MidCap Financial Investment Corp 10-Q

10-Q 1 ainv2022q310-q.htm 10-Q Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00646 APOLLO INVESTMENT CORPORATION (Exact name of Registrant as specified in its charter) Maryland 52-2439556 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 9 West 57 th Street 37th Floor New York, New York 10019 (Address of principal executive offices) (Zip Code) (212) 515-3450 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value AINV NASDAQ Global Select Market Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨ Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨ (Do not check if a smaller reporting company) Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of February 2, 2022 was 63,647,240 APOLLO INVESTMENT CORPORATION Table of Contents Page PART I. FINANCIAL INFORMATION Item 1. Financial Statements 1 Statements of Assets and Liabilities Dec ember 3 1 , 2021 and March 31, 2021 1 Statements of Operations Three and n ine months ended Dec ember 3 1 , 2021 and Dec ember 3 1 , 2020 2 Statements of Changes in Net Assets Three and n ine months ended Dec ember 3 1 , 2021 and Dec ember 3 1 , 2020 3 Statements of Cash Flows Nine months ended Dec ember 3 1 , 2021 and Dec ember 3 1 , 2020 4 Schedule of Investments Dec ember 3 1 , 2021 5 Schedule of Investments March 31, 2021 30 Notes to Financial Statements 59 Report of Independent Registered Public Accounting Firm 85 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 86 Item 3. Quantitative and Qualitative Disclosures About Market Risk 103 Item 4. Controls and Procedures 105 PART II. OTHER INFORMATION Item 1. Legal Proceedings 106 Item 1A. Risk Factors 106 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 106 Item 3. Defaults Upon Senior Securities 109 Item 4. Mine Safety Disclosures 109 Item 5. Other Information 109 Item 6. Exhibits 110 Signatures 111 Table of Contents PART I. FINANCIAL INFORMATION In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise. Item 1. Financial Statements APOLLO INVESTMENT CORPORATION STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) December 31, 2021 March 31, 2021 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliated investments (cost — $2,017,543 and $1,871,073, respectively) $ 1,994,935 $ 1,844,627 Non-controlled/affiliated investments (cost — $130,890 and $133,428, respectively) 67,345 50,874 Controlled investments (cost — $643,917 and $711,898, respectively) 532,563 553,650 Cash and cash equivalents 22,367 50,180 Foreign currencies (cost — $12,024 and $4,462 , respectively) 12,100 4,444 Receivable for investments sold 851 1,351 Interest receivable 12,185 13,135 Dividends receivable 4,751 3,793 Deferred financing costs 18,187 21,528 Prepaid expenses and other assets 932 907 Total Assets $ 2,666,216 $ 2,544,489 Liabilities Debt $ 1,587,376 $ 1,465,371 Distributions payable 22,999 23,493 Management and performance-based incentive fees payable 14,568 8,666 Interest payable 9,363 2,096 Accrued administrative services expense 416 794 Other liabilities and accrued expenses 7,218 7,739 Total Liabilities $ 1,641,940 $ 1,508,159 Commitments and contingencies (Note 8) Net Assets $ 1,024,276 $ 1,036,330 Net Assets Common stock, $0.001 par value (130,000,000 shares authorized; 63,707,845 and 65,259,176 shares issued and outstanding, respectively) $ 63 $ 65 Capital in excess of par value 2,079,530 2,099,876 Accumulated under-distributed (over-distributed) earnings (1,055,317) (1,063,611) Net Assets $ 1,024,276 $ 1,036,330 Net Asset Value Per Share $ 16.08 $ 15.88 See notes to financial statements. 1 Table of Contents APOLLO INVESTMENT CORPORATION STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Investment Income Non-controlled/non-affiliated investments: Interest income (excluding Payment-in-kind (“PIK”) interest income) $ 42,466 $ 44,097 $ 121,560 $ 137,273 Dividend income 161 753 558 753 PIK interest income 629 1,627 2,421 4,025 Other income 1,575 1,246 3,756 1,792 Non-controlled/affiliated investments: Interest income (excluding PIK interest income) 49 61 143 73 Dividend income 310 323 959 1,000 PIK interest income 19 — 53 — Other income — — — — Controlled investments: Interest income (excluding PIK interest income) 9,430 6,257 25,928 18,589 Dividend income — — 2,059 1,691 PIK interest income 334 — 977 728 Other income — — — — Total Investment Income $ 54,973 $ 54,364 $ 158,414 $ 165,924 Expenses Management fees $ 9,232 $ 8,957 $ 27,203 $ 27,743 Performance-based incentive fees 5,367 — 10,638 — Interest and other debt expenses 14,133 13,213 40,740 42,450 Administrative services expense 1,441 1,201 4,426 3,590 Other general and administrative expenses 2,410 2,813 6,742 8,036 Total expenses 32,583 26,184 89,749 81,819 Management and performance-based incentive fees waived — — — — Performance-based incentive fee offset (31) — (178) — Expense reimbursements (77) (77) (229) (286) Net Expenses $ 32,475 $ 26,107 $ 89,342 $ 81,533 Net Investment Income $ 22,498 $ 28,257 $ 69,072 $ 84,391 Net Realized and Change in Unrealized Gains (Losses) Net realized gains (losses): Non-controlled/non-affiliated investments $ (582) $ (6,196) $ 2,221 $ (14,235) Non-controlled/affiliated investments — (632) 541 (4,285) Controlled investments — — (65,300) — Foreign currency transactions (59) 117 (2,808) 393 Net realized gains (losses) (641) (6,711) (65,346) (18,127) Net change in unrealized gains (losses): Non-controlled/non-affiliated investments (1,771) 25,716 3,839 57,965 Non-controlled/affiliated investments 1,575 5,193 19,008 2,187 Controlled investments (901) (10,447) 46,894 (39,465) Foreign currency translations (219) (8,842) 4,658 (17,502) Net change in unrealized gains (losses) (1,316) 11,620 74,399 3,185 Net Realized and Change in Unrealized Gains (Losses) $ (1,957) $ 4,909 $ 9,053 $ (14,942) Net Increase (Decrease) in Net Assets Resulting from Operations $ 20,541 $ 33,166 $ 78,125 $ 69,449 Earnings (Loss) Per Share — Basic $ 0.32 $ 0.51 $ 1.21 $ 1.06 See notes to financial statements. 2 Table of Contents APOLLO INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (In thousands, except share data) Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Operations Net investment income $ 22,498 $ 28,257 $ 69,072 $ 84,391 Net realized gains (losses) (641) (6,711) (65,346) (18,127) Net change in unrealized gains (losses) (1,316) 11,620 74,399 3,185 Net Increase (Decrease) in Net Assets Resulting from Operations $ 20,541 $ 33,166 $ 78,125 $ 69,449 Distributions to Stockholders Distribution of net investment income $ (22,999) $ (23,493) $ (69,849) $ (76,353) Distribution of return of capital — — — — Net Decrease in Net Assets Resulting from Distributions to Stockholders $ (22,999) $ (23,493) $ (69,849) $ (76,353) Capital Share Transactions Repurchase of common stock $ (12,399) $ — $ (20,330) $ — Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions $ (12,399) $ — $ (20,330) $ — Net Assets Net increase (decrease) in net assets during the period $ (14,857) $ 9,673 $ (12,054) $ (6,904) Net assets at beginning of period 1,039,133 1,007,738 1,036,330 1,024,315 Net Assets at End of Period $ 1,024,276 $ 1,017,411 $ 1,024,276 $ 1,017,411 Capital Share Activity Shares repurchased during the period (954,806) — (1,551,331) — Shares issued and outstanding at beginning of period 64,662,651 65,259,176 65,259,176 65,259,176 Shares Issued and Outstanding at End of Period 63,707,845 65,259,176 63,707,845 65,259,176 See notes to financial statements. 3 Table of Contents APOLLO INVESTMENT CORPORATION STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended December 31, 2021 2020 Operating Activities Net increase (decrease) in net assets resulting from operations $ 78,125 $ 69,449 Net realized (gains) losses 65,346 18,127 Net change in unrealized (gains) losses (74,399) (3,185) Net amortization of premiums and accretion of discounts on investments (6,868) (8,699) Accretion of discount on notes 533 447 Amortization of deferred financing costs 3,883 3,798 Increase in gains/(losses) from foreign currency transactions (2,802) 408 PIK interest and dividends capitalized (3,715) (4,901) Changes in operating assets and liabilities: Purchases of investments (920,807) (400,822) Proceeds from sales and repayments of investments 793,394 720,614 Decrease (increase) in interest receivable 950 4,511 Decrease (increase) in dividends receivable (958) 1,550 Decrease (increase) in prepaid expenses and other assets (25) (534) Increase (decrease) in management and performance-based incentive fees payable 5,902 (1,332) Increase (decrease) in interest payable 7,267 3,482 Increase (decrease) in accrued administrative services expense (378) (293) Increase (decrease) in other liabilities and accrued expenses (521) 838 Net Cash Used in/Provided by Operating Activities $ (55,073) $ 403,458 Financing Activities Issuances of debt $ 430,005 $ 80,481 Payments of debt (304,177) (381,823) Financing costs paid and deferred (333) (10,171) Repurchase of common stock (20,330) — Distributions paid (70,343) (82,227) Net Cash Used in/Provided by Financing Activities $ 34,822 $ (393,740) Cash, Cash Equivalents and Foreign Currencies Net increase (decrease) in cash, cash equivalents and foreign currencies during the period $ (20,251) $ 9,718 Effect of foreign exchange rate changes on cash and cash equivalents 94 780 Cash, cash equivalents and foreign currencies at beginning of period 54,624 43,676 Cash, Cash Equivalents and Foreign Currencies at the End of Period $ 34,467 $ 54,174 Supplemental Disclosure of Cash Flow Information Cash interest paid $ 29,057 $ 34,755 Non-Cash Activity PIK income $ 3,451 $ 4,753 See notes to financial statements. 4 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Advertising, Printing & Publishing FingerPaint Marketing KL Charlie Acquisition Company First Lien Secured Debt L+625, 1.00% Floor 12/30/26 $ 30,875 $ 22,411 $ 22,566 (9)(21)(23) (26)(28) First Lien Secured Debt - Revolver L+625, 1.00% Floor 12/30/26 2,190 (18) (22) (8)(9)(21) (23) KL Charlie Co-Invest, L.P. Common Equity - Common Stock N/A N/A 218,978 Shares 219 344 (9)(13) 22,612 22,888 Hero Digital HRO (Hero Digital) Holdings, LLC First Lien Secured Debt L+600, 1.00% Floor 11/18/28 27,234 19,111 19,303 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+600, 1.00% Floor 11/18/26 2,553 (50) (26) (8)(9)(20) (21)(23) HRO Holdings I LP Common Equity - Common Stock N/A N/A 213 Shares 213 213 (9)(13)(25) 19,274 19,490 Total Advertising, Printing & Publishing $ 41,886 $ 42,378 Aerospace & Defense Erickson Inc Erickson Inc First Lien Secured Debt - Revolver L+750, 1.50% Floor 04/28/22 $ 32,250 $ 20,722 $ 20,446 (9)(20)(21) (23)(28) First Lien Secured Debt - Revolver 13.50% 04/28/22 3,750 3,750 3,713 (9)(23) Total Aerospace & Defense $ 24,472 $ 24,159 Automotive Club Car Wash Club Car Wash Operating, LLC First Lien Secured Debt L+650, 1.00% Floor 06/16/27 $ 29,982 $ 20,400 $ 20,493 (9)(21)(23) (29) First Lien Secured Debt - Revolver L+650, 1.00% Floor 06/16/27 2,438 2,398 2,406 (9)(23)(29) 22,798 22,899 Crowne Automotive Vari-Form Group, LLC First Lien Secured Debt 11.00% (7.00% Cash plus 4.00% PIK) 02/02/23 5,860 893 293 (9)(14) Vari-Form Inc. First Lien Secured Debt 11.00% (7.00% Cash plus 4.00% PIK) 02/02/23 2,110 391 105 (9)(14) 1,284 398 K&N Parent, Inc. K&N Parent, Inc. Second Lien Secured Debt L+875, 1.00% Floor 10/21/24 23,765 23,583 21,507 (28) Truck-Lite Co., LLC TL Lighting Holdings, LLC Common Equity - Equity N/A N/A 350 Shares 350 406 (9)(13) Truck-Lite Co., LLC First Lien Secured Debt L+625, 1.00% Floor 12/14/26 31,363 29,709 29,602 (9)(21)(23) (27)(28) First Lien Secured Debt - Revolver L+625, 1.00% Floor 12/13/24 3,052 (29) (35) (8)(9)(20) (21)(23) 30,030 29,973 Total Automotive $ 77,695 $ 74,777 Aviation and Consumer Transport Merx Aviation Finance, LLC Merx Aviation Finance, LLC (5) First Lien Secured Debt - Revolver 10.00% 10/31/23 $ 275,177 $ 275,000 $ 275,000 (20)(23) Common Equity - Membership Interests N/A N/A N/A 35,800 43,241 (25) 310,800 318,241 Primeflight PrimeFlight Aviation Services, Inc. First Lien Secured Debt L+625, 1.00% Floor 05/09/24 17,384 17,186 17,281 (9)(26) Total Aviation and Consumer Transport $ 327,986 $ 335,522 See notes to financial statements. 5 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Beverage, Food & Tobacco Berner Foods Berner Food & Beverage, LLC First Lien Secured Debt L+650, 1.00% Floor 07/30/27 $ 31,041 $ 30,375 $ 30,886 (9)(29) First Lien Secured Debt - Revolver L+650, 1.00% Floor 07/30/26 2,247 529 565 (9)(21)(23) (29) First Lien Secured Debt - Revolver P+550 07/30/26 634 621 631 (9)(23)(34) 31,525 32,082 Bolthouse Farms Wm. Bolthouse Farms, Inc. Common Equity - Common Stock N/A N/A 1,000,000 Shares 1,001 990 (13) Hive FCP-Hive Holdings, LLC Preferred Equity - Preferred Equity N/A N/A 589 Shares 448 475 (9)(13)(25) Common Equity - Common Stock N/A N/A 589 Shares 3 50 (9)(13)(25) Hive Intermediate, LLC First Lien Secured Debt L+600, 1.00% Floor 09/22/27 17,166 16,849 16,995 (9)(26) First Lien Secured Debt - Revolver L+600, 1.00% Floor 09/22/27 2,326 422 442 (9)(21)(23) (26) 17,722 17,962 Orgain, Inc. Butterfly Fighter Co-Invest, L.P. Common Equity - Membership Interests N/A N/A 1,000,000 Shares 1,005 1,000 Rise Baking Ultimate Baked Goods Midco LLC First Lien Secured Debt L+625, 1.00% Floor 08/13/27 26,757 26,121 26,096 (9)(29) First Lien Secured Debt - Revolver L+625, 1.00% Floor 08/13/27 3,243 1,626 1,623 (9)(20)(21) (23)(28)(29) 27,747 27,719 TNT Crust LLC TNT Crust LLC First Lien Secured Debt L+675, 1.00% Floor 11/06/23 21,655 21,406 21,113 (9)(28) First Lien Secured Debt - Revolver L+675 Cash plus 1.00% PIK, 1.00% Floor 11/06/23 3,252 3,069 3,011 (9)(21)(23) (28)(29) Common Equity - Series A Units N/A N/A 244 Shares 30 136 (9)(13) 24,505 24,260 Turkey Hill IC Holdings LLC Common Equity - Series A Units N/A N/A 169 Shares 169 273 (9)(13) THLP CO. LLC First Lien Secured Debt L+600, 1.00% Floor 05/31/25 25,124 24,811 24,369 (9)(26) First Lien Secured Debt - Revolver P+500 05/31/24 4,494 2,878 2,787 (9)(20)(21) (23)(34) 27,858 27,429 Total Beverage, Food & Tobacco $ 131,363 $ 131,442 Business Services Access Information Access CIG, LLC Second Lien Secured Debt L+775, 0.00% Floor 02/27/26 $ 15,900 $ 15,820 $ 15,764 (26) AlpineX Alpinex Opco, LLC First Lien Secured Debt L+600, 1.00% Floor 12/27/27 16,383 11,633 11,632 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+600, 1.00% Floor 12/27/27 1,117 (22) (22) (8)(9)(21) (23) 11,611 11,610 Ambrosia Buyer Corp. Ambrosia Buyer Corp. Second Lien Secured Debt 9.00% 08/28/25 21,429 19,069 5,657 (14) See notes to financial statements. 6 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) AML Rightsource Gabriel Partners, LLC First Lien Secured Debt L+600, 1.00% Floor 09/21/26 31,531 30,951 31,291 (9)(29) First Lien Secured Debt - Revolver L+625, 1.00% Floor 09/21/26 665 (14) (5) (8)(9)(21) (23) 30,937 31,286 Claritas Claritas, LLC First Lien Secured Debt L+575, 1.00% Floor 12/21/23 3,671 3,656 3,635 (9)(26) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/21/23 1,031 73 67 (9)(21)(23) (26) 3,729 3,702 Continuum Continuum Global Solutions, LLC First Lien Secured Debt - Revolver L+550, 1.00% Floor 10/29/24 20,000 11,728 11,463 (9)(21)(23) (26) Preferred Equity - Preferred Equity N/A N/A 775 Shares 78 78 (9)(13) 11,806 11,541 Electro Rent Corporation Electro Rent Corporation Second Lien Secured Debt L+900, 1.00% Floor 01/31/25 34,235 33,764 34,064 (9)(28) Elo Touch TGG TS Acquisition Company First Lien Secured Debt - Revolver L+650, 0.00% Floor 12/14/23 1,750 250 216 (21)(23)(26) Ensemble Health EHL Merger Sub, LLC First Lien Secured Debt - Revolver L+325, 0.00% Floor 08/01/24 4,155 (198) (119) (8)(21)(23) Jacent Jacent Strategic Merchandising First Lien Secured Debt L+625, 1.00% Floor 04/23/24 22,142 21,983 21,743 (9)(28)(29) First Lien Secured Debt - Revolver L+625, 1.00% Floor 04/23/24 3,500 3,469 3,430 (9)(21)(23) (28)(29) Common Equity - Common Stock N/A N/A 5,000 Shares 500 144 (9)(13) JSM Equity Investors, L.P. Preferred Equity - Class P Partnership Units N/A N/A 114 Shares 11 11 (9)(13) 25,963 25,328 Jones & Frank JF Acquisition, LLC First Lien Secured Debt L+550, 1.00% Floor 07/31/24 13,234 13,094 13,083 (9)(28)(30) First Lien Secured Debt - Revolver L+550, 1.00% Floor 07/31/24 1,569 1,427 1,426 (9)(21)(23) (28)(30) 14,521 14,509 MAKS Trident Bidco Limited First Lien Secured Debt L+550, 1.00% Floor 11/08/25 33,688 33,033 33,677 (9)(17)(29) Naviga Naviga Inc. (fka Newscycle Solutions, Inc.) First Lien Secured Debt L+700, 1.00% Floor 12/29/22 12,213 12,130 12,183 (9)(28) First Lien Secured Debt - Revolver L+700, 1.00% Floor 12/29/22 500 277 279 (9)(21)(23) (26) 12,407 12,462 PSE Graffiti Buyer, Inc. First Lien Secured Debt L+575, 1.00% Floor 08/10/27 8,435 5,686 5,653 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 08/10/27 1,307 215 213 (9)(21)(23) (27) Graffiti Parent, LP Common Equity - Common Stock N/A N/A 2,439 Shares 244 241 (9)(13)(25) 6,145 6,107 See notes to financial statements. 7 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) PSI Services, LLC Lifelong Learner Holdings, LLC First Lien Secured Debt L+575, 1.00% Floor 10/19/26 34,062 33,587 32,430 (9)(28)(29) First Lien Secured Debt - Revolver L+575, 1.00% Floor 10/20/25 2,985 2,945 2,861 (9)(21)(23) (28) 36,532 35,291 Soliant Soliant Health, Inc. Common Equity - Membership Interests N/A N/A 300 Shares 300 863 (9) US Legal Support US Legal Support Investment Holdings, LLC Common Equity - Series A-1 Units N/A N/A 631,972 Shares 632 986 (9)(13) USLS Acquisition, Inc. First Lien Secured Debt L+550, 1.00% Floor 12/02/24 24,064 23,827 23,616 (9)(28) First Lien Secured Debt - Revolver L+550, 1.00% Floor 12/02/24 1,501 200 186 (9)(20)(21) (23)(28) First Lien Secured Debt - Revolver P+475, 1.00% Floor 12/02/24 107 106 105 (9)(23)(34) 24,765 24,893 Total Business Services $ 280,454 $ 266,851 Chemicals, Plastics & Rubber Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) Carbonfree Chemicals Holdings LLC (4) Common Equity - Common Equity / Interest N/A N/A 2,354 Shares $ 46,295 $ 44,990 (3)(13)(16) (25) Carbonfree Chemicals SA LLC (4) Common Equity - Class B Units N/A N/A 3,152 Shares 32,434 — (3)(13)(16) (25) 78,729 44,990 Westfall Technik, Inc. Westfall Technik, Inc. First Lien Secured Debt L+575, 1.00% Floor 09/13/24 $ 15,656 15,504 15,300 (9)(28) First Lien Secured Debt L+625, 1.00% Floor 09/13/24 5,653 5,561 5,558 (9)(28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 09/13/24 2,019 2,001 1,973 (9)(23)(28) 23,066 22,831 Total Chemicals, Plastics & Rubber $ 101,795 $ 67,821 Construction & Building Englert Gutter Buyer, Inc. First Lien Secured Debt L+575, 1.00% Floor 03/06/25 $ 28,466 $ 28,140 $ 28,147 (9)(26) First Lien Secured Debt - Revolver P+475 03/06/24 2,727 380 371 (9)(20)(21) (23)(34) Gutter Holdings, LP Common Equity - Common Stock N/A N/A 500 Shares 500 1,049 (9) Total Construction & Building $ 29,020 $ 29,567 Consumer Goods – Durable A&V A&V Holdings Midco, LLC First Lien Secured Debt - Revolver L+450, 1.00% Floor 03/10/25 $ 1,505 $ (87) $ (54) (8)(21)(23) KDC KDC US Holdings First Lien Secured Debt - Revolver L+325, 0.00% Floor 12/21/23 6,020 4,909 4,838 (20)(21)(23) (26) KLO Holdings, LLC 1244311 B.C. Ltd. (4) First Lien Secured Debt L+500, 1.00% Floor 09/30/25 2,978 2,978 2,795 (17)(28) First Lien Secured Debt L+500 PIK, 1.00% Floor 09/30/25 1,062 1,062 991 (17)(28) Common Equity - Common Stock N/A N/A 1,000,032 Shares 1,000 886 (13)(17)(19) (25) GSC Technologies Inc. (4) First Lien Secured Debt L+500 Cash plus 5.00% PIK, 1.00% Floor 09/30/25 211 211 196 (17)(28) 5,251 4,868 See notes to financial statements. 8 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Liqui-Box Liqui-Box Holdings, Inc. First Lien Secured Debt - Revolver L+450, 1.00% Floor 02/26/25 3,204 1,640 1,658 (20)(21)(23) (28) First Lien Secured Debt - Revolver P+350, 1.00% Floor 02/26/25 356 354 356 (23)(34) 1,994 2,014 NSi Industries Wildcat BuyerCo, Inc. First Lien Secured Debt L+575, 1.00% Floor 02/27/26 15,771 12,789 12,890 (21)(23)(28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 02/27/26 725 (11) (17) (8)(21)(23) Wildcat Parent LP Common Equity - Common Stock N/A N/A 1,070 Shares 107 160 (13) 12,885 13,033 Sorenson Holdings, LLC Sorenson Holdings, LLC Common Equity - Membership Interests N/A N/A 587 Shares — 390 (10)(13) Total Consumer Goods – Durable $ 24,952 $ 25,089 Consumer Goods – Non-durable 3D Protein Protein For Pets Opco, LLC First Lien Secured Debt - Revolver L+500, 1.00% Floor 05/31/24 $ 2,219 $ (28) $ — (9)(21)(23) Dan Dee Project Comfort Buyer, Inc. First Lien Secured Debt L+700, 1.00% Floor 02/01/25 25,243 24,852 24,304 (9)(28) First Lien Secured Debt - Revolver L+700, 1.00% Floor 02/01/24 3,462 1,111 1,019 (9)(21)(23) (26) Preferred Equity - Preferred Equity N/A N/A 461,538 Shares 462 55 (9)(13) 26,425 25,378 LashCo Lash OpCo, LLC First Lien Secured Debt L+700, 1.00% Floor 03/18/26 34,950 30,481 30,414 (9)(21)(23) (26) First Lien Secured Debt P+600 03/18/26 10,146 9,942 9,918 (9)(34) First Lien Secured Debt - Revolver L+700, 1.00% Floor 09/18/25 1,612 (50) (36) (8)(9)(21) (23) 40,373 40,296 Olaplex Olaplex, Inc. First Lien Secured Debt L+625, 1.00% Floor 01/08/26 12,063 11,898 12,184 (9)(26) First Lien Secured Debt - Revolver L+650, 1.00% Floor 01/08/25 2,300 (28) — (9)(21)(23) 11,870 12,184 Paladone Paladone Group Bidco Limited First Lien Secured Debt L+575, 1.00% Floor 11/12/27 8,003 5,981 6,038 (9)(17)(23) (28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 11/12/27 £ 353 (9) (5) (8)(9)(17) (21)(23) First Lien Secured Debt - Revolver L+575, 1.00% Floor 11/12/27 1,412 255 268 (9)(17)(21) (23)(28) Paladone Group Holdings Limited Common Equity - Common Stock N/A N/A 94,151 Shares 94 94 (9)(13)(17) (25) 6,321 6,395 Sequential Brands Group, Inc. Gainline Galaxy Holdings LLC Common Equity - Common Stock N/A N/A 10,854 Shares 2,041 2,033 (13)(16)(17) (25) Sequential Avia Holdings LLC Second Lien Secured Debt L+500, 1.00% Floor 11/12/26 1,717 1,715 1,717 (17)(26) Sequential Brands Group, Inc. First Lien Secured Debt L+500, 1.00% Floor 01/28/22 448 46 46 (17)(21)(23) (26) Second Lien Secured Debt 8.75% 02/07/24 1,293 236 241 (14)(17) 4,038 4,037 Total Consumer Goods – Non-durable $ 88,999 $ 88,290 See notes to financial statements. 9 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Consumer Services Activ Activ Software Holdings, LLC First Lien Secured Debt L+625, 1.00% Floor 05/04/27 $ 29,943 $ 29,399 $ 29,479 (9)(30) First Lien Secured Debt - Revolver L+625, 1.00% Floor 05/04/27 2,407 (43) (37) (8)(9)(21) (23) 29,356 29,442 Bird Bird US Opco, LLC First Lien Secured Debt L+750, 1.00% Floor 10/12/24 50,000 15,615 16,203 (9)(23)(26) Clarus Commerce Marlin DTC-LS Midco 2, LLC First Lien Secured Debt L+650, 1.00% Floor 07/01/25 22,214 21,877 22,038 (29) First Lien Secured Debt - Revolver L+600, 1.00% Floor 07/01/25 685 8 (5) (8)(21)(23) 21,885 22,033 First Heritage First Heritage Credit, LLC First Lien Secured Debt L+475, 0.00% Floor 04/02/22 26,250 19,492 19,474 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+550, 0.00% Floor 04/02/22 3,750 2,458 2,459 (9)(21)(23) (26) 21,950 21,933 Go Car Wash Go Car Wash Management Corp. First Lien Secured Debt L+575, 1.00% Floor 12/31/26 11,465 8,114 8,089 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/31/26 417 (3) (6) (8)(9)(21) (23) 8,111 8,083 Lending Point LendingPoint LLC First Lien Secured Debt L+1050, 1.00% Floor 12/30/25 17,500 13,411 13,452 (9)(21)(23) (28) First Lien Secured Debt L+575, 1.00% Floor 12/30/25 4,167 3,155 3,169 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/30/25 8,333 6,590 6,617 (9)(21)(23) (28) 23,156 23,238 Only About Children Nemo (BC) Bidco Pty Ltd First Lien Secured Debt BBSW+675, 1.00% Floor 04/06/24 A$ 7,000 4,945 4,763 (17)(21)(23) (33) Paper Source Papershop Holdco Inc. First Lien Secured Debt L+700, 1.00% Floor 05/27/26 10,607 10,509 10,501 (9)(28) First Lien Secured Debt - Revolver L+700, 1.00% Floor 05/27/26 1,705 1,365 1,364 (9)(21)(23) (26)(28) First Lien Secured Debt - Revolver P+600 05/27/26 1,377 1,364 1,363 (9)(23)(34) 13,238 13,228 The Club Company Eldrickco Limited First Lien Secured Debt SON+625, 0.50% Floor 11/26/25 £ 15,083 14,021 14,436 (9)(17)(21) (23)(31) First Lien Secured Debt - Revolver SON+625, 0.50% Floor 11/26/25 £ 356 411 465 (9)(17)(23) (31) First Lien Secured Debt - Revolver SON+625, 0.50% Floor 05/26/25 £ 345 — (9) (8)(9)(17) (21)(23)(31) 14,432 14,892 US Auto U.S. Auto Finance, Inc. First Lien Secured Debt L+525, 1.00% Floor 04/17/24 20,000 4,623 4,556 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+600, 1.00% Floor 04/17/24 13,333 10,995 10,976 (9)(21)(23) (28) 15,618 15,532 Total Consumer Services $ 168,306 $ 169,347 See notes to financial statements. 10 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Diversified Investment Vehicles, Banking, Finance, Real Estate Celink Compu-Link Corporation First Lien Secured Debt - Revolver L+550, 1.00% Floor 06/11/24 $ 2,273 $ (25) $ (24) (8)(9)(21) (23) Peer Advisors, LLC First Lien Secured Debt L+550, 1.00% Floor 06/11/24 17,670 17,468 17,487 (9)(26) 17,443 17,463 Flock Financial, LLC Flock SPV I, LLC First Lien Secured Debt L+650, 1.00% Floor 12/31/22 14,667 11,997 12,000 (9)(17)(21) (23)(26) First Lien Secured Debt - Revolver L+650, 1.00% Floor 12/31/22 5,333 (28) — (9)(17)(21) (23) 11,969 12,000 Golden Bear Golden Bear 2016-R, LLC (4) Structured Products and Other - Membership Interests N/A 09/20/42 N/A 16,987 10,821 (3)(17) Purchasing Power, LLC Purchasing Power Funding I, LLC First Lien Secured Debt - Revolver L+650, 0.00% Floor 01/24/24 9,113 1,640 1,640 (9)(21)(23) (27) Spectrum Automotive Shelby 2021 Holdings Corp. First Lien Secured Debt L+575, 0.75% Floor 06/29/28 14,521 12,219 12,263 (9)(21)(23) (26)(27)(28) First Lien Secured Debt - Revolver L+575, 0.75% Floor 06/29/27 420 (6) (4) (8)(9)(21) (23) 12,213 12,259 Ten-X, LLC Ten-X, LLC First Lien Secured Debt - Revolver P+225 09/29/22 4,680 4,617 4,572 (23)(34) Total Diversified Investment Vehicles, Banking, Finance, Real Estate $ 64,869 $ 58,755 Education NFA Group SSCP Spring Bidco Limited First Lien Secured Debt GBPL+600, 0.50% Floor 07/30/25 £ 30,000 $ 36,295 $ 40,407 (9)(17)(32) Total Education $ 36,295 $ 40,407 Energy – Electricity Renew Financial LLC (f/k/a Renewable Funding, LLC) AIC SPV Holdings II, LLC (4) Preferred Equity - Preferred Stock N/A N/A 534,375 Shares $ 534 $ 417 (15)(17)(25) Renew Financial LLC (f/k/a Renewable Funding, LLC) (4) Preferred Equity - Series B Preferred Stock N/A N/A 1,505,868 Shares 8,343 — (13)(25) Preferred Equity - Series D Preferred Stock N/A N/A 436,689 Shares 5,568 — (13)(25) Preferred Equity - Series E Preferred Stock N/A N/A 441,576 Shares 1,902 4,984 (13)(17)(25) Renew JV LLC (4) Common Equity - Membership Interests N/A N/A 513,215 Shares 513 635 (13)(17)(25) 16,860 6,036 Solarplicity Group Limited (f/k/a AMP Solar UK) Solarplicity UK Holdings Limited First Lien Secured Debt 4.00% 03/08/23 £ 5,562 7,231 1,791 (14)(17) Preferred Equity - Preferred Stock N/A N/A 4,286 Shares 5,623 — (2)(13)(17) Common Equity - Ordinary Shares N/A N/A 2,825 Shares 4 — (2)(13)(17) 12,858 1,791 Total Energy – Electricity $ 29,718 $ 7,827 See notes to financial statements. 11 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Energy – Oil & Gas Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5) Second Lien Secured Debt 10.00% PIK 03/31/23 $ 11,556 $ 10,980 $ 6,116 (14) Common Equity - Common Stock N/A N/A 10,000,000 Shares 30,078 — (13)(25) 41,058 6,116 Pelican Pelican Energy, LLC (4) Common Equity - Membership Interests N/A N/A 1,444 Shares 13,063 630 (13)(16)(17) (25) Spotted Hawk SHD Oil & Gas, LLC (5) First Lien Secured Debt - Tranche C Note 12.00% 06/30/22 24,728 24,728 25,470 Common Equity - Series A Units N/A N/A 7,600,000 Shares 1,412 — (13)(16)(25) Common Equity - Series C Units N/A N/A 50,952,525 Shares 44,065 2,839 (13)(16)(25) 70,205 28,309 Total Energy – Oil & Gas $ 124,326 $ 35,055 Environmental Industries Ortega National Parks Ortega National Parks, LLC First Lien Secured Debt L+525, 1.00% Floor 10/31/25 $ 15,590 $ 9,229 $ 9,223 (9)(21)(23) (29) First Lien Secured Debt - Revolver L+525, 1.00% Floor 10/31/25 2,049 (27) (22) (8)(9)(21) (23) Total Environmental Industries $ 9,202 $ 9,201 Healthcare & Pharmaceuticals 83bar 83Bar, Inc. First Lien Secured Debt L+575, 1.50% Floor 07/02/26 $ 5,000 $ 4,975 $ 4,975 (9)(26) Akoya Akoya Biosciences, Inc. First Lien Secured Debt L+635, 1.50% Floor 10/27/25 9,750 9,771 9,750 (9)(26) AmeriVet Amerivet Partners Management, Inc. First Lien Secured Debt L+475, 1.00% Floor 06/05/24 33,617 33,202 33,265 (9)(27) First Lien Secured Debt - Revolver L+475, 1.00% Floor 06/05/24 806 (8) (9) (8)(9)(21) (23) AmeriVet Partners Parent LP Common Equity - Class D Partnership Units N/A N/A 13 Shares 125 299 (9)(13) 33,319 33,555 Analogic Analogic Corporation First Lien Secured Debt L+525, 1.00% Floor 06/22/24 17,896 17,707 17,627 (9)(26) First Lien Secured Debt - Revolver L+525, 1.00% Floor 06/22/23 1,826 1,030 1,016 (9)(21)(23) (26) 18,737 18,643 CARE Fertility Royton Bidco Limited First Lien Secured Debt SON+525, 0.50% Floor 05/09/25 £ 19,766 22,335 23,473 (9)(17)(21) (23)(31) Cato Research LS Clinical Services Holdings, Inc. First Lien Secured Debt L+675, 1.00% Floor 12/16/27 13,125 12,800 12,797 (9)(28) First Lien Secured Debt - Revolver L+675, 1.00% Floor 12/16/26 1,875 (46) (47) (8)(9)(21) (23) 12,754 12,750 See notes to financial statements. 12 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Cerus Cerus Corporation First Lien Secured Debt L+545, 1.80% Floor 03/01/24 21,000 16,449 16,830 (9)(17)(23) (26) First Lien Secured Debt - Revolver L+375, 1.80% Floor 03/01/24 1,500 318 324 (9)(17)(21) (23)(26) 16,767 17,154 Emmes Corporation Emmes Blocker, Inc. Common Equity - Common Stock N/A N/A 306 Shares 306 842 (9)(13) The Emmes Company, LLC First Lien Secured Debt L+500, 1.00% Floor 03/03/25 15,926 15,782 15,687 (9)(29) First Lien Secured Debt - Revolver L+500, 1.00% Floor 03/03/25 2,449 2,429 2,412 (9)(23)(26) 18,517 18,941 EmpiRx EmpiRx Health LLC First Lien Secured Debt L+550, 1.00% Floor 08/05/27 9,091 8,919 9,000 (9)(27) First Lien Secured Debt - Revolver L+550, 1.00% Floor 08/05/27 909 (17) (9) (8)(9)(21) (23) 8,902 8,991 Forge Biologics Forge Biologics, Inc. First Lien Secured Debt L+675, 0.50% Floor 12/03/26 26,667 3,202 3,201 (9)(23)(26) Genesis Healthcare, Inc. Genesis Healthcare, Inc. First Lien Secured Debt L+1100, 1.00% Floor 03/06/23 6,087 — — (9)(21)(23) First Lien Secured Debt - Revolver L+600, 0.50% Floor 03/06/23 85,870 (171) — (9)(21)(23) (171) — Gossamer GB001, Inc. First Lien Secured Debt L+700, 2.00% Floor 01/01/25 30,000 5,873 6,060 (9)(17)(23) (26) Health & Safety Institute HSI HALO Acquisition, Inc. First Lien Secured Debt L+575, 1.00% Floor 08/31/26 16,412 13,524 13,360 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 09/02/25 813 131 121 (9)(21)(23) (26) Common Equity - Common Stock N/A N/A 500 Shares 500 612 (9)(13) 14,155 14,093 IMA Group IMA Group Management Company, LLC First Lien Secured Debt L+550, 1.00% Floor 05/30/24 12,704 6,866 6,887 (21)(23)(29) First Lien Secured Debt - Revolver L+550, 1.00% Floor 05/30/24 289 259 257 (21)(23)(27) 7,125 7,144 Kindeva Kindeva Drug Delivery L.P. First Lien Secured Debt L+600, 1.00% Floor 05/01/26 9,434 9,267 9,372 (9)(28) First Lien Secured Debt - Revolver L+600, 1.00% Floor 05/01/25 167 77 78 (9)(21)(23) (26) 9,344 9,450 KureSmart Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.) Common Equity - Common Stock N/A N/A 133 Shares 133 206 (9)(13) Kure Pain Holdings, Inc. First Lien Secured Debt L+500, 1.00% Floor 08/27/24 21,714 21,532 21,403 (9)(26) First Lien Secured Debt - Revolver L+500, 1.00% Floor 08/27/24 2,654 (26) (40) (8)(9)(21) (23) 21,639 21,569 See notes to financial statements. 13 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Mannkind Corporation Mannkind Corporation First Lien Secured Debt L+675, 1.00% Floor 08/01/25 13,866 13,784 14,094 (9)(26) First Lien Secured Debt L+625, 1.00% Floor 08/01/25 30,000 (24) — (9)(23) Common Equity - Common Stock N/A N/A 334,226 Shares 76 1,461 (9)(10)(13) (17) 13,836 15,555 Maxor National Pharmacy Services, LLC Maxor National Pharmacy Services, LLC First Lien Secured Debt L+550, 1.00% Floor 12/06/27 23,438 23,201 22,973 (9)(26)(28) First Lien Secured Debt - Revolver L+550, 1.00% Floor 12/06/26 1,558 (11) (30) (8)(9)(21) (23) 23,190 22,943 Medical Guardian Medical Guardian, LLC First Lien Secured Debt L+650, 1.00% Floor 10/26/26 36,191 30,931 30,911 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+650, 1.00% Floor 10/26/26 3,810 (55) (54) (8)(9)(21) (23) 30,876 30,857 Midwest Vision Midwest Vision Partners Management, LLC First Lien Secured Debt L+650, 1.00% Floor 01/12/27 24,315 21,466 21,656 (9)(21)(23) (27)(28)(29) First Lien Secured Debt - Revolver L+650, 1.00% Floor 01/12/27 612 295 300 (9)(21)(23) (27) 21,761 21,956 Orchard Orchard Therapeutics PLC First Lien Secured Debt L+595, 1.00% Floor 05/28/26 33,333 10,897 10,994 (9)(17)(23) (26) Ovation Fertility FPG Services, LLC First Lien Secured Debt L+550, 1.00% Floor 06/13/25 19,068 14,141 14,312 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+550, 1.00% Floor 06/13/24 2,105 (21) (6) (8)(9)(21) (23) 14,120 14,306 Paragon 28 Paragon 28, Inc. First Lien Secured Debt L+600, 1.00% Floor 05/01/26 10,000 2,492 2,475 (9)(23)(26) First Lien Secured Debt - Revolver L+300, 1.00% Floor 05/01/26 2,000 (9) (5) (8)(9)(21) (23) 2,483 2,470 Partner Therapeutics, Inc Partner Therapeutics, Inc First Lien Secured Debt L+665, 1.00% Floor 01/01/23 10,000 9,964 9,950 (9)(26) First Lien Secured Debt - Revolver L+375, 1.00% Floor 04/01/26 1,000 823 825 (9)(21)(23) (26) Preferred Equity - Preferred Equity N/A N/A 55,556 Shares 333 871 (9)(13) Warrants N/A 33,333 Shares 135 372 (9)(13) 11,255 12,018 PHS PHS Buyer, Inc. First Lien Secured Debt L+600, 1.00% Floor 01/31/27 25,177 24,746 24,674 (9)(28) First Lien Secured Debt - Revolver L+600, 1.00% Floor 01/31/27 2,000 (30) (40) (8)(9)(21) (23) 24,716 24,634 Radius Health Radius Health, Inc. First Lien Secured Debt L+575, 2.00% Floor 06/01/24 33,833 28,700 28,425 (9)(17)(23) (26) First Lien Secured Debt - Revolver L+350, 2.00% Floor 06/01/24 1,000 (1) (13) (8)(9)(17) (21)(23) 28,699 28,412 See notes to financial statements. 14 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) RHA Health Services Pace Health Companies, LLC First Lien Secured Debt L+450, 1.00% Floor 08/02/24 4,463 3,837 3,880 (9)(23)(28) First Lien Secured Debt - Revolver L+450, 1.00% Floor 08/02/24 500 11 (1) (8)(9)(20) (21)(23) 3,848 3,879 Rigel Pharmaceuticals Rigel Pharmaceuticals, Inc. First Lien Secured Debt L+565, 1.50% Floor 09/01/24 6,000 6,017 6,056 (9)(26) RiteDose Holdings I, Inc. RiteDose Holdings I, Inc. First Lien Secured Debt P+550, 1.00% Floor 09/13/23 12,093 11,977 12,087 (9)(26)(34) First Lien Secured Debt - Revolver L+650, 1.00% Floor 09/13/23 2,000 (18) — (9)(21)(23) 11,959 12,087 Unchained Labs Unchained Labs, LLC First Lien Secured Debt L+550, 1.00% Floor 08/09/27 6,765 1,847 1,859 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+550, 1.00% Floor 08/09/27 726 (14) (7) (8)(9)(21) (23) 1,833 1,852 Total Healthcare & Pharmaceuticals $ 412,734 $ 417,768 High Tech Industries Acronis AG ACRONIS AG First Lien Secured Debt L+585, 1.50% Floor 12/18/24 $ 21,000 $ 20,930 $ 21,000 (9)(17)(26) American Megatrends AMI US Holdings Inc. First Lien Secured Debt L+525, 1.00% Floor 04/01/25 21,485 21,241 21,485 (9)(26) First Lien Secured Debt - Revolver L+525, 0.00% Floor 04/01/24 2,907 1,136 1,163 (9)(21)(23) (26) 22,377 22,648 Calero Holdings, Inc. Telesoft Holdings, LLC First Lien Secured Debt L+575, 1.00% Floor 12/16/25 22,330 21,987 22,194 (28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/16/25 2,273 (34) (14) (8)(21)(23) 21,953 22,180 ChyronHego Corporation ChyronHego Corporation (5) First Lien Secured Debt L+350 Cash plus 1.50% PIK, 1.00% Floor 12/31/22 84,958 83,476 84,109 (28) First Lien Secured Debt L+800 PIK, 1.00% Floor 12/31/22 2,514 2,422 2,413 (28) First Lien Secured Debt - Revolver L+500, 1.00% Floor 12/31/22 8,000 7,156 7,076 (21)(23)(29) Preferred Equity - Preferred Equity N/A N/A 7,800 Shares 6,000 12,269 (13)(25) 99,054 105,867 Dairy.com Momentx Corporation First Lien Secured Debt L+575, 1.00% Floor 06/24/27 13,674 13,420 13,335 (9)(28) First Lien Secured Debt - Revolver L+575, 1.00% Floor 06/24/27 1,257 (23) (31) (8)(9)(21) (23) 13,397 13,304 Digital.ai Digital.ai Software Holdings, Inc. First Lien Secured Debt L+700, 1.00% Floor 02/10/27 22,411 21,833 22,109 (9)(28) First Lien Secured Debt - Revolver L+700, 1.00% Floor 02/10/27 2,419 745 774 (9)(21)(23) (28) 22,578 22,883 See notes to financial statements. 15 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) GoHealth Norvax, LLC First Lien Secured Debt - Revolver L+650, 1.00% Floor 09/13/24 3,182 2,423 2,466 (9)(21)(23) (26)(27)(28) International Cruise & Excursion Gallery, Inc. International Cruise & Excursion Gallery, Inc. First Lien Secured Debt L+525, 1.00% Floor 06/06/25 14,475 14,329 13,540 (26) Modern Campus Destiny Solutions U.S., Inc. First Lien Secured Debt L+575, 1.00% Floor 06/08/26 15,733 15,405 15,458 (26) First Lien Secured Debt L+600, 1.00% Floor 06/08/26 9,840 5,775 5,858 (21)(23)(28) RMCF IV CIV XXXV, L.P. Common Equity - Common Stock N/A N/A 482 Shares 1,000 1,340 (13)(25) 22,180 22,656 MYCOM Magnate Holding Corp. First Lien Secured Debt L+625 Cash plus 1.00% PIK, 0.50% Floor 12/16/24 19,206 19,080 17,737 (9)(17)(28) First Lien Secured Debt - Revolver L+625 Cash plus 1.00% PIK, 0.50% Floor 12/14/23 3,150 3,131 2,980 (9)(17)(23) (28) 22,211 20,717 New Era Technology, Inc. New Era Technology, Inc. First Lien Secured Debt L+625, 1.00% Floor 10/31/26 23,850 20,358 20,278 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+625, 1.00% Floor 10/30/26 1,049 330 329 (9)(21)(23) (28) 20,688 20,607 Pro Vigil Pro-Vigil Holding Company, LLC First Lien Secured Debt L+850, 1.00% Floor 01/11/25 9,935 9,733 9,798 (9)(26) Schlesinger Group Schlesinger Global, LLC First Lien Secured Debt L+600 Cash plus 1.00% PIK, 1.00% Floor 07/12/25 9,887 9,723 9,741 (9)(28) First Lien Secured Debt L+775, 1.00% Floor 07/12/25 963 949 971 (9)(28) 10,672 10,712 Simeio Simeio Group Holdings, Inc. First Lien Secured Debt L+550, 1.00% Floor 02/02/26 8,293 8,207 8,178 (9)(26) First Lien Secured Debt L+525, 1.00% Floor 02/02/26 4,615 (24) (69) (8)(9)(21) 23) First Lien Secured Debt - Revolver L+525, 1.00% Floor 02/02/26 1,731 (18) (24) (8)(9)(21) (23) 8,165 8,085 Sirsi Corporation Sirsi Corporation First Lien Secured Debt L+450, 1.00% Floor 03/15/24 5,671 5,631 5,654 (9)(26) First Lien Secured Debt - Revolver L+450, 1.00% Floor 03/15/24 429 (3) (1) (8)(9)(21) (23) 5,628 5,653 Springbrook Springbrook Holding Company, LLC First Lien Secured Debt L+550, 1.00% Floor 12/23/26 13,336 10,693 10,727 (21)(23)(29) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/23/26 1,463 (18) (13) (8)(21)(23) 10,675 10,714 Tax Slayer MEP-TS Midco, LLC First Lien Secured Debt L+600, 1.00% Floor 12/31/26 13,413 13,159 13,279 (9)(29) First Lien Secured Debt - Revolver L+600, 1.00% Floor 12/31/26 1,452 (2) (15) (8)(9)(21) (23) 13,157 13,264 See notes to financial statements. 16 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Telnyx Telnyx LLC First Lien Secured Debt L+625, 1.50% Floor 10/21/25 8,583 5,202 5,278 (9)(23)(26) UpStack Upstack Holdco Inc. First Lien Secured Debt L+600, 1.00% Floor 08/20/27 31,958 27,593 27,478 (9)(21)(23) (28)(29) First Lien Secured Debt - Revolver L+600, 1.00% Floor 08/20/27 3,000 (78) (83) (8)(9)(20) (21)(23) 27,515 27,395 Total High Tech Industries $ 372,867 $ 378,767 Hotel, Gaming, Leisure, Restaurants Guernsey Guernsey Holdings SDI LA LLC First Lien Secured Debt 6.95% 11/18/26 $ 14,333 $ 14,194 $ 14,190 (9) First Lien Secured Debt L+595, 1.00% Floor 11/18/26 1,667 — — (9)(23) 14,194 14,190 Taco Cabana YTC Enterprises, LLC First Lien Secured Debt L+625, 1.00% Floor 08/16/26 9,967 9,851 9,842 (9)(26) Total Hotel, Gaming, Leisure, Restaurants $ 24,045 $ 24,032 Insurance High Street Insurance High Street Buyer, Inc. First Lien Secured Debt L+600, 0.75% Floor 04/14/28 $ 30,189 $ 29,660 $ 29,585 (9)(28)(29) First Lien Secured Debt - Revolver L+600, 0.75% Floor 04/16/27 2,203 (39) (44) (8)(9)(21) (23) 29,621 29,541 PGM Holdings Corporation Turbo Buyer, Inc. First Lien Secured Debt L+600, 1.00% Floor 12/02/25 19,279 18,962 18,893 (9)(29) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/02/25 923 (15) (18) (8)(9)(21) (23) 18,947 18,875 Relation Insurance AQ Sunshine, Inc. First Lien Secured Debt L+600, 1.00% Floor 04/15/25 30,353 29,684 30,172 (9)(21)(23) (29) First Lien Secured Debt - Revolver L+600, 1.00% Floor 04/15/24 1,369 353 365 (9)(20)(21) (23)(29) 30,037 30,537 Total Insurance $ 78,605 $ 78,953 Manufacturing, Capital Equipment AVAD, LLC AVAD, LLC First Lien Secured Debt - Revolver L+400, 1.00% Floor 10/02/23 $ 2,060 $ 962 $ — (9)(23)(26) Surf Opco, LLC First Lien Secured Debt - Revolver L+400, 1.00% Floor 03/17/26 16,667 11,785 11,785 (9)(20)(21) (23)(26) Preferred Equity - Class P-1 Preferred N/A N/A 33,333 Shares 3,333 6,667 (9)(13)(16) (25) Preferred Equity - Class P-2 Preferred N/A N/A 85,164 Shares 8,516 3,131 (9)(13)(16) (25) Common Equity - Class A-1 Common N/A N/A 3,333 Shares — 180 (9)(13)(16) (25) 24,596 21,763 Kauffman Kauffman Holdco, LLC Common Equity - Common Stock N/A N/A 250,000 Shares 250 60 (9)(13) Kauffman Intermediate, LLC First Lien Secured Debt L+650, 1.00% Floor 05/08/25 16,324 16,139 15,865 (9)(28) First Lien Secured Debt - Revolver L+650, 1.00% Floor 05/08/25 1,243 269 276 (9)(21)(23) (28) 16,658 16,201 See notes to financial statements. 17 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) MedPlast Holdings Inc. Viant Medical Holdings, Inc. (fka MedPlast Holdings, Inc.) Second Lien Secured Debt L+775, 0.00% Floor 07/02/26 8,000 7,954 7,586 (26) Total Manufacturing, Capital Equipment $ 49,208 $ 45,550 Media – Diversified & Production New Wave Entertainment NW Entertainment, Inc. First Lien Secured Debt L+750, 1.00% Floor 08/16/24 $ 28,491 $ 27,611 $ 27,711 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+750, 1.00% Floor 08/16/24 3,078 3,046 3,055 (9)(23)(28) 30,657 30,766 Nitro World Entertainment NWE OPCO LP First Lien Secured Debt L+650, 2.00% Floor 12/19/22 4,637 4,627 4,637 (9)(26) Sonar Entertainment Sonar Entertainment, Inc. First Lien Secured Debt L+760, 1.25% Floor 11/15/21 3,186 3,185 2,673 (9)(11)(26) First Lien Secured Debt - Revolver L+760, 1.25% Floor 11/15/21 1,890 1,848 1,586 (9)(11)(23) (26) 5,033 4,259 Total Media – Diversified & Production $ 40,317 $ 39,662 Retail IPS SI Holdings, Inc. First Lien Secured Debt L+600, 1.00% Floor 07/25/25 $ 31,085 $ 30,692 $ 30,616 (9)(28) First Lien Secured Debt - Revolver L+600, 1.00% Floor 07/25/24 3,413 391 388 (9)(21)(23) (28) Total Retail $ 31,083 $ 31,004 Telecommunications Securus Technologies Holdings, Inc. Securus Technologies Holdings, Inc. Second Lien Secured Debt L+825, 1.00% Floor 11/01/25 $ 12,878 $ 12,809 $ 12,363 (28) Total Telecommunications $ 12,809 $ 12,363 Transportation – Cargo, Distribution Beacon Mobility Beacon Mobility Corp. First Lien Secured Debt L+550, 1.00% Floor 05/22/24 $ 13,989 $ 13,292 $ 13,396 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+550, 1.00% Floor 05/22/24 957 (16) (9) (8)(9)(21) (23) 13,276 13,387 Dynamic Product Tankers (Prime), LLC Dynamic Product Tankers, LLC (5) Unsecured Debt L+500, 0.00% Floor 07/31/24 22,000 22,000 22,000 (17)(29) Common Equity - Class A Units N/A N/A N/A 49,806 5,776 (13)(17)(24) (25) 71,806 27,776 Heniff and Superior Heniff Holdco, LLC First Lien Secured Debt L+575, 1.00% Floor 12/03/26 30,531 30,067 29,630 (9)(26) First Lien Secured Debt - Revolver L+575, 1.00% Floor 12/03/24 3,925 1,262 1,230 (9)(20)(21) (23)(26) 31,329 30,860 MSEA Tankers LLC MSEA Tankers LLC (5) Common Equity - Class A Units N/A N/A N/A 50,994 46,254 (17)(18)(25) Total Transportation – Cargo, Distribution $ 167,405 $ 118,277 See notes to financial statements. 18 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate Maturity Date Par/Shares (12) Cost (35) Fair Value (1)(36) Wholesale Banner Solutions Banner Buyer, LLC First Lien Secured Debt L+575, 1.00% Floor 10/31/25 $ 17,789 $ 15,136 $ 15,224 (9)(21)(23) (26) First Lien Secured Debt - Revolver L+575, 1.00% Floor 10/31/25 1,935 (24) (12) (8)(9)(21) (23) Banner Parent Holdings, Inc. Common Equity - Common Stock N/A N/A 6,125 Shares 613 560 (9)(13) 15,725 15,772 Thomas Scientific BSP-TS, LP Common Equity - Common Stock N/A N/A 185 Shares 185 185 (9)(13)(25) Thomas Scientific, LLC First Lien Secured Debt L+625, 1.00% Floor 12/14/27 31,852 26,088 26,081 (9)(21)(23) (28) First Lien Secured Debt - Revolver L+625, 1.00% Floor 12/14/27 2,963 (59) (59) (8)(9)(21) (23) 26,214 26,207 Total Wholesale $ 41,939 $ 41,979 Total Investments before Cash Equivalents $ 2,792,350 $ 2,594,843 J.P. Morgan U.S. Government Money Market Fund $ 22,367 $ 22,367 $ 22,367 (22) Total Investments after Cash Equivalents $ 2,814,717 $ 2,617,210 (6)(7) ____________________ (1) Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (See Note 2 to the financial statements). (2) Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments. (3) Denotes investments in which the Company owns greater than 25% of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25% of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of December 31, 2021, we had a 100% equity ownership interest in Golden Bear 2016-R, LLC, a collateralized loan obligation, and 27% equity ownership interest in Carbonfree Chemicals SA LLC. See notes to financial statements. 19 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (4) Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2021 and December 31, 2021 along with transactions during the nine months ended December 31, 2021 in these affiliated investments are as follows: Name of Issuer Fair Value at March 31, 2021 Gross Additions ● Gross Reductions ■ Net Change in Unrealized Gains (Losses) Fair Value at December 31, 2021 Net Realized Gains (Losses) Interest/Dividend/Other Income 1244311 B.C. Ltd., Common Stock $ 1,719 $ — $ — $ (833) $ 886 $ — $ — 1244311 B.C. Ltd., Term Loan 3,822 46 (15) (67) 3,786 — 185 9357-5991 Quebec Inc., Term Loan — — (215) — — 215 — AIC SPV Holdings II, LLC, Preferred Equity 498 — — (81) 417 — 81 Carbonfree Chemicals Holdings LLC, Common Stock 25,424 904 — 18,662 44,990 — — Carbonfree Chemicals SA LLC, Class B Units — — — — — — — Golden Bear 2016-R, LLC, Membership Interests 11,289 175 — (643) 10,821 — 878 GSC Technologies Inc., Term Loan — 218 (8) (14) 196 — 11 KLO Acquisition LLC, Term Loan — — (327) 1 — 326 — Pelican Energy, LLC, Common Stock 2,170 — (3,698) 2,158 630 — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock 42 — — (42) — — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock 28 — — (28) — — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series E Preferred Stock 5,106 — — (122) 4,984 — — Renew JV LLC, Membership Interests 776 — (158) 17 635 — — $ 50,874 $ 1,343 $ (4,421) $ 19,008 $ 67,345 $ 541 $ 1,155 ____________________ ● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. ■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. See notes to financial statements. 20 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (5) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Fair value as of March 31, 2021 and December 31, 2021 along with transactions during the nine months ended December 31, 2021 in these controlled investments are as follows: Name of Issuer Fair Value at March 31, 2021 Gross Additions ● Gross Reductions ■ Net Change in Unrealized Losses Fair Value at December 31, 2021 Net Realized Losses Interest/Dividend/Other Income Majority Owned Company ChyronHego Corporation, Preferred Equity $ 6,151 $ 1 $ — $ 6,117 $ 12,269 $ — $ — ChyronHego Corporation, Revolver 2,226 4,750 — 100 7,076 — 208 ChyronHego Corporation, Term Loan 81,676 3,381 873 592 86,522 — 4,965 Dynamic Product Tankers, LLC, Common Stock 25,528 — — (19,752) 5,776 — — Dynamic Product Tankers, LLC, Unsecured Term Loan 22,000 — — — 22,000 — 853 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock — — — — — — — Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Term Loan 8,111 — (5,020) 23,952 6,116 (20,927) — Merx Aviation Finance, LLC, Letter of Credit — — — — — — — Merx Aviation Finance, LLC, Membership Interests 125,061 — (84,500) 2,680 43,241 — — Merx Aviation Finance, LLC, Revolver 190,500 84,500 — — 275,000 — 18,611 MSEA Tankers LLC, Class A Units 57,028 — (6,666) (4,108) 46,254 2,059 Controlled Company SHD Oil & Gas, LLC, Series C Units — 44,065 — (41,226) 2,839 — — SHD Oil & Gas, LLC, Series A Units — — — — — — — SHD Oil & Gas, LLC, Tranche A Note 9,899 — (44,065) 34,159 — 7 SHD Oil & Gas, LLC, Tranche B Note — — — 44,380 — (44,380) — SHD Oil & Gas, LLC, Tranche C Note 25,470 — — — 25,470 — 2,268 $ 553,650 $ 136,697 $ (139,378) $ 46,894 $ 532,563 $ (65,300) $ 28,964 ____________________ ● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. ■ Gross reductions includes decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. As of December 31, 2021, the Company had a 87%, 85%, 96%, 100%, 98% and 38% equity ownership interest in ChyronHego Corporation; Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC ( f/k/a Spotted Hawk Development LLC), respectively. See notes to financial statements. 21 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (6) Aggregate gross unrealized gain and loss for federal income tax purposes is $67,719 and $283,375, respectively. Net unrealized loss is $215,656 based on a tax cost of $2,832,866. (7) Substantially all securities are pledged as collateral to our multi-currency revolving credit facility (the “Senior Secured Facility” as defined in Note 6 to the financial statements). As such, these securities are not available as collateral to our general creditors. (8) The negative fair value is the result of the commitment being valued below par. (9) These are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive order the Company received from the Securities and Exchange Commission (the “SEC”) permitting us to do so. (See Note 3 to the financial statements for discussion of the exemptive order from the SEC.) (10) Other than the investments noted by this footnote, the fair value of the Company’s investments are determined using unobservable inputs that are significant to the overall fair value measurement. See Note 2 to the financial statements for more information regarding ASC 820, Fair Value Measurements (“ASC 820”). (11) The maturity date for this investment was November 15, 2021. The investment is expected to be paid down in a series of payments subsequent to the stated maturity date. (12) Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”) and Australian Dollar (“A$”). (13) Non-income producing security. (14) Non-accrual status (See Note 2 to the financial statements). (15) The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company owns preferred shares representing 14.25% economic interest. (16) AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC, AIC Pelican Holdings, LLC, AP Surf Investments, LLC and AIC SB Holdings LLC are wholly-owned special purpose vehicles which only hold investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC holds equity and debt investments in SHD Oil & Gas, LLC. AIC SHD Holdings LLC holds equity investments in SHD Oil & Gas, LLC. and equity investments in both Carbonfree Chemicals Holdings, LLC and Carbonfree Chemicals SA, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC. AP Surf Investments, LLC holds equity investments in Surf Opco, LLC. AIC SB Holdings LLC holds equity investments in Gainline Galaxy Holdngs LLC. (17) Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of December 31, 2021, non-qualifying assets represented approximately 12.98% of the total assets of the Company. (18) As of December 31, 2021, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers. (19) Common shares in 1244311 B.C. Ltd. are CAD denominated equity investments (20) As of December 31, 2021, there were letters of credit issued and outstanding through the Company under this first lien senior secured revolving loan. (21) The undrawn portion of these committed revolvers and delayed draw term loans includes a commitment and unused fee rate. (22) This security is included in the Cash and Cash Equivalents on the Statements of Assets and Liabilities. See notes to financial statements. 22 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (23) As of December 31, 2021, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 8 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies. Name of Issuer Total Commitment Drawn Commitment Letters of Credit ** Undrawn Commitment A&V Holdings Midco, LLC $ 1,505 $ — $ — $ 1,505 Activ Software Holdings, LLC 2,407 — — 2,407 Alpinex Opco, LLC 5,585 — — 5,585 Amerivet Partners Management, Inc. 806 — — 806 AMI US Holdings Inc. 2,907 1,163 — 1,744 Analogic Corporation 1,826 1,043 — 783 AQ Sunshine, Inc. 1,538 365 30 1,143 AVAD, LLC 2,060 2,060 — — Banner Buyer, LLC 4,387 — — 4,387 Beacon Mobility Corp. 1,421 — — 1,421 Berner Food & Beverage, LLC 2,881 1,210 — 1,671 Bird US Opco, LLC 33,747 — — 33,747 Cerus Corporation 6,000 320 — 5,680 ChyronHego Corporation 8,000 7,156 — 844 Claritas, LLC 1,031 77 — 954 Club Car Wash Operating, LLC 11,538 2,438 — 9,100 Compu-Link Corporation 2,273 — — 2,273 Continuum Global Solutions, LLC 20,000 11,813 — 8,187 Destiny Solutions U.S., Inc. 3,810 — — 3,810 Digital.ai Software Holdings, Inc. 2,419 806 — 1,613 EHL Merger Sub, LLC 4,155 — — 4,155 Eldrickco Limited* 6,272 481 — 5,791 EmpiRx Health LLC 909 — — 909 Erickson Inc 36,000 24,518 1,522 9,960 First Heritage Credit, LLC 10,500 2,459 — 8,041 Flock SPV I, LLC 8,000 — — 8,000 Forge Biologics, Inc. 23,333 — — 23,333 FPG Services, LLC 6,811 — — 6,811 Gabriel Partners, LLC 665 — — 665 GB001, Inc. 24,000 — — 24,000 Genesis Healthcare, Inc. 91,957 — — 91,957 Go Car Wash Management Corp. 3,619 — — 3,619 Graffiti Buyer, Inc. 3,920 240 — 3,680 Guernsey Holdings SDI LA LLC 1,667 — — 1,667 Gutter Buyer, Inc. 2,727 409 94 2,224 Heniff Holdco, LLC 3,925 1,308 355 2,262 High Street Buyer, Inc. 2,203 — — 2,203 Hive Intermediate, LLC 2,326 466 — 1,860 HRO (Hero Digital) Holdings, LLC 10,213 — 31 10,182 HSI HALO Acquisition, Inc. 3,492 136 — 3,356 IMA Group Management Company, LLC 5,978 260 — 5,718 Jacent Strategic Merchandising 3,500 3,494 — 6 JF Acquisition, LLC 1,569 1,443 — 126 Kauffman Intermediate, LLC 1,243 311 — 932 KDC US Holdings 6,020 4,909 40 1,071 Kindeva Drug Delivery L.P. 167 80 — 87 KL Charlie Acquisition Company 10,190 — — 10,190 Kure Pain Holdings, Inc. 2,654 — — 2,654 Lash OpCo, LLC 5,362 — — 5,362 See notes to financial statements. 23 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Name of Issuer Total Commitment Drawn Commitment Letters of Credit ** Undrawn Commitment LendingPoint LLC 13,244 6,667 — 6,577 Lifelong Learner Holdings, LLC 2,985 2,982 — 3 Liqui-Box Holdings, Inc. 3,560 2,018 78 1,464 LS Clinical Services Holdings, Inc. 1,875 — — 1,875 Magnate Holding Corp. 3,150 3,150 — — Mannkind Corporation 30,000 — — 30,000 Marlin DTC-LS Midco 2, LLC 685 — — 685 Maxor National Pharmacy Services, LLC 1,558 — — 1,558 Medical Guardian, LLC 8,571 — — 8,571 MEP-TS Midco, LLC 1,452 — — 1,452 Merx Aviation Finance, LLC 275,177 275,000 177 — Midwest Vision Partners Management, LLC 3,029 306 — 2,723 Momentx Corporation 1,257 — — 1,257 Naviga Inc. (fka Newscycle Solutions, Inc.) 500 280 — 220 Nemo (BC) Bidco Pty Ltd* 169 — — 169 New Era Technology, Inc. 4,143 350 — 3,793 Norvax, LLC 3,182 2,466 — 716 NW Entertainment, Inc. 3,678 3,078 — 600 Olaplex, Inc. 2,300 — — 2,300 Orchard Therapeutics PLC 22,333 — — 22,333 Ortega National Parks, LLC 8,251 — — 8,251 Pace Health Companies, LLC 1,075 — 105 970 Paladone Group Bidco Limited 3,295 282 — 3,013 Paladone Group Bidco Limited* 478 — — 478 Papershop Holdco Inc. 3,082 2,757 — 325 Paragon 28, Inc. 9,500 — — 9,500 Partner Therapeutics, Inc 1,000 825 — 175 PHS Buyer, Inc. 2,000 — — 2,000 Project Comfort Buyer, Inc. 3,462 1,154 — 2,308 Protein For Pets Opco, LLC 2,219 — — 2,219 Purchasing Power Funding I, LLC 9,113 1,642 — 7,471 Radius Health, Inc. 5,833 — — 5,833 RiteDose Holdings I, Inc. 2,000 — — 2,000 Royton Bidco Limited* 3,065 — — 3,065 Sequential Brands Group, Inc. 402 — — 402 Shelby 2021 Holdings Corp. 2,532 — — 2,532 SI Holdings, Inc. 3,413 427 — 2,986 Simeio Group Holdings, Inc. 6,346 — — 6,346 Sirsi Corporation 429 — — 429 Sonar Entertainment, Inc. 1,890 1,890 — — Springbrook Holding Company, LLC 3,951 — — 3,951 Surf Opco, LLC 16,667 11,786 333 4,548 Telesoft Holdings, LLC 2,273 — — 2,273 Telnyx LLC 3,333 — — 3,333 Ten-X, LLC 4,680 4,680 — — TGG TS Acquisition Company 1,750 250 — 1,500 The Emmes Company, LLC 2,449 2,449 — — THLP CO. LLC 4,494 2,921 79 1,494 Thomas Scientific, LLC 8,148 — — 8,148 TNT Crust LLC 3,252 3,092 — 160 Truck-Lite Co., LLC 4,175 — 81 4,094 Turbo Buyer, Inc. 923 — — 923 U.S. Auto Finance, Inc. 28,733 11,007 — 17,726 See notes to financial statements. 24 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Name of Issuer Total Commitment Drawn Commitment Letters of Credit ** Undrawn Commitment Ultimate Baked Goods Midco LLC 3,243 1,702 365 1,176 Unchained Labs, LLC 5,565 — — 5,565 Upstack Holdco Inc. 6,600 — 110 6,490 USLS Acquisition, Inc. 1,608 322 100 1,186 Westfall Technik, Inc. 2,019 2,019 — — Wildcat BuyerCo, Inc. 3,244 — — 3,244 Total Commitments $ 958,858 $ 414,467 $ 3,500 $ 540,891 ____________________ * These investments are in a foreign currency and the total commitment has been converted to USD using the December 31, 2021 exchange rate. ** For all letters of credit issued and outstanding on December 31, 2021, $3,482 will expire in 2022, $3 will expire in 2023 and $15 will expire in 2024. See notes to financial statements. 25 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (24) As of December 31, 2021, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers. (25) Securities that are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of December 31, 2021, the aggregate fair value of these securities is $177,530 or 17% of the Company's net assets. The acquisition dates of the restricted securities are as follows: Issuer Investment Type Acquisition Date 1244311 B.C. Ltd. Common Equity - Common Stock 9/30/2020 AIC SPV Holdings II, LLC Preferred Equity - Preferred Stock 6/1/2017 BSP-TS, LP Common Equity - Common Stock 12/14/2021 Carbonfree Chemicals Holdings LLC Common Equity - Common Equity / Interest 11/19/2019 Carbonfree Chemicals SA LLC Common Equity - Class B Units 11/19/2019 ChyronHego Corporation Preferred Equity - Preferred Equity 12/29/2020 Dynamic Product Tankers, LLC Common Equity - Class A Units 4/3/2015 FCP-Hive Holdings, LLC Common Equity - Common Stock 9/22/2021 FCP-Hive Holdings, LLC Preferred Equity - Preferred Equity 9/22/2021 Gainline Galaxy Holdings LLC Common Equity - Common Stock 11/12/2021 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) Common Equity - Common Stock 3/29/2016 Graffiti Parent, LP Common Equity - Common Stock 8/10/2021 HRO Holdings I LP Common Equity - Common Stock 11/18/2021 Merx Aviation Finance, LLC Common Equity - Membership Interests 5/22/2013 MSEA Tankers LLC Common Equity - Class A Units 12/12/2014 Paladone Group Holdings Limited Common Equity - Common Stock 11/12/2021 Pelican Energy, LLC Common Equity - Membership Interests 2/16/2016 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series E Preferred Stock 12/23/2020 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series D Preferred Stock 10/1/2015 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series B Preferred Stock 4/9/2014 Renew JV LLC Common Equity - Membership Interests 3/20/2017 RMCF IV CIV XXXV, L.P. Common Equity - Common Stock 6/8/2021 SHD Oil & Gas, LLC Common Equity - Series C Units 9/30/2021 SHD Oil & Gas, LLC Common Equity - Series A Units 11/18/2016 Surf Opco, LLC Common Equity - Class A-1 Common 3/17/2021 Surf Opco, LLC Preferred Equity - Class P-1 Preferred 3/17/2021 Surf Opco, LLC Preferred Equity - Class P-2 Preferred 3/17/2021 (26) The interest rate on these loans is subject to 1 month LIBOR, which as of December 31, 2021 was 0.10% (27) The interest rate on these loans is subject to 2 months LIBOR, which as of December 31, 2021 was 0.15% (28) The interest rate on these loans is subject to 3 months LIBOR, which as of December 31, 2021 was 0.21% (29) The interest rate on these loans is subject to 6 months LIBOR, which as of December 31, 2021 was 0.34% (30) The interest rate on these loans is subject to 12 months LIBOR, which as of December 31, 2021 was 0.58% (31) The interest rate on these loans is subject to SONIA, which as of December 31, 2021 was 0.19% (32) The interest rate on these loans is subject to 6 months GBP LIBOR, which as of December 31, 2021 was 0.47% (33) The interest rate on these loans is subject to 6 months BBSW, which as of December 31, 2021 was 0.21% (34) The interest rate on these loans is subject to Prime, which as of December 31, 2021 was 3.25% See notes to financial statements. 26 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (35) The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of December 31, 2021: Industry First Lien - Secured Debt Second Lien - Secured Debt Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Non-Controlled/Non-Affiliated Investments Advertising, Printing & Publishing $ 41,454 $ — $ — $ — $ — $ 432 $ — $ 41,886 Aerospace & Defense 24,472 — — — — — — 24,472 Automotive 53,762 23,583 — — — 350 — 77,695 Aviation and Consumer Transport 17,186 — — — — — — 17,186 Beverage, Food & Tobacco 128,708 — — — 448 2,207 — 131,363 Business Services 210,036 68,653 — — 89 1,676 — 280,454 Chemicals, Plastics & Rubber 23,066 — — — — — — 23,066 Construction & Building 28,520 — — — — 500 — 29,020 Consumer Goods – Durable 19,594 — — — — 107 — 19,701 Consumer Goods – Non-durable 84,451 1,951 — — 462 2,135 — 88,999 Consumer Services 168,306 — — — — — — 168,306 Diversified Investment Vehicles, Banking, Finance, Real Estate 47,882 — — — — — — 47,882 Education 36,295 — — — — — — 36,295 Energy – Electricity 7,231 — — — 5,623 4 — 12,858 Environmental Industries 9,202 — — — — — — 9,202 Healthcare & Pharmaceuticals 411,126 — — — 333 1,140 135 412,734 High Tech Industries 272,813 — — — — 1,000 — 273,813 Hotel, Gaming, Leisure, Restaurants 24,045 — — — — — — 24,045 Insurance 78,605 — — — — — — 78,605 Manufacturing, Capital Equipment 29,154 7,954 — — 11,850 250 — 49,208 Media – Diversified & Production 40,317 — — — — — — 40,317 Retail 31,083 — — — — — — 31,083 Telecommunications — 12,809 — — — — — 12,809 Transportation – Cargo, Distribution 44,605 — — — — — — 44,605 Wholesale 41,141 — — — — 798 — 41,939 Total Non-Controlled/ Non-Affiliated Investments $ 1,873,054 $ 114,950 $ — $ — $ 18,805 $ 10,599 $ 135 $ 2,017,543 Non-Controlled/Affiliated Investments Chemicals, Plastics & Rubber $ — $ — $ — $ — $ — $ 78,729 $ — $ 78,729 Consumer Goods – Durable 4,251 — — — — 1,000 — 5,251 Diversified Investment Vehicles, Banking, Finance, Real Estate — — — 16,987 — — — 16,987 Energy – Electricity — — — — 16,347 513 — 16,860 Energy – Oil & Gas — — — — — 13,063 — 13,063 Total Non-Controlled/Affiliated Investments $ 4,251 $ — $ — $ 16,987 $ 16,347 $ 93,305 $ — $ 130,890 Controlled Investments Aviation and Consumer Transport $ 275,000 $ — $ — $ — $ — $ 35,800 $ — $ 310,800 Energy – Oil & Gas 24,728 10,980 — — — 75,555 — 111,263 High Tech Industries 93,054 — — — 6,000 — 99,054 Transportation – Cargo, Distribution — — 22,000 — — 100,800 — 122,800 Total Controlled Investments $ 392,782 $ 10,980 $ 22,000 $ — $ 6,000 $ 212,155 $ — $ 643,917 Total $ 2,270,087 $ 125,930 $ 22,000 $ 16,987 $ 41,152 $ 316,059 $ 135 $ 2,792,350 See notes to financial statements. 27 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) (36) The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of December 31, 2021: Industry First Lien - Secured Debt Second Lien - Secured Debt Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total % of Net Assets Non-Controlled / Non-Affiliated Investments Advertising, Printing & Publishing $ 41,821 $ — $ — $ — $ — $ 557 $ — $ 42,378 4.1 % Aerospace & Defense 24,159 — — — — — — 24,159 2.5 % Automotive 52,864 21,507 — — — 406 — 74,777 7.3 % Aviation and Consumer Transport 17,280 — — — — — — 17,280 1.7 % Beverage, Food & Tobacco 128,517 — — — 475 2,450 — 131,442 12.8 % Business Services 209,044 55,485 — — 89 2,233 — 266,851 26.1 % Chemicals, Plastics & Rubber 22,831 — — — — — — 22,831 2.2 % Construction & Building 28,518 — — — — 1,049 — 29,567 2.9 % Consumer Goods – Durable 19,670 — — — — 551 — 20,221 2.0 % Consumer Goods – Non-durable 84,151 1,957 — — 55 2,127 — 88,290 8.6 % Consumer Services 169,347 — — — — — — 169,347 16.5 % Diversified Investment Vehicles, Banking, Finance, Real Estate 47,934 — — — — — — 47,934 4.7 % Education 40,407 — — — — — — 40,407 4.0 % Energy – Electricity 1,791 — — — — — — 1,791 0.2 % Environmental Industries 9,201 — — — — — — 9,201 0.9 % Healthcare & Pharmaceuticals 413,106 — — — 871 3,419 372 417,768 40.8 % High Tech Industries 271,560 — — — — 1,340 — 272,900 26.6 % Hotel, Gaming, Leisure, Restaurants 24,032 — — — — — — 24,032 2.3 % Insurance 78,953 — — — — — — 78,953 7.7 % Manufacturing, Capital Equipment 27,927 7,586 — — 9,797 240 — 45,550 4.4 % Media – Diversified & Production 39,662 — — — — — — 39,662 3.9 % Retail 31,004 — — — — — — 31,004 3.0 % Telecommunications — 12,363 — — — — — 12,363 1.2 % Transportation – Cargo, Distribution 44,248 — — — — — — 44,248 4.3 % Wholesale 41,234 — — — — 745 — 41,979 4.1 % Total Non-Controlled / Non-Affiliated Investments $ 1,869,261 $ 98,898 $ — $ — $ 11,287 $ 15,117 $ 372 $ 1,994,935 194.8 % % of Net Assets 182.5 % 9.7 % — % — % 1.1 % 1.5 % — % 194.8 % Non-Controlled / Affiliated Investments Chemicals, Plastics & Rubber $ — $ — $ — $ — $ — $ 44,990 $ — $ 44,990 4.4 % Consumer Goods – Durable 3,982 — — — — 886 — 4,868 0.5 % Diversified Investment Vehicles, Banking, Finance, Real Estate — — — 10,821 — — — 10,821 1.0 % Energy – Electricity — — — — 5,401 635 — 6,036 0.6 % Energy – Oil & Gas — — — — — 630 — 630 0.1 % Total Non-Controlled / Affiliated Investments $ 3,982 $ — $ — $ 10,821 $ 5,401 $ 47,141 $ — $ 67,345 6.6 % % of Net Assets 0.4 % — % — % 1.1 % 0.5 % 4.6 % — % 6.6 % Controlled Investments Aviation and Consumer Transport $ 275,002 $ — $ — $ — $ — $ 43,240 $ — $ 318,242 31.1 % Energy – Oil & Gas 25,470 6,116 — — — 2,839 — 34,425 3.4 % High Tech Industries 93,598 — — — 12,269 — — 105,867 10.3 % Transportation – Cargo, Distribution — — 22,000 — — 52,029 — 74,029 7.2 % Total Controlled Investments $ 394,070 $ 6,116 $ 22,000 $ — $ 12,269 $ 98,108 $ — $ 532,563 52.0 % % of Net Assets 38.5 % 0.6 % 2.1 % — % 1.2 % 9.6 % — % 52.0 % Total $ 2,267,313 $ 105,014 $ 22,000 $ 10,821 $ 28,957 $ 160,366 $ 372 $ 2,594,843 253.4 % % of Net Assets 221.4 % 10.3 % 2.1 % 1.1 % 2.8 % 15.7 % — % 253.4 % See notes to financial statements. 28 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS (Unaudited) December 31, 2021 (In thousands, except share data) Industry Classification Percentage of Total Investments (at Fair Value) as of December 31, 2021 Healthcare & Pharmaceuticals 16.1% High Tech Industries 14.6% Aviation and Consumer Transport 12.9% Business Services 10.3% Consumer Services 6.5% Beverage, Food & Tobacco 5.1% Transportation – Cargo, Distribution 4.6% Consumer Goods – Non-durable 3.4% Insurance 3.0% Automotive 2.9% Chemicals, Plastics & Rubber 2.6% Diversified Investment Vehicles, Banking, Finance, Real Estate 2.3% Manufacturing, Capital Equipment 1.8% Advertising, Printing & Publishing 1.6% Wholesale 1.6% Education 1.6% Media – Diversified & Production 1.5% Energy – Oil & Gas 1.3% Retail 1.2% Construction & Building 1.1% Consumer Goods – Durable 1.0% Aerospace & Defense 0.9% Hotel, Gaming, Leisure, Restaurants 0.9% Telecommunications 0.5% Environmental Industries 0.4% Energy – Electricity 0.3% Total Investments 100.0% See notes to financial statements. 29 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Advertising, Printing & Publishing FingerPaint Marketing KL Charlie Acquisition Company First Lien Secured Debt 7.25% (3M L+625, 1.00% Floor) 12/30/26 $ 18,653 $ 18,292 $ 18,467 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/30/26 2,190 (29) (22) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 12/30/26 4,380 (29) (44) (8)(9) (21)(23) KL Charlie Co-Invest, L.P. Common Equity - Common Stock N/A N/A 218,978 Shares 219 239 (9)(13) (25) 18,453 18,640 Simplifi Holdings, Inc. Simplifi Holdings, Inc. First Lien Secured Debt 7.25% (6M L+625, 1.00% Floor) 08/02/25 38,440 37,919 37,867 (9) First Lien Secured Debt - Revolver 8.50% (P+525) 08/02/25 1,440 1,440 1,418 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/02/25 960 (40) (14) (8)(9) (21)(23) 39,319 39,271 Total Advertising, Printing & Publishing $ 57,772 $ 57,911 Aerospace & Defense Erickson Inc Erickson Inc First Lien Secured Debt - Revolver 9.00% (3M L+750, 1.50% Floor) 04/28/22 $ 30,469 $ 30,469 $ 30,012 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/28/22 4,091 (101) (61) (8)(9) (21)(23) First Lien Secured Debt - Letters of Credit 7.50% 04/23/21 - 11/23/22 1,440 — (21) (8)(9) (23) Total Aerospace & Defense $ 30,368 $ 29,930 Automotive Crowne Automotive Vari-Form Group, LLC First Lien Secured Debt 11.00% (7.00% Cash plus 4.00% PIK) 02/02/23 $ 5,860 $ 901 $ 293 (9)(14) Vari-Form Inc. First Lien Secured Debt 11.00% (7.00% Cash plus 4.00% PIK) 02/02/23 2,110 391 105 (9)(14) 1,292 398 K&N Parent, Inc. K&N Parent, Inc. Second Lien Secured Debt 9.75% (3M L+875, 1.00% Floor) 10/21/24 23,765 23,549 21,982 Truck-Lite Co., LLC TL Lighting Holdings, LLC Common Equity - Equity N/A N/A 350 Shares 350 345 (9)(13) Truck-Lite Co., LLC First Lien Secured Debt 7.25% (3M L+625, 1.00% Floor) 12/14/26 28,585 28,029 28,088 (9) First Lien Secured Debt - Revolver 7.25% (3M L+625, 1.00% Floor) 12/13/24 1,526 1,526 1,508 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/13/24 1,432 (53) (17) (8)(9) (21)(23) First Lien Secured Debt - Letters of Credit 6.25% 11/30/21 - 12/21/21 94 — (1) (8)(9) (23) 29,852 29,923 Total Automotive $ 54,693 $ 52,303 See notes to financial statements. 30 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Aviation and Consumer Transport Merx Aviation Finance, LLC Merx Aviation Finance, LLC (5) First Lien Secured Debt - Revolver 10.00% 10/31/23 $ 190,500 $ 190,500 $ 190,500 (23) First Lien Secured Debt - Letter of Credit 2.25% 07/13/21 177 — — (23) Common Equity - Membership Interests N/A N/A N/A 120,300 125,061 (25) 310,800 315,561 Primeflight PrimeFlight Aviation Services, Inc. First Lien Secured Debt 6.50% (1M L+550, 1.00% Floor) 05/09/24 17,478 17,229 17,088 (9) Total Aviation and Consumer Transport $ 328,029 $ 332,649 Beverage, Food & Tobacco Bolthouse Farms Wm. Bolthouse Farms, Inc. Common Equity - Common Stock N/A N/A 1,000,000 Shares $ 1,001 $ 1,070 (13) Eagle Foods Eagle Foods Family Group, LLC First Lien Secured Debt 7.50% (3M L+650, 1.00% Floor) 06/14/24 23,458 23,317 23,224 (9) First Lien Secured Debt - Revolver 7.50% (3M L+650, 1.00% Floor) 06/14/23 750 750 742 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/14/23 3,000 (19) (30) (8)(9) (21)(23) 24,048 23,936 Florida Food Products, Inc. Florida Food Products, Inc. First Lien Secured Debt 7.50% (3M L+650, 1.00% Floor) 09/08/25 22,705 22,345 22,592 (9) First Lien Secured Debt 8.25% (3M L+725, 1.00% Floor) 09/08/25 2,977 2,795 2,977 (9) Florida Food Products, LLC First Lien Secured Debt - Revolver 7.50% (3M L+650, 1.00% Floor) 09/06/23 479 479 477 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/06/23 1,233 (21) (6) (8)(9) (21)(23) 25,598 26,040 Orgain, Inc. Butterfly Fighter Co-Invest, L.P. Common Equity - Membership Interests N/A N/A 1,000,000 Shares 1,005 1,275 (13) TNT Crust LLC TNT Crust LLC First Lien Secured Debt 7.75% (3M L+675, 1.00% Floor) 11/06/23 20,473 20,223 20,166 (9) First Lien Secured Debt - Revolver 7.75% (3M L+675, 1.00% Floor) 11/06/23 325 325 320 (9)(23) First Lien Secured Debt - Revolver 7.75% (1M L+675, 1.00% Floor) 11/06/23 813 813 801 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 11/06/23 2,114 (36) (32) (8)(9) (21)(23) Common Equity - Series A Units N/A N/A 244 Shares 30 276 (9)(13) 21,355 21,531 See notes to financial statements. 31 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Turkey Hill IC Holdings LLC Common Equity - Series A Units N/A N/A 169 Shares 169 351 (9)(13) THLP CO. LLC First Lien Secured Debt 7.00% (12M L+600, 1.00% Floor) 05/30/25 2,787 2,763 2,759 (9) First Lien Secured Debt 8.25% (P+500) 05/30/25 1 1 1 (9) First Lien Secured Debt 7.00% (2M L+600, 1.00% Floor) 05/30/25 19,562 19,290 19,366 (9) First Lien Secured Debt - Revolver 8.25% (P+500) 05/31/24 2,360 2,360 2,336 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 05/31/24 2,135 (57) (21) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 05/30/25 2,809 (39) (28) (8)(9) (21)(23) 24,487 24,764 Total Beverage, Food & Tobacco $ 97,494 $ 98,616 Business Services Access Information Access CIG, LLC Second Lien Secured Debt 7.87% (1M L+775) 02/27/26 $ 15,900 $ 15,807 $ 15,709 Ambrosia Buyer Corp. Ambrosia Buyer Corp. Second Lien Secured Debt 9.00% 08/28/25 21,429 20,536 12,795 (14) AML Rightsource Gabriel Partners, LLC First Lien Secured Debt 7.25% (6M L+625, 1.00% Floor) 09/21/26 10,176 9,945 9,971 (9) First Lien Secured Debt - Revolver 7.25% (6M L+625, 1.00% Floor) 09/21/26 443 443 435 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/21/26 222 (15) (4) (8)(9) (21)(23) 10,373 10,402 Claritas Claritas, LLC First Lien Secured Debt 7.00% (3M L+600, 1.00% Floor) 12/21/23 3,746 3,724 3,708 (9) First Lien Secured Debt - Revolver 7.00% (3M L+600, 1.00% Floor) 12/21/23 129 129 128 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/21/23 902 (6) (9) (8)(9) (21)(23) 3,847 3,827 Continuum Continuum Global Solutions, LLC First Lien Secured Debt - Revolver 6.50% (1M L+550, 1.00% Floor) 02/15/22 5,317 5,317 5,224 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 02/15/22 14,683 (142) (257) (8)(9) (21)(23) Preferred Equity - Preferred Equity N/A N/A 775 Shares 78 78 (9)(13) 5,253 5,045 Education Personnel Arthur Bidco Limited First Lien Secured Debt 6.00% (1M GBPL+550, 0.50% Floor) 08/31/24 £ 4,035 5,162 5,309 (9)(17) First Lien Secured Debt - Revolver 6.00% (1M GBPL+550, 0.50% Floor) 08/31/24 £ 1,471 1,881 1,933 (9)(17) (23) 7,043 7,242 Electro Rent Corporation Electro Rent Corporation Second Lien Secured Debt 10.00% (3M L+900, 1.00% Floor) 01/31/25 34,235 33,672 33,722 (9) See notes to financial statements. 32 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Elo Touch TGG TS Acquisition Company First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/14/23 1,750 — (33) (8)(21) (23) Ensemble Health EHL Merger Sub, LLC First Lien Secured Debt - Unfunded Revolver 0.25% Unfunded 08/01/24 4,155 (254) (140) (8)(21) (23) Jacent Jacent Strategic Merchandising First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 04/23/24 22,352 22,146 21,896 (9) First Lien Secured Debt - Revolver 6.75% (3M L+575, 1.00% Floor) 04/23/24 2,567 2,567 2,514 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/23/24 933 (32) (19) (8)(9) (21)(23) Common Equity - Common Stock N/A N/A 5,000 Shares 500 313 (9)(13) JSM Equity Investors, L.P. Preferred Equity - Class P Partnership Units N/A N/A 114 Shares 11 11 (9)(13) (25) 25,192 24,715 Jones & Frank JF Acquisition, LLC First Lien Secured Debt 6.50% (12M L+550, 1.00% Floor) 07/31/24 13,139 12,963 12,965 (9) First Lien Secured Debt 6.50% (3M L+550, 1.00% Floor) 07/31/24 169 167 167 (9) First Lien Secured Debt - Revolver 6.50% (1M L+550, 1.00% Floor) 07/31/24 628 628 619 (9)(23) First Lien Secured Debt - Revolver 6.50% (12M L+550, 1.00% Floor) 07/31/24 628 628 619 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 07/31/24 314 (21) (4) (8)(9) (21)(23) 14,365 14,366 MAKS Trident Bidco Limited First Lien Secured Debt 6.50% (6M L+550, 1.00% Floor) 11/08/25 34,562 33,765 34,013 (9)(17) McLarens Margaux Acquisition Inc. First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 12/19/24 23,054 22,766 22,876 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/19/24 1,601 (20) (12) (8)(9) (21)(23) Margaux UK Finance Limited First Lien Secured Debt 6.75% (3M GBPL+575, 1.00% Floor) 12/19/24 £ 7,183 8,965 9,835 (9)(17) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/19/24 £ 541 (8) (6) (8)(9) (17)(21)(23) 31,703 32,693 Naviga Naviga Inc. (fka Newscycle Solutions, Inc.) First Lien Secured Debt 8.00% (3M L+700, 1.00% Floor) 12/29/22 11,024 10,910 10,914 (9) First Lien Secured Debt - Revolver 8.00% (1M L+700, 1.00% Floor) 12/29/22 240 240 238 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/29/22 260 (4) (3) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 12/29/22 1,282 (15) (13) (8)(9) (21)(23) 11,131 11,136 PSI Services, LLC Lifelong Learner Holdings, LLC First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 10/19/26 32,536 32,005 31,420 (9) First Lien Secured Debt - Revolver 6.75% (3M L+575, 1.00% Floor) 10/20/25 1,039 1,039 1,009 (9)(23) See notes to financial statements. 33 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 10/20/25 1,946 (45) (57) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 10/19/26 2,388 (19) (82) (8)(9) (21)(23) 32,980 32,290 RA Outdoors, LLC (Active Outdoors) RA Outdoors, LLC First Lien Secured Debt 5.75% (6M L+475, 1.00% Floor) 09/11/24 6,525 6,461 6,460 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/09/22 1,200 (7) — (9)(21) (23) Second Lien Secured Debt 9.75% (6M L+875, 1.00% Floor) 09/11/25 31,950 31,504 31,311 (9) 37,958 37,771 Soliant Soliant Health, Inc. Common Equity - Membership Interests N/A N/A 300 Shares 300 374 (9)(13) Soliant Holdings, LLC First Lien Secured Debt 6.50% (1M L+550, 1.00% Floor) 12/31/26 16,274 16,007 16,274 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/31/24 1,936 (29) — (9)(21) (23) 16,278 16,648 Transplace Holdings, Inc. Transplace Holdings, Inc. Second Lien Secured Debt 9.75% (3M L+875, 1.00% Floor) 10/06/25 8,599 8,476 8,513 US Legal Support US Legal Support Investment Holdings, LLC Common Equity - Series A-1 Units N/A N/A 631,972 Shares 632 474 (9)(13) USLS Acquisition, Inc. First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 12/02/24 24,250 23,948 22,785 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/02/24 1,508 (20) (93) (8)(9) (21)(23) First Lien Secured Debt - Letters of Credit 5.75% 05/23/21 - 12/31/21 100 — (6) (8)(9) (23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 12/02/24 670 (7) (24) (8)(9) (21)(23) 24,553 23,136 Total Business Services $ 332,678 $ 323,850 Chemicals, Plastics & Rubber Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) Carbonfree Chemicals Holdings LLC (4) Common Equity - Common Equity / Interest N/A N/A 2,288 Shares $ 45,391 $ 25,424 (13)(16) (25) Carbonfree Chemicals SA LLC (4) Common Equity - Class B Units N/A N/A 3,152 Shares 32,434 — (3)(13) (16)(25) 77,825 25,424 Niacet Corporation Hare Bidco, Inc. Second Lien Secured Debt 9.75% (1M E+875, 1.00% Floor) 08/01/24 € 11,351 12,165 13,307 Westfall Technik, Inc. Westfall Technik, Inc. First Lien Secured Debt 7.25% (1M L+625, 1.00% Floor) 09/13/24 15,777 15,588 15,355 (9) First Lien Secured Debt - Revolver 7.25% (1M L+625, 1.00% Floor) 09/13/24 1,750 1,750 1,702 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/13/24 269 (23) (7) (8)(9) (21)(23) 17,315 17,050 Total Chemicals, Plastics & Rubber $ 107,305 $ 55,781 See notes to financial statements. 34 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Construction & Building Englert Gutter Buyer, Inc. First Lien Secured Debt 7.25% (1M L+625, 1.00% Floor) 03/06/25 $ 28,629 $ 28,267 $ 28,022 (9) First Lien Secured Debt - Revolver 8.50% (P+525) 03/06/24 409 409 401 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/06/24 2,279 (40) (43) (8)(9) (21)(23) First Lien Secured Debt - Letter of Credit 6.25% 07/01/21 39 — (1) (8)(9) (23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 03/06/25 55 (33) (1) (8)(9) (21)(23) Gutter Holdings, LP Common Equity - Common Stock N/A N/A 500 Shares 500 1,128 (9)(13) Total Construction & Building $ 29,103 $ 29,506 Consumer Goods – Durable A&V A&V Holdings Midco, LLC First Lien Secured Debt 6.38% (3M L+538, 1.00% Floor) 03/10/27 $ 10,854 $ 10,514 $ 10,550 First Lien Secured Debt - Unfunded Revolver 0.375% Unfunded 03/10/25 1,505 (107) (89) (8)(21) (23) 10,407 10,461 KDC KDC US Holdings First Lien Secured Debt - Revolver 3.11% (1M L+300) 12/21/23 2,696 2,696 2,635 (23) First Lien Secured Debt - Unfunded Revolver 0.38% Unfunded 12/21/23 3,270 — (74) (8)(21) (23) First Lien Secured Debt - Letter of Credit 3.00% 11/06/21 - 03/16/22 50 — (1) (8)(23) First Lien Secured Debt - Letters of Credit 3.00% 02/05/22 £ 4 — — (23) 2,696 2,560 KLO Holdings, LLC 1244311 B.C. Ltd. (4) First Lien Secured Debt 6.00% (1M L+500, 1.00% Floor) 09/25/25 2,993 2,993 2,857 (17) First Lien Secured Debt 6.00% (3M L+500 PIK, 1.00% Floor) 09/25/25 1,016 1,016 965 (17) Common Equity - Common Stock N/A N/A 1,000,032 Shares 1,000 1,719 (2)(13) (17)(25) 9357-5991 Quebec Inc. (4) First Lien Secured Debt 11.25% (3M L+775 Cash plus 2.00% PIK) 04/07/22 3,945 — — (14) 5,009 5,541 Liqui-Box Liqui-Box Holdings, Inc. First Lien Secured Debt - Revolver 5.50% (3M L+450, 1.00% Floor) 02/26/25 1,661 1,661 1,660 (23) First Lien Secured Debt - Revolver 6.75% (P+350) 02/26/25 190 190 190 (23) First Lien Secured Debt - Revolver 5.50% (1M L+450, 1.00% Floor) 02/26/25 475 475 474 (23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 02/26/25 1,161 (28) (1) (8)(21) (23) First Lien Secured Debt - Letter of Credit 4.50% 06/30/21 € 42 — — (23) First Lien Secured Debt - Letters of Credit 4.50% 09/27/21 - 12/31/24 32 — — (23) 2,298 2,323 See notes to financial statements. 35 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) NSi Industries Wildcat BuyerCo, Inc. First Lien Secured Debt 6.25% (3M L+525, 1.00% Floor) 02/27/26 7,174 6,878 7,074 First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 02/27/26 717 (13) (10) (8)(21) (23) First Lien Secured Debt - Letter of Credit 5.25% 08/30/21 8 — — (23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 02/27/26 2,029 (29) (28) (8)(21) (23) Wildcat Parent LP Common Equity - Common Stock N/A N/A 1,070 Shares 107 141 (13) 6,943 7,177 Sorenson Holdings, LLC Sorenson Holdings, LLC Common Equity - Membership Interests N/A N/A 587 Shares — 484 (10)(13) Total Consumer Goods – Durable $ 27,353 $ 28,546 Consumer Goods – Non-durable 3D Protein Protein For Pets Opco, LLC First Lien Secured Debt 5.50% (3M L+450, 1.00% Floor) 11/28/25 $ 11,487 $ 11,322 $ 11,429 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 05/31/24 2,219 (37) (11) (8)(9) (21)(23) 11,285 11,418 Beauty Industry Group (BIG) BIG Buyer, LLC First Lien Secured Debt 7.50% (6M L+650, 1.00% Floor) 11/20/23 19,428 19,121 19,247 (9) First Lien Secured Debt - Revolver 7.50% (1M L+650, 1.00% Floor) 11/20/23 722 722 708 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 11/20/23 1,083 (29) (22) (8)(9) (21)(23) 19,814 19,933 Dan Dee Project Comfort Buyer, Inc. First Lien Secured Debt 8.00% (3M L+700, 1.00% Floor) 02/01/25 22,435 22,003 21,457 (9) First Lien Secured Debt 8.00% (12M L+700, 1.00% Floor) 02/01/25 3,848 3,789 3,680 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 02/01/24 3,462 (59) (161) (8)(9) (21)(23) Preferred Equity - Preferred Equity N/A N/A 461,538 Shares 462 212 (9)(13) 26,195 25,188 LashCo Lash OpCo, LLC First Lien Secured Debt 9.25% (P+600) 03/18/26 10,223 9,988 9,943 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/18/25 697 (16) (19) (8)(9) (21)(23) 9,972 9,924 Olaplex Olaplex, Inc. First Lien Secured Debt 7.50% (1M L+650, 1.00% Floor) 01/08/26 12,300 12,104 12,210 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 01/08/25 2,300 (35) (19) (8)(9) (21)(23) 12,069 12,191 Sequential Brands Group, Inc. Sequential Brands Group, Inc. Second Lien Secured Debt 9.75% (1M L+875, 1.00% Floor) 02/07/24 12,837 12,777 10,536 (17) Total Consumer Goods – Non-durable $ 92,112 $ 89,190 See notes to financial statements. 36 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Consumer Services Clarus Commerce Marlin DTC-LS Midco 2, LLC First Lien Secured Debt 7.50% (6M L+650, 1.00% Floor) 07/01/25 $ 19,127 $ 18,817 $ 18,744 First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 07/01/25 685 (8) (14) (8)(21) (23) 18,809 18,730 First Heritage First Heritage Credit, LLC First Lien Secured Debt 4.87% (1M L+475) 04/02/22 18,000 17,945 17,883 (9) First Lien Secured Debt - Revolver 5.62% (1M L+550) 04/02/22 747 747 743 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/02/22 3,003 (13) (18) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 04/02/22 8,250 (33) (54) (8)(9) (21)(23) 18,646 18,554 Go Car Wash Go Car Wash Management Corp. First Lien Secured Debt 6.75% (1M L+575, 1.00% Floor) 12/31/26 1,838 1,808 1,796 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/31/26 417 (5) (9) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 12/31/26 2,742 (17) (62) (8)(9) (21)(23) 1,786 1,725 Lending Point LendingPoint LLC First Lien Secured Debt 11.50% (3M L+1050, 1.00% Floor) 12/30/25 11,375 11,267 11,253 (9) First Lien Secured Debt - Revolver 6.75% (3M L+575, 1.00% Floor) 12/30/25 1,000 991 989 (9)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 12/30/25 6,125 (58) (66) (8)(9) (21)(23) 12,200 12,176 Nutrisystem Nutrisystem, Inc. First Lien Secured Debt 7.50% (1M L+650, 1.00% Floor) 12/08/25 8,800 8,634 8,663 First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/08/25 200 (4) (3) (8)(21) (23) 8,630 8,660 Only About Children Nemo (BC) Bidco Pty Ltd First Lien Secured Debt 7.75% (1M BBSW+675, 1.00% Floor) 04/06/24 A$ 6,768 4,938 4,949 (17) First Lien Secured Debt - Unfunded Delayed Draw 3.04% Unfunded 04/06/24 A$ 232 (6) (7) (8)(17) (21)(23) 4,932 4,942 Paper Source Paper Source, Inc. First Lien Secured Debt 8.00% (3M L+700, 1.00% Floor) 05/22/24 11,322 11,179 8,831 (9) First Lien Secured Debt 11.00% (1M L+1000, 1.00% Floor) 06/30/21 1,691 1,691 1,691 (9) First Lien Secured Debt 13.00% (3M L+1200, 1.00% Floor) 02/26/21 556 556 434 (9)(11) First Lien Secured Debt - Revolver 8.00% (3M L+700, 1.00% Floor) 05/22/24 3,082 3,044 2,404 (9)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 06/30/21 1,597 (75) — (9)(21) (23) Preferred Equity - Preferred Equity N/A N/A 658 Shares — — (9)(13) (25) Common Equity - Class A Common Stock N/A N/A 20,548 Shares — — (9)(13) (25) 16,395 13,360 See notes to financial statements. 37 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Pinstripe Holdings, LLC Pinstripe Holdings, LLC First Lien Secured Debt 7.00% (1M L+600, 1.00% Floor) 01/17/25 6,860 6,773 6,798 The Club Company Eldrickco Limited First Lien Secured Debt 6.75% (6M GBPL+625 PIK, 0.50% Floor) 11/21/25 £ 10,976 13,797 14,336 (9)(17) First Lien Secured Debt - Revolver 6.75% (6M GBPL+625 PIK, 0.50% Floor) 05/21/25 £ 356 410 464 (9)(17) (23) First Lien Secured Debt - Unfunded Delayed Draw 1.93% Unfunded 11/21/25 £ 3,934 (85) (253) (8)(9) (17)(21)(23) 14,122 14,547 US Auto U.S. Auto Finance, Inc. First Lien Secured Debt 6.25% (3M L+525, 1.00% Floor) 04/17/24 11,842 11,875 11,810 (9) First Lien Secured Debt - Revolver 7.00% (3M L+600, 1.00% Floor) 04/17/24 6,734 6,734 6,715 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/17/24 6,600 (36) (18) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 04/17/24 8,222 (21) — (9)(21) (23) 18,552 18,507 Total Consumer Services $ 120,845 $ 117,999 Diversified Investment Vehicles, Banking, Finance, Real Estate Celink Compu-Link Corporation First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/11/24 $ 2,273 $ (33) $ (27) (8)(9) (21)(23) Peer Advisors, LLC First Lien Secured Debt 6.50% (1M L+550, 1.00% Floor) 06/11/24 19,034 18,759 18,809 (9) 18,726 18,782 Exeter Property Group, LLC Exeter Property Group, LLC First Lien Secured Debt 4.62% (1M L+450) 08/28/24 4,550 4,508 4,550 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/28/24 192 (2) — (9)(21) (23) 4,506 4,550 Flock Financial, LLC Flock SPV I, LLC First Lien Secured Debt 7.50% (1M L+650, 1.00% Floor) 08/30/22 14,533 14,505 14,388 (9)(17) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/30/22 1,333 (5) (13) (8)(9) (17)(21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 08/30/22 4,133 (38) (41) (8)(9) (17)(21)(23) 14,462 14,334 Golden Bear Golden Bear 2016-R, LLC (4) Structured Products and Other - Membership Interests 09/20/42 N/A 16,812 11,289 (3)(17) Purchasing Power, LLC Purchasing Power Funding I, LLC First Lien Secured Debt - Revolver 7.50% (1M L+650, 1.00% Floor) 01/24/24 8,383 8,384 8,334 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.40% Unfunded 01/24/24 729 — (4) (8)(9) (21)(23) 8,384 8,330 Ten-X, LLC Ten-X, LLC First Lien Secured Debt - Revolver 3.36% (1M L+325) 09/29/22 4,680 4,554 4,485 (23) Total Diversified Investment Vehicles, Banking, Finance, Real Estate $ 67,444 $ 61,770 See notes to financial statements. 38 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Education NFA Group SSCP Spring Bidco Limited First Lien Secured Debt 6.75% (6M GPBL+625, 0.50% Floor) 07/30/25 £ 30,000 $ 36,161 $ 41,159 (9)(17) Total Education $ 36,161 $ 41,159 Energy – Electricity Renew Financial LLC (f/k/a Renewable Funding, LLC) AIC SPV Holdings II, LLC (4) Preferred Equity - Preferred Stock N/A N/A 143 Shares $ 534 $ 498 (15)(17) (25) Renew Financial LLC (f/k/a Renewable Funding, LLC) (4) Preferred Equity - Series B Preferred Stock N/A N/A 1,505,868 Shares 8,343 42 (13)(25) Preferred Equity - Series D Preferred Stock N/A N/A 436,689 Shares 5,568 28 (13)(25) Preferred Equity - Series E Preferred Stock N/A N/A 441,576 Shares 1,902 5,106 (13)(17) (25) Renew JV LLC (4) Common Equity - Membership Interests N/A N/A 671,194 Shares 671 776 (13)(17) (25) 17,018 6,450 Solarplicity Group Limited (f/k/a AMP Solar UK) Solarplicity UK Holdings Limited First Lien Secured Debt 4.00% 03/08/23 £ 5,562 7,637 2,534 (14)(17) Preferred Equity - Preferred Stock N/A N/A 4,286 Shares 5,623 — (2)(13) (17) Common Equity - Ordinary Shares N/A N/A 2,825 Shares 4 — (2)(13) (17) 13,264 2,534 Total Energy – Electricity $ 30,282 $ 8,984 Energy – Oil & Gas Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5) Second Lien Secured Debt 10.00% PIK 03/29/21 $ 41,121 $ 36,926 $ 8,111 (11)(14) Common Equity - Common Stock N/A N/A 5,000,000 Shares 30,078 — (13)(25) 67,004 8,111 Pelican Pelican Energy, LLC (4) Common Equity - Membership Interests N/A N/A 1,444 Shares 16,764 2,170 (13)(16) (17)(25) Spotted Hawk SHD Oil & Gas, LLC (5) First Lien Secured Debt - Tranche A Note 14.00% (8.00% Cash plus 6.00% PIK) 07/31/21 47,511 44,059 9,899 (14) First Lien Secured Debt - Tranche B Note 14.00% PIK 07/31/21 89,434 44,380 — (14) First Lien Secured Debt - Tranche C Note 12.00% 07/31/21 24,728 24,728 25,470 Common Equity - Series A Units N/A N/A 7,600,000 Shares 1,411 — (13)(16) (25) 114,578 35,369 Total Energy – Oil & Gas $ 198,346 $ 45,650 Environmental Industries Ortega National Parks Ortega National Parks, LLC First Lien Secured Debt 6.25% (6M L+525, 1.00% Floor) 10/31/25 $ 11,603 $ 11,429 $ 11,132 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 10/31/25 1,366 (31) (55) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 10/31/25 6,202 (51) (252) (8)(9) (21)(23) Total Environmental Industries $ 11,347 $ 10,825 See notes to financial statements. 39 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Healthcare & Pharmaceuticals Akoya Akoya Biosciences, Inc. First Lien Secured Debt 7.85% (1M L+635, 1.50% Floor) 10/27/25 $ 9,750 $ 9,746 $ 9,735 (9) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 10/27/25 1,500 (7) (2) (8)(9) (21)(23) 9,739 9,733 AmeriVet Amerivet Partners Management, Inc. First Lien Secured Debt 6.25% (3M L+525, 1.00% Floor) 06/05/24 1,517 1,500 1,514 (9) First Lien Secured Debt 6.25% (6M L+525, 1.00% Floor) 06/05/24 26,883 26,509 26,827 (9) First Lien Secured Debt 6.25% (2M L+525, 1.00% Floor) 06/05/24 912 901 911 (9) First Lien Secured Debt - Revolver 7.50% (P+425) 06/05/24 524 524 523 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/05/24 282 (11) (1) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 06/05/24 4,519 (72) (9) (8)(9) (21)(23) Amerivet Partners Parent LP Common Equity - Class D Partnership Units N/A N/A 13 Shares 125 192 (9)(13) 29,476 29,957 Analogic Analogic Corporation First Lien Secured Debt 6.25% (1M L+525, 1.00% Floor) 06/22/24 18,033 17,789 17,762 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/22/23 1,826 (20) (27) (8)(9) (21)(23) 17,769 17,735 BioClinica Holding I, LP BioClinica Holding I, LP Second Lien Secured Debt 9.25% (1M L+825, 1.00% Floor) 10/21/24 24,612 24,359 24,501 BK Medical BK Medical Holding Company, Inc. First Lien Secured Debt 6.25% (1M L+525, 1.00% Floor) 06/22/24 7,231 7,179 7,187 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/22/24 783 (5) (2) (8)(9) (21)(23) 7,174 7,185 CARE Fertility Royton Bidco Limited First Lien Secured Debt 6.75% (6M GBPL+625, 0.50% Floor) 05/09/25 £ 15,510 19,796 21,093 (9)(17) First Lien Secured Debt 6.75% (1M GBPL+625, 0.50% Floor) 05/09/25 £ 2,147 2,701 2,920 (9)(17) First Lien Secured Debt - Unfunded Delayed Draw 2.19% Unfunded 05/09/25 £ 2,265 (59) (45) (8)(9) (17)(21)(23) 22,438 23,968 Cerus Cerus Corporation First Lien Secured Debt 7.25% (1M L+545, 1.80% Floor) 03/01/24 16,500 16,452 16,830 (9)(17) First Lien Secured Debt - Revolver 5.55% (1M L+375, 1.80% Floor) 03/01/24 125 125 127 (9)(17) (23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/01/24 875 (1) — (9)(17) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 03/01/24 4,500 (13) — (9)(17) (21)(23) 16,563 16,957 See notes to financial statements. 40 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Dohmen Life Science Services LSCS Holdings, Inc Second Lien Secured Debt 8.51% (6M L+825) 03/16/26 19,818 19,530 19,285 Emmes Corporation Emmes Blocker, Inc. Common Equity - Common Stock N/A N/A 306 Shares 306 475 (9)(13) The Emmes Company, LLC First Lien Secured Debt 6.00% (6M L+500, 1.00% Floor) 03/03/25 12,000 11,882 11,760 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/03/25 2,449 (24) (49) (8)(9) (21)(23) 12,164 12,186 Genesis Healthcare, Inc. Genesis Healthcare, Inc. First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/08/23 85,870 (305) (1,511) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 2.00% Unfunded 03/06/23 6,087 — (91) (8)(9) (21)(23) (305) (1,602) Gossamer GB001, Inc. First Lien Secured Debt 9.00% (1M L+700, 2.00% Floor) 01/01/25 6,000 5,995 6,120 (9)(17) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 01/01/25 24,000 (156) — (9)(17) (21)(23) 5,839 6,120 Health & Safety Institute HSI Halo Acquisition, Inc. First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 08/31/26 8,981 8,886 8,852 (9) First Lien Secured Debt - Revolver 6.75% (1M L+575, 1.00% Floor) 08/30/25 135 135 134 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/30/25 677 (6) (7) (8)(9) (21)(23) Common Equity - Common Stock N/A N/A 500 Shares 500 517 (9)(13) 9,515 9,496 IMA Group IMA Group Management Company, LLC First Lien Secured Debt 6.50% (6M L+550, 1.00% Floor) 05/30/24 458 454 439 First Lien Secured Debt 6.50% (3M L+550, 1.00% Floor) 05/30/24 4,616 4,587 4,432 First Lien Secured Debt - Revolver 6.50% (1M L+550, 1.00% Floor) 05/30/24 289 287 277 (23) 5,328 5,148 Kindeva Kindeva Drug Delivery L.P. First Lien Secured Debt 7.00% (3M L+600, 1.00% Floor) 05/01/26 1,820 1,781 1,804 (9) First Lien Secured Debt - Revolver 7.00% (1M L+600, 1.00% Floor) 05/01/25 50 50 50 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 05/01/25 117 (3) (1) (8)(9) (21)(23) 1,828 1,853 KureSmart Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.) Common Equity - Common Stock N/A N/A 133 Shares 133 162 (9)(13) Kure Pain Holdings, Inc. First Lien Secured Debt 6.50% (1M L+550, 1.00% Floor) 08/27/24 21,880 21,656 21,493 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/27/24 2,654 (27) (47) (8)(9) (21)(23) 21,762 21,608 See notes to financial statements. 41 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Lanai Holdings III, Inc. (Patterson Medical) Lanai Holdings III, Inc. Second Lien Secured Debt 11.50% (1M L+1050 PIK, 1.00% Floor) 08/28/23 19,564 19,385 19,079 Mannkind Corporation Mannkind Corporation First Lien Secured Debt 8.75% (1M L+675, 2.00% Floor) 08/01/24 17,333 17,218 17,888 (9) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 08/01/24 8,667 (29) — (9)(21) (23) Warrants N/A N/A 444,936 Shares 76 1,492 (9)(13) 17,265 19,380 Maxor National Pharmacy Services, LLC Maxor National Pharmacy Services, LLC First Lien Secured Debt 6.50% (3M L+550, 1.00% Floor) 11/22/23 23,638 23,379 23,590 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 11/22/22 1,558 (13) (1) (8)(9) (21)(23) 23,366 23,589 Medical Guardian Medical Guardian, LLC First Lien Secured Debt 8.75% (1M L+825, 0.50% Floor) 12/31/24 28,571 28,142 28,374 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/31/24 5,714 (86) (39) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.50% Unfunded 12/31/24 5,714 (114) (39) (8)(9) (21)(23) 27,942 28,296 Midwest Vision Midwest Vision Partners Management, LLC First Lien Secured Debt 7.25% (6M L+625, 1.00% Floor) 01/12/27 5,704 5,594 5,647 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 01/12/27 612 (12) (6) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 01/12/27 3,670 (35) (37) (8)(9) (21)(23) 5,547 5,604 Orchard Orchard Therapeutics plc First Lien Secured Debt 7.00% (1M L+600, 1.00% Floor) 05/24/24 8,333 8,307 8,400 (9)(17) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 05/24/24 16,667 (53) — (9)(17) (21)(23) 8,254 8,400 Ovation Fertility FPG Services, LLC First Lien Secured Debt 6.50% (3M L+550, 1.00% Floor) 06/13/25 13,901 13,713 13,762 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/13/24 2,105 (27) (21) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 06/13/25 3,768 (37) (38) (8)(9) (21)(23) 13,649 13,703 Partner Therapeutics, Inc Partner Therapeutics, Inc First Lien Secured Debt 7.65% (1M L+665, 1.00% Floor) 01/01/23 10,000 9,934 9,975 (9) Preferred Equity - Preferred Equity N/A N/A 55,556 Shares 333 416 (9)(13) Warrants N/A N/A 33,333 Shares 135 103 (9)(13) 10,402 10,494 See notes to financial statements. 42 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) PHS PHS Buyer, Inc. First Lien Secured Debt 6.25% (3M L+525, 1.00% Floor) 01/31/25 10,203 10,055 9,947 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 01/31/25 2,000 (29) (50) (8)(9) (21)(23) 10,026 9,897 Radius Health Radius Health, Inc. First Lien Secured Debt 7.75% (1M L+575, 2.00% Floor) 06/01/24 29,000 28,636 28,623 (9)(17) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 06/01/24 1,000 (2) (1) (8)(9) (17)(21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 06/01/24 4,833 — — (9)(17) (21)(23) 28,634 28,622 RHA Health Services Pace Health Companies, LLC First Lien Secured Debt 5.50% (3M L+450, 1.00% Floor) 08/02/24 3,914 3,874 3,902 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 08/02/24 395 (7) (1) (8)(9) (21)(23) First Lien Secured Debt - Letter of Credit 4.50% 12/10/21 105 — — (9)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 08/02/24 575 (27) (2) (8)(9) (21)(23) 3,840 3,899 Rigel Pharmaceuticals Rigel Pharmaceuticals, Inc. First Lien Secured Debt 7.15% (1M L+565, 1.50% Floor) 09/01/24 6,000 6,012 6,049 (9) RiteDose Holdings I, Inc. RiteDose Holdings I, Inc. First Lien Secured Debt 7.50% (1M L+650, 1.00% Floor) 09/13/23 13,333 13,155 13,333 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/13/23 2,000 (27) — (9)(21) (23) 13,128 13,333 Total Healthcare & Pharmaceuticals $ 390,629 $ 394,475 High Tech Industries Acronis AG Acronis AG First Lien Secured Debt 7.85% (1M L+635, 1.50% Floor) 12/18/24 $ 21,000 $ 20,922 $ 20,895 (9)(17) American Megatrends AMI US Holdings Inc. First Lien Secured Debt 6.50% (1M L+550, 1.00% Floor) 04/01/25 21,651 21,362 21,833 (9) First Lien Secured Debt - Revolver 5.61% (1M L+550) 04/01/24 2,093 2,093 2,093 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/01/24 814 (35) — (9)(21) (23) 23,420 23,926 Calero Holdings, Inc. Telesoft Holdings, LLC First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 12/16/25 22,500 22,101 22,104 First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/16/25 2,273 (40) (40) (8)(21) (23) 22,061 22,064 See notes to financial statements. 43 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) ChyronHego Corporation ChyronHego Corporation (5) First Lien Secured Debt 6.00% (3M L+350 Cash plus 1.50% PIK, 1.00% Floor) 12/31/22 84,202 81,644 81,676 First Lien Secured Debt - Revolver 6.00% (3M L+500, 1.00% Floor) 12/31/22 2,406 2,406 2,334 (23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/31/22 3,594 — (108) (8)(21) (23) Preferred Equity - Preferred Equity N/A N/A 7,800 Shares 6,000 6,151 (13)(25) 90,050 90,053 Digital.ai Digital.ai Software Holdings, Inc. First Lien Secured Debt 8.00% (3M L+700, 1.00% Floor) 02/10/27 22,581 21,919 22,242 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 02/10/27 2,419 (71) (36) (8)(9) (21)(23) 21,848 22,206 GoHealth Norvax, LLC First Lien Secured Debt 7.50% (3M L+650, 1.00% Floor) 09/15/25 31,341 30,753 31,654 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 09/13/24 3,182 (55) — (9)(21) (23) 30,698 31,654 International Cruise & Excursion Gallery, Inc. International Cruise & Excursion Gallery, Inc. First Lien Secured Debt 6.25% (3M L+525, 1.00% Floor) 06/06/25 14,587 14,411 13,350 LabVantage Solutions LabVantage Solutions Inc. First Lien Secured Debt 8.50% (1M L+750, 1.00% Floor) 09/30/21 7,256 7,236 7,256 LabVantage Solutions Limited First Lien Secured Debt 8.50% (1M E+750, 1.00% Floor) 09/30/21 € 8,053 8,642 9,465 (17) 15,878 16,721 Magnitude Software New Amsterdam Software BidCo LLC First Lien Secured Debt 6.00% (3M L+500, 1.00% Floor) 05/01/26 6,796 6,697 6,694 (9) First Lien Secured Debt 6.00% (3M E+500, 1.00% Floor) 05/01/26 € 730 807 845 (9) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 05/01/26 2,250 (16) (34) (8)(9) (21)(23) 7,488 7,505 MYCOM Magnate Holding Corp. First Lien Secured Debt 7.75% (3M L+625 Cash plus 1% PIK, 0.50% Floor) 12/16/24 18,112 17,959 15,575 (9)(17) First Lien Secured Debt - Revolver 7.75% (3M L+625 Cash plus 1% PIK, 0.50% Floor) 12/14/23 2,970 2,970 2,554 (9)(17) (23) First Lien Secured Debt - Unfunded Revolver 2.19% Unfunded 12/14/23 221 (27) (31) (8)(9) (17)(21)(23) First Lien Secured Debt - Letter of Credit 6.25% 04/22/21 140 — (20) (8)(9) (17)(23) 20,902 18,078 Omnitracs, LLC Omnitracs, LLC First Lien Secured Debt - Unfunded Revolver 0.375% Unfunded 03/23/23 3,750 (133) (263) (8)(21) (23) Pro Vigil Pro-Vigil Holding Company, LLC First Lien Secured Debt 9.50% (1M L+850, 1.00% Floor) 01/13/25 8,000 7,774 7,760 (9) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 01/13/25 2,000 (33) (60) (8)(9) (21)(23) 7,741 7,700 See notes to financial statements. 44 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Schlesinger Group Schlesinger Global, LLC First Lien Secured Debt 8.00% (3M L+600 Cash plus 1.00% PIK, 1.00% Floor) 07/12/25 9,066 8,885 8,857 (9) First Lien Secured Debt 8.00% (3M L+600 Cash plus 1.00% PIK, 1.00% Floor) 07/12/25 841 825 822 (9) 9,710 9,679 Simeio Simeio Group Holdings, Inc. First Lien Secured Debt 6.25% (1M L+525, 1.00% Floor) 01/30/26 8,567 8,464 8,422 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 01/30/26 1,731 (21) (29) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.75% Unfunded 01/30/26 4,615 (28) (83) (8)(9) (21)(23) 8,415 8,310 Sirsi Corporation Sirsi Corporation First Lien Secured Debt 5.75% (1M L+475, 1.00% Floor) 03/15/24 6,459 6,401 6,362 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/15/24 429 (4) (6) (8)(9) (21)(23) 6,397 6,356 Sontiq, Inc. Sontiq, Inc. First Lien Secured Debt 8.50% (3M L+750, 1.00% Floor) 03/02/26 14,167 13,888 13,883 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/02/26 833 (14) (17) (8)(9) (21)(23) 13,874 13,866 Springbrook Springbrook Holding Company, LLC First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 12/23/26 9,755 9,618 9,613 First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/23/26 1,463 (21) (21) (8)(21) (23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 12/23/26 3,659 (29) (53) (8)(21) (23) 9,568 9,539 Tax Slayer MEP-TS Midco, LLC First Lien Secured Debt 7.50% (6M L+650, 1.00% Floor) 12/31/26 13,514 13,256 13,379 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/31/26 1,452 (28) (15) (8)(9) (21)(23) 13,228 13,364 Telnyx Telnyx LLC First Lien Secured Debt 7.75% (1M L+625, 1.50% Floor) 10/21/25 5,250 5,216 5,250 (9) First Lien Secured Debt - Unfunded Delayed Draw 0.00% Unfunded 10/21/25 4,750 (43) — (9)(21) (23) 5,173 5,250 Total High Tech Industries $ 341,651 $ 340,253 Insurance PGM Holdings Corporation Turbo Buyer, Inc. First Lien Secured Debt 6.50% (6M L+550, 1.00% Floor) 12/02/25 $ 13,912 $ 13,638 $ 13,786 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/02/25 923 (18) (8) (8)(9) (21)(23) 13,620 13,778 See notes to financial statements. 45 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Relation Insurance AQ Sunshine, Inc. First Lien Secured Debt 7.25% (3M L+625, 1.00% Floor) 04/15/25 2,617 2,580 2,619 (9) First Lien Secured Debt 7.25% (6M L+625, 1.00% Floor) 04/15/25 18,524 18,273 18,542 (9) First Lien Secured Debt - Revolver 7.25% (6M L+625, 1.00% Floor) 04/15/24 471 471 472 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 04/15/24 668 (14) — (9)(21) (23) First Lien Secured Debt - Letter of Credit 6.25% 04/30/21 38 — — (9)(23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 04/15/25 4,611 (186) — (9)(21) (23) 21,124 21,633 Total Insurance $ 34,744 $ 35,411 Manufacturing, Capital Equipment AVAD, LLC AVAD Canada Ltd. First Lien Secured Debt - Revolver N/A 10/02/23 $ 284 $ 274 $ 283 (9)(23) AVAD, LLC First Lien Secured Debt - Revolver N/A 10/02/23 3,744 2,537 1,639 (9)(23) Surf Opco, LLC First Lien Secured Debt - Revolver 5.00% (1M L+400, 1.00% Floor) 03/16/26 1,667 1,667 1,667 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 03/16/26 15,000 — — (9)(21) (23) Preferred Equity - Class P-1 Preferred N/A N/A 33,333 Shares 3,333 6,667 (9)(16) (25) Preferred Equity - Class P-2 Preferred N/A N/A 85,164 Shares 8,516 3,328 (9)(16) (25) Common Equity - Class A-1 Common N/A N/A 3,333 Shares — 215 (9)(16) (25) 16,327 13,799 Kauffman Kauffman Holdco, LLC Common Equity - Common Stock N/A N/A 250,000 Shares 250 51 (9)(13) Kauffman Intermediate, LLC First Lien Secured Debt 7.50% (3M L+650, 1.00% Floor) 05/08/25 16,665 16,436 15,960 (9) First Lien Secured Debt - Revolver 7.50% (1M L+650, 1.00% Floor) 05/08/25 78 78 74 (9)(23) First Lien Secured Debt - Revolver 7.50% (3M L+650, 1.00% Floor) 05/08/25 388 388 372 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 05/08/25 1,165 (35) (49) (8)(9) (21)(23) First Lien Secured Debt - Letter of Credit 6.50% 07/25/21 155 — (7) (8)(9) (23) 17,117 16,401 MedPlast Holdings Inc. MedPlast Holdings Inc. Second Lien Secured Debt 7.86% (1M L+775) 07/02/26 8,000 7,947 7,619 Total Manufacturing, Capital Equipment $ 41,391 $ 37,819 Media – Diversified & Production New Wave Entertainment NW Entertainment, Inc. First Lien Secured Debt 10.00% (3M L+700 Cash plus 2.00% PIK, 1.00% Floor) 08/16/24 $ 26,450 $ 26,101 $ 25,130 (9)(19) First Lien Secured Debt - Revolver 8.00% (3M L+700, 1.00% Floor) 08/16/24 3,061 3,021 2,909 (9)(19) (23) 29,122 28,039 See notes to financial statements. 46 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) Nitro World Entertainment NWE OPCO LP First Lien Secured Debt 8.50% (1M L+650, 2.00% Floor) 12/19/22 4,815 4,801 4,790 (9) Sonar Entertainment Sonar Entertainment, Inc. First Lien Secured Debt 8.85% (1M L+760, 1.25% Floor) 11/15/21 6,849 6,824 5,651 (9)(19) First Lien Secured Debt - Revolver 8.85% (1M L+760, 1.25% Floor) 11/15/21 3,304 3,304 2,726 (9)(19) (23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 11/15/21 19,527 (83) — (9)(21) (23) 10,045 8,377 Total Media – Diversified & Production $ 43,968 $ 41,206 Retail IPS SI Holdings, Inc. First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 07/25/25 $ 31,324 $ 30,862 $ 30,757 (9) First Lien Secured Debt - Revolver 6.75% (3M L+575, 1.00% Floor) 07/25/24 853 853 842 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 07/25/24 2,560 (45) (34) (8)(9) (21)(23) 31,670 31,565 Rapid Displays Rapid Displays Acquisition Corporation First Lien Secured Debt 6.00% (3M L+500, 1.00% Floor) 07/01/25 10,305 10,161 10,305 (9) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 07/01/25 2,308 (16) — (9)(21) (23) First Lien Secured Debt - Unfunded Delayed Draw 1.00% Unfunded 07/01/25 1,154 (12) — (9)(21) (23) 10,133 10,305 Total Retail $ 41,803 $ 41,870 Telecommunications IPC Corporation IPC Corporation First Lien Secured Debt 5.21% (3M L+500) 08/06/21 $ 10,000 $ 9,989 $ 9,301 (9) IPC Information Systems UK Holdings Limited First Lien Secured Debt 8.00% (3M L+650, 1.50% Floor) 08/06/21 1,405 1,393 1,360 (9)(17) 11,382 10,661 Securus Technologies Holdings, Inc. Securus Technologies Holdings, Inc. Second Lien Secured Debt 9.25% (6M L+825, 1.00% Floor) 11/01/25 12,878 12,804 11,139 Total Telecommunications $ 24,186 $ 21,800 Transportation – Cargo, Distribution Dynamic Product Tankers (Prime), LLC Dynamic Product Tankers, LLC (5) Unsecured Debt 5.31% (6M L+500) 07/31/24 $ 22,000 $ 22,000 $ 22,000 (17) Common Equity - Class A Units N/A N/A N/A 49,806 25,528 (13)(17) (24)(25) 71,806 47,528 Heniff and Superior Heniff Holdco, LLC First Lien Secured Debt 6.75% (3M L+575, 1.00% Floor) 12/03/26 30,764 30,242 30,023 (9) First Lien Secured Debt - Revolver 6.75% (1M L+575, 1.00% Floor) 12/03/24 2,518 2,518 2,480 (9)(23) First Lien Secured Debt - Revolver 6.75% (3M L+575, 1.00% Floor) 12/03/24 1,047 1,047 1,030 (9)(23) See notes to financial statements. 47 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry / Company Investment Type Interest Rate (20) Maturity Date Par / Shares (12) Cost (28) Fair Value (1)(29) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 12/03/24 5 (58) — (9)(21) (23) First Lien Secured Debt - Letter of Credit 5.75% 02/06/22 355 — (5) (8)(9) (23) 33,749 33,528 MSEA Tankers LLC MSEA Tankers LLC (5) Common Equity - Class A Units N/A N/A N/A 57,660 57,028 (17)(18) (25) Total Transportation – Cargo, Distribution $ 163,215 $ 138,084 Wholesale Banner Solutions Banner Buyer, LLC First Lien Secured Debt 6.75% (1M L+575, 1.00% Floor) 10/31/25 $ 396 $ 393 $ 393 (9) First Lien Secured Debt 6.75% (12M L+575, 1.00% Floor) 10/31/25 12,414 12,247 12,314 (9) First Lien Secured Debt - Revolver 6.75% (1M L+575, 1.00% Floor) 10/31/25 387 387 384 (9)(23) First Lien Secured Debt - Unfunded Revolver 0.50% Unfunded 10/31/25 1,548 (26) (12) (8)(9) (21)(23) First Lien Secured Debt - Unfunded Delayed Draw 0.75% Unfunded 10/31/25 5,097 (37) (41) (8)(9) (21)(23) Banner Parent Holdings, Inc Common Equity - Common Stock N/A N/A 5,164 Shares 516 526 (9)(13) Total Wholesale $ 13,480 $ 13,564 Total Investments before Cash Equivalents $ 2,716,399 $ 2,449,151 J.P. Morgan U.S. Government Money Market Fund $ 50,180 $ 50,180 $ 50,180 (22) Total Investments after Cash Equivalents $ 2,766,579 $ 2,499,331 (6)(7) ____________________ (1) Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (See Note 2 to the financial statements). (2) Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments. Common shares in 1244311 B.C. Ltd. are CAD denominated equity investments. (3) Denotes investments in which the Company owns greater than 25% of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25% of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of March 31, 2021, we had a 100% equity ownership interest in Golden Bear 2016-R, LLC, a collateralized loan obligation and 31% ownership in Carbonfree Chemicals SA LLC. See notes to financial statements. 48 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (4) Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2020 and March 31, 2021 along with transactions during the year ended March 31, 2021 in these affiliated investments are as follows: Name of Issuer Fair Value at March 31, 2020 Gross Additions ● Gross Reductions ■ Net Change in Unrealized Gains (Losses) Fair Value at March 31, 2021 Net Realized Gains (Losses) Interest/Dividend/Other Income 1244311 B.C. Ltd., Common Stock $ — $ 1,000 $ — $ 719 $ 1,719 $ — $ — 1244311 B.C. Ltd., Term Loan — 1,016 — (51) 965 — 31 1244311 B.C. Ltd., Term Loan — 3,000 (7) (136) 2,857 — 91 KLO Acquisition LLC, Term Loan — 30 (4,838) 4,808 — (4,808) — 9357-5991 Quebec Inc., Term Loan — 2,118 (8,653) 6,535 — (3,653) — AIC SPV Holdings II, LLC, Preferred Stock 442 — — 56 498 — 102 AMP Solar Group, Inc., Class A Common Unit 8,736 — (10,000) 1,264 — 4,176 — Carbonfree Caustic SPE LLC, Term Loan 13,111 — (13,111) — — — — Carbonfree Chemicals Holdings LLC, Common Equity / Interest 15,105 14,541 (36) (4,186) 25,424 — — Carbonfree Chemicals SA LLC, Class B Units — 17,057 (26) (17,031) — — — Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC), Term Loan 4,389 — (17,057) 12,668 — — 11 Golden Bear 2016-R, LLC, Membership Interests 9,748 83 — 1,458 11,289 — 1,206 Pelican Energy, LLC, Membership Interests 2,411 — (58) (183) 2,170 — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock 3,284 — — (3,242) 42 — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock 2,101 — — (2,073) 28 — — Renew Financial LLC (f/k/a Renewable Funding, LLC), Series E Preferred Stock — 1,902 — 3,204 5,106 — — Renew JV LLC, Membership Interests 914 — (222) 84 776 — — $ 60,241 $ 40,747 $ (54,008) $ 3,894 $ 50,874 $ (4,285) $ 1,441 ____________________ ● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. ■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. See notes to financial statements. 49 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (5) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Fair value as of March 31, 2020 and March 31, 2021 along with transactions during the year ended March 31, 2021 in these controlled investments are as follows: Name of Issuer Fair Value at March 31, 2020 Gross Additions ● Gross Reductions ■ Net Change in Unrealized Gains (Losses) Fair Value at March 31, 2021 Net Realized Gains (Losses) Interest/Dividend/Other Income Majority Owned Company ChyronHego Corporation, Preferred Equity $ — $ 6,000 $ — $ 151 $ 6,151 $ — $ — ChyronHego Corporation, Term Loan — 81,644 — 32 81,676 — 429 ChyronHego Corporation, Revolver — 2,406 — (180) 2,226 — 1,161 Dynamic Product Tankers, LLC, Class A Units 36,457 — — (10,928) 25,528 — — Dynamic Product Tankers, LLC, First Lien Term Loan 42,000 130 (42,000) (130) — — 1,391 Dynamic Product Tankers, LLC, Unsecured Debt — 22,000 — — 22,000 — 738 Dynamic Product Tankers, LLC, Letters of Credit — — — — — — — Merx Aviation Finance, LLC, Membership Interests 28,447 105,300 — (8,686) 125,061 — — Merx Aviation Finance, LLC, Revolver 305,300 10,500 (125,300) — 190,500 — 19,796 Merx Aviation Finance, LLC, Letters of Credit — — — — — — — MSEA Tankers LLC, Class A Units 59,735 — (4,289) 1,582 57,028 — 1,691 Controlled Company Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Second Lien Term Loan 14,711 — — (6,600) 8,111 — — Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock — — — — — — — SHD Oil & Gas, LLC, Series A Units — — — — — — — SHD Oil & Gas, LLC, Tranche A Note 22,495 — (939) (11,656) 9,899 — — SHD Oil & Gas, LLC, Tranche B Note — — — — — — — SHD Oil & Gas, LLC, Tranche C Note 24,720 728 — 22 25,470 — 3,153 $ 533,865 $ 228,708 $ (172,528) $ (36,393) $ 553,650 $ — $ 28,359 ____________________ ● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. ■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. As of March 31, 2021, the Company had a 78%, 85%, 47%, 100%, 98% and 38% equity ownership interest in ChyronHego Corporation, Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC ( f/k/a Spotted Hawk Development LLC), respectively. See notes to financial statements. 50 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (6) Aggregate gross unrealized gain and loss for federal income tax purposes is $62,170 and $391,419, respectively. Net unrealized loss is $329,249 based on a tax cost of $2,828,580. (7) Substantially all securities are pledged as collateral to our multi-currency revolving credit facility (the “Senior Secured Facility” as defined in Note 8 to the financial statements). As such, these securities are not available as collateral to our general creditors. (8) The negative fair value is the result of the commitment being valued below par. (9) These are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive order the Company received from the Securities and Exchange Commission (the “SEC”) permitting us to do so. (See Note 3 to the financial statements for discussion of the exemptive order from the SEC.) (10) Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 2 to the financial statements for more information regarding ASC 820, Fair Value Measurements (“ASC 820”). (11) The maturity date for these investments are expected to be extended past March 31, 2021. The final terms of the extension are still under negotiation between the Company and the respective portfolio company. (12) Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”), and Australian Dollar (“A$”) . (13) Non-income producing security. (14) Non-accrual status (See Note 2 to the financial statements). (15) The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company has a 14.25% ownership interest in the residual tranche. (16) AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC, AIC Pelican Holdings, LLC and AP Surf Investments, LLC are wholly-owned special purpose vehicles which only hold investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC holds equity and debt investments in SHD Oil & Gas, LLC. AIC SHD Holdings LLC holds equity investments in SHD Oil & Gas, LLC. and equity investments in both Carbonfree Chemicals Holdings, LLC and Carbonfree Chemicals SA, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC. AP Surf Investments, LLC holds equity investments in Surf Opco, LLC. (17) Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of March 31, 2021, non-qualifying assets represented approximately 15.98% of the total assets of the Company. (18) As of March 31, 2021, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers. (19) Denoted security is currently accruing additional penalty interest above the stated rate. (20) Generally, the interest rate on floating interest rate investments is at benchmark rate plus spread. The borrower has an option to choose the benchmark rate, such as the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the federal funds rate or the prime rate. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates (1M L, 2M L, 3M L or 6M L, respectively), EURIBOR loans are typically indexed to 90-day EURIBOR rates (3M E), Bank Bill Swap rates are typically index to 90-day Bank Bill Swap rates (3M BBSW), GBP LIBOR loans are typically indexed to 90-day GBP LIBOR rates (3M GBP L) and EUR LIBOR loans are typically indexed to 90-day EUR LIBOR rates (3M E L) at the borrower’s option. LIBOR and EURIBOR loans may be subject to interest floors. As of March 31, 2021, rates for 1M L, 2M L, 3M L, 6M L, 1M E, 3M E, 1M BBSW, 3M BBSW, 1M GBP L, 3M GBP L, and Prime are 0.11%, 0.13%, 0.19%, 0.21%, (0.56%), (0.54%), 0.01%, 0.04%, 0.05%, 0.09% and 3.25%, respectively. (21) The rates associated with these undrawn committed revolvers and delayed draw term loans represent rates for commitment and unused fees. (22) This security is included in the Cash and Cash Equivalents on the Statements of Assets and Liabilities. See notes to financial statements. 51 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (23) As of March 31, 2021, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 10 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies. Portfolio Company Total Commitment Drawn Commitment Letters of Credit Undrawn Commitment A&V Holdings Midco, LLC $ 1,505 $ — $ — $ 1,505 Akoya Biosciences, Inc. 1,500 — — 1,500 Amerivet Partners Management, Inc. 5,325 524 — 4,801 AMI US Holdings Inc. 2,907 2,093 — 814 Analogic Corporation 1,826 — — 1,826 AQ Sunshine, Inc. 5,787 471 38 5,278 Arthur Bidco Limited* 2,029 2,029 — — AVAD Canada Ltd. 284 284 — — AVAD, LLC 3,744 3,744 — — Banner Buyer, LLC 7,032 387 — 6,645 BIG Buyer, LLC 1,805 722 — 1,083 BK Medical Holding Company, Inc. 783 — — 783 Cerus Corporation 5,500 125 — 5,375 ChyronHego Corporation 6,000 2,406 — 3,594 Claritas, LLC 1,031 129 — 902 Compu-Link Corporation 2,273 — — 2,273 Continuum Global Solutions, LLC 20,000 5,317 — 14,683 Eagle Foods Family Group, LLC 3,750 750 — 3,000 EHL Merger Sub, LLC 4,155 — — 4,155 Eldrickco Limited* 5,919 491 — 5,428 Erickson Inc 36,000 30,469 1,440 4,091 Exeter Property Group, LLC 192 — — 192 First Heritage Credit, LLC 12,000 747 — 11,253 Flock SPV I, LLC 5,467 — — 5,467 Florida Food Products, LLC 1,712 479 — 1,233 FPG Services, LLC 5,874 — — 5,874 Gabriel Partners, LLC 665 443 — 222 GB001, Inc. 24,000 — — 24,000 Genesis Healthcare, Inc. 91,957 — — 91,957 Go Car Wash Management Corp. 3,158 — — 3,158 Gutter Buyer, Inc. 2,782 409 39 2,334 Heniff Holdco, LLC 3,925 3,565 355 5 HSI Halo Acquisition, Inc. 812 135 — 677 IMA Group Management Company, LLC 289 289 — — Jacent Strategic Merchandising 3,500 2,567 — 933 JF Acquisition, LLC 1,569 1,255 — 314 Kauffman Intermediate, LLC 1,786 466 155 1,165 KDC US Holdings* 6,021 2,696 55 3,270 Kindeva Drug Delivery L.P. 167 50 — 117 KL Charlie Acquisition Company 6,569 — — 6,569 Kure Pain Holdings, Inc. 2,654 — — 2,654 Lash OpCo, LLC 697 — — 697 LendingPoint LLC 7,125 1,000 — 6,125 Lifelong Learner Holdings, LLC 5,373 1,039 — 4,334 Liqui-Box Holdings, Inc.* 3,568 2,326 81 1,161 Magnate Holding Corp. 3,331 2,970 140 221 See notes to financial statements. 52 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Portfolio Company Total Commitment Drawn Commitment Letters of Credit Undrawn Commitment Mannkind Corporation 8,667 — — 8,667 Margaux Acquisition Inc. 1,601 — — 1,601 Margaux UK Finance Limited* 747 — — 747 Marlin DTC-LS Midco 2, LLC 685 — — 685 Maxor National Pharmacy Services, LLC 1,558 — — 1,558 Medical Guardian, LLC 11,429 — — 11,429 MEP-TS Midco, LLC 1,452 — — 1,452 Merx Aviation Finance, LLC 190,677 190,500 177 — Nemo (BC) Bidco Pty Ltd* 177 — — 177 New Amsterdam Software BidCo LLC 2,250 — — 2,250 Norvax, LLC 3,182 — — 3,182 Nutrisystem, Inc. 200 — — 200 NW Entertainment, Inc. 3,061 3,061 — — Olaplex, Inc. 2,300 — — 2,300 Omnitracs, LLC 3,750 — — 3,750 Orchard Therapeutics plc 16,667 — — 16,667 Ortega National Parks, LLC 7,568 — — 7,568 Pace Health Companies, LLC 1,075 — 105 970 Paper Source, Inc. 4,679 3,082 — 1,597 PHS Buyer, Inc. 2,000 — — 2,000 Project Comfort Buyer, Inc. 3,462 — — 3,462 Protein For Pets Opco, LLC 2,219 — — 2,219 Purchasing Power Funding I, LLC 9,113 8,384 — 729 RA Outdoors, LLC 1,200 — — 1,200 Radius Health, Inc. 5,833 — — 5,833 Rapid Displays Acquisition Corporation 3,462 — — 3,462 RiteDose Holdings I, Inc. 2,000 — — 2,000 Royton Bidco Limited* 3,125 — — 3,125 SI Holdings, Inc. 3,413 853 — 2,560 Simeio Group Holdings, Inc. 6,346 — — 6,346 Simplifi Holdings, Inc. 2,400 1,440 — 960 Sirsi Corporation 429 — — 429 Soliant Holdings, LLC 1,936 — — 1,936 Sonar Entertainment, Inc. 22,831 3,304 — 19,527 Springbrook Holding Company, LLC 5,122 — — 5,122 Telesoft Holdings, LLC 2,273 — — 2,273 Telnyx LLC 4,750 — — 4,750 Ten-X, LLC 4,680 4,680 — — TGG TS Acquisition Company 1,750 — — 1,750 The Emmes Company, LLC 2,449 — — 2,449 THLP CO. LLC 7,304 2,360 — 4,944 TNT Crust LLC 3,252 1,138 — 2,114 Truck-Lite Co., LLC 3,052 1,526 94 1,432 Turbo Buyer, Inc. 923 — — 923 U.S. Auto Finance, Inc. 21,556 6,734 — 14,822 USLS Acquisition, Inc. 2,278 — 100 2,178 Westfall Technik, Inc. 2,019 1,750 — 269 Wildcat BuyerCo, Inc. 2,754 — 8 2,746 Naviga Inc. (fka Newscycle Solutions, Inc.) 1,782 240 — 1,542 Surf Opco, LLC 16,667 1,667 — 15,000 See notes to financial statements. 53 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Portfolio Company Total Commitment Drawn Commitment Letters of Credit Undrawn Commitment Digital.ai Software Holdings, Inc. 2,419 — — 2,419 Midwest Vision Partners Management, LLC 4,281 — — 4,281 Pro-Vigil Holding Company, LLC 2,000 — — 2,000 Sontiq, Inc. 833 — — 833 Total Commitments $ 737,986 $ 301,096 $ 2,787 $ 434,103 ____________________ * These investments are in a foreign currency and the total commitment has been converted to USD using the March 31, 2021 exchange rate. (24) As of March 31, 2021, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers. (25) Securities that are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of March 31, 2021, the aggregate fair value of these securities is $259,991 or 25% of the Company's net assets. The acquisition dates of the restricted securities are as follows: Issuer Investment Type Acquisition Date 1244311 B.C. Ltd. Common Equity - Common Stock 9/30/2020 AIC SPV Holdings II, LLC Preferred Equity - Preferred Stock 6/1/2017 Carbonfree Chemicals Holdings LLC Common Equity - Common Equity / Interest 11/19/2019 Carbonfree Chemicals SA LLC Common Equity - Class B Units 11/19/2019 ChyronHego Corporation Preferred Equity - Preferred Equity 12/29/2020 Dynamic Product Tankers, LLC Common Equity - Class A Units 4/3/2015 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) Common Equity - Common Stock 3/29/2016 JSM Equity Investors, L.P. Preferred Equity - Class P Partnership Units 6/30/2020 KL Charlie Co-Invest, L.P. Common Equity - Common Stock 12/29/2020 Merx Aviation Finance, LLC Common Equity - Membership Interests 5/22/2013 MSEA Tankers LLC Common Equity - Class A Units 12/12/2014 Paper Source, Inc. Preferred Equity - Preferred Equity 9/11/2020 Paper Source, Inc. Common Equity - Class A Common Stock 10/30/2020 Pelican Energy, LLC Common Equity - Membership Interests 2/16/2016 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series E Preferred Stock 12/23/2020 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series D Preferred Stock 10/1/2015 Renew Financial LLC (f/k/a Renewable Funding, LLC) Preferred Equity - Series B Preferred Stock 4/9/2014 Renew JV LLC Common Equity - Membership Interests 3/20/2017 SHD Oil & Gas, LLC Common Equity - Series A Units 11/18/2016 Surf Opco, LLC Preferred Equity - Class P-1 Preferred 3/17/2021 Surf Opco, LLC Preferred Equity - Class P-2 Preferred 3/17/2021 Surf Opco, LLC Common Equity - Class A-1 Common 3/17/2021 See notes to financial statements. 54 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (26) The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of March 31, 2021: Industry First Lien - Secured Debt Second Lien - Secured Debt Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Non-Controlled / Non-Affiliated Investments Advertising, Printing & Publishing $ 57,553 $ — $ — $ — $ — $ 219 $ — $ 57,772 Aerospace & Defense 30,368 — — — — — — 30,368 Automotive 30,794 23,549 — — — 350 — 54,693 Aviation and Consumer Transport 17,229 — — — — — — 17,229 Beverage, Food & Tobacco 95,289 — — — — 2,205 97,494 Business Services 221,162 109,995 — — 89 1,432 — 332,678 Chemicals, Plastics & Rubber 17,315 12,165 — — — — — 29,480 Construction & Building 28,603 — — — — 500 — 29,103 Consumer Goods – Durable 22,237 — — — — 107 — 22,344 Consumer Goods – Non-Durable 78,873 12,777 — — 462 — — 92,112 Consumer Services 120,845 — — — — — — 120,845 Diversified Investment Vehicles, Banking, Finance, Real Estate 50,632 — — — — — — 50,632 Education 36,161 — — — — — — 36,161 Energy – Electricity 7,637 — — — 5,623 4 — 13,264 Environmental Industries 11,347 — — — — — — 11,347 Healthcare & Pharmaceuticals 325,747 63,274 — — 333 1,064 211 390,629 High Tech Industries 251,601 — — — — — — 251,601 Insurance 34,744 — — — — — — 34,744 Manufacturing, Capital Equipment 21,345 7,947 — — 11,849 250 — 41,391 Media – Diversified & Production 43,968 — — — — — — 43,968 Retail 41,803 — — — — — — 41,803 Telecommunications 11,382 12,804 — — — — — 24,186 Transportation – Cargo, Distribution 33,749 — — — — — — 33,749 Wholesale 12,964 — — — — 516 — 13,480 Total Non-Controlled / Non-Affiliated Investments $ 1,603,348 $ 242,511 $ — $ — $ 18,356 $ 6,647 $ 211 $ 1,871,073 Non-Controlled / Affiliated Investments Chemicals, Plastics & Rubber $ — $ — $ — $ — $ — $ 77,825 $ — $ 77,825 Consumer Goods – Durable 4,009 — — — — 1,000 — 5,009 Diversified Investment Vehicles, Banking, Finance, Real Estate — — — 16,812 — — — 16,812 Energy – Electricity — — — — 16,347 671 — 17,018 Energy – Oil & Gas — — — — — 16,764 — 16,764 Manufacturing, Capital Equipment — — — — — — — — Total Non-Controlled / Affiliated Investments $ 4,009 $ — $ — $ 16,812 $ 16,347 $ 96,260 $ — $ 133,428 Controlled Investments Aviation and Consumer Transport $ 190,500 $ — $ — $ — $ — $ 120,300 $ — $ 310,800 Energy – Oil & Gas 113,167 36,926 — — — 31,489 — 181,582 High Tech Industries 84,050 — — — 6,000 — — 90,050 Transportation – Cargo, Distribution — — 22,000 — — 107,466 — 129,466 Total Controlled Investments $ 387,717 $ 36,926 $ 22,000 $ — $ 6,000 $ 259,255 $ — $ 711,898 Total $ 1,995,074 $ 279,437 $ 22,000 $ 16,812 $ 40,703 $ 362,162 $ 211 $ 2,716,399 See notes to financial statements. 55 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) (27) The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of March 31,2021: Industry First Lien - Secured Debt Second Lien - Secured Debt Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total % of Net Assets Non-Controlled / Non-Affiliated Investments Advertising, Printing & Publishing $ 57,672 $ — $ — $ — $ — $ 239 $ — $ 57,911 5.6 % Aerospace & Defense 29,930 — — — — — — 29,930 3.0 % Automotive 29,976 21,982 — — — 345 — 52,303 5.0 % Aviation and Consumer Transport 17,088 — — — — — — 17,088 1.6 % Beverage, Food & Tobacco 95,644 — — — — 2,972 — 98,616 9.6 % Business Services 220,550 102,050 — — 89 1,161 — 323,850 31.2 % Chemicals, Plastics & Rubber 17,050 13,307 — — — — — 30,357 3.0 % Construction & Building 28,378 — — — — 1,128 — 29,506 2.8 % Consumer Goods – Durable 22,380 — — — — 625 — 23,005 2.2 % Consumer Goods – Non-durable 78,442 10,536 — — 212 — — 89,190 8.6 % Consumer Services 117,999 — — — — — — 117,999 11.4 % Diversified Investment Vehicles, Banking, Finance, Real Estate 50,481 — — — — — — 50,481 4.9 % Education 41,159 — — — — — — 41,159 4.0 % Energy – Electricity 2,534 — — — — — — 2,534 0.2 % Environmental Industries 10,825 — — — — — — 10,825 1.0 % Healthcare & Pharmaceuticals 328,253 62,865 — — 416 1,346 1,595 394,475 38.1 % High Tech Industries 250,200 — — — — — — 250,200 24.1 % Insurance 35,411 — — — — — — 35,411 3.4 % Manufacturing, Capital Equipment 19,939 7,619 — — 9,995 266 — 37,819 3.6 % Media – Diversified & Production 41,206 — — — — — — 41,206 4.0 % Retail 41,870 — — — — — — 41,870 4.0 % Telecommunications 10,661 11,139 — — — — — 21,800 2.1 % Transportation – Cargo, Distribution 33,528 — — — — — — 33,528 3.2 % Wholesale 13,038 — — — — 526 — 13,564 1.3 % Total Non-Controlled / Non-Affiliated Investments $ 1,594,214 $ 229,498 $ — $ — $ 10,712 $ 8,608 $ 1,595 $ 1,844,627 177.9 % % of Net Assets 153.8 % 22.1 % — % — % 1.0 % 0.8 % 0.2 % 177.9 % Non-Controlled / Affiliated Investments Chemicals, Plastics & Rubber $ — $ — $ — $ — $ — $ 25,424 $ — $ 25,424 2.5 % Consumer Goods – Durable 3,822 — — — — 1,719 — 5,541 0.5 % Diversified Investment Vehicles, Banking, Finance, Real Estate — — — 11,289 — — — 11,289 1.1 % Energy – Electricity — — — — 5,674 776 — 6,450 0.6 % Energy – Oil & Gas — — — — — 2,170 — 2,170 0.2 % Manufacturing, Capital Equipment — — — — — — — — — % Total Non-Controlled / Affiliated Investments $ 3,822 $ — $ — $ 11,289 $ 5,674 $ 30,089 $ — $ 50,874 4.9 % % of Net Assets 0.4 % — % — % 1.1 % 0.5 % 2.9 % — % 4.9 % See notes to financial statements. 56 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry First Lien - Secured Debt Second Lien - Secured Debt Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total % of Net Assets Controlled Investments Aviation and Consumer Transport $ 190,500 $ — $ — $ — $ — $ 125,061 $ — $ 315,561 30.4 % Energy – Oil & Gas 35,369 8,111 — — — — — 43,480 4.2 % High Tech Industries 83,902 — — — 6,151 — — 90,053 8.7 % Transportation – Cargo, Distribution — — 22,000 — — 82,556 — 104,556 10.1 % Total Controlled Investments $ 309,771 $ 8,111 $ 22,000 $ — $ 6,151 $ 207,617 $ — $ 553,650 53.4 % % of Net Assets 29.9 % 0.8 % 2.1 % — % 0.6 % 20.0 % — % 53.4 % Total $ 1,907,807 $ 237,609 $ 22,000 $ 11,289 $ 22,537 $ 246,314 $ 1,595 $ 2,449,151 236.2 % % of Net Assets 184.1 % 22.9 % 2.1 % 1.1 % 2.1 % 23.7 % 0.2 % 236.2 % See notes to financial statements. 57 Table of Contents APOLLO INVESTMENT CORPORATION SCHEDULE OF INVESTMENTS March 31, 2021 (In thousands, except share data) Industry Classification Percentage of Total Investments (at Fair Value) as of March 31, 2021 Healthcare & Pharmaceuticals 16.1% High Tech Industries 13.9% Aviation and Consumer Transport 13.6% Business Services 13.2% Transportation – Cargo, Distribution 5.6% Consumer Services 4.8% Beverage, Food & Tobacco 4.0% Consumer Goods – Non-durable 3.6% Diversified Investment Vehicles, Banking, Finance, Real Estate 2.5% Advertising, Printing & Publishing 2.4% Chemicals, Plastics & Rubber 2.3% Automotive 2.1% Energy – Oil & Gas 1.9% Retail 1.7% Media – Diversified & Production 1.7% Education 1.7% Manufacturing, Capital Equipment 1.5% Insurance 1.5% Aerospace & Defense 1.2% Construction & Building 1.2% Consumer Goods – Durable 1.2% Telecommunications 0.9% Wholesale 0.6% Environmental Industries 0.4% Energy – Electricity 0.4% Total Investments 100.0% See notes to financial statements. 58 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (In thousands, except share and per share data) Note 1. Organization Apollo Investment Corporation (the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” or “our”), a Maryland corporation incorporated on February 2, 2004, is a closed-end, externally managed, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). In addition, for tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We commenced operations on April 8, 2004 receiving net proceeds of $870,000 from our initial public offering by selling 62 million shares of common stock at a price of $15.00 per share (20.7 million shares at a price of $45.00 per share adjusted for the one-for-three reverse stock split). Since then, and through December 31, 2021, we have raised approximately $2,210,067 in net proceeds from additional offerings of common stock and repurchased common stock for $243,402. Apollo Investment Management, L.P. (the “Investment Adviser” or “AIM”) is our investment adviser and an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“AGM”). The Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of and provides investment advisory services to the Company. Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance. Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $250 million. Our portfolio may include equity interests such as common stock, preferred stock, warrants and/or options. Note 2. Significant Accounting Policies The following is a summary of the significant accounting and reporting policies used in preparing the financial statements. Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) pursuant to the requirements on Form 10-Q, ASC 946, Financial Services — Investment Companies (“ASC 946”), and Articles 6, 10 and 12 of Regulation S-X. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of the financial statements for the periods presented, have been included. Under the 1940 Act, ASC 946, and the regulations pursuant to Article 6 of Regulation S-X, we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us. These financial statements should be read in conjunction with the audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended March 31, 2021. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, gains and losses during the reported periods. Changes in the economic environment, financial markets, credit worthiness of our portfolio companies, the global outbreak of a novel coronavirus (COVID-19) that began in 2020 and still persists and any other parameters used in determining these estimates could cause actual results to differ materially. 59 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Cash and Cash Equivalents The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements, and other high-quality, short-term debt securities would qualify as cash equivalents. Cash and cash equivalents are carried at cost which approximates fair value. Cash equivalents held as of December 31, 2021 was $22,367. Cash equivalents held as of March 31, 2021 was $50,180. Collateral on Option Contracts Collateral on option contracts represents restricted cash held by our counterparty as collateral against our derivative instruments until such contracts mature or are settled upon per agreement of buyer and seller of the contract. In accordance with Accounting Standards Update No. 2016-18, Statement of Cash Flows: Restricted Cash , the Statements of Cash Flows outline the changes in cash, including both restricted and unrestricted cash, cash equivalents and foreign currencies. As of December 31, 2021 and March 31, 2021 the Company did not hold any derivative contracts. Investment Transactions Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains and losses related to that instrument. Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Specifically, we record all security transactions on a trade date basis. Amounts for investments recognized or derecognized but not yet settled are reported as a receivable for investments sold and a payable for investments purchased, respectively, in the Statements of Assets and Liabilities. Fair Value Measurements The Company follows guidance in ASC 820, Fair Value Measurement (“ASC 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. ASC 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for the asset or liability. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the values that would be received upon an actual disposition of such investments. 60 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Investment Valuation Process Under procedures established by our Board of Directors, we value investments, including certain secured debt, unsecured debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are unavailable or are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent third party valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case such investments shall be valued at fair value as determined in good faith by or under the direction of our Board of Directors including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of our Board of Directors. Such determination of fair values may involve subjective judgments and estimates. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board of Directors has approved a multi-step valuation process each quarter, as described below: 1. Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser who are responsible for the portfolio investment. 2. Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser. 3. Independent valuation firms are engaged by our Board of Directors to conduct independent appraisals by reviewing our Investment Adviser’s preliminary valuations and then making their own independent assessment. 4. The Audit Committee of the Board of Directors reviews the preliminary valuation of our Investment Adviser and the valuation prepared by the independent valuation firms and responds, if warranted, to the valuation recommendation of the independent valuation firms. 5. The Board of Directors discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of our Investment Adviser, the applicable independent valuation firm, and the Audit Committee of the Board of Directors. 6. For Level 3 investments entered into within the current quarter, the cost (purchase price adjusted for accreted original issue discount/amortized premium) or any recent comparable trade activity on the security investment shall be considered to reasonably approximate the fair value of the investment, provided that no material change has since occurred in the issuer’s business, significant inputs or the relevant environment. 61 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Investments determined by these valuation procedures which have a fair value of less than $1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides an independent assessment of value. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. During the nine months ended December 31, 2021, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process. Derivative Instruments The Company recognizes all derivative instruments as assets or liabilities at fair value in its financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result the Company presents changes in fair value and realized gains or losses through current period earnings. Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process. The derivatives may require the Company to pay or receive an upfront fee or premium. These upfront fees or premiums are carried forward as cost or proceeds to the derivatives. Exchange-traded derivatives which include put and call options are valued based on the last reported sales price on the date of valuation. Over-the-counter (“OTC”) derivatives, including credit default swaps, are valued by the Investment Adviser using quotations from counterparties. In instances where models are used, the value of the OTC derivative is derived from the contractual terms of, and specific risks inherent in, the instrument as well as the availability and reliability of observable inputs, such as credit spreads. As of December 31, 2021 and March 31, 2021, the Company did not hold any derivative contracts. Offsetting Assets and Liabilities The Company has elected not to offset cash collateral against the fair value of derivative contracts. The fair values of these derivatives are presented on a gross basis, even when derivatives are subject to master netting agreements. As of December 31, 2021 and March 31, 2021, the Company did not hold any derivative contracts. Valuation of Other Financial Assets and Financial Liabilities ASC 825, Financial Instruments , permits an entity to choose, at specified election dates, to measure certain assets and liabilities at fair value (the “Fair Value Option”). We have not elected the Fair Value Option to report selected financial assets and financial liabilities. Debt issued by the Company is reported at amortized cost (see Note 6 to the financial statements). The carrying value of all other financial assets and liabilities approximates fair value due to their short maturities or their close proximity of the originations to the measurement date. 62 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Realized Gains or Losses Security transactions are accounted for on a trade date basis. Realized gains or losses on investments are calculated by using the specific identification method. Securities that have been called by the issuer are recorded at the call price on the call effective date. Investment Income Recognition The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized. Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management’s judgment. Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, bridge fees, and structuring fees which are recorded when earned. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pool of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are and will be payable solely from the cash flows from such assets. As such, any unforeseen event in these underlying pools of assets might impact the expected recovery of principal and future accrual of income. Expenses Expenses include management fees, performance-based incentive fees, interest expense, insurance expenses, administrative service fees, legal fees, directors’ fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis. Financing Costs The Company records expenses related to shelf filings and applicable offering costs as deferred financing costs in the Statements of Assets and Liabilities. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of capital upon utilization, in accordance with ASC 946-20-25, or charged to expense if no offering is completed. 63 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The Company records origination and other expenses related to its debt obligations as deferred financing costs. The deferred financing cost for all outstanding debt is presented as a direct deduction from the carrying amount of the related debt liability, except that incurred under the Senior Secured Facility (as defined in Note 6 to the financial statements), which the Company presents as an asset on the Statements of Assets and Liabilities. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation which approximates the effective yield method. In the event that we modify or extinguish our debt before maturity, the Company follows the guidance in ASC 470-50, Modification and Extinguishments (“ASC 470-50”). For modifications to or exchanges of our Senior Secured Facility (as defined in Note 6 to the financial statements), any unamortized deferred financing costs relating to lenders who are not part of the new lending group are expensed. For extinguishments of our senior secured notes and senior unsecured notes, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment. Foreign Currency Translations The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the foreign exchange rate on the date of valuation. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company. Dividends and Distributions Dividends and distributions to common stockholders are recorded as of the ex-dividend date. The amount to be paid out as a distribution is determined by the Board of Directors each quarter. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies . Share Repurchases In connection with the Company’s share repurchase program, the cost of shares repurchased is charged to net assets on the trade date. Federal and State Income Taxes We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must (among other requirements) meet certain source-of-income and asset diversification requirements and timely distribute to its stockholders at least 90% of its investment company taxable income as defined by the Code, for each year. The Company (among other requirements) has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from corporate-level income taxes. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of distributions paid to stockholders through December 31, 2021 may include return of capital, however, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ending March 31, 2022. The character of income and gains that we will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividend and distributions and other permanent book and tax difference are reclassified to paid-in capital. If we do not distribute (or are not deemed to have distributed) at least 98% of our annual ordinary income and 98.2% of our capital gains in the calendar year earned, we will generally be required to pay excise tax equal to 4% of the amount by which 98% of our annual ordinary income and 98.2% of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated undistributed taxable income. 64 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) If we fail to satisfy the annual distribution requirement or otherwise fail to qualify as a RIC in any taxable year, we would be subject to tax on all of our taxable income at regular corporate rates. Distribution would generally be taxable to our individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of our current and accumulated earnings and profits provided certain holding period and other requirements are met. Subject to certain limitation under the Code, corporate distributions would be eligible for the dividend-received deduction. To qualify again to be taxed as a RIC in a subsequent year, we would be required to distribute to our stockholders our accumulated earnings and profits attributable to non RIC years. In addition, if we failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, we would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years. We follow ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns 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 are recorded as a tax benefit or expense in the current year. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. As of December 31, 2021, there were no uncertain tax positions and no amounts accrued for interest or penalties. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although we file both federal and state income tax returns, our major tax jurisdiction is federal. Our tax returns for each of our federal tax years since 2018 remain subject to examination by the Internal Revenue Service. Retroactive Adjustments for Common Stock Reverse Split The Company’s Board of Directors approved a one-for-three reverse stock split of the Company’s common stock on October 30, 2018, which was effective as of close of business as of November 30, 2018 (the “Reverse Stock Split”). All common share and common per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities through December 31, 2022. The Company is evaluating the potential impact that the adoption of this guidance will have on the Company’s financial statements. SEC Disclosure Update and Simplification In December 2020, the SEC adopted Rule 2a-5. The rule establishes a consistent, principles-based framework for boards of directors to use in creating their own specific processes in order to determine fair values in good faith. The effective date for compliance with Rule 2a-5 is September 8, 2022. The Company continues to evaluate the potential impact that the rule will have on the Company’s financial statements. Note 3. Related Party Agreements and Transactions Investment Advisory Agreement with AIM The Company has an investment advisory management agreement with the Investment Adviser (the “Investment Advisory Agreement”) under which AIM receives a fee from the Company, consisting of two components — a base management fee and a performance-based incentive fee. 65 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Base Management Fee Effective April 1, 2018, the base management fee is calculated initially at an annual rate of 1.50% (0.375% per quarter) of the lesser of (i) the average of the value of the Company’s gross assets, net of average of any payable for investments (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) at the end of each of the two most recently completed calendar quarters and (ii) the average monthly value (measured as of the last day of each month) of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) during the most recently completed calendar quarter; provided, however, in each case, the base management fee is calculated at an annual rate of 1.00% (0.250% per quarter) of the average of the value of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) that exceeds the product of (A) 200% and (B) the value of the Company’s net asset value at the end of the prior calendar quarter. The base management fee will be payable quarterly in arrears. The value of the Company’s gross assets shall be calculated in accordance with the Company's valuation policies. Performance-based Incentive Fee The incentive fee (the “Incentive Fee”) consists of two components that are determined 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 income and a portion is based on capital gains, each as described below: A. Incentive Fee based on Income Beginning January 1, 2019, the incentive fee on pre-incentive fee net investment income will be determined and paid quarterly in arrears by calculating the amount by which (x) the aggregate amount of the pre-incentive fee net investment income with respect of the current calendar quarter and each of the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after April 1, 2018 (the “trailing twelve quarters”) exceeds (y) the preferred return amount in respect of the trailing twelve quarters. The preferred return amount will be determined on a quarterly basis, and will be calculated by summing the amounts obtained by multiplying 1.75% by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters. The preferred return amount will be calculated after making appropriate adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for Company capital issuances and distributions during the applicable calendar quarter. The amount of the Incentive Fee on Income that will be paid to the Investment Adviser for a particular quarter will equal the excess of the incentive fee on pre-incentive fee net investment income, so calculated less the aggregate incentive fee on pre-incentive fee net investment income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters comprising the relevant trailing twelve quarters. The Company will pay the Investment Adviser an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our pre-incentive fee net investment income for the trailing twelve quarters does not exceed the preferred return amount. (2) 100% of our pre-incentive fee net investment income for the trailing twelve quarters, if any, that exceeds the preferred return amount but is less than or equal to an amount (the “catch-up amount”) determined by multiplying 2.1875% by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters. (3) for any quarter in which the Company’s pre-incentive fee net investment income for the trailing twelve quarters exceeds the catch-up amount, the incentive fee shall equal 20% of the amount of the Company’s pre-incentive fee net investment income for such trailing twelve quarters. The Incentive Fee on Income as calculated is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20% of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the relevant trailing twelve quarters less (b) the aggregate Incentive Fees on Income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters (or portion thereof) comprising the relevant trailing twelve quarters. 66 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) 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, since April 1, 2018, in respect of the trailing twelve quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company shall pay no Incentive Fee on Income to the Investment Adviser in that quarter. If, in any quarter, the Incentive Fee Cap is a positive value but is less than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap is equal to or greater than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee on Income for such quarter. “Net Capital Loss” in respect of a particular period means 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. B. Incentive Fee Based on Cumulative Net Realized Gains The Incentive Fee on Capital Gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory management agreement). This fee shall equal 20.0% of the sum of the Company’s realized capital gains on a cumulative basis, calculated as of the end of each calendar year (or upon termination of investment advisory management agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any Incentive Fees on Capital Gains previously paid to the Investment Adviser. The aggregate unrealized capital depreciation of the Company shall be 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 calculation date and (b) the accreted or amortized cost basis of such investment. For accounting purposes only, we are required under GAAP to accrue a theoretical capital gains incentive fee based upon net realized capital gains and unrealized capital gain and loss on investments held at the end of each period. The accrual of this theoretical capital gains incentive fee assumes all unrealized capital gain and loss is realized in order to reflect a theoretical capital gains incentive fee that would be payable to the Investment Adviser at each measurement date. There was no accrual for theoretical capital gains incentive fee for the three and nine months ended December 31, 2021 and 2020. It should be noted that a fee so calculated and accrued would not be payable under the Investment Advisers Act of 1940 (the “Advisers Act”) or the investment advisory management agreement, and would not be paid based upon such computation of capital gains incentive fees in subsequent periods. Amounts actually paid to the Investment Adviser will be consistent with the Advisers Act and formula reflected in the investment advisory management agreement which specifically excludes consideration of unrealized capital gain. For the three and nine months ended December 31, 2021, the Company recognized $9,232 and $27,203 respectively, of management fees, and $5,367 and $10,638, respectively, of incentive fees before impact of waived fees. For the three and nine months ended December 31, 2020, the Company recognized $8,957 and $27,743 respectively, of management fees, and $0 and $0, respectively, of incentive fees before impact of waived fees. For the three and nine months ended December 31, 2021 and 2020, no management fees were waived (as not applicable) and no incentive fees were waived. As of December 31, 2021 and March 31, 2021, management and performance-based incentive fees payable were $14,568 and $8,666, respectively. 67 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Fee Offset On January 16, 2019, the Company and AIM entered into a fee offset agreement in connection with revenue realized by AIM and its affiliates for the management of certain aircraft assets. The Company will receive an offsetting credit against total incentive fees otherwise due to AIM under the investment advisory management agreement. The amount offset will initially be 20% of the management fee revenue earned and incentive fee revenue realized by AIM and its affiliates in connection with managing aircraft assets on related insurance balance sheets (“New Balance Sheet Investments”), new aircraft managed account capital (“New Managed Accounts”) and new dedicated aircraft funds (“New Aircraft Funds”). Once the aggregate capital raised by the New Aircraft Funds or New Managed Accounts and capital invested by the New Balance Sheet Investments exceeds $3 billion cumulatively, the fee offset will step down to 10% of the amount of incremental management fee revenue earned and incentive fee revenue realized by AIM and its affiliates. The fee offset will be in place for seven years, however the incentive fees realized by AIM and its affiliates after this seven-year period from applicable investments that were raised or made within the seven-year period will also be used to offset incentive fees payable to AIM by the Company. The offset will be limited to the amount of incentive fee payable by the Company to AIM and any unapplied fee offset which exceeds the incentive fees payable in a given quarter will carry forward to be credited against the incentive fees payable by the Company in subsequent quarters. For the three and nine months ended December 31, 2021, the performance-based incentive fee offset was $31 & $178. For three and nine months ended December 31, 2020, there was no performance-based incentive fee offset. Administration Agreement with AIA The Company has also entered into an administration agreement with the Administrator (the “Administration Agreement”) under which AIA provides administrative services for the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by the Administrator and requested to be reimbursed by the Administrator in performing its obligations under the Administration Agreement. The expenses include rent and the Company’s allocable portion of compensation and other related expenses for its Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs. For the three and nine months ended December 31, 2021, the Company recognized administrative services expense under the Administration Agreement of $1,441 and $4,426, respectively. For the three and nine months ended December 31, 2020, the Company recognized administrative services expense under the Administration Agreement of $1,201 and $3,590, respectively. There was no payable to AIA and its affiliates for expenses paid on our behalf as of December 31, 2021 and March 31, 2021. Administrative Service Expense Reimbursement Merx Aviation Finance, LLC (“Merx”), a wholly-owned portfolio company of the Company, has entered into an administration agreement with the Administrator (the “Merx Administration Agreement”) under which AIA provides administrative services to Merx and several Merx managed entities. For the three and nine months ended December 31, 2021, the Company recognized administrative service expense reimbursements of $76 and $226, respectively, under the Merx Administration Agreement. For the three and nine months ended December 31, 2020, the Company recognized administrative service expense reimbursements of $76 and $226, respectively. Debt Expense Reimbursements The Company has also entered into debt expense reimbursement agreements with Merx and several other portfolio companies which will reimburse the Company for reasonable out-of-pocket expenses incurred, including any interest, fees or other amounts incurred by the Company in connection with letters of credit issued on their behalf. For the three and nine months ended December 31, 2021, the Company recognized debt expense reimbursements of $1 and $3, respectively, under the debt expense reimbursement agreements. For the three and nine months ended December 31, 2020, the Company recognized debt expense reimbursements of $1 and $60, respectively, under the debt expense reimbursement agreements. 68 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Co-Investment Activity We may co-invest on a concurrent basis with affiliates of ours, subject to compliance with applicable regulations and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order we received from the SEC permitting us to do so. On March 29, 2016, we received an exemptive order from the SEC, which was amended on December 29,2021 (the “Order”) permitting us greater flexibility to negotiate the terms of co-investment transactions with certain of our affiliates, including investment funds managed by AIM or its affiliates and Apollo proprietary accounts, subject to the conditions included therein. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order. As of December 31, 2021, the Company’s co-investment holdings were 69% of the portfolio or $1,796,324, measured at fair value. On a cost basis, 64% of the portfolio or $1,791,943 were co-investments. As of March 31, 2021, the Company’s co-investment holdings were 63% of the portfolio or $1,542,275, measured at fair value. On a cost basis, 57% of the portfolio or $1,545,567 were co-investments. Merx Aviation Effective January 16, 2019, Mr. Gary Rothschild, President and Chief Executive Officer of Merx, became an employee of Apollo Management Holdings, L.P. ("AMH"), an affiliate of the Company’s investment adviser. Mr. Rothschild also retained his role as the President and Chief Executive Officer of Merx. Effective January 16, 2019, Merx entered into a series of service arrangements with affiliates of AGM. Under a servicing agreement with Apollo Capital Management, L.P. (“ACM”), Merx serves as technical servicer to aircraft clients of ACM and its affiliates. Under a research support agreement with ACM, Merx employees assist ACM with technical due-diligence and underwriting of new aircraft-related investment opportunities. Under a technical support agreement, Merx and AMH share the services of Mr. Gary Rothschild, who is the President and Chief Executive Officer of Merx and an employee of AMH. On April 1, 2020, $105,300 of the Merx first lien secured revolver held by the Company was converted into common equity. In addition, the interest rate on the revolver was lowered from 12% to 10%. On July 1, 2021, $84,500 of the Merx common equity held by the Company was converted into the Merx first lien secured revolver. The balance of the Merx revolver as of December 31, 2021 was $275,000. Note 4. Earnings Per Share The following table sets forth the computation of earnings (loss) per share (“EPS”), pursuant to ASC 260-10, for the three and nine months ended December 31, 2021 and 2020: Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Basic Earnings (Loss) Per Share Net increase (decrease) in net assets resulting from operations $ 20,541 $ 33,166 $ 78,125 $ 69,449 Weighted average shares outstanding 64,159,546 65,259,176 64,795,710 65,259,176 Basic earnings (loss) per share $ 0.32 $ 0.51 $ 1.21 $ 1.06 69 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Note 5. Investments Fair Value Measurement and Disclosures The following table shows the composition of our investment as of December 31, 2021, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820: Fair Value Hierarchy Cost Fair Value Level 1 Level 2 Level 3 First Lien Secured Debt $ 2,270,087 $ 2,267,313 $ — $ — $ 2,267,313 Second Lien Secured Debt 125,930 105,014 — — 105,014 Unsecured Debt 22,000 22,000 — — 22,000 Structured Products and Other 16,987 10,821 — — 10,821 Preferred Equity 41,152 28,957 — — 28,957 Common Equity/Interests 316,059 160,366 1,461 390 158,515 Warrants 135 372 — — 372 Total Investments before Cash Equivalents $ 2,792,350 $ 2,594,843 $ 1,461 $ 390 $ 2,592,992 Money Market Fund $ 22,367 $ 22,367 $ 22,367 $ — $ — Total Cash Equivalents $ 22,367 $ 22,367 $ 22,367 $ — $ — Total Investments after Cash Equivalents $ 2,814,717 $ 2,617,210 $ 23,828 $ 390 $ 2,592,992 The following table shows the composition of our investments as of March 31, 2021, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820: Fair Value Hierarchy Cost Fair Value Level 1 Level 2 Level 3 First Lien Secured Debt $ 1,995,074 $ 1,907,807 $ — $ — $ 1,907,807 Second Lien Secured Debt 279,437 237,609 — — 237,609 Unsecured Debt 22,000 22,000 — — 22,000 Structured Products and Other 16,812 11,289 — — 11,289 Preferred Equity 40,703 22,537 — — 22,537 Common Equity/Interests 362,162 246,314 — 484 245,830 Warrants 211 1,595 — — 1,595 Total Investments before Cash Equivalents $ 2,716,399 $ 2,449,151 $ — $ 484 $ 2,448,667 Money Market Fund $ 50,180 $ 50,180 $ 50,180 $ — $ — Total Cash Equivalents $ 50,180 $ 50,180 $ 50,180 $ — $ — Total Investments after Cash Equivalents $ 2,766,579 $ 2,499,331 $ 50,180 $ 484 $ 2,448,667 70 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The following table shows changes in the fair value of our Level 3 investments during the three months ended December 31, 2021: First Lien Secured Debt (2) Second Lien Secured Debt (2) Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Fair value as of September 30, 2021 $ 2,236,381 $ 145,151 $ 22,000 $ 10,794 $ 22,903 $ 172,911 $ 1,757 $ 2,611,897 Net realized gains (losses) 504 (1,086) — — — — — (582) Net change in unrealized gains (losses) 347 3,019 — (124) 6,054 (10,448) (1,309) (2,461) Net amortization on investments 5,459 429 — — — — — 5,888 Purchases, including capitalized PIK (3) 343,329 1,956 — 151 — 2,533 — 347,969 Sales (3) (318,707) (44,455) — — — (6,481) (76) (369,719) Transfers out of Level 3 (1) — — — — — — — — Transfers into Level 3 (1) — — — — — — — — Fair value as of December 31, 2021 $ 2,267,313 $ 105,014 $ 22,000 $ 10,821 $ 28,957 $ 158,515 $ 372 $ 2,592,992 Net change in unrealized gains (losses) on Level 3 investments still held as of December 31, 2021 $ 3,129 $ (38) $ — $ (124) $ 6,054 $ (10,448) $ 268 $ (1,159) The following table shows changes in the fair value of our Level 3 investments during the nine months ended December 31, 2021: First Lien Secured Debt (2) Second Lien Secured Debt (2) Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Fair value as of March 31, 2021 $ 1,907,807 $ 237,609 $ 22,000 $ 11,289 $ 22,537 $ 245,830 $ 1,595 $ 2,448,667 Net realized gains (losses) (41,940) (20,891) — — — — — (62,831) Net change in unrealized gains (losses) 84,823 20,911 — (644) 5,972 (41,133) (1,147) 68,782 Net amortization on investments 12,408 2,074 — — — — — 14,482 Purchases, including capitalized PIK (3) 1,012,657 2,440 — 176 448 48,845 — 1,064,566 Sales (3) (697,724) (137,129) — — — (95,027) (76) (929,956) Transfers out of Level 3 (1) (10,718) — — — — — — (10,718) Transfers into Level 3 (1) — — — — — — — — Fair value as of December 31, 2021 $ 2,267,313 $ 105,014 $ 22,000 $ 10,821 $ 28,957 $ 158,515 $ 372 $ 2,592,992 Net change in unrealized gains (losses) on Level 3 investments still held as of December 31, 2021 $ 6,334 $ (519) $ — $ (636) $ 5,972 $ (6,749) $ 269 $ 4,671 ____________________ (1) Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2) Includes unfunded commitments measured at fair value of $(1,986). (3) Includes reorganizations and restructuring of investments. 71 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The following table shows changes in the fair value of our Level 3 investments during the three months ended December 31, 2020: First Lien Secured Debt (2) Second Lien Secured Debt (2) Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Fair value as of September 30, 2020 $ 1,998,765 $ 294,549 $ 22,000 $ 9,265 $ 8,023 $ 253,241 $ 265 $ 2,586,108 Net realized gains (losses) (7,615) (1,883) — — (1,505) 4,176 — (6,827) Net change in unrealized gains (losses) 20,101 (3,164) — 759 (2,091) 3,907 931 20,443 Net amortization on investments 2,538 286 — — — — — 2,824 Purchases, including capitalized PIK (3) 230,093 484 — 47 7,904 219 76 238,823 Sales (3) (315,467) (34,756) — — (78) (14,696) — (364,997) Transfers out of Level 3 (1) — — — — — — — — Transfers into Level 3 (1) — — — — — — — — Fair value as of December 31, 2020 $ 1,928,415 $ 255,516 $ 22,000 $ 10,071 $ 12,253 $ 246,847 $ 1,272 $ 2,476,374 Net change in unrealized gains (losses) on Level 3 investments still held as of December 31, 2020 $ 5,578 $ (6,214) $ — $ 759 $ (2,841) $ 2,477 $ 978 $ 737 The following table shows changes in the fair value of our Level 3 investments during the nine months ended December 31, 2020: First Lien Secured Debt (2) Second Lien Secured Debt (2) Unsecured Debt Structured Products and Other Preferred Equity Common Equity/Interests Warrants Total Fair value as of March 31, 2020 $ 2,265,800 $ 343,420 $ — $ 9,748 $ 7,968 $ 157,943 $ 136 $ 2,785,015 Net realized gains (losses) (18,283) (2,906) — — (1,519) 4,239 (48) (18,517) Net change in unrealized gains (losses) 60,020 (2,678) — 250 (1,892) (36,196) 1,108 20,612 Net amortization on investments 7,908 772 — — — — — 8,680 Purchases, including capitalized PIK (3) 462,879 1,334 22,000 73 7,916 138,128 76 632,406 Sales (3) (849,909) (84,426) — — (220) (17,267) — (951,822) Transfers out of Level 3 (1) — — — — — — — — Transfers into Level 3 (1) — — — — — — — — Fair value as of December 31, 2020 $ 1,928,415 $ 255,516 $ 22,000 $ 10,071 $ 12,253 $ 246,847 $ 1,272 $ 2,476,374 Net change in unrealized gains (losses) on Level 3 investments still held as of December 31, 2020 $ 13,413 $ (8,062) $ — $ 250 $ (1,892) $ (37,460) $ 1,108 $ (32,643) ____________________ (1) Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown. (2) Includes unfunded commitments measured at fair value of $(8,089). (3) Includes reorganizations and restructuring of investments. 72 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of December 31, 2021 and March 31, 2021. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values. The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2021 were as follows: Quantitative Information about Level 3 Fair Value Measurements Asset Category Fair Value Valuation Techniques/Methodologies Unobservable Input Range Weighted Average (1) First Lien Secured Debt $ 275,000 Discounted Cash Flow Discount Rate 12.0% 12.0% 12.0% Residual Value Residual Value N/A N/A N/A 108,030 Recent Transaction Recent Transaction N/A N/A N/A 25,470 Recovery Analysis Commodity Price $66.50 $74.75 $67.18 398 Recovery Analysis Recoverable Amount N/A N/A N/A 4,259 Recovery Analysis Sale Proceeds N/A N/A N/A 1,854,156 Yield Analysis Discount Rate 4.6% 52.0% 8.4% Second Lien Secured Debt 5,657 Market Comparable Technique Comparable Multiple 12.3x 12.3x 12.3x 6,357 Recovery Analysis Recoverable Amount N/A N/A N/A 93,000 Yield Analysis Discount Rate 6.5% 14.1% 11.6% Unsecured Debt 22,000 Recovery Analysis Recoverable Amount N/A N/A N/A Structured Products and Other 10,821 Discounted Cash Flow Discount Rate 8.5% 8.5% 8.5% Preferred Equity 417 Discounted Cash Flow Discount Rate 9.0% 9.0% 9.0% 23,478 Market Comparable Technique Comparable Multiple 1.9x 13.8x 9.8x 4,984 Option Pricing Model Expected Volatility 76.0% 76.0% 76.0% 78 Residual Value Residual Value N/A N/A N/A — Yield Analysis Discount Rate 52.0% 52.0% 52.0% Common Equity/Interests 635 Discounted Cash Flow Discount Rate 9.0% 52.0% 9.0% 89,494 Discounted Cash Flow Discount Rate 10.2% 13.3% 11.8% Residual Value Residual Value N/A N/A N/A 13,480 Market Comparable Technique Comparable Multiple 7.0x 15.5x 10.6x 45,481 Recent Transaction Recent Transaction N/A N/A N/A 2,839 Recovery Analysis Commodity Price $66.50 $74.75 $67.18 — Recovery Analysis Recoverable Amount N/A N/A N/A 5,776 Recovery Analysis Sale Proceeds N/A N/A N/A 180 Market Comparable Technique Comparable Multiple 9.6x 9.6x 9.6x Option Pricing Model Expected Volatility 35.0% 35.0% 35.0% 630 Sale Proceeds Sale Proceeds N/A N/A N/A Warrants 372 Option Pricing Model Expected Volatility 60.0% 60.0% 60.0% Total Level 3 Investments $ 2,592,992 ___________________ (1) The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves. 73 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The unobservable inputs used in the fair value measurement of our Level 3 investments as of March 31, 2021 were as follows: Quantitative Information about Level 3 Fair Value Measurements Asset Category Fair Value Valuation Techniques/Methodologies Unobservable Input Range Weighted Average (1) First Lien Secured Debt $ 190,500 Discounted Cash Flow Discount Rate 7.5% 12.0% 12.0% Residual Value Residual Value N/A N/A N/A 31,438 Recovery Analysis Recoverable Amount N/A N/A N/A Market Comparable Technique Comparable Multiple 0.7x 1.4x 1.1x 44,998 Recent Transaction Recent Transaction N/A N/A N/A 35,369 Recovery Analysis Commodity Price 54.00 60.16 59.86 398 Recovery Analysis Recoverable Amount N/A N/A N/A 8,376 Recovery Analysis Sale Proceeds N/A N/A N/A 1,596,728 Yield Analysis Discount Rate 4.1% 32.3% 8.5% Second Lien Secured Debt 12,795 Market Comparable Technique Comparable Multiple 6.3x 6.3x 6.3x 8,111 Recovery Analysis Commodity Price 57.00 62.33 61.13 10,536 Recovery Analysis Sale Proceeds N/A N/A N/A 206,167 Yield Analysis Discount Rate 9.3% 14.9% 11.5% Unsecured Debt 22,000 Discounted Cash Flow Discount Rate 16.0% 16.0% 16.0% Residual Value Residual Value N/A N/A N/A Structured Products and Other 11,289 Discounted Cash Flow Discount Rate 9.0% 9.0% 9.0% Preferred Equity 498 Discounted Cash Flow Discount Rate 9.0% 9.0% 9.0% 16,863 Market Comparable Technique Comparable Multiple 0.7x 13.2x 8.7x 5,176 Option Pricing Model Expected Volatility 101.0% 101.0% 101.0% — Yield Analysis Discount Rate 32.3% 32.3% 0.0% Common Equity/Interests 2,053 Discounted Cash Flow Discount Rate 9.0% 32.3% 19.3% 207,617 Discounted Cash Flow Discount Rate 7.5% 16.0% 10.2% Residual Value Residual Value N/A N/A N/A 7,977 Market Comparable Technique Comparable Multiple 0.7x 16.5x 9.9x 215 Option Pricing Model Expected Volatility 35.0% 35.0% 35.0% 374 Recent Transaction Recent Transaction N/A N/A N/A 2,170 Recovery Analysis Commodity Price 54.00 62.33 60.08 25,424 Recovery Analysis Implied Illiquidity Discount 18.5% 18.5% 18.5% Recovery Analysis Transaction Price N/A N/A N/A Warrants 1,595 Option Pricing Model Expected Volatility 65.0% 90.0% 88.4% Total Level 3 Investments $ 2,448,667 ____________________ (1) The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves. 74 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity securities are primarily earnings before interest, taxes, depreciation and amortization (“EBITDA”) comparable multiples and market discount rates. The Company typically uses EBITDA comparable multiples on its equity securities to determine the fair value of investments. The Company uses market discount rates for debt securities to determine if the effective yield on a debt security is commensurate with the market yields for that type of debt security. If a debt security’s effective yield is significantly less than the market yield for a similar debt security with a similar credit profile, the resulting fair value of the debt security may be lower. For certain investments where fair value is derived based on a recovery analysis, the Company uses underlying commodity prices from third party market pricing services to determine the fair value and/or recoverable amount, which represents the proceeds expected to be collected through asset sales or liquidation. Further, for certain investments, the Company also considered the probability of future events which are not in management’s control. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. The significant unobservable inputs used in the fair value measurement of the structured products include the discount rate applied in the valuation models in addition to default and recovery rates applied to projected cash flows in the valuation models. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment; conversely decreases in the discount rate can significantly increase the fair value of an investment. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. For certain investments such as warrants, the Company may use an option pricing technique, of which the applicable method is the Black-Scholes Option Pricing Method (“BSM”), to perform valuations. The BSM is a model of price variation over time of financial instruments, such as equity, that is used to determine the price of call or put options. Various inputs are required but the primary unobservable input into the BSM model is the underlying asset volatility. Investment Transactions For the three and nine months ended December 31, 2021, purchases of investments on a trade date basis were $335,478 and $920,786, respectively. For the three and nine months ended December 31, 2020, purchases of investments on a trade date basis were $157,176 and $400,930, respectively. For the three and nine months ended December 31, 2021, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $358,165 and $800,553, respectively. For the three and nine months ended December 31, 2020, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $287,284 and $729,112, respectively. PIK Income The Company holds loans and other investments, including certain preferred equity investments, that have contractual PIK income. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. During the three and nine months ended December 31, 2021, PIK income earned was $982 and $3,451, respectively. During the three and nine months ended December 31, 2020, PIK income earned was $1,627 and $4,753, respectively. The following table shows the change in capitalized PIK balance for the three and nine months ended December 31, 2021 and 2020: Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 PIK balance at beginning of period $ 37,637 $ 40,440 $ 41,947 $ 37,481 PIK income capitalized 988 1,867 3,715 4,901 Adjustments due to investments exited or written off — — (7,037) — PIK income received in cash — — — (75) PIK balance at end of period $ 38,625 $ 42,307 $ 38,625 $ 42,307 75 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Dividend Income on CLOs The Company holds structured products and other investments. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. During the three and nine months ended December 31, 2021, dividend income from structured products was $310 and $959, respectively. During the three and nine months ended December 31, 2020, dividend income from structured products was $323 and $1,000, respectively. Investments on Non-Accrual Status As of December 31, 2021, 1.4% of total investments at amortized cost, or 0.5% of total investments at fair value, were on non-accrual status. As of March 31, 2021, 5.7% of total investments at amortized cost, or 1.4% of total investments at fair value, were on non-accrual status. Unconsolidated Significant Subsidiary The following unconsolidated subsidiary is considered a significant subsidiary under SEC Regulation S-X Rule 10-01(b)(1) as of December 31, 2021. Accordingly, summarized, unaudited, comparative financial information is presented below for the unconsolidated significant subsidiary. Merx Aviation Finance, LLC Merx Aviation Finance, LLC and its subsidiaries are principally engaged in acquiring and leasing commercial aircraft to airlines. Its focus is on current generation aircraft, held either domestically or internationally. Merx may acquire fleets of aircraft primarily through securitized, non-recourse debt or individual aircraft. Merx may outsource its aircraft servicing requirements to third parties that have the global staff and expertise necessary to complete such tasks. The following table shows unaudited summarized financial information for Merx Aviation: Nine Months Ended December 31, 2021 2020 Net revenue $ 172,541 $ 166,578 Net operating income 58,443 2,657 Earnings (loss) before taxes (8,042) (59,084) Net profit (loss) (6,487) (57,993) Net profit (loss) after taxes attributable to non-controlling interests (3,730) (991) Net profit (loss) after taxes attributable to Merx Aviation (2,757) (57,002) 76 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Note 6. Debt and Foreign Currency Transactions and Translations On April 4, 2018, the Company’s Board of Directors, including a “required majority” (as defined in Section 57(o) of the Investment Company Act of 1940, as amended) of the Board, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the Investment Company Act of 1940. As a result, effective on April 4, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150% (i.e., the revised regulatory leverage limitation permits BDCs to double the amount of borrowings, such that we would be able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us). The Company’s outstanding debt obligations as of December 31, 2021 were as follows: Date Issued/Amended Total Aggregate Principal Amount Committed Principal Amount Outstanding Fair Value Final Maturity Date Senior Secured Facility 12/22/2020 $ 1,810,000 ** $ 1,117,484 * $ 1,117,484 (1) 12/22/2025 2025 Notes 3/3/2015 350,000 350,000 361,596 (2) 3/3/2025 2026 Notes 7/16/2021 125,000 125,000 124,274 (2) 7/16/2026 Total Debt Obligations $ 2,285,000 $ 1,592,484 $ 1,603,354 Deferred Financing Costs and Debt Discount $ (5,108) Total Debt Obligations, net of Deferred Financing Cost and Debt Discount $ 1,587,376 ____________________ * Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note to the financial statements. ** Lender commitments will remain $1,810,000 through November 19, 2022 and will then decrease to $1,705,000 thereafter (1) The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of December 31, 2021. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt. (2) The fair value of these debt obligations would be categorized as Level 2 under ASC 820 as of December 31, 2021. The valuation is based on broker quoted prices. The Company’s outstanding debt obligations as of March 31, 2021 were as follows: Date Issued/Amended Total Aggregate Principal Amount Committed Principal Amount Outstanding Fair Value Final Maturity Date Senior Secured Facility 12/22/2020 $ 1,810,000 ** $ 1,119,186 * $ 1,139,765 (1) 12/22/2025 2025 Notes 3/3/2015 350,000 350,000 357,763 (2) 3/3/2025 Total Debt Obligations $ 2,160,000 $ 1,469,186 $ 1,497,528 Deferred Financing Costs and Debt Discount $ (3,815) Total Debt Obligations, net of Deferred Financing Cost and Debt Discount $ 1,465,371 ____________________ * Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note to the financial statements. ** Lender commitments will remain $1,810,000 through November 19, 2022 and will then decrease to $1,705,000 thereafter (1) The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of March 31, 2021. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt. (2) The fair value of these debt obligations would be categorized as Level 2 under ASC 820 as of March 31, 2021. The valuation is based on broker quoted prices. 77 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Senior Secured Facility On December 22, 2020, the Company amended and restated its senior secured, multi-currency, revolving credit facility (the “Senior Secured Facility”), previously amended and restated as of November 19, 2018. Lender commitments in the amended and restated agreement will remain $1,810,000 through November 19, 2022 and will decrease to $1,705,000 thereafter. The amended and restated agreement extended the final maturity date through December 22, 2025, and includes an accordion provision which allows the Company to increase the total commitments under the existing revolving facility up to an aggregate principal amount of $2,715,000 from new or existing lenders on the same terms and conditions as the existing commitments. The Senior Secured Facility is secured by substantially all of the assets in the Company’s portfolio, including cash and cash equivalents. Commencing December 22, 2024, the Company is required to repay, in twelve consecutive monthly installments of equal size, the outstanding amount under the Senior Secured Facility as of December 22, 2024. In addition, the stated interest rate on the facility remains as a formula-based calculation based on a minimum borrowing base, resulting in a stated interest rate, depending on the type of borrowing, of (a) either LIBOR plus 1.75% per annum or LIBOR plus 2.00% per annum, or (b) either Alternate Base Rate plus 0.75% per annum or Alternate Base Rate plus 1% per annum. As of December 31, 2021, the stated interest rate on the facility was LIBOR plus 2.00%. The Company is required to pay a commitment fee of 0.375% per annum on any unused portion of the Senior Secured Facility and participation fees and fronting fees of up to 2.25% per annum on the letters of credit issued. The Senior Secured Facility contains affirmative and restrictive covenants, events of default and other customary provisions for similar debt facilities, including: (a) periodic financial reporting requirements, (b) maintaining minimum stockholders’ equity of the greater of (i) 30% of the total assets of the Company and its consolidated subsidiaries as of the last day of any fiscal quarter and (ii) the sum of (A) $705,000 plus (B) 25% of the net proceeds from the sale of equity interests in the Company after the closing date of the Senior Secured Facility, (c) maintaining a ratio of total assets, less total liabilities (other than indebtedness) to total indebtedness, in each case of the Company and its consolidated subsidiaries, of not less than 1.5:1.0, (d) limitations on the incurrence of additional indebtedness, including a requirement to meet a certain minimum liquidity threshold before the Company can incur such additional debt, (e) limitations on liens, (f) limitations on investments (other than in the ordinary course of the Company’s business), (g) limitations on mergers and disposition of assets (other than in the normal course of the Company’s business activities), (h) limitations on the creation or existence of agreements that permit liens on properties of the Company’s consolidated subsidiaries and (i) limitations on the repurchase or redemption of certain unsecured debt and debt securities. In addition to the asset coverage ratio described in clause (c) of the preceding sentence, borrowings under the Senior Secured Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. The advance rate applicable to any specific type of asset in the Company’s portfolio will also depend on the relevant asset coverage ratio as of the date of determination. Borrowings under the Senior Secured Facility will also continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended. The Senior Secured Facility also provides for the issuance of letters of credit up to an aggregate amount of $150,000. As of December 31, 2021 and March 31, 2021, the Company had $177 and $177, respectively, in standby letters of credit issued through the Senior Secured Facility. The amount available for borrowing under the Senior Secured Facility is reduced by any standby letters of credit issued through the Senior Secured Facility. Under GAAP, these letters of credit are considered commitments because no funding has been made and as such are not considered a liability. These letters of credit are not senior securities because they are not in the form of a typical financial guarantee and the portfolio companies are obligated to refund any drawn amounts. The available remaining capacity under the Senior Secured Facility was $692,339 and $690,637 as of December 31, 2021 and March 31, 2021, respectively. Terms used in this disclosure have the meanings set forth in the Senior Secured Facility agreement. 78 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Senior Unsecured Notes 2025 Notes On March 3, 2015, the Company issued $350,000 aggregate principal amount of senior unsecured notes for net proceeds of $343,650 (the “2025 Notes”). The 2025 Notes will mature on March 3, 2025. Interest on the 2025 Notes is due semi-annually on March 3 and September 3, at an annual rate of 5.25%, commencing on September 3, 2015. The 2025 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. 2026 Notes On July 16, 2021, the Company issued $125,000 aggregate principal amount of general unsecured notes for net proceeds of $122,965 (the “2026 Notes”). The 2026 Notes will mature on July 16, 2026. Interest on the 2026 Notes is due semi-annually on January 16 and July 16, at an annual rate of 4.50%, commencing on January 16, 2022. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The following table summarizes the average and maximum debt outstanding, and the interest and debt issuance cost for the three and nine months ended December 31, 2021 and 2020: Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Average debt outstanding $ 1,580,491 $ 1,533,238 $ 1,526,685 $ 1,663,241 Maximum amount of debt outstanding 1,599,384 1,602,090 1,608,285 1,818,920 Weighted average annualized interest cost (1) 3.19% 3.05% 3.16% 3.04% Annualized amortized debt issuance cost 0.36% 0.37% 0.38% 0.34% Total annualized interest cost 3.55% 3.42% 3.54% 3.38% ____________________ (1) Includes the stated interest expense and commitment fees on the unused portion of the Senior Secured Facility. Commitment fees for the three and nine months ended December 31, 2021 were $670 and $2,019 respectively. Commitment fees for the three and nine months ended December 31, 2020 were $598 and $1,404, respectively. Foreign Currency Transactions and Translations The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of December 31, 2021: Original Principal Amount (Local) Original Principal Amount (USD) Principal Amount Outstanding Unrealized Gain/(Loss) Reset Date British Pound £ 68,000 84,420 92,018 (7,598) 1/31/2022 Australian Dollar A$ 6,200 4,543 4,503 40 1/31/2022 $ 88,963 $ 96,521 $ (7,558) 79 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of March 31, 2021: Original Principal Amount (Local) Original Principal Amount (USD) Principal Amount Outstanding Unrealized Gain/(Loss) Reset Date Euro € 15,900 17,392 18,687 (1,295) 4/30/2021 British Pound £ 77,000 95,593 106,237 (10,644) 4/30/2021 Australian Dollar A$ 6,300 4,617 4,799 (182) 4/30/2021 $ 117,602 $ 129,723 $ (12,121) As of December 31, 2021 and March 31, 2021, the Company was in compliance with all debt covenants for all outstanding debt obligations. Note 7. Stockholders’ Equity There were no equity offerings of common stock during the three and nine months ended December 31, 2021 and March 31, 2021. The Company adopted the following plans, approved by the Board of Directors, for the purpose of repurchasing its common stock in accordance with applicable rules specified in the Securities Exchange Act of 1934 (the “1934 Act”) (the “Repurchase Plans”): Date of Agreement/Amendment Maximum Cost of Shares That May Be Repurchased Cost of Shares Repurchased Remaining Cost of Shares That May Be Repurchased August 5, 2015 $ 50,000 $ 50,000 $ — December 14, 2015 50,000 50,000 — September 14, 2016 50,000 50,000 — October 30, 2018 50,000 50,000 — February 6, 2019 50,000 43,402 6,598 Total as of December 31, 2021 $ 250,000 $ 243,402 $ 6,598 The Repurchase Plans were designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company will have the authority under the terms and limitations specified in an agreement with the Company to repurchase shares on the Company’s behalf in accordance with the terms of the Repurchase Plans. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the Repurchase Plans. Pursuant to the Repurchase Plans, the Company may from time to time repurchase a portion of its shares of common stock and the Company is hereby notifying stockholders of its intention as required by applicable securities laws. 80 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”): Effective Date Termination Date Amount Allocated to 10b5-1 Repurchase Plans September 15, 2015 November 5, 2015 $ 5,000 January 1, 2016 February 5, 2016 10,000 April 1, 2016 May 19, 2016 5,000 July 1, 2016 August 5, 2016 15,000 September 30, 2016 November 8, 2016 20,000 January 4, 2017 February 6, 2017 10,000 March 31, 2017 May 19, 2017 10,000 June 30, 2017 August 7, 2017 10,000 October 2, 2017 November 6, 2017 10,000 January 3, 2018 February 8, 2018 10,000 June 18, 2018 August 9, 2018 10,000 September 17, 2018 October 31, 2018 10,000 December 12, 2018 February 7, 2019 10,000 February 25, 2019 May 17, 2019 25,000 March 18, 2019 May 17, 2019 10,000 June 4, 2019 August 7, 2019 25,000 June 17, 2019 August 7, 2019 20,000 September 16, 2019 November 6, 2019 20,000 December 6, 2019 February 5, 2020 25,000 December 16, 2019 February 5, 2020 15,000 March 12, 2020 March 19, 2020 20,000 March 30, 2021 May 21, 2021 10,000 June 16, 2021 November 5, 2021 10,000 December 16, 2021 February 4, 2022 5,000 During the nine months ended December 31, 2021, the Company repurchased 1,551,331 shares at a weighted average price per share of $13.10, inclusive of commissions, for a total cost of $20,330. This represents a discount of approximately 18.15% of the average net asset value per share for the nine months ended December 31, 2021. During the nine months ended December 31, 2020, the Company did not repurchase shares. Since the inception of the Repurchase Plans through December 31, 2021, the Company repurchased 15,205,909 shares at a weighted average price per share of $16.01, inclusive of commissions, for a total cost of $243,402. Including fractional shares, the company has repurchased 15,205,939 shares at a weighted average price per share of $16.01, inclusive of commissions for a total cost of $243,402. On July 22, 2019, the Board of Directors approved Articles of Amendment which amended the Company’s charter to reduce the amount of authorized capital stock from 400,000,000 shares, par value $0.001 per share, to 130,000,000 shares, par value $0.001 per share. The Articles of Amendment were accepted for record by the Department of Assessments and Taxation of the State of Maryland on July 22, 2019 and immediately became effective. 81 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Note 8. Commitments and Contingencies The Company has various commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of December 31, 2021 and March 31, 2021, the Company had the following unfunded commitments to its portfolio companies: December 31, 2021 March 31, 2021 Unfunded revolver obligations and bridge loan commitments (1) $ 236,095 $ 261,854 Standby letters of credit issued and outstanding (2) 3,500 2,787 Unfunded delayed draw loan commitments (3) 304,796 172,249 Total Unfunded Commitments (4) $ 544,391 $ 436,890 __________________ (1) The unfunded revolver obligations may or may not be funded to the borrowing party in the future. The amounts relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers as of December 31, 2021 and March 31, 2021, subject to the terms of each loan’s respective credit agreements which includes borrowing covenants that need to be met prior to funding. As of December 31, 2021 and March 31, 2021, the bridge loan commitments included in the balances were $0 and $0, respectively. (2) For all these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. None of the letters of credit issued and outstanding are recorded as a liability on the Company’s Statements of Assets and Liabilities as such letters of credit are considered in the valuation of the investments in the portfolio company. (3) The Company’s commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions which can include covenants to maintain specified leverage levels and other related borrowing base covenants. For commitments to fund delayed draw loans with performance thresholds, borrowers are required to meet certain performance requirements before the Company is obligated to fulfill these commitments. (4) The Company also had an unfunded revolver commitment to its fully controlled affiliate Merx Aviation Finance, LLC of $25,000 and $109,500 as of December 31, 2021 and March 31, 2021, respectively. Given the Company’s controlling interest, the timing and the amount of the funding has not been determined. 82 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) Note 9. Financial Highlights The following is a schedule of financial highlights for the nine months ended December 31, 2021 and 2020. Nine Months Ended December 31, 2021 Nine Months Ended December 31, 2020 (Unaudited) (Unaudited) Per Share Data* Net asset value at beginning of period $ 15.88 $ 15.70 Net investment income (1) 1.07 1.29 Net realized and change in unrealized gains (losses) (1) 0.14 (0.23) Net increase in net assets resulting from operations 1.21 1.06 Distribution of net investment income (2) (1.08) (1.17) Distribution of return of capital (2) — — Accretion due to share repurchases 0.07 — Net asset value at end of period $ 16.08 $ 15.59 Per share market value at end of period $ 12.79 $ 10.63 Total return (3) 0.95 % 77.63 % Shares outstanding at end of period 63,707,845 65,259,176 Weighted average shares outstanding 64,795,710 65,259,176 Ratio/Supplemental Data Net assets at end of period (in millions) $ 1,024.3 $ 1,017.4 Annualized ratio of operating expenses to average net assets (4)(5) 6.23 % 5.13 % Annualized ratio of interest and other debt expenses to average net assets (5) 5.22 % 5.56 % Annualized ratio of total expenses to average net assets (4)(5) 11.45 % 10.69 % Annualized ratio of net investment income to average net assets (5) 8.85 % 11.07 % Average debt outstanding (in millions) $ 1,526.7 $ 1,663.2 Average debt per share $ 23.56 $ 25.49 Annualized portfolio turnover rate (5) 41.88 % 20.23 % Asset coverage per unit (6) $ 1,643 $ 1,671 ____________________ * Totals may not foot due to rounding. (1) Financial highlights are based on the weighted average number of shares outstanding for the period presented. (2) The tax character of distributions are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. Although the tax character of distributions paid to stockholders through December 31, 2021 may include return of capital, the exact amount cannot be determined at this point. Per share amounts are based on actual rate per share. (3) Total return is based on the change in market price per share during the respective periods. Total return also takes into account distributions, if any, reinvested in accordance with the Company’s dividend reinvestment plan. Total return does not reflect sales load. 83 Table of Contents APOLLO INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) (In thousands, except share and per share data) (4) The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets are shown inclusive of all voluntary management and incentive fee waivers (See Note 3 to the financial statements). For the nine months ended December 31, 2021, the annualized ratio of operating expenses to average net assets and the annualized ratio of total expenses to average net assets would be 6.28% and 11.50%, respectively, without the voluntary fee waivers. For the nine months ended December 31, 2020 the ratio of operating expenses to average net assets and the ratio of total expenses to average net assets would be 5.16% and 10.73%, respectively, without the voluntary fee waivers. (5) Annualized for the nine months ended December 31, 2021 and December 31, 2020. (6) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the asset coverage per unit. Note 10. Subsequent Events Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the financial statements other than those disclosed below. During the period from January 1, 2022 through February 2, 2022, the Company repurchased 60,605 shares at a weighted average price per share of $12.70, inclusive of commissions, for a total cost of $770. On February 3, 2022, the Company’s Board of Directors approved a new stock repurchase plan (the “Repurchase Plan”) to acquire up to $25.0 million of the Company’s common stock. The new Repurchase Plan is in addition to the Company's existing share repurchase authorization, of which approximately $5,829 of repurchase capacity remains. Accordingly, the Company now has approximately $30,829 available for stock repurchases under its repurchase program. On February 3, 2022, the Company’s Board of Directors (the “Board”) declared a distribution of $0.31 per share, payable on April 7, 2022 to stockholders of record as of March 21, 2022. On February 3, 2022, the Company’s Board also declared a supplemental distribution of $0.05 per share payable on April 7, 2022 to stockholders of record as of March 21, 2022. Going forward, in addition to a quarterly base distribution of $0.31 per share, the Board may declare a quarterly supplemental distribution in an amount to be determined each quarter. There can be no assurances that the Board will continue to declare a base distribution of $0.31 per share or a supplemental distribution. 84 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Apollo Investment Corporation Results of Review of Interim Financial Statements We have reviewed the accompanying statement of assets and liabilities, including the schedule of investments, of Apollo Investment Corporation (the “Company”) as of December 31, 2021, and the related statements of operations and of changes in net assets for the three-month and nine-month periods ended December 31, 2021 and 2020, and the statements of cash flows for the nine-month periods ended December 31, 2021 and 2020, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statement of assets and liabilities, including the schedule of investments, of the Company as of March 31, 2021, and the related statements of operations, of changes in net assets and of cash flows for the year then ended (not presented herein), and in our report dated May 20, 2021, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying statement of assets and liabilities, including the schedule of investments, as of March 31, 2021, is fairly stated, in all material respects, in relation to the statement of assets and liabilities, including the schedule of investments, from which it has been derived. Basis for Review Results These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ PricewaterhouseCoopers LLP New York, New York February 3, 2022 85 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this report. Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to: • our future operating results; • our business prospects and the prospects of our portfolio companies; • the impact of investments that we expect to make; • our contractual arrangements and relationships with third parties; • the dependence of our future success on the general economy and its impact on the industries in which we invest; • the ability of our portfolio companies to achieve their objectives; • our expected financings and investments; • the adequacy of our cash resources and working capital; • the current and future effects of the COVID-19 pandemic on us and our portfolio companies; and • the timing of cash flows, if any, from the operations of our portfolio companies. We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report. We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (“SEC”), including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Overview Apollo Investment Corporation (the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” or “our”) was incorporated under the Maryland General Corporation Law in February 2004. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). As such, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, for federal income tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Pursuant to this election and assuming we qualify as a RIC, we generally do not have to pay corporate-level federal income taxes on any income we distribute to our stockholders. We commenced operations on April 8, 2004 upon completion of our initial public offering that raised $870 million in net proceeds from selling 62 million shares of common stock at a price of $15.00 per share (20.7 million shares at a price of $45.00 per share adjusted for the one-for-three reverse stock split). Since then, and through December 31, 2021, we have raised approximately $2.21 billion in net proceeds from additional offerings of common stock and we have repurchased common stock for $243.4 million. 86 Table of Contents Apollo Investment Management, L.P. (the “Investment Adviser” or “AIM”) is our investment adviser and an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“AGM”). The Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of, and provides investment advisory services to the Company. AGM and other affiliates manage other funds that may have investment mandates that are similar, in whole or in part, with ours. AIM and its affiliates may determine that an investment is appropriate both for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, AIM may determine that we should invest on a side-by-side basis with one or more other funds. We make all such investments subject to compliance with applicable regulations and interpretations, and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order (the “Order”) we received from the SEC permitting us to do so. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order. Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. In addition to furnishing us with office facilities, equipment, and clerical, bookkeeping and recordkeeping services, AIA also oversees our financial records as well as prepares our reports to stockholders and reports filed with the SEC. AIA also performs the calculation and publication of our net asset value, the payment of our expenses and oversees the performance of various third-party service providers and the preparation and filing of our tax returns. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance. COVID-19 Developments There is an ongoing global outbreak of COVID-19, which has spread to over 200 countries and territories, including every state in the United States. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19, including new variants, have continued to be identified in additional countries, many countries have reacted, and continue to react, by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of non-essential businesses. Such actions have created disruption in global supply chains, and adversely impacted many industries. Supply chain disruptions could significantly impact the businesses of our portfolio companies and lead to increased costs, inventory shortages, shipping delays and an inability to meet customer demands. The outbreak has had a continued adverse impact on economic and market conditions and has triggered a period of global economic slowdown. Although vaccines have been widely distributed in the U.S., certain U.S. states are planning on reopening and we believe the economy is beginning to rebound in certain respects, the uncertainty surrounding the COVID-19 pandemic, including uncertainty regarding new variants of COVID-19, the efficacy of existing vaccines against new variants and acceptance of vaccines and other factors have and may continue to contribute to significant volatility in the global markets. COVID-19 and the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our performance, financial condition, results of operations and ability to pay distributions. LIBOR Developments On July 27, 2017, the U.K Financial Conduct Authority (“FCA”) announced that it would phase out LIBOR as a benchmark by the end of 2021. As of December 31, 2021, all non-U.S. dollar LIBOR publications have been phased out. The phase out of a majority of the U.S. dollar publications is delayed until June 30, 2023. The Alternative Reference Rates Committee (“ARRC”) of the Federal Reserve Bank of New York previously confirm that this constitutes a “benchmark transition event” and established “benchmark replacement dates” in ARRC standard LIBOR transition provisions that exist in many U.S. law contracts using LIBOR. 87 Table of Contents The publication of all EUR and CHF LIBOR settings, the Spot Next/Overnight, 1 week, 2 month and 12 month JPY and GBP LIBOR settings, and the 1 week and 2 months USD LIBOR settings has ceased. The publication of the overnight, 1 month, 3 month, 6 month, and 12 months USD LIBOR settings will cease after June 30, 2023. The FCA plans to consult the market on creating “synthetic” 1 month, 3 month and 6 month rates for GBP and JPY LIBOR, to be published for a limited time. The New York State legislation was signed into law to aid “tough legacy” LIBOR contracts. Other legislative solutions are being pursued at the Federal level, in the U.K. and in Europe. The U.S. Federal banking agencies have also issued guidance encouraging banking and global organizations to cease reference to USD LIBOR as soon as practicable and, in any event, by December 31, 2021. The E.U. Benchmarks Regulation imposed conditions under which only compliant benchmarks may be used in new contracts after 2021. The ARRC has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by the U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. However, the COVID-19 pandemic may adversely impact the timing of many firms’ transition planning, and we continue to assess the potential impact of the COVID-19 pandemic on our transition plans. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, it is not possible at this time to predict the effect of any such changes, any establishment of alternative reference rates, whether the COVID-19 pandemic will have further effect on LIBOR transition timelines or plans, or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere. The discontinuation of LIBOR could have a significant impact on our business. We anticipate significant operational challenges for the transition away from LIBOR, including, but not limited to, amending existing loan agreements with borrowers on investments that may have not been modified with fallback language and adding effective fallback language to new agreements in the event that LIBOR is discontinued before maturity. Beyond these challenges, we anticipate there may be additional risks to our current processes and information systems that we will need to identify and evaluate. Due to the uncertainty of the replacement for LIBOR, the potential effect of any such event on our cost of capital and net investment income cannot yet be determined. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market value of any LIBOR-linked securities, loans and other financial obligations or extensions of credit held by or due to us and could have a material adverse effect on our business, financial condition and results of operations. Investments Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $250 million. Our portfolio also includes equity interests such as common stock, preferred stock, warrants or options. Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment, the competitive environment for the types of investments we make and, market disruptions due to COVID-19. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of December 31, 2021, non-qualifying assets represented approximately 13.0% of the total assets of the Company. 88 Table of Contents Revenue We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of mezzanine or senior secured loans, generally have a stated term of five to ten years and bear interest at a fixed rate or a floating rate usually determined on the basis of a benchmark, such as the LIBOR, the federal funds rate, or the prime rate. Interest on debt securities is generally payable quarterly or semiannually and while U.S. subordinated debt and corporate notes typically accrue interest at fixed rates, some of our investments may include zero coupon and/or step-up bonds that accrue income on a constant yield to call or maturity basis. In addition, some of our investments provide for payment-in-kind (“PIK”) interest or dividends. Such amounts of accrued PIK interest or dividends are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc. Expenses For all investment professionals of AIM and their staff, when and to the extent engaged in providing investment advisory and management services to us, the compensation and routine overhead expenses of that personnel which is allocable to those services are provided and paid for by AIM. We bear all other costs and expenses of our operations and transactions, including those relating to: • investment advisory and management fees; • expenses incurred by AIM payable to third parties, including agents, consultants or other advisors, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies; • calculation of our net asset value (including the cost and expenses of any independent valuation firm); • direct costs and expenses of administration, including independent registered public accounting and legal costs; • costs of preparing and filing reports or other documents with the SEC; • interest payable on debt, if any, incurred to finance our investments; • offerings of our common stock and other securities; • registration and listing fees; • fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments; • transfer agent and custodial fees; • taxes; • independent directors’ fees and expenses; • marketing and distribution-related expenses; • the costs of any reports, proxy statements or other notices to stockholders, including printing and postage costs; • our allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums; • organizational costs; and • all other expenses incurred by us or the Administrator in connection with administering our business, such as our allocable portion of overhead under the administration agreement, including rent and our allocable portion of the cost of our Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs. We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks, and offerings of our securities relative to comparative periods, among other factors. 89 Table of Contents Portfolio and Investment Activity Our portfolio and investment activity during the three and nine months ended December 31, 2021 and 2020 was as follows: Three Months Ended December 31, Nine Months Ended December 31, (in millions)* 2021 2020 2021 2020 Investments made in portfolio companies $ 335.5 $ 157.2 $ 920.8 $ 400.9 Investments sold (7.4) (17.8) (18.1) (101.1) Net activity before repaid investments 328.1 139.4 902.7 299.9 Investments repaid (350.8) (269.5) (782.5) (628.0) Net investment activity $ (22.7) $ (130.1) $ 120.2 $ (328.2) Portfolio companies at beginning of period 144 147 135 152 Number of new portfolio companies 7 7 27 10 Number of exited portfolio companies (12) (11) (23) (19) Portfolio companies at end of period 139 143 139 143 Number of investments made in existing portfolio companies 62 35 79 62 ____________________ * Totals may not foot due to rounding. 90 Table of Contents Our portfolio composition and weighted average yields as of December 31, 2021 and March 31, 2021 were as follows: December 31, 2021 March 31, 2021 Portfolio composition, at fair value: First lien secured debt 87 % 78 % Second lien secured debt 4 % 10 % Total secured debt 91 % 88 % Unsecured debt 1 % 1 % Structured products and other 0 % 0 % Preferred equity 1 % 1 % Common equity/interests and warrants 6 % 10 % Weighted average yields, at amortized cost (1): First lien secured debt (2) 7.9 % 7.8 % Second lien secured debt (2) 9.6 % 9.9 % Secured debt portfolio (2) 8.0 % 8.0 % Unsecured debt portfolio (2) 5.3 % 5.3 % Total debt portfolio (2) 7.9 % 8.0 % Total portfolio (3) 6.9 % 6.5 % Interest rate type, at fair value (4): Fixed rate amount $0.0 billion — Floating rate amount $2.0 billion $1.9 billion Fixed rate, as percentage of total 1 % — Floating rate, as percentage of total 99 % 100 % Interest rate type, at amortized cost (4): Fixed rate amount $0.0 billion — Floating rate amount $2.0 billion $1.9 billion Fixed rate, as percentage of total 1 % — Floating rate, as percentage of total 99 % 100 % ____________________ (1) An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses. (2) Exclusive of investments on non-accrual status. (3) Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status. (4) The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. Since the initial public offering of Apollo Investment in April 2004 and through December 31, 2021, invested capital totaled $22.8 billion in 579 portfolio companies. Over the same period, Apollo Investment completed transactions with more than 100 different financial sponsors. Recent Developments On February 3, 2022, the Company’s Board of Directors approved a new stock repurchase plan (the “Repurchase Plan”) to acquire up to $25 million of the Company’s common stock. The new Repurchase Plan is in addition to the Company's existing share repurchase authorization, of which approximately $5.8 million of repurchase capacity remains. Accordingly, the Company now has approximately $30.8 million available for stock repurchases under its repurchase program. 91 Table of Contents Critical Accounting Policies Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, gains and losses. Changes in the economic environment, financial markets, credit worthiness of portfolio companies and any other parameters used in determining such estimates could cause actual results to differ materially. In addition to the discussion below, our critical accounting policies are further described in the notes to the financial statements. Fair Value Measurements The Company follows guidance in ASC 820, Fair Value Measurement (“ASC 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. ASC 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for the asset or liability. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the values that would be received upon an actual disposition of such investments. As of December 31, 2021, $2.59 billion or 99.93% of the Company’s investments were classified as Level 3. The high proportion of Level 3 investments relative to our total investments is directly related to our investment philosophy and target portfolio, which consists primarily of long-term secured debt, as well as unsecured and mezzanine positions of private middle-market companies. A fundamental difference exists between our investments and those of comparable publicly traded fixed income investments, namely high-yield bonds, and this difference affects the valuation of our private investments relative to comparable publicly traded instruments. Senior secured loans, or senior loans, are higher in the capital structure than high-yield bonds, and are typically secured by assets of the borrowing company. This improves their recovery prospects in the event of default and affords senior loans a structural advantage over high-yield bonds. Many of the Company’s investments are also privately negotiated and contain covenant protections that limit the issuer to take actions that could harm us as a creditor. High-yield bonds typically do not contain such covenants. Given the structural advantages of capital seniority and covenant protection, the valuation of our private debt portfolio is driven more by investment specific credit factors than movements in the broader debt capital markets. Each security is evaluated individually and as indicated below, we value our private investments based upon a multi-step valuation process, including valuation recommendations from independent valuation firms. 92 Table of Contents Investment Valuation Process Under procedures established by our Board of Directors, we value investments, including certain secured debt, unsecured debt, and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case, such investments shall be valued at fair value as determined in good faith by or under the direction of our Board of Directors, including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of our Board of Directors. Such determination of fair values may involve subjective judgments and estimates. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board of Directors has approved a multi-step valuation process each quarter, as described below: 1. Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser who are responsible for the portfolio investment. 2. Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser. 3. Independent valuation firms are engaged by our Board of Directors to conduct independent appraisals by reviewing our Investment Adviser’s preliminary valuations and then making their own independent assessment. 4. The Audit Committee of the Board of Directors reviews the preliminary valuation of our Investment Adviser and the valuation prepared by the independent valuation firms and responds, if warranted, to the valuation recommendation of the independent valuation firms. 5. The Board of Directors discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of our Investment Adviser, the applicable independent valuation firm, and the Audit Committee of the Board of Directors. 6. For Level 3 investments entered into within the current quarter, the cost (purchase price adjusted for accreted original issue discount/amortized premium) or any recent comparable trade activity on the security investment shall be considered to reasonably approximate the fair value of the investment, provided that no material change has since occurred in the issuer’s business, significant inputs or the relevant environment. 93 Table of Contents Investments determined by these valuation procedures which have a fair value of less than $1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides a valuation. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered in the valuation process of independent valuation firms. During the nine months ended December 31, 2021, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process. Investment Income Recognition The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual PIK interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. Certain PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized. Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management’s judgment. Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, administrative fees, management fees, bridge fees, and structuring fees which are recorded when earned. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pools of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are payable solely from the cash flows from such assets. As such any unforeseen event in these underlying pools of assets might impact the expected recovery and future accrual of income. Expenses Expenses include management fees, performance-based incentive fees, interest expense, insurance expenses, administrative service fees, legal fees, directors’ fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis. 94 Table of Contents Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses) We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized gain (loss) reflects the net change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gains or losses. Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. Results of Operations Operating results for the three and nine months ended December 31, 2021 and 2020 were as follows: Three Months Ended December 31, Nine Months Ended December 31, (in millions)* 2021 2020 2021 2020 Investment Income Interest income (excluding Payment-in-kind (“PIK”) interest income) $ 51.9 $ 50.4 $ 147.6 $ 155.9 Dividend income 0.5 1.1 3.6 3.4 PIK interest income 1.0 1.6 3.5 4.8 Other income 1.6 1.2 3.8 1.8 Total investment income $ 55.0 $ 54.4 $ 158.4 $ 165.9 Expenses Management and performance-based incentive fees $ 14.6 $ 9.0 $ 37.7 $ 27.7 Interest and other debt expenses, net of reimbursements 14.1 13.2 40.7 42.4 Administrative services expense, net of reimbursements 1.4 1.1 4.2 3.4 Other general and administrative expenses 2.4 2.8 6.7 8.0 Net Expenses $ 32.5 $ 26.1 $ 89.3 $ 81.5 Net Investment Income $ 22.5 $ 28.2 $ 69.1 $ 84.4 Net Realized and Change in Unrealized Gains (Losses) Net realized gains (losses) $ (0.6) $ (6.7) $ (65.3) $ (18.1) Net change in unrealized gains (losses) (1.3) 11.6 74.4 3.2 Net Realized and Change in Unrealized Gains (Losses) $ (2.0) $ 4.9 $ 9.1 $ (14.9) Net Increase in Net Assets Resulting from Operations $ 20.5 $ 33.2 $ 78.1 $ 69.5 Net Investment Income on Per Average Share Basis (1) $ 0.35 $ 0.43 $ 1.07 $ 1.29 Earnings per share — basic (1) $ 0.32 $ 0.51 $ 1.21 $ 1.06 ____________________ * Totals may not foot due to rounding. (1) Based on the weighted average number of shares outstanding for the period presented. 95 Table of Contents Total Investment Income For the three months ended December 31, 2021 as compared to the three months ended December 31, 2020 The increase in total investment income for the three months ended December 31, 2021 compared to the three months ended December 31, 2020 was primarily driven by the increase in total interest income (including PIK) of $0.9 million. The increase in total interest income (including PIK) was primarily due to a higher income bearing investment portfolio. Furthermore there was an increase in prepayment fees and income recognized from the acceleration of discount, premium, or deferred fees on repaid investments, which totaled $2.4 million for the three months ended December 31, 2020 and $4.0 million for the three months ended December 31, 2021. This was partially offset by the $0.6 million decrease in dividend income. Furthermore, there was also an increase in other income of $0.4 million due to higher bridge fees. For the nine months ended December 31, 2021 as compared to the nine months ended December 31, 2020 The decrease in total investment income for the nine months ended December 31, 2021 compared to the nine months ended December 31, 2020 was primarily driven by the decrease in total interest income (including PIK) of $9.6 million. The decrease in total interest income (including PIK) was primarily due to a decrease in the portfolio of second lien secured debt. This was partially offset by an increase in prepayment fees and income recognized from the acceleration of discount, premium, or deferred fees on repaid investments, which totaled $4.7 million for the nine months ended December 31, 2020 and $8.7 million for the for the nine months ended December 31, 2021. The $0.2 million increase in dividend income was primarily due to an increase in dividends received from MSEA Tankers LLC. Furthermore, there was an increase in other income of $2.0 million due to higher amendment fees and bridge fees. Net Expenses For the three months ended December 31, 2021 as compared to the three months ended December 31, 2020 The increase in net expenses for the three months ended December 31, 2021 compared to the three months ended December 31, 2020 was primarily due to the increase in management and performance-based incentive fees. The increase of $5.6 million in management and performance-based incentive fees was due to an increase in performance based incentive fees and an increase in the investment portfolio. Furthermore, there was an increase in interest and other debt expenses, which was attributed to increase in the average debt outstanding and net leverage from $1.53 billion and 1.43x, respectively during the three months ended December 31, 2020, to $1.58 billion and 1.52x, respectively during the three months ended December 31, 2021. Additionally there was increase in the total annualized cost of debt, from 3.42% for the three months ended December 31, 2020 to 3.55% for the three months ended December 31, 2021. For the nine months ended December 31, 2021 as compared to the nine months ended December 31, 2020 The increase in net expenses for the nine months ended December 31, 2021 compared to the nine months ended December 31, 2020 was primarily due to the increase in management and performance-based incentive fees. The increase of $10.0 million in management and performance-based incentive fees was due to an increase in performance based incentive fees and an increase in the investment portfolio. Furthermore there was a decrease in interest and other debt expenses, which was attributed to a decrease in the average debt outstanding, from $1.66 billion during the nine months ended December 31, 2020, to $1.53 billion during the nine months ended December 31, 2021. This was partially offset by an increase in the total annualized cost of debt from 3.38% for the nine months ended December 31, 2020 to 3.54% for the nine months ended December 31, 2021. 96 Table of Contents Net Realized Gains (Losses) For the three months ended December 31, 2021 as compared to the three months ended December 31, 2020 During the three months ended December 31, 2021, we recognized gross realized gains of $0.6 million and gross realized losses of $1.3 million, resulting in net realized losses of $0.6 million. Significant realized gains (losses) for the three months ended December 31, 2021 are summarized below: (in millions) Net Realized Gain (Loss) Sequential Brands Group, Inc. $ (1.1) During the three months ended December 31, 2020, we recognized gross realized gains of $4.6 million and gross realized losses of $11.3 million, resulting in net realized losses of $6.7 million. Significant realized gains (losses) for the three months ended December 31, 2020 are summarized below: (in millions) Net Realized Gain (Loss) AMP Solar Group, Inc. $ 4.2 KLO Holdings, LLC (4.8) Garden Fresh (2.5) Learfield Communications (1.9) FiscalNote (1.5) For the nine months ended December 31, 2021 as compared to the nine months ended December 31, 2020 During the nine months ended December 31, 2021, we recognized gross realized gains of $4.0 million and gross realized losses of $69.4 million, resulting in net realized losses of $65.3 million. Significant realized gains (losses) for the nine months ended December 31, 2021 are summarized below: (in millions) Net Realized Gain (Loss) Niacet Corporation $ 1.1 Spotted Hawk (44.4) Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (20.9) Sequential Brands Group, Inc. (1.1) During the nine months ended December 31, 2020, we recognized gross realized gains of $5.3 million and gross realized losses of $23.5 million, resulting in net realized losses of $18.1 million. Significant realized gains (losses) for the nine months ended December 31, 2020 are summarized below: (in millions) Net Realized Gain (Loss) AMP Solar Group, Inc. $ 4.2 KLO Holdings, LLC (8.5) ZPower, LLC (6.1) Garden Fresh (2.5) Learfield Communications (1.9) FiscalNote (1.5) 97 Table of Contents Net Change in Unrealized Gains (Losses) For the three months ended December 31, 2021 as compared to the three months ended December 31, 2020 During the three months ended December 31, 2021, we recognized gross unrealized gains of $26.9 million and gross unrealized losses of $28.2 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized losses of $1.3 million. Significant changes in unrealized gains (losses) for the three months ended December 31, 2021 are summarized below: (in millions) Net Change in Unrealized Gain (Loss) ChyronHego Corporation $ 6.3 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) 5.2 Merx Aviation Finance, LLC 3.4 Pelican 2.2 Sequential Brands Group, Inc. 1.1 Dynamic Product Tankers (Prime), LLC (10.3) Spotted Hawk (3.9) Ambrosia Buyer Corp. (3.1) MSEA Tankers LLC (1.6) During the three months ended December 31, 2020, we recognized gross unrealized gains of $49.6 million and gross unrealized losses of $38.0 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $11.6 million. Significant changes in unrealized gains (losses) for the three months ended December 31, 2020 are summarized below: (in millions) Net Change in Unrealized Gain (Loss) ChyronHego Corporation $ 5.7 KLO Holdings, LLC 5.2 Garden Fresh 2.5 NFA Group 2.5 MSEA Tankers LLC 2.0 Learfield Communications 1.9 CARE Fertility 1.8 MYCOM 1.8 PIB Group 1.5 AMP Solar Group, Inc. 1.4 Spotted Hawk (9.5) Ambrosia Buyer Corp. (6.5) Renew Financial LLC (f/k/a Renewable Funding, LLC) (2.4) Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (2.2) Dynamic Product Tankers (Prime), LLC (1.8) Sonar Entertainment (1.1) 98 Table of Contents For the nine months ended December 31, 2021 as compared to the nine months ended December 31, 2020 During the nine months ended December 31, 2021, we recognized gross unrealized gains of $115.2 million and gross unrealized losses of $40.8 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $74.4 million. Significant changes in unrealized gains (losses) for the nine months ended December 31, 2021 are summarized below: (in millions) Net Change in Unrealized Gain (Loss) Spotted Hawk $ 37.3 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) 24.0 Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) 18.7 ChyronHego Corporation 6.8 Paper Source 3.0 Merx Aviation Finance, LLC 2.7 Sequential Brands Group, Inc. 2.2 Pelican 2.2 US Legal Support 1.5 Genesis Healthcare, Inc. 1.5 Dynamic Product Tankers (Prime), LLC (19.8) Ambrosia Buyer Corp. (5.7) MSEA Tankers LLC (4.1) Niacet Corporation (1.1) 99 Table of Contents During the nine months ended December 31, 2020, we recognized gross unrealized gains of $91.3 million and gross unrealized losses of $88.1 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized losses of $3.2 million. Significant changes in unrealized gains (losses) for the nine months ended December 31, 2020 are summarized below: (in millions) Net Change in Unrealized Gain (Loss) KLO Holdings, LLC $ 11.6 ZPower, LLC 4.8 NFA Group 4.8 ChyronHego Corporation 3.2 CARE Fertility 3.1 CT Technologies Intermediate Holdings, Inc 3.0 PIB Group 3.0 MYCOM 2.8 MSEA Tankers LLC 2.3 McLarens 2.2 Spotted Hawk (14.6) Dynamic Product Tankers (Prime), LLC (11.3) Merx Aviation Finance, LLC (9.1) Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) (8.9) Ambrosia Buyer Corp. (7.6) Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (6.5) Paper Source (2.3) Renew Financial LLC (f/k/a Renewable Funding, LLC) (1.8) Sonar Entertainment (1.2) Solarplicity Group Limited (f/k/a AMP Solar UK) (1.1) 100 Table of Contents Liquidity and Capital Resources The Company’s liquidity and capital resources are generated and generally available through periodic follow-on equity and debt offerings, our Senior Secured Facility (as defined in Note 6 to the financial statements), our senior secured notes, our senior unsecured notes, investments in special purpose entities in which we hold and finance particular investments on a non-recourse basis, as well as from cash flows from operations, investment sales of liquid assets and repayments of senior and subordinated loans and income earned from investments. We believe that our current cash and cash equivalents on hand, our short-term investments, our available borrowing capacity under our Senior Secured Facility and our anticipated cash flows from operations will be adequate to meet our cash needs for our daily operations for at least the next twelve months. This "Liquidity and Capital Resources" section should be read in conjunction with "COVID-19 Developments" section above. Cash Equivalents The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents (See Note 2 to the financial statements.) At the end of each fiscal quarter, we consider taking proactive steps utilizing cash equivalents with the objective of enhancing our investment flexibility during the following quarter, pursuant to Section 55 of the 1940 Act. More specifically, we may purchase U.S. Treasury bills from time-to-time on the last business day of the quarter and typically close out that position on the following business day, settling the sale transaction on a net cash basis with the purchase, subsequent to quarter end. Apollo Investment may also utilize repurchase agreements or other balance sheet transactions, including drawing down on our Senior Secured Facility, as we deem appropriate. The amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined. Debt See Note 6 to the financial statements for information on the Company’s debt. The following table shows the contractual maturities of our debt obligations as of December 31, 2021: Payments Due by Period (in millions) Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Senior Secured Facility (1) $ 1,117.5 $ — $ — $ 1,117.5 $ — 2025 Notes 350.0 — — 350.0 — 2026 Notes 125.0 — — 125.0 — Total Debt Obligations $ 1,592.5 $ — $ — $ 1,592.5 $ — ____________________ (1) As of December 31, 2021, aggregate lender commitments under the Senior Secured Facility totaled $1.81 billion and $692.3 million of unused capacity. As of December 31, 2021, there were $0.2 million of letters of credit issued under the Senior Secured Facility as shown as part of total commitments in Note 8 to the financial statements. Stockholders’ Equity See Note 7 to the financial statements for information on the Company’s public offerings and share repurchase plans. 101 Table of Contents Distributions Distributions paid to stockholders during the three and nine months ended December 31, 2021 totaled $23.4 million ($0.36 per share) and $70.3 million ($1.08 per share), respectively. Distributions paid to stockholders during the three and nine months ended December 31, 2020 totaled $23.5 million ($0.36 per share) and $82.2 million ($1.26 per share), respectively. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. Although the tax character of distributions paid to stockholders through December 31, 2021 may include return of capital, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ended March 31, 2022. Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the calendar year. Our quarterly distributions, if any, will be determined by our Board of Directors. To maintain our RIC status, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. Although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. Currently, we have substantial net capital loss carryforwards and consequently do not expect to generate cumulative net capital gains in the foreseeable future. We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend, then stockholders’ cash dividends will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash dividends. We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a BDC, we may in the future be limited in our ability to make distributions. Also, our revolving credit facility may limit our ability to declare dividends if we default under certain provisions or fail to satisfy certain other conditions. If we do not distribute a certain percentage of our income annually, we may suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual PIK, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may not be able to meet the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC. With respect to the distributions to stockholders, income from origination, structuring, closing, commitment and other upfront fees associated with investments in portfolio companies is treated as taxable income and accordingly, distributed to stockholders. PIK Income For the three and nine months ended December 31, 2021, PIK income totaled $1.0 million and $3.5 million on total investment income of $55.0 million and $158.4 million respectively. For the three and nine months ended December 31, 2020, PIK income totaled $1.6 million and $4.8 million on total investment income of $54.4 million and $165.9 million respectively. In order to maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders annually in the form of distributions, even though the Company has not yet collected the cash. See Note 5 to the financial statements for more information on the Company’s PIK income. Related Party Transactions See Note 3 to the financial statements for information on the Company’s related party transactions. 102 Table of Contents Item 3. Quantitative and Qualitative Disclosures About Market Risk We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of the COVID-19 outbreak and subsequent variants has introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks, including those listed below. For additional information concerning the COVID-19 pandemic and its potential impact on our business and our operating results, see Part II - Other information, Item 1A. Risk Factors. Investment valuation risk Because there is not a readily available market value for most of the investments in our portfolio, we value all of our portfolio investments at fair value as determined in good faith by our board of directors based on, among other things, the input of our management and audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” and “—Fair Value Measurements” as well as Notes 2 and 5 to our financial statements for the three and nine months ended December 31, 2021, for more information relating to our investment valuation. Interest Rate Risk Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. As of December 31, 2021, all of our debt portfolio investments bore interest at variable rates, which generally are LIBOR-based (or based on an equivalent applicable currency rate) and typically have durations of one to six months after which they reset to current market interest rates, and many of which are subject to certain floors. Further, our Senior Secured Facility bears interest at LIBOR rates with no interest rate floors, while the 2025 Notes bears interest at a fixed rate. As of December 31, 2021, all non-U.S. dollar LIBOR publications have been phased out. The phase out of a majority of the U.S. dollar publications is delayed until June 30, 2023. Potential changes, or uncertainty related to such potential changes, may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities, or the cost of our borrowings. Please see Part 1 of our annual report on Form 10-k for the year ended March 31, 2021, “Item 1A. Risk Factors—Risks Relating to the Current Environment—Uncertainty relating to the LIBOR calculation process may adversely affect the value of our portfolio of the LIBOR-indexed, floating-rate debt securities in our portfolio or the cost of our borrowings” We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. 103 Table of Contents The following table shows the estimated annual impact on net investment income of base rate changes in interest rates (considering interest rate flows for variable rate instruments) to our loan portfolio and outstanding debt as of December 31, 2021, assuming no changes in our investment and borrowing structure: Basis Point Change Net Investment Income Net Investment Income Per Share Up 200 basis points $ 2.9 million $ 0.045 Up 100 basis points (4.4) million (0.068) Up 50 basis points (3.7) million (0.058) Down 25 basis points 1.2 million 0.019 We may hedge against interest rate fluctuations from time-to-time by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments. 104 Table of Contents Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures As of December 31, 2021 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures. Changes in Internal Control Over Financial Reporting Management has not identified any change in the Company’s internal control over financial reporting that occurred during the third fiscal quarter of 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. 105 Table of Contents PART II. OTHER INFORMATION Item 1. Legal Proceedings From time to time, we may become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While we do not expect that the resolution of these matters if they arise would materially affect our business, financial condition or results of operations, resolution will be subject to various uncertainties and could result in the expenditure of significant financial and managerial resources. Item 1A. Risk Factors In addition to the other information set forth in this report and as provided below, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2021, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Inflation may adversely affect our business and operations and those of our portfolio companies . Economic activity has continued to accelerate across sectors and regions. Nevertheless, due to global supply chain issues, a rise in energy prices and strong consumer demand as economies continue to reopen, inflation is showing signs of acceleration in the U.S. and globally. Inflation is likely to continue in the near to medium-term, particularly in the U.S., with the possibility that monetary policy may tighten in response. Certain of our portfolio companies may be impacted by inflation and persistent inflationary pressures could negatively affect our portfolio companies profit margins. Disruptions to the global supply chain may have adverse impact on our portfolio companies and, in turn, harm us . Recent supply chain disruptions, including the global microchip shortage, may have an adverse impact on the business of our portfolio companies. Potential adverse impacts to certain of our portfolio companies may include, among others, increased costs, inventory shortages, shipping and project completion delays, and inability to meet customer demand. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Unregistered Sales of Equity Securities None. Issuer Purchases of Equity Securities The Company adopted the following plans, approved by the Board of Directors, for the purpose of repurchasing its common stock in accordance with applicable rules specified in the 1934 Act (the “Repurchase Plans”): Date of Agreement/Amendment Maximum Cost of Shares That May Be Repurchased Cost of Shares Repurchased Remaining Cost of Shares That May Be Repurchased August 5, 2015 $ 50.0 million $ 50.0 million $ — December 14, 2015 50.0 million 50.0 million — September 14, 2016 50.0 million 50.0 million — October 30, 2018 50.0 million 50.0 million — February 6, 2019 50.0 million 43.4 million 6.6 million Total as of December 31, 2021 $ 250.0 million $ 243.4 million $ 6.6 million The Repurchase Plans were designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company will have the authority under the terms and limitations specified in an agreement with the Company to repurchase shares on the Company’s behalf in accordance with the terms of the Repurchase Plans. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the Repurchase Plans. Pursuant to the Repurchase Plans, the Company may from time to time repurchase a portion of its shares of common stock and the Company is hereby notifying stockholders of its intention as required by applicable securities laws. 106 Table of Contents Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”): Effective Date Termination Date Amount Allocated to 10b5-1 Repurchase Plans September 15, 2015 November 5, 2015 $ 5.0 million January 1, 2016 February 5, 2016 10.0 million April 1, 2016 May 19, 2016 5.0 million July 1, 2016 August 5, 2016 15.0 million September 30, 2016 November 8, 2016 20.0 million January 4, 2017 February 6, 2017 10.0 million March 31, 2017 May 19, 2017 10.0 million June 30, 2017 August 7, 2017 10.0 million October 2, 2017 November 6, 2017 10.0 million January 3, 2018 February 8, 2018 10.0 million June 18, 2018 August 9, 2018 10.0 million September 17, 2018 October 31, 2018 10.0 million December 12, 2018 February 7, 2019 10.0 million February 25, 2019 May 17, 2019 25.0 million March 18, 2019 May 17, 2019 10.0 million June 4, 2019 August 7, 2019 25.0 million June 17, 2019 August 7, 2019 20.0 million September 16, 2019 November 6, 2019 20.0 million December 6, 2019 February 5, 2020 25.0 million December 16, 2019 February 5, 2020 15.0 million March 12, 2020 March 19, 2020 20.0 million March 30, 2021 May 21, 2021 10.0 million June 16, 2021 November 5, 2021 10.0 million December 16, 2021 February 4, 2022 5.0 million 107 Table of Contents The following table presents information with respect to the Company’s purchases of its common stock since adoption of the Repurchase Plans through December 31, 2021: Month Total Number of Shares Purchased Average Price Paid Per Share* Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Dollar Value of Shares That May Yet Be Purchased Under Publicly Announced Plans August 2015 510,000 $ 19.71 510,000 $ 40.0 million September 2015 603,466 18.46 603,466 28.8 million November 2015 1,116,666 18.10 1,116,666 8.6 million December 2015 627,443 17.58 627,443 47.6 million January 2016 670,708 14.91 670,708 37.6 million June 2016 362,933 16.73 362,933 31.5 million July 2016 16,491 16.53 16,491 31.2 million August 2016 596,294 17.67 596,294 20.7 million September 2016 411,523 18.13 411,523 63.2 million October 2016 527,417 17.82 527,417 53.8 million November 2016 239,289 17.45 239,289 49.6 million August 2017 33,333 17.96 33,333 49.0 million September 2017 186,767 17.98 186,767 45.7 million October 2017 144,867 17.96 144,867 43.1 million November 2017 64,500 17.79 64,500 41.9 million December 2017 50,100 17.89 50,100 41.0 million January 2018 577,386 17.32 577,386 31.0 million February 2018 70,567 16.23 70,567 29.9 million May 2018 263,667 17.12 263,667 25.4 million June 2018 198,601 16.94 198,601 22.0 million July 2018 8,867 16.75 8,867 21.9 million August 2018 502,767 17.11 502,767 13.3 million September 2018 444,467 16.54 444,467 5.9 million October 2018 160,800 16.46 160,800 53.3 million November 2018 595,672 15.81 595,672 43.9 million December 2018 741,389 13.49 741,359 33.9 million February 2019 19,392 15.16 19,392 83.6 million March 2019 291,426 15.40 291,426 79.1 million April 2019 44,534 15.23 44,534 78.4 million May 2019 298,026 15.93 298,026 73.6 million June 2019 607,073 15.97 607,073 63.9 million July 2019 89,610 16.10 89,610 62.5 million August 2019 758,020 16.15 758,020 50.3 million September 2019 32,371 16.26 32,371 49.7 million October 2019 495,464 15.65 495,464 42.0 million November 2019 6,147 15.91 6,147 41.9 million March 2020 1,286,565 11.62 1,286,565 26.9 million May 2021 145,572 13.92 145,572 24.9 million July 2021 44,418 13.46 44,418 24.3 million August 2021 45,675 13.32 45,675 23.7 million September 2021 360,860 13.02 360,860 19.0 million October 2021 308,005 13.30 308,005 14.9 million November 2021 419,372 13.05 419,372 9.4 million December 2021 227,429 12.44 227,429 6.6 million Total 15,205,939 $ 16.01 15,205,909 ________________ * The average price per share is inclusive of commissions. 108 Table of Contents Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures Not applicable. Item 5. Other Information None. 109 Table of Contents Item 6. Exhibits (a) Exhibits 3.1(a) Articles of Amendment (1) 3.1(b) Articles of Amendment and Restatement (2) 3.1(c) Articles of Amendment (4) 3.1(d) Articles of Amendment (5) 3.2 Fifth Amended and Restated Bylaws (3) 31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934* 31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934* 32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)* _________________________ * Filed herewith. (1) Incorporated by reference from the Registrant’s pre-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, as Form N-2, filed on June 20, 2005. (2) Incorporated by reference from the Registrant’s post-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, on Form N-2, filed on August 14, 2006. (3) Incorporated by reference to Exhibit 3.2 as applicable, to the Registrant’s Form 8-K, filed on May 18, 2018. (4) Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on December 3, 2018. (5) Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on July 22, 2019. 110 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 3, 2022. APOLLO INVESTMENT CORPORATION By: /s/ HOWARD WIDRA Howard Widra Chief Executive Officer By: /s/ GREGORY W. HUNT Gregory W. Hunt Chief Financial Officer and Treasurer By: /s/ AMIT JOSHI Amit Joshi Chief Accounting Officer and Assistant Treasurer 111