This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Longer track record than peers, with dividend income offsetting realized losses. Illiquid investments in lower-middle-market companies, potentially constraining financial flexibility in severely adverse markets. Diversified funding sources. Elevated nonaccrual ratio compared with some larger peers. Low leverage at less than 1.5x. Higher exposure to equity investments than peers. High operating leverage due to internally managed operating structure. Loans on nonaccrual increased to 5.6% of total debt investments at cost as of March 31, 2025, up from 4.4% at year-end 2024 and 2.9% at year-end 2023. Payment-in-kind (PIK) income was more stable at 4.6%
