What changed in this filing

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Item 1A. Risk Factors

2026-05-12 compared with 2025-05-13 · 50 added, 53 removed, 501 unchanged (17% of the section changed)

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• amendments or repeals of legislation, or changes in regulations or regulatory interpretations thereof, and transitions of government, including uncertainty regarding any of the foregoing;

• the national and global political environment, including war, armed conflicts, foreign relations and trading policies;

• the national and global political environment, including government shutdowns, war, armed conflicts, foreign relations and trading policies;

• the impact of potential changes to the Code;

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Given the volatility and dislocation that the capital markets have experienced from time to time, many BDCs have faced, and may in the future face, a challenging environment in which to raise capital.

We may in the future have difficulty accessing debt and equity capital, and a severe disruption in U.S.

We may have difficulty accessing debt and equity capital, and a severe disruption in U.S.

or global financial markets or deterioration in credit and financing conditions could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

In addition, significant changes in the capital markets have had, and may in the future have, a negative effect on the valuations of our investments and on the potential for liquidity events involving our investments.

An inability to raise capital, and any required sale of our investments for liquidity purposes, could have a material adverse impact on our business, financial condition, results of operations, or cash flows.

An inability to raise capital, and any required sale of our investments for liquidity purposes or failure of our portfolio companies to realize liquidity events, could have a material adverse impact on our business, financial condition, results of operations, or cash flows.

Tariffs may adversely affect us or our portfolio companies.

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goods imported by foreign countries could subject us or our portfolio companies to additional risks.

Among other effects, tariffs could increase the cost of production for certain of our portfolio companies or reduce demand for their products, which could affect their results of operations.

Among other effects, tariffs or threat of tariffs could increase the cost of production for certain of our portfolio companies or reduce demand for their products or create uncertainty about either of the foregoing, which could affect their results of operations.

We cannot predict whether, or to what extent, any tariff or other trade protections may affect us or our portfolio companies.

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In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments.

Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce our net assets resulting from operations.

Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations.

Risks Related to Interest Rates

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An increase in market interest rates may lead prospective purchasers of our securities to expect a higher distribution yield.

In addition, higher interest rates have increased our borrowing costs.

As a result, higher market interest rates could to cause the market price of our securities to decrease.

In addition, higher interest rates increase our borrowing costs.

As a result, higher market interest rates could cause the market price of our securities to decrease.

Changes in interest rates may negatively impact our investments and have an adverse effect on our business, financial condition, results of operations, and cash flows.

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As interest rates increase, generally, the cost of borrowing under our Credit Facility increases, which may affect our ability to make new investments on favorable terms or at all.

A substantial portion of our debt investments have variable interest rates that reset periodically and are generally based on SOFR.

As of March 31, 2026, all of our debt investments have variable interest rates that reset periodically and are generally based on SOFR.

If interest rates increase, the operating performance of certain of our portfolio companies may be affected by increasing debt service obligations and, therefore, may affect our results of operations.

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Elevated interest rates could also cause borrowers to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults.

Additionally, as interest rates increase and the corresponding risk of a default by borrowers increases, the liquidity of higher interest rate loans may decrease as fewer investors may be willing to purchase such loans in the secondary market in light of the increased risk of a default by the borrower and the heightened risk of a loss of an investment in such loans.

risk of a loss of an investment in such loans.

Decreases in credit spreads on debt that pays a floating rate of return would have an impact on the income generation of our floating rate assets.

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Ultimately, we expect approximately 90% of the loans in our portfolio to be at variable rates determined on the basis of the SOFR and approximately up to 10% to be at fixed rates.

As of March 31, 2025, based on the total principal balance of debt investments outstanding, our portfolio consisted of 100.0% of loans at variable rates with floors.

As of March 31, 2026, our portfolio consisted of 100.0% of loans at variable rates with floors.

As of March 31, 2026, we did not have any hedging arrangements, such as interest rate hedges, in place.

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Deterioration in a borrower’s financial condition and prospects usually will be accompanied by deterioration in the value of any collateral and a reduction in the likelihood of realizing on any guaranties we may have obtained from the borrower’s management.

As of March 31, 2025, loans to four portfolio companies were on non-accrual status with an aggregate debt cost basis of $90.2 million, or 13.1% of the cost basis of all debt investments in our portfolio.

As of March 31, 2026, loans to three portfolio companies were on non-accrual status with an aggregate debt cost basis of $40.3 million, or 5.4% of the cost basis of all debt investments in our portfolio.

We cannot assure you that our efforts to improve profitability and cash flows of these companies will prove successful.

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• Lower Middle Market businesses may have limited operating histories.

While we intend to continue to target stable companies with proven track records, we may invest in new companies that meet our other investment criteria.

While we intend to continue to target stable companies with proven track records, we may invest in newly established companies that meet our other investment criteria.

Portfolio companies with limited operating histories will be exposed to all of the operating risks that new businesses face and may be particularly susceptible to, among other risks, market downturns, competitive pressures and the departure of key executive officers.

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Additionally, changes in the market environment and other events that may occur over the life of the investment may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned.

Our NAV would be adversely affected if the fair value of our investments are higher than the values that we ultimately realize upon the disposal of such securities.

Our NAV would be adversely affected if the fair value of our investments is higher than the values that we ultimately realize upon the disposal of such securities.

The valuation process for certain of our portfolio holdings creates a conflict of interest.

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The illiquidity of our investments may make it difficult for us to quickly obtain cash equal to the value at which we record our investments if the need arises.

This could cause us to miss important investment opportunities.

This could cause us to miss important investment opportunities to the extent we do not have other sources of capital available.

In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may record substantial realized losses upon liquidation.

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Our portfolio is concentrated in a limited number of companies and industries, which subjects us to an increased risk of significant loss if any one of these companies does not repay us or if the industries experience downturns.

As of March 31, 2025, we had investments in 25 portfolio companies, the five largest of which included SFEG, Ricardo, Brunswick, Nielsen-Kellerman and E3 and comprised $401.7 million, or 41.0%, of our total investment portfolio, at fair value.

As of March 31, 2026, we had investments in 29 portfolio companies, the five largest of which included SFEG, E3, Schylling, Brunswick and Detroit Defense and comprised $582.6 million, or 44.5%, of our total investment portfolio, at fair value.

A consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of such investments or a substantial write-down of any one investment.

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A downturn in a particular industry in which we have invested a significant portion of our total assets could have a materially adverse effect on us.

As of March 31, 2025, our largest industry concentration was in Diversified/Conglomerate Services, representing 17.4 % of our total investments, at fair value.

As of March 31, 2026, our largest industry concentration was in Machinery (Non-Agriculture, Non-Construction, and Non-Electronic), representing 19.8 % of our total investments, at fair value.

Volatility of oil and natural gas prices could impair certain of our portfolio companies’ operations and ability to satisfy obligations to their respective lenders and investors, including us, which could negatively impact our financial condition.

Our portfolio includes companies related to the oil and gas industry with the fair value of these investments representing approximately $125.6 million, or 9.6% of our total portfolio at fair value, as of March 31, 2026.

These businesses provide services to oil and gas companies and are indirectly impacted by the prices of, and demand for, oil and natural gas, which have from time to time experienced volatility, including rapid and significant changes in prices, and such volatility could continue or increase in the future.

These businesses provide services to oil and gas companies and are indirectly impacted by the prices of, and demand for, oil and natural gas, which have from time to time experienced volatility, including recent rapid and significant changes in prices resulting from geopolitical conflict in the Middle East, and such volatility could continue or increase in the future.

A substantial decline in oil and natural gas demand or prices may adversely affect the business, financial condition, cash flows, liquidity or results of operations of these portfolio companies and might impair their ability to meet capital expenditure obligations and financial commitments.

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Our investments are typically long-term and will require several years to realize liquidation events.

Since we generally make five year term loans and hold our loans and equity positions until the loans mature and/or we exit the investment, investors should not expect realization events, if any, to occur over the near term.

In addition, we expect that any equity investments may require several years to appreciate in value and we cannot give any assurance that such appreciation will occur or ultimately be realized.

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We will have a continuing need for capital to finance our investments.

As of March 31, 2025, we, through our wholly-owned subsidiary, Business Investment, had no borrowings outstanding under our Credit Facility, which provides for maximum borrowings of $270.0 million, with a revolving period end date of October 30, 2026 (the “Revolving Period End Date”).

As of March 31, 2026, we, through our wholly-owned subsidiary, Business Investment, had $23.9 million outstanding under our Credit Facility, which provides for maximum borrowings of $300.0 million, with a revolving period end date of October 30, 2026 (the “Revolving Period End Date”).

Our Credit Facility permits us to fund additional loans and investments as long as we are within the conditions and covenants set forth in the credit agreement.

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and (iii) our status as a BDC under the 1940 Act and as a RIC under the Code.

As of March 31, 2025, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $953.3 million, asset coverage on our senior securities representing indebtedness of 204.4%, calculated in accordance with the requirements of Sections 18 and 61 of the 1940 Act, and an active status as a BDC and RIC.

As of March 31, 2026, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $1.2 billion, asset coverage on our senior securities representing indebtedness of 213.8%, calculated in accordance with the requirements of Sections 18 and 61 of the 1940 Act, and an active status as a BDC and RIC.

March 31, 2026, we were in compliance with all covenants under our Credit Facility;

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If our Credit Facility is not renewed or extended by the Revolving Period End Date, all principal and interest will be due and payable on October 30, 2028 (two years after the Revolving Period End Date).

Subject to certain terms and conditions, our Credit Facility may be expanded to a total of $300.0 million through additional commitments of existing or new lenders.

However, if such lenders are unwilling to provide additional commitments under the terms of our Credit Facility, we will be unable to expand our Credit Facility and thus will continue to have limited availability to finance new investments under our Credit Facility.

There can be no guaranty that we will be able to renew, extend or replace our Credit Facility upon its Revolving Period End Date on terms that are favorable to us, if at all.

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• Senior Securities :

We may issue "senior securities representing indebtedness" (including borrowings under our Credit Facility, our 5.00% 2026 Notes, our 4.875% 2028 Notes, our 8.00% 2028 Notes and our 7.875% 2030 Notes) and "senior securities that are stock", up to the maximum amount permitted by the 1940 Act.

We have in the past, and may in the future issue "senior securities representing indebtedness" (including borrowings under our Credit Facility, our 4.875% 2028 Notes, our 6.875% 2028 Notes, our 7.875% 2030 Notes and our 7.125% 2031 Notes) and "senior securities that are stock", up to the maximum amount permitted by the 1940 Act.

The 1940 Act currently permits us, as a BDC, to issue senior securities representing indebtedness and senior securities which are stock, in amounts such that our asset coverage, as defined in Section 18(h) of the 1940 Act, is at least 150% on each such senior security immediately after each issuance of each such senior security.

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If the aggregate fair value of our assets declines, we might be unable to satisfy that 150% requirement.

To satisfy the 150% asset coverage requirement in the event that we are seeking to pay a distribution, we might either have to (i) liquidate a portion of our loan portfolio to repay a portion of our

indebtedness or (ii) issue common stock.

To satisfy the 150% asset coverage requirement in the event that we are seeking to pay a distribution, we might either have to (i) liquidate a portion of our loan portfolio to repay a portion of our indebtedness or (ii) issue common stock.

This may occur at a time when a sale of a portfolio asset may be disadvantageous, or when we have limited access to capital markets on agreeable terms.

In addition, any amounts that we use to service our indebtedness, pay dividends on our preferred stock or for offering costs will not be available for distributions to common stockholders.

Pursuant to Section 61(a)(3) of the 1940 Act, we are permitted, under specified conditions, to issue multiple classes of "senior securities representing indebtedness".

However, pursuant to Section 18(c) of the 1940 Act, we are permitted to issue only one class of "senior securities that are stock".

In addition, any amounts that we use to service our indebtedness, pay dividends on our preferred stock or for offering costs will not be available for distributions to common

stockholders.

Pursuant to Section 61(a)(3) of the 1940 Act, we are permitted, under specified conditions, to issue multiple classes of "senior securities representing indebtedness." However, pursuant to Section 18(c) of the 1940 Act, we are permitted to issue only one class of "senior securities that are stock."

• Common and Convertible Preferred Stock :

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For example, if we issue and sell an additional 10% of our common stock at a 5% discount from NAV, a common stockholder who does not participate in that offering for its proportionate interest will suffer NAV dilution of up to 0.5% or $5 per $1,000 of NAV.

This imposes constraints on our ability to raise capital when our common stock is trading below NAV per common share, as it generally has for the last several years.

This imposes constraints on our ability to raise capital when our common stock is trading below NAV per common share.

As noted above, the 1940 Act prohibits the issuance of multiple classes of "senior securities that are stock."

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The use of leverage, including through the issuance of senior securities that are debt or stock, magnifies the potential for gain or loss on amounts invested and, if we incur additional leverage, this potential will be further magnified.

We have incurred leverage in the past and currently incur leverage through the Credit Facility, the 5.00% 2026 Notes, the 4.875% 2028 Notes, the 8.00% 2028 Notes and 7.875% 2030 Notes and, from time to time, may incur additional leverage to the extent permitted under the 1940 Act.

We have incurred leverage in the past and currently incur leverage through the Credit Facility, the 4.875% 2028 Notes, 6.875% 2028 Notes, 7.875% 2030 Notes and 7.125% 2031 Notes and, from time to time, may incur additional leverage to the extent permitted under the 1940 Act.

The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities.

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(A) The hypothetical return to common stockholders is calculated by multiplying our total assets as of March 31, 2026 by the assumed rates of return and subtracting all interest on our debt expected to be paid during the twelve months following March 31, 2026, and then dividing the resulting difference by our total net assets attributable to common stock as of March 31, 2026.

Based on $1.0 billion in total assets, no borrowings outstanding on our Credit Facility, $127.9 million of 5.00% 2026 Notes, at cost, $134.6 million of 4.875% 2028 Notes, at cost, $74.8 million of 8.00% 2028 Notes, at cost, $126.5 million of 7.875% 2030 Notes, at cost, and $499.1 million in net assets as of March 31, 2025.

Based on $1.3 billion in total assets, $23.9 million of borrowings outstanding on our Credit Facility, $ 127.9 million of 5.00% 2026 Notes, at cost, $134.6 million of 4.875% 2028 Notes, at cost, $ 60.0 million of 6.875% 2028 Notes, at cost, $ 126.5 million of 7.875% 2030 Notes, at cost, and $ 100.0 million of 7.125% 2031 Notes, at cost, and $668.2 million in net assets as of March 31, 2026.

Based on an aggregate outstanding indebtedness of $572.9 million, at cost, as of March 31, 2026, the effective annual cash interest rate of 6.3 % as of that date, our investment portfolio at fair value would have to produce an annual return of at least 3.0 % to cover annual interest payments on the outstanding debt.

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Risks Related to Our External Management

We are dependent upon our key management personnel and the key management personnel of the Adviser, particularly David Gladstone and David Dullum, and on the continued operations of the Adviser, for our future success.

We are dependent upon our key management personnel and the key management personnel of the Adviser, particularly David Dullum, Erika Highland and Christopher Lee, and on the continued operations of the Adviser, for our future success.

We have no employees.

Our chief executive officer, chief operating officer, chief financial officer and treasurer, chief valuation officer, and the employees of the Adviser do not spend all of their time managing our activities and our investment portfolio.

We are particularly dependent upon David Gladstone and David Dullum for their experience, skills, and networks.

Our chief executive officer, chief operating officer, chief financial officer and treasurer, chief valuation officer, chief investment officer and the officers and employees of the Adviser do not spend all of their time managing our activities and our investment portfolio.

We are particularly dependent upon David Dullum and Erika Highland for their experience, skills, and networks.

Our executive officers and the employees of the Adviser allocate some, and in some cases a material portion, of their time to businesses and activities that are not related to our business.

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This could result in increased risk to the value of our investment portfolio.

In addition, the Adviser will receive a capital gains incentive fee based, in part, upon net capital gains realized on our investments.

Unlike the portion of the incentive fee based on income, there is no hurdle rate applicable to the incentive fee based on capital gains.

As a result, the Adviser may seek to invest more capital in investments that are likely to result in capital gains as compared to income producing securities.

This practice could result in us investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns.

We may be obligated to pay the Adviser incentive compensation even if we incur a net decrease in net assets.

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Thus, we may be required to pay the Adviser incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio or we incur a net realized or unrealized loss for that quarter.

For additional information on

incentive compensation under the Advisory Agreement with the Adviser, see “ Business — Investment Advisory and Management Agreement .”

For additional information on incentive compensation under the Advisory Agreement with the Adviser, see “ Business — Investment Advisory and Management Agreement .”

We may be required to pay the Adviser incentive compensation on income accrued, but not yet received in cash.

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For example, Mr.

Gladstone, our chairman and chief executive officer, is the chairman of the board and chief executive officer of the Adviser and Administrator, and the Affiliated Public Funds.

Dullum, our president, is also an executive vice president of the Adviser.

Gladstone, our chairman, is the chairman of the board of all of the Affiliated Public Funds, chairman of the board and chief executive officer of the Adviser, the Administrator, Gladstone Land and Gladstone Alternative, in addition to serving as the president of the Adviser and Gladstone Land.

Dullum, our chief executive officer and president, is also an executive vice president of the Adviser.

While portfolio managers and the officers and other employees of the Adviser devote as much time to the management of us as appropriate to enable the Adviser to perform its duties in accordance with the Advisory Agreement, the portfolio managers and other of the Adviser's officers may have conflicts in allocating their time and services among us, on the one hand, and other investment vehicles managed by the Adviser, on the other hand.

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Moreover, the Adviser may establish or sponsor other investment vehicles which from time to time may have potentially overlapping investment objectives with ours and accordingly may invest in, whether principally or secondarily, asset classes we target.

While the Adviser generally has broad authority to make investments on behalf of the investment vehicles that it advises, the Adviser has adopted investment allocation procedures to address these potential conflicts and intends to direct investment opportunities to the Company or the Affiliated Public Fund with the investment strategy that most closely fits the investment opportunity.

While the Adviser generally has broad authority to make investments on behalf of the investment vehicles that it advises, the Adviser has adopted investment allocation procedures to address these potential conflicts and intends to direct investment opportunities to the Company or the Affiliated Public Funds with the investment strategy that most closely fits the investment opportunity.

Nevertheless, the management of the Adviser may face conflicts in the allocation of investment opportunities to other entities it manages.

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• issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to the Notes, (2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the Notes to the extent of the values of the assets securing such debt, (3) indebtedness of ours that is guaranteed by one or more of our subsidiaries and which therefore is structurally senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to our equity interests in our subsidiaries and therefore rank structurally senior to the Notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A) as modified by Section 61(a)(2) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, which generally prohibit us incurring additional debt or issuing additional debt or preferred securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such incurrence or issuance;

• pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the Notes, including preferred stock and any subordinated indebtedness, in each case other than dividends, purchases, redemptions or payments that would cause our asset coverage to fall below the threshold specified in Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act or any successor provisions thereto, whether or not we are subject to such provisions of the 1940 Act, giving effect to any no-action relief granted by the SEC to another BDC and upon which we may reasonably rely (or to us if we determine to seek such similar SEC no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act to maintain the BDC’s status as a RIC under Subchapter M of the Code;

distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act to maintain the BDC’s status as a RIC under Subchapter M of the Code;

• sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);

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If our operating performance declines, we may in the future need to refinance or restructure our debt, including the Notes, sell assets, reduce or delay capital investments, seek to raise additional capital or seek to obtain waivers from the required lenders under the Credit Facility or other debt that we may incur in the future to avoid being in default.

If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under the Notes or our other debt.

If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under the Notes or our

If we breach our covenants under the Credit Facility or other debt and seek a waiver, we may not be able to obtain a waiver from the required lenders or holders.

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We may choose to redeem the Notes when prevailing interest rates are relatively low.

At any time with respect to the 5.00% 2026 Notes and the 4.875% 2028 Notes, on or after August 1, 2025, with respect to the 8.00% 2028 Notes and on or after February 1, 2027, with respect to the 7.875% 2030 Notes, we may choose to redeem the Notes from time to time, especially if prevailing interest rates are lower than the rate borne by the Notes.

Each series of Notes is, or will in the future be, subject to redemption at our option.

We may choose to redeem such Notes from time to time, especially if prevailing interest rates are lower than the rate borne by the Notes.

If prevailing rates are lower at the time of redemption, and we redeem the Notes, you likely would not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the Notes being redeemed.

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Recent technological advances in artificial intelligence and machine learning technology pose risks to our Company and our portfolio companies.

We and our portfolio companies could be exposed to the risks of artificial intelligence and machine learning technology if third-party service providers or any counterparties, whether or not known to us, also use artificial intelligence and machine learning technology in their business activities.

We and our portfolio companies could be exposed to the risks of artificial intelligence and

machine learning technology if third-party service providers or any counterparties, whether or not known to us, also use artificial intelligence and machine learning technology in their business activities.

We and our portfolio companies may not be in a position to control the use of artificial intelligence and machine learning technology in third-party products or services.

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Artificial intelligence and machine learning technology and its applications, including in the private investment and financial sectors, continue to develop rapidly, and it is impossible to predict the future risks that may arise from such developments.

We are subject to risks related to corporate social responsibility.

Our business (including that of our portfolio companies) faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities, which are increasingly considered to contribute to the long-term sustainability of a company’s performance.

A variety of organizations measure the performance of companies on ESG topics, and the results of these assessments are widely publicized.

Adverse incidents with respect to ESG activities could impact the value of our brand, our relationship with future portfolio companies, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations.

Additionally, new regulatory initiatives related to ESG that are applicable to us and our portfolio companies could adversely affect our business.

Compliance with these rules may be onerous and expensive.

Further, compliance with any new laws, regulations or disclosure obligations increases our regulatory burden and could make compliance more difficult and expensive, affect the manner in which we or our portfolio companies conduct our businesses and adversely affect our profitability.

We are dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.

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We may experience fluctuations in our quarterly and annual operating results due to a number of factors, including, among others, variations in our investment income, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, rapidly changing valuation of our portfolio companies, placing and removing investments on non-accrual status, the degree to which we encounter competition in our markets, the ability to sell investments at attractive terms, the ability to fund and close suitable investments, and general economic conditions, including the impacts of inflation and elevated interest rates.

The majority of our portfolio companies are in industries that are directly impacted by inflation, such as manufacturing and consumer goods and services.

Our portfolio companies may not be able to pass on to customers increases in their costs of production which could greatly affect their operating results,

impacting their ability to service and repay our loans.

The majority of our portfolio companies are in industries that

are directly impacted by inflation, such as manufacturing and consumer goods and services.

Our portfolio companies may not be able to pass on to customers increases in their costs of production which could greatly affect their operating results, impacting their ability to service and repay our loans.

In addition, any potential future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments.

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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-K

Item 1A. Risk Factors