What changed in this filing

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Item 1. Financial Statements

2021-08-03 compared with 2021-05-05 · 645 added, 559 removed, 1789 unchanged (40% of the section changed)

3 unchanged sentences

(in thousands, except share amounts)

March 31, 2021

June 30, 2021

Investments at fair value:

32 unchanged sentences

Three months ended

March 31, 2021

March 31, 2020

Six months ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

INVESTMENT INCOME:

30 unchanged sentences

Three months ended

March 31, 2021

March 31, 2020

Six months ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Increase (decrease) in net assets resulting from operations:

16 unchanged sentences

(in thousands)

Three months ended

March 31, 2021

March 31, 2020

Six months ended

June 30, 2021

June 30, 2020

Cash Flows from Operating Activities:

24 unchanged sentences

Other liabilities and accrued expenses

Net Cash Provided by (Used in) Operating Activities

Net Cash Provided by Operating Activities

Cash Flows from Financing Activities:

3 unchanged sentences

Repayment of secured borrowings

Net Cash Provided by (Used in) Financing Activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Net Cash Used in Financing Activities

NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

5 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)

March 31, 2021

June 30, 2021

thousands, except share/unit amounts)

9 unchanged sentences

Diversified Financial Services

AviatorCap SII, LLC (2)

Aerospace & Defense

Basic Fun, Inc.

Specialty Retail

CC SAG Holdings Corp.

(Spectrum Automotive)

Diversified Consumer Services

Enhanced Permanent Capital, LLC(3)

2 unchanged sentences

Personal Products

High Street Insurance Partners, Inc.

Kingsbridge Holdings, LLC(2)

8 unchanged sentences

Commercial Services & Supplies

Pet Holdings ULC & Pet Supermarket, Inc.

Specialty Retail

PhyNet Dermatology LLC

7 unchanged sentences

Personal Products

SunMed Group Holdings, LLC

Health Care Equipment & Supplies

The Childrens Place, Inc.(3)

4 unchanged sentences

Second Lien Asset-Based Senior Secured Loans

Greystone Select Holdings LLC & Greystone & Co., Inc.

Thrifts & Mortgage Finance

Varilease Finance, Inc.

22 unchanged sentences

Health Care Equipment & Supplies

GenMark Diagnostics, Inc.

Health Care Providers & Services

Kindred Biosciences, Inc.

4 unchanged sentences

Health Care Equipment & Supplies

PQ Bypass, Inc.

Health Care Equipment & Supplies

Rezolute, Inc.

Biotechnology

Rubius Therapeutics, Inc.

11 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

March 31, 2021

June 30, 2021

thousands, except share/unit amounts)

Interest Rate (1)

Equipment Financing 32.7%

7 unchanged sentences

3/1/2022-11/1/2022

Boart Longyear Company (14)

Boart Longyear

Metals & Mining

7 unchanged sentences

Champion Air, LLC (10)

Clubcorp Holdings, Inc.

Hotels, Restaurants & Leisure

Dongwon Autopart Technology Inc.

Auto Components

Easton Sales and Rentals, LLC (10)

Commercial Services & Supplies

EasyPak, LLC (10)

6 unchanged sentences

Commercial Services & Supplies

Family First Freight, LLC (10)

Family First Freight,

6/1/2022-5/1/2023

Freightsol LLC (14)

Garda CL Technical Services, Inc.

Garda CL Technical Services,

Commercial Services & Supplies

4 unchanged sentences

GMT Corporation (14)

Haljoe Coaches USA, LLC (14)

7/1/2022-7/1/2024

HTI Logistics Corporation (10)

Haljoe Coaches USA,

HTI Logistics

Corporation (10)

Commercial Services & Supplies

5/1/2024-9/1/2025

Interstate NDT, Inc.

7/1/2023-10/25/2023

International Automotive Components Group, North America, Inc.

Auto Components

ISR Holdings, LLC (10)

Commercial Services & Supplies

JP Motorsports, Inc.

Kool Pak, LLC (14)

2 unchanged sentences

5/16/24-9/25/24

Lux Credit Consultants, LLC (10)

Mountain Air Helicopters, Inc.

6 unchanged sentences

Commercial Services & Supplies

4/1/2021-9/1/2022

Royal Coach Lines, Inc.(14)

15 unchanged sentences

Energy Equipment & Services

Sun-Tech Leasing of Texas, L.P.

Superior Transportation, Inc.

8 unchanged sentences

Up Trucking Services, LLC (14)

4/1/2022-8/1/2024

Warrior Crane Services, LLC (10)

18 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

March 31, 2021

June 30, 2021

thousands, except share/unit amounts)

14 unchanged sentences

Multi-Sector Holdings

PQ Bypass, Inc.

Health Care Equipment & Supplies

RD Holdco Inc.

23 unchanged sentences

Net Assets 100.0%

Floating rate debt investments typically bear interest at a rate determined by reference to the London

Interbank Offered Rate (LIBOR), and which typically reset monthly, quarterly or semi-annually.

Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank

Offered Rate (LIBOR), and which typically reset monthly, quarterly or semi-annually.

For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of

March 31, 2021.

June 30, 2021.

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies

of a company, as defined in the Investment Company Act of 1940 (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.

Transactions during the three months ended March 31, 2021 in these controlled investments are as follows:

Transactions during the six months ended June 30, 2021 in these controlled investments are as follows:

Name of Issuer

3 unchanged sentences

Fair Value at

March 31, 2021

June 30, 2021

AviatorCap SII, LLC

13 unchanged sentences

SLR Equipment Finance (debt)

See notes to consolidated

financial statements.

See notes to consolidated financial statements.

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

March 31, 2021

June 30, 2021

Indicates assets that the Company believes may not represent qualifying assets under

2 unchanged sentences

follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act.

As of March 31, 2021, on a fair value

As of June 30, 2021, on a fair value

basis, non-qualifying assets in the portfolio represented 24.1% of the total assets of the Company.

12 unchanged sentences

All investments are Level 3 unless otherwise indicated.

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR

or PRIME rate.

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or

These instruments are often subject to a LIBOR or PRIME rate floor.

22 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

March 31, 2021

June 30, 2021

Industry Classification

1 unchanged sentence

Investments (at fair value) as

of March 31, 2021

of June 30, 2021

Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment

1 unchanged sentence

Diversified Financial Services (includes SLR Credit Solutions)

Health Care Providers & Services

Pharmaceuticals

Health Care Providers & Services

Health Care Equipment & Supplies

Commercial Services & Supplies

Specialty Retail

Personal Products

Commercial Services & Supplies

Wireless Telecommunication Services

Communications Equipment

Capital Markets

Thrifts & Mortgage Finance

Diversified Consumer Services

Specialty Retail

Capital Markets

Auto Components

Biotechnology

Aerospace & Defense

3 unchanged sentences

Oil, Gas & Consumable Fuels

Auto Components

Air Freight & Logistics

1 unchanged sentence

Health Care Technology

Hotels, Restaurants & Leisure

Total Investments

3 unchanged sentences

December 31, 2020

(in thousands)

Senior Secured Loans 93.7%

12 unchanged sentences

Specialty Retail

Enhanced Permanent Capital, LLC(3)

Enhanced Permanent Capital,

Capital Markets

76 unchanged sentences

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

March 31, 2020

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2020

thousands, except share/unit amounts)

Interest Rate (1)

Equipment Financing 33.4%

52 unchanged sentences

Multi-Sector Holdings

Rane Light Metal Castings Inc.

Rane Light Metal Castings

Commercial Services & Supplies

101 unchanged sentences

Net Assets 100.0%

Floating rate debt investments typically bear interest at a rate determined by reference to the London

Interbank Offered Rate (LIBOR), and which typically reset monthly, quarterly or semi-annually.

Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank

Offered Rate (LIBOR), and which typically reset monthly, quarterly or semi-annually.

For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of

26 unchanged sentences

Rug Doctor LLC

See notes to consolidated

financial statements.

See notes to consolidated financial statements.

SLR INVESTMENT CORP.

12 unchanged sentences

federal income tax purposes is $4,446;

aggregate gross

unrealized appreciation and depreciation for U.S.

aggregate gross unrealized

appreciation and depreciation for U.S.

federal tax purposes is $52,349 and $47,903, respectively, based on a tax cost of $1,527,505.

Unless otherwise noted, all of the Companys investments are pledged as collateral against the

borrowings outstanding on the senior secured credit facility.

Unless otherwise noted, all of the Companys investments are pledged as collateral against the borrowings

outstanding on the senior secured credit facility.

The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the Securities Act).

investments are generally subject to certain limitations on resale, and may be deemed to be restricted securities under the Securities Act.

These investments are

generally subject to certain limitations on resale, and may be deemed to be restricted securities under the Securities Act.

All investments are Level 3 unless otherwise indicated.

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR

or PRIME rate.

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or

These instruments are often subject to a LIBOR or PRIME rate floor.

Denotes a Level 1 investment.

NEF Holdings, LLC is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC,

a wholly-owned consolidated subsidiary.

NEF Holdings, LLC is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a

wholly-owned consolidated subsidiary.

Indicates an investment that is wholly held by the Company through NEFPASS LLC.

14 unchanged sentences

Non-income producing security.

See notes to consolidated

financial statements.

See notes to consolidated financial statements.

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

Deember 31, 2020

December 31, 2020

Industry Classification

25 unchanged sentences

Total Investments

See notes to consolidated

financial statements.

See notes to consolidated financial statements.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

March 31, 2021

June 30, 2021

thousands, except share amounts)

45 unchanged sentences

The significant accounting policies consistently followed by the Company are:

(a) Investment

transactions are accounted for on the trade date;

Investment transactions are accounted for on the trade date;

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

39 unchanged sentences

input in the valuation process.

For the three months ended March 31, 2021, there has been no change to the Companys valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

For the six months ended June 30, 2021, there has been no change to the Companys valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy:

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

53 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

27 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

33 unchanged sentences

For financial statement purposes, the second part of the performance-based incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation.

accrual was required for the three months ended March 31, 2021 and 2020.

For the three months ended March 31, 2021 and 2020,

accrual was required for the three and six months ended June 30, 2021 and 2020.

For the three and six months ended June 30,

2021, the Company recognized $6,890 and $13,700, respectively, in base management fees and $3,879 and $7,746, respectively, in performance-based incentive fees.

The Company has also entered into an Administration Agreement with SLR Capital Management, LLC (f/k/a Solar Capital Management, LLC) (the

Administrator) under which the Administrator provides administrative services to the Company.

For providing these services, facilities and personnel, the Company reimburses the Administrator for the Companys allocable portion of

overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent.

The Administrator will also provide, on the Companys behalf, managerial assistance to those portfolio

companies to which the Company is required to provide such assistance.

The Company typically reimburses the Administrator on a quarterly basis.

For the three months ended March 31, 2021 and 2020, the Company recognized expenses under the Administration Agreement of $1,360 and

$1,147 respectively.

No managerial assistance fees were accrued or collected for the three months ended March 31, 2021 and 2020.

For the three and six months ended June 30, 2020, the Company recognized $5,971 and

$12,240, respectively, in base management fees and $0 and $1,480, respectively, in performance-based incentive fees.

The Company has also

entered into an Administration Agreement with SLR Capital Management, LLC (f/k/a Solar Capital Management, LLC) (the Administrator) under which the Administrator provides administrative services to the Company.

For providing these

services, facilities and personnel, the Company reimburses the Administrator for the Companys allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement,

including rent.

The Administrator will also provide, on the Companys behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance.

The Company typically reimburses the Administrator on

a quarterly basis.

For the three and six months ended June 30, 2021, the Company recognized expenses under the Administration

Agreement of $1,375 and $2,735 respectively.

For the three and six months ended June 30, 2020, the Company recognized expenses under the Administration Agreement of $1,148 and $2,295, respectively.

No managerial assistance fees were accrued or

collected for the three and six months ended June 30, 2021 and 2020.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

Net Asset Value Per Share

At March 31, 2021, the Companys total net assets and net asset value per share were $856,206 and $20.26, respectively.

At June 30, 2021, the Companys total net assets and net asset value per share were $857,446 and $20.29, respectively.

This compares

2 unchanged sentences

The following table sets forth the computation of basic and diluted net increase (decrease) in net assets per share resulting

from operations, pursuant to ASC 260-10, for the three months ended March 31, 2021 and 2020:

Three months ended March 31,

from operations, pursuant to ASC 260-10, for the three and six months ended June 30, 2021 and 2020:

Three months ended June 30,

Six months ended June 30,

Earnings (loss) per share (basic & diluted)

37 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

The following tables present the balances of assets and liabilities measured at fair value on

a recurring basis, as of March 31, 2021 and December 31, 2020:

a recurring basis, as of June 30, 2021 and December 31, 2020:

Fair Value Measurements

As of March 31, 2021

As of June 30, 2021

Senior Secured Loans

14 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

The following tables provide a summary of the changes in fair value of Level 3 assets

and liabilities for the three months ended March 31, 2021, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at March 31, 2021:

and liabilities for the three and six months ended June 30, 2021, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at June 30, 2021:

Fair Value Measurements Using Level 3 Inputs

2 unchanged sentences

Common Equity/

Fair value, March 31, 2021

Total gains or losses included in earnings:

Net realized gain

Net change in unrealized gain (loss)

Purchase of investment securities

Proceeds from dispositions of investment securities

Transfers in/out of Level 3

Fair value, June 30, 2021

Unrealized losses for the period relating to those Level 3 assets that were still held by the

Company at the end of the period:

Net change in unrealized gain (loss)

Senior Secured

Preferred Equity

Common Equity/

Fair value, December 31, 2020

Total gains or losses included in earnings:

Net realized loss

Net realized gain

Net change in unrealized gain (loss)

2 unchanged sentences

Transfers in/out of Level 3 (1)

Fair value, March 31, 2021

Fair value, June 30, 2021

Unrealized losses for the period relating to those Level 3 assets that were still held by the

5 unchanged sentences

is publicly traded, so this position is considered to be a Level 1 asset.

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities measured using significant

unobservable inputs (Level 3) for the three months ended March 31, 2021:

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2021

thousands, except share amounts)

The following table shows a reconciliation of the beginning and ending balances for fair

valued liabilities measured using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2021:

2022 Unsecured Notes and Unfunded Commitments

For the three months ended

March 31, 2021

June 30, 2021

Beginning fair value

3 unchanged sentences

Ending fair value

2022 Unsecured Notes and Unfunded Commitments

For the six months ended

June 30, 2021

Beginning fair value

Net realized (gain) loss

Net change in unrealized (gain) loss

Transfers in/out of Level 3

Ending fair value

The Company made an election to apply the fair value option of accounting to the 2022 Unsecured Notes, in

accordance with ASC 825-10.

On March 31, 2021, there were borrowings of $150,000 on the 2022 Unsecured Notes.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

thousands, except share amounts)

The following table provides a summary of the changes in fair value of Level 3 assets

for the year ended December 31, 2020, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2020:

On June 30, 2021, there were borrowings of $150,000 on the 2022 Unsecured Notes.

The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2020, as well

as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2020:

Fair Value Measurements Using Level 3 Inputs

13 unchanged sentences

Net change in unrealized loss

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities

measured using significant unobservable inputs (Level 3) for the year ended December 31, 2020:

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2021

thousands, except share amounts)

The following table shows a reconciliation of the beginning and ending balances for fair

valued liabilities measured using significant unobservable inputs (Level 3) for the year ended December 31, 2020:

2022 Unsecured Notes

17 unchanged sentences

investment within each portfolio company.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

thousands, except share amounts)

Significant unobservable quantitative inputs typically used in the fair value measurement of

1 unchanged sentence

enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (EBITDA) multiples of similar companies, and comparable market transactions for equity securities.

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of March 31, 2021 is

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of June 30, 2021 is

summarized in the table below:

Fair Value at

March 31, 2021

June 30, 2021

Principal Valuation

24 unchanged sentences

1.5% 4.6% (4.5%)

Includes $675 of investments valued using a weighted valuation approach, $486 of investments valued using a

Black-Scholes model, $6,442 of investments valued using an EBITDA multiple and $136,596 of investments which, due to the relative proximity of the transaction relative to the measurement date, were valued using the cost of the investments.

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of

December 31, 2020 is summarized in the table below:

Includes $366 of investments valued using a Black-Scholes model and $144,438 of investments valued using an

EBITDA multiple.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2021

thousands, except share amounts)

Quantitative information about the Companys Level 3 asset and liability fair value

measurements as of December 31, 2020 is summarized in the table below:

Fair Value at

32 unchanged sentences

EBITDA multiples may result in a decrease in the fair value of certain of the Companys investments.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

thousands, except share amounts)

Our debt obligations consisted of the following as of March 31, 2021 and December 31, 2020:

March 31, 2021

Our debt obligations consisted of the following as of June 30, 2021 and December 31, 2020:

June 30, 2021

December 31, 2020

9 unchanged sentences

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $1,932 and $2,234 as of

March 31, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $567 and $623 as of

March 31, 2021 and December 31, 2020, respectively.

June 30, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $510 and $623 as of

March 31, 2021 and December 31, 2020, respectively.

June 30, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $53 and $70 as of June 30,

2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $594 and $775 as of

March 31, 2021 and December 31, 2020, respectively.

June 30, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $992 and $1,123 as of

March 31, 2021 and December 31, 2020, respectively.

June 30, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $671 and $724 as of

March 31, 2021 and December 31, 2020, respectively.

June 30, 2021 and December 31, 2020, respectively.

Unsecured Notes

3 unchanged sentences

The 2024 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $75,000 of the 2026 Unsecured Notes with a fixed interest rate of 4.375%

and a maturity date of December 15, 2026.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2021

thousands, except share amounts)

On December 18, 2019, the Company closed a private offering of $75,000 of the 2026

Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026.

Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 28, 2017, the Company closed a private offering of $21,000 of the 2022 Tranche C Notes with a fixed interest rate of 4.50%

and a maturity date of December 28, 2022.

The 2026 Unsecured Notes were issued in a private

placement only to qualified institutional buyers.

On December 28, 2017, the Company closed a private offering of $21,000 of the 2022

Tranche C Notes with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes were issued in a private placement only to qualified

institutional buyers.

On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly registered 2023 Unsecured

Notes for net proceeds of $73,846.

The 2022 Tranche C Notes were issued in a private placement

only to qualified institutional buyers.

On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly registered

2023 Unsecured Notes for net proceeds of $73,846.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018.

The 2023 Unsecured Notes mature on

January 20, 2023.

On February 15, 2017, the Company closed a private offering of $100,000 of the 2022

Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

The 2023 Unsecured Notes mature

on January 20, 2023.

On February 15, 2017, the Company closed a private offering of $100,000 of the 2022 Unsecured Notes with a

fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement

only to qualified institutional buyers.

On November 8, 2016, the Company closed a private offering of $50,000 of the 2022 Unsecured

Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

On November 8, 2016, the Company closed a private offering of $50,000 of the 2022 Unsecured Notes with a fixed

interest rate of 4.40% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement only to

qualified institutional buyers.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

thousands, except share amounts)

The 2022 Unsecured Notes were issued in a private placement only to qualified institutional

Revolving and Term Loan Facilities

1 unchanged sentence

secured credit agreement (the Credit Facility).

The Credit Facility is composed of $470,000 of revolving credit and $75,000 of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility is currently composed of $545,000 of revolving credit and $75,000 of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a

range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility has no LIBOR floor requirement.

The Credit Facility matures in August 2024 and includes ratable

amortization in the final year.

The Credit Facility matures in August 2024 and

includes ratable amortization in the final year.

The Credit Facility may be increased up to $800,000 with additional new lenders or an increase in commitments from current lenders.

The Credit Facility contains certain customary affirmative and negative covenants and

events of default.

The Credit Facility contains certain customary affirmative and

negative covenants and events of default.

In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

At March 31, 2021,

outstanding USD equivalent borrowings under the Credit Facility totaled $235,000, composed of $160,000 of revolving credit and $75,000 of term loans.

June 30, 2021, outstanding USD equivalent borrowings under the Credit Facility totaled $194,000, composed of $119,000 of revolving credit and $75,000 of term loans.

On September 26, 2018, NEFPASS SPV LLC, a newly formed wholly-owned subsidiary of NEFPASS LLC, as borrower entered into a $50,000 senior

2 unchanged sentences

The NEFPASS Facility is scheduled to mature on September 26, 2023.

The NEFPASS Facility generally bears interest at a rate of LIBOR plus 2.15%.

NEFPASS and NEFPASS SPV LLC, as applicable, have made certain customary representations and warranties, and are required to comply with various

covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities.

NEFPASS Facility generally bears interest at a rate of LIBOR plus 2.15%.

NEFPASS and NEFPASS SPV LLC, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage

restrictions, reporting requirements and other customary requirements for similar credit facilities.

The NEFPASS Facility also includes usual and customary events of default for credit facilities of this nature.

were $30,000 of borrowings outstanding as of March 31, 2021.

Certain covenants on our issued debt may restrict our business

activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

There were $30,000 of borrowings

outstanding as of June 30, 2021.

Certain covenants on our issued debt may restrict our business activities, including limitations

that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

The Company has made an election to apply the fair value option of accounting to the 2022 Unsecured Notes, in accordance with ASC 825-10.

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reported in the Consolidated Statement of Operations.

The average annualized interest cost for all borrowings for the three months ended

March 31, 2021 and the year ended December 31, 2020 was 3.68% and 4.11%, respectively.

The average annualized interest cost for all borrowings for the six months ended

June 30, 2021 and the year ended December 31, 2020 was 3.68% and 4.11%, respectively.

These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other prepaid expenses related to establishing and/or

amending the Credit Facility, the 2022 Unsecured Notes, the 2022 Tranche C Notes, the NEFPASS Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes, and the 2026 Unsecured Notes (collectively the Credit Facilities), if any.

maximum amounts borrowed on the Credit Facilities during the three months ended March 31, 2021 and the year ended December 31, 2020 were $715,000 and $677,000, respectively.

maximum amounts borrowed on the Credit Facilities during the six months ended June 30, 2021 and the year ended December 31, 2020 were $728,000 and $677,000, respectively.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, 2021 and 2020:

Three months ended

March 31, 2021

Three months ended

March 31, 2020

The following is a schedule of financial highlights for the six months ended June 30, 2021 and 2020:

Six months ended

June 30, 2021

June 30, 2020

Per Share Data:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

12 unchanged sentences

As of March 11, 2021, total commitments to the revolving credit facility are $280,000.

As of March 31, 2021 SLR

As of June 30, 2021 SLR

Credit had 25 funded commitments to 21 different issuers with a total par value of approximately $294,949 on total assets of $392,856.

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of approximately $404,115 on total assets of $433,914.

As of March 31, 2021 and December 31, 2020, the largest loan outstanding totaled $32,782 and $45,000, respectively.

For the same periods, the average exposure per issuer was $14,351

and $16,838, respectively.

SLR Credits credit facility, which is non-recourse to the Company, had approximately $140,495 and $183,896 of borrowings outstanding at March 31, 2021 and

As of June 30, 2021 and December 31, 2020, the largest loan outstanding totaled $32,095 and $45,000, respectively.

For the same periods, the average exposure per issuer was $14,045 and

$16,838, respectively.

SLR Credits credit facility, which is non-recourse to the Company, had approximately $140,218 and $183,896 of borrowings outstanding at June 30, 2021 and

December 31, 2020, respectively.

For the three months ended March 31, 2021 and 2020, SLR Credit had net income of $4,953 and $1,901, respectively, on gross income of $9,676 and $11,505, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

For the three months ended June 30, 2021 and 2020, SLR Credit had net income of $2,111 and $8,350, respectively, on gross income of $8,054 and $12,137, respectively.

For the six months ended

June 30, 2021 and 2020, SLR Credit had net income of $7,052 and $10,250, respectively, on gross income of $17,731 and $23,642, respectively.

Due to timing and non-cash items, there may be material

differences between GAAP net income and cash available for distributions.

Commitments and Contingencies

The Company had unfunded debt and equity commitments to various revolving and delayed-draw term

loans as well as to SLR Credit.

The total amount of these unfunded commitments as of March 31, 2021 and December 31, 2020 is $122,259 and $126,180, respectively, comprised of the following:

The Company had unfunded debt and equity commitments to various revolving and delayed-draw term loans as well as to SLR Credit.

amount of these unfunded commitments as of June 30, 2021 and December 31, 2020 is $130,770 and $126,180, respectively, comprised of the following:

June 30, 2021

SLR Credit Solutions*

Smile Doctors LLC

High Street Insurance Partners, Inc.

CC SAG Holdings Corp.

(Spectrum Automotive)

SOC Telemed, Inc.

One Touch Direct, LLC

Kindred Biosciences, Inc

Rezolute, Inc.

Neuronetics, Inc.

SOC Telemed, Inc

PQ Bypass, Inc

SLR Equipment Finance

Atria Wealth Solutions, Inc.

Cerapedics, Inc.

Foundation Consumer Brands, LLC

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Pinnacle Treatment Centers, Inc.

Delphinus Medical Technologies, Inc.

SunMed Group Holdings, LLC

Soleo Health Holdings, Inc.

Cardiva Medical, Inc.

Kindred Biosciences, Inc.

PQ Bypass, Inc.

Centrexion Therapeutics, Inc.

Delphinus Medical Technologies, Inc.

Total Commitments

The Company controls the funding of the SLR Credit Solutions commitment and may cancel it at its

The Company controls the funding of the SLR Credit Solutions commitment and may cancel it at its discretion.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

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Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the

As of March 31, 2021 and December 31, 2020, the Company had sufficient cash available and/or liquid securities available to fund its commitments.

As of June 30, 2021 and December 31, 2020, the Company had sufficient cash available and/or liquid securities available to fund its commitments.

SLR Equipment Finance

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At July 31, 2017, SLR Equipment also had two securitizations outstanding, with an issued note balance of $94,587, which were later redeemed in 2018.

As of March 31, 2021, SLR Equipment had 132 funded equipment-backed leases and loans to 59 different customers with a total net

investment in leases and loans of approximately $188,414 on total assets of $262,284.

As of December 31, 2020, NEF had 138 funded equipment-backed leases and loans to 61 different customers with a total net investment in leases and loans of

approximately $188,448 on total assets of $263,443.

As of March 31, 2021 and December 31, 2020, the largest position outstanding totaled $19,121 and $25,103, respectively.

For the same periods, the average exposure per customer was

$3,193 and $3,089, respectively.

SLR Equipments credit facility, which is non-recourse to the Company, had approximately $101,658 and $100,569 of borrowings outstanding at March 31, 2021 and

As of June 30, 2021, SLR Equipment had 129 funded equipment-backed leases and loans to 58 different customers with a total net investment

in leases and loans of approximately $183,871 on total assets of $251,622.

As of December 31, 2020, NEF had 138 funded equipment-backed leases and loans to 61 different customers with a total net investment in leases and loans of approximately

$188,448 on total assets of $263,443.

As of June 30, 2021 and December 31, 2020, the largest position outstanding totaled $19,244 and $25,103, respectively.

For the same periods, the average exposure per customer was $3,170 and

$3,089, respectively.

SLR Equipments credit facility, which is non-recourse to the Company, had approximately $90,589 and $100,569 of borrowings outstanding at June 30, 2021 and

December 31, 2020, respectively.

For the three months ended March 31, 2021 and March 31, 2020, SLR Equipment had net income (loss) of ($318) and $427, respectively, on gross income of $4,894 and $5,914, respectively.

Due to timing and

non-cash items, there may be material differences between GAAP net income and cash available for distributions.

For the three months ended June 30, 2021 and June 30, 2020, SLR Equipment had net loss of $1,677 and $2,354, respectively, on gross income of $5,740 and $5,419, respectively.

For the six months ended

June 30, 2021 and June 30, 2020, SLR Equipment had net loss of $1,995 and $1,927, respectively, on gross income of $10,634 and $11,333, respectively.

Due to timing and non-cash items, there may be

material differences between GAAP net income and cash available for distributions.

Capital Share Transactions

of March 31, 2021 and March 31, 2020, 200,000,000 shares of $0.01 par value capital stock were authorized.

There were no

transactions in capital stock during the three months ended March 31, 2021 and March 31, 2020.

As of June 30, 2021 and June 30, 2020, 200,000,000 shares of $0.01 par value capital stock were authorized.

There were no transactions in capital stock during the three and six months ended June 30, 2021 and June 30, 2020.

Kingsbridge Holdings, LLC

On November 3, 2020, the Company acquired 87.5% of Kingsbridge Holdings, LLC (KBH) through KBH Topco LLC (KBHT), a

newly formed Delaware corporation.

KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S.

November 3, 2020, the Company acquired 87.5% of Kingsbridge Holdings, LLC (KBH) through KBH Topco LLC (KBHT), a newly formed Delaware corporation.

KBH is a residual focused independent

mid-ticket lessor of equipment primarily to U.S.

investment grade companies.

The Company invested $216,596 to effect the

transaction, of which $136,596 was invested to acquire 87.5% of KBHTs equity and $80,000 in KBHs debt.

The Company invested $216,596 to effect the transaction, of which $136,596 was invested to acquire 87.5% of KBHTs equity

and $80,000 in KBHs debt.

The existing management team of KBH committed to continue to lead KBH after the transaction.

Post the transaction, the

Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHTs equity.

As of March 31, 2021,

KBH had total assets of $748,444.

Recourse debt outstanding for KBH totaled $220,706 as of March 31, 2021.

Non-recourse debt outstanding for KBH totaled $345,260 at March 31, 2021.

December 31, 2020, KBH had total assets of $744,684.

KBH also had recourse debt outstanding of $219,044 as well as non-recourse debt outstanding of $335,899 at December 31, 2020.

For the three

months ended March 31, 2021, KBH had net income of $2,267 on gross income of $58,146.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available

for distributions.

As such, and subject to fluctuations in KBHs funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBH will be able to maintain consistent dividend payments to

Post the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5%

of KBHTs equity.

As of June 30, 2021, KBHT had total assets of $749,141.

Recourse debt outstanding for KBHT totaled $201,002 as

of June 30, 2021.

Non-recourse debt outstanding for KBHT totaled $352,429 at June 30, 2021.

As of December 31, 2020, KBHT had total assets of $744,684.

KBHT also had recourse debt outstanding of

$219,044 as well as non-recourse debt outstanding of $335,899 at December 31, 2020.

For the three and six months ended June 30, 2021, KBHT had net income of $3,778 and $6,045, respectively, on

gross income of $61,423 and $119,570, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject

to fluctuations in KBHTs funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2021

June 30, 2021

thousands, except share amounts)

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financial statements were issued.

On May 5, 2021, our Board declared a quarterly distribution of $0.41 per share payable on

July 2, 2021 to holders of record as of June 23, 2021.

On August 3, 2021, our Board declared a quarterly distribution of $0.41 per share payable on

October 5, 2021 to holders of record as of September 23, 2021.

Report of Independent Registered Public Accounting Firm

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We have reviewed the consolidated statement of assets and liabilities of SLR Investment Corp.

(and subsidiaries) (the Company), formerly Solar Capital Ltd.,

including the consolidated schedule of investments, as of March 31, 2021, the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2021 and 2020, and the related

notes (collectively, the consolidated interim financial information).

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S.

(and subsidiaries) (the Company), including the consolidated

schedule of investments, as of June 30, 2021, the related consolidated statements of operations and changes in net assets, for the three-month and six-month periods ended June 30, 2021 and 2020, the related consolidated statements of cash flows

for the six-month periods ended June 30, 2021 and 2020, and the related notes (collectively, the consolidated interim financial information).

Based on our reviews, we are not aware of any material

modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S.

generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board

(United States) (PCAOB), the consolidated statement of assets and liabilities, including the consolidated schedule of investments, of the Company as of December 31, 2020, and the related consolidated statements of operations, changes in net

assets, and cash flows for the year then ended (not presented herein);

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated

statement of assets and liabilities, including the consolidated schedule of investments, of the Company as of December 31, 2020, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then

ended (not presented herein);

and in our report dated February 24, 2021, we expressed an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, as of December 31, 2020, is fairly stated, in all material respects, in

relation to the consolidated statement of assets and liabilities, including the consolidated schedule of investments, from which it has been derived.

In our opinion, the information set

forth in the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of

assets and liabilities, including the consolidated schedule of investments, from which it has been derived.

Basis for Review Results

This consolidated interim

financial information is the responsibility of the Companys management.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities

laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the

standards of the PCAOB.

A review of consolidated 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.

This consolidated interim financial information is the responsibility of the Companys management.

We are a public accounting firm registered with the

PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB.

A review of consolidated 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.

New York, New York

Managements Discussion and Analysis of Financial Condition and Results of Operations

August 3, 2021

Managements Discussion and Analysis of Financial Condition

and Results of Operations

The information contained in this section should be read in conjunction with our consolidated financial

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companies located in select countries outside of the United States.

As of March 31, 2021, the Investment Adviser has directly

As of June 30, 2021, the Investment Adviser has directly

invested approximately $10.8 billion in more than 430 different portfolio companies since 2006.

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Recent Developments

On May 5, 2021,

our Board declared a quarterly distribution of $0.41 per share payable on July 2, 2021 to holders of record as of June 23, 2021.

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 and the competitive environment for the types of investments we make.

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).

Qualifying assets

include investments in eligible portfolio companies. The definition of eligible portfolio company includes certain public companies that do not have any securities listed on a national securities exchange and companies whose

securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

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 sell.

Our debt investments generally have a stated term of three to seven years and typically bear interest at a floating rate usually determined on the basis of a benchmark London interbank offered rate (LIBOR),

commercial paper rate, or the prime rate.

2021, our Board declared a quarterly distribution of $0.41 per share payable on October 5, 2021 to holders of record as of September 23, 2021.

The global outbreak of the COVID-19 pandemic, and the related effect on the U.S.

and global economies,

has continued to have adverse consequences for the business operations of some of the Companys portfolio companies and, as a result, has had adverse effects on the Companys operations.

The ultimate economic fallout from the pandemic, and

the long-term impact on economies, markets, industries and individual issuers, including the Company, remain uncertain.

The operational and financial performance of the issuers of securities in which the Company invests depends on future

developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Companys investments and negatively impact the Companys performance.

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 and the competitive environment for the types of investments we make.

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).

Qualifying assets include investments in eligible portfolio companies. The definition of eligible portfolio company includes

certain public companies that do not have any securities listed on a national securities exchange and companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

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 sell.

Our debt investments generally have a stated term of three to seven years and typically bear interest at a

floating rate usually determined on the basis of a benchmark London interbank offered rate (LIBOR), commercial paper rate, or the prime rate.

Interest on our debt investments is generally payable monthly or quarterly but may be bi-monthly or semi-annually.

In addition, our investments may provide payment-in-kind (PIK) interest.

Such amounts of accrued PIK interest 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.

investment professionals of the investment adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable

to such services, are provided and paid for by SLR Capital Partners.

We bear all other costs and expenses of our operations and transactions, including (without limitation):

Such amounts of

accrued PIK interest 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.

All investment professionals of the investment adviser and their respective staffs, when and to the extent engaged in providing investment

advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by SLR Capital Partners.

We bear all other costs and expenses of our operations and

transactions, including (without limitation):

the cost of our organization and public offerings;

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Portfolio and Investment Activity

During the three months ended March 31, 2021, we invested approximately $98.7 million across 15 portfolio companies.

During the three months ended June 30, 2021, we invested approximately $69.0 million across 12 portfolio companies.

This compares to

investing approximately $79.6 million in 15 portfolio companies for the three months ended March 31, 2020.

Investments sold, prepaid or repaid during the three months ended March 31, 2021 totaled approximately $67.0 million

versus approximately $200.3 million for the three months ended March 31, 2020.

At March 31, 2021, our portfolio consisted

of 105 portfolio companies and was invested 21.1% in cash flow senior secured loans, 25.8% in asset-based senior secured loans / SLR Credit Solutions (SLR Credit), 13.7% in Kingsbridge Holdings, LLC (KBH), 18.2% in equipment

senior secured financings / SLR Equipment Finance (SLR Equipment), and 21.2% in life science senior secured loans, in each case, measured at fair value, versus 105 portfolio companies and was invested 23.3% in cash flow senior secured

loans, 31.8% in asset-based senior secured loans / SLR Credit, 22.5% in equipment senior secured financings / SLR Equipment, and 22.4% in life science senior secured loans, in each case, measured at fair value, at March 31, 2020.

At March 31, 2021, 72.8% or $1.14 billion of our income producing investment

portfolio * is floating rate and 27.2% or $426.3 million is fixed rate, measured at fair value.

At March 31, 2020, 76.5% or $969.7 million of our income producing investment

investing approximately $61.2 million in 14 portfolio companies for the three months ended June 30, 2020.

Investments sold, prepaid or repaid during the three months ended June 30, 2021 totaled approximately $149.7 million versus

approximately $28.9 million for the three months ended June 30, 2020.

At June 30, 2021, our portfolio consisted of 101 portfolio companies and was invested

23.0% in cash flow senior secured loans, 25.5% in asset-based senior secured loans / SLR Credit Solutions (SLR Credit), 14.6% in Kingsbridge Holdings, LLC (KBH), 18.7% in equipment senior secured financings / SLR Equipment

Finance (SLR Equipment), and 18.2% in life science senior secured loans, in each case, measured at fair value, versus 108 portfolio companies and was invested 23.0% in cash flow senior secured loans, 31.4% in asset-based senior secured

loans / SLR Credit, 22.2% in equipment senior secured financings / SLR Equipment, and 23.4% in life science senior secured loans, in each case, measured at fair value, at June 30, 2020.

At June 30, 2021, 71.6% or $1.07 billion of our income producing investment

portfolio * is floating rate and 28.4% or $422.6 million is fixed rate, measured at fair value.

As of March 31, 2021 and 2020, we had zero and one issuer, respectively, on non-accrual status.

Since inception through March 31, 2021, the Company and its predecessor

companies have invested approximately $6.8 billion in more than 300 portfolio companies.

At June 30, 2020, 76.7% or $1.04 billion of our income producing investment portfolio * is floating rate and 23.3% or $314.6 million is fixed rate, measured at fair value.

As of June 30, 2021 and 2020, we had no issuers on non-accrual

Since inception through June 30, 2021, the Company and its predecessor companies have invested approximately

$6.9 billion in more than 305 portfolio companies.

Over the same period, the Company has completed transactions with more than 150 different financial sponsors.

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Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit.

On September 30,

2016, Crystal Capital Financial Holdings LLC was dissolved.

On September 30, 2016, Crystal Capital

Financial Holdings LLC was dissolved.

As of March 11, 2021, total commitments to the revolving credit facility are $280 million.

As of March 31, 2021, SLR Credit had 30 funded commitments to 24 different issuers with a total par value of approximately

As of June 30, 2021, SLR Credit had 25 funded commitments to 21 different issuers with a total par value of approximately

$294.9 million on total assets of $392.9 million.

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$433.9 million.

As of March 31, 2021 and December 31, 2020, the largest loan outstanding totaled $32.8 million and $45.0 million, respectively.

As of June 30, 2021 and December 31, 2020, the largest loan outstanding totaled $32.1 million and $45.0 million, respectively.

For the same periods, the average exposure per issuer was $14.0 million and

1 unchanged sentence

SLR Credits credit facility, which is non-recourse to the Company, had approximately $140.2 million and $183.9 million of borrowings outstanding at

March 31, 2021 and December 31, 2020, respectively.

For the three months ended March 31, 2021 and 2020, SLR Credit had net income of $5.0 million and $1.9 million, respectively, on gross income of $9.7 million and

June 30, 2021 and December 31, 2020, respectively.

For the three months ended June 30, 2021 and 2020, SLR Credit had net income of $2.1 million and $8.4 million, respectively, on gross income of $8.1 million and

$12.1 million, respectively.

For the six months ended June 30, 2021 and 2020, SLR Credit had net income of $7.1 million and $10.3 million, respectively, on gross income of $17.7 million and $23.6 million,

respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in

SLR Credits funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.

As such, and subject to fluctuations in SLR Credits

funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.

SLR Equipment Finance

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were later redeemed in 2018.

As of March 31, 2021, SLR Equipment had 132 funded equipment-backed leases and loans to 59 different

As of June 30, 2021, SLR Equipment had 129 funded equipment-backed leases and loans to 58 different

customers with a total net investment in leases and loans of approximately $183.9 million on total assets of $251.6 million.

1 unchanged sentence

customers with a total net investment in leases and loans of approximately $188.4 million on total assets of $263.4 million.

As of March 31, 2021 and December 31, 2020, the largest position outstanding totaled $19.1 million

As of June 30, 2021 and December 31, 2020, the largest position outstanding totaled $19.2 million

and $25.1 million, respectively.

For the same periods, the average exposure per customer was $3.2 million and $3.1 million, respectively.

SLR Equipments credit facility, which is

non-recourse to the Company, had approximately $101.7 million and $100.6 million of borrowings outstanding at March 31, 2021 and December 31, 2020, respectively.

For the three months ended

March 31, 2021 and 2020, SLR Equipment had net income (loss) of ($0.3) million and $0.4 million, respectively, on gross income of $4.9 million and $5.9 million, respectively.

Due to timing and

non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in SLR Equipments funded commitments, the timing of

originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.

For the same periods, the average exposure per customer

was $3.2 million and $3.1 million, respectively.

SLR Equipments credit facility, which is non-recourse to the Company, had

approximately $90.6 million and $100.6 million of borrowings outstanding at June 30, 2021 and December 31, 2020, respectively.

For the three months ended June 30, 2021 and 2020, SLR Equipment had net loss of

$1.7 million and $2.4 million, respectively, on gross income of $5.7 million and $5.4 million, respectively.

For the six months ended June 30, 2021 and 2020, SLR Equipment had net loss of $2.0 million and

$1.9 million, respectively, on gross income of $10.6 million and $11.3 million, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and

cash available for distributions.

As such, and subject to fluctuations in SLR Equipments funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain

consistent dividend payments to us.

Kingsbridge Holdings, LLC

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Post the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHTs equity.

As of March 31, 2021, KBH had total assets of $748.4 million.

Recourse debt outstanding for KBH totaled $220.7 million at

March 31, 2021.

Non-recourse debt outstanding for KBH totaled $345.3 million at March 31, 2021.

As of December 31, 2020, KBH had total assets of $744.7 million.

As of June 30, 2021, KBHT had total assets of $749.1 million.

Recourse debt outstanding for KBHT totaled $201.0 million at

June 30, 2021.

Non-recourse debt outstanding for KBHT totaled $352.4 million at June 30, 2021.

As of December 31, 2020, KBHT had total assets of $744.7 million.

KBHT also had

recourse debt outstanding of $219.0 million as well as non-recourse debt outstanding of $335.9 million at December 31, 2020.

For the three months ended March 31, 2021, KBH had net

income of $2.3 million, on gross income of $58.1 million.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

such, and subject to fluctuations in KBHs funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBH will be able to maintain consistent dividend payments to us.

For the three and six months ended June 30, 2021, KBHT had

net income of $3.8 million and $6.0 million, respectively, on gross income of $61.4 million and $119.6 million, respectively.

Due to timing and non-cash items, there may be material

differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in KBHTs funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT

will be able to maintain consistent dividend payments to us.

Critical Accounting Policies

preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and

liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported.

Actual results could materially differ from those estimates.

We have identified the following items as critical accounting

Within the context of these critical accounting policies and disclosed subsequent events herein, we are not currently aware of any other reasonably likely events or circumstances that would result in materially different amounts being

Valuation of Portfolio Investments

We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent with GAAP, and the 1940

The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and

assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported.

Actual results could

materially differ from those estimates.

We have identified the following items as critical accounting policies.

Within the context of these critical accounting policies and disclosed subsequent events herein, we are not currently aware of any other

reasonably likely events or circumstances that would result in materially different amounts being reported.

Valuation of Portfolio

We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent

with GAAP, and the 1940 Act.

Our valuation procedures are set forth in more detail below:

Under procedures established by our board of directors (the

Board), we value investments, including certain senior secured debt, subordinated 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 or a primary market dealer or other independent pricing service).

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 may

utilize independent third-party valuation firms to assist us in determining the fair value of material assets.

Under procedures established by our board of

directors (the Board), we value investments, including certain senior secured debt, subordinated 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 or a 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 may utilize independent third-party valuation firms to assist us in determining the fair value of material assets.

Accordingly, such investments go through our multi-step valuation process as described below.

In each case, independent valuation firms

consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations.

Debt investments with maturities of 60 days or less shall each be valued at cost plus accreted discount, or minus

amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value as determined in good faith

by or under the direction of our Board.

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.

Such determination of

fair values involves 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 has approved a multi-step valuation process each quarter, as described below:

In each case,

independent valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations.

Debt investments with maturities of 60 days or less shall each be valued at cost plus

accreted discount, or minus amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value

as determined in good faith by or under the direction of our Board.

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

Such determination of fair values involves 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 has approved a multi-step valuation process each quarter, as described below:

our quarterly valuation process begins with each portfolio company or investment being initially valued by the

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based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee.

Investments in all asset classes are valued utilizing a market approach, an income approach,

or both approaches, as appropriate.

However, in accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946, may be valued using net asset value as a

practical expedient for fair value.

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

approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted).

Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate.

accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946, may be valued using net asset value as a practical expedient for fair value.

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 approaches 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, call protection provisions, the nature and realizable value of any collateral, the portfolio companys 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 available, broker quotations

and/or quotations provided by pricing services are considered as an input in the valuation process.

For the three months ended March 31, 2021, there has been no change to the Companys valuation approaches or techniques and the nature of

the related inputs considered in the valuation process.

Accounting Standards Codification (ASC) Topic 820 classifies the

inputs used to measure these fair values into the following hierarchy:

Quoted prices in active markets

for identical assets or liabilities, accessible by the Company at the measurement date.

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.

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, call protection

provisions, the nature and realizable value of any collateral, the portfolio companys 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 available, broker quotations and/or quotations provided by pricing services are considered as an

input in the valuation process.

For the six months ended June 30, 2021, there has been no change to the Companys valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

Accounting Standards Codification (ASC) Topic 820 classifies the inputs used to measure these fair values into the following

Unadjusted quoted prices in active markets for identical assets or liabilities, accessible

by the Company at the measurement date.

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.

Unobservable inputs for the asset or liability.

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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 is reversed from the related receivable through interest or dividend income, respectively.

The Company does not reverse previously

capitalized PIK interest or dividends.

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 is 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 again believes that PIK is expected to be realized.

PIK investments on non-accrual status are restored to accrual status if the

Company again believes that PIK is expected to be realized.

Loan origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method.

Upon the prepayment of a

loan, any unamortized loan origination fees are recorded as interest income.

Upon the prepayment of a loan, any

unamortized loan origination fees are recorded as interest income.

We record prepayment premiums on loans and other investments as interest income when we receive such amounts.

Capital structuring fees are recorded as other income when

The typically higher yields and interest rates on PIK securities, to the extent we invested,

reflects the payment deferral and increased credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans.

PIK securities may have unreliable valuations because their

continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral.

PIK interest has the effect of generating investment income and increasing the incentive fees payable at a

compounding rate.

In addition, the deferral of PIK interest also increases the loan-to-value ratio at a compounding rate.

PIK securities create the risk that incentive

fees will be paid to the Investment Adviser based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees.

the three months ended March 31, 2021 and 2020, capitalized PIK income totaled $1.7 million and $0.2 million, respectively.

Realized Gain or Loss and Net Change in Unrealized Gain or Loss

We generally measure realized gain or loss by the difference

between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized origination or commitment fees and

prepayment penalties.

The net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gain or loss, when gains or losses are realized.

Gains or losses on investments are calculated by using the specific identification method.

SLR Investment Corp., a U.S.

Capital structuring fees are recorded as other income when earned.

The typically higher yields and interest rates on PIK securities, to the extent we invested, reflects the payment deferral and increased

credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans.

PIK securities may have unreliable valuations because their continuing accruals require continuing judgments

about the collectability of the deferred payments and the value of any associated collateral.

PIK interest has the effect of generating investment income and increasing the incentive fees payable at a compounding rate.

In addition, the deferral of

PIK interest also increases the loan-to-value ratio at a compounding rate.

PIK securities create the risk that incentive fees will be paid to the Investment Adviser

based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees.

For the three and six months ended June 30,

2021, capitalized PIK income totaled $1.6 million and $3.3 million, respectively.

For the three and six months ended June 30, 2020, capitalized PIK income totaled $1.3 million and $1.4 million, respectively.

Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss

We generally measure realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis

of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized origination or commitment fees and prepayment penalties.

The net change in unrealized gain or loss reflects the change in

portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gain or loss, when gains or losses are realized.

Gains or losses on investments are calculated by using the specific identification

Investment Corp., a U.S.

corporation, has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code.

In order to qualify for U.S.

federal income taxation as a RIC, the Company is required, among other things, to timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year.

on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a nondeductible 4% U.S.

federal income taxation as a RIC, the Company is required, among other things, to

timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year.

Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in

excess of current year distributions into the next tax year and pay a nondeductible 4% U.S.

federal excise tax on such income, as required.

To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.

Recent Accounting Pronouncements

March 2020, the FASB issued Accounting Standards Update No.

To the extent that the Company determines that its estimated current year annual taxable income will be in

excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.

Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update

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.

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 as of March 12, 2020 through December 31, 2022.

The Company is evaluating the potential impact that the

adoption of this guidance will have on the Companys financial statements.

The Company is evaluating the potential impact that the adoption of this guidance will have on the Companys

financial statements.

RESULTS OF OPERATIONS

Results comparisons are for the three months ended March 31, 2021 and March 31, 2020:

Results comparisons are for the three and six months ended June 30, 2021 and June 30, 2020:

Investment Income

For the three months

ended March 31, 2021 and 2020, gross investment income totaled $35.9 million and $32.9 million, respectively.

The increase in gross investment income for the year over year three month periods was primarily due to growth in the income

producing portfolio.

Expenses totaled $20.4 million and $17.1 million, respectively, for the three months ended March 31, 2021 and 2020, of which

For the three and six

months ended June 30, 2021, gross investment income totaled $35.6 million and $71.5 million, respectively.

For the three and six months ended June 30, 2020, gross investment income totaled $28.6 million and

$61.5 million, respectively.

The increase in gross investment income for the year over year three and six month periods was primarily due to growth in the income producing portfolio.

Expenses totaled $20.1 million and $40.5 million, respectively, for the three and six months ended June 30, 2021, of which

$10.8 million and $21.4 million, respectively, were base management fees and performance-based incentive fees and $7.2 million and $14.4 million, respectively, were interest and other credit facility expenses.

Administrative

services and other general and administrative expenses totaled $2.5 million and $2.3 million, respectively, for the three months ended March 31, 2021 and 2020.

Expenses generally consist of management and performance-based incentive

fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees, directors fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses, and other general and

administrative expenses.

services and other general and administrative expenses totaled $2.1 million and $4.7 million, respectively, for the three and six months ended June 30, 2021.

Expenses totaled $14.4 million and $31.5 million, respectively,

for the three and six months ended June 30, 2020, of which $6.0 million and $13.7 million, respectively, were base management fees and performance-based incentive fees and $6.6 million and $13.7 million, respectively, were

interest and other credit facility expenses.

Administrative services and other general and administrative expenses totaled $1.8 million and $4.1 million, respectively, for the three and six months ended June 30, 2020.

generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees, directors fees, transfer agency fees, printing and proxy expenses,

audit and tax services expenses, and other general and administrative expenses.

Interest and other credit facility expenses generally consist of interest, unused fees, agency fees and loan origination fees, if any, among others.

The increase in expenses for the three months ended March 31, 2021

versus the three months ended March 31, 2020 was primarily due to higher management and incentive fees resulting from a larger income producing investment portfolio on average.

The increase in

expenses for the three and six months ended June 30, 2021 versus the three and six months ended June 30, 2020 was primarily due to higher management and incentive fees resulting from a larger income producing investment portfolio on

Net Investment Income

The Companys net investment income totaled $15.5 million and $15.9 million, or $0.37 and $0.38, per average share,

respectively, for the three months ended March 31, 2021 and 2020.

Companys net investment income totaled $15.5 million and $31.0 million, or $0.37 and $0.73, per average share, respectively, for the three and six months ended June 30, 2021.

The Companys net investment income totaled

$14.2 million and $30.1 million, or $0.34 and $0.71, per average share, respectively, for the three and six months ended June 30, 2020.

Net Realized Gain (Loss)

The Company had investment sales and prepayments totaling approximately $67 million and $200 million, respectively, for the three

months ended March 31, 2021 and 2020.

Net realized gains (losses) over the same periods were ($0.4) million and $0.03 million, respectively.

Net realized losses for the three months ended March 31, 2021 were generally related to the

sale of our legacy investment in B.

Riley Financial, Inc.

Net realized gains for the three months ended March 31, 2020 were immaterial.

Change in Unrealized Gain (Loss)

For the three months ended March 31, 2021 and 2020, net change in unrealized gain (loss) on the

Companys assets and liabilities totaled $6.4 million and ($91.4) million, respectively.

Net unrealized gain for the three months ended March 31, 2021 is primarily due to the reversal of previously recognized depreciation in our

investment in B.

The Company had

investment sales and prepayments totaling approximately $150 million and $214 million, respectively, for the three and six months ended June 30, 2021.

Net realized gains over the same periods were $0.6 million and

$0.2 million, respectively.

The Company had investment sales and prepayments totaling approximately $29 million and $229 million, respectively, for the three and six months ended June 30, 2020.

Net realized losses over the same

periods were $24.8 million and $24.7 million, respectively.

Net realized gains for the three months ended June 30, 2021 were generally related to the exit of our warrant position in PQ Bypass, Inc.

Net realized gains for the six

months ended June 30, 2021 were generally related to the exit of our warrant position in PQ Bypass, Inc., partially offset by losses from the sale of our legacy investment in B.

Riley Financial, Inc.

as well as appreciation in the value of our investments in Genmark Diagnostics, Inc., SLR Credit Solutions and Senseonics Holdings, Inc., among others, partially offset by the reversal of previously recognized

appreciation in our investment in Cardiva Medical, Inc.

as well as depreciation in the value of our investment in SOAGG, LLC, among others.

Net unrealized loss for the three months ended March 31, 2020 is primarily due to depreciation in the

value of our investments in SLR Credit Solutions, SLR Equipment Finance, IHS Intermediate, Inc.

and Rug Doctor, among others, partially offset by depreciation on our 2022 Unsecured Notes.

Net Increase (Decrease) in Net Assets From Operations

For the three months ended March 31, 2021 and 2020, the Company had a net increase (decrease) in net assets resulting from operations of

$21.5 million and ($75.5) million, respectively.

Net realized losses for the three and six

month periods ended June 30, 2020 were primarily related to the exit of our investment in IHS Intermediate, Inc.

Net Change in Unrealized Gain

For the three and six months ended June 30, 2021, net change in unrealized gain on the Companys assets and

liabilities totaled $2.5 million and $8.9 million, respectively.

For the three and six months ended June 30, 2020, net change in unrealized gain (loss) on the Companys assets and liabilities totaled $64.6 million and

($26.7) million, respectively.

Net unrealized gain for the three months ended June 30, 2021 is primarily due to appreciation in the value of our investments in PhyMed Management LLC, KBH Topco, LLC and Foundation Brands, LLC, among others,

partially offset by the reversal of previously recognized appreciation in our investment in Genmark Diagnostics, Inc., as well as depreciation in the value of our investment in American Teleconferencing Services, Ltd.

and SOAGG, LLC, among others.

Net unrealized gain for the six months ended June 30, 2021 was primarily due to appreciation in the value our investments in PhyMed Management LLC, Senseonics Holdings, Inc.

and KBH Topco, LLC, among others, partially offset by the reversal of

previously recognized appreciation in our investment in Genmark Diagnostics, Inc., as well as depreciation in the value of our investment in American Teleconferencing Services, Ltd.

and SOAGG, LLC, among others.

Net unrealized loss for the three

months ended June 30, 2020 is primarily due to depreciation in the value of our investments in SLR Credit Solutions, SLR Equipment Finance, IHS Intermediate, Inc.

and Rug Doctor, among others, partially offset by depreciation on our 2022

Unsecured Notes.

Net unrealized gain for the three months ended June 30, 2020 is primarily due to the reversal of previously recognized unrealized depreciation in the value of our investment in IHS Intermediate, Inc., as well as appreciation in

the value of our investments in Crystal Financial LLC, NEF Holdings LLC, Bishop Lifting Products, Inc.

and Kore Wireless Group, Inc., among others, partially offset by appreciation on our 2022 Unsecured Notes.

Net unrealized loss for the six months

ended June 30, 2020 is primarily due to depreciation in the value of our investments in NEF Holdings LLC, Crystal Financial LLC, Rug Doctor and PhyMed Management LLC, among others, partially offset by the reversal of previously recognized

unrealized depreciation in the value of our investment in IHS Intermediate, Inc.

as well as depreciation on our 2022 Unsecured Notes.

(Decrease) in Net Assets From Operations

For the three and six months ended June 30, 2021, the Company had a net increase in net

assets resulting from operations of $18.6 million and $40.1 million, respectively.

For the same periods, earnings per average share were $0.44 and $0.95, respectively.

For the three and six months ended June 30, 2020, the Company had

a net increase (decrease) in net assets resulting from operations of $54.0 million and ($21.4) million, respectively.

For the same periods, earnings (loss) per average share were $1.28 and ($0.51), respectively.

LIQUIDITY AND CAPITAL RESOURCES

Companys liquidity and capital resources are generated and generally available through its Credit Facility, the 2022 Unsecured Notes, the 2022 Tranche C Notes, the NEFPASS Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes and the

2026 Unsecured Notes (collectively the Credit Facilities), through cash flows from operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and periodic follow-on equity and/or debt offerings.

As of March 31, 2021, we had a total of $405.0 million of unused borrowing capacity under the Credit Facilities, subject to borrowing base limits.

We may from time to time issue equity and/or debt securities in either public or private offerings.

The issuance of such securities will

depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful.

The primary uses of existing funds and any funds raised in the future is expected to be for

investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes.

The Companys liquidity and capital resources are generated and generally available through its Credit Facility, the 2022 Unsecured Notes,

the 2022 Tranche C Notes, the NEFPASS Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes and the 2026 Unsecured Notes (collectively the Credit Facilities), through cash flows from operations, investment sales, prepayments of

senior and subordinated loans, income earned on investments and cash equivalents, and periodic follow-on equity and/or debt offerings.

As of June 30, 2021, we had a total of $446.0 million of unused

borrowing capacity under the Credit Facilities, subject to borrowing base limits.

We may from time to time issue equity and/or debt

securities in either public or private offerings.

The issuance of such securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful.

uses of existing funds and any funds raised in the future is expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes.

On February 12, 2020, a new lender to the Company executed a commitment increase to our Credit Facility providing for an additional

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secured credit agreement (the Credit Facility).

The Credit Facility is composed of $470 million of revolving credit and $75 million of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate

plus a range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility was originally composed of $470 million of revolving credit and $75 million of term loans.

Borrowings generally bear interest at a rate per annum equal to the

base rate plus a range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility has no LIBOR floor requirement.

The Credit Facility matures in August 2024

and includes ratable amortization in the final year.

On December 28, 2017, the Company closed a private offering of $21 million

of the 2022 Tranche C Notes with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

The Credit Facility matures in

August 2024 and includes ratable amortization in the final year.

On December 28, 2017, the Company closed a private offering of

$21 million of the 2022 Tranche C Notes with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes

were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of

publicly registered 2023 Unsecured Notes for net proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018.

The 2022 Tranche C Notes were

issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate

principal amount of publicly registered 2023 Unsecured Notes for net proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on

January 20, 2018.

The 2023 Unsecured Notes mature on January 20, 2023.

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We held approximately $425 million in cash equivalents as of

March 31, 2021.

June 30, 2021.

Unsecured Notes

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Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes were issued in a private placement only to qualified

institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of publicly registered 2023

Unsecured Notes for net proceeds of $73.8 million.

The 2022 Tranche C Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of publicly registered 2023 Unsecured Notes for net

proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018.

The 2023 Unsecured Notes

mature on January 20, 2023.

On February 15, 2017, the Company closed a private offering of

$100 million of the 2022 Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

The 2023 Unsecured Notes mature on

January 20, 2023.

On February 15, 2017, the Company closed a private offering of $100 million of the 2022 Unsecured Notes

with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were

issued in a private placement only to qualified institutional buyers.

On November 8, 2016, the Company closed a private offering of

$50 million of the 2022 Unsecured Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

On November 8, 2016, the Company closed a private offering of $50 million of the 2022 Unsecured Notes

with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were

issued in a private placement only to qualified institutional buyers.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

Revolving & Term Loan Facilities

9 unchanged sentences

The Credit Facility contains certain customary affirmative and negative

covenants and events of

In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset

coverage ratio.

At March 31, 2021, outstanding USD equivalent borrowings under the Credit Facility totaled $235.0 million, composed of $160.0 million of revolving credit and $75.0 million of term loans.

covenants and events of default.

In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

2021, outstanding USD equivalent borrowings under the Credit Facility totaled $194.0 million, composed of $119.0 million of revolving credit and $75.0 million of term loans.

On September 26, 2018, NEFPASS SPV LLC, a newly formed wholly-owned subsidiary of NEFPASS LLC, as borrower entered into the NEFPASS

6 unchanged sentences

The NEFPASS Facility also includes usual and customary events of default for credit facilities of this nature.

There were $30.0 million of borrowings outstanding as of March 31, 2021.

There were $30.0 million of borrowings outstanding as of June 30, 2021.

Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance

additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

At March 31, 2021, the Company was in compliance with all financial and operational covenants required by our

At June 30, 2021, the Company was in compliance with all financial and operational covenants required by our

Credit Facilities.

Contractual Obligations

A summary of our significant contractual payment obligations is as follows as of March 31, 2021:

A summary of our significant contractual payment obligations is as follows as of June 30, 2021:

Payments Due by Period (in millions)

1 unchanged sentence

Unsecured senior notes

As of March 31, 2021, we had a total of $405.0 million of unused borrowing capacity under our

As of June 30, 2021, we had a total of $446.0 million of unused borrowing capacity under our

revolving credit facilities, subject to borrowing base limits.

Under the provisions of the 1940 Act, we are permitted,

as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of

senior securities.

If the value of our assets declines, we may be unable to satisfy the asset coverage test.

If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of

our indebtedness at a time when such sales may be disadvantageous.

Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities

in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities.

If the value of our

assets declines, we may be unable to satisfy the asset coverage test.

If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such

sales may be disadvantageous.

Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders.

Furthermore, as a result of issuing senior securities,

we would also be exposed to typical risks associated with leverage, including an increased risk of loss.

Furthermore, as a result of issuing senior securities, we would also be exposed to typical

risks associated with leverage, including an increased risk of loss.

Senior Securities

Information about our senior securities is shown in the following table (in thousands) as of the quarter ended March 31, 2021

and each year ended December 31 for the past ten years, unless otherwise noted.

Information about our senior securities is shown in the following table (in thousands) as of the quarter ended June 30, 2021 and each year

ended December 31 for the past ten years, unless otherwise noted.

The indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities.

2 unchanged sentences

Revolving Credit Facility

Fiscal 2021 (through March 31, 2021)

Class and Year

Outstanding(1)

Fiscal 2021 (through June 30, 2021)

2022 Unsecured Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

2022 Tranche C Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

2023 Unsecured Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

2024 Unsecured Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

2026 Unsecured Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

2042 Unsecured Notes

Class and Year

Outstanding(1)

Senior Secured Notes

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

NEFPASS Facility

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

SSLP Facility

Total Senior Securities

Fiscal 2021 (through March 31, 2021)

Fiscal 2021 (through June 30, 2021)

Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented.

4 unchanged sentences

In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period.

As of March 31,

As of June 30,

2021, asset coverage was 228.0%.

9 unchanged sentences

Payments under the

Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a two-part incentive fee.

Payments under the Administration Agreement are equal to an amount based

upon our allocable portion of the Administrators overhead in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial

officer and chief compliance officer and their respective staffs.

Either party may terminate each of the Advisory Agreement and administration agreement without penalty upon 60 days written notice to the other.

See note 3 to our

Consolidated Financial Statements.

Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a two-part

incentive fee.

Payments under the Administration Agreement are equal to an amount based upon our allocable portion of the Administrators overhead in performing its obligations under

the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial officer and chief compliance officer and their respective staffs.

Either party may terminate each of the

Advisory Agreement and administration agreement without penalty upon 60 days written notice to the other.

See note 3 to our Consolidated Financial Statements.

On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement.

NEFCORP LLC was engaged to provide NEFPASS LLC with administrative services related to the loans and capital leases held by NEFPASS LLC.

NEFCORP LLC was engaged to provide NEFPASS

LLC with administrative services related to the loans and capital leases held by NEFPASS LLC.

NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC.

6 unchanged sentences

Accordingly, the Company had the following unfunded capital commitments at

March 31, 2021 and December 31, 2020, respectively:

June 30, 2021 and December 31, 2020, respectively:

June 30, 2021

(in millions)

1 unchanged sentence

Smile Doctors LLC

High Street Insurance Partners, Inc

CC SAG Holdings Corp.

(Spectrum Automotive)

SOC Telemed, Inc.

One Touch Direct, LLC

Kindred Biosciences, Inc

Rezolute, Inc.

Neuronetics, Inc.

SOC Telemed, Inc

PQ Bypass, Inc

SLR Equipment Finance

Atria Wealth Solutions, Inc.

Cerapedics, Inc.

Foundation Consumer Brands, LLC

2 unchanged sentences

Pinnacle Treatment Centers, Inc.

Delphinus Medical Technologies, Inc

SunMed Group Holdings, LLC

Soleo Health Holdings, Inc.

Cardiva Medical, Inc.

Kindred Biosciences, Inc.

PQ Bypass, Inc.

Centrexion Therapeutics, Inc.

Delphinus Medical Technologies, Inc.

Total Commitments

The Company controls the funding of the SLR Credit Solutions commitment and may cancel it at its discretion.

The credit agreements of the above loan commitments contain customary lending provisions

and/or are subject to the portfolio companys achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse

events that affect the financial condition or business outlook for the company.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the

As of March 31, 2021 and December 31, 2020, the Company had sufficient cash available and/or liquid securities available to fund its commitments.

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the

portfolio companys achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the

financial condition or business outlook for the company.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company.

June 30, 2021 and December 31, 2020, the Company had sufficient cash available and/or liquid securities available to fund its commitments.

In the normal course of its business, we invest or trade in various financial instruments and may enter into various investment activities

8 unchanged sentences

Date Declared

August 3, 2021

September 23, 2021

October 5, 2021

June 23, 2021

33 unchanged sentences

available for such distributions, we may in the future decide to retain such capital gains for investment.

We maintain an opt out dividend reinvestment plan for our common stockholders.

As a result, if we declare a distribution, then stockholders cash distributions 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 distributions.

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 business development company, we may in the future be limited in our ability to make distributions.

revolving credit facility may limit our ability to declare distributions if we default under certain provisions.

If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of

the tax benefits available to us as a regulated investment company.

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 payment-in-kind interest, 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 have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a

regulated investment company.

With respect to the distributions to stockholders, income from origination, structuring, closing and

certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders.

We maintain an opt

out dividend reinvestment plan for our common stockholders.

As a result, if we declare a distribution, then stockholders cash distributions 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 distributions.

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 business development company, we may

in the future be limited in our ability to make distributions.

Also, our revolving credit facility may limit our ability to declare distributions if we default under certain provisions.

If we do not distribute a certain percentage of our income

annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a regulated investment company.

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 payment-in-kind interest, 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 have difficulty meeting the requirement to distribute at least 90% of our

investment company taxable income to obtain tax benefits as a regulated investment company.

With respect to the distributions to

stockholders, income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders.

Related Parties

3 unchanged sentences

Gross, our Chairman, Co-Chief Executive Officer and President and Mr.

Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior

investment professionals of, and have financial and controlling interests in, the Investment Adviser.

Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are

managing members and senior investment professionals of, and have financial and controlling interests in, the Investment Adviser.

In addition, Mr.

Peteka, our Chief Financial Officer, Treasurer and Secretary serves as the Chief Financial Officer for SLR Capital Partners.

Peteka, our Chief Financial Officer,

Treasurer and Secretary serves as the Chief Financial Officer for SLR Capital Partners.

The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement.

26 unchanged sentences

Leases LLC, Kingsbridge Holdings, LLC, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL and SLR Equipment Finance.

transactions may occur in the normal course of business.

No administrative or other fees are paid to SLR Capital Partners by SLR Credit Solutions, Equipment Operating Leases LLC, Kingsbridge

Holdings, LLC, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL or SLR Equipment Finance.

In addition, we have adopted a formal

code of ethics that governs the conduct of our officers and directors.

Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

These transactions may occur in the normal course of business.

No administrative or other fees are paid to SLR Capital

Partners by SLR Credit Solutions, Equipment Operating Leases LLC, Kingsbridge Holdings, LLC, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL or SLR Equipment Finance.

In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors.

Our officers and directors also

remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements