First Eagle Alternative Capital BDC, Inc. - Quarter Report: 2021 September (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to

Commission file number 814-00789

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware		27-0344947
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

500 Boylston St., Suite 1200, Boston, MA		02116
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 800-450-4424

Securities registered pursuant to 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	FCRD	NASDAQ Global Select Market
6.125% Senior Notes due 2023	FCRW	The New York Stock Exchange
5.0% Senior Notes due 2026	FCRX	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-Accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding at November 4, 2021 was 30,109,384.

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021

Table of Contents

	INDEX	PAGE NO.
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Statements of Assets and Liabilities as of September 30, 2021 (unaudited) and December 31, 2020	4

	Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (unaudited)	5

	Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 and 2020 (unaudited)	6

	Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited)	7

	Consolidated Schedules of Investments as of September 30, 2021 (unaudited) and December 31, 2020	8

	Notes to Consolidated Financial Statements (unaudited)	27

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	70

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	104

Item 4.	Controls and Procedures	105

PART II.	OTHER INFORMATION	106

Item 1.	Legal Proceedings	106

Item 1A.	Risk Factors	106

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	106

Item 3.	Defaults Upon Senior Securities	106

Item 4.	Mine Safety Disclosures	106

Item 5.	Other Information	106

Item 6.	Exhibits	107

SIGNATURES		108

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies or expectations, anticipated share repurchases or lack thereof, our plans and expectations about future investments, amount and timing of distributions, if any, and the future liquidity of the company. Forward-looking statements are typically identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously identified elsewhere in this filing, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

•

the introduction, withdrawal, success and timing of business initiatives and strategies;

•

changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of our assets;

•

the relative and absolute investment performance and operations of our investment adviser;

•

the impact of increased competition;

•

the impact of future acquisitions and divestitures;

•

the resolution of legal proceedings;

•

our business prospects and the prospects of our portfolio companies;

•

the impact, extent and timing of technological changes and the adequacy of intellectual property protection;

•

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or First Eagle Alternative Credit, LLC (“the Advisor”);

•

the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments;

•

our contractual arrangements and relationships with third parties;

•

any future financings by us;

•

the ability of the Advisor to attract and retain highly talented professionals;

•

fluctuations in foreign currency exchange rates;

•

the impact of changes to tax legislation and, generally, our tax position;

•

the impact of pandemics or other serious public health epidemics, such as the current novel coronavirus ("COVID-19") pandemic on our operations, our portfolio companies' business, or the global economy;

•

our ability to exit a control investment in a timely manner; and

•

the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

	September 30, 2021 (unaudited)			December 31, 2020
Assets:
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $299,645 and $250,928, respectively)	$	300,810		$	243,855
Controlled investments (cost of $149,355 and $148,373, respectively)		101,202			93,826
Non-controlled, affiliated investments (cost of $1 and $1, respectively)		1			1
Cash		9,612			7,615
Escrows and other receivables		1,605			3,508
Interest, dividends, and fees receivable		3,850			2,659
Deferred tax assets		2,211			2,222
Deferred financing costs		1,631			1,757
Prepaid expenses and other assets		575			725
Deferred offering costs		67			180
Due from affiliate		87			85
Total assets	$	421,651		$	356,433
Liabilities:
Loans payable	$	100,500		$	57,661
Notes payable ($120,607 and $111,607 face amounts, respectively, reported net of deferred financing costs of $2,897 and $1,932, respectively)		117,710			109,675
Accrued expenses and other liabilities		2,049			1,696
Deferred tax liability		1,807			1,673
Base management fees payable		1,048			—
Accrued incentive fees		—			156
Due to affiliate		2,023			228
Accrued interest and fees		201			149
Accrued administrator expenses		483			—
Total liabilities		225,821			171,238
Commitments and contingencies (Note 8)
Net Assets:
Common stock, par value $.001 per share, 100,000 common shares authorized, 30,109 and 30,109 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		30			30
Paid-in capital in excess of par		418,379			418,379
Accumulated deficit		(222,579	)		(233,214	)
Total net assets	$	195,830		$	185,195
Total liabilities and net assets	$	421,651		$	356,433
Net asset value per share	$	6.50		$	6.15

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Investment Income:
From non-controlled, non-affiliated investments:
Cash interest income	$	5,939		$	4,217		$	16,555		$	13,298
PIK interest income		128			338			376			806
Other income		397			102			818			224
From non-controlled, affiliated investments:
Other income		41			48			123			189
From controlled investments:
Cash interest income		204			2			592			(247	)
Dividend income		1,652			2,579			4,869			7,873
Other income		—			43			—			113
Total investment income		8,361			7,329			23,333			22,256
Expenses:
Interest and fees on borrowings		2,538			2,439			7,571			7,687
Base management fees		1,048			895			2,890			2,795
Incentive fees		—			—			—			(411	)
Administrator expenses		218			268			663			882
Other general and administrative expenses		391			598			1,100			1,323
Amortization of deferred financing costs		350			319			1,029			1,516
Professional fees		328			347			1,157			1,171
Directors' fees		175			191			512			543
Total expenses		5,048			5,057			14,922			15,506
Management fee waiver		—			(895	)		(879	)		(895	)
Total expenses, net of fee waivers		5,048			4,162			14,043			14,611
Income tax provision, excise and other taxes		26			(15	)		78			71
Net investment income		3,287			3,182			9,212			7,574
Realized Gain (Loss) and Change in Unrealized (Depreciation) Appreciation
Net realized gain (loss):
Non-controlled, non-affiliated investments		135			(84	)		(3,456	)		(25,589	)
Non-controlled, affiliated investments		(83	)		(19	)		(83	)		(2,493	)
Controlled investments		51			(17,387	)		51			(17,650	)
Extinguishment of debt		—			—			(543	)		—
Net realized gain (loss)		103			(17,490	)		(4,031	)		(45,732	)
Net change in unrealized (depreciation) appreciation on investments:
Non-controlled, non-affiliated investments		(1,231	)		6,375			8,238			8,119
Non-controlled, affiliated investments		—			—			—			(2	)
Controlled investments		(13	)		23,017			6,394			(6,914	)
Net change in unrealized appreciation (depreciation) on investments		(1,244	)		29,392			14,632			1,203
Net realized and unrealized gain (loss)		(1,141	)		11,902			10,601			(44,529	)
(Provision) benefit for taxes on unrealized gain/loss on investments		505			165			(145	)		192
Net increase (decrease) in net assets resulting from operations	$	2,651		$	15,249		$	19,668		$	(36,763	)
Net investment income per common share:
Basic and diluted	$	0.11		$	0.10		$	0.31		$	0.24
Net increase (decrease) in net assets resulting from operations per common share:
Basic and diluted	$	0.09		$	0.49		$	0.65		$	(1.16	)
Weighted average shares of common stock outstanding:
Basic and diluted		30,109			31,237			30,109			31,785

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets

(in thousands)

(unaudited)

	For the nine months ended September 30,
	2021			2020
Net assets at January 1,		185,195			229,455
Increase (decrease) in net assets from operations:
Net investment income	$	3,284		$	2,661
Net realized loss		(3,144	)		(1,614	)
Net change in unrealized appreciation (depreciation) on investments		9,681			(67,673	)
(Provision) benefit for taxes on unrealized gain (loss) on investments		(332	)		470
Net increase (decrease) in net assets resulting from operations		9,489			(66,156	)
Distributions to stockholders:
Distributions to stockholders from net investment income		(3,011	)		(6,233	)
Total distributions to stockholders		(3,011	)		(6,233	)
Capital share transactions:
Repurchase of common stock		—			(2,161	)
Net decrease in net assets from capital share transactions		—			(2,161	)
Total increase (decrease) in net assets		6,478			(74,550	)
Net assets at March 31,	$	191,673		$	154,905
Increase (decrease) in net assets from operations:
Net investment income		2,641			1,731
Net realized loss		(990	)		(26,628	)
Net change in unrealized appreciation on investments		6,195			39,483
Provision for taxes on unrealized gain (loss) on investments		(318	)		(443	)
Net increase in net assets resulting from operations		7,528			14,143
Distributions to stockholders:
Distributions to stockholders from net investment income		(3,011	)		(3,530	)
Total distributions to stockholders		(3,011	)		(3,530	)
Capital share transactions:
Issuance of common stock		—			30,000
Net decrease in net assets from capital share transactions		—			30,000
Total increase in net assets		4,517			40,613
Net assets at June 30,	$	196,190		$	195,518
Increase in net assets from operations:
Net investment income		3,287			3,182
Net realized gain (loss)		103			(17,490	)
Net change in unrealized (depreciation) appreciation on investments		(1,244	)		29,392
Provision for taxes on unrealized gain on investments		505			165
Net increase in net assets resulting from operations		2,651			15,249
Distributions to stockholders:
Distributions to stockholders from net investment income		(3,011	)		(3,011	)
Total distributions to stockholders		(3,011	)		(3,011	)
Capital share transactions:
Purchase of common stock in tender offer		—			(19,664	)
Net decrease in net assets from capital share transactions		—			(19,664	)
Total decrease in net assets		(360	)		(7,426	)
Net assets at September 30,	$	195,830		$	188,092
Common shares outstanding at end of period		30,109			30,109
Capital share activity:
Shares issued		—			5,618
Shares repurchased		—			341

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	For the nine months ended September 30,
	2021			2020
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	19,668		$	(36,763	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash (used in) provided by operating activities:
Net change in unrealized (appreciation) on investments		(14,632	)		(1,203	)
Net realized loss		2,431			44,339
Increase in investments due to interest paid-in-kind		(385	)		(699	)
Amortization of deferred financing costs		1,029			1,516
Accretion of discounts on investments and other fees		(1,116	)		(505	)
Changes in operating assets and liabilities:
Purchases of investments		(116,697	)		(50,319	)
Proceeds from sale and paydown of investments		66,585			54,480
(Increase) decrease in interest, dividends and fees receivable		(1,191	)		763
Decrease in escrows and other receivables		1,946			2,551
Decrease (increase) in due from affiliates		51			(31	)
Decrease in deferred tax asset		11			204
Decrease (increase) in prepaid expenses and other assets		81			(123	)
Increase (decrease) in accrued expenses and other liabilities		334			(204	)
Increase (decrease) in due to affiliates		1,795			(692	)
Increase (decrease) in accrued credit facility fees and interest		52			(226	)
Increase (decrease) in deferred tax liability		134			(395	)
Increase (decrease) in base management fees payable, net		1,048			(1,103	)
Increase in accrued administrator expenses		483			—
Decrease in accrued incentive fees payable, net		(156	)		(412	)
Net cash (used in) provided by operating activities		(38,529	)		11,178
Cash flows from financing activities:
Repurchase of common stock		—			(2,161	)
Purchase of common stock in tender offer		—			(19,664	)
Borrowings under credit facility		171,000			15,500
Repayments under credit facility		(128,161	)		(17,000	)
Issuance of shares of common stock		—			30,000
Issuance of notes		69,000			—
Repayment of notes		(60,000	)		—
Distributions paid to stockholders		(9,033	)		(12,774	)
Financing and offering costs paid		(2,280	)		(433	)
Net cash provided by (used in) financing activities		40,526			(6,532	)
Net increase in cash		1,997			4,646
Cash, beginning of period		7,615			5,890
Cash, end of period	$	9,612		$	10,536
Supplemental Disclosure of Cash Flow Information:
Cash interest paid	$	7,217		$	7,452
Income taxes paid	$	4		$	2
PIK income earned	$	376		$	806

Non-cash Operating Activities:

See Note 5 in the notes to consolidated financial statements for non-cash restructurings.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Non-controlled/non-affiliated investments

First lien senior secured debt
—142.09% of net asset value
Canada
—4.50% of net asset value
Hudson's Bay Company ULC	Retail	8.3% (LIBOR + 7.3%)	9/30/2021	9/29/2026	$	7,000	$	6,862		$	6,862
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		1,641		1,608			1,608
PDFTron Systems Inc. ^(7)(8)(9)	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/15/2026		—		(6	)		—
PDFTron Systems Inc. ^(7)(22)	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		328		322			322
				Subtotal Canada	$	8,969	$	8,786		$	8,792
Midwest
—13.57% of net asset value
Advanced Web Technologies	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026	$	2,037	$	2,002		$	2,037
Advanced Web Technologies⁽⁸⁾	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		27		21			27
Advanced Web Technologies ^(9)(22)	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		—		(14	)		—
Doxa Insurance Holdings, LLC	Insurance	7.5% (LIBOR + 6.5%)	12/4/2020	12/4/2026		1,588		1,554			1,588
Doxa Insurance Holdings, LLC ⁽⁸⁾⁽⁹⁾	Insurance	7.5% (LIBOR + 6.5%)	12/4/2020	12/4/2026		—		(7	)		—
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.5% (LIBOR + 6.5%)	12/4/2020	12/4/2026		1,921		1,879			1,921
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.5% (LIBOR + 6.5%)	8/16/2021	12/4/2026		723		681			723
1-800 Hansons, LLC	High Tech Industries	10.5% (LIBOR + 9.5%) (9.5% Cash + 1.0% PIK)	10/19/2017	10/19/2022		3,313		3,300			3,081
1-800 Hansons, LLC ⁽⁸⁾	High Tech Industries	9.5% (LIBOR + 8.5%)	10/19/2017	10/19/2022		209		208			195
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2023		5,305		5,288			5,252
IRC Opco LLC ⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2023		—		(3	)		—
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	7/1/2021	1/4/2023		998		981			988
Matilda Jane Holdings, Inc.	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	4/28/2017	5/1/2022		11,452		11,417			10,765
Matilda Jane Holdings, Inc. ⁽⁸⁾	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	10/30/2020	5/1/2022		—		—			—
				Subtotal midwest	$	27,573	$	27,307		$	26,577
Northeast
—32.31% of net asset value
3SI Security Systems	Services: Consumer	6.8% (LIBOR + 5.8%)	12/17/2019	6/16/2023	$	3,905	$	3,885		$	3,865
Aurotech, LLC	High Tech Industries	8.0% (LIBOR + 7.0%)	10/30/2020	10/30/2025		2,939		2,888			2,263
Aurotech, LLC ⁽⁸⁾⁽⁹⁾	High Tech Industries	8.0% (LIBOR + 7.0%)	10/30/2020	10/30/2025		—		(7	)		—
Cedar Services Group, LLC	Sovereign & Public Finance	7.0% (LIBOR + 6.0%)	6/9/2021	6/11/2027		2,911		2,869			2,867
Cedar Services Group, LLC ⁽⁸⁾⁽⁹⁾	Sovereign & Public Finance	7.0% (LIBOR + 6.0%)	6/9/2021	6/11/2027		—		(12	)		—
Cedar Services Group, LLC ^(9)(22)	Sovereign & Public Finance	7.0% (LIBOR + 6.0%)	6/9/2021	6/11/2027		—		(20	)		—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

Certify, Inc.

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

1,544

1,533

1,544

Certify, Inc. ⁽²³⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

211

209

211

Certify, Inc. ⁽⁸⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

ConvenientMD

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

6/9/2021

6/15/2027

5,486

5,407

5,404

ConvenientMD ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

6/9/2021

6/15/2027

—

(10

)

—

ConvenientMD ^(9)(22)

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

6/9/2021

6/15/2027

—

)

—

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

9,725

9,681

9,725

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

100

HealthDrive Corporation ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

—

)

—

HealthDrive Corporation ^(9)(22)

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

—

)

—

Marlin DTC-LS Midco 2, LLC ⁽⁸⁾⁽⁹⁾

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

—

)

—

Marlin DTC-LS Midco 2, LLC

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

3,139

3,085

3,139

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

3,761

3,694

3,761

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

—

(12

)

—

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

100

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

—

)

—

Newcleus, LLC

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

5,072

4,998

4,996

Newcleus, LLC⁽⁸⁾⁽⁹⁾

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

—

)

—

Newcleus, LLC^(9)(22)

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

—

)

—

NWN Parent Holdings LLC

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

3,299

3,268

3,266

NWN Parent Holdings LLC ⁽⁸⁾⁽⁹⁾

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

—

)

—

Quartermaster Newco, LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

3,104

3,080

3,104

Quartermaster Newco, LLC⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

—

)

—

Revlon Consumer Products Corporation ⁽¹⁴⁾

Consumer Goods: Non-Durable

7.5% (LIBOR + 5.8%)

3/8/2021

6/8/2023

2,500

2,481

2,494

smarTours, LLC

Services: Consumer

7.8% (LIBOR + 6.8%)

12/21/2020

12/31/2024

680

smarTours, LLC⁽⁸⁾

Services: Consumer

8.8% (LIBOR+ 7.8%) (1.0% Cash + 7.8% PIK)

12/21/2020

12/31/2024

2,293

Urology Management Associates, LLC

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

8/31/2018

8/31/2024

8,055

7,978

8,055

Xcel Brands, Inc.

Consumer Goods: Non-Durable

9.0% (LIBOR + 8.0%)

4/15/2021

4/9/2025

5,531

5,406

5,393

Subtotal northeast

64,373

63,542

63,278

Southeast

—18.05% of net asset value

A&R Logistics Holdings, Inc.

Transportation: Cargo

7.0% (LIBOR + 6.0%)

7/29/2021

5/3/2025

2,379

2,333

2,379

Apex Services Partners, LLC

Capital Equipment

6.3% (LIBOR + 5.3%)

2/11/2020

7/31/2025

5,300

5,263

5,247

ECL Entertainment

Hotel, Gaming, & Leisure

8.3% (LIBOR + 7.5%)

3/31/2021

3/31/2028

2,993

2,964

3,071

GC EOS Buyer, Inc. ⁽²⁷⁾

Automotive

6.8% (LIBOR + 5.8%)

3/31/2021

8/1/2025

3,969

3,943

3,971

Groundworks Operations, LLC

Construction & Building

5.8% (LIBOR + 4.8%)

7/9/2020

1/17/2026

1,932

1,902

1,932

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Groundworks Operations, LLC⁽⁸⁾⁽⁹⁾	Construction & Building	5.8% (LIBOR + 4.8%)	7/9/2020	1/17/2026		—		(2	)		—
Groundworks Operations, LLC ⁽²²⁾	Construction & Building	5.8% (LIBOR + 4.8%)	7/9/2020	1/17/2026		851		841			851
Groundworks Operations, LLC⁽²²⁾	Construction & Building	5.8% (LIBOR + 4.8%)	7/9/2020	1/17/2026		659		642			659
Groundworks Operations, LLC ⁽⁹⁾	Construction & Building	5.8% (LIBOR + 4.8%)	3/18/2021	1/17/2026		—		(33	)		—
Quorum Health Resources	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	5/28/2021	5/26/2027		5,380		5,330			5,326
Quorum Health Resources ⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	5/28/2021	5/26/2027		—		(6	)		—
SuperHero Fire Protection, LLC	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		4,304		4,241			4,240
SuperHero Fire Protection, LLC⁽⁸⁾	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		109		103			107
SuperHero Fire Protection, LLC^(9)(22)	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		—		(19	)		—
The Mulch & Soil Company, LLC	Environmental Industries	6.8% (LIBOR + 5.8%)	4/30/2021	4/30/2026		3,491		3,425			3,456
The Mulch & Soil Company, LLC ⁽⁸⁾	Environmental Industries	6.8% (LIBOR + 5.8%)	4/30/2021	4/30/2026		375		357			371
TTF Holdings, LLC (Soliant)	Healthcare & Pharmaceuticals	4.8% (LIBOR + 4.0%)	3/31/2021	3/25/2028		3,740		3,714			3,745
				Subtotal southeast	$	35,482	$	34,998		$	35,355
Southwest
—26.84% of net asset value
Allied Wireline Services, LLC ^(11)(24)	Energy: Oil & Gas	10.0% PIK	6/15/2020	6/15/2025	$	5,446	$	4,971		$	4,052
BCDI Rodeo Dental Buyer, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		5,685		5,651			5,657
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		1,615		1,606			1,607
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		1,297		1,288			1,291
Camin Cargo Control, Inc.	Services: Business	7.5% (LIBOR + 6.5%)	6/10/2021	6/4/2026		3,741		3,706			3,703
Igloo Products Corp.	Consumer Goods: Non-Durable	11.5% (LIBOR + 10.0%)	3/28/2014	3/28/2023		21,567		21,557			21,567
Owl Landfill Services, LLC	Environmental Industries	6.8% (LIBOR + 5.8%)	6/30/2021	6/30/2026		3,521		3,470			3,468
Riveron Acquisition Holdings, Inc.	Finance	6.8% (LIBOR + 5.8%)	5/22/2019	5/22/2025		8,118		8,020			8,118
TMA Buyer, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		3,145		3,098			3,097
TMA Buyer, LLC⁽⁸⁾⁽⁹⁾	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		—		(6	)		—
TMA Buyer, LLC^(9)(22)	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		—		(8	)		—
				Subtotal southwest	$	54,135	$	53,353		$	52,560
West
—46.82% of net asset value
A&A Global Imports, LLC	Containers, Packaging, & Glass	7.0% (LIBOR + 6.0%)	6/1/2021	6/1/2026	$	1,996	$	1,958		$	1,977
A&A Global Imports, LLC ⁽⁸⁾	Containers, Packaging, & Glass	7.0% (LIBOR + 6.0%)	6/1/2021	6/1/2026		163		149			162
Action Point, Inc ⁽⁸⁾	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		33		22			33
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	5/5/2021	9/30/2026		516		506			516
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		3,308		3,249			3,308
Alpine SG, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	4/9/2019	11/16/2022		1,316		1,312			1,316
Alpine SG, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	4/9/2019	11/16/2022		659		657			659
Alpine SG, LLC	High Tech Industries	7.5% (LIBOR + 6.5%)	11/2/2020	11/16/2022		1,500		1,475			1,500
Alpine SG, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	2/10/2021	11/16/2022		1,500		1,471			1,500

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Alpine SG, LLC	High Tech Industries	7.5% (LIBOR + 6.5%)	6/4/2021	11/16/2022		1,500		1,471			1,500
CC Amulet Management, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	8/31/2021	7/23/2027		5,142		5,066			5,065
CC Amulet Management, LLC⁽⁸⁾	Healthcare & Pharmaceuticals	7.3% (Prime + 4.0%)	8/31/2021	7/23/2027		256		244			252
CC Amulet Management, LLC^(9)(22)	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	8/31/2021	7/23/2027		—		(5	)		—
DTI Holdco, Inc. ⁽²⁷⁾	Services: Business	5.8% (LIBOR + 4.8%)	3/31/2021	9/29/2023		3,928		3,834			3,890
EBS Intermediate LLC	Services: Consumer	6.0% (LIBOR + 5.0%)	10/2/2018	10/2/2023		7,718		7,662			7,718
EBS Intermediate LLC ⁽⁸⁾⁽⁹⁾	Services: Consumer	6.0% (LIBOR + 5.0%)	10/2/2018	10/2/2023		—		(12	)		—
EBS Intermediate LLC	Services: Consumer	6.0% (LIBOR + 5.0%)	5/5/2021	10/2/2023		248		244			248
Evergreen Services Group, LLC	High Tech Industries	7.0% (LIBOR + 6.0%)	11/13/2018	6/6/2023		9,268		9,233			9,268
Gener8, LLC	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/14/2023		5,812		5,779			5,812
Gener8, LLC ⁽⁸⁾	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/14/2023		600		591			600
iLending LLC	Banking	7.5% (LIBOR + 6.5%)	6/21/2021	6/21/2026		4,425		4,361			4,424
iLending LLC ⁽⁸⁾⁽⁹⁾	Banking	7.5% (LIBOR + 6.5%)	6/21/2021	6/21/2026		—		(10	)		—
Ingenio, LLC	Media: Broadcasting & Subscription	8.0% (LIBOR + 7.0%)	8/3/2021	8/3/2026		5,284		5,207			5,204
Integrated Pain Management Medical Group, Inc.	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	5/28/2026		3,224		3,163			3,159
Integrated Pain Management Medical Group, Inc.^(9)(22)	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	5/28/2026		—		(7	)		—
Integrated Pain Management Medical Group, Inc.⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	5/28/2026		—		(8	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	9/18/2020	3/18/2026		2,999		2,938			2,999
Lash Opco LLC ⁽⁸⁾	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	9/18/2025		71		62			71
Lash Opco LLC	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	3/18/2026		3,057		2,988			3,057
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	12/31/2020	3/18/2026		993		970			992
MarkLogic Corporation	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		3,127		3,072			3,095
MarkLogic Corporation^(9)(22)	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		—		(5	)		—
MeriCal, LLC	Consumer Goods: Non-Durable	7.3% (LIBOR + 6.3%)	11/16/2018	11/16/2021		7,359		7,359			7,359
Socius Insurance Services, Inc.	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		2,940		2,883			2,881
Socius Insurance Services, Inc. ⁽⁸⁾⁽⁹⁾	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(10	)		—
Socius Insurance Services, Inc. ^(9)(22)	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(18	)		—
SolutionReach, Inc.	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		5,947		5,891			5,947
SolutionReach, Inc.⁽⁸⁾⁽⁹⁾	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		—		(9	)		—
SRS Acquiom Holdings LLC	Finance	7.0% (LIBOR + 6.0%)	11/8/2018	11/8/2024		4,200		4,178			4,200
Trace3, LLC	High Tech Industries	7.8% (LIBOR + 6.8%)	11/4/2020	8/3/2024		2,977		2,899			2,977
				Subtotal west	$	92,066	$	90,810		$	91,689

		Subtotal first lien senior secured debt			$	282,598	$	278,796		$	278,251

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾

Second lien debt
—3.10% of net asset value
Northeast
—3.10% of net asset value
Merchants Capital Access, LLC ⁽¹⁴⁾	Banking	11.5% (LIBOR + 10.5%)	4/20/2015	4/30/2022	$	5,500	$	5,491	$	5,500
smarTours, LLC	Services: Consumer	8.8% PIK (LIBOR + 7.8%)	12/21/2020	12/31/2024		1,386		635		571
				Subtotal northeast	$	6,886	$	6,126	$	6,071

			Subtotal second lien debt		$	6,886	$	6,126	$	6,071

Subordinated debt
—3.05% of net asset value
West
—3.05% of net asset value
C&K Market, Inc.	Retail	11.0% (8.0% Cash + 3.0% PIK)	12/29/2020	12/29/2025	$	5,974	$	5,974	$	5,974
				Subtotal west	$	5,974	$	5,974	$	5,974

			Subtotal Subordinated debt		$	5,974	$	5,974	$	5,974

Equity investments
—3.17% of net asset value
Midwest
—0.13% of net asset value
Doxa Insurance Holdings, LLC ^(13)(18)	Insurance		12/4/2020			174,984	$	173	$	190
Matilda Jane Holdings, Inc. ^(12)(17)	Consumer Goods: Non-Durable		4/28/2017			2,587,855		489		65
			Subtotal midwest				$	662	$	255
Northeast
—2.28% of net asset value
Certify, Inc.⁽¹⁸⁾	Services: Business		2/28/2019			841	$	175	$	228
Specialty Brands Holdings, LLC ⁽¹⁷⁾	Services: Business		6/29/2018			58		—		—
Specialty Brands Holdings, LLC⁽¹⁸⁾	Services: Business		6/29/2018			1,232		—		—
SPST Holdings, LLC ^(10)(13)(18)	Services: Consumer		12/21/2020			820,040		216		—
SPST Holdings, LLC ^(10)(13)(17)	Services: Consumer		12/21/2020			3,237		—		—
SPST Investors II, LLC ^{(10)(13)(18)(25)}	Services: Consumer		12/21/2020			51,095		51		—
Urology Management Associates, LLC ⁽¹⁸⁾	Healthcare & Pharmaceuticals		8/31/2018			769		769		1,204
Wheels Up Experience Inc. ^{(10)(13)(18)(28)}	Transportation: Consumer		1/31/2014			460,392		1,000		3,034
			Subtotal northeast				$	2,211	$	4,466

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
Southeast
—0.02% of net asset value
Virtus Aggregator, LLC ^(10)(13)(18)	Healthcare & Pharmaceuticals		5/7/2020			10	$	32	$	32
			Subtotal southeast				$	32	$	32
Southwest
—0.23% of net asset value
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			4,538	$	144	$	—
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			2,063		—		—
Igloo Products Corp. ⁽¹⁸⁾	Consumer Goods: Non-Durable		4/30/2014			1,902		1,716		447
			Subtotal southwest				$	1,860	$	447
West
—0.51% of net asset value
MeriCal, LLC ^{(10) (12) (17)}	Consumer Goods: Non-Durable		9/30/2016			521	$	505	$	484
MeriCal, LLC ^{(10) (12) (18)}	Consumer Goods: Non-Durable		9/30/2016			5,334		10		-
Sciens Building Solutions, LLC ^{(10) (17)}	Services: Business		7/12/2017			194		213		524
			Subtotal west				$	728	$	1,008

				Subtotal equity			$	5,493	$	6,208

Warrants
—0.50% of net asset value
West
—0.50% of net asset value
C&K Market, Inc.	Retail		12/29/2020			1,063,221	$	—	$	986
				Subtotal west			$	—	$	986

				Subtotal warrants			$	—	$	986

Investments in funds
—1.70% of net asset value
Midwest
—1.59% of net asset value
Freeport Financial SBIC Fund LP ^(14)(21)	Investment Funds And Vehicles		6/14/2013				$	2,957	$	3,109
				Subtotal midwest			$	2,957	$	3,109
West
—0.11% of net asset value
Gryphon Partners 3.5, L.P. ^(14)(21)	Investment Funds And Vehicles		11/20/2012				$	299	$	211
				Subtotal west			$	299	$	211

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾

			Subtotal investments in funds				$	3,256	$	3,320

Total non-controlled/non-affiliated investments
—153.61% of net asset value							$	299,645	$	300,810

Controlled investments
—51.68% of net asset value

First lien senior secured debt
—9.00% of net asset value
Southeast
—4.21% of net asset value
Loadmaster Derrick & Equipment, Inc.^(15)(19)(26)	Energy: Oil & Gas	11.3% (LIBOR + 10.3% PIK)	7/1/2016	12/31/2020	$	12,608	$	7,307	$	—
Loadmaster Derrick & Equipment, Inc.^(15)(19)(26)	Energy: Oil & Gas	13.0% (LIBOR + 12.0% PIK)	7/1/2016	12/31/2020		3,034		1,053		—
Loadmaster Derrick & Equipment, Inc.^(15)(19)(26)	Energy: Oil & Gas	11.3% (LIBOR+ 10.3% PIK)	1/17/2017	12/31/2020		10,291		7,450		8,232
				Subtotal southeast	$	25,933	$	15,810	$	8,232
Southwest
—4.79% of net asset value
OEM Group, LLC ⁽¹⁵⁾	Capital Equipment	8.5% (LIBOR + 7.5%)	9/30/2020	9/30/2025	$	9,385	$	9,385	$	9,385
				Subtotal southwest	$	9,385	$	9,385	$	9,385

			Subtotal first lien senior secured debt		$	35,318	$	25,195	$	17,617

Second lien debt
—5.40% of net asset value
Southwest
—5.40% of net asset value
OEM Group, LLC ^(15)(24)	Capital Equipment	10.0% PIK	9/30/2020	9/30/2025	$	48,667	$	22,203	$	10,578
				Subtotal southwest	$	48,667	$	22,203	$	10,578

			Subtotal second lien debt		$	48,667	$	22,203	$	10,578

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
Equity investments
—0.00% of net asset value
Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc. ^(15)(17)	Energy: Oil & Gas		7/1/2016			2,956	$	1,114	$	—
Loadmaster Derrick & Equipment, Inc. ^(15)(18)	Energy: Oil & Gas		12/21/2016			12,131		—		—
				Subtotal southeast			$	1,114	$	—
Southwest
—0.00% of net asset value
OEM Group, LLC^{(10) (12) (15) (20)}	Capital Equipment		3/16/2016			20,000	$	8,890	$	—
				Subtotal southwest			$	8,890	$	—

				Subtotal equity			$	10,004	$	—

Investments in funds
—37.28% of net asset value
Northeast
—37.28% of net asset value
First Eagle Logan JV, LLC ^{(10)(14)(15)(16)(18)(21)}	Investment Funds And Vehicles		12/3/2014				$	91,953	$	73,007
				Subtotal northeast			$	91,953	$	73,007

			Subtotal investments in funds				$	91,953	$	73,007
Total controlled investments
—51.68% of net asset value							$	149,355	$	101,202

Non-controlled/affiliated investments
—0.00% of net asset value
Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund II, LLC ^{(10)(14)(18)(21)}	Investment Funds And Vehicles		3/1/2013				$	1	$	1
				Subtotal northeast			$	1	$	1

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units	Amortized Cost		Fair Value ⁽⁶⁾
			Subtotal investments in funds			$	1	$	1

Total non-controlled/affiliated investments

—0.00% of net asset value						$	1	$	1

Total investments—205.29% of net asset value						$	449,001	$	402,013

⁽¹⁾

All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.

⁽²⁾	All investments are pledged as collateral under the Revolving Facility.

⁽³⁾

As of September 30, 2021, 25.2% and 23.9% of the Company’s total investments on a cost and fair value basis, respectively, are in non-qualifying assets. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets.

⁽⁴⁾

Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, or Alternate Base Rate, or ABR, which are effective as of September 30, 2021. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, and ABR rates are typically indexed to the current prime rate or federal funds rate. Each of the LIBOR and ABR rates may be subject to interest rate floors. As of September 30, 2021, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.08%, 0.11%, 0.13% and 0.16%, respectively. As of September 30, 2021, the ABR rate was 3.25%.

⁽⁵⁾	Principal includes accumulated PIK interest and is net of repayments.

⁽⁶⁾	Unless otherwise indicated, all investments are valued using significant unobservable inputs. Refer to the Level 3 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽⁷⁾	Foreign company or foreign co-borrower at the time of investment and, as a result, is not a qualifying asset under Section 55(a) of the 1940 Act.

⁽⁸⁾	Company pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾	The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

⁽¹⁰⁾	Member interests of limited liability companies are the equity equivalents of the stock of corporations.

⁽¹¹⁾	In certain instances, at the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the issuer.

⁽¹²⁾	Equity ownership may be held in shares or units of companies related to the portfolio company.

⁽¹³⁾	Interest held by a wholly owned subsidiary of First Eagle Alternative Capital BDC, Inc.

⁽¹⁴⁾	Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis.

⁽¹⁵⁾

As defined in Section 2(a)(9) of the 1940 Act, the Company is deemed to control this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities. See Schedule 12-14 in the accompanying notes to the consolidated financial statements for transactions for the nine months ended September 30, 2021 in which the issuer was a portfolio company that the Company is deemed to control.

⁽¹⁶⁾

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

September 30, 2021

(dollar amounts in thousands)

(unaudited)

approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta. Although the Company owns more than 25% of the voting securities of Logan JV, the Company does not believe that it has control over Logan JV (other than for purposes of the 1940 Act or otherwise).

⁽¹⁷⁾	Preferred stock.

⁽¹⁸⁾	Common stock and member interest.

⁽¹⁹⁾	Loan was on non-accrual as of September 30, 2021.

⁽²⁰⁾	Includes $577 of cost and $0 of fair value related to a non-controlling interest as a result of consolidating a blocker corporation that holds equity in OEM Group, LLC as of September 30, 2021.

⁽²¹⁾	Investment is measured at fair value using net asset value.

⁽²²⁾	Company pays 1.00% unfunded commitment fee on delayed draw term loan facility.

⁽²³⁾	Company pays 0.25% unfunded commitment fee on revolving loan facility.

⁽²⁴⁾	Restructured loan for which income is not being recognized as of September 30, 2021.

⁽²⁵⁾	The underlying investment of SPST Investors II, LLC is SPST Holdings, LLC which the Company holds 0.40% ownership interest in SPST Holdings, LLC’s common shares, and 0.44% ownership interest in SPST Holdings, LLC’s preferred shares.

⁽²⁶⁾	On January 1, 2021, the loan was placed in forbearance, with a forbearance termination date of December 31, 2021.

⁽²⁷⁾	Investments are valued using market quotations. Refer to the Level 2 fair value measurements quantitative information table in Note 3 of the Consolidated Financial

Statements for further detail.

⁽²⁸⁾	Investment is valued using public stock price. Refer to the Level 1 fair value measurements quantitative information table in Note 3 of the Consolidated Financial

Statements for further detail.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Non-controlled/non-affiliated investments
—131.65% of net asset value
First lien senior secured debt
—117.56% of net asset value
Canada
—3.64% of net asset value
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	7.3% (LIBOR + 6.0%)	5/15/2019	5/15/2024	$	4,938	$	4,903		$	4,938
PDFTron Systems Inc. ^(7)(23)	Services: Business	7.3% (LIBOR + 6.0%)	5/15/2019	5/15/2024		1,086		1,079			1,086
PDFTron Systems Inc. ^(7)(23)	Services: Business	7.3% (LIBOR + 6.0%)	5/15/2019	5/15/2024		320		316			320
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	8.8% (LIBOR + 7.5%)	6/19/2020	5/15/2024		398		389			398
PDFTron Systems Inc. ^(7)(9)(22)	Services: Business	8.8% (LIBOR + 7.5%)	6/19/2020	5/15/2024		—		(10	)		—
				Subtotal Canada	$	6,742	$	6,677		$	6,742
Midwest
—12.88% of net asset value
Advanced Web Technologies	Containers, Packaging, & Glass	7% (LIBOR + 6%)	12/17/2020	12/17/2026	$	2,053	$	2,012		$	2,012
Advanced Web Technologies⁽⁸⁾	Containers, Packaging, & Glass	7% (LIBOR + 6%)	12/17/2020	12/17/2026		46		39			45
Advanced Web Technologies ^(9)(23)	Containers, Packaging, & Glass	7% (LIBOR + 6%)	12/17/2020	12/17/2026		—		(16	)		—
Doxa Insurance Holdings, LLC	Insurance	7.3% (LIBOR + 6.3.0%)	12/4/2020	12/4/2026		1,600		1,560			1,560
Doxa Insurance Holdings, LLC ⁽⁸⁾⁽⁹⁾	Insurance	7.3% (LIBOR + 6.3.0%)	12/4/2020	12/4/2026		—		(8	)		—
Doxa Insurance Holdings, LLC	Insurance	7.3% (LIBOR + 6.3.0%)	12/4/2020	12/4/2026		867		820			846
1-800 Hansons, LLC	High Tech Industries	7.5% (LIBOR + 6.5%) (6.5% Cash + 1.0% PIK)	10/19/2017	10/19/2022		3,317		3,295			3,052
1-800 Hansons, LLC ⁽⁸⁾	High Tech Industries	7.5% (LIBOR + 6.5%)	10/19/2017	10/19/2022		209		207			193
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2024		5,345		5,318			5,158
IRC Opco LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2024		818		814			790
Matilda Jane Holdings, Inc.	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	4/28/2017	5/1/2022		12,307		12,239			10,211
Matilda Jane Holdings, Inc. ⁽⁸⁾⁽⁹⁾	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	10/30/2020	5/1/2022		—		(20	)		—
				Subtotal midwest	$	26,562	$	26,260		$	23,867
Northeast
—29.61% of net asset value
3SI Security Systems	Services: Consumer	6.8% (LIBOR + 5.8%)	12/17/2019	6/16/2023	$	4,065	$	4,036		$	3,902
AppFire Technologies, LLC	High Tech Industries	7.8% (LIBOR + 6.5%)	10/2/2020	10/2/2025		2,924		2,861			2,895
AppFire Technologies, LLC ⁽⁸⁾⁽⁹⁾	High Tech Industries	7.8% (LIBOR + 6.5%)	10/2/2020	10/2/2025		—		(3	)		—
AppFire Technologies, LLC ⁽²³⁾	High Tech Industries	7.8% (LIBOR + 6.5%)	10/2/2020	10/2/2025		244		239			241
Aurotech, LLC	High Tech Industries	8% (LIBOR + 7%)	10/30/2020	10/30/2025		3,073		3,013			3,012

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Aurotech, LLC ⁽⁸⁾⁽⁹⁾	High Tech Industries	8% (LIBOR + 7%)	10/30/2020	10/30/2025		—		(8	)		—
Certify, Inc.	Services: Business	6.8% (LIBOR + 5.8%)	2/28/2019	2/28/2024		1,544		1,529			1,544
Certify, Inc. ⁽²⁴⁾	Services: Business	6.8% (LIBOR + 5.8%)	2/28/2019	2/28/2024		211		208			211
Certify, Inc. ⁽⁸⁾	Services: Business	6.8% (LIBOR + 5.8%)	2/28/2019	2/28/2024		18		17			18
Communication Technology Intermediate ⁽⁷⁾	Telecommunications	8.5% (LIBOR + 7.5.0%)	10/13/2020	10/13/2025		8,473		8,295			8,303
Communication Technology Intermediate ^(7)(8)(9)	Telecommunications	8.5% (LIBOR + 7.5.0%)	10/13/2020	10/13/2025		—		(13	)		—
HealthDrive Corporation	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/21/2018	12/21/2023		9,800		9,741			9,457
HealthDrive Corporation ⁽⁸⁾	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/21/2018	12/21/2023		352		342			340
Multi Specialty Healthcare LLC	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	12/18/2020	12/18/2026		3,789		3,714			3,714
Multi Specialty Healthcare LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	12/18/2020	12/18/2026		—		(14	)		—
Quartermaster Newco, LLC	Healthcare & Pharmaceuticals	7.8% (LIBOR + 6.5.0%)	7/31/2020	7/31/2025		3,128		3,099			3,096
Quartermaster Newco, LLC⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	7.8% (LIBOR + 6.5.0%)	7/31/2020	7/31/2025		—		(3	)		—
smarTours, LLC	Services: Consumer	7.8% (LIBOR + 6.8%)	12/21/2020	12/31/2024		475		475			475
smarTours, LLC⁽⁸⁾⁽⁹⁾	Services: Consumer	8.8% (LIBOR + 7.8%)	12/21/2020	12/31/2024		2,158		2,158			2,158
Urology Management Associates, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	8/31/2018	8/31/2024		8,350		8,250			8,266
Women's Health USA, Inc.	Healthcare & Pharmaceuticals	8.8% (LIBOR + 7.8%)	10/9/2018	10/9/2023		7,290		7,273			7,217
Women's Health USA, Inc.⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	8.8% (LIBOR + 7.8%)	10/9/2018	10/9/2023		—		(11	)		—
				Subtotal northeast	$	55,894	$	55,198		$	54,849
Southeast
—8.66% of net asset value
Apex Services Partners, LLC	Capital Equipment	6.3% (LIBOR + 5.3%)	2/11/2020	7/31/2025	$	4,822	$	4,783		$	4,701
Apex Services Partners, LLC ⁽²³⁾	Capital Equipment	6.3% (LIBOR + 5.3%)	2/11/2020	7/31/2025		519		515			506
Groundworks Operations, LLC	Construction & Building	7.3% (LIBOR + 6.3%)	7/9/2020	1/17/2026		1,946		1,911			1,946
Groundworks Operations, LLC⁽⁸⁾⁽⁹⁾	Construction & Building	7.3% (LIBOR + 6.3%)	7/9/2020	1/17/2026		—		(2	)		—
Groundworks Operations, LLC ⁽²³⁾	Construction & Building	7.3% (LIBOR + 6.3%)	7/9/2020	1/17/2026		857		843			857
Groundworks Operations, LLC⁽²³⁾	Construction & Building	7.3% (LIBOR + 6.3%)	7/9/2020	1/17/2026		398		378			398
Whitney, Bradley & Brown, Inc.	Services: Business	8.5% (LIBOR + 7.5%)	10/18/2017	10/18/2022		7,563		7,532			7,639
				Subtotal southeast	$	16,105	$	15,960		$	16,047
Southwest
—24.28% of net asset value
Allied Wireline Services, LLC ^(11)(25)	Energy: Oil & Gas	10.0% PIK	6/15/2020	6/15/2025	$	4,951	$	4,971		$	3,961
BCDI Rodeo Dental Buyer, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		5,729		5,687			5,557
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		1,615		1,604			1,567
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		1,320		1,309			1,281
Igloo Products Corp.	Consumer Goods: Non-Durable	11.5% (LIBOR + 10.0%) (10.8% Cash + 0.8% PIK)	3/28/2014	3/28/2023		21,609		21,593			21,609
Neiman Marcus Group LTD LLC	Retail	9.5% (LIBOR + 8.5%)	9/25/2020	9/25/2024		3,000		2,942			2,940

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Riveron Acquisition Holdings, Inc.	Finance	6.8% (LIBOR + 5.8%)	5/22/2019	5/22/2025		8,180		8,061			8,057
				Subtotal southwest	$	46,404	$	46,167		$	44,972
West
—38.49% of net asset value
ABC Legal Services, Inc.	Finance	7% (LIBOR + 5.5%)	6/21/2019	6/21/2024	$	6,958	$	6,872		$	6,610
ABC Legal Services, Inc.⁽⁸⁾⁽⁹⁾	Finance	7% (LIBOR + 5.5%)	6/21/2019	6/21/2024		—		(8	)		—
Action Point, Inc ^(9)(23)	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		—		(13	)		—
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		3,333		3,267			3,267
Alpine SG, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	4/9/2019	11/16/2022		1,316		1,309			1,316
Alpine SG, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	4/9/2019	11/16/2022		659		655			659
Alpine SG, LLC	High Tech Industries	7.5% (LIBOR + 6.5%)	11/2/2020	11/16/2022		1,500		1,459			1,500
EBS Intermediate LLC	Services: Consumer	6% (LIBOR + 5%)	10/2/2018	10/2/2023		7,788		7,712			7,788
EBS Intermediate LLC ⁽⁸⁾⁽⁹⁾	Services: Consumer	6% (LIBOR + 5%)	10/2/2018	10/2/2023		-		(16	)		-
Evergreen Services Group, LLC	High Tech Industries	7.0% (LIBOR + 6.0%)	11/13/2018	6/6/2023		9,339		9,288			9,339
Finxera Intermediate, LLC	Finance	6.8% (LIBOR + 5.8%)	3/3/2020	8/27/2024		6,946		6,889			6,946
Gener8, LLC	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/14/2023		5,857		5,810			5,857
Gener8, LLC ⁽⁸⁾⁽⁹⁾	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/14/2023		—		(12	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (PRIME + 6%)	9/18/2020	3/18/2026		3,022		2,950			2,947
Lash Opco LLC ⁽⁸⁾⁽⁹⁾	Consumer Goods: Non-Durable	9.3% (PRIME + 6%)	9/18/2020	9/18/2025		—		(8	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (PRIME + 6%)	12/31/2020	3/18/2026		1,000		975			975
MarkLogic Corporation	High Tech Industries	9% (LIBOR + 8%)	10/20/2020	10/20/2025		3,150		3,089			3,087
MarkLogic Corporation^(9)(23)	High Tech Industries	9% (LIBOR + 8%)	10/20/2020	10/20/2025		—		(5	)		—
MeriCal, LLC	Consumer Goods: Non-Durable	6.5% (LIBOR + 5.5%)	11/16/2018	11/16/2021		7,415		7,415			7,415
SolutionReach, Inc.	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		6,255		6,178			6,255
SolutionReach, Inc.⁽⁸⁾	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		700		688			700
SRS Acquiom Holdings LLC	Finance	6.8% (LIBOR + 5.8%)	11/8/2018	11/8/2024		4,200		4,173			3,696
Trace3, LLC	High Tech Industries	7.8% (LIBOR + 6.8%)	11/4/2020	8/3/2024		3,023		2,934			2,932
				Subtotal west	$	72,461	$	71,601		$	71,289

			Subtotal first lien senior secured debt		$	224,168	$	221,863		$	217,766

Second lien debt
—6.63% of net asset value

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
Northeast
—6.63% of net asset value
Merchants Capital Access, LLC ⁽¹⁴⁾	Banking	11.5% (LIBOR + 10.5%)	4/20/2015	4/20/2021	$	12,000	$	11,988	$	11,880
smarTours, LLC	Services: Consumer	8.8% (LIBOR + 7.8%)	12/21/2020	12/31/2024	$	1,295	$	543	$	408
				Subtotal northeast	$	13,295	$	12,531	$	12,288

			Subtotal second lien debt		$	13,295	$	12,531	$	12,288

Subordinated debt
—3.15% of net asset value
West
—3.15% of net asset value
C&K Market, Inc.	Retail	11.0% (8% Cash + 3% PIK)	12/29/2020	12/29/2025	$	5,841	$	5,841	$	5,841
				Subtotal west	$	5,841	$	5,841	$	5,841

			Subtotal Subordinated debt		$	5,841	$	5,841	$	5,841

Equity investments
—2.74% of net asset value
Midwest
—0.07% of net asset value
Doxa Insurance Holdings, LLC ⁽¹⁸⁾	Insurance		12/4/2020			129,187	$	129	$	129
Matilda Jane Holdings, Inc. ^(12)(17)	Consumer Goods: Non-Durable		4/28/2017			2,587,855		489		—
			Subtotal midwest				$	618	$	129
Northeast
—1.99% of net asset value
Alex Toys, LLC ^{(10)(12)(13)(18)}	Consumer Goods: Non-Durable		5/22/2015			154	$	1,000	$	—
Alex Toys, LLC ^{(10)(12)(13) (17)}	Consumer Goods: Non-Durable		6/22/2016	6/12/2021		121		888		—
Certify, Inc.⁽¹⁸⁾	Services: Business		2/28/2019			841		175		200
Specialty Brands Holdings, LLC ⁽¹⁷⁾	Services: Business		6/29/2018			58		—		—
Specialty Brands Holdings, LLC⁽¹⁸⁾	Services: Business		6/29/2018			1,232		—		—
SPST Holdings, LLC ^(10)(13)(18)	Services: Consumer		12/21/2020			820,040		—		—
SPST Holdings, LLC ^(10)(13)(17)	Services: Consumer		12/21/2020			3,237		216		—
SPST Investors II, LLC ^{(10)(13)(18)(26)}	Services: Consumer		12/21/2020			51,095		51		—
Urology Management Associates, LLC ⁽¹⁸⁾	Healthcare & Pharmaceuticals		8/31/2018			769		769		916
Wheels Up Partners, LLC ^(10)(13)(18)	Transportation: Consumer		1/31/2014			1,000,000		1,000		2,574

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
			Subtotal northeast				$	4,099	$	3,690
Southeast
—0.02% of net asset value
Virtus Aggregator, LLC ^(10)(13)(18)	Healthcare & Pharmaceuticals		5/7/2020			10	$	32	$	32
			Subtotal southeast				$	32	$	32
Southwest
—0.02% of net asset value
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			4,538	$	144	$	—
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			2,063		—		—
Igloo Products Corp. ⁽¹⁸⁾	Consumer Goods: Non-Durable		4/30/2014			1,902		1,716		40
			Subtotal southwest				$	1,860	$	40
West
—0.64% of net asset value
MeriCal, LLC ^{(10) (12) (17)}	Consumer Goods: Non-Durable		9/30/2016			521	$	505	$	701
MeriCal, LLC ^{(10) (12) (18)}	Consumer Goods: Non-Durable		9/30/2016			5,334		10		97
Sciens Building Solutions, LLC ^{(10) (17)}	Services: Business		7/12/2017			194		213		381
			Subtotal west				$	728	$	1,179

				Subtotal equity			$	7,337	$	5,070

Warrants
—0.00% of net asset value
Southwest
—0.00% of net asset value
C&K Market, Inc.	Retail		12/29/2020			1,063,221	$	—	$	—
				Subtotal southwest			$	—	$	—

				Subtotal warrants			$	—	$	—

Investments in funds
—1.56% of net asset value
Midwest
—1.43% of net asset value
Freeport Financial SBIC Fund LP ^(14)(21)	Finance		6/14/2013				$	2,957	$	2,652
				Subtotal midwest			$	2,957	$	2,652
West

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
—0.13% of net asset value
Gryphon Partners 3.5, L.P. ^(14)(21)	Finance		11/20/2012				$	399	$	238
				Subtotal west			$	399	$	238

			Subtotal investments in funds				$	3,356	$	2,890

Total non-controlled/non-affiliated investments
—131.65% of net asset value							$	250,928	$	243,855

Controlled investments
—50.65% of net asset value

First lien senior secured debt
—8.57% of net asset value
Southeast
—3.98% of net asset value
Loadmaster Derrick & Equipment, Inc.^(15)(19)	Energy: Oil & Gas	11.3% (LIBOR + 10.3% PIK)	7/1/2016	12/31/2020	$	11,576	$	7,307	$	—
Loadmaster Derrick & Equipment, Inc. ^(15)(19)	Energy: Oil & Gas	13.0% (LIBOR + 12.0% PIK)	7/1/2016	12/31/2020		2,750		1,053		—
Loadmaster Derrick & Equipment, Inc. ^(15)(19)	Energy: Oil & Gas	11.3% (LIBOR+ 10.3% PIK)	1/17/2017	12/31/2020		9,214		7,182		7,370
				Subtotal southeast	$	23,540	$	15,542	$	7,370
Southwest
—4.59% of net asset value
OEM Group, LLC ^(15)(25)	Capital Equipment	8.5% (LIBOR + 7.5%)	9/30/2020	9/30/2025	$	8,500	$	8,500	$	8,500
				Subtotal southwest	$	8,500	$	8,500	$	8,500

			Subtotal first lien senior secured debt		$	32,040	$	24,042	$	15,870

Second lien debt
—5.3.00% of net asset value
Southwest
—5.3.00% of net asset value
OEM Group, LLC ^{(15) (25)}	Capital Equipment	10.0% PIK	9/30/2020	9/30/2025	$	45,198	$	22,203	$	9,823
				Subtotal southwest	$	45,198	$	22,203	$	9,823

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
			Subtotal second lien debt		$	45,198	$	22,203	$	9,823

Equity investments
—0.00% of net asset value
Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc. ^(15)(17)	Energy: Oil & Gas		7/1/2016			2,956	$	1,114	$	—
Loadmaster Derrick & Equipment, Inc. ^(15)(18)	Energy: Oil & Gas		12/21/2016			12,131		—		—
				Subtotal southeast			$	1,114	$	—
Southwest
—0.00% of net asset value
OEM Group, LLC^{(10) (12) (15) (20)}	Capital Equipment		3/16/2016			20,000	$	8,890	$	—
				Subtotal southwest			$	8,890	$	—

				Subtotal equity			$	10,004	$	—

Investments in funds
—36.78% of net asset value
Northeast
—36.78% of net asset value
First Eagle Logan JV, LLC ^{(10)(14)(15)(16)(18)(21)}	Investment Funds And Vehicles		12/3/2014				$	92,124	$	68,133
				Subtotal northeast			$	92,124	$	68,133

			Subtotal investments in funds				$	92,124	$	68,133
Total controlled investments
—50.65% of net asset value							$	148,373	$	93,826

Non-controlled/affiliated investments
—0.00% of net asset value
Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund II, LLC ^{(10)(14)(18)(21)}	Investment Funds And Vehicles		3/1/2013					1		1
				Subtotal northeast			$	1	$	1

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units	Amortized Cost		Fair Value ⁽⁶⁾

			Subtotal investments in funds			$	1	$	1

Total non-controlled/affiliated investments

—0.00% of net asset value						$	1	$	1

Total investments—182.3% of net asset value						$	399,302	$	337,682

⁽¹⁾

⁽²⁾	All investments are pledged as collateral under the Revolving Facility.

⁽³⁾

As of December 31, 2020, 30.7% and 29.0% of the Company’s total investments on a cost and fair value basis, respectively, are in non-qualifying assets. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets.

⁽⁴⁾

Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, or Alternate Base Rate, or ABR, which are effective as of December 31, 2020. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, and ABR rates are typically indexed to the current prime rate or federal funds rate. Each of LIBOR and ABR rates may be subject to interest rate floors. As of December 31, 2020, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.14%, 0.19%, 0.24% and 0.26%, respectively.

⁽⁵⁾	Principal includes accumulated PIK interest and is net of repayments.

⁽⁶⁾	Unless otherwise indicated, all investments are valued using significant unobservable inputs. Refer to the Level 3 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽⁷⁾	Foreign company or foreign co-borrower at the time of investment and, as a result, is not a qualifying asset under Section 55(a) of the 1940 Act.

⁽⁸⁾	Company pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾	The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

⁽¹⁰⁾	Member interests of limited liability companies are the equity equivalents of the stock of corporations.

⁽¹¹⁾	In certain circumstances, at the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the issuer. As of December 31, 2020, there were no issuers with this option.

⁽¹²⁾	Equity ownership may be held in shares or units of companies related to the portfolio company.

⁽¹³⁾	Interest held by a wholly owned subsidiary of First Eagle Alternative Capital BDC, Inc.

⁽¹⁴⁾	Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis.

⁽¹⁵⁾	As defined in Section 2(a)(9) of the 1940 Act, the Company is deemed to control this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2020

(dollar amounts in thousands)

⁽¹⁶⁾

On December 3, 2014, the Company entered into an agreement with Perspecta (as described in Note 3 hereto) to create First Eagle Logan JV, LLC (formerly known as THL Credit Logan JV LLC), or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta. Although the Company owns more than 25% of the voting securities of Logan JV, the Company does not believe that it has control over Logan JV (other than for purposes of the 1940 Act or otherwise).

⁽¹⁷⁾	Preferred stock.

⁽¹⁸⁾	Common stock and member interest.

⁽¹⁹⁾	Loan was on non-accrual as of December 31, 2020.

⁽²⁰⁾	Includes $577 of cost and $0 of fair value related to a non-controlling interest as a result of consolidating a blocker corporation that holds equity in OEM Group, LLC as of December 31, 2020.

⁽²¹⁾	Investment is measured at fair value using net asset value.

⁽²²⁾	Company pays 0.38% unfunded commitment fee on revolving loan facility.

⁽²³⁾	Company pays 1.00% unfunded commitment fee on delayed draw term loan facility.

⁽²⁴⁾	Company pays 0.25% unfunded commitment fee on revolving loan facility.

⁽²⁵⁾	Restructured loan for which income is not being recognized as of December 31, 2020.

⁽²⁶⁾	The underlying investment of SPST Investors II, LLC is SPST Holdings, LLC which the Company holds 0.40% ownership interest in SPST Holdings, LLC’s common shares, and 0.44% ownership interest in SPST Holdings, LLC’s preferred shares.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

(in thousands, except per share data)

(unaudited)

1. Organization

First Eagle Alternative Capital BDC, Inc., or the Company, was organized as a Delaware corporation on May 26, 2009. The Company has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or 1940 Act. The Company has elected to be treated for tax purposes as a regulated investment company, or RIC, under the Internal Revenue Code of 1986, as amended, or the Code. The Company’s investment objective is to generate both current income and capital appreciation, primarily through privately negotiated investments in debt and equity securities of middle market companies.

The Company has established from time to time wholly owned subsidiaries or other subsidiaries that are structured as Delaware entities, and as tax blockers, to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass-through entities). These corporate subsidiaries are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies.

The Company has a wholly owned subsidiary, First Eagle Alternative Capital Agent, Inc., which serves as the administrative agent on certain investment transactions.

2. Significant Accounting Policies and Recent Accounting Pronouncements

Basis of Presentation

The Company is an investment company following the accounting and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies.

The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. In accordance with Article 6 of Regulation S-X under the Securities Act of 1933, as amended, and the Securities and Exchange Act of 1934, as amended, the Company generally will not consolidate its interest in any company other than majority owned investment company subsidiaries and controlled operating companies substantially all of whose business consists of providing services to the Company. The Company has made reclassifications to the presentation of certain prior year information to conform with the current period presentation.

The accompanying consolidated financial statements of the Company have been presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair statement of financial statements for the interim period included herein. The current period’s results of operations are not necessarily indicative of the operating results to be expected for the period ending December 31, 2021.

The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 5, 2021. The financial results of the Company’s portfolio companies are not consolidated in the financial statements.

The accounting records of the Company are maintained in U.S. dollars.

Consolidation

The Company follows the guidance in ASC Topic 946 Financial Services—Investment Companies and will not generally consolidate its investment in a company other than substantially owned investment company subsidiaries or a controlled operating company whose business consists of providing services to the Company. The Company consolidated the results of its substantially owned subsidiaries in its consolidated financial statements. The Company does not consolidate its non-controlling interest in First Eagle Logan JV, LLC, or Logan JV. See also the disclosure under the heading, First Eagle Logan JV, LLC.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. Changes in the economic environment, financial markets, creditworthiness of the Company’s portfolio companies and any other parameters used in determining these estimates could cause actual results to differ and these differences could be material.

Cash

Cash consists of funds held in demand deposit accounts at two financial institutions and, at certain times, balances may exceed the Federal Deposit Insurance Corporation insured limit and is therefore subject to credit risk. There were no cash equivalents as of September 30, 2021 and December 31, 2020.

Deferred Financing Costs

Deferred financing costs consist of fees and expenses paid in connection with the closing and amendments of the Revolving Facility (as defined in Note 7 hereto) and public offering of Notes (as defined in Note 7 hereto) including legal, accounting, printing fees and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement. These costs are capitalized at the time of payment and are amortized using the straight line and effective yield methods over the term of the Revolving Facility and Notes, respectively.

Under the Revolving Facility, if the borrowing capacity of the new arrangement is lower than the borrowing capacity of the old arrangement evaluated on a lender by lender basis, then any unamortized deferred financing costs would be expensed during the period in proportion to the decrease in the old arrangement for that lender. Any remaining unamortized deferred financing costs relating to the old arrangement would be deferred and amortized over the term of the new arrangement along with any costs associated with the new arrangement. Under the Notes, if the Company extinguishes or substantially modifies the debt prior to maturity, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment. A modification is considered substantial if there is a greater than 10% change of the present value of cash flows under the old and new amended facilities. Third party costs under the new arrangement would be capitalized and amortized over the term of the new arrangement.

Capitalized deferred financing costs related to the Revolving Facility are presented separately on the Company’s Consolidated Statements of Assets and Liabilities. Capitalized deferred financing costs related to the Notes are presented net against the respective balances outstanding on the Consolidated Statements of Assets and Liabilities. See also the disclosure in Note 7, Borrowings.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash, accounts payable and accrued expenses, approximate fair value due to their short-term nature. The carrying amounts and fair values of the Company’s long-term debt obligations are disclosed in Note 7, Borrowings.

Valuation of Investments

The Company accounts for its Investment Portfolio at fair value. As a result, the Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

Investments, for which market quotations are readily available and reliable, are valued using market quotations, which are generally obtained from an independent pricing service or broker-dealers or market makers. Debt and equity securities, for which market quotations are not readily available or are determined to be unreliable are valued at fair value as determined in good faith by the Company’s board of directors. Because the Company expects that there will not be a readily available market value for many of the investments in the Company’s portfolio, it is expected that many of the Company’s portfolio investments’ values will be determined in good faith by the Company’s board of directors in accordance with a documented valuation policy that has been reviewed and approved by the Company’s board of directors and in accordance with GAAP. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

With respect to investments for which market quotations are not readily available or are determined to be unreliable, the Company undertakes a multi- step valuation process each quarter, as described below:

•

the Company’s quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals responsible for managing portfolio investments;

•

preliminary valuation conclusions are then documented and are reviewed with the pricing committee of First Eagle Alternative Credit, LLC, or the Advisor;

•

to the extent determined by the audit committee of the Company’s board of directors, independent valuation firms are used to conduct independent appraisals of all “Level 3” investments and review the Advisor’s preliminary valuations in light of their own independent assessment unless the amounts are immaterial or have closed near quarter-end;

•

the audit committee of the Company’s board of directors reviews the preliminary valuations approved by the pricing committee of the Advisor and independent valuation firms and, if necessary, responds and supplements the valuation recommendation of the independent valuation firms to reflect any comments; and

•

the Company’s board of directors discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of the Advisor, the respective independent valuation firms and the audit committee.

The types of factors that the Company may take into account in fair value pricing its investments include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. The Company generally utilizes an income approach to value its debt investments and a combination of income and market approaches to value its equity investments. With respect to unquoted securities, the Advisor and the Company’s board of directors, in consultation with the Company’s independent third party valuation firms, values each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors, which valuation is then approved by the board of directors.

Debt Investments

For debt investments, the Company generally determines the fair value using an income, or yield, approach that analyzes the discounted cash flows of interest and principal for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of each portfolio investment. The Company’s estimate of the expected repayment date is generally the legal maturity date of the investment. The yield analysis considers changes in leverage levels, credit quality, portfolio company performance and other factors. The enterprise value, a market approach, is used to determine the value of equity and debt investments that are credit impaired, close to maturity or where the Company also holds a controlling equity interest. The method for determining enterprise value uses a multiple analysis, whereby appropriate multiples are applied to the portfolio company’s revenues or net income before net interest expense, income tax expense, depreciation and amortization, or EBITDA.

Escrow and Other Receivables

Escrow and other receivables are categorized within Level 3 of the fair value hierarchy where the net realizable value of the escrow and other receivables approximates fair value. The fair value is determined using probability weighted scenario analysis.

Equity

The Company generally uses the market approach to value its equity investments. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). 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 the Company may take into account in fair value pricing the Company’s investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, the current investment performance rating, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, the Company’s principal market as the reporting entity and enterprise values, among other factors.

Investment in Funds

In circumstances in which net asset value per share of an investment is determinative of fair value, the Company estimates the fair value of an investment in an investment company using the net asset value per share of the investment (or its equivalent) without further adjustment if the net asset value per share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the reporting entity’s measurement date.

Security Transactions, Payment-in-Kind, Income Recognition, Realized/Unrealized Gains or Losses

Security transactions are recorded on a trade-date basis. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method. Net realized gains and losses reflect the impact of investments written off during the period, if any. The Company reports changes in fair value of investments that are measured at fair value as a component of net change in unrealized appreciation or depreciation on investments in the Consolidated Statements of Operations.

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that the Company expects to collect such amounts. Original issue discount, representing the estimated fair value of detachable equity or warrants obtained in conjunction with the acquisition of debt securities and market discount or premium, are capitalized and accreted or amortized into interest income over the life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion/amortization of discounts and premiums and upfront loan origination fees.

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies. Distributions received from a limited liability company or limited partnership investment are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or when it is no longer probable that principal or interest will be collected. However, the Company may make exceptions to this policy if the loan has sufficient collateral value and is in the process of collection. The Company records the reversal of any previously accrued income against the same income category reflected in the Consolidated Statement of Operations. As of September 30, 2021, the Company had loans on non-accrual status with an amortized cost basis of $15,810 and fair value of $8,233. As of December 31, 2020, the Company had loans on non-accrual status with an amortized cost basis of $15,542 and fair value of $7,370.

In certain instances, the Company may enter into an agreement to restructure a loan, where the Company determined the full balance of principal or interest may not be collectible at the date of origination. As a result of this determination, the Company does not recognize interest income on these balances. As of September 30, 2021, the Company had restructured loans with an amortized cost basis of $27,174 and fair value of $14,630, which meet the above criteria. As of December 31, 2020, the Company had restructured loans with an amortized cost basis of $27,174 and fair value of $13,784.

The Company has investments in its portfolio which contain a contractual paid-in-kind, or PIK, interest provision. PIK interest is computed at the contractual rate specified in each investment agreement, is added to the principal balance of the investment, and is recorded as income. The Company will cease accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect amounts to be collectible and will generally only begin to recognize PIK income again when all principal and interest have been paid or upon the restructuring of the investment where the interest is deemed collectable. To maintain the Company’s status as a RIC, PIK interest income, which is considered investment company taxable income, must be paid out to stockholders in the form of dividends even though the Company has not yet collected the cash. Amounts necessary to pay these dividends may come from available cash.

The following shows a rollforward of PIK income activity for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 30,					Nine months ended September 30,
	2021		2020			2021		2020
Accumulated PIK balance, beginning of period	$	1,411	$	2,789		$	1,163	$	3,588
PIK income capitalized/receivable		128		338			376		806
PIK received in cash from repayments		—		—			—		(6	)
PIK reduced through restructurings/sales		—		(2,229	)		—		(3,490	)
Accumulated PIK balance, end of period	$	1,539	$	898		$	1,539	$	898

The Company capitalizes and amortizes upfront loan origination fees received in connection with the closing of investments. The unearned income from such fees is accreted into interest income over the contractual life of the loan based on the effective interest method. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees, and unamortized discounts are recorded as interest income.

The Company will recognize any earned exit or back-end fees into income when it believes the amounts will ultimately become collectible by using either the beneficial interest model or other appropriate income recognition frameworks.

In certain investment transactions, the Company may provide advisory services. For services that are separately identifiable and external evidence exists to substantiate fair value, income is recognized as earned. The Company had no income from advisory services related to portfolio companies for the three and nine months ended September 30, 2021 and 2020.

The Company may also generate revenue in the form of fees from the management of First Eagle Greenway Fund II, LLC, or Greenway II, prepayment premiums, commitment, loan origination, structuring or due diligence fees, exit fees, portfolio company administration fees, fees for providing significant managerial assistance and consulting fees.

U.S. Federal Income Taxes, Including Excise Tax

The Company has elected to be taxed as a RIC under Subchapter M of the Code and currently qualifies, and intends to continue to qualify each year, as a RIC under the Code. Accordingly, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed to stockholders.

In order to qualify for favorable tax treatment as a RIC, the Company is required to distribute annually to its stockholders at least 90% of its investment company taxable income, as defined by the Code. To avoid a 4% U.S. federal excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no U.S. federal income or excise tax. The Company, at its discretion, may choose not to distribute all of its taxable income for the calendar year and pay a non-deductible 4% excise tax on this undistributed income. If the Company chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to stockholders. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, the Company accrues excise taxes on estimated excess taxable income as taxable income is earned using an annual effective excise tax rate.

The annual effective excise tax rate is determined by dividing the estimated annual excise tax by the estimated annual taxable income. See also the disclosure in Note 10, Distributions, for a summary of recent dividends paid. For the three months ended September 30, 2021 and 2020, the Company incurred U.S. federal excise tax and other tax (benefits) expenses of $26 and $(15), respectively. For the nine months ended September 30, 2021 and 2020, the Company incurred U.S. federal excise tax and other tax expenses of $78 and $71, respectively.

Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries.

The following shows the breakdown of deferred income tax (provisions) benefits for the three and nine months ended September 30, 2021 and 2020. There were no current income tax (provisions) benefits during the respective periods.

For the three months ended

September 30,

For the nine months ended September 30,

2021

2020

2021

2020

(Provision) benefit for taxes on unrealized gain on investments

505

165

(145

)

192

These current and deferred income taxes are determined from taxable income estimates provided by portfolio companies organized as pass-through entities where the Company holds equity or equity-like investments in its corporate subsidiaries. These tax estimates may be subject to further change once tax information is finalized for the year. As of September 30, 2021 and December 31, 2020, $5 and $5, respectively, of income tax receivable was included in prepaid expenses and other assets on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $1,807 and $1,673, respectively, were included in deferred tax liability on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments and other temporary book to tax differences held in its corporate subsidiaries. As of September 30, 2021 and December 31, 2020, $2,211 (net of $8,831 allowance) and $2,222 (net of $8,433 allowance), respectively of deferred tax assets were included in deferred tax assets on the Consolidated Statements of Assets and Liabilities relating to net operating loss carryforwards and unrealized losses on investments and other temporary book to tax differences that are expected to be used in future periods.

Under the RIC Modernization Act, the Company is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during post-enactment taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment

capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under the rules applicable to pre-enactment capital losses.

Because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

The Company follows the provisions under the authoritative guidance on accounting for and disclosure of uncertainty in tax positions. The provisions require management to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions not meeting the more likely than not threshold, the tax amount recognized in the consolidated financial statements is reduced by the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. There are no unrecognized tax benefits or obligations in the accompanying consolidated financial statements. Although the Company files U.S. federal and state tax returns, the Company’s major tax jurisdiction is U.S. federal. The Company’s U.S. federal tax years subsequent to 2016 remain subject to examination by taxing authorities.

Distributions

Distributions to stockholders are recorded on the applicable record date. The amount to be paid out as a dividend is determined by the Company’s board of directors on a quarterly basis. Net realized capital gains, if any, are generally distributed at least annually out of assets legally available for such distributions, although the Company may decide to retain such capital gains for investment.

Capital transactions in connection with the Company’s dividend reinvestment plan are recorded when shares are issued.

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP to contracts and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, at the Company’s election.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which clarifies certain optional expedients and exceptions for applying GAAP to derivatives affected by reference rate reform. ASU 2021-01 is effective as of January 7, 2021 through December 31, 2022, at the Company’s election.

The Company continues to evaluate the impact of the guidance and may apply other elections, as applicable, as the expected market transition to alternative reference rates evolves. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 and ASU 2021-01 during the nine months ended September 30, 2021.

3. Investments

The following is a summary of the industry classification in which the Company invests as of September 30, 2021:

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds And Vehicles	$	95,210	$	76,328		19.00	%		38.97	%
Healthcare & Pharmaceuticals		63,095		63,827		15.89	%		32.59	%
Consumer Goods: Non-Durable		57,898		55,693		13.85	%		28.44	%
High Tech Industries		31,058		30,451		7.57	%		15.55	%
Capital Equipment		45,741		25,210		6.27	%		12.87	%
Services: Consumer		24,619		24,461		6.08	%		12.49	%
Services: Business		22,306		22,807		5.67	%		11.65	%
Retail		12,836		13,822		3.44	%		7.06	%
Banking		12,697		12,805		3.19	%		6.54	%
Finance		12,198		12,318		3.06	%		6.29	%
Energy: Oil & Gas		22,039		12,284		3.06	%		6.27	%
Insurance		9,263		9,418		2.34	%		4.81	%
Environmental Industries		7,252		7,295		1.81	%		3.73	%
Media: Broadcasting & Subscription		5,207		5,204		1.29	%		2.66	%
Containers, Packaging, & Glass		4,116		4,203		1.05	%		2.15	%
Automotive		3,943		3,971		0.99	%		2.03	%
Chemicals, Plastics, & Rubber		3,777		3,857		0.96	%		1.97	%
Construction & Building		3,350		3,442		0.86	%		1.76	%
Telecommunications		3,262		3,266		0.81	%		1.67	%
Hotel, Gaming, & Leisure		2,964		3,071		0.76	%		1.57	%
Transportation: Consumer		1,000		3,034		0.75	%		1.55	%
Sovereign & Public Finance		2,837		2,867		0.71	%		1.46	%
Transportation: Cargo		2,333		2,379		0.59	%		1.21	%
Total Investments	$	449,001	$	402,013		100.00	%		205.29	%

The following is a summary of the industry classification in which the Company invests as of December 31, 2020:

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds and Vehicles	$	92,125	$	68,134		20.17	%		36.78	%
Healthcare & Pharmaceuticals		47,924		47,391		14.03	%		25.58	%
Consumer Goods: Non-Durable		49,752		43,995		13.03	%		23.75	%
High Tech Industries		28,333		28,226		8.36	%		15.23	%
Finance		29,343		28,199		8.35	%		15.23	%
Capital Equipment		44,891		23,530		6.97	%		12.71	%
Services: Business		22,149		22,592		6.69	%		12.20	%
Services: Consumer		22,041		21,686		6.42	%		11.71	%
Banking		11,988		11,880		3.52	%		6.41	%
Energy: Oil & Gas		21,771		11,331		3.36	%		6.12	%
Retail		8,783		8,781		2.60	%		4.74	%
Telecommunications		8,282		8,303		2.46	%		4.48	%
Chemicals, Plastics, & Rubber		3,254		3,267		0.97	%		1.76	%
Construction & Building		3,130		3,201		0.95	%		1.73	%
Transportation: Consumer		1,000		2,574		0.76	%		1.39	%
Insurance		2,501		2,535		0.75	%		1.37	%
Containers, Packaging, & Glass		2,035		2,057		0.61	%		1.11	%
Total Investments	$	399,302	$	337,682		100.00	%		182.30	%

The following is a summary of the geographical concentration of the Company’s investment portfolio as of September 30, 2021:

Region	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
United States
Northeast	$	163,833	$	146,823		36.52	%		74.98	%
West		97,811		99,868		24.84	%		51.00	%
Southwest		95,691		72,970		18.15	%		37.26	%
Southeast		51,954		43,619		10.85	%		22.27	%
Midwest		30,926		29,941		7.45	%		15.29	%
Canada		8,786		8,792		2.19	%		4.49	%
Total Investments	$	449,001	$	402,013		100.00	%		205.29	%

The following is a summary of the geographical concentration of the Company’s investment portfolio as of December 31, 2020:

Region	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
United States
Northeast	$	163,953	$	138,961		41.15	%		75.02	%
West		78,569		78,547		23.26	%		42.40	%
Southwest		87,620		63,335		18.76	%		34.19	%
Midwest		29,835		26,648		7.89	%		14.39	%
Southeast		32,648		23,449		6.94	%		12.66	%
Canada		6,677		6,742		2.00	%		3.64	%
Total Investments	$	399,302	$	337,682		100.00	%		182.30	%

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If any transfers occur between the levels or categories of the fair value hierarchy, they are assumed to have occurred at the beginning of the period. The guidance establishes three levels of the fair value hierarchy as follows:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2—Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly;

Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by management.

The Company considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

The Company has adopted the authoritative guidance under GAAP for estimating the fair value of investments in investment companies that have calculated net asset value per share in accordance with the specialized accounting guidance for investment companies. Accordingly, in circumstances in which net asset value per share of an investment is determinative of fair value, the Company estimates the fair value of an investment in an investment company using the net asset value per share of the investment (or its equivalent) without further adjustment if the net asset value per share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the reporting entity’s measurement date. Redemptions are not generally permitted in the Company’s investments in funds. The remaining term of the Company’s investments in funds is expected to be within three months to two years.

The following is a summary of the levels within the fair value hierarchy in which the Company invests as of September 30, 2021:

Description	Fair Value		Level 1		Level 2		Level 3
First lien senior secured debt	$	295,868	$	—	$	7,861	$	288,007
Second lien debt		16,649		—		—		16,649
Subordinated debt		5,974		—		—		5,974
Equity investments		7,194		3,034		—		4,160
Investment in Logan JV ⁽¹⁾		73,007		—		—		—
Investments in funds⁽¹⁾		3,321		—		—		—
Total investments	$	402,013	$	3,034	$	7,861	$	314,790

⁽¹⁾

Certain investments that are measured at fair value using net asset value totaling $76,328 have not been categorized in the fair value hierarchy in accordance with ASU 2015-07. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

The following is a summary of the levels within the fair value hierarchy in which the Company invests as of December 31, 2020:

Description	Fair Value		Level 1		Level 2		Level 3
First lien senior secured debt	$	233,636	$	—	$	—	$	233,636
Second lien debt		22,111		—		—		22,111
Subordinated debt		5,841		—		—		5,841
Equity investments		5,070		—		—		5,070
Investment in Logan JV ⁽¹⁾		68,133		—		—		—
Investments in funds ⁽¹⁾		2,891		—		—		—
Total investments	$	337,682	$	—	$	—	$	266,658

⁽¹⁾

Certain investments that are measured at fair value using net asset value totaling $71,024 have not been categorized in the fair value hierarchy in accordance with ASU 2015-07. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

The following provides quantitative information about Level 3 fair value measurements as of September 30, 2021:

Description	Fair Value			Valuation Technique	Unobservable Inputs	Weighted Range (Average) ⁽¹⁾
First lien senior secured debt⁽²⁾	$	224,591		Discounted cash flows (income approach)	Comparative Yield	7%			-	8%			(7%)
		24,234		Market comparable companies (market approach)	EBITDA Multiple		6.5x		-		7.0x			(6.8x)
		9,384	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	7.5% 4.5% 32.1%			- - -	12.5% 4.5% 32.1%			(9.1%) (4.5%) (32.1%)
		8,233		Market comparable companies (market approach)	Revenue Multiple		0.3x		-		0.8x			(0.5x)
		7,887		Recoverability	Collateral Value ⁽⁴⁾	$	125		-	$	138		$	(131)
Second lien debt		5,500		Discounted cash flows (income approach)	Comparative Yield	10%			-	11%			(10%)
		10,578	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	7.5% 4.5% 32.1%			- - -	12.5% 4.5% 32.1%			(9.1%) (4.5%) (32.1%)
		571		Market comparable companies (market approach)	EBITDA Multiple		5.3x		-		5.8x			(5.5x)
Subordinated debt		5,974		Market comparable companies (market approach)	EBITDA Multiple		2.5	x	-		3.0	x		(2.7x)
Equity investments ⁽²⁾		3,899		Market comparable companies (market approach)	EBITDA Multiple		8.5x		-		9.2x			(10.9x)
		228		Market comparable companies (market approach)	Revenue Multiple		10.3x		-		10.8x			(10.5x)
Total Level 3 Investments	$	301,079

⁽¹⁾	Averages were determined using a weighted average based upon the fair value of the investments in each investment category.

⁽²⁾	Excluded from the presentation is $13,679 of first lien senior secured debt and $32 of equity for which the Advisor did not develop the unobservable inputs for the determination of fair value (examples include insufficient liquidity and single source quotation).

⁽³⁾	Investment relates to the Company's remaining investment in OEM Group, Inc.

⁽⁴⁾	There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of a company's assets. The significant unobservable input used in the valuation model was collateral value.

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2020:

Description	Fair Value			Valuation Technique	Unobservable Inputs	Weighted Range (Average) ⁽¹⁾
First lien senior secured debt⁽²⁾	$	188,981		Discounted cash flows (income approach)	Comparative Yield	8%		-	9%		(8%)
		16,808		Market comparable companies (market approach)	EBITDA Multiple		5.1x	-		5.6x		(5.4x)
		8,500	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	7.5% 4.5% 32.1%		- - -	12.5% 4.5% 32.1%		(9.1%) (4.5%) (32.1%)
		7,370		Market comparable companies (market approach)	Revenue Multiple		0.4x	-		0.9x		(0.6x)
		2,940		Recoverability	Liquidation Proceeds ⁽⁴⁾	$	866	-	$	866	$	(866)
Second lien debt		11,880		Discounted cash flows (income approach)	Comparative Yield	14%		-	14%		(14%)
		9,823	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	7.5% 4.5% 32.1%		- - -	12.5% 4.5% 32.1%		(9.1%) (4.5%) (32.1%)
		408		Market comparable companies (market approach)	EBITDA Multiple		5.5x	-		6.0x		(5.7x)
Subordinated debt		5,841		Market comparable companies (market approach)	EBITDA Multiple		2.9x	-		3.4x		(3.1x)
Equity investments⁽²⁾		2,265		Market comparable companies (market approach)	EBITDA Multiple		9.7x	-		10.6x		(10.2x)
		2,773		Market comparable companies (market approach)	Revenue Multiple		2.1x	-		2.6x		(2.4x)
Total Level 3 Investments	$	257,589

⁽¹⁾	Averages were determined using a weighted average based upon the fair value of the investments in each investment category.

⁽²⁾	Excluded from the presentation is $9,037 of first lien senior secured debt and $32 of equity for which the Advisor did not develop the unobservable inputs for the determination of fair value.

⁽³⁾	Investment relates to the Company's remaining investment in OEM Group, Inc.

⁽⁴⁾	There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of a company's assets. The significant unobservable inputs used in the valuation model were liquidation proceeds.

The two primary significant unobservable inputs used in the fair value measurement of the Company’s debt securities (first lien secured debt, second lien debt and subordinated debt), including income-producing investments in funds and income producing securities and payment rights, and excluding the Company’s investment in debt securities of OEM Group, Inc., is the weighted average cost of capital, or WACC, and the comparative yield. Significant increases (decreases) in the WACC or in the comparative yield in isolation would result in a significantly lower (higher) fair value measurement. In determining the WACC, for the income, or yield approach, the Company considers current market yields and multiples, portfolio company performance, leverage levels, credit quality, among other factors, including U.S. federal tax rates, in its analysis. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate WACC to use in the income approach. In determining the comparative yield, for the income, or yield approach, the Company considers current market yields and multiples, weighted average cost of capital, portfolio company performance, leverage levels, credit quality, among other factors, including U.S. federal tax rates, in its analysis.

The primary significant unobservable inputs used in the fair value measurement of the Company’s investment in the first lien secured debt and second lien debt of OEM Group, Inc. are royalty payment discount rate, minimum payment discount rate, and revenue growth. Significant increases (decreases) in the royalty payment discount rate or minimum payment discount rate in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the revenue growth rates in isolation would result in a significantly higher (lower) fair value measurement. To determine royalty payments discount rate and minimum payment discount rates, the Company considers current cost of capital of the payor, expected term of investment and anticipated risk in the projections, among other factors. To determine revenue growth rates, the Company principally considers historical and current performance coupled with industry growth rates. The Company also considers current purchase orders and inflation rate adjustments that consider macroeconomic research, among other factors, in evaluating growth rates.

The primary significant unobservable input used in the fair value measurement of the Company’s equity investments, investments in warrants, debt investments where the Company has a controlling equity investment, and other debt investments using a market approach is the EBITDA multiple adjusted by management for differences between the investment and referenced comparables, or the multiple. Significant increases (decreases) in the multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the multiple for the market approach, the Company considers current market trading and/or transaction multiples, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate multiple to use in the market approach.

The following table rolls forward the changes in fair value during the nine months ended September 30, 2021 for investments classified within Level 3:

	First lien Senior secured debt			Second lien debt			Subordinated debt			Equity investments			Totals
Beginning balance, January 1, 2021	$	233,636		$	22,111		$	5,841		$	5,070			$	266,658
Transfers out of Level 3 ⁽³⁾		-			-			-			(4,485	)			(4,485	)
Purchases⁽¹⁾		109,347			-			-			45				109,392
Sales and repayments ⁽¹⁾		(60,296	)		(6,500	)		-			-				(66,796	)
Unrealized appreciation (depreciation)⁽²⁾		4,064			939			(1	)		5,418				10,420
Realized loss		-			-			-			(1,888	)			(1,888	)
Net amortization of premiums, discounts and fees		1,096			8			-			-				1,104
PIK		160			91			134			-				385
Ending balance, September 30, 2021	$	288,007		$	16,649		$	5,974		$	4,160			$	314,790
Net change in unrealized appreciation (depreciation) from investments still held as of the reporting date	$	4,050		$	939		$	(1	)	$	3,506			$	8,494

⁽¹⁾	Includes reorganizations and restructuring of investments.

⁽²⁾	All unrealized appreciation (depreciation) in the table above is reflected in the accompanying Consolidated Statements of Operations.

⁽³⁾	Investments were transferred out of Level 3 during the nine months ended September 30, 2021 due to changes in the quantity and quality of information, specifically availability of quoted prices in active market.

The following table rolls forward the changes in fair value during the nine months ended September 30, 2020 for investments classified within Level 3:

	First lien senior secured debt			Second lien debt			Equity investments			Warrants			Totals
Beginning balance, January 1, 2020	$	240,098		$	12,000		$	21,515		$	-		$	273,613
Purchases ⁽¹⁾		63,207			22,203			176			-			85,586
Sales and repayments ⁽¹⁾		(56,219	)		-			(32	)		-			(56,251	)
Unrealized appreciation (depreciation)⁽²⁾		14,952			(408	)		3,278			175			17,997
Realized (loss) gain		(40,703	)		-			(3,548	)		(175	)		(44,426	)
Net amortization of premiums, discounts and fees		447			30			-			-			477
PIK		699			-			-			-			699
Ending balance, September 30, 2020	$	222,481		$	33,825		$	21,389		$	-		$	277,695
Net change in unrealized appreciation (depreciation) from investments still held as of the reporting date	$	(9,139	)	$	(408	)	$	163		$	-		$	(9,384	)

⁽¹⁾	Includes reorganizations and restructuring of investments.

⁽²⁾	All unrealized appreciation (depreciation) in the table above is reflected in the accompanying Consolidated Statements of Operations.

There were no transfers between the levels or categories of the fair value hierarchy during the nine months ended September 30, 2020.

Significant Unconsolidated Subsidiaries

In accordance with the SEC’s Regulation S-X and GAAP, the Company is not permitted to consolidate any subsidiary or other entity that is not an investment company or a controlled operating company whose business consists of providing services to the Company, including those in which the Company has a controlling interest. The Company had certain unconsolidated subsidiaries for the three and nine months ended September 30, 2021 and 2020 that met at least one of the significance conditions under the SEC’s Regulation S-X. Accordingly, pursuant to Rule 4-08 of Regulation S-X, summarized, comparative financial information is presented below for the Company’s significant unconsolidated subsidiaries, which include Loadmaster Derrick & Equipment, Inc., OEM Group, LLC and First Eagle Logan JV, LLC for the three and nine months ended September 30, 2021, and C&K Market, Inc., Loadmaster Derrick & Equipment, Inc., OEM Group, LLC, and First Eagle Logan JV, LLC for the three and nine months ended September 30, 2020. The below table summarizes the above mentioned financial data, with the exception of OEM Group, LLC, which is presented in a separate tabular disclosure further below.

	For the three months ended September 30,				For the nine months ended September 30,
Income Statement	2021		2020		2021		2020
Net sales	$	7,533	$	76,895	$	23,235	$	206,205
Gross profit		2,236		28,649		6,376		75,043
Net gain		155		5,200		490		9,486

The below table summarizes the financial information for OEM Group, LLC for the three and nine months ended September 30, 2021 and 2020.

	For the three months ended September 30,						For the nine months ended September 30,
Income Statement	2021			2020			2021			2020
Net sales	$	-		$	-		$	-		$	-
Gross profit		-			-			-			-
Net loss from continuing operations		(2,849	)		(5,447	)		(8,622	)		(17,937	)
Loss (gain) from discontinued operations		(4	)		618			(197	)		3,843

In December 2020, OEM Group, LLC completed the sale of all of its principal business operations via two transactions. On December 2, 2020, OEM closed on the sale of certain assets and liabilities of its Arizona based division to Plasma Therm LLC. Plasma Therm will be responsible for developing, commercializing, and marketing the newly developed Endeavor M series PVD platform with no further investment required by OEM. OEM is entitled to a series of deferred royalty payments over seven years associated with the sale of its business operations, which are based on the future revenues associated with Plasma Therm’s product and services sales. OEM will receive minimum annual payments for the first four years that will be used to cover certain residual operating costs and service the outstanding debt. These future royalty streams will be used to cover principal and interest on OEM’s outstanding debt. Under GAAP, the financial results of the disposed businesses are reported separately from continuing operations under the line item “Gain from discontinued operations”. “Net sales”, “Gross profit”, and “Net loss from continuing operations” represents the financial operations of the continuing entity, which excludes the results of the discontinued businesses. These amounts represent primarily general and administrative expenses and interest expense of the continuing entity. In future years, the royalty payments received by OEM will be reflected in “Net sales” and “Gross profit” in their financial results.

First Eagle Logan JV, LLC

On December 3, 2014, the Company entered into an agreement with Perspecta Trident LLC, an affiliate of Perspecta Trust LLC, or Perspecta, to create First Eagle Logan JV, LLC, or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta.

The Company has determined that Logan JV is an investment company under ASC 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company does not consolidate its non-controlling interest in Logan JV.

Logan JV is capitalized with capital contributions which are generally called from its members, on a pro-rata basis based on their capital commitments, as transactions are completed. Any decision by the Logan JV to call down on capital commitments requires the explicit authorization of the Company, coupled with that of Perspecta, and the Company may withhold such authorization for any reason in its sole discretion.

As of September 30, 2021 and December 31, 2020, Logan JV had the following commitments, contributions and unfunded commitments from its Members.

	As of September 30, 2021
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110,000	$	92,600	$	8,000	$	9,400
Perspecta Trident LLC		27,500		23,150		2,000		2,350
Total Investments	$	137,500	$	115,750	$	10,000	$	11,750

	As of December 31, 2020
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110,000	$	92,600	$	8,000	$	9,400
Perspecta Trident LLC		27,500		23,150		2,000		2,350
Total Investments	$	137,500	$	115,750	$	10,000	$	11,750

Logan JV has a senior credit facility, or the Logan JV Credit Facility, with Deutsche Bank AG and other banks, which was amended on January 9, 2021 to reduce the commitments, extend the maturity date, and amend the pricing. As of September 30, 2021, the Logan JV Credit Facility had $225,000 of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.50%. As of December 31, 2020, the Logan JV Credit Facility had $275,000 of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.20%. The final maturity date of the Logan JV Credit Facility is July 12, 2025. As of September 30, 2021 and December 31, 2020, Logan JV had $146,541 and $166,541 of outstanding borrowings under the credit facility, respectively. At September 30, 2021, the effective interest rate on the Logan JV Credit Facility was 2.88% per annum.

As of September 30, 2021 and December 31, 2020, Logan JV had total investments at fair value of $234,547 and $221,418, respectively. As of September 30, 2021 and December 31, 2020, Logan JV’s portfolio was comprised of senior secured first lien loans and second lien loans to 99 and 92 different borrowers, respectively. As of September 30, 2021, the amortized cost and fair value of loans on non-accrual status was $2,227 and $666, respectively. As of December 31, 2020, the amortized cost and fair value of loans on non-accrual status was $2,227 and $1,018, respectively. As of September 30, 2021 and December 31, 2020, Logan JV had unfunded commitments to fund revolver and delayed draw loans to its portfolio companies totaling $3,667 and $6,175, respectively. The portfolio companies in Logan JV are in industries similar to those in which the Company may invest directly.

Below is a summary of Logan JV’s portfolio, followed by a listing of the individual loans in Logan JV’s portfolio as of September 30, 2021 and December 31, 2020:


	As of September 30, 2021			As of December 31, 2020
First lien secured debt, at par	$	221,659		$	233,614
Second lien debt, at par		4,282			7,111
Total debt investments, at par	$	225,941		$	240,725
Weighted average yield on first lien secured loans ⁽¹⁾		5.2	%		5.6	%
Weighted average yield on second lien loans⁽¹⁾		8.5	%		8.7	%
Weighted average yield on all loans⁽¹⁾		5.3	%		5.7	%
Number of borrowers in Logan JV		99			92
Largest loan to a single borrower ⁽²⁾	$	5,000		$	5,000
Total of five largest loans to borrowers ⁽²⁾	$	22,853		$	24,596

⁽¹⁾	Weighted average yield at their current amortized cost.

⁽²⁾	At current principal amount.

The weighted average yield of Logan JV’s debt investments is not the same as a return on Logan JV investment for the Company’s stockholders but, rather, relates to a portion of the Company’s investment portfolio and is calculated before the payment of the Company’s expenses. The weighted average yield was computed using the effective interest rates as of September 30, 2021 and December 31, 2020, respectively. There can be no assurance that the weighted average yield will remain at its current level.

For the three months ended September 30, 2021 and 2020, the Company’s share of distributions related to its Logan JV equity interest was $1,652 and $1,600, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statements of Assets and Liabilities. For the nine months ended September 30, 2021 and 2020, the Company’s share of distributions related to its Logan JV equity interest was $4,869 and $5,520, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $1,812 and $1,583, respectively, of income related to the Logan JV was included in interest, dividends and fees receivable on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $28 and $97, respectively, of return of capital associated with distributions declared was included in prepaid expenses and other assets on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021, distributions declared and earned of $6,452 for the twelve months ended September 30, 2021 represented a dividend yield to the Company of 7.0% based upon average capital invested. As of December 31, 2020, distributions declared and earned of $7,052 for the twelve months ended December 31, 2020 represented a dividend yield to the Company of 7.6% based upon average capital invested.

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹⁴⁾	Industry⁽¹⁷⁾	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,478	$	1,466		$	1,440
Total Australia							$	1,466		$	1,440

Canada
Avison Young Canada Inc.	Services: Business	6.15% (LIBOR +6%)	03/07/2019	01/31/2026		3,894	$	3,844		$	3,855
PNI Canada Acquireco Corp	High Tech Industries	4.58% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,597		1,592			1,596
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,953			1,994
Total Canada							$	7,389		$	7,445

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		958	$	953		$	896
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	03/08/2025		2,895		2,888			2,757
Total Germany							$	3,841		$	3,653

Luxembourg
Connect Finco S.a.r.l.	Telecommunications	4.5% (LIBOR +3.5%)	09/23/2019	12/11/2026		1,410	$	1,390		$	1,413
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,167		2,029			2,230
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	5.15% (LIBOR +5%)	09/22/2020	05/29/2026		1,742		1,718			1,504
Total Luxembourg							$	5,137		$	5,147

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.2% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,888		$	4,846
EG Group	Retail	4.15% (LIBOR +4%)	03/23/2018	02/07/2025		2,766		2,760			2,762
Total United Kingdom							$	7,648		$	7,608

United States of America
1A Smart Start LLC	Services: Consumer	5.75% (LIBOR +4.75%)	08/14/2020	08/13/2027		2,376	$	2,356		$	2,375
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	08/10/2024		3,840		3,832			3,590
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,900		1,896			1,786
Advisor Group Holdings Inc	FIRE: FINANCE	4.58% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,158		3,166			3,167
AG Parent Holdings LLC	High Tech Industries	5.08% (LIBOR +5%)	07/30/2019	07/31/2026		2,620		2,602			2,617
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,242		1,240			1,250
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.33% (LIBOR +4.25%)	07/09/2018	07/06/2025		3,880		3,869			3,453
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.58% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655		1,641			1,653
Allen Media, LLC ^(3)(11)	Media: Broadcasting & Subscription	5.5% (LIBOR +5.5%)	07/29/2021	02/10/2027		238		(2	)		1
Allen Media, LLC ⁽¹⁵⁾	Media: Broadcasting & Subscription	5.5% (LIBOR +5.5%)	07/29/2021	02/10/2027		262		259			262
Allen Media, LLC	Media: Broadcasting & Subscription	5.63% (LIBOR +5.5%)	07/29/2021	02/10/2027		2,955		2,937			2,959
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,756		1,722			1,769
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.25% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,188		3,079			3,086
AMCP Clean Acquisition Co LLC	Wholesale	4.25% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,341		2,334			1,978
AMCP Clean Acquisition Co LLC	Wholesale	4.25% (LIBOR +4.25%)	07/10/2018	06/15/2025		566		565			479

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹⁴⁾

Industry⁽¹⁷⁾

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

American Achievement Corporation ^(4)(13)

Retail

7.25% (LIBOR +6.25%)

02/11/2021

09/30/2026

1,470

American Public Education

Services: Consumer

7% (LIBOR +6%)

03/29/2021

03/29/2027

1,000

980

1,003

Ani Pharmaceuticals Inc. ⁽¹⁵⁾

Healthcare & Pharmaceuticals

6.75% (LIBOR +6%)

05/24/2021

05/24/2027

2,000

1,960

2,013

Anne Arundel Dermatology Management, LLC ⁽⁶⁾

Healthcare & Pharmaceuticals

7% (LIBOR +6%)

10/12/2020

10/16/2025

1,358

1,044

1,066

Anne Arundel Dermatology Management, LLC ⁽⁵⁾

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

451

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

2,028

1,995

2,028

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

660

659

528

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

2,007

2,000

1,605

AP Gaming I LLC

Hotel, Gaming & Leisure

4.5% (LIBOR +3.5%)

06/06/2016

02/15/2024

2,395

2,392

2,385

APFS Staffing Holdings Inc

Services: Consumer

4.83% (LIBOR +4.75%)

04/04/2019

04/15/2026

1,955

1,929

1,954

Arcline FM Holding, LLC

Aerospace & Defense

5.5% (LIBOR +4.75%)

09/02/2021

06/23/2028

2,000

1,990

2,005

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

5.5% (LIBOR +4.75%)

08/16/2019

08/27/2026

864

852

876

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,700

3,660

3,666

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,873

2,861

2,854

California Cryobank LLC

Healthcare & Pharmaceuticals

4% (LIBOR +4%)

08/03/2018

08/06/2025

3,112

3,104

Canister International Group Inc

Forest Products & Paper

4.75% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,970

1,955

1,973

Cano Health, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

06/24/2021

11/23/2027

1,990

1,985

1,994

Clear Balance Holdings, LLC

FIRE: FINANCE

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,541

4,534

4,450

Cloudera, Inc. ⁽¹⁵⁾

High Tech Industries

3.75% (LIBOR +3.75%)

08/10/2021

08/09/2028

3,000

2,970

3,001

CMI Marketing, Inc

Media: Advertising, Printing & Publishing

5.5% (LIBOR +4.75%)

03/19/2021

03/23/2028

1,995

1,977

2,012

Confluence Technologies, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

07/22/2021

07/21/2028

3,000

2,985

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,361

1,359

1,368

Drilling Info Inc.

High Tech Industries

4.33% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,364

4,352

4,310

Eisner Advisory Group LLC ⁽¹³⁾

Banking, Finance, Insurance & Real Estate

5.25% (LIBOR +5.25%)

08/16/2021

08/13/2028

182

)

Eisner Advisory Group LLC ⁽¹⁵⁾

Banking, Finance, Insurance & Real Estate

5.25% (LIBOR +5.25%)

08/16/2021

08/13/2028

1,818

1,800

1,823

Eliassen Group, LLC

Services: Business

4.25% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,603

4,591

4,557

Empower Payments Acquisition

Services: Business

4.4% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,890

3,884

EyeSouth^(7)(13)

Healthcare & Pharmaceuticals

4.5% (LIBOR +4.5%)

03/15/2021

03/21/2028

295

)

EyeSouth

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/12/2028

1,700

1,696

1,702

Gastro Health Holdco, LLC ⁽⁸⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

333

113

116

Gastro Health Holdco, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

1,000

995

1,004

Gold Standard Baking, Inc. ⁽¹⁶⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,622

2,227

666

Golden West Packaging Group LLC

Containers, Packaging & Glass

6.75% (LIBOR +5.75%)

02/09/2018

06/20/2023

4,281

4,274

4,264

Granite Holdings US Acquisition Co

Capital Equipment

4.15% (LIBOR +4%)

01/26/2021

09/30/2026

2,875

2,888

2,883

HDT Holdco, Inc.⁽¹⁵⁾

Aerospace & Defense

6.5% (LIBOR +5.75%)

06/30/2021

07/08/2027

3,950

3,851

3,911

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,362

1,356

1,334

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,522

1,683

International Textile Group Inc

Consumer goods: Durable

5.14% (LIBOR +5%)

04/20/2018

05/01/2024

919

917

887

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,637

1,628

1,371

Lereta, LLC

FIRE: REAL ESTATE

6% (LIBOR +5.25%)

07/27/2021

07/27/2028

2,000

1,980

2,005

Lifescan Global Corporation ⁽¹⁵⁾

Healthcare & Pharmaceuticals

6.15% (LIBOR +6%)

06/19/2018

10/01/2024

2,796

2,765

2,776

Liquid Tech Solutions Holdings, LLC

Transportation: Cargo

5.5% (LIBOR +4.75%)

03/18/2021

03/11/2028

1,995

1,986

1,990

LRS Holdings LLC

Environmental Industries

4.75% (LIBOR +4.25%)

08/13/2021

08/12/2028

2,500

2,488

2,503

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.42% (LIBOR +4.25%)

03/09/2018

03/17/2025

458

457

453

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.25% (LIBOR +4.25%)

03/09/2018

03/17/2025

1,773

1,769

1,755

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹⁴⁾

Industry⁽¹⁷⁾

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,216

1,164

1,134

McAfee Enterprise

High Tech Industries

5.75% (LIBOR +5%)

05/03/2021

07/27/2028

2,998

2,969

3,002

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.84% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,322

2,316

2,234

MRI Software LLC^(9)(13)

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,453

1,448

1,452

NAC Holding Corporation

FIRE: INSURANCE

6.75% (LIBOR +4.75%)

10/02/2020

09/28/2024

3,846

3,788

3,846

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

315

331

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,925

1,881

1,907

NextCare, Inc. ⁽¹⁰⁾

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

629

NextCare, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

3,750

3,733

3,731

Northern Star Holdings Inc.

Utilities: Electric

5.5% (LIBOR +4.5%)

03/28/2018

03/28/2025

4,101

4,091

Oak Point Partners, LLC

FIRE: FINANCE

6.25% (LIBOR +5.25%)

09/13/2017

09/13/2023

2,850

2,838

2,836

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,923

1,918

1,902

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

550

548

550

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

813

808

813

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,882

1,873

1,882

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,344

4,335

3,751

Parts Town ⁽¹³⁾

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

06/28/2021

10/15/2025

Parts Town

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/07/2019

10/15/2025

1,052

1,049

1,055

Patriot Rail Co LLC

Transportation: Cargo

4.65% (LIBOR +4.5%)

02/24/2021

10/19/2026

3,448

3,471

3,463

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.12% (LIBOR +5%)

10/04/2018

09/28/2025

2,910

2,893

2,864

PLH Group Inc

Energy: Oil & Gas

6% (LIBOR +6%)

08/01/2018

07/25/2023

3,450

3,418

3,428

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

05/14/2021

12/02/2025

1,995

1,958

1,995

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,960

1,948

1,969

Precisely

High Tech Industries

5% (LIBOR +4.25%)

06/24/2021

04/23/2028

2,000

1,990

2,000

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/10/2028

185

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

1,815

1,806

1,818

PSC Industrial Outsourcing, LP

Chemicals, Plastics & Rubber

4.75% (LIBOR +3.75%)

10/05/2017

10/11/2024

1,925

1,917

1,926

Pure Fishing Inc

Consumer goods: Non-Durable

4.5% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,170

1,141

1,152

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

986

976

971

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.58% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,982

1,974

1,968

Reedy Industries Inc.⁽¹²⁾

Services: Consumer

1% (LIBOR +4.5%)

08/24/2021

08/31/2028

379

)

Reedy Industries Inc.

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

1,621

1,613

1,626

RSA Security LLC

High Tech Industries

5.5% (LIBOR +4.75%)

04/16/2021

04/27/2028

2,000

1,986

1,974

RXB Holdings, Inc.⁽¹⁵⁾

Services: Business

4.5% (LIBOR +4.5%)

07/28/2021

12/20/2027

1,995

1,990

2,013

Sentry Data Systems, Inc.

High Tech Industries

0.5% (LIBOR +6.75%)

09/29/2020

10/06/2025

318

)

StubHub

High Tech Industries

4.75% (LIBOR +4.25%)

07/21/2021

02/12/2027

1,500

1,493

1,502

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

3,202

3,142

3,195

Titan Sub LLC

Aerospace & Defense

5.08% (LIBOR +5%)

09/19/2019

09/21/2026

3,201

3,175

3,222

Tupelo Buyer Inc

Transportation: Cargo

4.75% (LIBOR +3.75%)

10/02/2017

10/07/2024

2,143

2,136

2,145

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.33% (LIBOR +4.25%)

07/22/2021

11/20/2026

3,887

3,875

3,892

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,800

1,718

1,785

Yak Access LLC

Energy: Oil & Gas

5.12% (LIBOR +5%)

06/29/2018

07/11/2025

2,625

2,582

2,102

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

3,878

3,873

3,878

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

193

192

193

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹⁴⁾	Industry⁽¹⁷⁾	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Total United States of America							$	208,763	$	204,985

Total Senior Secured First Lien Term Loans							$	234,244	$	230,278

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.25% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,971	$	2,010
DiversiTech Holdings Inc	Consumer goods: Durable	8.5% (LIBOR +7.5%)	05/18/2017	06/02/2025		2,000		1,991		2,005
Gruden Acquisition Inc.	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		109		213
Total United States of America							$	4,071	$	4,228

Total Second Lien Term Loans							$	4,071	$	4,228

Equity Investments
United States of America
New Constellis Borrower LLC	Aerospace & Defense		03/27/2020			20	$	204	$	41


Total United States of America							$	204	$	41

Total Equity Investments							$	204	$	41

Total Investments							$	238,519	$	234,547


Cash equivalents
Dreyfus Government Cash Management Fund								15,686		15,686
Other cash accounts								492		492
Total Cash equivalents							$	16,178	$	16,178

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors. As of September 30, 2021, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.08%, 0.11%, 0.13% and 0.16%, respectively.
⁽²⁾	Represents fair value in accordance with ASC Topic 820.
⁽³⁾	Represents a delayed draw commitment of $235,000, which was unfunded as of September 30, 2021. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁴⁾	Represents a revolver commitment of $1,469,807, which was unfunded as of September 30, 2021. Issuer pays a 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁵⁾	Represents a revolver commitment of $451,128, of which 345,865 was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁶⁾	Represents a delayed draw commitment of $1,361,152, of which $291,776 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

⁽⁷⁾	Represents a delayed draw commitment of $295,455, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁸⁾	Represents a delayed draw commitment of $333,333, of which $218,667 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 2.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁹⁾	Represents a revolver commitment of $41,567, which was unfunded as of September 30, 2021. Issuer pays a 1.0% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹²⁾	Represents a delayed draw commitment of $629,658, of which $554,431 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays a 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities. Represents a revolver commitment of $69,981, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities. Represents a revolver commitment of $379,052, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽¹³⁾	Unfunded amount will start to accrue interest when the position is funded. 90-day LIBOR as of September 30, 2021 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹⁴⁾	All investments are pledged as collateral for loans payable unless otherwise noted.
⁽¹⁵⁾	Interest will start to accrue when the trade settles. 90-day LIBOR as of September 30, 2021 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹⁶⁾ ⁽¹⁷⁾	Loan was on non-accrual as of September 30, 2021. “FIRE” is defined as Finance, Insurance, and Real Estate

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹³⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,489	$	1,476		$	1,385

Total Australia							$	1,476		$	1,385

Canada
Avison Young Canada Inc.	Services: Business	5.25% (LIBOR +5%)	03/07/2019	01/31/2026		3,924	$	3,865		$	3,731
PNI Canada Acquireco Corp	High Tech Industries	4.65% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,653		1,647			1,588

Total Canada							$	5,512		$	5,319

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		965	$	959		$	886
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	02/26/2025		2,918		2,909			2,174
Total Germany							$	3,868		$	3,060

Luxembourg
Connect Finco SARL	Telecommunications	5.5% (LIBOR +4.5%)	09/23/2019	12/11/2026		1,421	$	1,397		$	1,429
Travelport Finance (Luxembourg) S.à r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		1,630		1,468			1,613
Travelport Finance (Luxembourg) S.à r.l.	Services: Consumer	5.25% (LIBOR +5%)	03/18/2019	05/30/2026		1,747		1,720			1,198
Total Luxembourg							$	4,585		$	4,240

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.52% (LIBOR +5.25%)	08/07/2018	06/16/2025		5,000	$	4,867		$	4,533
EG Group	Retail	4.25% (LIBOR +4%)	03/23/2018	02/07/2025		2,788		2,779			2,763

Total United Kingdom							$	7,646		$	7,296

United States of America
1A Smart Start LLC	Services: Consumer	5.75% (LIBOR +4.75%)	08/14/2020	08/13/2027		2,394	$	2,371		$	2,394
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	08/10/2024		3,870		3,860			3,618
A10 Capital, LLC	Banking, Finance, Insurance & Real Estate	7.5% (LIBOR +6.5%)	04/25/2018	05/01/2023		5,000		4,976			4,874
Acproducts Inc	Construction & Building	7.5% (LIBOR +6.5%)	02/14/2020	08/13/2025		491		499			505
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,915		1,908			1,609
Advisor Group Holdings Inc	Banking, Finance, Insurance & Real Estate	5.15% (LIBOR +5%)	07/31/2019	07/31/2026		3,182		3,165			3,162
AG Parent Holdings LLC	High Tech Industries	5.15% (LIBOR +5%)	07/30/2019	07/31/2026		2,640		2,619			2,607
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,294		1,292			1,287
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.4% (LIBOR +4.25%)	07/09/2018	07/06/2025		3,910		3,897			3,294
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.65% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,900		1,881			1,836
Allen Media LLC	Media: Broadcasting & Subscription	5.75% (LIBOR +5.5%)	02/06/2020	02/10/2027		2,977		2,964			2,971
AMCP Clean Acquisition Co LLC	Wholesale	4.47% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,359		2,351			1,628
AMCP Clean Acquisition Co LLC	Wholesale	4.49% (LIBOR +4.25%)	07/10/2018	06/15/2025		571		569			394
Anne Arundel Dermatology Management, LLC ⁽³⁾	Healthcare & Pharmaceuticals	7% (LIBOR +6%)	10/12/2020	10/16/2025		1,362		380			378
Anne Arundel Dermatology Management, LLC ^{(4) (12)}	Healthcare & Pharmaceuticals	7% (LIBOR +6%)	10/12/2020	10/16/2025		451		(9	)		(9	)

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹³⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7% (LIBOR +6%)

10/12/2020

10/16/2025

2,023

2,004

2,002

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

632

631

487

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

1,899

1,890

1,462

AP Gaming I LLC

Hotel, Gaming & Leisure

4.5% (LIBOR +3.5%)

06/06/2016

02/15/2024

2,413

2,410

2,321

APFS Staffing Holdings Inc

Services: Consumer

4.9% (LIBOR +4.75%)

04/04/2019

04/15/2026

1,970

1,940

1,939

AQA Acquisition Holding, Inc.

High Tech Industries

5.25% (LIBOR +4.25%)

10/01/2018

05/24/2023

1,954

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

6.25% (LIBOR +5.25%)

08/16/2019

08/27/2026

871

857

875

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,775

3,726

3,574

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,895

2,881

2,829

California Cryobank LLC

Healthcare & Pharmaceuticals

4.25% (LIBOR +4%)

08/03/2018

08/06/2025

3,136

3,126

3,109

Cambium Learning Group, Inc.

Services: Consumer

4.75% (LIBOR +4.5%)

12/18/2018

12/18/2025

1,960

1,890

1,953

Canister International Group Inc

Forest Products & Paper

4.9% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,985

1,968

1,979

CC Amulet Intermediate, LLC

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

06/18/2018

04/30/2024

283

281

280

CC Amulet Intermediate, LLC ⁽⁵⁾

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

05/01/2020

04/30/2024

1,251

551

539

CC Amulet Intermediate, LLC

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

06/18/2018

04/30/2024

3,375

3,356

3,341

Clear Balance Holdings, LLC

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,734

4,723

4,640

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,734

1,730

1,743

Discovery Practice Management, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

07/22/2019

06/15/2024

4,924

4,906

4,874

Drilling Info Inc.

High Tech Industries

4.4% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,398

4,384

4,270

E2open, LLC

Services: Business

6.75% (LIBOR +5.75%)

06/21/2019

11/26/2024

4,938

4,902

4,930

Eliassen Group, LLC

Services: Business

4.4% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,621

4,605

4,574

Empower Payments Acquisition

Services: Business

4.47% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,920

3,913

3,842

Gold Standard Baking, Inc. ⁽¹⁴⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,609

2,227

1,018

Golden West Packaging Group LLC

Containers, Packaging & Glass

6.25% (LIBOR +5.25%)

02/09/2018

06/20/2023

4,548

4,537

4,502

Granite Holdings US Acquisition Co

Capital Equipment

5.5% (LIBOR +5.25%)

09/25/2019

09/30/2026

2,897

2,825

2,903

Gruden Acquisition Inc.

Transportation: Cargo

6.5% (LIBOR +5.5%)

06/21/2017

08/18/2022

1,929

1,914

Hertz Corporation⁽⁶⁾

Services: Business

8.25% (LIBOR +7.25%)

10/26/2020

12/31/2021

3,000

416

538

High Street Insurance Partners, Inc.⁽⁷⁾

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.5%)

08/07/2020

12/03/2025

1,000

669

673

High Street Insurance Partners, Inc.

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.5%)

08/07/2020

12/03/2025

2,985

2,916

2,925

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,578

1,569

1,539

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,470

1,528

Institutional Shareholder Services, Inc.

Services: Business

4.75% (LIBOR +4.5%)

03/04/2019

02/26/2026

1,965

1,950

1,958

International Textile Group Inc

Consumer goods: Durable

5.37% (LIBOR +5%)

04/20/2018

05/01/2024

938

935

852

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,734

1,723

974

Lifescan Global Corporation

Healthcare & Pharmaceuticals

6.23% (LIBOR +6%)

06/19/2018

10/01/2024

1,935

1,899

1,849

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.51% (LIBOR +4.25%)

03/09/2018

03/17/2025

461

460

452

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.51% (LIBOR +4.25%)

03/09/2018

03/17/2025

1,786

1,781

1,751

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,247

1,187

1,194

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.9% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,340

2,333

2,064

MRI Software LLC⁽⁸⁾

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,448

1,442

1,444

NAC Holding Corporation

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

10/02/2020

09/28/2024

3,875

3,802

3,798

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

310

322

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,940

1,885

1,917

NextCare, Inc. ⁽⁹⁾

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

630

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹³⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

NextCare, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

3,778

3,757

3,759

Northern Star Holdings Inc.

Utilities: Electric

5.75% (LIBOR +4.75%)

03/28/2018

03/28/2025

4,133

4,121

4,050

Oak Point Partners, LLC

Banking, Finance, Insurance & Real Estate

6.25% (LIBOR +5.25%)

09/13/2017

09/13/2023

2,925

2,909

2,837

OB Hospitalist Group Inc

Healthcare & Pharmaceuticals

5% (LIBOR +4%)

08/08/2017

08/01/2024

2,192

2,186

2,170

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,938

1,932

1,893

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

555

551

555

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

819

813

819

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,897

1,885

1,897

OSM MSO, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +5%)

10/16/2018

08/09/2023

3,858

3,837

3,279

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,378

4,366

3,284

Parts Town

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/07/2019

10/15/2025

990

986

926

Patriot Rail Co LLC

Transportation: Cargo

5.49% (LIBOR +5.25%)

10/15/2019

10/11/2026

3,474

3,416

3,495

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.23% (LIBOR +5%)

10/04/2018

09/28/2025

2,933

2,912

2,581

PLH Group Inc

Energy: Oil & Gas

6.21% (LIBOR +6%)

08/01/2018

07/25/2023

3,647

3,600

3,369

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,975

1,960

1,970

Premise Health Holding Corp

Healthcare & Pharmaceuticals

3.75% (LIBOR +3.5%)

08/14/2018

07/10/2025

880

877

859

PSC Industrial Outsourcing, LP

Chemicals, Plastics & Rubber

4.75% (LIBOR +3.75%)

10/05/2017

10/11/2024

1,940

1,929

1,885

Pure Fishing Inc

Consumer goods: Non-Durable

4.65% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,179

1,145

1,141

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

993

981

938

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.65% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,998

1,987

1,969

Sentry Data Systems, Inc.

High Tech Industries

7.75% (LIBOR +6.75%)

09/29/2020

09/30/2025

3,182

3,121

3,118

Sentry Data Systems, Inc. ^{(10) (12)}

High Tech Industries

8% (LIBOR +6.75%)

09/29/2020

09/30/2025

318

)

Silverback Merger Sub Inc

High Tech Industries

4.5% (LIBOR +3.5%)

08/11/2017

08/21/2024

1,161

1,159

1,161

Starfish- V Merger Sub Inc

High Tech Industries

7% (LIBOR +6%)

11/06/2019

08/16/2024

990

929

992

Starfish- V Merger Sub Inc

High Tech Industries

6.48% (LIBOR +6.25%)

08/11/2017

08/16/2024

1,210

1,203

1,209

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

2,222

2,155

2,206

Titan Sub LLC

Aerospace & Defense

5.15% (LIBOR +5%)

09/19/2019

09/21/2026

3,225

3,195

3,221

Tupelo Buyer Inc

Transportation: Cargo

4.75% (LIBOR +3.75%)

10/02/2017

10/07/2024

2,160

2,151

2,153

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.65% (LIBOR +4.5%)

10/24/2019

11/20/2026

2,911

2,899

2,910

US Shipping Corp

Utilities: Oil & Gas

5.25% (LIBOR +4.25%)

03/09/2016

06/26/2021

206

205

186

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,875

1,774

1,813

Yak Access LLC

Energy: Oil & Gas

5.25% (LIBOR +5%)

06/29/2018

07/11/2025

2,738

2,684

2,430

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

3,908

3,901

3,869

Zenith American Holding, Inc. ⁽¹¹⁾

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

495

191

189

Total United States of America

201,384

193,379

Total Senior Secured First Lien Term Loans

224,471

214,679

Second Lien Term Loans

United States of America

AQA Acquisition Holding, Inc.

High Tech Industries

9% (LIBOR +8%)

10/01/2018

05/24/2024

1,000

994

975

DiversiTech Holdings Inc

Consumer goods: Durable

8.5% (LIBOR +7.5%)

05/18/2017

06/02/2025

2,000

1,988

1,991

Gruden Acquisition Inc.

Transportation: Cargo

9.5% (LIBOR +8.5%)

07/31/2015

08/18/2023

500

492

459

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹³⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Midwest Physician Administrative Services, LLC	Healthcare & Pharmaceuticals	7.75% (LIBOR +7%)	08/11/2017	08/15/2025		979		973		959
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		72		203
TKC Holdings Inc	Services: Business	9% (LIBOR +8%)	01/31/2017	02/01/2024		1,850		1,843		1,655
Wash Multifamily Acquisition Inc.	Services: Consumer	8% (LIBOR +7%)	05/04/2015	05/15/2023		425		425		396
Wash Multifamily Acquisition Inc.	Services: Consumer	8% (LIBOR +7%)	05/04/2015	05/12/2023		75		74		69

Total United States of America							$	6,861	$	6,707

Total Second Lien Term Loans							$	6,861	$	6,707

Equity Investments
United States of America
New Constellis Borrower LLC	Aerospace & Defense		03/27/2020			1	$	203	$	32


Total United States of America							$	203	$	32

Total Equity Investments							$	203	$	32

Total Investments							$	231,535	$	221,418


Cash equivalents
Dreyfus Government Cash Management Fund								31,632		31,632
Other cash accounts								555		555
Total Cash equivalents							$	32,187	$	32,187

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.

⁽²⁾	Represents fair value in accordance with ASC Topic 820.

⁽³⁾

Represents a delayed draw commitment of $1,362,166, of which $956,513 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁴⁾	Represents a delayed draw commitment of $451,128, which was unfunded as of December 31, 2020. Issuer pays a 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁵⁾	Represents a delayed draw commitment of $1,251,077, which $700,000 was unfunded as of December 31, 2020. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁶⁾	Represents a delayed draw commitment of $3,000,000, which $2,434,455 was unfunded as of December 31, 2020. Issuer pays a 3.75% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁷⁾

Represents a delayed draw commitment of $1,000,000, which $307,500 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

⁽⁸⁾	Represents a delayed draw commitment of $41,567, which was unfunded as of December 31, 2020. Issuer pays a 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾

Represents a delayed draw commitment of $629,847, which $554,431 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹⁰⁾	Represents a delayed draw commitment of $318,182, which was unfunded as of December 31, 2020. Issuer pays a 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹¹⁾

Represents a delayed draw commitment of $494,607, which $300,391 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹²⁾	Unfunded amount will start to accrue interest when the position is funded. 90-day LIBOR as of December 31, 2020 is shown to reflect possible projected interest rate.

⁽¹³⁾	All investments are pledged as collateral for loans payable unless otherwise noted.

⁽¹⁴⁾	Loan was on non-accrual as of December 31, 2020.

Logan JV Summarized Financial Information:

Below is certain summarized financial information for Logan JV as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and 2020:

Selected Balance Sheet Information:


	As of September 30, 2021		As of December 31, 2020
	(Dollars in thousands)		(Dollars in thousands)
Assets:
Investments at fair value (cost of $238,519 and $231,535, respectively)	$	234,547	$	221,418
Cash		16,178		32,187
Other assets		662		882
Total assets	$	251,387	$	254,487
Liabilities:
Loans payable reported net of unamortized debt issuance costs	$	145,135	$	165,830
Payable for investments purchased		11,404		-
Distribution payable		2,300		2,100
Other liabilities		1,290		1,391
Total liabilities	$	160,129	$	169,321
Members' capital	$	91,258	$	85,166
Total liabilities and members' capital	$	251,387	$	254,487

Selected Statement of Operations Information:

	For the three months ended September 30, 2021			For the three months ended September 30, 2020			For the nine months ended September 30, 2021		For the nine months ended September 30, 2020
	(Dollars in thousands)			(Dollars in thousands)			(Dollars in thousands)		(Dollars in thousands)
Interest income	$	3,452		$	3,784		$	10,604	$	19,231
Fee income		74			16			90		104
Total revenues		3,526			3,800			10,694		19,335
Credit facility expenses ⁽¹⁾	$	1,462			1,421		$	4,409	$	9,682
Other fees and expenses		103			298			292		331
Total expenses		1,565			1,719			4,701		10,013
Net investment income		1,961			2,081			5,993		9,322
Net realized gain (loss)		67			(660	)		254		(4,040	)
Net change in unrealized (depreciation) appreciation on investments		(327	)		7,069			6,146		(1,950	)
Net increase in members' capital from operations	$	1,701		$	8,490		$	12,393	$	3,332

⁽¹⁾As of September 30, 2021, Logan JV had $146,541 of outstanding debt under the credit facility with an effective interest rate of 2.88% per annum. As of December 31, 2020, Logan JV had $166,541 of outstanding debt under the credit facility with an effective interest rate of 2.46% per annum.

Revolving and Unfunded Delayed Draw Loans

For the Company’s investments in revolving and delayed draw loans, the cost basis of the investments purchased is adjusted for the cash received for the discount on the total balance committed. The fair value is also adjusted for price appreciation or depreciation on the unfunded portion. As a result, the purchase of commitments not completely funded may result in a negative value until it is offset by the future amounts called and funded.

4. Related Party Transactions

Investment Management Agreement

On January 28, 2020, the Company’s Board unanimously approved an interim investment management agreement (the “Interim Investment Management Agreement”) and a new investment management agreement (the “New Investment Management Agreement”) between the Company and the Advisor, both of which included substantially the same terms as the amended and restated investment management agreement which became effective on June 14, 2019 (the “Prior Investment Advisory Agreement”). The Interim Investment Management Agreement became effective January 31, 2020. The New Investment Management Agreement became effective May 28, 2020 upon stockholder approval obtained at a special stockholder meeting held on such date and the Interim Investment Management Agreement terminated immediately. Consistent with the terms under the Prior Investment Advisory Agreement, under the Interim Investment Management Agreement and the New Investment Management Agreement, the Advisor, subject to the overall supervision of the Company’s board of directors, manages the day-to-day operations of and provides investment advisory services to the Company.

Base Management Fee

For the three and nine months ended September 30, 2021, the base management fee was calculated at an annual rate of 1.0% of the Company’s gross assets payable quarterly in arrears on a calendar quarter basis. The 1.0% rate is pursuant to the New Investment Management Agreement and remains unchanged from the Interim Investment Management Agreement and Prior Investment Advisory Agreement.

On March 3, 2020, the Company approved a proposal from the Advisor to irrevocably waive management and incentive fees for the Company for the period from July 1, 2020 through December 31, 2020. The Advisor subsequently agreed to extend the management and incentive fee waiver through March 31, 2021.

For purposes of calculating the base management fee, “gross assets” is determined as the value of the Company’s assets without deduction for any liabilities. The base management fee is calculated based on the value of the Company’s gross assets at the end of the most recently completed calendar quarter, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter.

For the three months ended September 30, 2021 and 2020, the Company incurred base management fees of $1,048 and $0, respectively, net of management fees waived of $0 and $895, respectively. For the nine months ended September 30, 2021 and 2020, the Company incurred base management fees of $2,011 and $1,900, respectively, net of management fees waived of $879 and $895, respectively. As of September 30, 2021 and December 31, 2020, $1,048 and $0, respectively, were payable to the Advisor.

Incentive Fee

The incentive fee consists of two components as described in detail below: incentive fee on net investment income and incentive fee on capital gains. The two components are determined independent of each other.

Incentive Fee on Net Investment Income as of January 1, 2020

The Prior Investment Advisory Agreement and subsequently the Interim Investment Management Agreement and New Investment Management Agreement modified the incentive fee on net investment income as indicated below (“Reduced Incentive Fee on Net Investment Income”). The Reduced Incentive Fee on Net Investment Income is calculated by reference to the most recent trailing twelve quarter period or, if shorter, the number of quarters that have occurred since January 1, 2018 (“Trailing Twelve Quarter Period”), rather than on the standalone quarterly basis as set forth in the original investment management agreement. Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the beginning of each applicable calendar quarter comprising of the relevant Trailing Twelve Quarter Period. The hurdle amount for incentive fee based on pre-incentive fee net investment income continues to be determined on a quarterly basis and equal to 2.0% (which is 8.0% annualized) but is multiplied by the net asset value attributable to the Company’s common stock at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarter Period (also referred to as

“minimum income level”). The hurdle amount will be calculated after making appropriate adjustments for subscriptions (which includes all issuances by the Company of shares of our common stock, including issuances pursuant to its dividend reinvestment plan) and distributions that occurred during the relevant Trailing Twelve Quarter Period.

The calculation of pre-incentive fee net investment income continues to mean interest income, amortization of original issue discount, commitment and origination fees, dividend income and any other income (including any other fees, such as, structuring, diligence, managerial assistance and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the Company’s administration agreement (discussed below), and any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee and any offering expenses and other expenses not charged to operations but excluding certain reversals to the extent such reversals have the effect of reducing previously accrued incentive fees based on the deferral of non-cash interest. Furthermore, pre-incentive fee net investment income continues to include, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash.

The incentive fee based on pre-incentive net investment income for each quarter will be determined as follows:

•

The Advisor receives no incentive fee for any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the minimum income level.

•

Subject to the Incentive Fee Cap (as defined below), the Advisor receives 100% of the Company’s pre-incentive fee net investment income for the Trailing Twelve Quarters with respect to that portion of the pre-incentive net investment income for such quarter, if any, that exceeds the minimum income level but is less than 2.5% (which is 10.0% annualized) (also referred to as the “catch-up” provision); and

•

17.5% of the Company’s pre-incentive fee net investment income, if any, greater than 2.5% (10.0% annualized) for the Trailing Twelve Quarter Period.

The amount of the incentive fee on pre-incentive net investment income that will be paid for a particular quarter will equal the excess of the incentive fee so calculated minus the aggregate incentive fees on pre-incentive net investment income that were paid in respect of the eleven calendar quarters (or if shorter, the appropriate number of quarters that have occurred since January 1, 2018) included in the relevant Trailing Twelve Quarters but not in excess of the Incentive Fee Cap (as described below).

The foregoing incentive fee is subject to an Incentive Fee Cap (as defined below). The Incentive Fee Cap for any quarter is an amount equal to (a) 17.5% of the Cumulative Net Return (as defined below) during the relevant Trailing Twelve Quarter Period, minus (b) the aggregate incentive fees based on income that were paid in respect of the first eleven calendar quarters (or the portion thereof) included in the relevant Trailing Twelve Quarter Period. “Cumulative Net Return” means (x) pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarter Period minus (y) any Net Capital Loss, if any, in respect of the relevant Trailing Twelve Quarter Period. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company pays no incentive fee based on income to the Advisor for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is a positive value but is less than the incentive fee based on pre-incentive net investment income that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company pays an incentive fee based on pre-incentive fee net investment income to the Advisor equal to the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is equal to or greater than the incentive fee based on pre-incentive fee net investment income that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company pays an incentive fee based on income to the Advisor equal to the incentive fee calculated as described above for such quarter without regard to the Incentive Fee Cap. “Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

Additionally, if, at any time during the fiscal year 2020, the aggregate incentive fees on a quarterly basis, as calculated based on the amended and restated investment management agreement, described herein as the Reduced Incentive Fee on Net Investment Income is greater than the aggregate incentive fees on such applicable quarter, as calculated based on the incentive fee formula as reflected in the original investment management agreement prior to giving effect to the Prior Investment Advisory Agreement and subsequently the Interim Investment Management Agreement and New Investment Management Agreement, the Advisor will waive such excess.

For the three and nine months ended September 30, 2021 and 2020, the Company would have incurred no incentive fee related to ordinary income under the new calculation.

Incentive Fee on Net Investment Income Prior to January 1, 2018 Pursuant to the Original Investment Management Agreement

The incentive fee on net investment income is calculated, and payable, quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter, subject to a cumulative total return requirement and to deferral of non-cash amounts. The pre-incentive fee net investment income, which is expressed as a rate of return on the value of the Company’s net assets attributable to its common stock, for the immediately preceding calendar quarter, will have a 2.0% (which is 8.0% annualized) hurdle rate (also referred to as “minimum income level”). Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, expenses payable under our administration agreement (discussed below), and any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee and any offering expenses and other expenses not charged to operations but excluding certain reversals to the extent such reversals have the effect of reducing previously accrued incentive fees based on the deferral of non-cash interest. Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), and accrued income that we have not yet received in cash. The Advisor receives no incentive fee for any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the minimum income level. Subject to the cumulative total return requirement described below, the Advisor receives 100% of the Company’s pre-incentive fee net investment income for any calendar quarter with respect to that portion of the pre-incentive fee net investment income for such quarter, if any, that exceeds the minimum income level but is less than 2.5% (which is 10.0% annualized) of net assets (also referred to as the “catch-up” provision) and 20.0% of the Company’s pre-incentive fee net investment income for such calendar quarter, if any, greater than 2.5% (10.0% annualized) of net assets.

The foregoing incentive fee is subject to a total return requirement, which provides that no incentive fee in respect of the Company’s pre-incentive fee net investment income is payable except to the extent 20.0% of the cumulative net increase in net assets resulting from operations over the then current and 11 preceding calendar quarters exceeds the cumulative incentive fees accrued and/or paid for the 11 preceding quarters. In other words, any ordinary income incentive fee that is payable in a calendar quarter is limited to the lesser of (i) 20% of the amount by which our pre-incentive fee net investment income for such calendar quarter exceeds the 2.0% hurdle, subject to the “catch- up” provision, and (ii) (x) 20% of the cumulative net increase in net assets resulting from operations for the then current and 11 preceding quarters minus (y) the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is the amount, if positive, of the sum of the Company’s pre-incentive fee net investment income, base management fees, realized gains and losses and unrealized appreciation and depreciation for the then current and 11 preceding calendar quarters. In addition, the portion of such incentive fee that is attributable to deferred interest (sometimes referred to as payment-in-kind interest, or PIK, or original issue discount, or OID) will be paid to the Advisor, together with interest thereon from the date of deferral to the date of payment, only if and to the extent we actually receive such interest in cash, and any accrual thereof will be reversed if and to the extent such interest is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual. There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle rate and there is no delay of payment if prior quarters are below the quarterly hurdle rate.

Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where it incurs a loss, subject to the total return requirement and deferral of non-cash amounts. For example, if the Company receives pre-incentive fee net investment income in excess of the quarterly minimum hurdle rate, it will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to realized and unrealized capital losses. The Company’s net investment income used to calculate this component of the incentive fee is also included in the amount of its gross assets used to calculate the base management fee. These calculations will be appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

For the three and nine months ended September 30, 2020, the Company would have incurred no incentive fees related to ordinary income under the old calculation.

Incentive Fee on Net Investment Income Payable

For the three and nine months ended September 30, 2021, the Company earned no incentive fees related to the adjustment of previously deferred incentive fees payable. For the three and nine months ended September 30, 2020, the Company reversed $0 and $411, respectively, of incentive fees related to the adjustment of previously deferred incentive fees payable. As of September 30, 2021 and December 31, 2020, $0 and $156, respectively of incentive fees incurred by the Company were generated from deferred interest (i.e. PIK, certain discount accretion and deferred interest) and are not payable until such

amounts are received in cash. These amounts are reflected in accrued incentive fees on the Consolidated Statements of Assets and Liabilities.

Incentive Fee on Capital Gains

The second component of the incentive fee (capital gains incentive fee) is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment management agreement, as of the termination date). This component is equal to 17.5% of the Company’s cumulative aggregate realized capital gains from inception through the end of that calendar year, computed net of the cumulative aggregate realized capital losses and cumulative aggregate unrealized capital depreciation through the end of such year. The calculation of the capital gains incentive fee has not been modified or waived. The aggregate amount of any previously paid capital gains incentive fees is subtracted from such capital gains incentive fee calculated. There was no capital gains incentive fee payable to the Company’s Advisor under the New Investment Management Agreement, Interim Investment Management Agreement and Prior Investment Advisory Agreement as of September 30, 2021 and December 31, 2020.

GAAP Incentive Fee Accrual

GAAP requires that the incentive fee accrual be calculated assuming a hypothetical liquidation of the Company at the balance sheet date. A hypothetical liquidation considers the cumulative aggregate realized gains and losses and unrealized capital appreciation or depreciation of investments or other financial instruments, in the calculation, as an incentive fee would be payable if such realized gains and losses or unrealized capital appreciation or depreciation were realized, even though such realized gains and losses and unrealized capital appreciation or depreciation is not permitted to be considered in calculating the fee actually payable under the investment management agreement (“GAAP Incentive Fee”). There can be no assurance that such unrealized appreciation or depreciation will be realized in the future. Accordingly, such fee, as calculated and accrued, would not necessarily be payable under the investment management agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. For the three and nine months ended September 30, 2021 and 2020, the Company incurred no incentive fees related to the GAAP incentive fee.

Administration Agreement

The Company has also entered into an administration agreement with the Advisor on January 31, 2020 that includes substantially the same terms as the prior administration agreement and under which the Advisor will provide administrative services to the Company. Under the administration agreement, the Advisor performs, or oversees the performance of administrative services necessary for the operation of the Company, which include, among other things, being responsible for the financial records which the Company is required to maintain and preparing reports to the Company’s stockholders and reports filed with the SEC. In addition, the Advisor assists in determining and publishing the Company’s net asset value, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. The Company will reimburse the Advisor for its allocable portion of the costs and expenses incurred by the Advisor for overhead in performance by the Advisor of its duties under the administration agreement and the investment management agreement, including facilities, office equipment and the Company’s allocable portion of cost of compensation and related expenses of the Company’s officers and their respective staffs, as well as any costs and expenses incurred by the Advisor relating to any administrative or operating services provided by the Advisor to the Company. The Company’s board of directors reviews the allocation methodologies with respect to such expenses. Such allocated costs are reflected as administrator expenses in the accompanying Consolidated Statements of Operations. Under the administration agreement, the Advisor provides, on behalf of the Company, managerial assistance to those portfolio companies to which the Company is required to provide such assistance. To the extent that the Company’s Advisor outsources any of its functions, the Company pays the fees associated with such functions on a direct basis without profit to the Advisor.

For the three months ended September 30, 2021 and 2020, the Company incurred administrator expenses of $218 and $268, respectively. For the nine months ended September 30, 2021 and 2020, the Company incurred administrator expenses of $663 and $882, respectively. As of September 30, 2021 and December 31, 2020, $483 and $0 of administrator expenses were due to the Advisor, respectively, which was included in accrued administrator expenses on the Consolidated Statement of Assets and Liabilities.

Managed Funds

The Advisor and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, with ours. For example, the Advisor may serve as investment adviser to one or more private funds, registered closed-end funds and collateralized loan obligations (CLO). In addition, the Company’s officers may serve in similar capacities

for one or more private funds, registered closed-end funds and CLOs. The Advisor and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Advisor or its affiliates may determine that the Company should invest side- by-side with one or more other funds. The Advisor’s policies are designed to manage and mitigate the conflicts of interest associated with the allocation of investment opportunities if we are able to co-invest, either pursuant to SEC interpretive positions or an exemptive order, with other funds managed by the Advisor and its affiliates. As a result, the Advisor and/or its affiliates may face conflicts in allocating investment opportunities between us and such other entities. Although the Advisor and its affiliates will endeavor to allocate investment opportunities in a fair and equitable manner and consistent with applicable allocation procedures, it is possible that we may not be given the opportunity to participate in investments made by investment funds managed by the Advisor or its affiliates.

The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with affiliates absent an order from the SEC permitting the BDC to do so. The SEC has granted the Company the relief it sought in an exemptive application that expands the Company’s ability to co-invest in portfolio companies with certain other funds managed by the Advisor or its affiliates (“Affiliated Funds”) and, subject to certain conditions, proprietary accounts of the Advisor or its affiliates (“Proprietary Accounts”) in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions (the “Order”). Pursuant to the Order, the Company is permitted to co-invest with Affiliated Funds and/or Proprietary Accounts if, among other things, a “required majority” (as defined in Section 57(o) of the 1940 Act) or its independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with its investment objective and strategies.

Due To and From Affiliates

The Advisor pays certain other general and administrative expenses on behalf of the Company. As of September 30, 2021 and December 31, 2020, there were $269 and $124, respectively, of general and administrative expenses owed to the Advisor, which were included in due to affiliate on the Consolidated Statements of Assets and Liabilities. Additionally, as of September 30, 2021 and December 31, 2020, there were $1,754 and $104, respectively, of interest and fees owed to affiliated entities from First Eagle Alternative Capital Agent, Inc., which were included in due to affiliate on the Consolidated Statements of Assets and Liabilities.

As of September 30, 2021 and December 31, 2020, there were no fees owed from the Advisor to the Company.

The Company acts as the investment adviser to Greenway II and is entitled to receive certain fees in connection with this service. As a result, Greenway II is classified as an affiliate of the Company. As of September 30, 2021 and December 31, 2020, $81 and $84 of total fees and expenses related to Greenway II, respectively, was included in due from affiliate on the Consolidated Statements of Assets and Liabilities.

For the Company’s controlled equity investments, as of September 30, 2021, it had $1,812 of dividends receivable from Logan JV included in interest, dividends, and fees receivable on the Consolidated Statements of Assets and Liabilities. As of December 31, 2020, it had $1,583 of dividends receivable from Logan JV and $4 of interest and fees from OEM Group, LLC, included in interest, dividends, and fees receivable on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $31 and $97, respectively, of return of capital associated with distributions declared from Logan JV was included in prepaid expenses and other assets on the Consolidated Statements of Assets and Liabilities.

5. Realized Gains and Losses, net of income tax provision

The following shows the breakdown of net realized gains and losses for the three and nine months ended September 30, 2021 and 2020:

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Alex Toys, LLC ⁽¹⁾	$	—		$	—		$	(1,888	)	$	—
Allied Wireline Services, LLC ⁽²⁾		—			—			—			(5,310	)
Charming Charlie LLC ⁽³⁾		(83	)		(19	)		(83	)		(2,493	)
Copperweld Bimetallics, LLC ⁽⁴⁾		51			133			51			(124	)
Holland Intermediate Acquisition Corp. ⁽⁵⁾		—			(65	)		—			(17,390	)
New Host Holdings, LLC ⁽⁶⁾		—			—			—			(2,000	)
OEM Group, LLC ⁽⁷⁾		—			(17,520	)		—			(17,520	)
Virtus Pharmaceuticals, LLC ⁽⁸⁾		—			—			—			(929	)
Other investments ⁽⁹⁾		135			(19	)		(1,568	)		34
Loss on extinguishment of debt ⁽¹⁰⁾		—			—			(543	)		—
Net realized gains (losses)	$	103		$	(17,490	)	$	(4,031	)	$	(45,732	)

⁽¹⁾

On March 31, 2021, the Company wrote off its investment in Alex Toys, LLC. The realized loss of $1,888 was offset by a corresponding change in unrealized appreciation in the same amount.

⁽²⁾

In June 2020, the Company restructured its first lien senior secured term loan, common equity, and warrants in Allied Wireline Services, LLC into a Class A Note, Class B common equity and Class C common equity. This transaction resulted in a $5,310 realized loss, which was fully offset by a $5,802 reversal of unrealized depreciation.

⁽³⁾

On July 11, 2019, Charming Charlie LLC filed for Chapter 11 bankruptcy protection in Delaware with plans to liquidate the company and any of its remaining assets. In connection with the liquidation, the Company removed Charming Charlie from Investments, at fair value and reflected the expected liquidation proceeds as escrow and other receivables on the Consolidated Statements of Assets and Liabilities. Charming Charlie has ceased its operations and has been actively liquidating its assets. In 2020 and 2021, the Company recorded realized losses to reflect the collectability of the remaining receivable balance.

⁽⁴⁾

On September 28, 2019, the Company was repaid on its second lien term loan in connection with the sale of its controlling common and preferred equity positions in Copperweld Bimetallics LLC with proceeds received of $32,519 with an additional $1,748 in escrow proceeds that were reflected as escrow and other receivables. Subsequently, the Company collected $1,678 in escrow proceeds in cash through September 2021 and realized additional gains and losses in 2020 and 2021 to reflect the collectability of the remaining balance. In September 2021, the Company's remaining escrow proceeds were released, bringing the outstanding receivable balance to $0 as of September 30, 2021.

⁽⁵⁾

During Q2 2020, the Company received proceeds of $2,633 from the partial repayment of its first lien senior secured term loan in Holland Intermediate Acquisition Corp. An additional $1,365 in expected proceeds was reflected as escrow and other receivables on the Consolidated Statements of Assets and Liabilities as of June 30, 2020, resulting in a realized loss of $17,325. This realized loss was offset by a corresponding reversal of unrealized depreciation.

⁽⁶⁾

In April 2020, New Host Holdings, LLC was dissolved and the Company wrote off its common and preferred equity investments in New Host Holdings, LLC resulting in a $2,000 realized loss. This realized loss was equally offset by a corresponding reversal of unrealized depreciation.

⁽⁷⁾

On September 30, 2020, the Company restructured its first lien senior secured term loan and revolvers in OEM Group, LLC into a $7,500 first lien senior secured term loan and a $44,090 second lien term loan, at par. The Company did not recognize interest income on the restructured second lien term loan as of September 30, 2021 and 2020. This transaction resulted in a $17,521 realized loss, which was fully offset by a reversal of unrealized depreciation.

⁽⁸⁾

On May 7, 2020, the Company agreed to contribute its preferred and common equity interests in Virtus Pharmaceuticals, LLC to Virtus Aggregator, LLC, in exchange for member units in Virtus Aggregator, LLC. This transaction resulted in a $929 realized loss, which was partially offset by a corresponding reversal of unrealized depreciation.

⁽⁹⁾

During the three and nine months ended September 30, 2021, the Company realized a net loss reflecting the collectability of the remaining escrow and other receivables balance, which was slightly offset by a realized gain on a distribution from Gryphon Partners 3.5, L.P.

⁽¹⁰⁾

In June 2021, the Company redeemed its 2022 Notes. In connection with the redemption, the Company realized a loss on the extinguishment of debt equal to the difference between the amount paid to redeem the 2022 Notes and the Notes’ carrying value, net of deferred financing costs.

6. Net Increase (Decrease) in Net Assets Per Share Resulting from Operations

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

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Numerator—net increase (decrease) in net assets resulting from operations:	$	2,651	$	15,249	$	19,668	$	(36,763	)
Denominator—basic and diluted weighted average common shares:		30,109		31,237		30,109		31,785
Basic and diluted net increase (decrease) in net assets per common share resulting from operations:	$	0.09	$	0.49	$	0.65	$	(1.16	)

Diluted net increase (decrease) in net assets per share resulting from operations equals basic net increase (decrease) in net assets per share resulting from operations for each period because there were no common stock equivalents outstanding during the above periods.

7. Borrowings

The following shows a summary of the Company’s borrowings as of September 30, 2021 and December 31, 2020:

	As of
	September 30, 2021									December 31, 2020
Facility	Commitments		Borrowings Outstanding ⁽¹⁾		Weighted Average Borrowings Outstanding⁽²⁾		Weighted Average Interest Rate ⁽⁵⁾			Commitments		Borrowings Outstanding ⁽³⁾		Weighted Average Borrowings Outstanding ⁽⁴⁾		Weighted Average Interest Rate ⁽⁵⁾
Revolving Facility	$	150,000	$	100,500	$	66,172		3.50	%	$	100,000	$	57,661	$	71,675		3.50	%
2022 Notes		-		-		38,000		-			60,000		60,000		60,000		6.75	%
2023 Notes		51,607		51,607		51,607		6.13	%		51,607		51,607		51,607		6.13	%
2026 Notes		69,000		69,000		32,122		5.00	%		-		-		-		-
Total	$	270,607	$	221,107	$	187,901		4.58	%	$	211,607	$	169,268	$	183,282		5.45	%

(1)	As of September 30, 2021, excludes deferred financing costs of $890 for the 2023 Notes and $2,007 for the 2026 Notes, respectively, presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

(2)	Represents the weighted average borrowings outstanding for the nine months ended September 30, 2021.

(3)	As of December 31, 2020, excludes deferred financing costs of $714 for the 2022 Notes and $1,218 for the 2023 Notes presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

(4)	Represents the weighted average borrowings outstanding for the year ended December 31, 2020.

(5)	Represents the weighted average interest rate as of September 30, 2021 and December 31, 2020.

Credit Facility

On December 15, 2017, the Company entered into an amendment, or the Revolving Amendment, to its existing revolving credit agreement, or Revolving Facility. The Revolving Amendment revised the Revolving Facility dated August 19, 2015 to, among other things, extend the maturity date from August 2019 to December 2022 (with a one year term out period beginning in December 2021). The one year term out period is the one year anniversary between the revolver termination date, or the end of the availability period, and the maturity date. During this time, the Company is required to make mandatory prepayments on its loans from the proceeds it receives from the sale of assets, extraordinary receipts, returns of capital or the issuances of equity or debt. The Revolving Amendment also reduced the size of the revolver commitments from $303,500 to $275,000 and terminated the $75,000 Term Loan Facility. On March 26, 2019, the Company entered into Amendment No. 1 which amended the Revolving Facility to, among other things, reduce the size of the commitments thereunder to $190,000, provide a $20,000 letter of credit subfacility and lower the testing levels of certain financial covenants. On March 13, 2020, the Company entered into Amendment No. 4 which further amended the Revolving Facility to, among other things, reduce the size of commitments from $190,000 to $150,000. On April 14, 2020, the Company entered into Amendment No. 5 which, among other things, (i) permanently reduced the asset coverage test from a minimum of 200% to a minimum of 165%; (ii) permanently reduced the

shareholder's equity and obligor's net worth test from a minimum of $175,000 each to a minimum of $140,000 each; (iii) permanently reduced the size of the lender's commitments under the Revolving Facility from $150,000 to $120,000; and (iv) permanently increased the interest rate by 25 basis points with a mechanism for an additional 25 basis points increase dependent on certain testing levels, and added a 50 basis point LIBOR floor point. On October 16, 2020, the Company entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) reduced the size of the revolver commitment from $120,000 to $100,000, (ii) increased the applicable margin on LIBOR borrowings from 2.75% to 3.00%, (iii) permanently reduced the asset coverage test from a minimum of 165% to a minimum of 150%, and (iv) extended the maturity date from December 2022 to October 16, 2024 (with a one year term out period beginning in October 2023).

The Revolving Facility includes an accordion feature permitting the Company to expand the Revolving Facility, if certain conditions are satisfied; provided, however, that the aggregate amount of the Revolving Facility, collectively, is capped. The Third Revolving Amendment revised the cap from $300,000 to $200,000.

On March 31, 2021, the Company entered into an Incremental Commitment Agreement which increased the size of the revolver commitment from $100,000 to $125,000. On September 15, 2021, the Company entered into an Incremental Commitment and Assumption Agreement which further increased the size of the revolver commitment from $125,000 to $150,000.

The Revolving Facility, denominated in U.S. dollars, has an interest rate of LIBOR plus 3.00% (with a 0.50% LIBOR floor). The non-use fee is 1.00% annually if the Company uses 35% or less of the Revolving Facility and 0.50% annually if the Company uses more than 35% of the Revolving Facility. The Company elects the LIBOR rates on the loans outstanding on its Revolving Facility, which can have a LIBOR period that is one, two, three or nine months. The LIBOR rate on the USD borrowings outstanding on its Revolving Facility had a one month LIBOR period as of September 30, 2021.

As of September 30, 2021, the Company had USD borrowings of $100,500 outstanding under the Revolving Facility with a quarter-end interest rate of 3.50%.

The Revolving Facility generally requires payment of interest on a quarterly basis for ABR loans (commonly based on the Prime Rate or the Federal Funds Rate), and at the end of the applicable interest period for Eurocurrency loans bearing interest at LIBOR, the interest rate benchmark used to determine the variable rates paid on the Revolving Facility. All outstanding principal is due upon each maturity date. The Revolving Facility also requires a mandatory prepayment of interest and principal upon certain triggering events (including, without limitation, the disposition of assets or the issuance of certain securities).

Borrowings under the Revolving Facility are subject to, among other things, a minimum borrowing/collateral base. The Revolving Facility has certain collateral requirements and/or covenants, including, but not limited to covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and its subsidiaries, and (e) compliance with certain financial maintenance standards including (i) minimum stockholders’ equity, (ii) a ratio of total assets (less total liabilities not represented by senior securities) to the aggregate amount of senior securities representing indebtedness, of the Company and its consolidated subsidiaries, of not less than 1.50, (iii) minimum liquidity, and (iv) minimum net worth. In addition to the financial maintenance standards, described in the preceding sentence, borrowings under the Revolving Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

The credit agreement governing the Revolving Facility also includes default provisions such as the failure to make timely payments under the Revolving Facility, the occurrence of a change in control, and the failure by the Company to materially perform under the operative agreements governing the Revolving Facility, which, if not complied with, could, at the option of the lenders under the Revolver Facility, accelerate repayment under the Revolving Facility, thereby materially and adversely affecting the Company’s liquidity, financial condition and results of operations. The Company cannot be assured that it will be able to borrow funds under the Revolving Facility at any particular time or at all. The Company is currently in compliance with all financial covenants under the Revolving Facility.

As of September 30, 2021 and December 31, 2020, the carrying amount of the Company’s outstanding Revolving Facility approximated fair value. The fair values of the Company’s Revolving Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s Revolving Facility is estimated based upon market interest rates and entities with similar credit risk. As of September 30, 2021 and December 31, 2020, the Revolving Facility is deemed to be Level 3 of the fair value hierarchy.

Interest expense and related fees, excluding amortization of deferred financing costs, of $892 and $636 were incurred in connection with the Revolving Facility for the three months ended September 30, 2021 and 2020. Interest expense and related fees, excluding amortization of deferred financing costs, of $2,078 and $2,279 were incurred in connection with the Revolving Facility for the nine months ended September 30, 2021 and 2020. Amortization of deferred financing costs of $129 and $115, respectively, were incurred with the Revolving Facility for the three months ended September 30, 2021 and 2020. Amortization of deferred financing costs of $358 and $910, which included one-time accelerated amortization of $549 in connection with two separate reductions in the revolver commitment size, respectively, were incurred in connection with the Revolving Facility for the nine months ended September 30, 2021 and 2020. As of September 30, 2021 and December 31, 2020, the Company had $1,631 and $1,757, respectively, of deferred financing costs related to the Revolving Facility, which is presented as an asset on the Consolidated Statements of Assets and Liabilities.

The 1940 Act was modified by allowing a BDC to increase the maximum amount of leverage it may incur under the 1940 Act from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements are met. At the Company’s Annual Meeting of Stockholders on June 14, 2019, stockholders approved a proposal to reduce the Company’s asset coverage ratio to 150%. Such asset coverage ratio became effective on June 15, 2019. On April 14, 2020, the Company received lender consent to reduce its asset coverage ratio to 165% and on October 16, 2020, we received lender consent to reduce our asset coverage ratio to 150%. The Company’s asset coverage ratio as of September 30, 2021 was 189%.

Notes

In December 2015 and November 2016, the Company completed public offerings of $35,000 and $25,000, respectively, in aggregate principal amount of 6.75% notes due 2022, or the 2022 Notes. The 2022 Notes bore interest at a rate of 6.75% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning March 30, 2016 and traded on the New York Stock Exchange under the trading symbol “FCRZ”. On June 21, 2021, the Company repaid the 2022 Notes and they are no longer outstanding.

On October 5, 2018, the Company completed a public offering of $50,000 in aggregate principal amount of 6.125% notes due 2023 ("2023 Notes"). The 2023 Notes mature on October 30, 2023, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after October 30, 2021. The 2023 Notes bear interest at a rate of 6.125% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning December 30, 2018 and trade on the New York Stock Exchange under the trading symbol “FCRW”. On October 16, 2018, the underwriters exercised their option to purchase an additional $1,607 of 2023 Notes to cover overallotments.

On May 18, 2021, the Company completed a public offering of $60,000 in aggregate principal amount of 5.00% notes due 2026 (“2026 Notes”). The 2026 Notes mature on May 25, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 25, 2023. The 2026 Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning September 30, 2021 and trade on the New York Stock Exchange under the trading symbol “FCRX”. On June 2, 2021, the underwriters exercised their option to purchase an addition $9,000 of 2026 Notes to cover overallotments. The proceeds from this public offering were used to redeem the 2022 Notes and partially repay the Revolving Facility. The redemption of the 2022 Notes was completed on June 21, 2021. As result of this redemption, the Company recognized a loss on the extinguishment of debt of $543 during the nine months ended September 30, 2021 on the Consolidated Statements of Operations.

The 2022 Notes, 2023 Notes, and 2026 Notes are collectively referred to as the Notes, except that the 2022 Notes are not included with respect to dates subsequent to their redemption and the 2026 Notes are not included with respect to dates prior to their issuance.

As of September 30, 2021, the carrying amount and fair value of the 2023 Notes was $51,607 and $51,896, respectively. As of September 30, 2021, the carrying amount and fair value of the 2026 Notes was $69,000 and $72,450, respectively. As of December 31, 2020, the carrying amount and fair value of the 2023 Notes was $51,607 and $52,392, respectively. As of December 31, 2020, the carrying amount and fair value of the 2022 Notes was $60,000 and $60,648, respectively. The fair values of the Notes are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Notes is based on the closing price of the security, which is a Level 2 input under ASC 820 due to the trading volume.

In connection with the issuance of the 2023 and 2026 Notes, the Company incurred $4,381 of fees and expenses. These deferred financing costs are presented as a reduction to the notes payable balance and are being amortized using the effective yield method over the term of the Notes. For the three months ended September 30, 2021 and 2020, the Company amortized approximately $221 and $203 of deferred financing costs, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. For the nine months ended September 30, 2021 and 2020, the Company amortized approximately $670 and $606, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. As of September 30, 2021 and December 31, 2020, the Company had $2,897 and $1,932 remaining deferred financing costs on the Notes, which reduced the notes payable balance on the Consolidated Statements of Assets and Liabilities.

For the three months ended September 30, 2021 and 2020, the Company incurred interest expense on the Notes of $1,646 and $1,803, respectively. For the nine months ended September 30, 2021 and 2020, the Company incurred interest expense on the Notes of $5,492 and $5,408, respectively.

The indenture and supplements thereto relating to the Notes contain certain covenants, including but not limited to (i) an inability to incur additional borrowings, including through the issuance of additional debt or the sale of additional debt securities unless the Company’s asset coverage, meets the definition in the 1940 Act after such borrowing and (ii) if the Company is not

subject to the reporting requirements under the Securities and Exchange Act of 1934 to file periodic reports with the SEC the Company will provide interim and consolidated financial information to the holders of the Notes and the trustee.

8. Contractual Obligations and Off-Balance Sheet Arrangements

From time to time, the Company, or the Advisor, may become party to legal proceedings in the ordinary course of business, including proceedings related to the enforcement of the Company’s rights under contracts with its portfolio companies. Neither the Company, nor the Advisor, is currently subject to any material legal proceedings.

Unfunded commitments to provide funds to portfolio companies are not reflected on the Company’s Consolidated Statements of Assets and Liabilities. The Company’s unfunded commitments may be significant from time to time. These commitments will be subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that the Company holds. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company intends to use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments.

As of September 30, 2021 and December 31, 2020, the Company has the following unfunded commitments to portfolio companies:

	As of
	September 30, 2021		December 31, 2020
Unfunded delayed draw facilities
Advanced Web Technologies	$	798	$	798
AppFire Technologies, LLC		—		163
BCDI Rodeo Dental Buyer, LLC		660		660
CC Amulet Management, LLC		922		—
Cedar Services Group, LLC		1,415		—
ConvenientMD		1,719		—
Doxa Insurance Holdings, LLC		1,419		1,060
Groundworks Operations, LLC		3,163		928
HealthDrive Corporation		98		—
Integrated Pain Management Medical Group, Inc.		379		—
Multi Specialty Healthcare LLC		150		—
Newcleus, LLC		1,271
PDFTron Systems Inc.		194		602
Socius Insurance Services, Inc.		1,842		—
SuperHero Fire Protection, LLC		1,304		—
TMA Buyer, LLC		1,540		—
		16,874		4,211
Unfunded revolving commitments
1-800 Hansons, LLC ⁽¹⁾		103		103
A&A Global Imports, LLC		599		—
ABC Legal Services, LLC		—		663
Action Point, Inc		633		667
Advanced Web Technologies		315		297
AppFire Technologies, LLC		—		163
Aurotech, LLC		427		427
CC Amulet Management, LLC		512		—
Cedar Services Group, LLC		802		—
Certify, Inc.		53		53
Communication Technology Intermediate		—		415
ConvenientMD		688		—
Doxa Insurance Holdings, LLC		344		344
EBS Intermediate, LLC		1,667		1,667
Gener8, LLC		900		1,500
Groundworks Operations, LLC		99		99
HealthDrive Corporation⁽²⁾		2,171		1,758
iLending LLC		718		—
Integrated Pain Management Medical Group, Inc.		442		—
IRC Opco LLC		818		—
Lash Opco LLC		370		335
Loadmaster Derrick & Equipment, Inc.⁽³⁾		100		3,376
MarkLogic Corporation		278		278
Marlin DTC-LS Midco 2, LLC		143		—
Matilda Jane Holdings, Inc.		978		978
Multi Specialty Healthcare LLC		711		711
Newcleus, LLC		435		—
NWN Parent Holdings LLC		623		—
PDFTron Systems Inc.		298		213
QuarterMaster Newco, LLC		365		365
Quorum Health Resources		674		—
smarTours, LLC		399		604

Socius Insurance Services, Inc.		525		—
SolutionReach, Inc.		933		233
SuperHero Fire Protection, LLC		327		—
The Mulch & Soil Company, LLC		608		—
TMA Buyer, LLC		385		—
Women's Health USA, Inc.		—		1,500
		19,443		16,749
Unfunded commitments to investments in funds
Freeport Financial SBIC Fund LP		680		680
Gryphon Partners 3.5, L.P.		363		363
		1,043		1,043
Total unfunded commitments	$	37,360	$	22,003

₍₁₎	The Company had sole discretion as to whether to lend under this revolving commitment.

₍₂₎	Includes amounts set aside for issued standby letters of credit.

₍₃₎	As of December 31, 2020, the Company had issued a standby letter of credit of $3,096 which expired on January 19, 2021.

The changes in fair value of the Company’s unfunded commitments are considered to be immaterial as the yield determined at the time of underwriting is expected to be materially consistent with the yield upon funding.

9. Distributions

The Company has elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain its status as a RIC, the Company is required to distribute annually to its stockholders at least 90% of its investment company taxable income. To avoid a 4% excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no federal income tax.

The Company’s quarterly distributions, if any, will be determined by its board of directors. The Company intends to make distributions to stockholders on a quarterly basis of substantially all of its net investment income. Although the Company intends to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, the Company may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by its board of directors and will largely be driven by portfolio specific events and tax considerations at the time.

In addition, the Company may be limited in its ability to make distributions due to the BDC asset coverage test for borrowings applicable to the Company as a BDC under the 1940 Act.

The following table summarizes the Company’s recent distributions declared and paid or to be paid on all shares, including distributions reinvested, if any:

Date Declared	Record Date	Payment Date	Amount Per Share
August 4, 2020	September 15, 2020	September 30, 2020	$	0.10
October 30, 2020	December 15, 2020	December 31, 2020	$	0.10
March 2, 2021	March 15, 2021	March 31, 2021	$	0.10
May 4, 2021	June 15, 2021	June 30, 2021	$	0.10
August 3, 2021	September 15, 2021	September 30, 2021	$	0.10
November 2, 2021	December 15, 2021	December 31, 2021	$	0.10

The Company may not be able to achieve operating results that will allow it to make distributions at a specific level or to increase the amount of these distributions from time to time. If the Company does not distribute a certain percentage of its income annually, it will suffer adverse tax consequences, including possible loss of its status as a regulated investment company. The Company cannot assure stockholders that they will receive any distributions at a particular level.

The Company maintains an “opt in” dividend reinvestment plan for its common stockholders. As a result, unless stockholders specifically elect to have their dividends automatically reinvested in additional shares of common stock, stockholders will receive all such dividends in cash. There were no dividends reinvested for the three and nine months ended September 30, 2021 and 2020.

Under the terms of the dividend reinvestment plan, dividends will primarily be paid in newly issued shares of common stock. However, the Company reserves the right to purchase shares in the open market in connection with the implementation of the plan. This feature of the plan means that, under certain circumstances, the Company may issue shares of our common stock at a price below net asset value per share, which could cause the Company’s stockholders to experience dilution.

Distributions in excess of the Company’s current and accumulated earnings and profits would generally be treated as a return of capital to the extent of a stockholder’s adjusted tax basis in its shares. If a stockholder’s tax basis is reduced to zero, the stockholder would generally treat any remaining distributions in excess of the Company’s current and accumulated earnings and profits as a capital gain. The determination of the tax attributes of our distributions will be made annually as of the end of the fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year. If the Company had determined the tax attributes of its 2021 distributions as of September 30, 2021, 100% would be from ordinary income, 0% would be from capital gains and 0% would be a return of capital. Each year, a statement on Form 1099-DIV identifying the source of the distribution will be mailed to the Company’s stockholders of record.

The Company may generate qualified interest income and short-term capital gains that may be exempt from United States withholding tax when distributed to foreign accounts. A RIC is permitted to designate distributions in the form of dividends that represent interest income from U.S. sources (commonly referred to as qualified interest income) and short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

10. Financial Highlights

	For the nine months ended September 30,
	2021			2020
Per Share Data⁽¹⁾:
Net asset value, beginning of period	$	6.15		$	7.64
Net investment income, after taxes⁽²⁾		0.31			0.24
Net realized (loss) on investments⁽²⁾		(0.14	)		(1.44	)
Net change in unrealized appreciation (depreciation) on investments⁽²⁾		0.48			0.03
Provision for taxes on unrealized gain on investments⁽²⁾		—			0.01
Net increase (decrease) in net assets resulting from operations		0.65			(1.16	)
Accretive effect of repurchase of common stock		—			0.01
Dilutive effect of share issuance		—			(0.18	)
Accretive effect of tender offer		—			0.34
Distributions to stockholders from net investment income		(0.30	)		(0.40	)
Net asset value, end of period	$	6.50		$	6.25
Per share market value at end of period	$	4.41		$	2.48
Total return⁽³⁾⁽⁵⁾		29.40	%		(54.51	%)
Shares outstanding at end of period		30,109			30,109
Ratio/Supplemental Data:
Net assets at end of period	$	195,830		$	188,092
Ratio of total expenses to average net assets ^(4)(6)(7)		9.82	%		10.35	%
Ratio of net investment income to average net assets ⁽⁶⁾⁽⁸⁾		6.46	%		4.96	%
Portfolio turnover		17.79	%		14.63	%

⁽¹⁾	Includes the cumulative effect of rounding.
⁽²⁾	Calculated based on weighted average common shares outstanding.
⁽³⁾	Total return is based on the change in market price per share during the period. Total return takes into account dividends and distributions, if any, reinvested in accordance with the Company's dividend reinvestment plan.
⁽⁴⁾	For the nine months ended September 30, 2021 and 2020 the ratio components included 1.41% and 1.32% of net base management fee, 0.00% and (0.28%) of net incentive fee, 6.03% and 6.37% of borrowing costs, 2.41% and 2.71% of other operating expenses, and (0.03%) and 0.05% of the impact of all taxes, respectively.

⁽⁵⁾	Not annualized
⁽⁶⁾	Annualized, except for taxes and the related impact of incentive fees.
⁽⁷⁾	Ratio of total expenses before management fee waiver to average net assets was 10.44% and 10.96% for the nine months ended September 30, 2021 and 2020, respectively.
⁽⁸⁾	Ratio of net investment income before management fee waiver to average net assets was 5.85% and 4.35% for the nine months ended September 30, 2021 and 2020, respectively.

11. Stock Repurchase Program

Stock Repurchase Program

On December 16, 2019, the Company’s board of directors authorized a new $10,000 stock repurchase program, which expired on December 16, 2020. Effective December 17, 2019, the Company adopted a stock trading plan (the “Plan”) in accordance with Rule 10b5-1 of the Exchange Act, which was terminated on March 10, 2020. On May 4, 2021, the Company’s board of directors authorized a new $10,000 stock repurchase program, which, unless extended by the board of directors, will expire on May 5, 2022 and may be modified or terminated at any time, for any reason, and without prior notice.

The Company has provided its stockholders with notice of its ability to repurchase shares of its common stock in accordance with 1940 Act requirements. The Company retired all shares of common stock purchased in connection with the stock repurchase program and plans to retire all shares of common stock that it purchases in the future in connection with the program. The following table summarizes our share repurchases under the Company’s stock repurchase program for the three and nine months ended September 30, 2021 and 2020:

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Dollar amount repurchased⁽¹⁾	$	—	$	—	$	—	$	2,161
Shares repurchased		—		—		—		341
Average price per share (including commission)	$	—	$	—	$	—	$	6.33
Weighted average discount to net asset value		—		—		—		16.99	%

⁽¹⁾

Effective December 17, 2019, the Company adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act. All shares repurchased during the nine months ended September 30, 2020 were under the Plan, which was terminated on March 10, 2020.

12. Subsequent Events

From October 1, 2021 through November 4, 2021, the Company made new investments totaling $11,911 at par and follow-on investments, including revolver and delayed draw fundings, totaling $1,131 at par with a combined weighted average yield of 6.5%.

On October 26, 2021, the Company received total proceeds of $21,611 from the repayment of its first lien senior secured term loan investment at par and sale of its common equity investment in Igloo Products Corp.

On November 2, 2021, the Company’s board of directors declared a dividend of $0.10 per share payable on December 31, 2021 to stockholders of record at the close of business on December 15, 2021.

Schedule 12-14

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

September 30, 2021

(dollar amounts in thousands)

(unaudited)

Type of Investment/Portfolio company ^(1)(2)(9)	Principal/No.of Shares /No.of Units		Purchases ⁽¹¹⁾		Sales and Repayments			Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Dividends/ Interest Income/ Other Income		Fair Value at September 30, 2021
Control Investments
—51.68% of net asset value
Control Investments - Majority Owned
—51.68% of net asset value
First lien senior secured debt
—9.00% of net asset value
Southeast
—4.21% of net asset value
Loadmaster Derrick & Equipment, Inc. - Senior secured revolving term loan^(3)(12) 11.3% (LIBOR+ 10.3% PIK) due 12/31/2020		10,291	$	1,018	$	(750	)	$	—	$	594	$	—	$	8,232
Loadmaster Derrick & Equipment, Inc. - Senior secured term loan 11.3% (LIBOR + 10.3% PIK) ^(3)(12)due 12/31/2020		12,608		—		—			—		—		—		—
Loadmaster Derrick & Equipment, Inc. - Senior secured term loan 13.0% (LIBOR + 12% PIK) ^(3)(12)due 12/31/2020		3,034		—		—			—		—		—		—
Subtotal Southeast			$	1,018	$	(750	)	$	—	$	594	$	—	$	8,232

Southwest
—4.79% of net asset value
OEM Group, LLC - Senior secured term loan 8.5% (LIBOR+7.5%) due 9/30/2025		9,385	$	885	$	—		$	—	$	—	$	592	$	9,385
Subtotal Southwest			$	885	$	—		$	—	$	—	$	592	$	9,385

Subtotal first lien senior secured debt			$	1,903	$	(750	)	$	—	$	594	$	592	$	17,617

Second lien debt
—5.40% of net asset value
Southeast
—5.40% of net asset value

OEM Group, LLC - Second Lien revolver 10.0% PIK due 9/30/2025 ⁽¹⁰⁾		48,667	$	—	$	—		$	—	$	755	$	—	$	10,578
Subtotal Southeast			$	—	$	—		$	—	$	755	$	—	$	10,578

Subtotal second lien debt			$	—	$	—		$	—	$	755	$	—	$	10,578

Equity Investments
—0.00% of net asset value

Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc.⁽⁵⁾		2,956	$	—	$	—		$	—	$	—	$	—	$	—
Loadmaster Derrick & Equipment, Inc.⁽⁶⁾		12,131		—		—			—		—		—		—
Subtotal Southeast			$	—	$	—		$	—	$	—	$	—	$	—

Southwest
—0.00% of net asset value
OEM Group, LLC ⁽⁶⁾		20,000	$	—	$	—		$	—	$	—	$	—	$	—
Subtotal Southwest			$	—	$	—		$	—	$	—	$	—	$	—

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

September 30, 2021

(dollar amounts in thousands)

(unaudited)

Type of Investment/Portfolio company ^(1)(2)(9)	Principal/No.of Shares /No.of Units	Purchases ⁽¹¹⁾		Sales and Repayments			Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Dividends/ Interest Income/ Other Income		Fair Value at September 30, 2021

Subtotal equity investments		$	—	$	—		$	—	$	—	$	—	$	—

Investments in funds
—37.28% of net asset value
Northeast
—37.28% of net asset value
First Eagle Logan JV, LLC ^{(4) (7)}		$	—	$	(171	)	$	—	$	5,045	$	4,869	$	73,007
Subtotal investments in funds		$	—	$	(171	)	$	—	$	5,045	$	4,869	$	73,007

Total Control Investments - Majority Owned		$	1,903	$	(921	)	$	—	$	6,394	$	5,461	$	101,202

Total Control Investments		$	1,903	$	(921	)	$	—	$	6,394	$	5,461	$	101,202

Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund, II LLC ^{(4) (8)}		$	—	$	—		$	—	$	—	$	123	$	1
Subtotal Northeast		$	—	$	—		$	—	$	—	$	123	$	1

Subtotal investments in funds		$	—	$	—		$	—	$	—	$	123	$	1

Total Affiliate Investments		$	—	$	—		$	—	$	—	$	123	$	1

Total Control and Affiliate Investments—— 51.68% of net asset value		$	1,903	$	(921	)	$	—	$	6,394	$	5,584	$	101,203

⁽¹⁾	The principal amount and ownership detail as shown in the Consolidated Schedule of Investments as of September 30, 2021. Unless otherwise noted, all investments are valued using significant unobservable inputs.
⁽²⁾	Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, or Alternate Base Rate, or ABR, which are effective as of September 30, 2021. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, and ABR rates are typically indexed to the current prime rate or federal funds rate. Each of LIBOR and ABR rates may be subject to interest floors. As of September 30, 2021, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.08%, 0.11%, 0.13%, and 0.16%, respectively. As of December 31, 2020, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.14%, 0.19%, 0.24%, and 0.26%.
⁽³⁾	Loan was on non-accrual as of September 30, 2021.
⁽⁴⁾	Investment is measured at fair value using net asset value.
⁽⁵⁾	Preferred Stock.
⁽⁶⁾	Common stock and member interest.
⁽⁷⁾	Together with Perspecta Trident LLC, or Perspecta, an affiliate of Perspecta Trust LLC, the Company invests in First Eagle Logan JV LLC, of Logan JV. Logan JV is capitalized through equity contributions from its members and investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

September 30, 2021

(dollar amounts in thousands)

(unaudited)

⁽⁸⁾	Income includes certain fees relating to investment management services provided by the Company, including a base management fee, a performance fee and a portion of the closing fees on each investment transaction.
⁽⁹⁾	All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.
⁽¹⁰⁾	Restructured loan for which income is not being recognized as of September 30, 2021.
⁽¹¹⁾	Includes reorganizations and restructuring of investments.
⁽¹²⁾	On January 1, 2021, the loan was placed in forbearance, with a forbearance termination date of December 31, 2021.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from those contained in or implied by the forward-looking statements. See “Cautionary Statement Regarding Forward-Looking Statements” following the Table of Contents for further information regarding forward-looking statements. Certain amounts and percentages in this discussion and analysis have been rounded for convenience of presentation. Unless otherwise noted, the figures in the following discussions are unaudited.

Overview

First Eagle Alternative Capital BDC, Inc., or we, us, our or the Company, was organized as a Delaware corporation on May 26, 2009 and initially funded on July 23, 2009. We commenced principal operations on April 21, 2010. On January 31, 2020, First Eagle Alternative Credit, LLC, our investment advisor (the “Advisor”), and First Eagle Investment Management, LLC (“First Eagle”) completed its acquisition of the Advisor (the “Transaction”) and, in conjunction with the completion of the Transaction, the Advisor’s name was changed to First Eagle Alternative Credit, LLC. Our investment activities are managed by First Eagle Alternative Credit, LLC (“FEAC”) and supervised by our board of directors, a majority of whom are independent of FEAC and its affiliates. Our investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated investments in debt and equity securities of middle market companies.

As of September 30, 2021, we, together with our credit-focused affiliates, collectively had $20.1 billion of assets under management. This amount included our assets, assets of the managed funds and a separate account managed by us, and assets of the collateralized loan obligations (CLOs), separate accounts and various fund formats, as managed by the investment professionals of the Advisor or its consolidated subsidiary.

We are a direct lender to middle market companies and invest primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, we also make second lien, subordinated, or mezzanine, debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity investments. Our first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and our unitranche loans will expose us to the risks associated with second lien and subordinated loans to the extent we invest in the “last-out” tranche or subordinated tranche (or piece) of the unitranche loan. We may also provide advisory services to managed funds.

We are an externally managed, non-diversified, closed-end investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940 Act, as amended, or the 1940 Act. As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. Government securities and high-quality debt investments that mature in one year or less.

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.” Under the relevant U.S. Securities and Exchange Commission, or SEC, rules the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States.

We are also registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

Since April 2010, after we completed our initial public offering and commenced principal operations, through September 30, 2021, we have been responsible for making, on behalf of ourselves, our managed funds and separately managed account, over $2.4 billion in aggregate commitments into 168 separate portfolio companies through a combination of both initial and follow-on investments. Since April 2010 through September 30, 2021, we, along with our managed funds and separately managed account, have received $1.9 billion of gross proceeds from the realization of investments. The Company alone has received $1.6 billion of gross proceeds from the realization of its investments during this same time period. As of September 30, 2021, our managed fund, First Eagle Greenway Fund II, LLC, or Greenway II, and its separately managed account, collectively Greenway II, have received $209.7 million, or 112.1% of the committed capital.

We have elected to be treated for tax purposes as a regulated investment company, or RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. To qualify as a RIC, we must, among other things, meet certain source of income and asset diversification requirements. As a RIC, we generally will not have to pay corporate-level income taxes on any income we distribute to our stockholders.

COVID-19 Developments

There is an ongoing COVID-19 pandemic, which has spread to over 200 countries and territories, including the United States, and has spread to every state in the United States. The global impact of the pandemic has been rapidly evolving, and as cases of COVID-19, including new variants, have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of non-essential businesses. Such actions have created disruption in global supply chains, and adversely impacted many industries. The pandemic has had a continued adverse impact on economic and market conditions and has triggered a period of global economic slowdown.

Although vaccines have been widely distributed in the U.S., certain U.S. states are planning on reopening and we believe the economy is beginning to rebound in certain respects, the uncertainty surrounding the COVID-19 pandemic, including uncertainty regarding new variants of COVID-19 and acceptance of vaccines and other factors have and may continue to contribute to significant volatility in the global markets. COVID-19 and the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our performance, financial condition, results of operations and ability to pay distributions.

Portfolio Composition and Investment Activity

Portfolio Composition

As of September 30, 2021, we had $402.0 million of portfolio investments (at fair value), which represents a $64.3 million, or 19.0% increase from the $337.7 million (at fair value) as of December 31, 2020. Our portfolio consisted of 68 investments, including Greenway II, as of September 30, 2021, compared to 51 portfolio investments, including Greenway II, as of December 31, 2020. As of September 30, 2021, we had $101.2 million of controlled portfolio investments (at fair value) in three portfolio companies, which represents a $7.4 million, or 7.9%, increase from $93.8 million (at fair value) as of December 31, 2020 in three portfolio companies. The increase in controlled portfolio companies was largely the result of an increase in fair value of First Eagle Logan JV, LLC, or Logan JV. Our average controlling equity position at September 30, 2021 was approximately $28.7 million and $14.1 million at cost and fair value, respectively. Our investment in the Logan JV represented 18.2% and 20.2% of our portfolio investments at fair value as of September 30, 2021 and December 31, 2020, respectively. We are currently limiting new investments in new portfolio companies to 2.5% of our investment portfolio based upon the most recent fair market value.

The following table shows certain portfolio highlights based on cost and fair value (in millions).

	As of
	September 30, 2021				December 31, 2020
	Cost		Fair Value		Cost		Fair Value
Largest portfolio company investment - Logan JV	$	92.0	$	73.0	$	92.1	$	68.1
Largest portfolio company investment - excluding Logan JV, Greenway II, investments where we hold controlling equity position and investments where we hold equity only		23.3		22.2		23.3		21.6
Average portfolio company investment		6.6		5.9		7.5		6.4
Average portfolio company investment - excluding Logan JV, Greenway II, investments where we hold controlling equity position and investments where we hold equity only		5.1		5.1		5.8		5.7
Total investments where we hold controlling equity position and investments where we hold equity only, including Greenway II		67.0		39.2		67.8		35.5

At September 30, 2021 and at December 31, 2020, based upon fair value, 93.2% and 96.8%, respectively, of our income-producing debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR.

The following table shows the weighted average yield by investment category at their current cost.

	As of
Description:	September 30, 2021			December 31, 2020
First lien senior secured debt ^(1)(4)(5)		7.2	%		7.4	%
Second lien debt ⁽¹⁾⁽⁴⁾		2.3	%		4.2	%
Subordinated debt		11.0	%		11.0	%
Debt and income-producing investments ^(1)(2)(4)		6.9	%		7.0	%
Logan JV ⁽³⁾		7.0	%		7.6	%
All investments including Logan JV ^(1)(3)(4)		6.9	%		7.1	%

⁽¹⁾	Includes all loans on non-accrual status and restructured loans for which income is not being recognized as of September 30, 2021 and December 31, 2020.

⁽²⁾	Includes yields on controlled investments, but excludes the yield on the Logan JV.

⁽³⁾

As of September 30, 2021 and December 31, 2020, the dividends declared and earned of $6.5 million and $7.1 million for the twelve months ended September 30, 2021 and December 31, 2020, respectively, represented a yield to us of 7.0% and 7.6%, respectively, based on average capital invested. We expect the dividend yield to fluctuate as a result of the timing of additional capital invested, the changes in asset yields in the underlying portfolio and the overall performance of the Logan JV investment portfolio.

⁽⁴⁾

Excluding restructured loans for which income is not being recognized as of September 30, 2021, the weighted average yield would be 7.3% on first lien senior secured debt, 11.7% on second lien debt, 7.5% on debt and income-producing investments and 7.4% on all investments including Logan JV. Excluding restructured loans for which income is not being recognized as of December 31, 2020, the weighted average would be 7.6% on first lien senior secured debt, 11.8% on second lien debt, 7.8% on debt and income-producing investments and 7.7% on all investments including Logan JV.

⁽⁵⁾	The broadly syndicated loans are included as first lien senior secured debt. As of September 30, 2021, the weighted average yield of only the broadly syndicated loans is 5.7%.

The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our fees and expenses. The weighted average yield was computed using the effective interest rates as of September 30, 2021, including accretion of original issue discount and loan origination fees. This weighted average yield reflects the impact of loans on non-accrual status and restructured loans for which income is not being recognized as of September 30, 2021. There can be no assurance that the weighted average yield will remain at its current level. As of September 30, 2021 and December 31, 2020, 1.8% and 1.5%, respectively, of our investment portfolio at fair value was comprised of non-income producing equity and warrant investments. We intend to continue to reduce our non-income producing investments in 2021 and beyond. No assurance can be given that we will be successful in achieving this target.

As of September 30, 2021 and December 31, 2020, portfolio investments, in which we have debt investments, had a median adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of approximately $19.9 million and $18.5 million, respectively, based on the latest available financial information provided by the portfolio companies for each of these periods. As of September 30, 2021 and December 31, 2020, our median attachment point in the capital structure of our debt investments in portfolio companies is approximately 4.2 times and 4.3 times the portfolio company’s EBITDA, respectively, based on our latest available financial information for each of these periods.

We expect the percentage of our portfolio investments in unsponsored investments to decrease significantly over time as we work through restructurings, which may include providing additional liquidity through revolving loans, and ultimately exit our unsponsored investments. However, these portfolio investments may require follow-on capital as we work through restructurings, which will increase our exposure to these investments. Going forward, we expect unsponsored investments we make, if any, would only be in first lien senior secured investments. As of September 30, 2021, our portfolio of unsponsored debt investments included four investments, excluding our investment in Wheels Up Partners, LLC, which is a non-income producing equity security. Three are performing at or above our expectations and have an Investment Score of 1 or 2. The other unsponsored investment has an Investment Score of 5. As of December 31, 2020, our portfolio of unsponsored debt investments included two investments, excluding our investment in Wheels Up Partners, LLC. One was performing at or above our expectations and had an Investment Score of 2. The other unsponsored investment had an Investment Score of 5.

As of September 30, 2021, we have closed portfolio investments with 102 different sponsors since inception. As of December 31, 2020, we had closed portfolio investments with 86 different sponsors since inception.

The following table summarizes sponsored and unsponsored investments based on amortized cost and fair value (in millions).

	As of September 30, 2021							As of December 31, 2020
	Amortized Cost		Fair Value		Fair Value as % of Total			Amortized Cost		Fair Value		Fair Value as % of Total
Sponsored Investments ⁽¹⁾	$	298.8	$	288.2		87.6	%	$	257.8	$	239.9		90.0	%
Unsponsored Investments ⁽¹⁾		58.2		40.8		12.4	%		46.4		26.7		10.0	%
Total	$	357.0	$	329.0		100.0	%	$	304.2	$	266.6		100.0	%

⁽¹⁾	Excludes Greenway II and the Logan JV.

The following table summarizes the amortized cost and fair value of investments as of September 30, 2021 (in millions).

Description	Amortized Cost		Percentage of Total			Fair Value ⁽¹⁾		Percentage of Total
First lien senior secured debt	$	304.0		67.7	%	$	295.9		73.6	%
Investment in Logan JV		92.0		20.5	%		73.0		18.2	%
Second lien debt		28.3		6.3	%		16.6		4.1	%
Equity investments		15.4		3.5	%		7.2		1.8	%
Subordinated debt		6.0		1.3	%		6.0		1.5	%
Investments in funds		3.3		0.7	%		3.3		0.8	%
Total investments	$	449.0		100.0	%	$	402.0		100.0	%

All investments are categorized as Level 3 in the fair value hierarchy, except for i) our equity investment in Wheels Up Experience Inc. which is categorized as Level 1 in the fair value hierarchy and noted as such on the Consolidated Schedule of Investments as of September 30, 2021, ii) certain broadly syndicated loans which are categorized as Level 2 in the fair value hierarchy and noted as such on the Consolidated Schedule of Investments as of September 30, 2021 and iii) investments in funds and the Logan JV, which are excluded from the fair value hierarchy in accordance with ASU 2015-07. These assets are valued at net asset value.

The following table summarizes the amortized cost and fair value of investments as of December 31, 2020 (in millions).

Description	Amortized Cost		Percentage of Total			Fair Value ⁽¹⁾		Percentage of Total
First lien senior secured debt	$	245.9		61.6	%	$	233.7		69.2	%
Investment in Logan JV		92.1		23.1	%		68.1		20.2	%
Second lien debt		34.7		8.7	%		22.1		6.5	%
Subordinated debt		5.8		1.5	%		5.8		1.7	%
Equity investments		17.4		4.3	%		5.1		1.5	%
Investments in funds		3.4		0.8	%		2.9		0.9	%
Total investments	$	399.3		100.0	%	$	337.7		100.0	%

⁽¹⁾

All investments are categorized as Level 3 in the fair value hierarchy, except for investments in funds and the Logan JV, which are excluded from the fair value hierarchy in accordance with ASU 2015-07. These assets are valued at net asset value.

We expect the percent of our core assets, which we define as first lien senior secured loans and the Logan JV, to continue to increase as a percent of total investments as we exit non-qualifying BDC assets as defined under the 1940 Act and our controlled equity investments, through sales or repayments, and redeploy these proceeds. We intend to continue our efforts to reposition the portfolio towards these core assets, which we believe will reduce our exposure to portfolio company risks and potential changes in interest rates.

The following is a summary of the industry classification in which we invest as of September 30, 2021 (in millions).

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds and Vehicles	$	95.2	$	76.2		19.00	%		38.97	%
Healthcare & Pharmaceuticals		63.1		63.8		15.89	%		32.59	%
Consumer Goods: Non-Durable		57.9		55.7		13.85	%		28.44	%
High Tech Industries		31.1		30.5		7.57	%		15.55	%
Capital Equipment		45.7		25.2		6.27	%		12.87	%
Services: Consumer		24.6		24.5		6.08	%		12.49	%
Services: Business		22.3		22.8		5.67	%		11.65	%
Retail		12.8		13.8		3.44	%		7.06	%
Banking		12.7		12.8		3.19	%		6.54	%
Finance		12.2		12.3		3.06	%		6.29	%
Energy: Oil & Gas		22.0		12.3		3.06	%		6.27	%
Insurance		9.3		9.4		2.34	%		4.81	%
Environmental Industries		7.3		7.3		1.81	%		3.73	%
Media: Broadcasting & Subscription		5.2		5.2		1.29	%		2.66	%
Containers, Packaging, & Glass		4.1		4.2		1.05	%		2.15	%
Automotive		3.9		4.0		0.99	%		2.03	%
Chemicals, Plastics, & Rubber		3.8		3.9		0.96	%		1.97	%
Construction & Building		3.4		3.4		0.86	%		1.76	%
Telecommunications		3.3		3.3		0.81	%		1.67	%
Hotel, Gaming, & Leisure		3.0		3.1		0.76	%		1.57	%
Transportation: Consumer		1.0		3.0		0.75	%		1.55	%
Sovereign & Public Finance		2.8		2.9		0.71	%		1.46	%
Transportation: Cargo		2.3		2.4		0.59	%		1.21	%
Total Investments	$	449.0	$	402.0		100.00	%		205.29	%

The following is a summary of the industry classification in which we invest as of December 31, 2020 (in millions).

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds and Vehicles	$	92.1	$	68.1		20.17	%		36.78	%
Healthcare & Pharmaceuticals		47.9		47.4		14.03	%		25.58	%
Consumer Goods: Non-Durable		49.8		44.0		13.03	%		23.75	%
High Tech Industries		28.3		28.2		8.36	%		15.23	%
Finance		29.4		28.2		8.35	%		15.23	%
Capital Equipment		44.9		23.5		6.97	%		12.71	%
Services: Business		22.1		22.6		6.69	%		12.20	%
Services: Consumer		22.0		21.7		6.42	%		11.71	%
Banking		12.0		11.9		3.52	%		6.41	%
Energy: Oil & Gas		21.8		11.3		3.36	%		6.12	%
Retail		8.8		8.8		2.60	%		4.74	%
Telecommunications		8.3		8.3		2.46	%		4.48	%
Chemicals, Plastics, & Rubber		3.3		3.3		0.97	%		1.76	%
Construction & Building		3.1		3.2		0.95	%		1.73	%
Transportation: Consumer		1.0		2.6		0.76	%		1.39	%
Insurance		2.5		2.5		0.75	%		1.37	%
Containers, Packaging, & Glass		2.0		2.1		0.61	%		1.11	%
Total Investments	$	399.3	$	337.7		100.00	%		182.30	%

Investment Activity

The following is a summary of our investment activity, presented on a cost basis, for the three and nine months ended September 30, 2021 and 2020 (in millions).

	Three months ended September 30,						Nine months ended September 30,
		2021			2020			2021			2020
New portfolio investments	$	33.4		$	10.9		$	99.4		$	28.5
Existing portfolio investments:
Follow-on investments ⁽¹⁾		4.2			0.3			8.9			0.6
Delayed draw and revolver investments ⁽¹⁾		4.1			0.5			8.4			21.2
Total existing portfolio investments		8.3			0.8			17.3			21.8
Total portfolio investment activity	$	41.7		$	11.7		$	116.7		$	50.3
Number of new portfolio investments		8			4		26				7
Number of follow-on investments		5			4		10				16
First lien senior secured debt	$	41.6		$	11.7		$	116.6		$	50.3
Equity investments		0.1			—			0.1			—
Total portfolio investments	$	41.7		$	11.7		$	116.7		$	50.3
Weighted average yield of new debt investments		7.5	%		8.8	%		7.2	%		6.8	%
Weighted average yield, including all new income-producing investments		7.5	%		8.8	%		7.2	%		6.8	%

⁽¹⁾	Includes follow-on investments in controlled investments. Refer to Schedule 12-14 for additional detail.

For the three and nine months ended September 30, 2021, we had prepayments and sales of our investments, including any prepayment premiums, totaling $33.8 million and $67.1 million, respectively. For the three and nine months ended September 30, 2020, we had prepayments and sales of our investments, including any prepayment premiums, totaling $12.0 million and $54.5 million, respectively. Please refer to “Results of Operations— Net Realized Gains and Losses, net of income tax provision” for additional details surrounding certain investments that were sold.

The following are proceeds received from notable prepayments, sales and other activity related to our investments (in millions):

For the nine months ended September 30, 2021

•

Repayment of a first lien senior secured term loan and revolving loan in Women’s Health USA, Inc., which resulted in proceeds of $8.6 million, including a prepayment premium;

•

Repayment of a first lien senior secured term loan in Whitney, Bradley & Brown, Inc., which resulted in proceeds of $7.5 million, including a prepayment premium;

•

Repayment of first lien senior secured term loans, a revolving loan, and delayed draw loans in PDFTron Systems Inc., which resulted in proceeds of $7.5 million, including a prepayment premium;

•

Repayment of a first lien senior secured term loan in ABC Legal Services, LLC, which resulted in proceeds of $6.7 million;

•

Repayment of a first lien senior secured term loan in Finxera Intermediate, LLC, which resulted in proceeds of $6.5 million;

•

Repayment of a first lien senior secured term loan and delayed draw loans in AppFire Technologies, LLC at par, which resulted in proceeds of $3.2 million, including a prepayment premium of $0.1 million;

•

Repayment of a first lien senior secured term loan in Neiman Marcus Group LTD LLC, which resulted in proceeds of $3.0 million, including a prepayment premium; and

•

Repayment of a first lien senior secured term loan and revolving loan in Communication Technology Intermediate, which resulted in proceeds of $8.6 million, including a prepayment premium of $0.2 million.

For the nine months ended September 30, 2020

•

Proceeds of $23.3 million from the sale of eight senior secured broadly syndicated investments made in December 2019
resulting in a $0.1 million net realized gain;

•

Repayment of a first lien senior secured term loan in It’s Just Lunch International LLC at par, which resulted in proceeds of $5.5 million;

•

Repayment of a first lien senior secured term loan on Holland Intermediate Acquisition Corp. with proceeds received of
$2.6 million and additional receivable accrual of $1.3 million. A realized loss of $17.3 million was recorded which was
offset by a corresponding reversal of unrealized depreciation; and

•

Sale of a first lien senior secured term loan in MB Medical Operations LLC with proceeds received of $2.6 million,
resulting in a nominal gain.

Our level of investment activity can 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, the general economic environment and the competitive environment for the types of investments we make. The frequency and volume of any prepayments may fluctuate significantly from period to period. The future adverse impact of COVID-19 on the broader markets in which we invest cannot currently be accurately predicted and future investment activity of the Company will be subject to these effects and related uncertainties.

Aggregate Cash Flow Realized Gross Internal Rate of Return

Since April 2010, after we completed our initial public offering and commenced principal operations, through September 30, 2021, our fully exited investments have resulted in an aggregate cash flow realized gross internal rate of return to us of 10.7% (based on cash invested of $1.6 billion and total proceeds from these exited investments of $2.0 billion). 76.3% of these exited investments resulted in an aggregate cash flow realized gross internal rate of return to us of 10% or greater. Internal rate of return, or IRR, is a measure of our discounted cash flows (inflows and outflows). Specifically, IRR is the discount rate at which the net present value of all cash flows is equal to zero. That is, IRR is the discount rate at which the present value of total cash invested in our investments is equal to the present value of all realized returns from the investments. Our IRR calculations are unaudited.

Investment Risk

The value of our investments will generally fluctuate with, among other things, changes in prevailing interest rates, federal tax rates, counterparty risk, general economic conditions, the condition of certain financial markets, developments or trends in any

particular industry and the financial condition of the issuer. During periods of limited liquidity and higher price volatility, our ability to dispose of investments at a price and time that we deem advantageous may be impaired.

Lower-quality debt securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. Lower-quality debt securities can be thinly traded or have restrictions on resale, making them difficult to sell at an acceptable price. The default rate for lower-quality debt securities is likely to be higher during economic recessions or periods of high interest rates.

Logan JV

On December 3, 2014, we entered into an agreement with Perspecta Trident LLC, an affiliate of Perspecta Trust LLC, or Perspecta, to create First Eagle Logan JV, LLC, or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of us and Perspecta.

We have determined that Logan JV is an investment company under ASC 946, however, in accordance with such guidance, we will generally not consolidate our investment in a company other than a substantially owned investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we do not consolidate our non-controlling interest in Logan JV.

Logan JV is capitalized with equity contributions which are generally called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by the Logan JV to call down on capital commitments requires the explicit authorization of us, coupled with that of Perspecta, and we may withhold such authorization for any reason in our sole discretion.

As of September 30, 2021 and December 31, 2020, Logan JV had the following commitments, contributions and unfunded commitments from its members (in millions).

	As of September 30, 2021
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110.0	$	92.6	$	8.0	$	9.4
Perspecta Trident LLC		27.5		23.2		2.0		2.3
Total Investments	$	137.5	$	115.8	$	10.0	$	11.7

	As of December 31, 2020
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110.0	$	92.6	$	8.0	$	9.4
Perspecta Trident LLC		27.5		23.2		2.0		2.3
Total Investments	$	137.5	$	115.8	$	10.0	$	11.7

Logan JV has a senior credit facility, or the Logan JV Credit Facility, with Deutsche Bank AG and other banks, which was amended on January 9, 2021 to reduce commitments, extend the maturity date, and amend the pricing. As of September 30, 2021, the Logan JV Credit Facility had $225.0 million of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.50%. As of December 31, 2020, the Logan JV Credit Facility had $275.0 million of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.20%. The final maturity date of the Logan JV Credit Facility is July 12, 2025. As of September 30, 2021 and December 31, 2020, Logan JV had $146.5 million and $166.5 million of outstanding borrowings under the credit facility, respectively. At September 30, 2021, the effective interest rate on the Logan JV Credit Facility was 2.88% per annum.

As of September 30, 2021 and December 31, 2020, Logan JV had total investments at fair value of $234.5 million and $221.4 million, respectively. As of September 30, 2021 and December 31, 2020, Logan JV’s portfolio was comprised of senior secured first lien and second lien loans to 99 and 92 different borrowers, respectively. As of September 30, 2021, there is one loan on non-accrual status with an amortized cost basis and fair value of $2.2 million and $0.7 million, respectively. As of December 31, 2020, there was one loan on non-accrual status with an amortized cost and fair value of $2.2 million and $1.0 million, respectively. As of

September 30, 2021 and December 31, 2020, Logan JV had unfunded commitments to fund revolver and delayed draw loans to its portfolio companies totaling $3.7 million and $6.2 million, respectively. The portfolio companies in Logan JV’s portfolio are in industries similar to those in which we may invest directly.

Below is a summary of Logan JV’s portfolio, followed by a listing of the individual loans in Logan JV’s portfolio as of September 30, 2021 and December 31, 2020 (dollar amounts in thousands):


	As of September 30, 2021			As of December 31, 2020
First lien secured debt, at par	$	221,659		$	233,614
Second lien debt, at par		4,282			7,111
Total debt investments, at par	$	225,941		$	240,725
Weighted average yield on first lien secured loans ⁽¹⁾		5.2	%		5.6	%
Weighted average yield on second lien loans⁽¹⁾		8.5	%		8.7	%
Weighted average yield on all loans⁽¹⁾		5.3	%		5.7	%
Number of borrowers in Logan JV		99			92
Largest loan to a single borrower ⁽²⁾	$	5,000		$	5,000
Total of five largest loans to borrowers ⁽²⁾	$	22,853		$	24,596

⁽¹⁾	Weighted average yield at their current cost.

⁽²⁾	At current principal amount.

The weighted average yield of Logan JV’s debt investments is not the same as a return on Logan JV investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our expenses. The weighted average yield was computed using the effective interest rates as of September 30, 2021 and December 31, 2020, respectively, but excluding the effective rates on investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level.

For the three and nine months ended September 30, 2021, our share of distributions declared related to our Logan JV equity interest was $1.7 million and $4.9 million, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statement of Assets and Liabilities. For the three and nine months ended September 30, 2020, our share of distributions declared related to our Logan JV equity interest was $1.6 million and $5.5 million, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statements of Operations. As of September 30, 2021 and December 31, 2020, $1.8 million and $1.6 million, respectively, of income related to the Logan JV was included in interest, dividends and fees receivable on the Consolidated Statements of Assets and Liabilities. As of September 30, 2021 and December 31, 2020, $0.0 million and $0.1 million, respectively, of return of capital associated with distributions declared was included in prepaid expenses and other assets on our Consolidated Statements of Assets and Liabilities. As of September 30, 2021, the distributions declared and earned of $6.5 million for the twelve months ended September 30, 2021, represented a dividend yield to the Company of 7.0% based upon average capital invested. As of December 31, 2020, distributions declared and earned of $7.1 million for the twelve months ended December 31, 2020, represented a dividend yield to the Company of 7.6% based upon average capital invested. We expect the dividend yield to fluctuate as a result of the timing of additional capital invested, the changes in asset yields in the underlying portfolio and the overall performance of the Logan JV investment portfolio.

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹⁴⁾	Industry⁽¹⁷⁾	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,478	$	1,466		$	1,440
Total Australia							$	1,466		$	1,440

Canada
Avison Young Canada Inc.	Services: Business	6.15% (LIBOR +6%)	03/07/2019	01/31/2026		3,894	$	3,844		$	3,855
PNI Canada Acquireco Corp	High Tech Industries	4.58% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,597		1,592			1,596
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,953			1,994
Total Canada							$	7,389		$	7,445

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		958	$	953		$	896
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	03/08/2025		2,895		2,888			2,757
Total Germany							$	3,841		$	3,653

Luxembourg
Connect Finco S.a.r.l.	Telecommunications	4.5% (LIBOR +3.5%)	09/23/2019	12/11/2026		1,410	$	1,390		$	1,413
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,167		2,029			2,230
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	5.15% (LIBOR +5%)	09/22/2020	05/29/2026		1,742		1,718			1,504
Total Luxembourg							$	5,137		$	5,147

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.2% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,888		$	4,846
EG Group	Retail	4.15% (LIBOR +4%)	03/23/2018	02/07/2025		2,766		2,760			2,762
Total United Kingdom							$	7,648		$	7,608

United States of America
1A Smart Start LLC	Services: Consumer	5.75% (LIBOR +4.75%)	08/14/2020	08/13/2027		2,376	$	2,356		$	2,375
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	08/10/2024		3,840		3,832			3,590
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,900		1,896			1,786
Advisor Group Holdings Inc	FIRE: FINANCE	4.58% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,158		3,166			3,167
AG Parent Holdings LLC	High Tech Industries	5.08% (LIBOR +5%)	07/30/2019	07/31/2026		2,620		2,602			2,617
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,242		1,240			1,250
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.33% (LIBOR +4.25%)	07/09/2018	07/06/2025		3,880		3,869			3,453
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.58% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655		1,641			1,653
Allen Media, LLC ^(3)(11)	Media: Broadcasting & Subscription	5.5% (LIBOR +5.5%)	07/29/2021	02/10/2027		238		(2	)		1
Allen Media, LLC ⁽¹⁵⁾	Media: Broadcasting & Subscription	5.5% (LIBOR +5.5%)	07/29/2021	02/10/2027		262		259			262
Allen Media, LLC	Media: Broadcasting & Subscription	5.63% (LIBOR +5.5%)	07/29/2021	02/10/2027		2,955		2,937			2,959
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,756		1,722			1,769
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.25% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,188		3,079			3,086
AMCP Clean Acquisition Co LLC	Wholesale	4.25% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,341		2,334			1,978

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹⁴⁾

Industry⁽¹⁷⁾

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

AMCP Clean Acquisition Co LLC

Wholesale

4.25% (LIBOR +4.25%)

07/10/2018

06/15/2025

566

565

479

American Achievement Corporation ^(4)(13)

Retail

7.25% (LIBOR +6.25%)

02/11/2021

09/30/2026

1,470

American Public Education

Services: Consumer

7% (LIBOR +6%)

03/29/2021

03/29/2027

1,000

980

1,003

Ani Pharmaceuticals Inc. ⁽¹⁵⁾

Healthcare & Pharmaceuticals

6.75% (LIBOR +6%)

05/24/2021

05/24/2027

2,000

1,960

2,013

Anne Arundel Dermatology Management, LLC ⁽⁶⁾

Healthcare & Pharmaceuticals

7% (LIBOR +6%)

10/12/2020

10/16/2025

1,358

1,044

1,066

Anne Arundel Dermatology Management, LLC ⁽⁵⁾

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

451

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

2,028

1,995

2,028

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

660

659

528

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

2,007

2,000

1,605

AP Gaming I LLC

Hotel, Gaming & Leisure

4.5% (LIBOR +3.5%)

06/06/2016

02/15/2024

2,395

2,392

2,385

APFS Staffing Holdings Inc

Services: Consumer

4.83% (LIBOR +4.75%)

04/04/2019

04/15/2026

1,955

1,929

1,954

Arcline FM Holding, LLC

Aerospace & Defense

5.5% (LIBOR +4.75%)

09/02/2021

06/23/2028

2,000

1,990

2,005

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

5.5% (LIBOR +4.75%)

08/16/2019

08/27/2026

864

852

876

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,700

3,660

3,666

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,873

2,861

2,854

California Cryobank LLC

Healthcare & Pharmaceuticals

4% (LIBOR +4%)

08/03/2018

08/06/2025

3,112

3,104

Canister International Group Inc

Forest Products & Paper

4.75% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,970

1,955

1,973

Cano Health, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

06/24/2021

11/23/2027

1,990

1,985

1,994

Clear Balance Holdings, LLC

FIRE: FINANCE

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,541

4,534

4,450

Cloudera, Inc. ⁽¹⁵⁾

High Tech Industries

3.75% (LIBOR +3.75%)

08/10/2021

08/09/2028

3,000

2,970

3,001

CMI Marketing, Inc

Media: Advertising, Printing & Publishing

5.5% (LIBOR +4.75%)

03/19/2021

03/23/2028

1,995

1,977

2,012

Confluence Technologies, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

07/22/2021

07/21/2028

3,000

2,985

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,361

1,359

1,368

Drilling Info Inc.

High Tech Industries

4.33% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,364

4,352

4,310

Eisner Advisory Group LLC ⁽¹³⁾

Banking, Finance, Insurance & Real Estate

5.25% (LIBOR +5.25%)

08/16/2021

08/13/2028

182

)

Eisner Advisory Group LLC ⁽¹⁵⁾

Banking, Finance, Insurance & Real Estate

5.25% (LIBOR +5.25%)

08/16/2021

08/13/2028

1,818

1,800

1,823

Eliassen Group, LLC

Services: Business

4.25% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,603

4,591

4,557

Empower Payments Acquisition

Services: Business

4.4% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,890

3,884

EyeSouth^(7)(13)

Healthcare & Pharmaceuticals

4.5% (LIBOR +4.5%)

03/15/2021

03/21/2028

295

)

EyeSouth

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/12/2028

1,700

1,696

1,702

Gastro Health Holdco, LLC ⁽⁸⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

333

113

116

Gastro Health Holdco, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

1,000

995

1,004

Gold Standard Baking, Inc. ⁽¹⁶⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,622

2,227

666

Golden West Packaging Group LLC

Containers, Packaging & Glass

6.75% (LIBOR +5.75%)

02/09/2018

06/20/2023

4,281

4,274

4,264

Granite Holdings US Acquisition Co

Capital Equipment

4.15% (LIBOR +4%)

01/26/2021

09/30/2026

2,875

2,888

2,883

HDT Holdco, Inc.⁽¹⁵⁾

Aerospace & Defense

6.5% (LIBOR +5.75%)

06/30/2021

07/08/2027

3,950

3,851

3,911

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,362

1,356

1,334

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,522

1,683

International Textile Group Inc

Consumer goods: Durable

5.14% (LIBOR +5%)

04/20/2018

05/01/2024

919

917

887

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,637

1,628

1,371

Lereta, LLC

FIRE: REAL ESTATE

6% (LIBOR +5.25%)

07/27/2021

07/27/2028

2,000

1,980

2,005

Lifescan Global Corporation ⁽¹⁵⁾

Healthcare & Pharmaceuticals

6.15% (LIBOR +6%)

06/19/2018

10/01/2024

2,796

2,765

2,776

Liquid Tech Solutions Holdings, LLC

Transportation: Cargo

5.5% (LIBOR +4.75%)

03/18/2021

03/11/2028

1,995

1,986

1,990

LRS Holdings LLC

Environmental Industries

4.75% (LIBOR +4.25%)

08/13/2021

08/12/2028

2,500

2,488

2,503

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.42% (LIBOR +4.25%)

03/09/2018

03/17/2025

458

457

453

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹⁴⁾

Industry⁽¹⁷⁾

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.25% (LIBOR +4.25%)

03/09/2018

03/17/2025

1,773

1,769

1,755

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,216

1,164

1,134

McAfee Enterprise

High Tech Industries

5.75% (LIBOR +5%)

05/03/2021

07/27/2028

2,998

2,969

3,002

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.84% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,322

2,316

2,234

MRI Software LLC^(9)(13)

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,453

1,448

1,452

NAC Holding Corporation

FIRE: INSURANCE

6.75% (LIBOR +4.75%)

10/02/2020

09/28/2024

3,846

3,788

3,846

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

315

331

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,925

1,881

1,907

NextCare, Inc. ⁽¹⁰⁾

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

629

NextCare, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

3,750

3,733

3,731

Northern Star Holdings Inc.

Utilities: Electric

5.5% (LIBOR +4.5%)

03/28/2018

03/28/2025

4,101

4,091

Oak Point Partners, LLC

FIRE: FINANCE

6.25% (LIBOR +5.25%)

09/13/2017

09/13/2023

2,850

2,838

2,836

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,923

1,918

1,902

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

550

548

550

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

813

808

813

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,882

1,873

1,882

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,344

4,335

3,751

Parts Town ⁽¹³⁾

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

06/28/2021

10/15/2025

Parts Town

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/07/2019

10/15/2025

1,052

1,049

1,055

Patriot Rail Co LLC

Transportation: Cargo

4.65% (LIBOR +4.5%)

02/24/2021

10/19/2026

3,448

3,471

3,463

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.12% (LIBOR +5%)

10/04/2018

09/28/2025

2,910

2,893

2,864

PLH Group Inc

Energy: Oil & Gas

6% (LIBOR +6%)

08/01/2018

07/25/2023

3,450

3,418

3,428

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

05/14/2021

12/02/2025

1,995

1,958

1,995

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,960

1,948

1,969

Precisely

High Tech Industries

5% (LIBOR +4.25%)

06/24/2021

04/23/2028

2,000

1,990

2,000

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/10/2028

185

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

1,815

1,806

1,818

PSC Industrial Outsourcing, LP

Chemicals, Plastics & Rubber

4.75% (LIBOR +3.75%)

10/05/2017

10/11/2024

1,925

1,917

1,926

Pure Fishing Inc

Consumer goods: Non-Durable

4.5% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,170

1,141

1,152

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

986

976

971

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.58% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,982

1,974

1,968

Reedy Industries Inc.⁽¹²⁾

Services: Consumer

1% (LIBOR +4.5%)

08/24/2021

08/31/2028

379

)

Reedy Industries Inc.

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

1,621

1,613

1,626

RSA Security LLC

High Tech Industries

5.5% (LIBOR +4.75%)

04/16/2021

04/27/2028

2,000

1,986

1,974

RXB Holdings, Inc.⁽¹⁵⁾

Services: Business

4.5% (LIBOR +4.5%)

07/28/2021

12/20/2027

1,995

1,990

2,013

Sentry Data Systems, Inc.

High Tech Industries

0.5% (LIBOR +6.75%)

09/29/2020

10/06/2025

318

)

StubHub

High Tech Industries

4.75% (LIBOR +4.25%)

07/21/2021

02/12/2027

1,500

1,493

1,502

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

3,202

3,142

3,195

Titan Sub LLC

Aerospace & Defense

5.08% (LIBOR +5%)

09/19/2019

09/21/2026

3,201

3,175

3,222

Tupelo Buyer Inc

Transportation: Cargo

4.75% (LIBOR +3.75%)

10/02/2017

10/07/2024

2,143

2,136

2,145

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.33% (LIBOR +4.25%)

07/22/2021

11/20/2026

3,887

3,875

3,892

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,800

1,718

1,785

Yak Access LLC

Energy: Oil & Gas

5.12% (LIBOR +5%)

06/29/2018

07/11/2025

2,625

2,582

2,102

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

3,878

3,873

3,878

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹⁴⁾	Industry⁽¹⁷⁾	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Zenith American Holding, Inc.	Services: Business	6.25% (LIBOR +5.25%)	03/11/2019	12/13/2024		193		192		193
Total United States of America							$	208,763	$	204,985

Total Senior Secured First Lien Term Loans							$	234,244	$	230,278

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.25% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,971	$	2,010
DiversiTech Holdings Inc	Consumer goods: Durable	8.5% (LIBOR +7.5%)	05/18/2017	06/02/2025		2,000		1,991		2,005
Gruden Acquisition Inc.	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		109		213
Total United States of America							$	4,071	$	4,228

Total Second Lien Term Loans							$	4,071	$	4,228

Equity Investments
United States of America
New Constellis Borrower LLC	Aerospace & Defense		03/27/2020			20	$	204	$	41


Total United States of America							$	204	$	41

Total Equity Investments							$	204	$	41

Total Investments							$	238,519	$	234,547


Cash equivalents
Dreyfus Government Cash Management Fund								15,686		15,686
Other cash accounts								492		492
Total Cash equivalents							$	16,178	$	16,178

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors. As of September 30, 2021, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.08%, 0.11%, 0.13% and 0.16%, respectively.
⁽²⁾	Represents fair value in accordance with ASC Topic 820.
⁽³⁾	Represents a delayed draw commitment of $235,000, which was unfunded as of September 30, 2021. Issuer pays a 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁴⁾	Represents a revolver commitment of $1,469,807, which was unfunded as of September 30, 2021. Issuer pays a 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁵⁾	Represents a revolver commitment of $451,128, of which 345,865 was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁶⁾	Represents a delayed draw commitment of $1,361,152, of which $291,776 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of September 30, 2021

(dollar amounts in thousands)

⁽⁷⁾	Represents a delayed draw commitment of $295,455, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁸⁾	Represents a delayed draw commitment of $333,333, of which $218,667 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays a 2.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁹⁾	Represents a revolver commitment of $41,567, which was unfunded as of September 30, 2021. Issuer pays a 1.0% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽¹⁰⁾	Represents a delayed draw commitment of $629,658, of which $554,431 was unfunded as of September 30, 2021. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays a 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹¹⁾ ⁽¹²⁾ ⁽¹³⁾	Represents a revolver commitment of $69,981, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities. Represents a revolver commitment of $379,052, which was unfunded as of September 30, 2021. Issuer pays a 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities. Unfunded amount will start to accrue interest when the position is funded. 90-day LIBOR as of September 30, 2021 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹⁴⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ ⁽¹⁷⁾	All investments are pledged as collateral for loans payable unless otherwise noted. Interest will start to accrue when the trade settles. 90-day LIBOR as of September 30, 2021 or LIBOR floor is shown to reflect possible projected interest rate. Loan was on non-accrual as of September 30, 2021. “FIRE” is defined as Finance, Insurance, and Real Estate.

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹³⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,489	$	1,476	$	1,385

Total Australia							$	1,476	$	1,385

Canada
Avison Young Canada Inc.	Services: Business	5.25% (LIBOR +5%)	03/07/2019	01/31/2026		3,924	$	3,865	$	3,731
PNI Canada Acquireco Corp	High Tech Industries	4.65% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,653		1,647		1,588

Total Canada							$	5,512	$	5,319

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		965	$	959	$	886
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	02/26/2025		2,918		2,909		2,174
Total Germany							$	3,868	$	3,060

Luxembourg
Connect Finco SARL	Telecommunications	5.5% (LIBOR +4.5%)	09/23/2019	12/11/2026		1,421	$	1,397	$	1,429
Travelport Finance (Luxembourg) S.à r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		1,630		1,468		1,613
Travelport Finance (Luxembourg) S.à r.l.	Services: Consumer	5.25% (LIBOR +5%)	03/18/2019	05/30/2026		1,747		1,720		1,198
Total Luxembourg							$	4,585	$	4,240

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.52% (LIBOR +5.25%)	08/07/2018	06/16/2025		5,000	$	4,867	$	4,533
EG Group	Retail	4.25% (LIBOR +4%)	03/23/2018	02/07/2025		2,788		2,779		2,763

Total United Kingdom							$	7,646	$	7,296

United States of America
1A Smart Start LLC	Services: Consumer	5.75% (LIBOR +4.75%)	08/14/2020	08/13/2027		2,394	$	2,371	$	2,394
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	08/10/2024		3,870		3,860		3,618
A10 Capital, LLC	Banking, Finance, Insurance & Real Estate	7.5% (LIBOR +6.5%)	04/25/2018	05/01/2023		5,000		4,976		4,874
Acproducts Inc	Construction & Building	7.5% (LIBOR +6.5%)	02/14/2020	08/13/2025		491		499		505
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,915		1,908		1,609
Advisor Group Holdings Inc	Banking, Finance, Insurance & Real Estate	5.15% (LIBOR +5%)	07/31/2019	07/31/2026		3,182		3,165		3,162
AG Parent Holdings LLC	High Tech Industries	5.15% (LIBOR +5%)	07/30/2019	07/31/2026		2,640		2,619		2,607
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,294		1,292		1,287
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.4% (LIBOR +4.25%)	07/09/2018	07/06/2025		3,910		3,897		3,294
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.65% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,900		1,881		1,836
Allen Media LLC	Media: Broadcasting & Subscription	5.75% (LIBOR +5.5%)	02/06/2020	02/10/2027		2,977		2,964		2,971
AMCP Clean Acquisition Co LLC	Wholesale	4.47% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,359		2,351		1,628
AMCP Clean Acquisition Co LLC	Wholesale	4.49% (LIBOR +4.25%)	07/10/2018	06/15/2025		571		569		394
Anne Arundel Dermatology Management, LLC ⁽³⁾	Healthcare & Pharmaceuticals	7% (LIBOR +6%)	10/12/2020	10/16/2025		1,362		380		378

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹³⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

Anne Arundel Dermatology Management, LLC ^{(4) (12)}

Healthcare & Pharmaceuticals

7% (LIBOR +6%)

10/12/2020

10/16/2025

451

)

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7% (LIBOR +6%)

10/12/2020

10/16/2025

2,023

2,004

2,002

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

632

631

487

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

1,899

1,890

1,462

AP Gaming I LLC

Hotel, Gaming & Leisure

4.5% (LIBOR +3.5%)

06/06/2016

02/15/2024

2,413

2,410

2,321

APFS Staffing Holdings Inc

Services: Consumer

4.9% (LIBOR +4.75%)

04/04/2019

04/15/2026

1,970

1,940

1,939

AQA Acquisition Holding, Inc.

High Tech Industries

5.25% (LIBOR +4.25%)

10/01/2018

05/24/2023

1,954

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

6.25% (LIBOR +5.25%)

08/16/2019

08/27/2026

871

857

875

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,775

3,726

3,574

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,895

2,881

2,829

California Cryobank LLC

Healthcare & Pharmaceuticals

4.25% (LIBOR +4%)

08/03/2018

08/06/2025

3,136

3,126

3,109

Cambium Learning Group, Inc.

Services: Consumer

4.75% (LIBOR +4.5%)

12/18/2018

12/18/2025

1,960

1,890

1,953

Canister International Group Inc

Forest Products & Paper

4.9% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,985

1,968

1,979

CC Amulet Intermediate, LLC

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

06/18/2018

04/30/2024

283

281

280

CC Amulet Intermediate, LLC ⁽⁵⁾

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

05/01/2020

04/30/2024

1,251

551

539

CC Amulet Intermediate, LLC

Healthcare & Pharmaceuticals

5.75% (LIBOR +4.75%)

06/18/2018

04/30/2024

3,375

3,356

3,341

Clear Balance Holdings, LLC

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,734

4,723

4,640

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,734

1,730

1,743

Discovery Practice Management, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

07/22/2019

06/15/2024

4,924

4,906

4,874

Drilling Info Inc.

High Tech Industries

4.4% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,398

4,384

4,270

E2open, LLC

Services: Business

6.75% (LIBOR +5.75%)

06/21/2019

11/26/2024

4,938

4,902

4,930

Eliassen Group, LLC

Services: Business

4.4% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,621

4,605

4,574

Empower Payments Acquisition

Services: Business

4.47% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,920

3,913

3,842

Gold Standard Baking, Inc. ⁽¹⁴⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,609

2,227

1,018

Golden West Packaging Group LLC

Containers, Packaging & Glass

6.25% (LIBOR +5.25%)

02/09/2018

06/20/2023

4,548

4,537

4,502

Granite Holdings US Acquisition Co

Capital Equipment

5.5% (LIBOR +5.25%)

09/25/2019

09/30/2026

2,897

2,825

2,903

Gruden Acquisition Inc.

Transportation: Cargo

6.5% (LIBOR +5.5%)

06/21/2017

08/18/2022

1,929

1,914

Hertz Corporation⁽⁶⁾

Services: Business

8.25% (LIBOR +7.25%)

10/26/2020

12/31/2021

3,000

416

538

High Street Insurance Partners, Inc.⁽⁷⁾

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.5%)

08/07/2020

12/03/2025

1,000

669

673

High Street Insurance Partners, Inc.

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.5%)

08/07/2020

12/03/2025

2,985

2,916

2,925

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,578

1,569

1,539

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,470

1,528

Institutional Shareholder Services, Inc.

Services: Business

4.75% (LIBOR +4.5%)

03/04/2019

02/26/2026

1,965

1,950

1,958

International Textile Group Inc

Consumer goods: Durable

5.37% (LIBOR +5%)

04/20/2018

05/01/2024

938

935

852

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,734

1,723

974

Lifescan Global Corporation

Healthcare & Pharmaceuticals

6.23% (LIBOR +6%)

06/19/2018

10/01/2024

1,935

1,899

1,849

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.51% (LIBOR +4.25%)

03/09/2018

03/17/2025

461

460

452

LSCS Holdings Inc.

Healthcare & Pharmaceuticals

4.51% (LIBOR +4.25%)

03/09/2018

03/17/2025

1,786

1,781

1,751

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,247

1,187

1,194

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.9% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,340

2,333

2,064

MRI Software LLC⁽⁸⁾

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,448

1,442

1,444

NAC Holding Corporation

Banking, Finance, Insurance & Real Estate

6.75% (LIBOR +5.75%)

10/02/2020

09/28/2024

3,875

3,802

3,798

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

310

322

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,940

1,885

1,917

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹³⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

NextCare, Inc. ⁽⁹⁾

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

630

NextCare, Inc.

Healthcare & Pharmaceuticals

5.5% (LIBOR +4.5%)

02/13/2018

06/30/2024

3,778

3,757

3,759

Northern Star Holdings Inc.

Utilities: Electric

5.75% (LIBOR +4.75%)

03/28/2018

03/28/2025

4,133

4,121

4,050

Oak Point Partners, LLC

Banking, Finance, Insurance & Real Estate

6.25% (LIBOR +5.25%)

09/13/2017

09/13/2023

2,925

2,909

2,837

OB Hospitalist Group Inc

Healthcare & Pharmaceuticals

5% (LIBOR +4%)

08/08/2017

08/01/2024

2,192

2,186

2,170

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,938

1,932

1,893

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

555

551

555

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

819

813

819

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,897

1,885

1,897

OSM MSO, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +5%)

10/16/2018

08/09/2023

3,858

3,837

3,279

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,378

4,366

3,284

Parts Town

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/07/2019

10/15/2025

990

986

926

Patriot Rail Co LLC

Transportation: Cargo

5.49% (LIBOR +5.25%)

10/15/2019

10/11/2026

3,474

3,416

3,495

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.23% (LIBOR +5%)

10/04/2018

09/28/2025

2,933

2,912

2,581

PLH Group Inc

Energy: Oil & Gas

6.21% (LIBOR +6%)

08/01/2018

07/25/2023

3,647

3,600

3,369

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,975

1,960

1,970

Premise Health Holding Corp

Healthcare & Pharmaceuticals

3.75% (LIBOR +3.5%)

08/14/2018

07/10/2025

880

877

859

PSC Industrial Outsourcing, LP

Chemicals, Plastics & Rubber

4.75% (LIBOR +3.75%)

10/05/2017

10/11/2024

1,940

1,929

1,885

Pure Fishing Inc

Consumer goods: Non-Durable

4.65% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,179

1,145

1,141

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

993

981

938

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.65% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,998

1,987

1,969

Sentry Data Systems, Inc.

High Tech Industries

7.75% (LIBOR +6.75%)

09/29/2020

09/30/2025

3,182

3,121

3,118

Sentry Data Systems, Inc. ^{(10) (12)}

High Tech Industries

8% (LIBOR +6.75%)

09/29/2020

09/30/2025

318

)

Silverback Merger Sub Inc

High Tech Industries

4.5% (LIBOR +3.5%)

08/11/2017

08/21/2024

1,161

1,159

1,161

Starfish- V Merger Sub Inc

High Tech Industries

7% (LIBOR +6%)

11/06/2019

08/16/2024

990

929

992

Starfish- V Merger Sub Inc

High Tech Industries

6.48% (LIBOR +6.25%)

08/11/2017

08/16/2024

1,210

1,203

1,209

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

2,222

2,155

2,206

Titan Sub LLC

Aerospace & Defense

5.15% (LIBOR +5%)

09/19/2019

09/21/2026

3,225

3,195

3,221

Tupelo Buyer Inc

Transportation: Cargo

4.75% (LIBOR +3.75%)

10/02/2017

10/07/2024

2,160

2,151

2,153

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.65% (LIBOR +4.5%)

10/24/2019

11/20/2026

2,911

2,899

2,910

US Shipping Corp

Utilities: Oil & Gas

5.25% (LIBOR +4.25%)

03/09/2016

06/26/2021

206

205

186

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,875

1,774

1,813

Yak Access LLC

Energy: Oil & Gas

5.25% (LIBOR +5%)

06/29/2018

07/11/2025

2,738

2,684

2,430

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

3,908

3,901

3,869

Zenith American Holding, Inc. ⁽¹¹⁾

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

495

191

189

Total United States of America

201,384

193,379

Total Senior Secured First Lien Term Loans

224,471

214,679

Second Lien Term Loans

United States of America

AQA Acquisition Holding, Inc.

High Tech Industries

9% (LIBOR +8%)

10/01/2018

05/24/2024

1,000

994

975

DiversiTech Holdings Inc

Consumer goods: Durable

8.5% (LIBOR +7.5%)

05/18/2017

06/02/2025

2,000

1,988

1,991

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹³⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Gruden Acquisition Inc.	Transportation: Cargo	9.5% (LIBOR +8.5%)	07/31/2015	08/18/2023		500		492		459
Midwest Physician Administrative Services, LLC	Healthcare & Pharmaceuticals	7.75% (LIBOR +7%)	08/11/2017	08/15/2025		979		973		959
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		72		203
TKC Holdings Inc	Services: Business	9% (LIBOR +8%)	01/31/2017	02/01/2024		1,850		1,843		1,655
Wash Multifamily Acquisition Inc.	Services: Consumer	8% (LIBOR +7%)	05/04/2015	05/15/2023		425		425		396
Wash Multifamily Acquisition Inc.	Services: Consumer	8% (LIBOR +7%)	05/04/2015	05/12/2023		75		74		69

Total United States of America							$	6,861	$	6,707

Total Second Lien Term Loans							$	6,861	$	6,707

Equity Investments
United States of America
New Constellis Borrower LLC	Aerospace & Defense		03/27/2020			1	$	203	$	32


Total United States of America							$	203	$	32

Total Equity Investments							$	203	$	32

Total Investments							$	231,535	$	221,418


Cash equivalents
Dreyfus Government Cash Management Fund								31,632		31,632
Other cash accounts								555		555
Total Cash equivalents							$	32,187	$	32,187

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.

⁽²⁾	Represents fair value in accordance with ASC Topic 820.

⁽³⁾

Represents a delayed draw commitment of $1,362,166, of which $956,513 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁴⁾	Represents a revolver commitment of $451,128, which was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁵⁾

Represents a delayed draw commitment of $1,251,077, which $700,000 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁶⁾

Represents a delayed draw commitment of $3,000,000, which $2,434,455 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 3.75% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁷⁾

Represents a delayed draw commitment of $1,000,000, which $307,500 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁸⁾	Represents a delayed draw commitment of $41,567, which was unfunded as of December 31, 2020. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of December 31, 2020

(dollar amounts in thousands)

⁽⁹⁾

Represents a delayed draw commitment of $629,847, which $554,431 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹⁰⁾	Represents a revolver commitment of $318,182, which was unfunded as of December 31, 2020. Issuer pays 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹¹⁾

Represents a delayed draw commitment of $494,607, which $300,391 was unfunded as of December 31, 2020. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹²⁾	Unfunded amount will start to accrue interest when the position is funded. 3 month LIBOR as of December 31, 2020 is shown to reflect possible projected interest rate.

⁽¹³⁾	All investments are pledged as collateral for loans payable unless otherwise noted.

⁽¹⁴⁾	Loan was on non-accrual as of December 31, 2020.

Below is certain summarized financial information for Logan JV as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and 2020:

Selected Balance Sheet Information


	As of September 30, 2021		As of December 31, 2020
	(Dollars in thousands)		(Dollars in thousands)
Assets:
Investments at fair value (cost of $238,519 and $231,535, respectively)	$	234,547	$	221,418
Cash		16,178		32,187
Other assets		662		882
Total assets	$	251,387	$	254,487
Liabilities:
Loans payable reported net of unamortized debt issuance costs	$	145,135	$	165,830
Payable for investments purchased		11,404		-
Distribution payable		2,300		2,100
Other liabilities		1,290		1,391
Total liabilities	$	160,129	$	169,321
Members' capital	$	91,258	$	85,166
Total liabilities and members' capital	$	251,387	$	254,487

Selected Statement of Operations Information

	For the three months ended September 30, 2021			For the three months ended September 30, 2020			For the nine months ended September 30, 2021		For the nine months ended September 30, 2020
	(Dollars in thousands)			(Dollars in thousands)			(Dollars in thousands)		(Dollars in thousands)
Interest income	$	3,452		$	3,784		$	10,604	$	19,231
Fee income		74			16			90		104
Total revenues		3,526			3,800			10,694		19,335
Credit facility expenses ⁽¹⁾	$	1,462			1,421		$	4,409	$	9,682
Other fees and expenses		103			298			292		331
Total expenses		1,565			1,719			4,701		10,013
Net investment income		1,961			2,081			5,993		9,322
Net realized gain (loss)		67			(660	)		254		(4,040	)
Net change in unrealized (depreciation) appreciation on investments		(327	)		7,069			6,146		(1,950	)
Net increase in members' capital from operations	$	1,701		$	8,490		$	12,393	$	3,332

(1)

As of September 30, 2021, Logan JV had $146,541 of outstanding debt under its credit facility with an effective interest rate of 2.88% per annum. As of December 31, 2020, Logan JV had $166,541 of outstanding debt under its credit facility with an effective interest rate of 2.46% per annum.

OEM Group LLC

In December 2020, OEM completed the sale of all of its principal business operations via two transactions. On December 2, 2020, OEM closed on the sale of certain assets and liabilities of its Arizona based division to Plasma Term LLC. Plasma Therm will be responsible for developing, commercializing, and marketing the newly developed Endeavor M series PVD platform with no further investment required by OEM. OEM is entitled to a series of deferred royalty payments over seven years associated with the sale of its business operations, which are based on the future revenues associated with Plasma Therm’s product and services sales. OEM will

receive minimum annual payments for the first four years that will be used to cover certain residual operating costs and service the outstanding debt. These future royalty streams will be used to cover principal and interest on OEM’s outstanding debt. We made an additional $1.0 million investment in the first lien loan to facilitate the completion of the sale and cover near-term costs associated with the transition of certain assets and settlement of certain liabilities. During the nine months ended September 30, 2021, we made an incremental $0.9 million investment in the first lien loan continue to cover near-term operating costs of OEM.

OEM also consummated the sale of certain assets and liabilities of the Pennsylvania based division to a minority shareholder of the company on December 18, 2020. There was no cash consideration exchanged in connection with the transaction.

As of September 30, 2021 and December 31, 2020, we hold all outstanding debt and equity of OEM. The fair value of our investments in OEM are described in Footnote 3 of the consolidated financial statements.

Asset Quality

We employ the use of board observation and information rights, regular dialogue with company management and sponsors, and detailed internally generated monitoring reports to actively monitor performance. Additionally, First Eagle has developed a monitoring template that promotes compliance with these standards and that is used as a tool to assess investment performance relative to plan.

As part of the monitoring process, the Advisor assesses the risk profile of each of our investments and assigns each portfolio investment a score of a 1, 2, 3, 4 or 5

The investment performance scores, are as follows:

1 – The portfolio investment is performing above our underwriting expectations.

2 – The portfolio investment is performing as expected at the time of underwriting. All new investments are initially scored a 2.

3 – The portfolio investment is operating below our underwriting expectations and requires closer monitoring. The company may be out of compliance with financial covenants, however, principal or interest payments are generally not past due.

4 – The portfolio investment is performing materially below our underwriting expectations and returns on our investment are likely to be impaired. Principal or interest payments may be past due, however, full recovery of principal and interest payments are expected.

5 – The portfolio investment is performing substantially below expectations and the risk of the investment has increased substantially. The company is in payment default and the principal and interest payments are not expected to be repaid in full.

For purposes of clarity, underwriting as referenced herein may be redetermined after the initial investment as a result of a transformative credit event or other material event whereby such initial underwriting is deemed by the Advisor to be no longer appropriate for the purpose of assessing investment performance relative to plan. For any investment receiving a score of a 3 or lower the Advisor will increase their level of focus and prepare regular updates for the investment committee summarizing current operating results, material impending events and recommended actions.

The Advisor monitors and, when appropriate, changes the investment scores assigned to each investment in our portfolio. In connection with our investment valuation process, the Advisor and board of directors review these investment scores on a quarterly basis. Our average portfolio company investment score was 2.06 and 2.24 at September 30, 2021 and December 31, 2020, respectively. The following is a distribution of the investment scores of our portfolio companies at September 30, 2021 and December 31, 2020 (in millions):

	September 30, 2021										December 31, 2020
Investment Score	Amortized Cost		% of Total Portfolio based on Amortized Cost			Fair Value		% of Total Portfolio based on FV			Amortized Cost		% of Total Portfolio based on Amortized Cost			Fair Value		% of Total Portfolio based on FV
1^(a)	$	62.0		13.9	%	$	62.3		15.5	%	$	21.9		5.5	%	$	22.2		6.7	%
2^(b)		302.3		67.3	%		287.5		71.5	%		299.6		75.0	%		273.3		80.9	%
3^(c)		22.2		4.9	%		19.9		5.0	%		3.5		0.9	%		3.2		0.9	%
4^(d)		5.1		1.1	%		4.1		1.0	%		16.2		4.1	%		13.3		3.9	%
5^(e)		57.4		12.8	%		28.2		7.0	%		58.1		14.5	%		25.7		7.6	%
Total	$	449.0		100.0	%	$	402.0		100.0	%	$	399.3		100.0	%	$	337.7		100.0	%

^(a)	As of September 30, 2021 and December 31, 2020, Investment Score “1”, based upon fair value, included $27.5 million and $0.0 million, respectively, of loans to companies in which we also hold equity securities.

^(b)	As of September 30, 2021 and December 31, 2020, Investment Score “2”, based upon fair value, included $21.4 million and $45.4 million, respectively, of loans to companies in which we also hold equity securities.

^(c)	As of September 30, 2021 and December 31, 2020, Investment Score “3”, based upon fair value, included $14.3 million and $0.0 million, respectively, of loans to companies in which we also hold equity securities.

^(d)	As of September 30, 2021 and December 31, 2020, Investment Score “4”, based upon fair value, included $4.1 million and $13.3 million to companies in which we also hold equity securities.

^(e)	As of September 30, 2021 and December 31, 2020, Investment Score “5”, based upon fair value, included $28.2 million and $25.7 million, respectively, of loans to companies in which we also hold equity securities.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or when it is no longer probable that principal or interest will be collected. However, we may make exceptions to this policy if the loan has sufficient collateral value and is in the process of collection. As of September 30, 2021, we had loans on non-accrual status with an amortized cost basis of $15.8 million and fair value of $8.2 million. As of December 31, 2020, we had loans on non-accrual status with an amortized cost basis of $15.5 million and fair value of $7.4 million. For additional information, please refer to the Consolidated Schedules of Investments as of September 30, 2021 and December 31, 2020. We record the reversal of any previously accrued income against the same income category reflected in the Consolidated Statement of Operations.

In certain instances, we may enter into an agreement to restructure a loan, where we determined the full balance of principal or interest may not be collectible at the date of origination. As a result of this determination, we do not recognize interest income on these balances. As of September 30, 2021, we have two loans with an amortized cost basis of $27.2 million and fair value of $14.6 million, which meet the above criteria. As of December 31, 2020, we have two loans with an amortized cost basis of $27.2 million and fair value of $13.8 million, which meet the above criteria. For additional information, please refer to the Consolidated Schedules of Investments as of September 30, 2021 and December 31, 2020.

Results of Operations

Comparison of the three and nine months ended September 30, 2021 and 2020

Investment Income

We generate revenues primarily in the form of interest on the debt and other income-producing securities we hold. Other income-producing securities include investments in funds. Our investments in fixed income instruments generally have an expected maturity of five to seven years, and typically bear interest at a fixed or floating rate. Interest on our debt securities is generally payable quarterly. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt instruments and preferred stock investments may defer payments of dividends or pay interest in-kind, or PIK. Any outstanding principal amount of our debt securities and any accrued but unpaid interest will generally become due at the maturity date. The level of interest income we receive is directly related to the balance of interest-bearing investments multiplied by the weighted average yield of our investments. In addition to interest income, we may receive dividends and other distributions related to our equity investments. We may also generate revenue in the form of fees from the management of Greenway II, prepayment premiums, commitment, loan origination, structuring or due diligence fees, exit fees, amendment fees, portfolio company administration fees, fees for providing significant managerial assistance and consulting fees. These fees may or may not be recurring in nature as part of our normal business operations. We will disclose below what amounts, if any, are material non-recurring fees that have been recorded as income during each respective period.

The following shows the breakdown of investment income for the three and nine months ended September 30, 2021 and 2020 (in millions):

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Interest income on debt securities
Cash interest	$	5.6	$	4.1	$	15.5	$	12.6
PIK interest		0.1		0.3		0.4		0.8
Prepayment premiums		0.2		—		0.5		—
Net accretion of discounts and other fees		0.4		0.2		1.1		0.5
Total interest on debt securities		6.3		4.6		17.5		13.9
Dividend income ⁽¹⁾		1.7		2.6		4.9		7.9
Fees related to non-controlled, affiliated investments		—		—		0.1		0.2
Other income		0.4		0.1		0.8		0.3
Total investment income	$	8.4	$	7.3	$	23.3	$	22.3

(1)	Includes dividend income from preferred and common equity interests in C&K Market, Inc. and Logan JV.

The increase in investment income between the three month periods was primarily due to an increase in interest income due to the expansion of our investment portfolio, as well as higher prepayment premiums received and higher other income related to one-time fees. This increase was partially offset by a reduction in dividend income due to the sale of C&K Markets in December 2020.

The increase in investment income between the nine month periods was primarily due to an increase in interest income due to the expansion of our investment portfolio, as well as higher prepayment premiums received and higher other incomes related to one-time fees. This increase was partially offset by a reduction in dividend income due to the sale of C&K Markets in December 2020.

The following shows a rollforward of PIK income activity for the three and nine months ended September 30, 2021 and 2020 (in millions):

	Three months ended September 30,					Nine months ended September 30,
	2021		2020			2021		2020
Accumulated PIK balance, beginning of period	$	1.4	$	2.8		$	1.1	$	3.6
PIK income capitalized/receivable		0.1		0.3			0.4		0.8
PIK received in cash from repayments		—		—			—		—
PIK reduced through restructurings/sales		—		(2.2	)		—		(3.5	)
Accumulated PIK balance, end of period	$	1.5	$	0.9		$	1.5	$	0.9

In certain investment transactions, we may provide advisory services. For services that are separately identifiable and external evidence exists to substantiate fair value, income is recognized as earned. We earned no income from advisory services related to portfolio companies for the three and nine months ended September 30, 2021 and 2020.

Expenses

Our primary operating expenses include the payment of base management fees, borrowing expenses related to our credit facilities and Notes, and expenses reimbursable under the investment management agreement and the allocable portion of overhead under the administration and investment management agreements (“administrator expenses”). The base management fee compensates the Advisor for work in identifying, evaluating, negotiating, closing and monitoring our investments. Our investment management agreement and administration agreement provides that we will reimburse the Advisor for costs and expenses incurred by the Advisor for facilities, office equipment and utilities allocable to the performance by the Advisor of its duties under the agreements, as well as any costs and expenses incurred by the Advisor relating to any administrative or operating services provided by the Advisor to us. We bear all other costs and expenses of our operations and transactions.

The following shows the breakdown of expenses for the three and nine months ended September 30, 2021 and 2020 (in millions):

	For the three months ended September 30,					For the nine months ended September 30,
	2021		2020			2021			2020
Expenses
Interest and fees on Borrowings ⁽¹⁾	$	2.9	$	2.8		$	8.6		$	9.2
Base management fees		1.0		0.9			2.9			2.8
Incentive fees		—		—			—			(0.4	)
Other expenses		0.9		1.1			2.8			3.0
Administrator expenses		0.2		0.3			0.7			0.9
Total expenses		5.0		5.1			15.0			15.5
Management fee waiver		—		(0.9	)		(0.9	)		(0.9	)
Total expenses, net of fee waiver		5.0		4.2			14.1			14.6
Income tax provision, excise and other taxes⁽²⁾		—		—			0.1			0.1
Total expenses after taxes	$	5.0	$	4.2		$	14.2		$	14.7

⁽¹⁾	Interest, fees and amortization of deferred financing costs related to our Revolving Facility and Notes.

⁽²⁾	Amounts include the income taxes related to earnings by our consolidated corporate subsidiaries established to hold equity or equity-like portfolio company investments organized as pass-through entities and excise taxes related to our undistributed earnings and other taxes.

The increase in total expenses (net of fee waivers) between the three month periods was primarily due to our waiver of base management fees during the three months ended September 30, 2020. This increase was partially offset by lower administrator and other expenses. Interest and fees on borrowings increased slightly as a result of higher overall outstanding borrowing balances during the three months ended September 30, 2021, offset by a decrease in weighted average interest rate from 5.3% as of September 30, 2020 to 4.6% as of September 30, 2021.

The decrease in expenses between the nine month periods was primarily due to lower fees on our Revolving Facility and lower interest on our Notes during the nine months ended September 30, 2021, partially offset by an increase in incentive fees due to a prior period reversal.

We expect certain of our operating expenses, including administrator expenses, professional fees and other general and administrative expenses to decline as a percentage of our total assets during periods of growth and increase as a percentage of our total assets during periods of asset declines.

Net Investment Income

Net investment income was $3.3 million, or $0.11 per common share based on a weighted average of 30,109,384 common shares outstanding for the for the three months ended September 30, 2021, as compared to $3.2 million, or $0.10 per common share based on a weighted average of 31,237,433 common shares outstanding for the three months ended September 30, 2020.

Net investment income was $9.2 million, or $0.31 per common share based on a weighted average of 30,109,384 common shares outstanding for the nine months ended September 30, 2021 as compared to $7.6 million, or $0.24 per common share based on a weighted average of 31,785,104 common shares outstanding for the nine months ended September 30, 2020.

The increase in net investment income between the three and nine month periods is primarily attributable to an increase in interest income earned on the debt securities in the portfolio and higher other income related to one-time fees. The increase was partially offset by reduced dividend income due to the sale of C&K Markets in December 2020, as well as a reduction in management fee waiver during the three month period ended September 30, 2021.

Net Realized Gains and Losses, net of income tax provision

We measure realized gains or losses on investments by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized.

The following shows the breakdown of net realized gains and losses for the three and nine months ended September 30, 2021 and 2020 (in millions):

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Alex Toys, LLC ⁽¹⁾	$	—		$	—		$	(1.9	)	$	—
Allied Wireline Services, LLC ⁽²⁾		—			—			—			(5.3	)
Charming Charlie LLC ⁽³⁾		(0.1	)		—			(0.1	)		(2.5	)
Copperweld Bimetallics, LLC ⁽⁴⁾		0.1			0.1			0.1			(0.1	)
Holland Intermediate Acquisition Corp. ⁽⁵⁾		—			(0.1	)		—			(17.4	)
New Host Holdings, LLC ⁽⁶⁾		—			—			—			(2.0	)
OEM Group, LLC⁽⁷⁾		—			(17.5	)		—			(17.5	)
Virtus Pharmaceuticals, LLC ⁽⁸⁾		—			—			—			(0.9	)
Other investments ⁽⁹⁾		0.1			—			(1.6	)		—
Loss on extinguishment of debt ⁽¹⁰⁾		—			—			(0.5	)		—
Net realized gains (losses)	$	0.1		$	(17.5	)	$	(4.0	)	$	(45.7	)

⁽¹⁾		On March 31, 2021, we wrote off our investment in Alex Toys, LLC. The realized loss of $1.9 million was offset by a corresponding change in unrealized appreciation in the same amount.
⁽²⁾		In June 2020, we restructured our first lien senior secured term loan, common equity, and warrants in Allied Wireline Services, LLC into a Class A Note, Class B common equity and Class C common equity. This transaction resulted in a $5.3 million realized loss, which was fully offset by a $5.8 million reversal of unrealized depreciation.
⁽³⁾		On July 11, 2019, Charming Charlie LLC filed for Chapter 11 bankruptcy protection in Delaware with plans to liquidate the company and any of its remaining assets. In connection with the liquidation, we removed Charming Charlie from Investments, at fair value and reflected the expected liquidation proceeds as escrow and other receivables on the Consolidated Statements of Assets and Liabilities. Charming Charlie has ceased its operations and has been actively liquidating its assets. In 2020 and 2021, we recorded realized losses to reflect the collectability of the remaining receivable balance.
⁽⁴⁾		On September 28, 2019, we were repaid on our second lien term loan in connection with the sale of our controlling common and preferred equity positions in Copperweld Bimetallics LLC with proceeds received of $32.5 million with an additional $1.7 million in escrow proceeds that were reflected as escrow and other receivables. Subsequently, we collected $1.7 million in escrow proceeds in cash through September 2021 and realized additional gains and losses in 2020 and 2021 to reflect the collectability of the remaining balance. In September 2021, our remaining escrow proceeds were released, bringing the outstanding receivable balance to $0 as of September 30, 2021.
⁽⁵⁾		During Q2 2020, we received proceeds of $2.6 million from the partial repayment of our first lien senior secured term loan in Holland Intermediate Acquisition Corp. An additional $1.4 million in expected proceeds is reflected as Escrow and other receivables on the Consolidated Statements of Assets and Liabilities as of June 30, 2020, resulting in a realized loss of $17.3 million. This realized loss was offset by a corresponding reversal of unrealized depreciation.
⁽⁶⁾		In April 2020, New Host Holdings, LLC was dissolved and we wrote off our common and preferred equity investments in New Host Holdings, LLC resulting in a $2.0 million realized loss. This realized loss was equally offset by a corresponding reversal of unrealized depreciation.
⁽⁷⁾		On September 30, 2020, we restructured our first lien senior secured term loan and revolvers in OEM Group, LLC into a $7.5 million first lien senior secured term loan and a $44.1 million second lien term loan, at par. We did not recognize interest income on the restructured second lien term loan as of September 30, 2021 and 2020. This transaction resulted in a $17.5 million realized loss, which was fully offset by a reversal of unrealized depreciation.
⁽⁸⁾		On May 7, 2020, we agreed to contribute our preferred and common equity interests in Virtus Pharmaceuticals, LLC to Virtus Aggregator, LLC, in exchange for member units in Virtus Aggregator, LLC. This transaction resulted in a $0.9 million realized loss, which was partially offset by a corresponding reversal of unrealized depreciation.
⁽⁹⁾		During the three and nine months ended September 30, 2021, we realized a net loss reflecting the collectability of the remaining escrow and other receivables balance, which was slightly offset by a realized gain on a distribution from Gryphon Partners 3.5, L.P.

⁽¹⁰⁾

In June 2021, we redeemed our 2022 Notes. In connection with the redemption, we realized a loss on the extinguishment of debt equal to the difference between the amount paid to redeem the 2022 Notes and the Notes’ carrying value, net of deferred financing costs.

Net Change in Unrealized Appreciation (Depreciation) of Investments

Net change in unrealized appreciation (depreciation) primarily reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded appreciation or depreciation when gains or losses are realized.

The following shows the breakdown in the changes in unrealized appreciation (depreciation) of investments for the three and nine months ended September 30, 2021 and 2020 (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Gross unrealized appreciation on investments	$	2.4		$	14.0		$	15.7		$	2.8
Gross unrealized depreciation on investments		(3.4	)		(2.1	)		(1.1	)		(28.6	)
Reversal of prior period net unrealized (appreciation) depreciation upon a realization		(0.2	)		17.5			—			27.0
Total	$	(1.2	)	$	29.4		$	14.6		$	1.2

During the nine months ended September 30, 2021, our largest increase in value for the investments still held as of the reporting date was related to a market driven increase of Logan JV (an investment where we hold a non-controlling interest) and Matilda Jane Holdings, Inc. During the three months ended September 30, 2021, our largest reduction in value for the investments still held as of the reporting date was related to our equity investment in Wheels Up Experience Inc.

During the nine months ended September 30, 2020, our largest reductions in value for the investments still held as of the reporting date were related to smarTours, LLC and a market reduction of Logan JV, an investment where we hold a controlling interest. This was offset by a $27.0 million reversal of prior period unrealized depreciation into realized losses primarily related to our realization of Holland Intermediate Acquisition Corp. and our restructuring of OEM Group, LLC (see “Net Realized Gains and Losses on Investments” above). Many of our portfolio companies operate in industries that are materially impacted by COVID-19, including but not limited to healthcare, travel, entertainment and hospitality. Many of these companies have faced operational and financial hardships resulting from the spread of COVID-19 and related governmental measures, such as the closure of stores, restrictions on travel, quarantines or stay-at-home orders. Many of our portfolio companies are facing increased credit and liquidity risk due to volatility in financial markets, reduced revenue streams, and limited or higher cost of access to preferred sources of funding. The disruptions caused by COVID-19 and the restrictions put in place have contributed to the value of our portfolio as of September 30, 2020. If the disruptions caused by COVID-19 continue and the restrictions put in place are not lifted, the businesses of these portfolio companies could suffer materially or become insolvent, which would further decrease the value of our investments. During the three months ended September 30, 2020, our largest increase in value was related to our investment in the Logan JV resulting from reduced volatility and stabilization in the broadly syndicated market during the third quarter of 2020.

Benefit (Provision) for Taxes on Unrealized Gains on Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable entities are not consolidated with us for income tax purposes and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. For the three months ended September 30, 2021 and 2020, we recognized a (provision) benefit for tax on unrealized gains on investments of $(0.5) million and $0.2 million for consolidated subsidiaries, respectively. As of September 30, 2021 and December 31, 2020, $1.8 million and $1.7 million, respectively, were included in deferred tax liability on the Consolidated Statements of Assets and Liabilities relating to deferred tax on unrealized gain on investments. The change in benefit for tax on unrealized gains on investments relates primarily to changes to the unrealized appreciation (depreciation) of the investments held in these taxable consolidated subsidiaries, other temporary differences and a change in the prior year estimates received from certain portfolio companies.

Net Increase (Decrease) in Net Assets Resulting from Operations

Net increase in net assets resulting from operations totaled $2.7 million, or $0.09 per common share based on a weighted average of 30,109,384 common shares for the three months ended September 30, 2021, as compared to $15.2 million, or $0.49 per common share based on a weighted average of 31,237,433 common shares for the three months ended September 30, 2020.

Net increase (decrease) in net assets resulting from operations totaled $19.7 million, or $0.65 per common share based on a weighted average of 30,109,384 common shares for the nine months ended September 30, 2021, as compared to $(36.8) million, or $(1.16) per common share based on a weighted average of 31,785,104 common shares for the nine months ended September 30, 2020, respectively.

The decrease in net assets from operations between the three periods is due primarily to significant unrealized gains (partially offset by realized losses) recognized in the three month period ended September 30, 2020. The increase in net assets from operations between the nine months periods is due primarily to significant unrealized losses recognized in the nine month period ended September 30, 2020.

Financial condition, liquidity and capital resources

Cash Flows from Operating and Financing Activities

Our liquidity and capital resources are derived from our borrowings, equity raises and cash flows from operations, including investment sales and repayments, and investment income earned. Our primary use of funds from operations includes investments in portfolio companies, payment of distributions to the holders of our common stock and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover in our portfolio and from public and private offerings of securities to finance our investment objectives, to the extent permitted by the 1940 Act. We are continuously and critically reviewing our liquidity and anticipated capital requirements in light of the uncertainty created by the COVID-19 global pandemic. We expect that the significant disruption in business activity and the financial markets will impact several sources of our liquidity. For example, limited opportunities to successfully exit investments due to, among other things, lower valuations, a lack of potential buyers with the financial resources to pursue acquisitions, and our portfolio companies limited ability to repay their obligations to us, will impact cash flows from operating activities. For more information on the potential impact of the COVID-19 pandemic on our business, see “Item 1A. Risk Factors – Major public health issues, and specifically the novel coronavirus COVID-19, could have an adverse impact on our financial condition and results of operations and other aspects of our business” of our Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 5, 2021.

We may raise additional equity or debt capital through both registered offerings off our shelf registration statement and private offerings of securities, by securitizing a portion of our investments or borrowings from credit facilities. To the extent we determine to raise additional equity through an offering of our common stock at a price below net asset value, existing investors will experience dilution.

In May 2021, we completed a public debt offering, selling $69.0 million of notes due 2026, or the 2026 Notes, including the exercise of the overallotment option, through a group of underwriters, less an underwriting discount, and received net proceeds of $67.3 million. The proceeds received from the issuance of the 2026 Notes were primarily used to repay the 2022 Notes and partially pay down our Revolving Facility.

We borrowed $171.0 million under our Revolving Facility for the nine months ended September 30, 2021 and repaid $128.2 million on our Revolving Facility from proceeds received from prepayments and sales, investment income and proceeds from our 2026 Notes. We borrowed $15.5 million under our Revolving Facility for the nine months ended September 30, 2020 and repaid $17.0 million on our Revolving Facility from proceeds received from prepayments and sales and investment income.

Our operating activities used cash of $(38.5) million and provided cash of $11.2 million for the nine months ended September 30, 2021 and 2020, respectively, primarily in connection with the purchases and sales of portfolio investments. For the nine months ended September 30, 2021, our financing activities included net borrowings of $(42.8) million on our Revolving Facility, used $9.0 million for distributions to stockholders, and $2.3 million for the payment of financing costs. Additionally, we borrowed $69.0 million as part of our issuance of our 2026 Notes and used a portion of the proceeds to redeem our outstanding 2022 Notes. For the nine months ended September 30, 2020, our financing activities included net borrowings of $1.5 million on our Revolving Facility, used $12.8 million for distributions to stockholders, $2.2 million to repurchase common stock and $0.4 million for the payment of financing costs. Additionally, our financing activities provided $30.0 million from the issuance of common stock and used $19.8 million to purchase common stock in the tender offer during the nine months ended September 30, 2020.

As of September 30, 2021 and December 31, 2020, we had cash of $9.6 million and $7.6 million, respectively. We had no cash equivalents as of September 30, 2021 and December 31, 2020.

We believe cash balances, our Revolving Facility capacity, and any proceeds generated from the sale or pay down of investments provides us with the liquidity necessary to fulfill our pipeline in the near future.

Although we were able to issue debt securities and increase our Revolving Facility commitment during the nine months ended September 30, 2021, and the financial markets have recovered from 2020 levels, another disruption in the financial markets like that caused by the COVID-19 pandemic or any other negative economic development would restrict our access to financing in the future.

We may not be able to find new financing for future investments or liquidity needs and even if we are able to obtain such financing, it may not be on as favorable terms as we could have obtained prior to the pandemic. These factors may limit our ability to make new investments and adversely impact our results of operations.

Borrowings

The following shows a summary of our Borrowings as of September 30, 2021 and December 31, 2020 (in millions):

	As of
	September 30, 2021									December 31, 2020
Facility	Commitments		Borrowings Outstanding ⁽¹⁾		Weighted Average Borrowings Outstanding⁽²⁾		Weighted Average Interest Rate ⁽⁵⁾			Commitments		Borrowings Outstanding ⁽³⁾		Weighted Average Borrowings Outstanding ⁽⁴⁾		Weighted Average Interest Rate ⁽⁵⁾
Revolving Facility	$	150.0	$	100.5	$	66.2		3.50	%	$	100.0	$	57.7	$	71.7		3.50	%
2022 Notes		-		-		38.0		-			60.0		60.0		60.0		6.75	%
2023 Notes		51.6		51.6		51.6		6.13	%		51.6		51.6		51.6		6.13	%
2026 Notes		69.0		69.0		32.1		5.00	%		-		-		-		0.00	%
Total	$	270.6	$	221.1	$	187.9		4.58	%	$	211.6	$	169.3	$	183.3		5.45	%

⁽¹⁾	As of September 30, 2021, excludes deferred financing costs of $0.9 million for the 2023 Notes and $2.0 million for the 2026 Notes, respectively, presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

⁽²⁾	Represents the weighted average borrowings outstanding for the nine months ended September 30, 2021.

⁽³⁾	As of December 31, 2020, excludes deferred financing costs of $0.7 million for the 2022 Notes and $1.2 million for the 2023 Notes presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

⁽⁴⁾	Represents the weighted average borrowings outstanding for the year ended December 31, 2020.

⁽⁵⁾	Represents the weighted average interest rate as of September 30, 2021 and December 31, 2020.

Credit Facility

On December 15, 2017, we entered into an amendment, or the Revolving Amendment, to our existing revolving credit agreement, or Revolving Facility. The Revolving Amendment revised the Revolving Facility dated August 19, 2015 to, among other things, extend the maturity date from August 2019 to December 2022 (with a one year term out period beginning in December 2021). The one year term out period is the one year anniversary between the revolver termination date, or the end of the availability period, and the maturity date. During this time, we are required to make mandatory prepayments on our loans from the proceeds we receive from the sale of assets, extraordinary receipts, returns of capital or the issuances of equity or debt. The Revolving Amendment also reduced the size of the revolver commitments from $303.5 million to $275.0 million and terminated the $75.0 million term loan facility. On March 26, 2019, we entered into Amendment No. 1 which amended our Revolving Facility to, among other things, reduce the size of the commitments thereunder to $190.0 million, provide a $20.0 million letter of credit subfacility and lower the testing levels of certain financial covenants. On March 13, 2020, we entered into Amendment No. 4 which further amended the Revolving Facility to, among other things, reduce the size of commitments from $190.0 million to $150.0 million. On April 14, 2020, we entered into Amendment No. 5 which, among other things, (i) permanently reduced the asset coverage test from a minimum of 200% to a minimum of 165%; (ii) permanently reduced shareholder's equity and obligor's net worth test from a minimum of $175.0 million each to a minimum of $140.0 million each; (iii) permanently reduced the size of the lender's commitments under the Revolving Facility from $150.0 million to $120.0 million; and (iv) permanently increased the interest rate by 25 basis points with a mechanism for an additional 25 basis points increase dependent on certain testing levels, and added a 50 basis point LIBOR floor. On October 16, 2020, we entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) reduced the size of the revolver commitment from $120.0 million to $100.0 million, (ii) increased the applicable margin on LIBOR borrowings from 2.75% to 3.0%, (iii) permanently reduced the asset coverage test from a minimum of 165% to a minimum of 150%, and (iv) extended the maturity date from December 2022 to October 16, 2024 (with a one year term out period beginning in October 2023).

The Revolving Facility includes an accordion feature permitting us to expand the Revolving Facility, if certain conditions are satisfied; provided, however, that the aggregate amount of the Revolving Facility, collectively, is capped. The Revolving Amendment revised the cap from $300.0 million to $200.0 million. On March 31, 2021, we entered into an Incremental Commitment Agreement which increased the size of the revolver commitment from $100.0 million to $125.0 million. On September 15, 2021, we entered into an Incremental Commitment and Assumption Agreement which further increased the size of the revolver commitment from $125.0 million to $150.0 million.

The Revolving Facility, denominated in US dollars, has an interest rate of LIBOR plus 3.0% (with a 0.5% LIBOR floor). The non-use fee is 1.0% annually if we use 35% or less of the Revolving Facility and 0.5% annually if we use more than 35% of the Revolving Facility. We elect the LIBOR rates on the loans outstanding on our Revolving Facility, which has a LIBOR period that is one, two, three or six months. The LIBOR rate on the USD borrowings outstanding on our Revolving Facility had a one month LIBOR period as of September 30, 2021.

As of September 30, 2021, we had USD borrowings of $100.5 million outstanding under the Revolving Facility with a quarter-end interest rate of 3.50%.

The Revolving Facility generally requires payment of interest on a quarterly basis for ABR loans (commonly based on the Prime Rate or the Federal Funds Rate), and at the end of the applicable interest period for Eurocurrency loans bearing interest at LIBOR, the interest rate benchmarks used to determine the variable rates paid on the Revolving Facility. All outstanding principal is due upon each maturity date. The Revolving Facility also requires a mandatory prepayment of interest and principal upon certain customary triggering events (including, without limitation, the disposition of assets or the issuance of certain securities).

Borrowings under the Revolving Facility are subject to, among other things, a minimum borrowing/collateral base. The facilities have certain collateral requirements and/or covenants, including, but not limited to, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) limitations on the creation or existence of agreements that prohibit liens on certain properties of ours and our subsidiaries, and (e) compliance with certain financial maintenance standards including (i) minimum stockholders’ equity, (ii) a ratio of total assets (less total liabilities not represented by senior securities) to the aggregate amount of senior securities representing indebtedness, of us and our consolidated subsidiaries, of not less than 1.50:1.00, (iii) minimum liquidity, and (iv) minimum net worth. In addition to the financial maintenance standards, described in the preceding sentence, borrowings under the facilities (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in our portfolio.

We cannot be assured that we will be able to borrow funds under the Revolving Facility at any particular time or at all. We are currently in compliance with all financial covenants under the Revolving Facility.

As of September 30, 2021 and December 31, 2020, the carrying amount of the Company’s outstanding Revolving Facility approximated fair value. The fair value of our Revolving Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of our Revolving Facility is estimated based upon market interest rates and entities with similar credit risk. As of September 30, 2021 and December 31, 2020, the Revolving Facility would be deemed to be Level 3 of the fair value hierarchy.

Interest expense and related fees, excluding amortization of deferred financing costs, of $0.9 million and $0.6 million were incurred in connection with the Revolving Facility during the three months ended September 30, 2021 and 2020, respectively. Interest expense and related fees, excluding amortization of deferred financing costs, of $2.1 million and $2.3 million were incurred in connection with the Revolving Facility during the nine months ended September 30, 2021 and 2020, respectively.

Amortization of deferred financing costs of $0.1 million and $0.1 million, respectively, were incurred in connection with the Revolving Facility for the three months ended September 30, 2021 and 2020. Amortization of deferred financing costs of $0.4 million and $0.9 million, which included one-time accelerated amortization of $0.0 million and $0.5 million in connection with the reductions in the revolver commitment size, respectively, were incurred in connection with the Revolving Facility for the nine months ended September 30, 2021 and 2020. As of September 30, 2021 and December 31, 2020, we had $1.6 million and $1.8 million, respectively, of deferred financing costs related to the Revolving Facility, which is presented as an asset on the Consolidated Statements of Assets and Liabilities.

The 1940 Act was modified by allowing a BDC to increase the maximum amount of leverage it may incur under the 1940 Act from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements are met. At our Annual Meeting of Stockholders on June 14, 2019, stockholders approved a proposal to reduce our asset coverage ratio to 150%. Such asset coverage ratio became effective on June 15, 2019. On April 14, 2020, we received lender consent to reduce our asset coverage ratio to 165% and on October 16, 2020, we received lender consent to reduce our asset coverage ratio to 150%. Our asset coverage ratio as of September 30, 2021 was 189%.

Notes

In December 2015 and November 2016, we completed a public offering of $35.0 million and $25.0 million, respectively, in aggregate principal amount of 6.75% notes due 2022, or the 2022 Notes. The 2022 Notes bore interest at a rate of 6.75% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning March 30, 2016 and traded on the New York Stock Exchange under the trading symbol “FCRZ”. On June 21, 2021, we repaid the 2022 Notes and they are no longer outstanding.

On October 5, 2018, we completed a public offering of $50.0 million in aggregate principal amount of 6.125% notes due 2023. The 2023 Notes mature on October 30, 2023, and may be redeemed in whole or in part at any time or from time to time at our option on or after October 30, 2021. The 2023 Notes bear interest at a rate of 6.125% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning December 30, 2018 and trade on the New York Stock Exchange under the trading symbol “FCRW”. On October 16, 2018, the underwriters exercised their option to purchase an additional $1.6 million of 2023 Notes to cover overallotments.

On May 18, 2021, we completed a public offering of $60.0 million in aggregate principal amount of 5.00% notes due 2026 (“2026 Notes”). The 2026 Notes mature on May 25, 2026, and may be redeemed in whole or in part at any time or from time to time at our option on or after May 25, 2023. The 2026 Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning September 30, 2021 and trade on the New York Stock Exchange under the trading symbol “FCRX”. On June 2, 2021, the underwriters exercised their option to purchase an addition $9.0 million of 2026 Notes to cover overallotments. The proceeds from this public offering were used to redeem the 2022 Notes and partially repay the Revolving Facility. The redemption of the 2022 Notes was completed on June 21, 2021. As result of this redemption, we recognized a loss on the extinguishment of debt of $0.5 million during the quarter ended June 30, 2021 on the Consolidated Statements of Operations. We refer to the 2022 Notes, 2023 Notes, and 2026 Notes collectively as the Notes, except that the 2022 Notes are not included with respect to dates subsequent to their redemption and the 2026 Notes are not included with respect to dates prior to their issuance.

The Notes are our direct unsecured obligations and rank: (i) pari passu with our other outstanding and future senior unsecured indebtedness; (ii) senior to any of our future indebtedness that expressly provides it is subordinated to the Notes; (iii) effectively subordinated to all our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness, including without limitation, borrowings under our Revolving Facility; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries.

The Base Indenture, as supplemented by the First, Second, Third and Fourth Supplemental Indentures (the “Indenture”), contains certain covenants including covenants requiring us to comply with (regardless of whether it is subject to) Section 18 (a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. Currently these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowings (if certain requirements are met). These covenants are subject to important limitations and exceptions that are described in the Indenture. The Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding Notes in a series may declare such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. As of September 30, 2021, we were in compliance with the terms of the Base Indenture and the First, Second, Third and Fourth Supplemental Indentures governing the Notes. See Note 7 to our consolidated financial statements for more detail on the Notes.

As of September 30, 2021, the carrying amount and fair value of our 2023 Notes was $51.6 million and $51.9 million, respectively. As of September 30, 2021, the carrying amount and fair value of our 2026 Notes was $69.0 million and $72.5 million, respectively. As of December 31, 2020, the carrying amount and fair value of our 2023 Notes was $51.6 million and $52.4 million, respectively. As of December 31, 2020, the carrying amount and fair value of our 2022 Notes was $60.0 million and $60.6 million, respectively. The fair value of our Notes is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Notes is based on the closing price of the security, which is a Level 2 input under ASC 820 due to the trading volume.

In connection with the issuance of the 2023 and 2026 Notes, we incurred $4.4 million of fees and expenses. Any of these deferred financing costs are presented as a reduction to the notes payable balance and are being amortized using the effective interest method over the term of the Notes. For the three months ended September 30, 2021 and 2020, we amortized approximately $0.2 million and $0.2 million of deferred financing costs, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. For the nine months ended September 30, 2021 and 2020, we amortized approximately $0.7 million and $0.6 million of deferred financing costs, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. As of September 30, 2021 and December 31, 2020, we had $2.9 million and $1.9 million, respectively, of remaining deferred financing costs on the Notes, which reduced the notes payable balance on our Consolidated Statements of Assets and Liabilities.

For the three months ended September 30, 2021 and 2020, we incurred interest expense on the Notes of approximately $1.6 million and $1.8 million, respectively. For the nine months ended September 30, 2021 and 2020, we incurred interest expense on the Notes of approximately $5.5 million and $5.4 million, respectively.

Commitments and Contingencies and Off-Balance Sheet Arrangements

From time to time, we, or the Advisor, may become party to legal proceedings in the ordinary course of business, including proceedings related to the enforcement of our rights under contracts with our portfolio companies. Neither we, nor the Advisor, are currently subject to any material legal proceedings.

Unfunded commitments to provide funds to portfolio companies are not reflected in our Consolidated Statements of Assets and Liabilities. Our unfunded commitments may be significant from time to time. These commitments will be subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We intend to use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments.

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As of September 30, 2021 and December 31, 2020, we have the following unfunded commitments to portfolio companies (in millions):

	As of
	September 30, 2021		December 31, 2020

Unfunded delayed draw facilities
Advanced Web Technologies	$	0.8	$	0.8
AppFire Technologies, LLC		—		0.2
BCDI Rodeo Dental Buyer, LLC		0.7		0.7
CC Amulet Management, LLC		0.9		—
Cedar Services Group, LLC		1.4		—
ConvenientMD		1.7		—
Doxa Insurance Holdings, LLC		1.4		1.0
Groundworks Operations, LLC		3.2		0.9
HealthDrive Corporation		0.1		—
Integrated Pain Management Medical Group, Inc.		0.4		—
Multi Specialty Healthcare LLC		0.2		—
Newcleus, LLC		1.3		—
PDFTron Systems Inc.		0.2		0.6
Socius Insurance Services, Inc.		1.8		—
SuperHero Fire Protection, LLC		1.3		—
TMA Buyer, LLC		1.5		—
		16.9		4.2
Unfunded revolving commitments
1-800 Hansons, LLC ⁽¹⁾		0.1		0.1
A&A Global Imports, LLC		0.6		—
ABC Legal Services, LLC		—		0.7
Action Point, Inc		0.6		0.7
Advanced Web Technologies		0.3		0.3
AppFire Technologies, LLC		—		0.2
Aurotech, LLC		0.4		0.4
CC Amulet Management, LLC		0.5		—
Cedar Services Group, LLC		0.8		—
Certify, Inc.		0.1		0.1
Communication Technology Intermediate		—		0.4
ConvenientMD		0.7		—
Doxa Insurance Holdings, LLC		0.3		0.3
EBS Intermediate LLC		1.7		1.7
Gener8, LLC		0.9		1.5
Groundworks Operations, LLC		0.1		0.1
HealthDrive Corporation⁽²⁾		2.2		1.8
iLending LLC		0.7		—
Integrated Pain Management Medical Group, Inc.		0.4		—
IRC Opco LLC		0.8		—
Lash Opco LLC		0.4		0.3
Loadmaster Derrick & Equipment, Inc. ⁽³⁾		0.2		3.3
MarkLogic Corporation		0.3		0.3
Marlin DTC-LS Midco 2, LLC		0.1		—
Matilda Jane Holdings, Inc.		1.0		1.0
Multi Specialty Healthcare LLC		0.7		0.7
Newcleus, LLC		0.4		—
NWN Parent Holdings LLC		0.6		—
PDFTron Systems Inc.		0.3		0.2
QuarterMaster Newco, LLC		0.4		0.4
Quorum Health Resources		0.7		—

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smarTours, LLC		0.4		0.6
Socius Insurance Services, Inc.		0.5		—
SolutionReach, Inc.		0.9		0.2
SuperHero Fire Protection, LLC		0.3		—
The Mulch & Soil Company, LLC		0.6		—
TMA Buyer, LLC		0.4		—
Women's Health USA, Inc.		—		1.5
		19.4		16.8
Unfunded commitments to investments in funds
Freeport Financial SBIC Fund LP		0.7		0.7
Gryphon Partners 3.5, L.P.		0.3		0.3
		1.0		1.0
Total unfunded commitments	$	37.3	$	22.0

⁽¹⁾	We have sole discretion as to whether to lend under this revolving commitment.

⁽²⁾	Includes amounts set aside for issued standby letters of credit.

⁽³⁾	As of December 31, 2020, we had issued a standby letter of credit of $3.1 million which expired on January 19, 2021.

The changes in fair value of our unfunded commitments are considered to be immaterial as the yield determined at the time of underwriting is expected to be materially consistent with the yield upon funding. We will fund our unfunded commitments from the same sources we use to fund our investment commitments that are funded at the time they are made (which are typically existing cash and cash equivalents and borrowings under our Revolving Facility). We manage our liquidity to ensure that we have available capital to fund our unfunded commitments as necessary.

Distributions

We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain our status as a RIC, we are required to distribute, for each taxable year, at least 90% of our investment company taxable income. To avoid a 4% excise tax on undistributed earnings, we are required to distribute each calendar year the sum of (i) 98% of our ordinary income for such calendar year (ii) 98.2% of our capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which we paid no federal income tax.

Our quarterly distributions, if any, will be determined by our board of directors. We intend to make distributions to stockholders on a quarterly basis of substantially all of our net investment income. Although we intend to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by our board of directors and will largely be driven by portfolio specific events and tax considerations at the time.

In addition, we may be limited in our ability to make distributions due to the BDC asset coverage test for borrowings applicable to us as a BDC under the 1940 Act.

The following table summarizes our recent distributions declared and paid or to be paid on all shares including distributions reinvested, if any:

Date Declared	Record Date	Payment Date	Amount Per Share
August 4, 2020	September 15, 2020	September 30, 2020	$	0.10
October 30, 2020	December 15, 2020	December 31, 2020	$	0.10
March 2, 2021	March 15, 2021	March 31, 2021	$	0.10
May 4, 2021	June 15, 2021	June 30, 2021	$	0.10
August 3, 2021	September 15, 2021	September 30, 2021	$	0.10
November 2, 2021	December 15, 2021	December 31, 2021	$	0.10

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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. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of our status as a regulated investment company. We cannot assure stockholders that they will receive any distributions at a particular level.

We maintain an “opt in” dividend reinvestment plan for our common stockholders. As a result, unless stockholders specifically elect to have their dividends automatically reinvested in additional shares of common stock, stockholders will receive all such dividends in cash. There were no dividends reinvested for the three and nine months ended September 30, 2021 or the three and nine months ended September 30, 2020.

Under the terms of our dividend reinvestment plan, dividends will primarily be paid in newly issued shares of common stock. However, we reserve the right to purchase shares in the open market in connection with the implementation of the plan. This feature of the plan means that, under certain circumstances, we may issue shares of our common stock at a price below net asset value per share, which could cause our stockholders to experience dilution.

Distributions in excess of our current and accumulated earnings and profits would generally be treated as a return of capital to the extent of the stockholder’s adjusted tax basis in our shares. If a stockholder’s tax basis is reduced to zero, the stockholder would generally treat any remaining distributions in excess of our current and accumulated earnings and profits as a capital gain. The determination of the tax attributes of our distributions will be made annually as of the end of our fiscal year based upon our taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year. Each year, a statement on Form 1099-DIV identifying the source of the distributions will be sent to our U.S. stockholders of record (other than certain exempt recipients). Our board of directors presently intends to declare and pay quarterly distributions. Our ability to pay distributions could be affected by future business performance, liquidity, capital needs, alternative investment opportunities and loan covenants.

We may generate qualified interest income and short-term capital gains that may be exempt from United States withholding tax when distributed to foreign accounts. A RIC is permitted to designate distributions in the form of dividends that represent interest income from U.S. sources (commonly referred to as qualified interest income) and short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation. As of September 30, 2021, the percentage of 2021 income estimated as qualified interest income for tax purposes was 89.6%.

Stock Repurchase Program

On December 16, 2019, our board of directors authorized a new $10.0 million stock repurchase program, which expired on December 16, 2020. Effective December 17, 2019, we adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act, which was terminated on March 10, 2020. On May 4, 2021, our board of directors authorized a new $10.0 million stock repurchase program, which, unless extended by our board of directors, will expire on May 5, 2022 and may be modified or terminated at any time for any reason without prior notice. We provided our stockholders with notice of our ability to repurchase shares of our common stock in accordance with 1940 Act requirements. We retired all shares of common stock purchased in connection with the stock repurchase program and plan to retire all shares of common stock that we purchase in the future in connection with the program.

The following table summarizes our share repurchases under our stock repurchase program for the three and nine months ended September 30, 2021 and 2020 (in millions):

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Dollar amount repurchased⁽¹⁾	$	—	$	—	$	—	$	2.2
Shares repurchased		—		—		—		0.3
Average price per share (including commission)	$	—	$	—	$	—	$	6.33
Weighted average discount to net asset value		—		—		—		16.99	%

⁽¹⁾	Effective December 17, 2019, we adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act. All shares repurchased during the nine months ended September 30, 2020 were under the Plan, which was terminated on March 10, 2020.

Related Party Transactions

Refer to Note 4 – “Related Party Transactions”, in the Notes to the Consolidated Financial Statements.

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Critical accounting policies

For a description of our accounting policies, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our 2020 Annual Report on Form 10-K. We consider our most significant accounting policies to be those related to its Valuation of Portfolio Investments, Revenue Recognition, Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation and U.S. Federal Income Taxes, including excise tax. There have been no material changes to our critical accounting policies as described in our 2020 Annual report on Form 10-K.

Recent Developments

From October 1, 2021 through November 4, 2021, we made new investments totaling $11.9 million at par and follow-on investments, including revolver and delayed draw fundings, totaling $1.1 million at par with a combined weighted average yield of 6.5%.

On October 26, 2021, we received total proceeds of $21.6 million from the repayment of our first lien senior secured term loan investment at par and sale of our common equity investment in Igloo Products Corp.

On November 2, 2021, our board of directors declared a dividend of $0.10 per share payable on December 31, 2021 to stockholders of record at the close of business on December 15, 2021.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. As of September 30, 2021, 93.2% of the debt investments in our portfolio are floating rate loans, based upon fair market value. In the future, we expect other debt investments in our portfolio will have floating rates. These floating rate loans typically bear interest in reference to LIBOR, which are indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates subject to an interest rate floor. As of September 30, 2021, the weighted average interest rate floor on our floating rate loans was 1.06%. Our Revolving Facility is also subject to floating interest rates subject to an interest rate floor of 0.50%.

Based on our September 30, 2021 Consolidated Statement of Assets and Liabilities, the following table shows the annual impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments), which assumes no changes in our investments and borrowings (in millions):

Change in Basis Points	Interest Income		Interest Expense		Net Income⁽¹⁾
Up 300 basis points	$	6.1	$	2.7	$	3.4
Up 200 basis points	$	3.2	$	1.7	$	1.5
Up 100 basis points	$	0.4	$	0.7	$	(0.3	)
Down 300 basis points	$	—	$	—	$	—
Down 200 basis points	$	—	$	—	$	—
Down 100 basis points	$	—	$	—	$	—

(1)	Excludes the impact of incentive fees based on pre-incentive fee net investment income. See “Note 4. - Related Party Transaction” footnote to our consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 for more information on the incentive fee.

Although we believe that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size and composition of the assets on the balance sheet and other business developments, including borrowings under our Revolving Facility, that could affect net increase in net assets resulting from operations, or net income.

In the future, we may use other standard hedging instruments such as futures, options and forward contacts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments.

From time to time, we may make investments that are denominated in a foreign currency. These investments are translated into U.S. dollars at each balance sheet date, exposing us to movements in foreign exchange rates. We have the ability to borrow in certain foreign currencies under our Revolving Facility. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment.

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Item 4.

Controls and Procedures

Disclosure Controls and Procedures

Our management with the participation of our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer conducted an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Accounting Officer have concluded that, as of the period covered by this quarterly report on form 10-Q, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Acts recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Accounting Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.

Legal proceedings

We are not a defendant in any material pending legal proceeding, and no such material proceedings are known to be contemplated. However, from time to time, we may be party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under the contracts with our portfolio companies.

Item 1A.

Risk Factors

There have been no changes to the risk factors described in Part I, Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 5, 2021.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Stock Repurchase Program

On December 16, 2019, our board of directors authorized a $10.0 million stock repurchase program, which expired on December 16, 2020. Effective December 17, 2019, we adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act, which was terminated on March 10, 2020.

On May 4, 2021, our board of directors authorized a new $10.0 million stock repurchase program, which, unless extended by our board of directors, will expire on May 5, 2022 and may be modified or terminated at any time for any reason without prior notice. In connection with the authorization of the program, we provided our stockholders with notice of our ability to repurchase shares of our common stock in accordance with 1940 Act requirements. We retired all shares of common stock purchased in connection with the stock repurchase program and plan to retire all shares of common stock that we purchase in the future in connection with the program. There were no share repurchases under any stock repurchase program during the three months ended September 30, 2021.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information

None.

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Item 6.

Exhibits

Listed below are the exhibits that are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):

3.1	Third Amended and Restated Certificate of Incorporation (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on August 5, 2020)

3.2	Certificate of Amendment of Third Amended and Restated Certificate of Incorporation of First Eagle Alternative Capital BDC, Inc., dated as of June 21, 2021 (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on June 25, 2021)

3.3	Third Amended and Restated By-Laws, dated as of June 24, 2021 (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on June 25, 2021)

11	Computation of Per Share Earnings (included in the notes to the consolidated financial statements contained in this report).

31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.*

31.2	Certification of Chief Accounting Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.*

32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).*

32.2	Certification of Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).*

(*)	Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.


Date: November 4, 2021	By:	/s/ Christopher J. Flynn
		Christopher J. Flynn
		Chief Executive Officer

Date: November 4, 2021	By:	/s/ Jennifer M. Wilson
		Jennifer M. Wilson
		Chief Accounting Officer

108