The Company classifies its investment portfolio by level of affiliation and control in accordance with the requirements of the 1940 Act. As defined in the 1940 Act, investee companies are generally deemed as affiliated investments when a company or individual owns 5.0% or more of the outstanding voting securities of an investee company. Under the 1940 Act, control investments are generally those where the investor has the ability or power to exercise a controlling influence over the management or policies of an investee company. Control is generally deemed to exist when a company or individual owns beneficially more than 25.0% of the outstanding voting securities of an investee company, or maintains greater than 50.0% representation on the investee company's board of directors.

The Company’s affiliate and control investments as of June 30, 2026, along with the transactions during the six months ended June 30, 2026, are as follows (in thousands):


			For the Six Months Ended June 30, 2026
Portfolio Company		Investment Description	Investment Income Earned 2026		Fair Value as of December 31, 2025		Gross Additions(1)		Gross Reductions(2)			Net Realized Gain (Loss)		Net Change in Unrealized Gain (Loss)			Fair Value as of June 30, 2026(3)
Affiliate Investments
	Equity Investments
	Coginiti Corp	Common Stock		-		-		-		-			-		-			-
	Total Equity Investments			-		-		-		-			-		-			-

	Warrants
	Coginiti Corp	Common Stock		-		-		-		-			-		-			-
	Total Warrants			-		-		-		-			-		-			-
Total Affiliate Investments			$	-	$	-	$	-	$	-		$	-	$	-		$	-

Control Investments
	Equity Investments
	Pivot3, Inc.	100% Equity Interest		-		1,493		-		(2,000	)		1,050		(543	)		-
	Runway-Cadma I LLC	50% Equity Interest		864		13,253		-		(103	)		-		(115	)		13,035
	Total Equity Investments			864		14,746		-		(2,103	)		1,050		(658	)		13,035
Total Control Investments			$	864	$	14,746	$	-	$	(2,103	)	$	1,050	$	(658	)	$	13,035

(1)

Gross additions include increases in the cost basis of investments resulting from fundings, PIK interest, accretion of OID and ETP, the exchange of one or more existing investments for one or more new investments and the movement of an investment between categories.

(2)

Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing investments for one or more new investments and the movement of an investment between categories.

(3)

All affiliate and control investments, which as of June 30, 2026, represented 2.59% of the Company’s net assets, may be deemed to be restricted securities under the Securities Act, and were valued at fair value as determined in good faith by the Company’s Board of Directors.

The Company’s affiliate and control investments as of December 31, 2025, along with the transactions during the year ended December 31, 2025, are as follows (in thousands):


			For the Year Ended December 31, 2025
Portfolio Company		Investment Description	Investment Income Earned 2025		Fair Value as of December 31, 2024		Gross Additions(1)		Gross Reductions(2)			Net Realized Gain (Loss)			Net Change in Unrealized Gain (Loss)			Fair Value as of December 31, 2025(3)
Affiliate Investments
	Debt Investments
	Gynesonics, Inc. - Senior Secured	SOFR+8.75%, 8.00% ceiling, 5.00% ETP, due 11/30/2026	$	902	$	27,217	$	-	$	(26,235	)	$	-		$	(982	)	$	-
	Total Debt Investments			902		27,217		-		(26,235	)		-			(982	)		-

	Equity Investments
	Coginiti Corp	Common Stock		-		-		-		-			-			-			-
	Gynesonics, Inc.	Series A-2 Preferred Stock		-		25,000		-		(25,000	)		-			-			-
		Series A-1 Preferred Stock		-		12,355		-		(12,355	)		9,255			(9,255	)		-
	Total Equity Investments			-		37,355		-		(37,355	)		9,255			(9,255	)		-

	Warrants
	Coginiti Corp	Common Stock		-		-		-		-			-			-			-
	Gynesonics, Inc.	Success fee		-		-		-		-			(312	)		312			-
	Total Warrants			-		-		-		-			(312	)		312			-
Total Affiliate Investments			$	902	$	64,572	$	-	$	(63,590	)	$	8,943		$	(9,925	)	$	-

Control Investments
	Equity Investments
	Pivot3, Inc.	100% Equity Interest		-		1,198		-		-			-			295			1,493
	Runway-Cadma I LLC	50% Equity Interest		-		5,742		6,683		-			-			828			13,253
	Total Equity Investments			-		6,940		6,683		-			-			1,123			14,746
Total Control Investments			$	-	$	6,940	$	6,683	$	-		$	-		$	1,123		$	14,746

(1)

(2)

Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing Investments for one or more new investments and the movement of investment between categories.

(3)

All affiliate and control investments, which as of December 31, 2025, represented 3.04% of the Company’s net assets, may be deemed to be restricted securities under the Securities Act, and were valued at fair value as determined in good faith by the Company’s Board of Directors.

The following table shows the fair value of the Company's portfolio of investments by geographic region as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026					December 31, 2025
Geographic Region	Investments at Fair Value		Percentage of Net Assets			Investments at Fair Value		Percentage of Net Assets
United States
Western United States	$	356,898		71.02	%	$	329,514		67.95	%
Northeastern United States		274,441		54.61			171,308		35.32
Midwestern United States		192,640		38.33			156,397		32.25
Northwestern United States		73,882		14.70			74,198		15.30
South Central United States		72,185		14.36			41,413		8.54
Southeastern United States		50,294		10.01			21,590		4.45
Runway-Cadma I LLC(1)		13,035		2.59			13,253		2.73
Total United States		1,033,375		205.62			807,673		166.54

Germany		63,631		12.66			67,665		13.95
United Kingdom		57,437		11.43			34,415		7.10
Netherlands		17,660		3.51			17,525		3.61
Australia		11,430		2.27			-		-
Canada		8,817		1.75			124		0.03
Total	$	1,192,350		237.24	%	$	927,402		191.23	%

(1)

Runway-Cadma I LLC is a joint venture between the Company and Cadma. This entity invests in secured loans to growth-stage companies in different geographic regions that have been originated by the Company. See "Note 2 – Summary of Significant Accounting Policies" for further discussion.

The following table shows the fair value of the Company's portfolio of investments by industry using the Global Industry Classification Standard as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026					December 31, 2025
Industry	Investments at Fair Value		Percentage of Net Assets			Investments at Fair Value		Percentage of Net Assets
Application Software	$	216,324		43.05	%	$	226,692		46.74	%
Health Care Equipment & Services		181,964		36.21			122,997		25.36
Pharmaceutical, Biotechnology & Life Sciences		166,947		33.22			1,994		0.41
Financial Services		110,358		21.95			83,915		17.31
Commercial & Professional Services		104,875		20.86			115,268		23.77
Systems Software		97,444		19.38			97,823		20.17
Technology Hardware & Equipment		72,886		14.50			72,922		15.03
Household & Personal Products		66,370		13.21			39,777		8.20
Insurance		45,598		9.08			44,831		9.25
Consumer Staples Distribution & Retail		43,139		8.58			47,813		9.86
Consumer Services		35,265		7.02			19,851		4.09
Media & Entertainment		27,400		5.45			30,297		6.25
Multi-Sector Holdings(1)		23,780		4.73			23,222		4.79
Total	$	1,192,350		237.24	%	$	927,402		191.23	%

(1)

Multi-Sector Holdings consists of the Company's investment in Runway-Cadma I LLC, a joint venture between the Company and Cadma. This entity invests in secured loans to growth-stage companies that have been originated by the Company. See "Note 2 – Summary of Significant Accounting Policies" for further discussion.

Derivative Financial Instruments

In the normal course of business, the Company may utilize derivative contracts in connection with its investment activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Company's derivative activities and exposure to derivative contracts primarily involve equity price risks. In addition to the primary underlying risk, additional counterparty risk exists due to the potential inability of counterparties to meet the terms of their contracts.

The Company may also hold warrants and other contractual rights, including royalty interests, earnouts, success fees, contingent payment rights and similar securities, in connection with its investment activities. Warrants provide exposure and potential gains upon increases in the portfolio company’s equity value. A warrant has a limited life and expires on a certain date. As a warrant’s expiration date approaches, the time value of the warrant will decline. In addition, if the stock underlying the warrant declines in price, the intrinsic value of the warrant will decline. Further, if the price of the stock underlying the warrant does not exceed the strike price of the warrant on the expiration date, the warrant will expire worthless. As a result, there is the potential for the entire value of an investment in a warrant to be lost.

Other contractual rights generally represent contractual arrangements that provide the Company with the right to receive cash, equity or other consideration upon the occurrence of specified future events or based on specified contractual terms. The value of these instruments may be impacted by, among other factors, the operating performance of the related portfolio company, the achievement of milestones or other contractual conditions, changes in expected future cash flows, and the ability of counterparties to perform under the relevant agreements. As a result, there is the potential for all or part of the value of an investment in other contractual rights to be lost.

The Company’s volume of warrant and other contractual rights investment activity is closely correlated to its primary senior secured loans to portfolio companies. Counterparty risk exists from the potential failure of an issuer or counterparty to settle or otherwise perform under the relevant agreements. The maximum risk of loss from counterparty risk is the fair value of the securities and the purchase price of the warrants and other contractual rights. The Board of Directors considers the effects of counterparty risk when determining the fair value of its investments in warrants and other contractual rights.

For the three and six months ended June 30, 2026, the Company had a net realized gain of $3.3 million and $3.5 million, respectively, and a net change in unrealized loss of $1.8 million and $3.2 million, respectively, from its investments in warrants and other contractual rights. For the three months ended June 30, 2025, the Company had no realized gains or losses from its investments in warrants and other contractual rights. For the six months ended June 30, 2025, the Company had a net realized loss of $1.3 million from its investments in warrants and other contractual rights. For the three and six months ended June 30, 2025, the Company had a net change in unrealized gains of $0.1 million and $0.9 million, respectively, from its investments in warrants and other contractual rights. Realized gains and losses from warrants and other contractual rights are included in the respective control, affiliate, or non-control/non-affiliate "Net realized gain (loss)" on the Consolidated Statements of Operations. Unrealized gains and losses from investments in warrants and other contractual rights are included in the respective control, affiliate, or non-control/non-affiliate "Net change in unrealized gain (loss)" on the Consolidated Statements of Operations.

During the three months ended June 30, 2026, the Company’s foreign currency forward contract to sell £22.0 million and purchase $28.9 million matured and was settled on May 14, 2026. The Company recognized a realized loss of $0.9 million upon settlement. As of June 30, 2026, the Company had no foreign currency forward contracts outstanding.

Note 4 – Investments

Derivative Financial Instruments