $ 91,129 5.1 %

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Oil and Gas 6,674 0.3 5,774 0.3

Environmental Services 5,679,198 0.3 — —

Environmental Industries 8,012 0.3 8,081 0.4

Healthcare and Pharmaceuticals 186,429 7.8 134,286 7.5

25 unchanged sentences

Notes to Unaudited Consolidated Financial Statements — (Continued)

The total value of Jocassee’s investment portfolio was $1,141.6 million as of September 30, 2021, as compared to $869.6 million as of December 31, 2020.

As of September 30, 2021, Jocassee’s investments had an aggregate cost of $1,123.3 million, as compared to $839.5 million as of December 31, 2020.

As of September 30, 2021 and December 31, 2020, the Jocassee investment portfolio consisted of the following investments:

Cost Percentage of

The total value of Jocassee’s investment portfolio was $1,366.6 million as of March 31, 2022, as compared to $1,258.2 million as of December 31, 2021.

As of March 31, 2022, Jocassee’s investments had an aggregate cost of $1,376.0 million, as compared to $1,242.2 million as of December 31, 2021.

As of March 31, 2022 and December 31, 2021, the weighted average yield on the principal amount of Jocassee’s outstanding debt investments was approximately 5.4% and 5.3%, respectively.

As of March 31, 2022 and December 31, 2021, the Jocassee investment portfolio consisted of the following investments:

($ in thousands) Cost Percentage of

Portfolio Fair Value Percentage of

September 30, 2021:

March 31, 2022:

Senior debt and 1 st lien notes

17 unchanged sentences

$ 1,242,219 100 % $ 1,258,219 100 %

As of September 30, 2021 and December 31, 2020, the weighted average yield on the principal amount of Jocassee’s outstanding debt investments was approximately 4.9% and 4.4%, respectively.

The weighted average yield on the principal amount of all of Jocassee’s outstanding investments (including equity and equity-linked investments and short-term investments) was approximately 4.4% and 3.8% as of September 30, 2021 and December 31, 2020, respectively.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The industry composition of Jocassee’s investments at fair value at September 30, 2021 and December 31, 2020, excluding short-term investments, was as follows:

September 30, 2021 December 31, 2020

The industry composition of Jocassee’s investments at fair value at March 31, 2022 and December 31, 2021, excluding short-term investments, was as follows:

($ in thousands) March 31, 2022 December 31, 2021

Aerospace and Defense $ 71,608 5.3 % $ 71,857 5.8 %

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Electric 3,248 0.2 3,265 0.3

Oil and Gas 6,915 0.5 6,870 0.6

Wholesale — — 945 0.1

2 unchanged sentences

Notes to Unaudited Consolidated Financial Statements — (Continued)

The geographic composition of Jocassee’s investments at fair value at September 30, 2021 and December 31, 2020, excluding short-term investments, was as follows:

September 30, 2021 December 31, 2020

The geographic composition of Jocassee’s investments at fair value at March 31, 2022 and December 31, 2021, excluding short-term investments, was as follows:

($ in thousands) March 31, 2022 December 31, 2021

Australia $ 37,405 2.8 % $ 16,509 1.3 %

6 unchanged sentences

Germany 43,386 3.2 6,357 0.5

Hong Kong 4,779 0.4 2,272 0.2

Ireland 4,045 0.3 123,816 9.9

3 unchanged sentences

Panama 956 0.1 — —

Singapore 4,936 0.3 — —

Spain 4,632 0.3 1,225 0.1

4 unchanged sentences

Total $ 1,353,938 100 % $ 1,245,647 100 %

Jocassee’s subscription facility with Bank of America N.A., which is non-recourse to the Company, had approximately $87.4 million and $204.9 million outstanding as of September 30, 2021 and December 31, 2020, respectively.

Jocassee’s credit facility with Citibank, N.A., which is non-recourse to the Company, had approximately $316.3 million and $113.1 million outstanding as of September 30, 2021 and December 31, 2020, respectively.

Jocassee’s term debt securitization, which is non-recourse to the Company, had approximately $323.0 million and $302.3 million outstanding as of September 30, 2021 and December 31, 2020, respectively.

Jocassee’s subscription facility with Bank of America N.A., which is non-recourse to the Company, had approximately $129.3 million and $176.3 million outstanding as of March 31, 2022 and December 31, 2021, respectively.

Jocassee’s credit facility with Citibank, N.A., which is non-recourse to the Company, had approximately $347.9 million and $342.8 million outstanding as of March 31, 2022 and December 31, 2021, respectively.

Jocassee’s term debt securitization, which is non-recourse to the Company, had approximately $323.1 million outstanding as of both March 31, 2022 and December 31, 2021.

The Company may sell portions of its investments via assignment to Jocassee.

Since inception, as of September 30, 2021 and December 31, 2020, the Company had sold $500.6 million and $162.2 million, respectively, of its investments to Jocassee.

As of September 30, 2021 and December 31, 2020, the Company had $61.1 million and $44.2 million, respectively in unsettled receivables due from Jocassee that were included in "Receivable from unsettled transactions" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

Since inception, as of March 31, 2022 and December 31, 2021, the Company had sold $830.8 million and $698.5 million, respectively, of its investments to Jocassee.

For the three months ended March 31, 2022 and March 31, 2021, the Company realized a loss on the sales of its investments to Jocassee of $0.2 million and $0.3 million, respectively.

As of March 31, 2022 and December 31, 2021, the Company had $180.0 million and $216.9 million, respectively, in unsettled receivables due from Jocassee that were included in "Receivable from unsettled transactions" in the accompanying Unaudited and Audited 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:

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(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, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

As of September 30, 2021 and December 31, 2020, Jocassee had the following contributed capital and unfunded commitments from its members:

September 30, 2021

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 Jocassee as it is not a substantially wholly owned investment company subsidiary.

In addition, Jocassee is not an operating company and the Company does not control Jocassee due to the allocation of voting rights among Jocassee members.

As of March 31, 2022 and December 31, 2021, Jocassee had the following contributed capital and unfunded commitments from its members:

($ in thousands) As of

March 31, 2022

As of December 31, 2021

8 unchanged sentences

On May 13, 2020, the Company entered into a limited liability company agreement governing Thompson Rivers.

Under Thompson Rivers’ current operating agreement, as amended to date, the Company has a capital commitment of $30.0 million of equity capital to Thompson Rivers, all of which has been funded as of September 30, 2021.

As of September 30, 2021, aggregate commitments to Thompson Rivers by the Company and the other members under the current operating agreement total $405.0 million, all of which has been funded.

For the three and nine months ended September 30, 2021, Thompson Rivers declared $12.5 million and $16.0 million in dividends, respectively, of which $1.0 million and $1.3 million, respectively, was recognized as dividend income in the Company’s Unaudited Consolidated Statement of Operations.

As of September 30, 2021, Thompson Rivers had $3.2 billion in Ginnie Mae early buyout loans and $117.5 million in cash.

As of December 31, 2020, Thompson Rivers had $715.2 million in Ginnie Mae early buyout loans.

As of September 30, 2021, Thompson Rivers had 15,374 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.18%.

Under Thompson Rivers’ current operating agreement, as amended to date, the Company has a capital commitment of $75.0 million of equity capital to Thompson Rivers, all of which has been funded as of March 31, 2022.

As of March 31, 2022, aggregate commitments to Thompson Rivers by the Company and the other members under the current operating agreement total $450.0 million, all of which has been funded.

For the three months ended March 31, 2022, Thompson Rivers declared $20.0 million in dividends, of which $3.2 million was recognized as dividend income in the Company’s Unaudited Consolidated Statement of Operations.

As of March 31, 2022, Thompson Rivers had $2.7 billion in Ginnie Mae early buyout loans and $117.4 million in cash.

As of December 31, 2021, Thompson Rivers had $3.1 billion in Ginnie Mae early buyout loans and $220.6 million in cash.

As of March 31, 2022, Thompson Rivers had 14,270 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 3.9%.

As of December 31, 2021, Thompson Rivers had 15,617 outstanding loans with an average unpaid balance of $0.2 million and weighted average coupon of 4.0%.

As of September 30, 2021 and December 31, 2020, the Thompson Rivers investment portfolio consisted of the following investments:

Cost Percentage of

As of March 31, 2022 and December 31, 2021, the Thompson Rivers investment portfolio consisted of the following investments:

($ in thousands) Cost Percentage of

Portfolio Fair Value Percentage of

September 30, 2021:

March 31, 2022:

Federal Housing Administration (“FHA”) loans $ 2,399,678 90 % $ 2,381,614 90 %

5 unchanged sentences

$ 3,024,528 100 % $ 3,063,036 100 %

Thompson Rivers’ repurchase agreement with JPMorgan Chase Bank, which is non-recourse to the Company, had approximately $757.4 million and $670.1 million outstanding as of September 30, 2021 and December 31, 2020, respectively.

Thompson Rivers’ repurchase agreement with Bank of America N.A., which is non-recourse to the Company, had approximately $894.1 million outstanding as of September 30, 2021.

Thompson Rivers’ repurchase agreement with Barclays Bank, which is non-recourse to the Company, had approximately $1,220.8 million outstanding as of September 30, 2021.

Thompson Rivers’ repurchase agreement with JPMorgan Chase Bank, which is non-recourse to the Company, had approximately $572.4 million and $694.8 million outstanding as of March 31, 2022 and December 31, 2021, respectively.

Thompson Rivers’ repurchase agreement with Bank of America N.A., which is non-recourse to the Company, had approximately $1,087.3 million and $1,245.2 million outstanding as of March 31, 2022 and December 31, 2021, respectively.

Thompson Rivers’ repurchase agreement with Barclays Bank, which is non-recourse to the Company, had approximately $749.7 million and $933.1 million outstanding as of March 31, 2022 and December 31, 2021, respectively.

Barings BDC, Inc.

2 unchanged sentences

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 September 30, 2021 and December 31, 2020, Thompson Rivers had the following contributed capital and unfunded commitments from its members:

September 30, 2021

In addition, Thompson Rivers is not an operating company and the Company does not control Thompson Rivers due to the allocation of voting rights among Thompson Rivers members.

As of March 31, 2022 and December 31, 2021, Thompson Rivers had the following contributed capital and unfunded commitments from its members:

($ in thousands) As of

March 31, 2022

As of December 31, 2021

Total contributed capital by Barings BDC, Inc.(1) $ 79,411 $ 79,414

$ 30,000,000 $ 10,000,000

Total contributed capital by all members $ 482,083 (2) $ 482,120 (3)

1 unchanged sentence

Total unfunded commitments by all members $ — $ —

(1) Includes $150.0 million of total contributed capital by related parties.

(2) Includes $90.0 million of total contributed capital by related parties.

(1) Includes $4.4 million of dividend re-investments.

(2) Includes dividend re-investments of $32.1 million and $162.1 million of total contributed capital by related parties.

(3) Includes dividend re-investments of $32.1 million and $162.3 million of total contributed capital by related parties.

Waccamaw River LLC

1 unchanged sentence

On February 8, 2021, the Company entered into a limited liability company agreement governing Waccamaw River.

Under Waccamaw River’s current operating agreement, as amended to date, the Company has a capital commitment of $25.0 million of equity capital to Waccamaw River, of which approximately $14.6 million (including approximately $5.3 million of recallable return of capital) has been funded as of September 30, 2021.

As of September 30, 2021, aggregate commitments to Waccamaw River by the Company and the other members under the current operating agreement total $125.0 million, of which $60.6 million (including $14.0 million of recallable return of capital) has been funded.

On September 30, 2021, Waccamaw River declared a $0.7 million dividend, of which $0.1 million was recognized as dividend income in the Company’s Unaudited Consolidated Statement of Operations.

As of September 30, 2021, Waccamaw River had $33.8 million in unsecured student loans and $11.7 million in cash.

As of September 30, 2021, Waccamaw River had 3,178 outstanding loans with an average loan size of $10,000, remaining average life to maturity of 44.2 months and weighted average interest rate of 10.58%.

Under Waccamaw River’s current operating agreement, as amended to date, the Company has a capital commitment of $25.0 million of equity capital to Waccamaw River, of which approximately $20.4 million (including approximately $5.3 million of recallable return of capital) has been funded as of March 31, 2022.

As of March 31, 2022, aggregate commitments to Waccamaw River by the Company and the other members under the current operating agreement total $125.0 million, of which $102.1 million (including $14.0 million of recallable return of capital) has been funded.

On March 31, 2022, Waccamaw River declared $1.5 million in dividends, of which $0.3 million was recognized as dividend income in the Company’s Unaudited Consolidated Statement of Operations.

As of March 31, 2022, Waccamaw River had $89.7 million in unsecured consumer loans and $8.5 million in cash.

As of December 31, 2021, Waccamaw River had $60.8 million in unsecured consumer loans and $4.9 million in cash.

As of March 31, 2022, Waccamaw River had 7,964 outstanding loans with an average loan size of $11,522, remaining average life to maturity of 45.9 months and weighted average interest rate of 10.9%.

As of December 31, 2021, Waccamaw River had 5,500 outstanding loans with an average loan size of $11,280, remaining average life to maturity of 46.5 months and weighted average interest rate of 10.9%.

The Company has determined that Waccamaw River 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 Waccamaw River as it is not a substantially wholly owned investment company subsidiary.

In addition, the Company does not control Waccamaw River due to the allocation of voting rights among Waccamaw River members.

In addition, Waccamaw River is not an operating company and the Company does not control Waccamaw River due to the allocation of voting rights among Waccamaw River members.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

As of September 30, 2021, Waccamaw River had the following contributed capital and unfunded commitments from its members:

September 30, 2021

As of March 31, 2022 and December 31, 2021, Waccamaw River had the following contributed capital and unfunded commitments from its members:

($ in thousands) As of

March 31, 2022

December 31, 2021

Total contributed capital by Barings BDC, Inc.

$ 25,700 $ 19,000

Total contributed capital by all members $ 116,120 (1) $ 82,620 (4)

3 unchanged sentences

Total unfunded commitments by Barings BDC, Inc.

$ 4,580 $ 11,280

Total unfunded commitments by all members $ 22,900 (3) $ 56,400 (5)

2 unchanged sentences

(3) Includes $13.7 million of unfunded commitments by related parties.

(4) Includes $48.2 million of total contributed capital by related parties.

(5) Includes $33.8 million of unfunded commitments by related parties.

Sierra Senior Loan Strategy JV I LLC

On February 25, 2022, as part of the Sierra Acquisition, the Company purchased its interest in Sierra Senior Loan Strategy JV I LLC (“Sierra JV”).

The Company and MassMutual Ascend Life Insurance Company (“MMALIC”), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company, are the members of Sierra JV, a joint venture formed as a Delaware limited liability company and commenced operations on July 15, 2015.

Sierra JV’s investment objective is to generate current income and capital appreciation by investing primarily in the debt of privately-held middle market companies with a focus on senior secured first lien term loans.

The members of Sierra JV make capital contributions as investments by Sierra JV are completed, and all portfolio and other material decisions regarding Sierra JV must be submitted to Sierra JV’s board of managers, which is comprised of four members, two of whom are selected by the Company and the other two are selected by MMALIC.

Approval of Sierra JV’s board of managers requires the unanimous approval of a quorum of the board of managers, with a quorum consisting of equal representation of members appointed by each of the Company and MMALIC.

As of March 31, 2022, Sierra JV had total capital commitments of $124.5 million with the Company committing $110.1 million and MMALIC committing $14.5 million.

The Company had fully funded its $110.1 million commitment and total commitments of $124.5 million were funded as of March 31, 2022.

The Company has determined that Sierra JV 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 Sierra JV as it is not a substantially wholly owned investment company subsidiary.

In addition, Sierra JV is not an operating company and the Company does not control Sierra JV due to the allocation of voting rights among Sierra JV members.

As of March 31, 2022, the total cost and value of Sierra JV’s investment portfolio was $158.8 million and $152.0 million, respectively.

As of March 31, 2022, the weighted average yield on the principal amount of Sierra JV’s outstanding debt investments was approximately 5.8%.

As of March 31, 2022, the Sierra JV investment portfolio consisted of the following investments:

($ in thousands) Cost Percentage of

Portfolio Fair Value Percentage of

March 31, 2022:

Senior debt and 1 st lien notes

$ 158,810 100 % $ 152,035 100 %

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The industry composition of Sierra JV’s investments at fair value at March 31, 2022, excluding short-term investments, was as follows:

($ in thousands) March 31, 2022

Automotive 6,069 4.0 %

Banking, Finance, Insurance and Real Estate 1,677 1.1

Beverage, Food and Tobacco 4,481 2.9

Capital Equipment 9,413 6.2

Chemicals, Plastics, and Rubber 9,098 6.0

Construction and Building 1,883 1.2

Consumer goods:

Durable 7,904 5.2

Consumer goods:

Non-durable 43 —

Containers, Packaging and Glass 1,730 1.1

Environmental Industries 8,638 5.7

Forest Products & Paper 2,535 1.7

Healthcare and Pharmaceuticals 15,848 10.4

High Tech Industries 18,575 12.2

Advertising, Printing and Publishing 9,805 6.4

Diversified and Production 9,016 5.9

Retail 12,183 8.0

Business 12,891 8.5

Consumer 8,637 5.7

Transportation:

Cargo 6,326 4.2

Transportation:

Consumer 5,283 3.5

Total $ 152,035 100.0 %

Sierra JV’s revolving credit facility with Wells Fargo Bank, N.A., which is non-recourse to the Company, had $75.0 million outstanding as of March 31, 2022.

Eclipse Business Capital Holdings LLC

On July 8, 2021, the Company made an equity investment in Eclipse Business Capital Holdings LLC (“Eclipse”) of $89.8 million, a second lien senior secured loan of $4.5 million and unfunded revolver of $13.6 million, alongside other related party affiliates.

As of March 31, 2022 and December 31, 2021, $2.7 million and $1.8 million, respectively, of the revolver was funded.

Eclipse conducts its business through Eclipse Business Capital LLC.

5 unchanged sentences

The Company has determined that Eclipse is not an investment company under ASC, Topic 946, Financial Services - Investment Companies.

Under the scope exception in ASC 810-10-12(d), the Company is not required to consolidate Eclipse.

Under ASC 810-10-15-12(d), an investment company generally does not consolidate an investee that is not an investment company other than a controlled operating company whose business consists of providing services to the company.

Thus, the Company is not required to consolidate Eclipse because it does not provide services to the Company.

Instead the Company accounts for its investment in Eclipse in accordance with ASC 946-320, presented as a single investment measured at fair value.

Valuation of Investments

The Company conducts the valuation of its investments, upon which its net asset value is primarily based, in accordance with its 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").

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

820, Fair Value Measurements and Disclosures ("ASC Topic 820").

The Company's current valuation policy and processes were established by the Adviser and have been approved by the Board.

1 unchanged sentence

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.

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.

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:

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Level 3 Inputs – include inputs that are unobservable and significant to the fair value measurement.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

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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 syndicated senior secured loans and structured products 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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Independent Valuation

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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 uses 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

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

making valuation recommendations to the Board.

If the Adviser’s 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.

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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, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP

The Company estimates the fair value of its investments in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP using the NAV of each company and its ownership percentage.

The NAV is determined in accordance with the specialized accounting guidance for investment companies.

Valuation of Investments in Jocassee, Thompson Rivers, Waccamaw River, Sierra JV and MVC Private Equity Fund LP

As Jocassee, Thompson Rivers, Waccamaw River, Sierra JV and MVC Private Equity Fund LP are investment companies with no readily determinable fair values, the Company estimates the fair value of the Company’s investments in these entities using net asset value of each company and the Company’s ownership percentage as a practical expedient.

The net asset value is determined in accordance with the specialized accounting guidance for investment companies.

Barings BDC, Inc.

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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 September 30, 2021 and December 31, 2020.

The following tables summarize the significant unobservable inputs the Company used in the valuation of its Level 3 debt and equity securities as of March 31, 2022 and December 31, 2021.

The weighted average range of unobservable inputs is based on fair value of investments.

September 30, 2021:

March 31, 2022:

($ in thousands)

Fair Value Valuation

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$ 1,107,422 Yield Analysis Market Yield 5.5% – 38.2% 8.6% Decrease

19,998 Market Approach Adjusted EBITDA Multiple 0.3x – 4.5x 3.5x Increase

286,465 Recent Transaction Transaction Price 0% – 100.0% 98.1% Increase

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72,507 Market Approach Adjusted EBITDA Multiple 5.0x – 7.0x 5.2x Increase

1,592 Discounted Cash Flow Analysis Discount Rate 19.6% 19.6% Decrease

3,931 Recent Transaction Transaction Price 100% 100% Increase

Structured products 4,986 Discounted Cash Flow Analysis Discount Rate 6.3% 6.3% Decrease

Equity shares (3)

192,434 Market Approach Adjusted EBITDA Multiple 2.3x – 50.0x 9.5x Increase

5,953,405 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892 Increase

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81 Increase

Real Estate - Income Approach Market Rent

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718 Increase

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5% Decrease

Real Estate - Income Approach Adj.

Development Zone n/a 1.15 Increase

5,953 Expected Transaction (4)

Transaction Price $5,953 $5,953 Increase

7,904 Recent Transaction Transaction Price $0.67 – $1,000 $124.22 Increase

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(3) Excludes investments with an aggregate fair value amounting to $3,030, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

(4) Estimated proceeds expected to be received under legally binding asset purchase agreement for sale of real estate held by portfolio company.

Barings BDC, Inc.

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December 31, 2021:

($ in thousands)

Fair Value Valuation

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$ 717,374 Yield Analysis Market Yield 5.2% – 33.5% 7.7% Decrease

3,000,000 Liquidation Analysis Adjusted EBITDA Multiple 0.05x – 0.15x 0.10x Increase

416,010 Recent Transaction Transaction Price 96.5% – 99.0% 97.7% Increase

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137,393 Market Approach Adjusted EBITDA Multiple 5.5x – 54.0x 13.1x Increase

4,752,997 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892 Increase

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81 Increase

Real Estate - Income Approach Market Rent

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718 Increase

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5% Decrease

Real Estate - Income Approach Adj.

Development Zone n/a 1.15 Increase

6,197 Expected Transaction (4)

Transaction Price $6,197,037 $6,197,037 Increase

4,546 Recent Transaction Transaction Price $1.0 – $1,000 $140.03 Increase

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(3) Excludes investments with an aggregate fair value amounting to $3,146, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The following tables present the Company’s investment portfolio at fair value as of September 30, 2021 and December 31, 2020, categorized by the ASC Topic 820 valuation hierarchy, as previously described:

Fair Value as of September 30, 2021

Level 1 Level 2 Level 3 Total

(4) Estimated proceeds expected to be received under legally binding asset purchase agreement for sale of real estate held by portfolio company.

The following tables present the Company’s investment portfolio at fair value as of March 31, 2022 and December 31, 2021, categorized by the ASC Topic 820 valuation hierarchy, as previously described:

Fair Value as of March 31, 2022

($ in thousands) Level 1 Level 2 Level 3 Total

Senior debt and 1 st lien notes

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Equity warrants — 84 72 156

Short-term investments 50,000,000 — — 50,000,000

Investments subject to leveling $ 94 $ 224,023 $ 1,950,908 $ 2,175,025

Investment in joint ventures / PE fund(1) 228,400

$ 1,652,482,920

Fair Value as of December 31, 2021

Level 1 Level 2 Level 3 Total

($ in thousands) Level 1 Level 2 Level 3 Total

Senior debt and 1 st lien notes

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Equity warrants — 243 864 1,107

Short-term investments 65,558,227 — — 65,558,227

Investments subject to leveling $ 111 $ 137,341 $ 1,520,038 $ 1,657,490

Investment in joint ventures / PE fund(2) 143,104

$ 1,495,795,937

(1) The Company's investments in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP are measured at fair value using NAV and have not been categorized in the fair value hierarchy.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

Barings BDC, Inc.

Notes to Unaudited 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 nine months ended September 30, 2021 and 2020:

Nine Months Ended

September 30, 2021:

(1) The Company's investments in Jocassee, Sierra JV, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP are measured at fair value using NAV and have not been categorized in the fair value hierarchy.

(2) The Company's investments in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP are measured at fair value using NAV and have not been categorized in the fair value hierarchy.

Three Months Ended

March 31, 2022:

($ in thousands)

and 1 st Lien

Subordinated Debt and 2 nd Lien Notes

Structured Products Equity

Shares Equity Warrants Total

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New investments 258,441 30,065 — 11,936 — 300,442

Transfers into Level 3 — 2,233,600 3,223,510 — 5,457,110

Investments acquired in Sierra merger 210,176 54,177 — 7,065 72 271,490

Transfers into Level 3, net 2,580 — 4,905 — — 7,485

Proceeds from sales of investments (151,580) — — (1,364) (250) (153,194)

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Payment-in-kind interest 308 6,984 — — — 7,292

Accretion of loan discounts 9,946 210,914 — — 220,860

Accretion of loan premium/discount 7 10 — — — 17

Accretion of deferred loan origination revenue 1,390 62 — — — 1,452

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Fair value, end of period $ 1,440,531 $ 295,997 $ 4,986 $ 209,322 $ 72 $ 1,950,908

Nine Months Ended

September 30, 2020:

Three Months Ended

March 31, 2021:

($ in thousands)

and 1 st Lien

Subordinated Debt and 2 nd Lien Notes

Shares Equity Warrants Total

Fair value, beginning of period $ 1,055,717 $ 130,820 $ 44,227 $ 1,134 $ 1,231,898

New investments 227,057 14,478 1,073 — 242,608

Transfers in (out) of Level 3 19,063,921 1,996,471 — 21,060,392

Transfers into Level 3, net — 2,234 424 — 2,658

Proceeds from sales of investments (130,763) — (5,946) — (136,709)

2 unchanged sentences

Payment-in-kind interest 229 7,008 — — 7,237

Accretion of loan premium 16,426 — — 16,426

Accretion of loan premium/discount 3 7 — — 10

Accretion of deferred loan origination revenue 1,213 211 — — 1,424

Realized loss 70,946 (26,253) — 44,693

Unrealized depreciation (12,036,139) 631,992 (297,965) (11,702,112)

Realized gain (loss) 1,605 3 (77) — 1,531

Unrealized appreciation (depreciation) 756 (68) (2,883) (157) (2,352)

Fair value, end of period $ 1,139,381 $ 144,171 $ 36,818 $ 977 $ 1,321,347

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 Unaudited Consolidated Statements of Operations.

Pre-tax net unrealized appreciation (depreciation) on Level 3 investments of $(5.8) million and $3.1 million during the three and nine months ended September 30, 2021, respectively, was related to portfolio company investments that were still held by the Company as of September 30, 2021.

Pre-tax net unrealized appreciation (depreciation) on Level 3 investments of $18.8 million and $(13.8) million during the three and nine months ended months ended September 30, 2020, respectively, was related to portfolio company investments that were still held by the Company as of September 30, 2020.

Exclusive of short-term investments, during the nine months ended September 30, 2021, the Company made investments of approximately $757.8 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the nine months ended September 30, 2021, the Company made investments of $57.5 million in portfolio companies to which it was previously committed to provide such financing.

Exclusive of short-term investments, during the nine months ended September 30, 2020, the Company made investments of approximately $297.0 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the nine months ended September 30, 2020, the Company made investments of $14.8 million in portfolio companies to which it was previously committed to provide such financing.

Pre-tax net unrealized appreciation on Level 3 investments of $21.0 million during the three months ended March 31, 2022 was related to portfolio company investments that were still held by the Company as of March 31, 2022.

Pre-tax net unrealized depreciation on Level 3 investments of $0.4 million during the three months ended March 31, 2021 was related to portfolio company investments that were still held by the Company as of March 31, 2021.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

During the three months ended March 31, 2022, the Company made investments of approximately $741.9 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the three months ended March 31, 2022, the Company made investments of $30.5 million in portfolio companies to which it was previously committed to provide such financing.

During the three months ended March 31, 2021, the Company made investments of approximately $247.6 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the three months ended March 31, 2021, the Company made investments of $27.3 million in portfolio companies to which it was previously committed to provide such financing.

Unsettled Purchases and Sales of Investments

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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.

Investment Income

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The Company writes off any previously accrued and uncollected interest when it is determined that interest is no longer considered collectible.

As of March 31, 2022 and December 31, 2021,

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

the Company had seven and two portfolio companies, respectively, with investments that were on non-accrual.

Dividend income is recorded on the ex-dividend date.

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The Company writes off any accrued and uncollected PIK interest when it is determined that the PIK interest is no longer collectible.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

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Such fees include loan prepayment penalties, structuring fees and loan waiver and amendment fees, and are recorded as investment income when earned.

Fee income for the three and nine months ended September 30, 2021 and 2020 was as follows:

Fee income for the three months ended March 31, 2022 and 2021 was as follows:

Three Months Ended

Nine Months Ended

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

($ in thousands) March 31, 2022 March 31, 2021

Recurring Fee Income:

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Concentration of Credit Risk

As of both September 30, 2021 and December 31, 2020, there were no individual investments representing greater than 10% of the fair value of the Company’s portfolio.

As of September 30, 2021 and December 31, 2020, the Company’s largest single portfolio company investment, excluding short-term investments, represented approximately 5.9% and 2.5%, respectively, of the fair value of the Company’s portfolio, exclusive of short-term investments.

As of both March 31, 2022 and December 31, 2021, there were no individual investments representing greater than 10% of the fair value of the Company’s portfolio.

As of March 31, 2022 and December 31, 2021, the Company’s largest single portfolio company investment represented approximately 5.2% and 5.5%, 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 on equity interests, 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 September 30, 2021, all of the Company's assets were or will be pledged as collateral for the February 2019 Credit Facility.

As of March 31, 2022, all of the Company's assets were or will be pledged as collateral for the February 2019 Credit Facility.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Investments Denominated in Foreign Currencies

As of September 30, 2021, the Company held one investment that was denominated in Canadian dollars, one investment that was denominated in Danish kroner, three investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, 28 investments that were denominated in Euros and 16 investments that were denominated in British pounds sterling.

As of December 31, 2020, the Company held two investments that were denominated in Australian dollars, one investment that w as denominated in Swedish kronas, 17 investments that were denominated in Euros and 11 investments that were denominated in British pounds sterling .

As of March 31, 2022, the Company held one investment that was denominated in Canadian dollars, one investment that was denominated in Danish kroner, eight investments that were denominated in Australian dollars, one investment that was denominated in New Zealand dollars, one investment that was denominated in Swedish kronas, 40 investments that were denominated in Euros and 21 investments that were denominated in British pounds sterling.

As of December 31, 2021, the Company held one investment that was denominated in Canadian dollars, one investment that was denominated in Danish kroner, five investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, 36 investments that were denominated in Euros and 18 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

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

values of the underlying investment.

All fluctuations in fair value are included in net unrealized appreciation (depreciation) of investments in the Company's Unaudited Consolidated Statements of Operations.

In addition, during both the nine months ended September 30, 2021 and September 30, 2020, 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.

In addition, during both the three months ended March 31, 2022 and March 31, 2021, 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 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 Company's Unaudited Consolidated Statements of Operations.

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federal income tax.

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 2018-2020), and has concluded that the provision for uncertain tax positions in the Company's financial statements is appropriate.

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.

The Company makes certain adjustments to the

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

For federal income tax purposes, the cost of investments owned as of September 30, 2021 and December 31, 2020 was approximately $1,634.4 million and $1,486.0 million, respectively.

As of September 30, 2021, net unrealized appreciation on the Company's investments (tax basis) was approximately $21.9 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $41.6 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $19.7 million.

For federal income tax purposes, the cost of investments owned as of March 31, 2022 and December 31, 2021 was approximately $2,399.8 million and $1,792.1 million, respectively.

As of March 31, 2022, net unrealized appreciation on the Company's investments (tax basis) was approximately $15.9 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $78.6 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $62.7 million.

As of December 31, 2021, net unrealized depreciation on the Company's investments (tax basis) was approximately $16.4 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $45.6 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $29.2 million.

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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

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

therefore cause the Company to incur significant amounts of federal income taxes.

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.

2 unchanged sentences

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 and state income taxes, if any, in the Company's Consolidated Statements of Operations, with the related deferred tax assets or liabilities, if any, included in "Accounts payable and accrued liabilities" in the Company's Unaudited and Audited Consolidated Balance Sheets.

The Company had the following borrowings outstanding as of September 30, 2021 and December 31, 2020:

Issuance Date Maturity Date Interest Rate as of September 30, 2021

September 30, 2021 December 31, 2020

As of March 31, 2022, two of the Company’s taxable subsidiaries had a deferred tax asset of $8.6 million pertaining to operating losses and tax basis differences related to certain partnership interests, and the Company’s other taxable subsidiary had a deferred tax liability of $0.8 million pertaining to tax basis differences related to certain partnership interests.

As of December 31, 2021, the Company’s taxable subsidiaries had a deferred tax asset of $8.6 million pertaining to operating losses and tax basis differences related to certain partnership interests.

A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

As of both March 31, 2022 and December 31, 2021, given the losses generated by the entity, the deferred tax assets have been offset by a valuation allowance of $8.6 million.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The Company had the following borrowings outstanding as of March 31, 2022 and December 31, 2021:

Issuance Date

($ in thousands) Maturity Date Interest Rate as of March 31, 2022

March 31, 2022 December 31, 2021

Credit Facilities:

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February 25, 2021 Series E Notes February 26, 2028 4.060% 70,000 70,000

November 23, 2021 - November 2026 Notes November 23, 2026 3.300% 350,000 350,000

Deferred financing fees) (7,159) (7,444)

1 unchanged sentence

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 Company has entered into the February 2019 Credit Facility with 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 by up to $400.0 million, subject to certain conditions and the satisfaction of specified financial covenants.

Effective on November 4, 2021, the Company increased aggregate commitments under the February 2019 Credit Facility to $875.0 million from $800.0 million pursuant to the accordion feature under the February 2019 Credit Facility, which allows for an increase in the total commitments to an aggregate of $1.2 billion subject to certain conditions and the satisfaction of specified financial covenants.

Effective February 25, 2022, the Company increased aggregate commitments under the February 2019 Credit Facility to $965.0 million from $875.0 million pursuant to the accordion feature under the February 2019 Credit Facility, and the allowance for an increase in the total commitments increased to $1.5 billion from $1.2 billion subject to certain conditions and the satisfaction of specified financial covenants.

The Company can borrow foreign currencies directly under the February 2019 Credit Facility.

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(the “August 2018 Credit Facility”), BSF became a subsidiary guarantor and its assets 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.

The revolving period of the February 2019 Credit Facility ends on February 21, 2024, followed by a one-year repayment period with a maturity date of February 21, 2025.

Borrowings denominated in U.S.

Dollars under the February 2019 Credit Facility bear interest, subject to the Company’s election, on a per annum basis equal to (i) the alternate base rate plus 1.25% (or 1.00% for so long as the Company maintains an investment grade credit rating) or (ii) the term Secured Overnight Financing Rate (“SOFR”) plus 2.25% (or 2.00% for so long as the Company maintains an investment grade credit rating) plus a credit spread adjustment of 0.10% for borrowings with an interest period of one month, 0.15% for borrowings with an interest period of three months or 0.25% for borrowings with an interest period of six months.

The alternate 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) one-month term SOFR plus 1.0% plus a credit spread adjustment of 0.10% and (v) 1.0%.

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 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).

In addition, the Company pays a commitment fee of (i) 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 (ii) 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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

the unused portion of the February 2019 Credit Facility is equal to or less than two-thirds of total commitments.

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.

1 unchanged sentence

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 September 30, 2021, the Company was in compliance with all covenants under the February 2019 Credit Facility.

As of September 30, 2021, the Company had U.S.

dollar borrowings of $382.0 million outstanding under the February 2019 Credit Facility with an interest rate of 2.125% (one month LIBOR of 0.125%), borrowings denominated in Swedish kronas of 12.8kr million ($1.5 million U.S.

As of March 31, 2022, the Company was in compliance with all covenants under the February 2019 Credit Facility.

As of March 31, 2022, the Company had U.S.

dollar borrowings of $472.0 million outstanding under the February 2019 Credit Facility with an interest rate of 2.318% (one month SOFR of 0.218%), borrowings denominated in Swedish kronas of 12.8kr million ($1.4 million U.S.

dollars) with an interest rate of 2.000% (one month STIBOR of 0.000%), borrowings denominated in British pounds sterling of £77.6 million ($102.1 million U.S.

dollars) with an interest rate of 2.063% (one month GBP LIBOR of 0.063%), borrowings denominated in Australian dollars of A$36.6 million ($26.4 million U.S.

dollars) with an interest rate of 2.477% (one month SONIA of 0.477%), borrowings denominated in Australian dollars of A$36.6 million ($27.5 million U.S.

dollars) with an interest rate of 2.250% (one month AUD Screen Rate of 0.250%) and borrowings denominated in Euros of €138.6 million ($154.2 million U.S.

4 unchanged sentences

As of December 31, 2021, 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.

dollar borrowings of $377.0 million outstanding under the February 2019 Credit Facility with an interest rate of 2.125% (one month LIBOR of 0.125%), borrowings denominated in Swedish kronas of 12.8kr million ($1.4 million U.S.

dollars) with an interest rate of 2.000% (one month STIBOR of 0.000%), borrowings denominated in British pounds sterling of £68.3 million ($92.5 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 interest rate of 2.00% (weighted average one month EURIBOR of 0.000%).

dollars) with an average interest rate of 2.125% (one month GBP LIBOR of 0.125%), borrowings denominated in Australian dollars of A$36.6 million ($26.6 million U.S.

dollars) with an interest rate of 2.250% (one month AUD Screen Rate of 0.250%) and borrowings denominated in Euros of €138.6 million ($157.6 million U.S.

dollars) with an interest rate of 2.00% (one month EURIBOR of 0.000%).

The borrowings denominated in foreign currencies were translated into U.S.

1 unchanged sentence

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 Unaudited Consolidated Statements of Operations.

As of September 30, 2021 and December 31, 2020, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $662.7 million and $719.7 million, respectively.

As of March 31, 2022 and December 31, 2021, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $757.2 million and $655.2 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.

4 unchanged sentences

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

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

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

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.

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.

2 unchanged sentences

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 September 30, 2021, the Company was in compliance with all covenants under the August 2020 NPA.

As of March 31, 2022, 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 of 1933, as amended (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.

As of both September 30, 2021 and December 31, 2020, the fair value of the outstanding August 2025 Notes was $50.0 million.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding August 2025 Notes was $49.7 million and $52.2 million, respectively.

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.

10 unchanged sentences

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

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 March 31, 2022, the Company was in compliance with all covenants under the November 2020 NPA.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

November Notes at the time outstanding may declare all November Notes then outstanding to be immediately due and payable.

As of September 30, 2021, 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 both September 30, 2021 and 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.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding Series B Notes was $61.1 million and $64.1 million, respectively.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding Series C Notes was $109.0 million and $115.3 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.

15 unchanged sentences

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.

As of September 30, 2021, the Company was in compliance with all covenants under the February 2021 NPA.

As of March 31, 2022, the Company was in compliance with all covenants under the February 2021 NPA.

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.

As of September 30, 2021, the fair value of the outstanding Series D Notes and the Series E Notes was $80.0 million and $70.0 million, respectively.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding Series D Notes were $75.5 million and $79.2 million, respectively.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding Series E Notes was $65.2 million and $68.7 million, respectively.

The fair value determinations of the Series D Notes and Series E Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

1 unchanged sentence

Notes to Unaudited Consolidated Financial Statements — (Continued)

November 2026 Notes

On November 23, 2021, the Company and U.S.

Bank National Association (the “Trustee”) entered into an Indenture (the “Base Indenture”) and a Supplemental Indenture (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”).

The First Supplemental Indenture relates to the Company’s issuance of $350.0 million aggregate principal amount of its 3.300% notes due 2026 (the “November 2026 Notes”).

The November 2026 Notes will mature on November 23, 2026 and may be redeemed in whole or in part at the Company’s option at any time or from time to time at the redemption prices set forth in the Indenture.

The November 2026 Notes bear interest at a rate of 3.300% per year payable semi-annually on May 23 and November 23 of each year, commencing on May 23, 2022.

The November 2026 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the November 2026 Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities.

The Indenture contains certain covenants, including covenants requiring the Company to comply with the asset coverage requirements of Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the 1940 Act, whether or not it is subject to those requirements, and to provide financial information to the holders of the November 2026 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Exchange Act.

These covenants are subject to important limitations and exceptions that are described in the Indenture.

In addition, on the occurrence of a “change of control repurchase event,” as defined in the Indenture, the Company will generally be required to make an offer to purchase the outstanding November 2026 Notes at a price equal to 100% of the principal amount of such November 2026 Notes plus accrued and unpaid interest to the repurchase date.

As of March 31, 2022 and December 31, 2021, the fair value of the outstanding November 2026 Notes was $320.9 million and $346.8 million, respectively.

The fair value determinations of the November 2026 Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

DERIVATIVE INSTRUMENTS

Credit Support Agreement

In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Company’s merger with MVC , 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.

See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the Credit Support Agreement.

Net unrealized appreciation or depreciation on the Credit Support Agreement is included in "Net unrealized appreciation (depreciation) - credit support agreement" in the Company’s Unaudited Consolidated Statements of Operations.

The following tables present the fair value and aggregate unrealized depreciation of the Company's Credit Support Agreement as of September 30, 2021 and December 31, 2020:

As of September 30, 2021:

MVC Credit Support Agreement

In connection with the MVC Acquisition, on December 23, 2020, promptly following the closing of the Company’s merger with MVC , the Company and the Adviser entered into the MVC 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.

See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the MVC Credit Support Agreement.

Net unrealized appreciation or depreciation on the MVC Credit Support Agreement is included in "Net unrealized appreciation (depreciation) - credit support agreements" in the Company’s Unaudited Consolidated Statements of Operations.

The following tables present the fair value and aggregate unrealized depreciation of the MVC Credit Support Agreement as of March 31, 2022 and December 31, 2021:

As of March 31, 2022

($ in thousands)

Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 14,300,006 $ 700,006

Total Credit Support Agreement $ 700,006

MVC Credit Support Agreement Barings LLC 01/01/31 $ 23,000 $ 15,000 $ 1,400

Total MVC Credit Support Agreement $ 1,400

As of December 31, 2021

($ in thousands)

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 $ —

As of September 30, 2021 and December 31, 2020, the fair value of the Credit Support Agreement was $14.3 million and $13.6 million, respectively, and is included in "Credit support agreement" in the accompanying Unaudited and Audited 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 Reference Portfolio, which are all Level 3 inputs.

MVC Credit Support Agreement Barings LLC 01/01/31 $ 23,000 $ 15,400 $ 1,800

Total MVC Credit Support Agreement $ 1,800

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

As of March 31, 2022 and December 31, 2021, the fair value of the MVC Credit Support Agreement was $15.0 million and $15.4 million, respectively, and is included in "Credit support agreements" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

The fair value of the MVC 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 MVC Reference Portfolio, which are all Level 3 inputs.

Sierra Credit Support Agreement

In connection with the Sierra Acquisition, on February 25, 2022, promptly following the closing of the Company’s merger with Sierra, the Company and the Adviser entered into the Sierra Credit Support Agreement, pursuant to which the Adviser has agreed to provide credit support to the Company in the amount of up to $100.0 million relating to the net cumulative realized and unrealized losses on the acquired Sierra investment portfolio over a 10-year period.

See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the Sierra Credit Support Agreement.

Net unrealized appreciation or depreciation on the Sierra Credit Support Agreement is included in "Net unrealized appreciation (depreciation) - credit support agreements" in the Company’s Unaudited Consolidated Statements of Operations.

The following table presents the fair value and aggregate unrealized depreciation of the Sierra Credit Support Agreement as of March 31, 2022:

As of March 31, 2022

($ in thousands)

Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Sierra Credit Support Agreement Barings LLC 04/01/32 $ 100,000 $ 44,400 $ —

Total Sierra Credit Support Agreement $ —

As of March 31, 2022, the fair value of the Sierra Credit Support Agreement was $44.4 million, and is included in “Credit support agreements” in the accompanying Unaudited Consolidated Balance Sheet.

The fair value of the Sierra 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 Sierra Reference Portfolio, which are all Level 3 inputs.

Foreign Currency Forward Contracts

4 unchanged sentences

Notes to Unaudited Consolidated Financial Statements — (Continued)

The following tables presents the Company's foreign currency forward contracts as of September 30, 2021 and December 31, 2020:

As of September 30, 2021:

The following tables present the Company's foreign currency forward contracts as of March 31, 2022 and December 31, 2021:

As of March 31, 2022

($ in thousands)

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) A$9,000,000 $6,523,357 10/06/21 $ (22,179) Derivative liability

Foreign currency forward contract (AUD) A$67,436 $50,505 04/08/22 $ 138 Prepaid expenses and other assets

Foreign currency forward contract (AUD) A$2,098,659 $1,507,742 01/06/22 9,026 Prepaid expenses and other assets

Foreign currency forward contract (CAD) C$6,124,048 $4,797,823 10/06/21 36,200 Prepaid expenses and other assets

Foreign currency forward contract (AUD) $22,755 A$31,386 04/08/22 (815) Derivative liability

Foreign currency forward contract (AUD) $19,490 A$27,000 04/08/22 (787) Derivative liability

Foreign currency forward contract (AUD) $6,494 A$9,050 04/08/22 (302) Derivative liability

Foreign currency forward contract (AUD) $51,174 A$68,223 07/07/22 (146) Derivative liability

Foreign currency forward contract (CAD) C$3,203 $2,559 04/08/22 5 Prepaid expenses and other assets

Foreign currency forward contract (CAD) $2,506 C$3,203 04/08/22 (58) Derivative liability

Foreign currency forward contract (DKK) 2,105,000kr.

$328,520 10/06/21 (428) Derivative liability

Foreign currency forward contract (CAD) $2,549 C$3,190 07/07/22 (5) Derivative liability

Foreign currency forward contract (CAD) $49 C$61 07/07/22 — Prepaid expenses and other assets

Foreign currency forward contract (DKK) 2,116kr.

2 unchanged sentences

04/08/22 6 Prepaid expenses and other assets

Foreign currency forward contract (DKK) $323 2,159kr.

07/07/22 (1) Derivative liability

Foreign currency forward contract (EUR) €2,000 $2,215 04/01/22 10 Prepaid expenses and other assets

Foreign currency forward contract (EUR) €86,555 $96,092 04/08/22 225 Prepaid expenses and other assets

Foreign currency forward contract (EUR) €5,020 $5,701 04/08/22 (116) Derivative liability

Foreign currency forward contract (EUR) $25,366 €23,000 04/08/22 (228) Derivative liability

Foreign currency forward contract (EUR) $8,514 €7,500 04/08/22 168 Prepaid expenses and other assets

Foreign currency forward contract (EUR) $69,071 €61,075 04/08/22 1,109 Prepaid expenses and other assets

Foreign currency forward contract (EUR) $95,469 €85,835 07/07/22 (400) Derivative liability

Foreign currency forward contract (NZD) NZ$11,600 $8,026 04/08/22 42 Prepaid expenses and other assets

Foreign currency forward contract (NZD) $7,995 NZ$11,600 04/08/22 (74) Derivative liability

Foreign currency forward contract (NZD) $8,151 NZ$11,801 07/07/22 (44) Derivative liability

Foreign currency forward contract (GBP) $13,131 £10,000 04/01/22 (35) Derivative liability

1 unchanged sentence

Foreign currency forward contract (GBP) $5,642 £4,220 04/08/22 86 Prepaid expenses and other assets

Foreign currency forward contract (GBP) $6,122 £4,599 04/08/22 67 Prepaid expenses and other assets

Foreign currency forward contract (GBP) $12,612 £9,656 07/07/22 (97) Derivative liability

Foreign currency forward contract (GBP) £10,000 $13,128 07/07/22 35 Prepaid expenses and other assets

Foreign currency forward contract (SEK) 1,875kr $201 04/08/22 — Prepaid expenses and other assets

2 unchanged sentences

Total $ (1,120)

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

As of December 31, 2021

($ in thousands)

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$31,601 $22,849.503 01/06/22 $ 126 Prepaid expenses and other assets

Foreign currency forward contract (AUD) A$2,099 $1,508 01/06/22 18 Prepaid expenses and other assets

Foreign currency forward contract (AUD) $20,727 A$28,700 01/06/22 (139) Derivative liability

Foreign currency forward contract (EUR) $13,472,749 €11,406,604 01/05/21 (483,801) Derivative liability

Foreign currency forward contract (AUD) $3,580 A$5,000 04/08/22 (55) Derivative liability

Foreign currency forward contract (AUD) $18,247 A$25,385.697 04/08/22 (215) Derivative liability

Foreign currency forward contract (CAD) C$3,230 $2,528 01/06/22 29 Prepaid expenses and other assets

Foreign currency forward contract (CAD) C$3,000 $2,425 01/06/22 (50) Derivative liability

Foreign currency forward contract (CAD) $4,881 C$6,230 01/06/22 (51) Derivative liability

Foreign currency forward contract (CAD) $2,506 C$3,203 04/08/22 (29) Derivative liability

Foreign currency forward contract (DKK) 2,142.838kr.

$326 01/06/22 1 Prepaid expenses and other assets

Foreign currency forward contract (DKK) $335 2,142.838kr.

01/06/22 7 Prepaid expenses and other assets

Foreign currency forward contract (DKK) $323 2,115.99kr.

04/08/22 (1) Derivative liability

Foreign currency forward contract (EUR) €52,582.593 $59,524 01/06/22 275 Prepaid expenses and other assets

Foreign currency forward contract (EUR) €5,020 $5,701.2739 04/08/22 19 Prepaid expenses and other assets

Foreign currency forward contract (EUR) $24,722 €21,500 01/06/22 271 Prepaid expenses and other assets

Foreign currency forward contract (EUR) $14,563 €12,900 01/06/22 (108) Derivative liability

Foreign currency forward contract (GBP) $13,554,607 £10,215,299 01/05/21 (409,190) Derivative liability

Foreign currency forward contract (EUR) $20,655 €18,182.593 01/06/22 (23) Derivative liability

Foreign currency forward contract (EUR) $60,413 €53,264.857 04/08/22 (282) Derivative liability

Foreign currency forward contract (EUR) $1,130 €1,000 04/08/22 (10) Derivative liability

Foreign currency forward contract (EUR) $8,514 €7,500 04/08/22 (32) Derivative liability

Foreign currency forward contract (GBP) £9,900 $13,219.519 01/06/22 190 Prepaid expenses and other assets

Foreign currency forward contract (GBP) $13,348.815 £9,900 01/06/22 (60) Derivative liability

Foreign currency forward contract (GBP) $6,121.622 £4,598.707 04/08/22 (104) Derivative liability

Foreign currency forward contract (SEK) 1,791.942kr $198 01/07/22 — Derivative liability

Foreign currency forward contract (SEK) $204 1,791.942kr 01/07/22 6 Prepaid expenses and other assets

Foreign currency forward contract (SEK) $164,325 1,356,628kr 04/06/21 (1,028) Derivative liability

Foreign currency forward contract (SEK) $207 1,874.724kr 04/08/22 — Prepaid expenses and other assets

Total $ (217)

As of September 30, 2021 and December 31, 2020, the total fair value of the Company's foreign currency forward contracts was $0.5 million and $(0.5) million, respectively.

As of March 31, 2022 and December 31, 2021, the total fair value of the Company's foreign currency forward contracts was $(1.1) million and $(0.2) million, 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.

4 unchanged sentences

Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

As of September 30, 2021 and December 31, 2020, the Company believed that it had adequate financial resources to satisfy its unfunded commitments.

The balances of unused commitments to extend financing as of September 30, 2021 and December 31, 2020 were as follows:

Portfolio Company Investment Type September 30, 2021

December 31, 2020

As of March 31, 2022, the Company believed that it had adequate financial resources to satisfy its unfunded commitments.

The balances of unused commitments to extend financing as of March 31, 2022 and December 31, 2021 were as follows:

Portfolio Company

($ in thousands) Investment Type March 31, 2022 December 31, 2021

1888 Industrial Services, LLC(1)(2) Revolver $ 314 $ —

Acclime Holdings HK Limited(1) Delayed Draw Term Loan 1,179 1,179

ADE Holding(1)(3) Committed Capex Line — 91,814

Acclime Holdings HK Limited(1) Delayed Draw Term Loan 110 110

Air Comm Corporation, LLC(1) Delayed Draw Term Loan 11 11

Anju Software, Inc.(1) Delayed Draw Term Loan — 1,981,371

Arch Global Precision, LLC(1) Delayed Draw Term Loan — 4,193,475

Beacon Pointe Advisors, LLC(1) Delayed Draw Term Loan — 363,636

BigHand UK Bidco Limited(1)(4) Acquisition Capex Facility 376,644 —

Air Comm Corporation, LLC(1) Delayed Draw Term Loan 1,448 1,448

Amtech Software(1) Delayed Draw Term Loan 1,527 2,727

Amtech Software(1) Revolver 682 682

AnalytiChem Holding GmbH(1)(2)(3) Delayed Draw Term Loan 6,073 6,207

Aquavista Watersides 2 LTD(1)(2)(4) Bridge Revolver 489 503

Aquavista Watersides 2 LTD(1)(2)(4) Acquisition Facility 3,059 3,147

Astra Bidco Limited(1)(2)(4) Delayed Draw Term Loan 959 2,571

Avance Clinical Bidco Pty Ltd(1)(5) Delayed Draw Term Loan 1,435 3,497

Azalea Buyer, Inc.(1) Delayed Draw Term Loan 962 962

Azalea Buyer, Inc.(1) Revolver 481 481

Bariacum S.A(1)(2)(3) Acquisition Facility 2,114 2,161

Beyond Risk Management, Inc.(1)(2) Delayed Draw Term Loan 2,573 2,573

BigHand UK Bidco Limited(1)(2)(4) Acquisition Facility — 378

Black Angus Steakhouses, LLC(1) Acquisition Facility 417 —

Bounteous, Inc.(1) Delayed Draw Term Loan 2,840 2,840

British Engineering Services Holdco Limited(1)(4) Acquisition Facility — 7,006,008

Brightpay Limited(1)(2)(3) Delayed Draw Term Loan 241 432

Brightpay Limited(1)(2)(3) Delayed Draw Term Loan 141 144

BrightSign LLC(1) Revolver 1,329 1,329

British Engineering Services Holdco Limited(1)(2)(4) Bridge Revolver — 613

Canadian Orthodontic Partners Corp(1)(2)(6) Delayed Draw Term Loan 166,198 —

Brook & Whittle Holding Corp.(1) Delayed Draw Term Loan 852 —

CAi Software, LLC(1) Revolver 943 943

Canadian Orthodontic Partners Corp.(1)(2)(6) Acquisition Facility 120 167

Centralis Finco S.a.r.l.(1)(3) Acquisition Facility 451 461

Ceres Pharma NV(1)(2)(3) Delayed Draw Term Loan 2,103 2,149

CGI Parent, LLC(1)(2) Revolver 1,212 —

Classic Collision (Summit Buyer, LLC)(1)(2) Delayed Draw Term Loan 309 393

CM Acquisitions Holdings Inc.(1) Delayed Draw Term Loan 1,247,359 1,551,602

Contabo Finco S.À R.L(1)(3) Delayed Draw Term Loan 216,163 228,211

Coastal Marina Holdings, LLC(1)(2) PIK Tranche B Term Loan 1,311 1,311

Coastal Marina Holdings, LLC(1)(2) Tranche A Term Loan 3,576 3,576

Command Alkon (Project Potter Buyer, LLC)(1) Delayed Draw Term Loan 6,018 6,018

Coyo Uprising GmbH(1)(2)(3) Delayed Draw Term Loan 874 894

CSL Dualcom(1)(4) Delayed Draw Term Loan 993,478 1,007,182

Crash Champions, LLC(1) Delayed Draw Term Loan 379 5,420

CSL Dualcom(1)(4) Acquisition Term Loan 970 998

Dart Buyer, Inc.(1) Delayed Draw Term Loan 1,163 2,431

DecksDirect, LLC(1) Revolver 58 218

DreamStart Bidco SAS(1)(3) Acquisition Facility 604 617

1 unchanged sentence

Dwyer Instruments, Inc.(1) Delayed Draw Term Loan 692 692

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Portfolio Company

($ in thousands) Investment Type March 31, 2022 December 31, 2021

Eclipse Business Capital, LLC(1) Revolver 10,909 11,818

EMI Porta Holdco LLC(1) Delayed Draw Term Loan 11,212 12,458

EMI Porta Holdco LLC(1) Revolver 2,361 2,966

EPS NASS Parent, Inc.(1) Delayed Draw Term Loan 583 583

F24 (Stairway BidCo GmbH)(1)(3) Acquisition Facility 412,879 323,840

eShipping, LLC(1) Delayed Draw Term Loan 1,650 2,548

eShipping, LLC(1) Revolver 824 1,232

Events Software BidCo Pty Ltd(1)(5) Delayed Draw Term Loan 481 —

F24 (Stairway BidCo GmbH)(1)(2)(3) Delayed Draw Term Loan 396 405

Fineline Technologies, Inc.(1) Delayed Draw Term Loan 180 180

FitzMark Buyer, Inc.(1) Delayed Draw Term Loan — 1,470,588

Foundation Risk Partners, Corp.(1) Delayed Draw Term Loan 3,444,445 4,984,771

Finexvet(1)(3) Acquisition Facility 967 —

FragilePak LLC(1)(2) Delayed Draw Term Loan 2,354 2,354

Heartland, LLC(1)(2) Delayed Draw Term Loan — 5,347,666

Heilbron (f/k/a Sucsez (Bolt Bidco B.V.))(1)(2)(3) Accordion Facility — 10,225,081

Home Care Assistance, LLC(1) Delayed Draw Term Loan 173,697 —

Heartland Veterinary Partners, LLC(1) Delayed Draw Term Loan 657 657

Heavy Construction Systems Specialists, LLC(1) Revolver 2,632 2,632

HW Holdco, LLC (Hanley Wood LLC)(1)(2) Delayed Draw Term Loan 913 1,563

IGL Holdings III Corp.(1) Delayed Draw Term Loan 1,217 1,217

1 unchanged sentence

INOS 19-090 GmbH(1)(2)(3) Acquisition Facility 2,481 2,535

ITI Intermodal, Inc.(1) Delayed Draw Term Loan 103 103

ITI Intermodal, Inc.(1) Revolver 124 124

Jaguar Merger Sub Inc.(1)(2) Delayed Draw Term Loan 1,781 1,961

Jaguar Merger Sub Inc.(1)(2) Revolver 490 490

Jocassee Partners LLC Joint Venture 15,000 20,000

Jon Bidco Limited(1)(2)(7) Capex & Acquisition Facility 1,585 —

Jones Fish Hatcheries & Distributors LLC(1) Revolver 418 —

Kano Laboratories LLC(1)(2) Delayed Draw Term Loan 153 153

Kene Acquisition, Inc.(1) Delayed Draw Term Loan — 322,928

Kano Laboratories LLC(1)(2) Delayed Draw Term Loan 2,830 4,544

Kemmerer Operations LLC(1) Delayed Draw Term Loan 908 —

LAF International(1)(2)(3) Acquisition Facility 178 341

Lambir Bidco Limited(1)(2)(3) Bridge Revolver 920 941

Lambir Bidco Limited(1)(2)(3) Delayed Draw Term Loan 1,841 1,881

LeadsOnline, LLC(1) Revolver 2,603 —

Lifestyle Intermediate II, LLC(1) Revolver 2,500 —

LivTech Purchaser, Inc.(1) Delayed Draw Term Loan 34 82

Marmoutier Holding B.V.(1)(2)(3) Delayed Draw Term Loan 396 405

Marmoutier Holding B.V.(1)(2)(3) Revolver 159 162

Marshall Excelsior Co.(1)(2) Revolver 1,047 —

MC Group Ventures Corporation(1) Delayed Draw Term Loan 817 817

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Portfolio Company Investment Type September 30, 2021

December 31, 2020

Modern Star Holdings Bidco Pty Limited(1)(5) Capex Term Loan 1,072 1,038

Murphy Midco Limited(1)(4) Delayed Draw Term Loan 648 2,617

Narda Acquisitionco., Inc.(1) Revolver 1,311 1,311

Navia Benefit Solutions, Inc.(1) Delayed Draw Term Loan 1,261 1,261

Nexus Underwriting Management Limited(1)(2)(4) Revolver 101 103

Nexus Underwriting Management Limited(1)(2)(4) Acquisition Facility 526 541

Novotech Aus Bidco Pty Ltd(1) Capex & Acquisition Facility 809 —

OA Buyer, Inc.(1) Revolver 1,331 1,331

OAC Holdings I Corp(1) Revolver 685 —

OG III B.V.(1)(2)(3) Acquisition CapEx Facility 671 686

Options Technology Ltd.(1) Delayed Draw Term Loan — 2,604,080

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Portfolio Company

($ in thousands) Investment Type March 31, 2022 December 31, 2021

Omni Intermediate Holdings, LLC(1)(2) Delayed Draw Term Loan — 817

Omni Intermediate Holdings, LLC(1)(2) Delayed Draw Term Loan 2,289 4,357

OSP Hamilton Purchaser, LLC(1) Revolver 187 187

Pacific Health Supplies Bidco Pty Limited(1)(2)(5) CapEx Term Loan 1,325 1,283

PDQ.Com Corporation(1) Delayed Draw Term Loan — 289

Premier Technical Services Group(1)(4) Acquisition Facility — 1,197,505

PDQ.Com Corporation(1) Delayed Draw Term Loan 7,753 10,948

Polara Enterprises, L.L.C.(1)(2) Revolver 545 545

Policy Services Company, LLC(1)(2) Delayed Draw Term Loan 3,772 6,944

Premium Invest(1)(2)(3) Acquisition Facility 1,892 1,933

ProfitOptics, LLC(1) Revolver 484 —

Protego Bidco B.V.(1)(2)(3) Delayed Draw Term Loan 826 844

PSC UK Pty Ltd.(1)(4) Acquisition Facility 527,876 535,157

QPE7 SPV1 BidCo Pty Ltd(1)(5) Acquisition Capex Facility 732,210 —

Questel Unite(1)(2)(3) Cap Acquisition Facility — 10,300,913

Radwell International, LLC(1) Delayed Draw Term Loan — 3,235,947

QPE7 SPV1 BidCo Pty Ltd(1)(2)(5) Acquisition Term Loan — 373

RA Outdoors, LLC(1) Revolver 741 —

Rep Seko Merger Sub LLC(1) Delayed Draw Term Loan 1,305 1,455

Reward Gateway (UK) Ltd(1)(2)(4) Acquisition Facility 657 1,061

Safety Products Holdings, LLC(1)(2) Delayed Draw Term Loan — 6,467,345

Security Holdings B.V.(1)(2)(3) Delayed Draw Term Loan 2,317,900 —

Security Holdings B.V.(1)(2)(3) Revolver 1,158,950 —

Smile Brands Group, Inc.(1)(2) Delayed Draw Term Loan 654,691 2,148,691

Springbrook Software (SBRK Intermediate, Inc.)(1) Delayed Draw Term Loan 2,372,538 3,489,026

SSCP Pegasus Midco Limited(1)(4) Delayed Draw Term Loan 13,207,365 13,389,546

The Hilb Group, LLC(1)(2) Delayed Draw Term Loan 4,070,833 5,545,939

Transit Technologies LLC(1)(2) Delayed Draw Term Loan 1,857,017 6,035,305

USLS Acquisition, Inc.(1) Delayed Draw Term Loan — 450,466

Utac Ceram(1)(2)(3) Delayed Draw Term Loan — 743,327

Waccamaw River(2) Joint Venture 15,680,000 —

W2O Holdings, Inc.(1) Delayed Draw Term Loan 3,831,517 5,989,298

Total unused commitments to extend financing $ 134,460,961 $ 159,236,659

(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.

(6) Actual commitment amount is denominated in Canadian 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 September 30, 2021 and December 31, 2020, the Company had guaranteed € 9.9 million ($11.5 million U.S.

dollars and $12.1 million U.S.

dollars, respectively) 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 Unaudited and Audited 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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

In addition, as of December 31, 2020, the Company agreed to cash collateralize a $3.5 million letter of credit for Security Holdings B.V.

The $3.5 million cash collateralization was reflected as "Restricted cash" on the accompanying Audited Consolidated Balance Sheet as of December 31, 2020.

The letter of credit expired on April 30, 2021, and as of September 30, 2021, none of the Company’s cash was restricted.

Neither the Company, the Adviser, nor the Company’s subsidiaries are currently subject to any material pending legal proceedings, other than ordinary routine litigation incidental to their respective businesses.

The Company, the Adviser, and the Company’s subsidiaries may from time to time, however, be involved in litigation arising out of operations in the normal course of business or otherwise, including in connection with strategic transactions.

Furthermore, third parties may seek to impose liability on the Company in connection with the activities of its portfolio companies.

While the outcome of any current legal proceedings cannot at this time be predicted with certainty, the Company does not expect any current matters will materially affect its financial condition or results of operations;

however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on the Company’s financial condition or results of operations in any future reporting period.

COVID-19 Developments

During the nine months ended September 30, 2021, the Coronavirus and the COVID-19 pandemic continued to have a significant impact on the U.S and global economies.

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.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for the nine months ended September 30, 2021 and 2020:

Nine Months Ended September 30,

Per share data:

Net asset value at beginning of period $ 10.99 $ 11.66

Net investment income(1) 0.67 0.45

Net realized gain (loss) on investments / foreign currency transactions(1) (0.02) (0.77)

Net unrealized appreciation (depreciation) on investments/ CSA / foreign currency transactions(1) 0.36 0.03

Total increase (decrease) from investment operations(1) 1.01 (0.29)

Dividends/distributions paid to stockholders from net investment income (0.60) (0.48)

Purchases of shares in share repurchase plan — 0.05

Loss on extinguishment of debt(1) — (0.01)

Net asset value at end of period $ 11.40 $ 10.97

Market value at end of period(2) $ 11.02 $ 8.00

Shares outstanding at end of period 65,316,085 47,961,753

Net assets at end of period $ 744,821,565 $ 525,976,941

Average net assets $ 737,202,849 $ 513,677,913

Ratio of total expenses, including loss on extinguishment of debt and provision for taxes, to average net assets (annualized)(3) 10.01 % 7.79 %

Ratio of net investment income to average net assets (annualized) 7.98 % 5.65 %

Portfolio turnover ratio (annualized) 46.17 % 30.26 %

Total return(4) 26.83 % (16.51) %

(1) Weighted average per share data—basic and diluted;

per share data was derived by using the weighted average shares outstanding during the applicable period.

(2) Represents the closing price of the Company’s common stock on the last day of the period.

(3) Does not include expenses of underlying investment companies, including joint ventures and short-term investments.

(4) 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.

Total return is not annualized.

SIERRA ACQUISITION

On September 21, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Mercury Acquisition Sub, Inc., a Maryland corporation and a direct wholly owned subsidiary of the Company (“Acquisition Sub”), Sierra Income Corporation, a Maryland corporation (“Sierra”), and Barings.

The Merger Agreement provides that, on the terms and subject to the conditions set forth in the Merger Agreement, Acquisition Sub will merge with and into Sierra, with Sierra continuing as the surviving company and as a wholly owned subsidiary of the Company (the “First Merger”) and, immediately thereafter, Sierra will merge with and into the Company, with the Company continuing as the surviving company (the “Second Merger” and, together with the First Merger, the “Merger”).

The Board and the board of directors of Sierra, including all of the respective independent directors, have approved the Merger Agreement and the transactions contemplated therein.

The parties to the Merger Agreement intend the Merger to be treated as a “reorganization” within the meaning of Section 368(a) of the Code.

In the First Merger, each share of Sierra common stock issued and outstanding immediately prior to the effective time of the First Merger (excluding any shares cancelled pursuant to the Merger Agreement) will be converted into the right to receive (i) $0.9783641 per share in cash, without interest, from Barings (such amount of cash, the “Cash Consideration”) and (ii) 0.44973 (such ratio, as may be adjusted pursuant to the Merger Agreement, the “Exchange Ratio”) of a validly issued, fully paid and non-assessable share of the Company’s common stock (the “Share Consideration” and, together with the Cash Consideration, the “Merger Consideration”).

The Merger Agreement contains representations, warranties and covenants, including, among others, covenants relating to the operation of each of the Company’s and Sierra’s businesses during the period prior to the closing of the Merger.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Company and Sierra have agreed to convene and hold stockholder meetings for the purpose of obtaining the approvals required of the Company’s and Sierra’s stockholders, respectively, and the Board and the board of directors of Sierra have agreed to recommend that their respective stockholders approve the applicable proposals (as described below).

The Merger Agreement provides that Sierra shall not, and shall cause its subsidiaries and instruct its representatives not to, directly or indirectly, solicit proposals relating to alternative transactions, or, subject to certain exceptions, initiate or participate in discussions or negotiations regarding, or provide information with respect to, any proposal for an alternative transaction.

However, the Sierra board of directors may, subject to certain conditions, change its recommendation to the Sierra stockholders or, on payment of a termination fee of $11.0 million to the Company and the reimbursement of up to $2.0 million in expenses incurred by the Company and Barings, terminate the Merger Agreement and enter into an Alternative Acquisition Agreement (as defined in the Merger Agreement) for a Superior Proposal (as defined in the Merger Agreement) if it determines in good faith, after consultation with its outside legal counsel, that failure to do so would be inconsistent with the directors’ duties under applicable law.

Consummation of the First Merger, which is currently anticipated to occur during the first quarter of fiscal year 2022, is subject to certain customary closing conditions, including (1) approval of the First Merger by the holders of at least a majority of the outstanding shares of Sierra common stock entitled to vote thereon, (2) approval of the issuance of the Company’s common stock to be issued in the First Merger by a majority of the votes cast by the Company stockholders on the matter at the Company stockholders meeting, (3) approval of the issuance of the Company’s common stock in connection with the First Merger at a price below the then-current net asset value per share of the Company common stock, if applicable, by the vote specified in Section 63(2)(A) of the 1940 Act, (4) the absence of certain legal impediments to the consummation of the Merger, (5) effectiveness of the registration statement for the Company common stock to be issued as consideration in the First Merger, (6) approval for listing on the New York Stock Exchange of the Company common stock to be issued as consideration in the First Merger, (7) subject to certain materiality standards, the accuracy of the representations and warranties and compliance with the covenants of each party to the Merger Agreement, and (8) required regulatory approvals (including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or early termination thereof).

Barings, as party to the Merger Agreement, agreed to vote all shares of the Company common stock over which it has voting power (other than in its fiduciary capacity) in favor of the proposals to be submitted by the Company to its stockholders for approval relating to the Merger.

In addition, the Company and Sierra will take steps necessary to provide for the repayment at closing of Sierra’s existing loan agreement.

The Merger Agreement also contains certain termination rights in favor of the Company and Sierra, including if the First Merger is not completed on or before March 31, 2022 or if the requisite approvals of the Company stockholders or Sierra stockholders are not obtained.

Further, the Company will enter into an amendment and restatement of the Amended and Restated Advisory Agreement, effective as of the closing of the Merger, to raise the annualized hurdle rate thereunder from 8.0% to 8.25%.

Following the closing of the Merger, the Company will also enter into a credit support agreement with Barings, for the benefit of the combined company, to protect against net cumulative unrealized and realized losses of up to $100.0 million on the acquired Sierra investment portfolio over the next ten years.

The Company is expected to account for the Merger as an asset acquisition 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 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.

If the fair value of the net assets to be acquired exceeds the fair value of the Merger Consideration to be paid by the Company, then the Company would recognize a deemed contribution from Barings in an amount up to approximately $100.0 million.

If the fair value of net assets to be acquired exceeds the fair value of the Merger Consideration to be paid by the Company and by Barings, then the Company would also recognize a purchase accounting gain.

Alternatively, if the fair value of the net assets to be acquired is less than the fair value of the portion of the Merger Consideration to be paid by the Company,

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

then the Company would recognize a purchase accounting loss.

The Company expects any potential gain or loss would be classified as unrealized on the statement of operations until the underlying assets are sold.

The cost of the group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than “non-qualifying” assets (for example cash) and does not give rise to goodwill.

The final allocation of the purchase price will be determined after the Merger is completed and after completion of a final analysis to determine the estimated relative fair values of the acquired assets and liabilities.

SUBSEQUENT EVENTS

Subsequent to September 30, 2021, the Company made approximately $238.5 million of new commitments, of which $164.4 million closed and funded.

The $164.4 million of investments consist of $124.9 million of first lien senior secured debt investments, $14.5 million of second lien senior secured and subordinated debt investments and $25.0 million of equity investments.

The weighted average yield of the debt investments was 6.7%.

In addition, the Company funded $3.8 million of previously committed delayed draw term loans.

On November 9, 2021, the Board declared a quarterly distribution of $0.22 per share payable on December 1, 2021 to holders of record as of November 24, 2021.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements