10-Q

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

LAGO Evergreen Credit

Consolidated Statements of Assets and Liabilities


	June 30, 2026
	(unaudited)		December 31, 2025
Assets
Investments
Non-controlled / non-affiliated investments (cost of $221,801,254 and $183,757,969 at June 30, 2026 and December 31, 2025, respectively)	$	221,398,969	$	185,613,878
Non-controlled / affiliated investments (cost of $14,395,522 and $0 at June 30, 2026 and December 31, 2025, respectively)		14,088,687		-
Total investments, at fair value (cost of $236,196,776 and $183,757,969 at June 30, 2026 and December 31, 2025, respectively)		235,487,656		185,613,878
Cash and cash equivalents		1,265,079		571,695
Restricted cash		2,746,491		2,708,324
Interest receivable		2,355,819		1,899,745
Prepaid expenses and other assets		113,852		87,402
Total assets	$	241,968,897	$	190,881,044
Liabilities
Line of credit (net of deferred financing costs of $1,384,683 and $1,552,114 at June 30, 2026 and December 31, 2025, respectively)	$	91,519,185	$	65,243,355
Base Management Fees payable		802,436		583,413
Income Incentive Fees payable		855,326		691,016
Capital Gains Incentive Fees payable		-		371,182
Accrued Board of Trustees’ fees		38,000		38,000
Accrued audit and tax fees		173,500		233,999
Organizational costs payable to the Investment Adviser		103,462		68,975
Offering costs payable to the Investment Adviser		46,538		31,025
Interest payable		471,044		402,209
Accrued expenses and other liabilities		149,833		153,114
Distribution payable		4,899,879		3,937,553
Total liabilities	$	99,059,203	$	71,753,841
Commitments and contingencies (Note 6)
Net assets
Common shares, par value $0.01 per share, unlimited shares authorized (5,632,045 and 4,687,563 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively)		56,321		46,876
Paid-in-capital in excess of par value		141,603,146		117,536,141
Total distributable earnings (loss)		1,250,227		1,544,186
Total net assets		142,909,694		119,127,203
Total liabilities and net assets	$	241,968,897	$	190,881,044
Net asset value per share	$	25.37	$	25.41

The accompanying notes are an integral part of these consolidated unaudited financial statements.

LAGO Evergreen Credit

Consolidated Statements of Operations

(unaudited)


	For the Three Months Ended
	June 30, 2026			June 30, 2025		For the Six Months Ended June 30, 2026			For the period March 3, 2025 (“Commencement of Operations”) through June 30, 2025

Investment income:
From non-controlled / non-affiliated investments:
Interest income	$	7,731,265		$	2,610,566	$	17,113,708		$	3,418,387
Paid-in-kind interest income		106,197			9,047		220,217			10,566
Fee income		128,750			-		848,750			-
Total investment income from non-controlled / non-affiliated investments:		7,966,212			2,619,613		18,182,675			3,428,953
From non-controlled / affiliated investments:
Interest income		427,041			-		427,041			-
Total investment income from non-controlled / affiliated investments:		427,041			-		427,041			-
Other interest income		43,708			228,407		71,919			266,836
Total investment income		8,436,961			2,848,020		18,681,635			3,695,789
Expenses:
Interest expense and other debt fees		1,352,468			228,934		2,534,867			313,357
Base Management Fees		802,436			247,544		1,510,453			305,002
Income Incentive Fees		855,326			295,924		2,048,484			370,164
Capital Gains Incentive Fees		(122,177	)		212,085		(371,182	)		209,823
Professional fees		263,671			264,547		502,768			403,643
Board of Trustees’ fees		38,000			39,322		77,580			77,322
Administration fees		60,717			65,510		112,785			88,839
Reimbursement of organizational expenses paid by the Investment Adviser		103,462			-		103,462			-
Amortization of deferred offering costs		15,513			-		31,025			-
Other general and administrative expenses		98,520			29,335		152,568			39,851
Total expenses		3,467,936			1,383,201		6,702,810			1,808,001
Net investment income (loss)		4,969,025			1,464,819		11,978,825			1,887,788
Net realized and unrealized gain (loss) on investments:
Net change in unrealized gain (loss) on non-controlled / non-affiliated investments		(1,240,281	)		1,086,380		(2,485,305	)		1,075,071
Net change in unrealized gain (loss) on non-controlled / affiliated investments		(79,724	)		-		(79,724	)		-
Net realized and unrealized gain (loss) on investments		(1,320,005	)		1,086,380		(2,565,029	)		1,075,071
Net increase (decrease) in net assets resulting from operations	$	3,649,020		$	2,551,199	$	9,413,796		$	2,962,859

The accompanying notes are an integral part of these consolidated unaudited financial statements.

LAGO Evergreen Credit

Consolidated Statements of Changes in Net Assets

(unaudited)


	Common Shares
For the three months ended June 30, 2025	Shares		Par value		Paid in capital in excess of par		Total distributable earnings (losses)			Total net assets
Balance at March 31, 2025		2,723,631	$	27,236	$	68,063,531	$	30,352			68,121,119
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss)		-		-		-		1,464,819			1,464,819
Net change in unrealized gain (loss) on investments		-		-		-		1,086,380			1,086,380
Distributions declared to shareholders		-		-		-		(1,686,890	)		(1,686,890	)
Issuance of common shares		650,150		6,502		16,253,748		-			16,260,250
Total increase for the three months ended June 30, 2025		650,150		6,502		16,253,748		864,309			17,124,559
Balance at June 30, 2025	$	3,373,781	$	33,738	$	84,317,279	$	894,661		$	85,245,678


	Common Shares
For the three months ended June 30, 2026	Shares		Par value		Paid in capital in excess of par		Total distributable earnings (losses)			Total net assets
Balance at March 31, 2026		5,225,953	$	52,260	$	131,211,257	$	2,501,086		$	133,764,603
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss)		-		-		-		4,969,025			4,969,025
Net change in unrealized gain (loss) on investments		-		-		-		(1,320,005	)		(1,320,005	)
Distributions declared to shareholders		-		-		-		(4,899,879	)		(4,899,879	)
Issuance of common shares		406,092		4,061		10,391,889		-			10,395,950
Total increase for the three months ended June 30, 2026		406,092		4,061		10,391,889		(1,250,859	)		9,145,091
Balance at June 30, 2026		5,632,045	$	56,321	$	141,603,146	$	1,250,227		$	142,909,694

LAGO Evergreen Credit

Consolidated Statements of Changes in Net Assets

(unaudited)


	Common Shares
For the period March 3, 2025 (“Commencement of Operations”) through June 30, 2025	Shares		Par value		Paid in capital in excess of par		Total distributable earnings (losses)			Total net assets
Balance at March 3, 2025 (“Commencement of Operations”)		1,000	$	10	$	24,990	$	-		$	25,000
Issuance of shares related to Formation Transaction1		2,722,631		27,226		68,038,541		-			68,065,767
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss)		-		-		-		1,887,788			1,887,788
Net change in unrealized gain (loss) on investments		-		-		-		1,075,071			1,075,071
Distributions declared to shareholders		-		-		-		(2,068,198	)		(2,068,198	)
Issuance of common shares		650,150		6,502		16,253,748		—			16,260,250
Total increase for the period from the Commencement of Operations through June 30, 2025		3,372,781		33,728		16,253,748		894,661			17,154,911
Balance at June 30, 2025	$	3,373,781	$	33,738	$	84,317,279	$	894,661		$	85,245,678

1 See Note 1 – Organization for further information related to the Formation Transaction.


	Common Shares
For the six months ended June 30, 2026	Shares		Par value		Paid in capital in excess of par		Total distributable earnings (losses)			Total net assets
Balance at December 31, 2025		4,687,563	$	46,876	$	117,536,141	$	1,544,186		$	119,127,203
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss)		-		-		-		11,978,825			11,978,825
Net change in unrealized gain (loss) on investments		-		-		-		(2,565,029	)		(2,565,029	)
Distributions declared to shareholders		-		-		-		(9,707,755	)		(9,707,755	)
Issuance of common shares		944,482		9,445		24,067,005		-			24,076,450
Total increase for the six months ended June 30, 2026		944,482		9,445		24,067,005		(293,959	)		23,782,491
Balance at June 30, 2026		5,632,045	$	56,321	$	141,603,146	$	1,250,227		$	142,909,694

The accompanying notes are an integral part of these consolidated unaudited financial statements.

LAGO Evergreen Credit

Consolidated Statements of Cash Flows

(unaudited)


	For the Six Months Ended June 30, 2026			For the period March 3, 2025 (“Commencement of Operations”) through June 30, 2025
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	9,413,796		$	2,962,859
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net change in unrealized (gain) loss on non-controlled / non-affiliated investments		2,485,305			(1,075,071	)
Net change in unrealized (gain) loss on non-controlled / affiliated investments		79,724			—
Paid-in-kind interest income		(220,217	)		(10,566	)
Non-cash fee income		(720,000	)		—
Amortization of deferred financing costs		208,796			85,009
Purchases of investments in portfolio companies, net of proceeds from deferred loan fees		(66,053,493	)		(34,330,500	)
Net accretion of discounts and amortization of premiums on investments		(3,893,314	)		(678,979	)
Proceeds from loan repayments on investments in portfolio companies		18,448,217			1,118,750

Changes in operating assets and liabilities:
Cash received from Formation Transaction1		—			27,586,601
(Increase) decrease in interest receivable		(456,074	)		(443,047	)
(Increase) decrease in prepaid expenses and other assets		(26,450	)		(106,800	)
Increase (decrease) in Base Management Fees payable		219,023			67,589
Increase (decrease) in Income Incentive Fees payable		164,310			52,668
Increase (decrease) in Capital Gains Incentive Fees payable		(371,182	)		209,822
Increase (decrease) in accrued audit and tax fees		(60,499	)		73,999
Increase (decrease) in organizational costs payable to the Investment Adviser		34,487			—
Increase (decrease) in offering costs payable to Adviser		15,513			—
Increase (decrease) in accrued Board of Trustees’ fees		—			38,000
Increase (decrease) in interest payable		68,835			—
Increase (decrease) in accrued expenses and other liabilities		(3,281	)		192,679
Net cash provided by (used in) operating activities		(40,666,504	)		(4,256,987	)

Cash flows from financing activities:
Payment of deferred financing costs		(41,365	)		(1,285,724	)
Gross borrowings on line of credit		75,780,171			38,000,000
Repayments of line of credit		(49,671,772	)		(13,000,000	)
Proceeds from issuance of common shares		24,076,450			16,260,250
Distributions paid		(8,745,429	)		(1,213,956	)
Net cash provided by (used in) financing activities		41,398,055			38,760,570

Net change in cash, cash equivalents and restricted cash		731,551			34,503,583
Cash, cash equivalents and restricted cash, beginning of period		3,280,019			25,000
Cash, cash equivalents and restricted cash, end of period	$	4,011,570		$	34,528,583

Supplemental Disclosure of Cash-Flow Information
Cash paid for interest	$	2,257,236		$	161,128
Issuance of common shares in connection with the Formation Transaction1		—			68,065,767

1 On March 3, 2025, in connection with the Formation Transaction (as defined in Note 1 – Organization), the Company acquired net assets of $68,065,767 in exchange for common shares of the Company. For further details, refer to Note 1 – Organization and Note 8 – Net assets.

The accompanying notes are an integral part of these consolidated unaudited financial statements.


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost		Fair Value (f)		% of Net Assets
Investments – non-controlled / non-affiliated
Debt Investments
Application Software
Clean Connect AI	First lien senior secured term loan	SOFR + 8.0%	5/8/2029	$	4,500,000	$	4,181,097	$	4,181,097
FlavorCloud, Inc.	Second lien senior secured term loan	SOFR + 10.5%	10/24/2028		1,500,000		1,467,567		1,467,567
Pensa Systems Inc.	First lien senior secured term loan	SOFR + 8.0%, 1.0% PIK	12/11/2028		2,815,749		2,687,612		2,687,612
SER Holdco, Inc. d/b/a SE Ranking	First lien senior secured term loan	SOFR + 8.0%	11/30/2028		8,400,000		8,271,580		8,114,389
Sub-total: Application Software					17,215,749		16,607,856		16,450,665		11.51	%
Automotive Services
Stress Free Auto Care, Inc.	First lien senior secured term loan	SOFR + 7.5%	7/1/2029		1,200,000		1,167,270		1,158,779
Stress Free Auto Care, Inc.	Delayed draw term loan	SOFR + 7.5%	2/23/2030		800,000		764,028		772,519
Sub-total: Automotive Services					2,000,000		1,931,298		1,931,298		1.35	%
Business Services
ADG Technology Inc dba Carry 1st	First lien senior secured term loan	SOFR + 8.0%	3/25/2030		3,000,000		2,928,838		2,928,838
CoreX, Inc. (l)	First lien senior secured term loan	SOFR + 7.5%, 1.5% PIK	12/19/2029		5,027,954		4,945,468		4,945,468
Energize Holdings Inc dba Exos	First lien senior secured term loan	SOFR + 8.0%	10/24/2029		16,000,000		15,757,220		15,438,304
Resident Blace Holdings Inc.	First lien senior secured term loan	SOFR + 8.0%	6/25/2029		3,500,000		3,255,715		3,255,715
SNA, Inc. dba Safety Net Access	First lien senior secured term loan	SOFR + 8.0%	11/20/2028		2,100,000		1,965,285		1,965,284
Sub-total: Business Services					29,627,954		28,852,526		28,533,609		19.97	%
Consumer Discretionary
Koala Eco Company (l)	First lien senior secured term loan	SOFR + 7.5%	5/4/2029		1,487,500		1,427,124		1,427,124
Nickey Kehoe Inc. (l)	First lien senior secured term loan	SOFR + 8.0%	6/24/2029		3,975,000		3,387,305		3,387,305
Princeton Carbonworks Inc.	First lien senior secured term loan	SOFR + 7.25%	4/21/2029		1,250,000		1,238,299		1,256,862
Sub-total: Consumer Discretionary					6,712,500		6,052,728		6,071,291		4.25	%
Consumer Finance
Atlas Exploration, Inc.	First lien senior secured term loan	SOFR + 6.0%	6/3/2028		2,000,000		1,992,008		1,987,949
Atlas Exploration, Inc.	Delayed draw term loan	SOFR + 6.0%	6/3/2028		6,000,000		5,959,788		5,963,847
Sub-total: Consumer Finance					8,000,000		7,951,796		7,951,796		5.56	%
Consumer Services
Milk + Honey Holdings LLC	First lien senior secured term loan	SOFR + 7.0%	7/11/2028		2,400,000		2,222,266		2,222,266
Sub-total: Consumer Services					2,400,000		2,222,266		2,222,266		1.56	%
Data Processing
Crusoe Energy Systems (k)	First lien senior secured term loan - Tranche II	15% fixed	11/13/2029		3,802,719		3,865,982		3,831,093
Crusoe Energy Systems (k)	First lien senior secured term loan - Tranche III	13% fixed	11/13/2029		3,132,768		3,215,710		3,180,309
Sub-total: Data Processing					6,935,487		7,081,692		7,011,402		4.91	%
Ecommerce – Apparel
Pant Saggin, LLC dba PSD Underwear	First lien senior secured term loan	SOFR + 6.5%	10/9/2027		11,250,000		11,142,422		11,068,166
Sub-total: Ecommerce – Apparel					11,250,000		11,142,422		11,068,166		7.74	%


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost		Fair Value (f)		% of Net Assets
Ecommerce – CPG
Beach House Group Global LLC	First lien senior secured term loan	SOFR + 8.25%, 1.75% PIK	7/28/2027	$	10,978,780	$	10,417,388	$	11,082,090
Coravin, Inc.	First lien senior secured term loan	SOFR + 7.5%	7/29/2029		7,000,000		6,807,542		6,807,542
Sub-total: Ecommerce – CPG					17,978,780		17,224,930		17,889,632		12.52	%
Education
Galileo Learning LLC	First lien senior secured term loan	SOFR + 8.5%	11/25/2027		6,000,000		5,910,344		5,911,998
Galileo Learning LLC	Delayed draw term loan	SOFR + 8.5%	11/25/2027		2,000,000		1,972,320		1,970,666
Sub-total: Education					8,000,000		7,882,664		7,882,664		5.52	%
Food & Beverage
Cleveland Kitchen (l)	First lien senior secured term loan	SOFR + 7.5%	5/4/2029		2,746,602		2,675,987		2,675,987
Epigenetics Labs d/b/a Organixx	First lien senior secured term loan	SOFR + 7.0%	1/31/2027		2,775,000		2,766,250		2,829,900
Slate Milk, Inc (l)	First lien senior secured term loan	SOFR + 7.5%	6/25/2029		9,984,167		8,554,946		8,554,946
Sub-total: Food & Beverage					15,505,769		13,997,183		14,060,833		9.84	%
Health & Wellness
Happy Head, Inc.	First lien senior secured term loan	SOFR + 7.0%	4/1/2028		2,020,000		1,982,057		2,007,250
Youth Opportunity Investments, LLC	First lien senior secured term loan	SOFR + 7.75%	9/18/2028		12,304,688		12,029,972		11,889,037
Sub-total: Health & Wellness					14,324,688		14,012,029		13,896,287		9.72	%
Technology - Aerospace
Fortem Technologies, Inc.	First lien senior secured term loan	SOFR + 7.0%	10/22/2027		5,150,000		5,100,571		5,186,977
Sub-total: Technology – Aerospace					5,150,000		5,100,571		5,186,977		3.63	%
Technology - Agriculture
CamoAg Inc.	First lien senior secured term loan	SOFR + 8.0%	12/26/2029		3,150,000		3,111,165		3,111,165
Sub-total: Technology – Agriculture					3,150,000		3,111,165		3,111,165		2.18	%
Technology - Business
Everywhere Communications, Inc.	First lien senior secured term loan	SOFR + 8.0%	12/23/2027		3,000,000		2,851,796		2,851,796
Tulip.IO, Inc. (i)(k)	First lien senior secured term loan	PRIME + 4.0%, 3.5% PIK	11/4/2028		1,033,472		1,033,472		1,033,472
Sub-total: Technology – Business					4,033,472		3,885,268		3,885,268		2.72	%
Technology – Communication
Kudo, Inc.	First lien senior secured term loan	SOFR + 7.0%	7/25/2028		4,000,000		3,853,644		3,853,644
Sub-total: Technology – Communication					4,000,000		3,853,644		3,853,644		2.70	%
Technology - Consumer
Aura Home, Inc.	First lien senior secured term loan	SOFR + 6.5%	9/22/2028		7,475,000		7,336,228		7,336,228
Hearth Display, Inc.	First lien senior secured term loan	SOFR + 8.0%	9/12/2027		4,000,000		3,833,900		3,446,451
Hearth Display, Inc.	Delayed draw term loan	SOFR + 8.0%	9/12/2027		2,000,000		1,610,664		1,723,226
Sub-total: Technology - Consumer					13,475,000		12,780,792		12,505,905		8.75	%


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost		Fair Value (f)		% of Net Assets
Technology – Cybersecurity
Cyber Sepio Systems LTD dba Sepio Systems Inc.	First lien senior secured term loan	SOFR + 7.0%, 1.0% PIK	10/10/2029	$	3,022,072	$	2,949,797	$	2,949,797
ThreatER, Inc.	First lien senior secured term loan	SOFR + 7.75%	10/24/2029		2,700,000		2,549,780		2,549,780
Sub-total: Technology – Cybersecurity					5,722,072		5,499,577		5,499,577		3.85	%
Technology – Health & Wellness
GuideHealth LLC	First lien senior secured term loan	SOFR + 8.0%, 0.5% PIK	6/2/2030		6,002,417		5,740,867		5,740,867
Predictive Fitness, Inc.	First lien senior secured term loan	SOFR + 9.5%	2/25/2028		3,000,000		2,794,064		2,596,602
Tapestry Management Services Inc.	First lien senior secured term loan	SOFR + 8.0%, 0.75% PIK	8/15/2029		6,342,127		6,243,690		6,243,690
Sub-total: Technology – Health & Wellness					15,344,544		14,778,621		14,581,159		10.20	%
Technology - Marketplace
FanFixApp, LLC	First lien senior secured term loan	SOFR + 8.0%	3/6/2028		12,350,000		11,605,152		11,432,753
Sub-total: Technology – Marketplace					12,350,000		11,605,152		11,432,753		8.00	%
Technology - Property
Domuso Inc.	Second lien senior secured term loan	SOFR + 7.0%	6/15/2029		3,120,000		2,986,491		2,986,491
Stake Network Inc	First lien senior secured term loan	SOFR + 8.25%	2/6/2029		1,250,000		1,224,569		1,224,569
Sub-total: Technology – Property					4,370,000		4,211,060		4,211,060		2.95	%
Transportation
Spotter Labs Inc.	First lien senior secured term loan	SOFR + 6.75%	10/2/2029		10,500,000		10,366,412		10,366,412
Sub-total: Transportation					10,500,000		10,366,412		10,366,412		7.25	%
Total non-controlled / non-affiliated debt investments				$	218,046,015	$	210,151,652	$	209,603,829		146.67	%

Investments – non-controlled / affiliated
Technology - Business
Roq.Ad, Inc. (i)(k)	First lien senior secured term loan	SOFR + 8.25%	2/27/2030		4,504,672		4,451,401		4,336,567
Roq.Ad, Inc. (i)(k)	Delayed draw term loan	SOFR + 8.25%	2/27/2030		1,500,000		1,489,997		1,444,024
Roq.Ad, Inc. (i)(k)	Uncommitted Accordion	SOFR + 8.25%	2/27/2030		6,000,000		5,890,487		5,776,095
Sub-total: Technology – Business					12,004,672		11,831,885		11,556,686		8.09	%
Total non-controlled / affiliated debt investments

Total: Debt Investments				$	230,050,687	$	221,983,537	$	221,160,515		154.76	%


Investments (a)	Type of Investment (b)	Investment Date (c)	Shares		Series	Expiration Date	Cost		Fair Value (f)		% of Net Assets
Investments – non-controlled / non-affiliated
Equity Investments
Application Software
Clean Connect AI	Warrants	5/8/2026		64,824	Common Stock	5/8/2036	$	245,035	$	245,035
FlavorCloud, Inc.	Warrants	10/24/2025		60,050	Series B-1 Preferred Stock	10/24/2035		19,500		19,500
Pensa Systems Inc.	Warrants	12/11/2025		182,970	Common Stock	12/11/2035		115,080		115,080
SER Holdco, Inc. d/b/a SE Ranking	Warrants	6/3/2025		46	Common Stock	6/3/2035		83,582		113,001
Sub-total: Application Software								463,197		492,616		0.34	%
Automotive Services
Stress Free Auto Care, Inc.	Warrants	7/1/2025	(m)		Common Stock	7/1/2035		63,200		63,200
Sub-total: Automotive Services								63,200		63,200		0.04	%
Business Services
ADG Technology Inc dba Carry 1st	Warrants	3/25/2026		86,181	Series B-1 Preferred Stock	3/25/2036		46,189		46,189
CoreX, Inc.	Warrants	12/19/2025		62,147	Series A-2 Units	12/19/2035		45,100		45,100
Energize Holdings Inc dba Exos	Warrants	10/24/2025		489,217	Series B Preferred Stock	10/24/2035		52,800		94,000
Resident Blace Holdings Inc.	Warrants	6/25/2026		137,530	Series A Preferred Stock	6/25/2036		210,421		210,421
Sub-total: Business Services								354,510		395,710		0.28	%
Consumer Finance
Atlas Exploration, Inc.	Warrants	6/3/2025		34,502	Series B-2 Preferred Stock	6/3/2035		23,143		105,808
Sub-total: Consumer Finance								23,143		105,808		0.07	%
Consumer Discretionary
Koala Eco Company	Warrants	5/4/2026		12,522	Series A Preferred Stock	5/4/2036		33,684		33,684
Nickey Kehoe Inc.	Warrants	6/24/2026		10,537	Common Stock	6/24/2036		550,980		550,980
Sub-total: Consumer Discretionary								584,664		584,664		0.41	%
Consumer Services
Milk + Honey Holdings LLC	Warrants	7/11/2025		5,817	Series A Preferred Units	7/11/2035		214,589		214,589
Sub-total: Consumer Services								214,589		214,589		0.15	%
Data Processing
AI Software, LLC d/b/a Capacity	Warrants	6/13/2025		520,033	Series E Common Units	6/13/2035		1,860,103		2,550,762
Sub-total: Data Processing								1,860,103		2,550,762		1.78	%
Ecommerce – CPG
Beach House Group Global LLC	Warrants	7/28/2025		1,682	Series D Preferred Units	7/28/2035		662,086		428,000
Coravin, Inc.	Warrants	7/29/2025		408,451	Series D-1 Preferred Stock	7/29/2035		74,900		74,900
Sub-total: Ecommerce – CPG								736,986		502,900		0.35	%


Investments (a)	Type of Investment (b)	Investment Date (c)	Shares		Series	Expiration Date	Cost		Fair Value (f)		% of Net Assets
Education
Galileo Learning LLC	Warrants	3/3/2025		60	Common units	11/25/2034		52,008		3,999
Sub-total: Education								52,008		3,999		0.00	%
Food & Beverage
Cleveland Kitchen	Warrants	5/4/2026		112,199	Common stock	5/1/2036		47,124		47,124
Slate Milk, Inc	Warrants	6/25/2026		14,548	Series B Preferred Stock	6/25/2036		1,335,943		1,335,943
Sub-total: Food & Beverage								1,383,067		1,383,067		0.97	%
Health & Wellness
Happy Head, Inc.	Warrants	3/3/2025		71,522	Common stock	9/30/2034		196,874		335,438
Youth Opportunity Investments, LLC	Warrants	3/3/2025	(g)		Common units	(g)		1,543,000		2,121,625
Sub-total: Health & Wellness								1,739,874		2,457,063		1.72	%
Technology - Aerospace
Fortem Technologies, Inc.	Warrants	3/3/2025		409,527	Common stock	10/22/2034	$	24,667	$	210,907
Sub-total: Technology – Aerospace								24,667		210,907		0.15	%
Technology - Agriculture
CamoAg Inc.	Warrants	12/26/2025		33,396	Series A-2 Preferred Stock	12/26/2035		13,024		13,024
Sub-total: Technology – Agriculture								13,024		13,024		0.01	%
Technology - Business
Everywhere Communications, Inc.	Warrants	3/3/2025		31,169	Series A-1 Preferred shares	12/23/2034		240,300		264,781
Sub-total: Technology – Business								240,300		264,781		0.19	%
Technology – Communication
Kudo, Inc.	Warrants	7/25/2025	(j)		Series A Preferred stock	7/25/2035		92,819		92,819
Sub-total: Technology – Communication								92,819		92,819		0.06	%
Technology - Consumer
Hearth Display, Inc.	Warrants	3/3/2025	(h)		Series Seed-1 Preferred Stock	9/12/2034		361,208		54,093
Hearth Display, Inc.	Warrants	6/12/2025	(h)		Series Seed-1 Preferred Stock	9/12/2034		690,005		57,907
Sub-total: Technology - Consumer								1,051,213		112,000		0.08	%
Technology – Cybersecurity
1touch.IO Inc.	Warrants	9/3/2025		193,462	Ordinary Shares	9/3/2035		132,000		330,349
Cyber Sepio Systems LTD dba Sepio Systems Inc.	Warrants	10/10/2025		173,877	Ordinary Shares	10/10/2035		28,200		28,200
ThreatER, Inc.	Warrants	10/24/2025		2,659,625	Series A-3 Preferred Stock	10/24/2035		127,170		127,170
Sub-total: Technology – Cybersecurity								287,370		485,719		0.34	%


Investments (a)	Type of Investment (b)	Investment Date (c)	Shares		Series	Expiration Date		Cost		Fair Value (f)		% of Net Assets
Technology – Health & Wellness
GuideHealth LLC	Warrants	6/2/2026		178,218	Series A-2 Preferred Units	6/2/2036			144,357		144,357
Predictive Fitness, Inc.	Warrants	3/3/2025		243,515	Series Seed-5 Preferred Stock	2/25/2035			313,800		169,243
Sub-total: Technology – Health & Wellness									458,157		313,600		0.22	%
Technology - Marketplace
FanFixApp, LLC	Warrants	3/7/2025		52,802	Ordinary Shares	3/6/2035			1,164,801		706,000
WeMedia Shopping Network Holdings dba SuperOrdinary Equity (i)(k)	Equity	2/17/2026		358,516	Series C Preferred Stock	N/A			666,668		666,668
Sub-total: Technology – Marketplace									1,831,469		1,372,668		0.96	%
Technology - Property
Domuso Inc.	Warrants	5/30/2025		239,603	Series B-2 Preferred Stock	5/30/2035			158,400		158,400
Stake Network Inc	Warrants	2/6/2026		3,881	Series A Preferred Stock	2/6/2036			16,844		16,844
Sub-total: Technology – Property									175,244		175,244		0.12	%
Total non-controlled / non-affiliated equity investments									11,649,604		11,795,140		8.25	%

Investments – non-controlled / affiliated
Technology - Business
Roq.Ad, Inc. (i)(k)	Warrants	3/3/2025		371,446	Series A-1 Preferred stock	2/27/2035			163,637		132,001
Roq.Ad, Inc. (i)(k)	Equity	6/18/2026		5,989,518	Series A-10 Preferred stock	N/A			2,400,000		2,400,000
Sub-total: Technology – Business									2,563,637		2,532,001		1.77	%
Total non-controlled / affiliated equity investments									2,563,637		2,532,001		1.77	%

Total: Equity Investments									14,213,241		14,327,141
Total Investments								$	236,196,776	$	235,487,656		164.78	%

					Interest Rate	Units		Cost		Fair Value		% of Net Assets
Cash Equivalents
First American Treasury Obligations Fund					3.57%		513,848	$	513,848	$	513,848		0.36	%
Total Cash Equivalents									513,848		513,848		0.36	%
Total Investments and Cash Equivalents								$	236,710,624	$	236,001,504		165.14	%

All investments are domiciled in the United States unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale and are deemed to be “restricted securities” under the Securities Act.

All debt investments are income producing. First lien senior secured term loans are collateralized by some or all assets of the borrower. Second lien secured term loans are collateralized on unencumbered assets through second priority. Warrant investments are associated with funded debt and are non-income producing.

Investment date represents the date of initial investment date, either purchases or funding, not adjusted for modifications or amendments, if any. For assets purchased from the Legacy Fund as part of the Formation Transaction (both terms as defined in Note 1 - Organization), the investment date is March 3, 2025, the date of the Formation Transaction.

The 1-month Secured Overnight Financing Rate (the “SOFR”) 30-day average reference rate was 3.63% as of June 30, 2026. The 3-month SOFR 30-day average reference rate was 3.63% as of June 30, 2026. The Prime Rate was 6.75% as of June 30, 2026. All debt investments that use SOFR are using 1-Month SOFR.

Principal is net of repayments.

Unless otherwise indicated, these investments were valued using unobservable inputs and are considered Level 3 investments.

The Company has been issued warrants to purchase 1.011% of fully diluted shares. The expiration date is defined in the warrant agreement as any time prior to certain sale transactions, which generally includes any liquidation events.

The Company has been issued warrants to purchase 5.0% of fully diluted shares.

As of June 30, 2026, the Company has three foreign domiciled portfolio companies: Tulip.IO, Inc., based in Canada, Roq.Ad, Inc., based in Germany, and WeMedia Shopping Network Holdings dba SuperOrdinary Equity, based in the British Virgin Islands. In total, foreign domiciled portfolio investments represent 11.0% of total net asset value based on fair value.

The Company has been issued warrants to purchase 0.12% of fully diluted shares.

Investment is not a qualifying investment as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition. The Company’s percentage of non-qualifying assets based on total asset value was 10.4% as of June 30, 2026.

This amount includes the impact of a revolving credit facility, combined with the related term loan for presentation purposes. The unfunded commitment under this facility is separately disclosed in the Schedule of Unfunded Commitments (see Note 6 - Commitments and Contingencies)

The Company has been issued warrants to purchase 0.16% of fully diluted shares.

The accompanying notes are an integral part of these consolidated unaudited financial statements.


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost			Fair Value (f)			% of Net Assets
Investments – non-controlled / non-affiliated
Debt Investments
Application Software
FlavorCloud, Inc.	Second lien senior secured term loan	SOFR + 9.5%	10/24/2028	$	1,500,000	$	1,460,567		$	1,460,567
Pensa Systems Inc.	First lien senior secured term loan	SOFR + 8.0%, 1.0% PIK	12/11/2028		2,801,633		2,647,316			2,647,316
SER Holdco, Inc. d/b/a SE Ranking	Second lien senior secured term loan	SOFR + 8.0%	11/30/2028		6,000,000		5,901,311			5,901,311
Sub-total: Application Software					10,301,633		10,009,194			10,009,194			8.40	%
Automotive Services
Stress Free Auto Care, Inc.	First lien senior secured term loan	SOFR + 7.5%	7/1/2029		1,200,000		1,161,820			1,161,820
Sub-total: Automotive Services					1,200,000		1,161,820			1,161,820			0.98	%
Business Services
CoreX, Inc.	First lien senior secured term loan	SOFR + 7.5%, 1.5% PIK	12/19/2029		4,987,500		4,893,250			4,893,250
CoreX, Inc. (m)	First lien senior secured term loan - Revolver	SOFR + 7.0%	12/19/2029		-		(124	)		(124	)
Energize Holdings Inc dba Exos	First lien senior secured term loan	SOFR + 8.0%	10/24/2029		16,000,000		15,720,620			15,720,620
SNA, Inc. dba Safety Net Access	First lien senior secured term loan	SOFR + 8.0%	11/20/2028		2,100,000		1,937,088			1,937,088
Sub-total: Business Services					23,087,500		22,550,834			22,550,834			18.93	%
Consumer Finance
Atlas Exploration, Inc.	First lien senior secured term loan	SOFR + 6.0%	6/3/2028		2,000,000		1,986,720			1,986,720
Atlas Exploration, Inc.	Delayed draw term loan	SOFR + 6.0%	6/3/2028		2,000,000		1,986,102			1,986,102
Sub-total: Consumer Finance					4,000,000		3,972,822			3,972,822			3.33	%
Consumer Services
Milk + Honey Holdings LLC	First lien senior secured term loan	SOFR + 7.0%	7/11/2028		2,400,000		2,178,501			2,178,501
Sub-total: Consumer Services					2,400,000		2,178,501			2,178,501			1.83	%
Data Processing
AI Software, LLC d/b/a Capacity	First lien senior secured term loan	PRIME + 6.5%, 1.0% PIK	6/13/2029		8,447,247		6,903,667			7,938,000
AI Software, LLC d/b/a Capacity	Delayed draw term loan	PRIME + 6.5%, 1.0% PIK	6/13/2029		1,205,443		971,318			1,134,000
Crusoe Energy Systems (l)	First lien senior secured term loan - Tranche II	15% fixed	11/13/2029		4,651,697		4,730,349			4,730,349
Crusoe Energy Systems (l)	First lien senior secured term loan - Tranche III	13% fixed	11/13/2029		3,832,175		3,927,648			3,927,648
Sub-total: Data Processing					18,136,562		16,532,982			17,729,997			14.88	%
Ecommerce – Apparel
Pant Saggin, LLC dba PSD Underwear	First lien senior secured term loan	SOFR + 7.0%	10/9/2027		11,250,000		11,100,234			11,100,234
Sub-total: Ecommerce – Apparel					11,250,000		11,100,234			11,100,234			9.32	%
Ecommerce – CPG
Beach House Group Global LLC	First lien senior secured term loan	SOFR + 8.25%, 1.75% PIK	7/28/2027		10,882,677		10,104,765			10,104,765
Coravin, Inc.	First lien senior secured term loan	SOFR + 7.5%	7/29/2029		7,000,000		6,776,305			6,776,305
Sub-total: Ecommerce – CPG					17,882,677		16,881,070			16,881,070			14.17	%
Education
Galileo Learning LLC	First lien senior secured term loan	SOFR + 8.5%	11/25/2027		6,000,000		5,878,387			5,878,387
Galileo Learning LLC	Delayed draw term loan	SOFR + 8.5%	11/25/2027		2,000,000		1,962,454			1,962,454
Sub-total: Education					8,000,000		7,840,841			7,840,841			6.58	%


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost		Fair Value (f)		% of Net Assets
Food & Beverage
Epigenetics Labs d/b/a Organixx	First lien senior secured term loan	SOFR + 7.0%	1/31/2027	$	3,000,000	$	2,983,750	$	3,047,400
Sub-total: Food & Beverage					3,000,000		2,983,750		3,047,400		2.56	%
Health & Wellness
Happy Head, Inc.	First lien senior secured term loan	SOFR + 8.5%	9/30/2026		3,880,000		3,766,172		3,766,172
Youth Opportunity Investments, LLC	First lien senior secured term loan	SOFR + 7.75%	9/18/2026		8,203,125		7,519,384		7,884,291
Sub-total: Health & Wellness					12,083,125		11,285,556		11,650,463		9.78	%
Technology - Aerospace
Fortem Technologies, Inc.	First lien senior secured term loan	SOFR + 9.0%	10/22/2027		3,375,000		3,329,923		3,329,923
Sub-total: Technology – Aerospace					3,375,000		3,329,923		3,329,923		2.80	%
Technology - Agriculture
CamoAg Inc.	First lien senior secured term loan	SOFR + 8.0%	12/26/2029		3,150,000		3,105,599		3,105,599
Sub-total: Technology – Agriculture					3,150,000		3,105,599		3,105,599		2.61	%
Technology - Business
Everywhere Communications, Inc.	First lien senior secured term loan	SOFR + 8.0%	12/23/2027		3,000,000		2,801,746		2,801,746
Roq.Ad, Inc. (j)	First lien senior secured term loan	SOFR + 8.25%	2/27/2029		4,504,672		4,436,078		4,436,079
Roq.Ad, Inc. (j)	Delayed draw term loan	SOFR + 8.25%	2/27/2029		1,000,000		982,895		982,895
Roq.Ad, Inc. (j)	Uncommitted Accordion	SOFR + 8.25%	2/27/2029		6,000,000		5,914,490		5,914,490
Tulip.IO, Inc. (j)	First lien senior secured term loan	PRIME + 4.0%, 2.0% PIK	11/4/2028		1,018,769		1,018,769		1,018,769
Sub-total: Technology – Business					15,523,441		15,153,978		15,153,978		12.72	%
Technology – Communication
Kudo, Inc.	First lien senior secured term loan	SOFR + 7.0%	7/25/2028		2,800,000		2,680,423		2,680,423
Sub-total: Technology – Communication					2,800,000		2,680,423		2,680,423		2.25	%
Technology - Consumer
Hearth Display, Inc.	First lien senior secured term loan	SOFR + 8.0%	9/12/2027		4,000,000		3,764,691		3,764,691
Hearth Display, Inc.	Delayed draw term loan	SOFR + 8.0%	9/12/2027		2,000,000		1,448,441		1,448,441
Sub-total: Technology - Consumer					6,000,000		5,213,132		5,213,132		4.38	%
Technology – Cybersecurity
1touch.IO Inc.	First lien senior secured term loan	SOFR + 7.5%	9/3/2029		4,000,000		3,814,413		3,814,413
Cyber Sepio Systems LTD dba Sepio Systems Inc.	First lien senior secured term loan	SOFR + 7.0%, 1.0% PIK	10/10/2029		3,006,922		2,923,622		2,923,622
ThreatER, Inc.	First lien senior secured term loan	SOFR + 7.75%	10/24/2029		2,700,000		2,527,134		2,527,134
Sub-total: Technology – Cybersecurity					9,706,922		9,265,169		9,265,169		7.78	%
Technology – Health & Wellness
Predictive Fitness, Inc.	First lien senior secured term loan	SOFR + 8.5%	2/25/2028		3,000,000		2,731,765		2,655,000
Tapestry Management Services Inc.	First lien senior secured term loan	SOFR + 8.0%, 0.75% PIK	8/15/2029		6,318,265		6,204,077		6,204,077
Sub-total: Technology – Health & Wellness					9,318,265		8,935,842		8,859,077		7.44	%
Technology - Marketplace
FanFixApp, LLC	First lien senior secured term loan	SOFR + 8.0%	3/6/2028		13,000,000		12,033,910		12,033,910
Sub-total: Technology – Marketplace					13,000,000		12,033,910		12,033,910		10.10	%


Investments (a)	Type of Investment (b)	Interest Rate (d)	Maturity Date	Principal Amount (e)		Cost		Fair Value (f)		% of Net Assets
Technology - Property
Domuso Inc.	Second lien senior secured term loan	SOFR + 7.0%	6/15/2029	$	2,400,000	$	2,243,926	$	2,243,926
Sub-total: Technology – Property					2,400,000		2,243,926		2,243,926		1.88	%
Transportation
Spotter Labs Inc.	First lien senior secured term loan	SOFR + 7.0%	10/2/2029		7,000,000		6,901,348		6,901,348
Sub-total: Transportation					7,000,000		6,901,348		6,901,348		5.79	%

Total: Debt Investments				$	183,615,125	$	175,360,854	$	176,909,661		148.50	%


Investments (a)	Type of Investment (b)	Investment Date (c)	Shares		Series	Expiration Date	Cost		Fair Value (f)		% of Net Assets
Investments – non-controlled / non-affiliated
Warrant Investments
Application Software
FlavorCloud, Inc.	Warrants	10/24/2025		60,050	Series B-1 Preferred Stock	10/24/2035	$	19,500	$	19,500
Pensa Systems Inc.	Warrants	12/11/2025		182,970	Common Stock	12/11/2035		115,080		115,080
SER Holdco, Inc. d/b/a SE Ranking	Warrants	6/3/2025		32	Common Stock	6/3/2035		58,144		40,713
Sub-total: Application Software								192,724		175,293		0.15	%
Automotive Services
Stress Free Auto Care, Inc.	Warrants	7/1/2025		15,978	Common Stock	7/1/2035		31,600		31,600
Sub-total: Automotive Services								31,600		31,600		0.03	%
Business Services
CoreX, Inc.	Warrants	12/19/2025		62,147	Series A-2 Units	12/19/2035		45,100		45,100
Energize Holdings Inc dba Exos	Warrants	10/24/2025		489,217	Series B Preferred Stock	10/24/2035		52,800		52,800
Sub-total: Business Services								97,900		97,900		0.08	%
Consumer Finance
Atlas Exploration, Inc.	Warrants	6/3/2025		9,584	Series B-2 Preferred Stock	6/3/2035		6,429		11,836
Atlas Exploration, Inc.	Warrants	7/22/2025		9,584	Series B-2 Preferred Stock	6/3/2035		6,429		11,836
Sub-total: Consumer Finance								12,858		23,672		0.02	%
Consumer Services
Milk + Honey Holdings LLC	Warrants	7/11/2025		5,817	Series A Preferred Units	7/11/2035		214,589		214,589
Sub-total: Consumer Services								214,589		214,589		0.18	%
Data Processing
AI Software, LLC d/b/a Capacity	Warrants	6/13/2025	(i)		Series D Common Units	6/13/2035		1,620,218		1,592,754
AI Software, LLC d/b/a Capacity	Warrants	7/22/2025	(i)		Series D Common Units	7/22/2035		239,885		235,864
Sub-total: Data Processing								1,860,103		1,828,618		1.54	%
Ecommerce – CPG
Beach House Group Global LLC	Warrants	7/28/2025		1,682	Series D Preferred Units	7/28/2035		662,086		662,086
Coravin, Inc.	Warrants	7/29/2025		408,451	Series D-1 Preferred Stock	7/29/2035		74,900		74,900
Sub-total: Ecommerce – CPG								736,986		736,986		0.62	%
Education
Galileo Learning LLC	Warrants	3/3/2025		60	Common units	11/25/2034		52,008		14,079
Sub-total: Education								52,008		14,079		0.01	%
Health & Wellness
Happy Head, Inc.	Warrants	3/3/2025		71,522	Common stock	9/30/2034		196,874		290,737
Youth Opportunity Investments, LLC	Warrants	3/3/2025	(g)		Common units	(g)		1,543,000		2,121,625
Sub-total: Health & Wellness								1,739,874		2,412,362		2.03	%


Investments (a)	Type of Investment (b)	Investment Date (c)	Shares		Series	Expiration Date	Cost		Fair Value (f)		% of Net Assets
Technology - Aerospace
Fortem Technologies, Inc.	Warrants	3/3/2025		409,527	Common stock	10/22/2034	$	24,667	$	47,096
Sub-total: Technology – Aerospace								24,667		47,096		0.04	%
Technology - Agriculture
CamoAg Inc.	Warrants	12/26/2025		33,396	Series A-2 Preferred Stock	12/26/2035		13,024		13,024
Sub-total: Technology – Agriculture								13,024		13,024		0.01	%
Technology - Business
Everywhere Communications, Inc.	Warrants	3/3/2025		31,169	Series A-1 Preferred shares	12/23/2034		240,300		264,781
Roq.Ad, Inc. (j)(l)	Warrants	3/3/2025		307,083	Series A-1 Preferred stock	2/27/2035		135,283		135,283
Sub-total: Technology – Business								375,583		400,064		0.34	%
Technology – Communication
Kudo, Inc.	Warrants	7/25/2025	(k)		Series A Preferred stock	7/25/2035		69,615		69,615
Sub-total: Technology – Communication								69,615		69,615		0.06	%
Technology - Consumer
Hearth Display, Inc.	Warrants	3/3/2025	(h)		Series Seed-1 Preferred Stock	9/12/2034		361,208		243,328
Hearth Display, Inc.	Warrants	6/12/2025	(h)		Series Seed-1 Preferred Stock	9/12/2034		690,005		563,821
Sub-total: Technology - Consumer								1,051,213		807,149		0.68	%
Technology – Cybersecurity
1touch.IO Inc.	Warrants	9/3/2025		193,462	Ordinary Shares	9/3/2035		132,000		132,000
Cyber Sepio Systems LTD dba Sepio Systems Inc.	Warrants	10/10/2025		173,877	Ordinary Shares	10/10/2035		28,200		28,200
ThreatER, Inc.	Warrants	10/24/2025		2,659,625	Series A-3 Preferred Stock	10/24/2035		127,170		127,170
Sub-total: Technology – Cybersecurity								287,370		287,370		0.24	%
Technology – Health & Wellness
Predictive Fitness, Inc.	Warrants	3/3/2025		243,515	Series Seed-5 Preferred Stock	2/25/2035		313,800		221,599
Sub-total: Technology – Health & Wellness								313,800		221,599		0.19	%
Technology - Marketplace
FanFixApp, LLC	Warrants	3/7/2025		52,802	Ordinary Shares	3/6/2035		1,164,801		1,164,801
Sub-total: Technology – Marketplace								1,164,801		1,164,801		0.98	%
Technology - Property
Domuso Inc.	Warrants	5/30/2025		239,603	Series B-2 Preferred Stock	5/30/2035		158,400		158,400
Sub-total: Technology – Property								158,400		158,400		0.13	%
Total: Warrant Investments								8,397,115		8,704,217		7.31	%
Total Investments							$	183,757,969	$	185,613,878		155.81	%


	Interest Rate	Units		Cost		Fair Value		% of Net Assets
Cash Equivalents
First American Treasury Obligations Fund	3.66%		370,052	$	370,052	$	370,052		0.31	%
Total Cash Equivalents					370,052		370,052		0.31	%
Total Investments and Cash Equivalents				$	184,128,021	$	185,983,930		156.12	%

The 1-month Secured Overnight Financing Rate (the “SOFR”) 30-day average reference rate was 3.79% as of December 31, 2025. The 3-month SOFR 90-day average reference rate was 4.01% as of December 31, 2025. The Prime Rate was 6.75% as of December 31, 2025.

Principal is net of repayments.

Unless otherwise indicated, these investments were valued using unobservable inputs and are considered Level 3 investments.

The Company has been issued warrants to purchase 5.0% of fully diluted shares.

The Company has been issued warrants to purchase 0.41% of fully diluted shares as of December 31, 2025.

As of December 31, 2025, the Company has two foreign domiciled portfolio companies, Tulip.IO, Inc., based in Canada, and Roq.Ad, Inc., based in Germany. In total, foreign domiciled portfolio investments represent 10.5% of total net asset value based on fair value.

The Company has been issued warrants to purchase 0.12% of fully diluted shares.

The negative cost and fair value results from unamortized fees, which are capitalized to the investment cost.

LAGO Evergreen Credit

Notes to Consolidated Financial Statements

(unaudited)

Note 1. Organization

LAGO Evergreen Credit (the “Company”) is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company (a “BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for tax purposes, the Company qualifies and has elected to be taxed as a regulated investment company (“RIC”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). The Company was formed as a Delaware statutory trust on October 30, 2024, and filed its initial registration statement on Form 10 on March 3, 2025 as subsequently amended on April 17, 2025 and May 2, 2025.

The Company is managed by LAGO Asset Management, LLC (the “Investment Adviser”), a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended. The Company entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company’s Board of Trustees (the “Board”), manages the day-to-day operations of, and provides investment advisory services to the Company. The Investment Adviser oversees the Company and is responsible for making investment decisions with respect to the Company’s portfolio.

The Company’s investment objective is to maximize the total return generated from its portfolio, which the Company expects to include current income from its debt investments as well as capital appreciation from equity and equity-related investments such as warrants. The Company’s focus will be primarily on floating rate senior secured term loan investments and, to a lesser extent, other types of junior loans and equity-related securities, such as convertible notes, warrants, and preferred or common stock. The Company’s secured loans are expected to be collateralized with security interests in the assets of the borrowers, which the Company expects will typically take the form of first-priority liens on some or all of the assets of the borrower. To the extent that another lender to the portfolio company retains the first-priority lien on some or all of the assets of the borrower, such as when another lender provides a revolving credit facility, the Company may structure its loan as a second-priority lien on any such encumbered assets and seek the opportunity to structure a first-lien on any unencumbered assets, such as intellectual property. The Company’s position as a secured lender and, in particular in the case where the Company is the sole, first lien lender, enables it to exert influence over the borrower with respect to access to management, monitoring performance, and increasing the likelihood of positive outcomes in the event that the borrower underperforms or becomes distressed. In connection with the Company's lending activities, the Company expects to frequently receive “equity kickers” in the form of warrants and rights-to-invest equity in its borrowers, which have the potential to enhance returns above that typically generated from portfolios consisting solely of credit positions. The Company expects a majority of its warrants to be structured with a “cashless exercise” feature which does not require additional capital investment to benefit from any upside appreciation. The Company has adopted a policy to invest at least 80% of its assets in “credit,” which the Company defines as debt investments made in exchange for regular interest payments, under Section 59 and Rule 35d-1 under the 1940 Act.

The Company is conducting a continuous and perpetual private offering (the “Private Offering”) of its shares of common beneficial interests, par value of $0.01 per share (the “Shares”), in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Shares are being offered solely to investors that are “accredited investors” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. At each closing, an investor purchases Shares pursuant to a subscription agreement entered into with the Company. See Note 8 - Net Assets for additional information on the Company’s Share activity.

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, at an offering price of $25.00 per Share for an aggregate purchase price of $25,000. Other than the sale of Shares to the Investment Adviser, the Company had not commenced operations as of December 31, 2024.

On March 3, 2025, immediately prior to the Company’s election to be regulated as a BDC under the 1940 Act, the Company completed a series of transactions pursuant to which LAGO Evergreen Credit, LLC (the “Legacy Fund”) merged with and into the Company with the Company continuing as the surviving entity (the “Formation Transaction”). As a result of the Formation Transaction, the equity interests of the Legacy Fund held by LAGO Evergreen Credit-QP, LP and LAGO Evergreen Credit-AI, LP (the “Legacy Fund Members”) were exchanged for Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members as part of the dissolution and liquidation of the Legacy Fund Members.

The Company commenced operations and investment activity on March 3, 2025 (“Commencement of Operations”) in connection with the Formation Transaction and its election to be regulated as a BDC under the 1940 Act.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its consolidated financial statements.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Company is an investment company and accordingly applies specific accounting and financial reporting requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Topic 946, Financial Services-Investment Companies, (“ASC Topic 946”) and pursuant to Regulation S-X.

Principles of Consolidation

Under ASC Topic 946 the Company is precluded from consolidating any entity other than an investment company or an operating company which provides substantially all of its services to benefit the Company. In accordance therewith, the Company has consolidated the results of its wholly owned subsidiary which provides services to the Company in its consolidated financial statements. However, the Company has not consolidated the results of its subsidiaries in which the Company holds its portfolio investments. All intercompany account balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and the accompanying notes thereto. Management believes that the estimates utilized in the preparation of these consolidated financial statements are reasonable and prudent. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates, and differences could be material.

Cash, cash equivalents and restricted cash

Cash and cash equivalents consist of demand deposits and highly liquid investments, such as money market funds, with original maturities of three months or less. Cash and cash equivalents are carried at cost, which approximates fair value. The Company deposits its cash and cash equivalents with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation up to an insurance limit. The Company sweeps excess cash into a money market treasury fund on a daily basis to reduce the risk that deposits at individual financial institutions exceed the Federal Deposit Insurance Corporation insurance limit. Cash equivalents in money market mutual funds are fair valued under the market approach through the use of quoted market prices in an active market, which is the net asset value ("NAV") of the funds, and are classified within Level 1 of the valuation hierarchy as further described below.

Restricted cash represents the amount of principal and interest collections that are contractually designated for repayment under the KeyBank Credit Agreement (as defined in Note 7 - Borrowings). This applies to all loans designated as part of the collateral pool under the KeyBank Credit Agreement, which includes all investments as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, the Company held restricted cash of $2,746,491 and $2,708,324, respectively.

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheet to the total amount shown at the end of the applicable period in the consolidated statement of cash flows:


	June 30, 2026		December 31, 2025
Cash and cash equivalents	$	1,265,079	$	571,695
Restricted cash		2,746,491		2,708,324
Total cash, cash equivalents and restricted cash	$	4,011,570	$	3,280,019

Income Taxes

The Company qualifies and has elected to be treated as a RIC under Subchapter M of the Code commencing with its taxable period ending on December 31, 2025, and intends to comply with the requirements to qualify and maintain its status as a RIC annually. So long as the Company maintains its status as a RIC, it generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its shareholders. Any tax liability related to income earned and distributed by the Company would represent obligations of the Company’s shareholders and would not be reflected in the consolidated financial statements of the Company. The Company expects to meet the requirements to qualify as a RIC for the year ending December 31, 2026.

To qualify and be subject to tax as a RIC for U.S. federal income tax purposes, the Company will need to ensure that (among other things) it satisfies certain sources of income and asset diversification requirements and distributes to its shareholders annually an amount equal to at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess, if any, of its realized net short-term capital gains over its realized net long-term capital losses. If we do not distribute (or are not deemed to have distributed) at least 98% of our annual ordinary income and 98.2% of our capital gain net income for the 1-year period ending on October 31 of such calendar year, we will generally be required to pay excise tax equal to 4% of the amount by which 98% of our annual ordinary income and 98.2% of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated undistributed taxable income.

Under GAAP, the Company is subject to the provisions of ASC 740, “Income Taxes.” The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current period. The Company follows the authoritative guidance on accounting for uncertainty in income taxes and concluded it has no material uncertain tax positions to be recognized at this time. If applicable, the Company will recognize interest and penalties related to unrecognized tax benefits as income tax expense in the Company’s consolidated statement of operations. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities, on-going analysis of and changes to tax laws, regulations and interpretations thereof.

The Organization for Economic Co-operation and Development (“OECD”) introduced a 15% global minimum tax under the Pillar Two Global Anti-Base Erosion (“GloBe”) model rules. Several OECD member countries have enacted tax legislation based on certain elements of these rules that became effective on January 1, 2024. Other jurisdictions have announced that they intend to implement these rules, but the rules remain subject to significant negotiation, potential change, and phase-in periods. The Company has concluded that it falls outside the scope of the Pillar Two rules but will continue to monitor potential future applicability and changes to these rules.

Organization and Offering Costs

Organization costs include, among other things, the cost of incorporating the Company and the cost of legal services and other fees pertaining to the Company’s organization, including the Company’s registration statement on Form 10. Organization costs are expensed as incurred.

Offering costs consist of costs incurred in connection with the offering of Shares of the Company, including legal fees, registration fees, and other costs pertaining to the preparation of the Company’s private placement memorandum and any related offering materials (and any amendments and related documents thereto) relating to the Private Offering. Offering costs are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months.

See Note 3 - Agreements and Related Party Transactions for further information on the Company’s Expense Reimbursement Agreement with the Investment Adviser.

Valuation of Investments

Section 2(a)(41) of the 1940 Act requires the Company to value its assets as follows: (i) the third party price for securities for which a quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith by the Board.

The Company values its investments, upon which its NAV is based, in accordance with FASB ASC 820, Fair Value Measurements (“ASC 820”), which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable measurement date. ASC 820 also provides a framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and prescribes disclosure requirements for fair value measurements.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Investment Adviser as the valuation designee (the “Valuation Designee”) responsible for valuing all of the Company’s investments, including making fair valuation determinations as needed. The Investment Adviser has established a valuation committee (the “Valuation Committee”) to carry out the ongoing fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation of the Company’s investments.

In calculating the value of total assets, the Valuation Designee values investments for which market quotations are readily available at such market quotations if they are deemed to represent fair value. Securities that are not publicly traded or whose market price is not readily available or whose market quotations are not deemed to represent fair value are valued at fair value as determined, in good faith, by the Valuation Designee. Market quotations may be deemed not to represent fair value in certain circumstances where the Valuation Designee reasonably believes that facts and circumstances applicable to an issuer, a seller or purchaser or the market for a particular security causes current market quotes not to reflect the fair value of the security. As the majority of the Company’s portfolio is made up of Level 3 assets under ASC 820, it is expected that market quotations will generally not be readily available. The Valuation Designee has engaged a third-party valuation firm to assist in the determination of fair value on a quarterly basis. The Valuation Designee and the independent valuation firm consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such Level 3 categorized assets.

As part of the valuation process, the Valuation Designee takes into account relevant factors in determining the fair value of the Company’s investments, including, but not limited to:

•

the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company’s debt and equity);

•

the portfolio company’s ability to make payments based on its earnings and cash flow;

•

the nature and realizable value of any collateral or expected cash proceeds upon exit;

•

recent transactions of the portfolio company or peers;

•

the assessment of the portfolio company in adhering to its business plan, underwriting expectations, and financial projections;

•

the markets in which the portfolio company does business;

•

a comparison of the portfolio company’s securities to any similar publicly traded securities; and

•

overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, the Valuation Designee has approved a multi-step valuation process that will be performed on a quarterly basis, as described below:

(1)

each portfolio company or investment is initially valued by the investment professionals of the Valuation Designee responsible for the portfolio investment or through the use of the independent valuation firm;

(2)

preliminary valuation conclusions are then documented and discussed with the valuation committee of the Valuation Designee; and

(3)

the Valuation Designee discusses valuations and determines in good faith the fair value of each investment in the portfolio based on input of its valuation committee and the applicable independent valuation firm.

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. In accordance with ASC 820, these inputs are summarized in the three levels listed below:

Level 1 — Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 — Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Transfers between levels, if any, are recognized at the beginning of the period in which the transfer occurred. In addition to using the above inputs in investment valuations, the Valuation Designee applies the valuation policy approved by the Company’s Board that is consistent with ASC 820.

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 fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.

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

Investment transactions are recorded on the trade date. The Company will measure net realized gains or losses as the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, including accrued interest, without regard to unrealized gains or losses previously recognized. Net change in unrealized gain or loss will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gain or loss, when gains or losses are realized.

Revenue Recognition

Interest Income

The Company records interest income on an accrual basis to the extent that it expects to collect such amounts. It does not accrue as a receivable interest on loans and debt securities for accounting purposes if it has reason to doubt its ability to collect such interest.

Debt Investments on Non-Accrual Status

When a debt security becomes 90 days or more past due, and/or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection.

As of June 30, 2026 and December 31, 2025, no loans to portfolio companies were on non-accrual status.

Distributions

Distributions to shareholders are recorded on the record date. The amount of taxable income to be paid out as a distribution is determined by the Board each quarter and will depend on the Company's earnings, financial condition, maintenance of our tax treatment as a RIC, compliance with applicable BDC regulations and such factors as the Board may deem relevant from time to time.

Segment Reporting

In accordance with ASC Topic 280 – “Segment Reporting (ASC 280),” the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

The Company operates through a single operating and reporting segment with an investment objective to maximize total return generated from its portfolio, which the Company expects to include current income from its debt investments as well as capital appreciation from equity and equity-related investments such as warrants. The Company's focus will be primarily on floating rate senior secured term loan investments to U.S.-based lower middle market companies and to a lesser extent, equity investments. The Company’s chief operating decision maker (the “CODM”) is comprised of the Company’s Chief Executive Officer and Chief Financial Officer. The CODM makes operating decisions of the Company primarily based on the Company’s net increase (decrease) in net assets resulting from operations. The evaluation and assessment of this metric is used in implementing investment policy decisions, strategic initiatives, managing the Company’s portfolio, and assessing the performance of the portfolio. As the Company’s operations are comprised of a single reporting segment, the segment assets are reflected on the accompanying consolidated statement of assets and liabilities and the significant segment expenses are listed on the accompanying consolidated statement of operations.

Recent Accounting Pronouncements

The Company has evaluated recent accounting pronouncements in the current period and determined that there were no recently issued but not yet adopted accounting standards that have a material effect on the Company's financial statements.

Note 3. Agreements and Related Party Transactions

Investment Advisory Agreement

The Company entered into the Investment Advisory Agreement with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company’s Board, manages the day-to-day operations of, and provides investment advisory services to the Company. The Investment Advisory Agreement will be effective for an initial two-year term and thereafter will continue for successive annual periods provided that such continuance is specifically approved annually by a majority of the Board or by the holders of a majority of the Company’s outstanding voting securities and, in each case, a majority of the independent trustees. The Investment Advisory Agreement may be terminated by either party without penalty upon 60 days' written notice to the other party.

Pursuant to the Investment Advisory Agreement with the Investment Adviser, the Company pays the Investment Adviser a fee for its services under the Investment Advisory Agreement consisting of two components – a base management fee (“Base Management Fee”) and an incentive fee (the “Incentive Fee”). The cost of both the Base Management Fee and the Incentive Fee will ultimately be borne by the shareholders.

Base Management Fee:

The Company pays the Investment Adviser the Base Management Fee, quarterly in arrears, at an annual rate of 1.50% of the Company’s average adjusted gross assets. The average adjusted gross asset balance is the average of the Company’s total gross assets (including assets acquired with leverage but adjusted to exclude cash and cash equivalents) at the end of the two most recently completed calendar quarters.

For the three and six months ended June 30, 2026, the Company recorded the Base Management Fee expense of $802,436 and $1,510,453, respectively. For the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, the Company recorded the Base Management Fee expense of $247,544 and $305,002, respectively. The Company has recorded Base Management Fee payable of $802,436 and $583,413 as of June 30, 2026 and December 31, 2025, respectively.

Incentive Fee:

Pursuant to the Investment Advisory Agreement, the Company also pays the Investment Adviser an Incentive Fee consisting of two parts: (i) an income incentive fee, determined and paid quarterly, based on pre-incentive fee net investment income of the Company (the “Income Incentive Fee”) and (ii) a capital gains incentive fee, determined and paid in arrears, based on net capital gains as of the end of each calendar year or upon the termination of the Investment Advisory Agreement (the “Capital Gains Incentive Fee”), which are described in more detail below.

Income Incentive Fee

The Income Incentive Fee will be calculated and payable quarterly in arrears and equals 15% of the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter, subject to a hurdle rate.

The Income Incentive Fee for each calendar quarter will be calculated as follows:

•

No Income Incentive Fee will be payable in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income Returns (as defined below) do not exceed a quarterly return to investors of 1.5% of the Company’s net asset value for that immediately preceding calendar quarter (the “Hurdle Rate”).

•

100% of the dollar amount of the Company’s Pre-Incentive Fee Net Investment Income Returns, if any, that exceed the Hurdle Rate, but are less than or equal to 1.76% of the Company’s net asset value for that immediately preceding calendar quarter (the “Catch-Up Rate”), will be payable to the Investment Adviser. The Catch-Up Rate is intended to provide an incentive fee of 15% on all of the Company’s Pre-Incentive Fee Net Investment Income Returns as if the Hurdle Rate did not apply when the Company’s pre-incentive fee net investment income exceeds 1.5% of the Company’s net asset value for that calendar quarter, measured as of the end of the immediately preceding calendar quarter.

•

15% of the dollar amount of the Company’s Pre-Incentive Fee Net Investment Income Returns, if any, that exceed the Catch-Up Rate, reflecting that once the Hurdle Rate is reached, 15% of all Pre-Incentive Fee Net Investment Income Returns thereafter are paid to the Investment Adviser.

“Pre-Incentive Fee Net Investment Income Returns” means, as the context requires, either the dollar value of, or percentage rate of return on the value of the Company’s net assets at the end of the immediately preceding quarter from, interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses accrued for the quarter (including the Base Management Fee, expenses payable under the Investment Advisory Agreement or Administration Agreement ), and any interest expense or fees on any credit facilities or outstanding debt and distributions paid on any issued and outstanding preferred shares, but excluding the incentive fee.

Pre-Incentive Fee Net Investment Income Returns include, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind (“PIK”) interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income Returns do not include any expense support payments or any reimbursement by the Company of expense support payments, or any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

For three and six months ended June 30, 2026, the Company recorded an Income Incentive Fee expense of $855,326, and $2,048,484, respectively. For the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, the Company recorded an Income Incentive Fee expense of $295,924 and $370,164, respectively. The total Income Incentive Fee payable was $855,326 and $691,016 as of June 30, 2026 and December 31, 2025, respectively.

Capital Gains Incentive Fee

The second component of the incentive fee, the Capital Gains Incentive Fee, is payable at the end of each calendar year in arrears and equals 20% of cumulative realized capital gains from the date of the Company’s election to be regulated as a BDC to the end of each calendar year, less cumulative net realized capital losses and unrealized capital depreciation, less the aggregate amount of any previously paid Capital Gains Incentive Fees. The Company will accrue quarterly, but will not pay, a Capital Gains Incentive Fee with respect to net unrealized appreciation. The Capital Gains Incentive Fee amount, or the calculations pertaining thereto, as appropriate, will account for any period less than a full calendar year.

In determining the Capital Gains Incentive Fee payable to the Investment Adviser, the Company will calculate the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Company’s inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in the Company’s portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the original cost of such investment since the Company’s inception. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the original cost of such investment since the Company’s inception. For the purposes of this calculation, “original cost” of the investment shall include cash deployed into the investment, excluding any capitalized PIK. “Net sales price” shall include cash proceeds generated from the investment, excluding any income recorded that is subject to the Income Incentive Fee as described above. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the original cost of such investment. At the end of the applicable year, the amount of capital gains that serves as the basis for the Company’s calculation of the Capital Gains Incentive Fee payable equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to the Company’s portfolio of investments. In no event will the Capital Gains Incentive Fee payable pursuant to the Investment Advisory Agreement be in excess of the amount permitted by the Investment Advisers Act of 1940, as amended, including Section 205 thereof.

For the three and six months ended June 30, 2026, the Company recorded a reversal of the accrual for Capital Gains Incentive Fee expense of $122,177 and $371,182 , respectively. For the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, the Company recorded an accrual for Capital Gains Incentive Fee expense of $212,085 and $209,823, respectively. The total Capital Gains Incentive Fee payable was $0 and $371,182 as of June 30, 2026, and December 31, 2025, respectively, which includes Capital Gains Incentive Fees payable acquired as part of the Formation Transaction.

Expense Support and Conditional Reimbursement Agreement

The Company entered into an expense support and conditional reimbursement agreement with the Investment Adviser (the “Expense Support Agreement”). The Expense Support Agreement provides that, at such times as the Investment Adviser determines, the Investment Adviser may pay certain expenses of the Company, provided that no portion of the payment will be used to pay any interest expense of the Company (each, an “Expense Payment”). Such Expense Payment will be made in any combination of cash or other immediately available funds no later than 45 days after a written commitment from the Investment Adviser to pay such expense, and/or by an offset against amounts due from the Company to the Investment Adviser or its affiliates related to expenses that are reimbursable by the Company pursuant to the Investment Advisory Agreement. Any payments required to be made by the Company pursuant to the Expense Support Agreement is referred to as a “Reimbursement Payment.” The Company has agreed to reimburse the Investment Adviser for such expense payments when the Company has reached certain milestones of capital raised from external subscribers. Specifically, once $100 million of capital is raised by external subscribers (“Milestone 1”), the Company will be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total amount outstanding of the Expense Payment. Once $125 million of capital is raised by external subscribers (“Milestone 2”), the Company shall be required to reimburse the Investment Adviser in an additional amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $150 million of capital is raised by external subscribers (“Milestone 3”), the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Once $175 million of capital is raised by external subscribers (“Milestone 4”), the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. In no event will the total amount reimbursed by the Company exceed $500,000.

As of June 30, 2026 and December 31, 2025, the Investment Adviser has incurred $344,874 of organization costs and $155,126 of offering costs prior to the Commencement of Operations that will be payable by the Company when the Company has reached the milestones of capital raised from external subscribers as described above. Milestone 1 was achieved as of October 1, 2025. Milestone 2 was achieved as of January 2, 2026. The offering costs are deferred and will be amortized over 12 months beginning October 1, 2025 and January 1, 2026 for the achievement of Milestone 1 and Milestone 2, respectively. As of June 30, 2026, achievement of Milestone 3 was deemed probable based on subscriptions from external subscribers. Accordingly, reimbursement of organization and offering costs was deemed probable as of June 30, 2026, and therefore, the Company has recorded a liability of $150,000 payable to the Investment Adviser as of June 30, 2026. As of and for the period ended June 30, 2026, $31,025 of deferred offering costs has been amortized and $69,807 remains recorded in prepaid expenses and other assets on the consolidated statement of assets and liabilities. As of and for the period from the Commencement of Operations through June 30, 2025, no deferred offering costs were amortized or recorded in prepaid expenses and other assets on the consolidated statements of assets and liabilities. No organizational and offering costs were incurred by the Company during the three and six months ended June 30, 2026, the three months ended June 30, 2025, and the period from the Commencement of Operations through June 30, 2025.

Administration Agreement

The Company has also entered into an administration agreement (the “Administration Agreement”) with BIP Capital, LLC (the “Administrator”) in which the Administrator provides certain administrative and fund accounting services to the Company, including fund accounting and financial reporting services, loan servicing, investor services, regulatory compliance services, tax reporting, audit support, technology and data management services and management of the Company’s third-party vendors. The Administrator may engage one or more third-party sub-administrators to perform, or assist the Administrator in the performance of, any of such services. For such services, the Investment Adviser has agreed to pay the Administrator a fee equal to fifteen percent (15%) of any Base Management Fees and/or Incentive Fees paid to the Investment Adviser by the Company. The cost of the fee paid to the Administrator will be borne entirely by the Investment Adviser and will not be borne by the Shareholders.

License Agreement

The Company has entered into the License Agreement with the Investment Adviser, pursuant to which it will be granted a non-exclusive, royalty-free license to use the name “LAGO” and the associated logo pursuant to a license agreement. Under this agreement, the Company has a right to use the LAGO name and logo for so long as LAGO Asset Management, LLC remains the Investment Adviser. Other than with respect to this limited license, the Company has no legal right to the “LAGO” name or logo.

Co-Investment Activity

The Company intends to co-invest from time to time, and intends to make co-investments with certain affiliates of the Investment Adviser, where doing so is consistent with the Company’s investment strategy as well as applicable law and SEC staff interpretations.

On April 23, 2025, the Company, the Investment Adviser and certain of their affiliates received an exemptive order from the SEC that permitted the Company to co-invest with investment funds managed by the Investment Adviser and its affiliates where doing so was consistent with the Company’s investment strategy as well as applicable law (including the terms and conditions of the exemptive order issued by the SEC). Under the terms of the relief permitting the Company to co-invest with other funds managed by the Investment Adviser and its affiliates, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the trustees who are not interested persons as defined in Section 2(a)(19) of the 1940 Act, must make certain conclusions in connection with a co-investment transaction, including (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its shareholders and do not involve overreaching of the Company or its shareholders on the part of any person concerned and (2) the transaction is consistent with the interests of its shareholders and is consistent with the Company’s investment objectives and strategies.

On July 21, 2025, the Company, the Investment Adviser and certain of their affiliates were granted an order for co-investment relief by the SEC based on an updated model of co-investment order that was granted by the SEC (the “Order”) in early 2025. The Order supersedes the prior exemptive order granted on April 23, 2025. The Order permits the Company to participate in negotiated co-investment transactions with other funds managed by the Adviser and certain other affiliates pursuant to the conditions of the Order. The Order requires that a “required majority” (as defined in Section 57(o) of the 1940 Act) of the trustees who are not interested persons as defined in Section 2(a)(19) of the 1940 Act , must make certain conclusions in connection with a co-investment transaction, including (1) when the Company co-invests with an affiliated entity (as defined in the exemptive application) in an issuer where an affiliated entity has an existing investment in the issuer under certain circumstances, and (2) if the Company disposes of an asset acquired in a co-investment transaction unless the disposition is done on a pro rata basis or the disposition is of a tradable security. Pursuant to the Order, the Board will oversee the Company’s participation in the co-investment program. As required by the Order, the Company has adopted, and the Board has approved, policies and procedures reasonably designed to ensure the Company’s compliance with the conditions of the Order, and the Investment Adviser and the Company’s Chief Compliance Officer will provide reporting to the Board.

Note 4. Investments

In accordance with the provisions of the 1940 Act, the Company classifies investments by level of control. As defined in the 1940 Act, “Controlled Investments” are investments in those companies that the Company is deemed to “Control.” “Affiliated Investments” are investments in those companies that are “Affiliated Persons” of the Company, as defined in the 1940 Act, other than Control Investments. “Non-Controlled / Non-Affiliated Investments” are those that are neither Controlled Investments nor Affiliated Investments. Generally, under the 1940 Act, the Company is deemed to control a company in which it has invested if the Company owns more than 25.0% of the voting securities (i.e., securities with the right to elect directors) and/or has the power to exercise control over the management or policies of such portfolio company. Generally, under the 1940 Act, “Affiliated Investments” that are not otherwise “Controlled Investments” are defined as investments in which the Company owns at least 5.0%, up to 25.0% (inclusive), of the voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Generally, under the 1940 Act, “Non-Controlled / Non-Affiliated Investments” are defined as investments in which the Company owns less than 5.0% of the voting securities of such portfolio company.

The composition of the Company’s investment portfolio at cost and fair value was as follows:


	June 30, 2026							December 31, 2025
	Cost		Fair Value		% of Total Investments at Fair Value			Cost		Fair Value		% of Total Investments at Fair Value
First lien senior secured term loans	$	217,529,477	$	216,706,457		92.0	%	$	165,755,050	$	167,303,857		90.1	%
Second lien senior secured term loans		4,454,058		4,454,058		1.9	%		9,605,804		9,605,804		5.2	%
Equity		3,066,668		3,066,668		1.3	%		-		-		—
Warrants		11,146,573		11,260,473		4.8	%		8,397,115		8,704,217		4.7	%
Total	$	236,196,776	$	235,487,656		100.0	%	$	183,757,969	$	185,613,878		100.0	%

Refer to Note 5 – Fair Value Measurements for additional information on the fair value of the Company’s investments.

The industry composition of investments at fair value was as follows:


	June 30, 2026							December 31, 2025
	Cost		Fair Value		% of Total Investments at Fair Value			Cost		Fair Value		% of Total Investments at Fair Value
Application Software	$	17,071,053	$	16,943,281		7.2	%	$	10,201,918	$	10,184,487		5.5	%
Automotive Services		1,994,498		1,994,498		0.8	%		1,193,420		1,193,420		0.6	%
Business Services		29,207,036		28,929,319		12.3	%		22,648,734		22,648,734		12.2	%
Consumer Discretionary		6,637,392		6,655,955		2.8	%		-		-		—
Consumer Finance		7,974,939		8,057,603		3.4	%		3,985,680		3,996,494		2.2	%
Consumer Services		2,436,855		2,436,855		1.0	%		2,393,090		2,393,090		1.3	%
Data Processing		8,941,795		9,562,163		4.1	%		18,393,085		19,558,615		10.6	%
Ecommerce – CPG		17,961,916		18,392,534		7.8	%		17,618,056		17,618,056		9.5	%
Ecommerce – Apparel		11,142,420		11,068,166		4.7	%		11,100,234		11,100,234		6.0	%
Education		7,934,672		7,886,663		3.3	%		7,892,849		7,854,920		4.2	%
Food & Beverage		15,380,250		15,443,900		6.6	%		2,983,750		3,047,400		1.6	%
Health & Wellness		15,751,903		16,353,350		7.1	%		13,025,430		14,062,825		7.6	%
Technology – Aerospace		5,125,238		5,397,884		2.3	%		3,354,590		3,377,019		1.8	%
Technology – Agriculture		3,124,189		3,124,189		1.3	%		3,118,623		3,118,623		1.7	%
Technology – Business		18,521,090		18,238,736		7.7	%		15,529,561		15,554,042		8.4	%
Technology – Communication		3,946,463		3,946,463		1.7	%		2,750,038		2,750,038		1.5	%
Technology – Consumer		13,832,005		12,617,905		5.4	%		6,264,345		6,020,281		3.2	%
Technology – Cybersecurity		5,786,947		5,985,296		2.5	%		9,552,539		9,552,539		5.1	%
Technology – Health & Wellness		15,236,778		14,894,759		6.3	%		9,249,642		9,080,676		4.9	%
Technology – Marketplace		13,436,621		12,805,421		5.4	%		13,198,711		13,198,711		7.1	%
Technology – Property		4,386,304		4,386,304		1.9	%		2,402,326		2,402,326		1.3	%
Transportation		10,366,412		10,366,412		4.4	%		6,901,348		6,901,348		3.7	%
Total	$	236,196,776	$	235,487,656		100.0	%	$	183,757,969	$	185,613,878		100.0	%

As of and for the three and six months ended June 30, 2026, the Company had the following portfolio companies that individually accounted for 10% or more of the Company’s aggregate total assets or investment income:


Portfolio Company	Percentage of Total Investment Income for three months ended June 30, 2026		Percentage of Total Investment Income for the six months ended June 30, 2026			Percentage of Total Assets as of June 30, 2026
AI Software, LLC d/b/a Capacity		—		14.4	%		1.1	%

As of December 31, 2025 and for the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, the Company had the following portfolio companies that individually accounted for 10% or more of the Company's aggregate total assets or investment income:


Portfolio Company	Percentage of Total Investment Income for Three Months Ended June 30, 2025			Percentage of Total Investment Income for period from the Commencement of Operations through June 30, 2025			Percentage of Total Assets as of December 31, 2025
Youth Opportunity Investments, LLC		19.5	%		20.2	%		5.2	%
FanFixApp, LLC		21.5	%		21.0	%		6.9	%

Transactions related to investments in non-controlled / affiliated companies for the three and six months ended June 30, 2026 were as follows:


Portfolio Company	Fair Value as of March 31, 2026		Gross Additions(a)		Gross Reductions(b)		Net Change in Unrealized Gains (Losses)			Fair Value as of June 30, 2026		Interest Income
Non-Controlled / Affiliated Investments
Roq.Ad, Inc.	$	—	$	14,168,411	$	—	$	(79,724	)	$	14,088,687	$	427,041
Total Investments	$	—	$	14,168,411	$	—	$	(79,724	)	$	14,088,687	$	427,041


Portfolio Company	Fair Value as of December 31, 2025		Gross Additions(a)		Gross Reductions(b)		Net Change in Unrealized Gains (Losses)			Fair Value as of June 30, 2026		Interest Income
Non-Controlled / Affiliated Investments
Roq.Ad, Inc.	$	—	$	14,168,411	$	—	$	(79,724	)	$	14,088,687	$	427,041
Total Investments	$	—	$	14,168,411	$	—	$	(79,724	)	$	14,088,687	$	427,041

Gross additions may include increases in the cost basis of investments resulting from new investments, amount related to payment-in-kind ("PIK") interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement at fair value of an existing portfolio company into this affiliated category from a different category.

Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, return of capital, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.

There were no transactions related to investments in controlled / affiliated or non-controlled / affiliated companies for the three months ended June 30, 2025, or for the period from the Commencement of Operations through June 30, 2025.

Note 5. Fair Value Measurements

The Company’s investments were categorized in the fair value hierarchy described in Note 2 – Significant Accounting Policies.

The Company’s investments measured at fair value by investment type on a recurring basis as of June 30, 2026 and December 31, 2025 were as follows:


	June 30, 2026
	Level 1		Level 2		Level 3		Total
First lien senior secured term loans	$	-	$	-	$	216,706,457	$	216,706,457
Second lien senior secured term loans		-		-		4,454,058		4,454,058
Equity		-		-		3,066,668		3,066,668
Warrants		-		-		11,260,473		11,260,473
Total investments before cash equivalents	$	-	$	-	$	235,487,656	$	235,487,656
Money market treasury fund		513,848		-		-		513,848
Total investments after cash equivalents	$	513,848	$	—	$	235,487,656	$	236,001,504


	December 31, 2025
	Level 1		Level 2		Level 3		Total
First lien senior secured term loans	$	-	$	-	$	167,303,857	$	167,303,857
Second lien senior secured term loans		-		-		9,605,804		9,605,804
Warrants		-		-		8,704,217		8,704,217
Total investments before cash equivalents	$	-	$	-	$	185,613,878	$	185,613,878
Money market treasury fund		370,052		-		-		370,052
Total investments after cash equivalents	$	370,052	$	—	$	185,613,878	$	185,983,930

The following tables provide a reconciliation of the beginning and ending balances for investments for which fair value was determined using Level 3 inputs:


	For the Three Months Ended June 30, 2026
	First lien senior secured term loans			Second lien senior secured term loans			Equity		Warrants			Total
Total fair value of investments in portfolio companies at March 31, 2026	$	168,193,230		$	10,349,045		$	666,668	$	8,770,488		$	187,979,431
Transfers between investment types		5,909,770			(5,909,770	)		-		-			-
Purchases of investments in portfolio companies, net of proceeds from deferred loan fees		49,933,348			-			2,400,000		2,626,477			54,959,825
Principal increase related to MOIC rollover		-			-			-		-			-
Paid-in-kind interest income		106,197			-			-		-			106,197
Proceeds from loan repayments on investments in portfolio companies		(7,441,048	)		-			-		-			(7,441,048	)
Net accretion of discounts and amortization of premiums on investments		1,188,473			14,783			-		-			1,203,256
Net change in unrealized gain (loss)		(1,183,513	)		-			-		(136,492	)		(1,320,005	)
Total fair value of investments in portfolio companies at June 30, 2026	$	216,706,457		$	4,454,058		$	3,066,668	$	11,260,473		$	235,487,656


	For the Six Months Ended June 30, 2026
	First lien senior secured term loans			Second lien senior secured term loans			Equity		Warrants			Total
Total fair value of investments in portfolio companies at December 31, 2025	$	167,303,857		$	9,605,804		$	-	$	8,704,217		$	185,613,878
Transfers between investment types		5,901,311			(5,901,311	)		-		-			-
Purchases of investments in portfolio companies, net of proceeds from deferred loan fees		60,237,364			-			3,066,668		2,749,461			66,053,493
Principal increase related to MOIC rollover		-			720,000			-		-			720,000
Paid-in-kind interest income		220,217			-			-		-			220,217
Proceeds from loan repayments on investments in portfolio companies		(18,448,217	)		-			-		-			(18,448,217	)
Net accretion of discounts and amortization of premiums on investments		3,863,749			29,565			-		-			3,893,314
Net change in unrealized gain (loss)		(2,371,824	)		-			-		(193,205	)		(2,565,029	)
Total fair value of investments in portfolio companies at June 30, 2026	$	216,706,457		$	4,454,058		$	3,066,668	$	11,260,473		$	235,487,656


	For the three months ended June 30, 2025
	First lien senior secured term loans			Second lien senior secured term loans		Equity		Warrants		Total
Total fair value of investments in portfolio companies at March 31, 2025	$	50,344,414		$	-	$	-	$	3,961,525	$	54,305,939
Purchases of investments in portfolio companies, net of proceeds from deferred loan fees		10,853,409			8,099,456		-		2,540,135		21,493,000
Paid-in-kind interest income		9,050			-		-		-		9,050
Proceeds from loan repayments on investments in portfolio companies		(1,009,375	)		-		-		-		(1,009,375	)
Net accretion of discounts and amortization of premiums on investments		500,130			3,540		-		-		503,670
Net change in unrealized gain (loss)		428,557			-		-		657,823		1,086,380
Total fair value of investments in portfolio companies at June 30, 2025	$	61,126,185		$	8,102,996	$	—	$	7,159,483	$	76,388,664

There were no transfers into or out of Level 3 of the fair value hierarchy during the three and six months ended June 30, 2026, three months ended June 30, 2025, or the period from the Commencement of Operations through June 30, 2025.

The following table summarizes the significant unobservable inputs the Valuation Designee used to value the Company's investments categorized within Level 3 as of June 30, 2026 and December 31, 2025:

         Investment
Type

         Fair Value as of June 30, 2026

         Valuation
Techniques/
Methodologies

         Unobservable
Input

         Range
(Weighted
Average)1

         Impact to
Valuation
from an
Increase in
Input2

First lien senior secured term loans

216,706,457

Discounted cash flow

Discount rate

11.8% - 27.3% (15.6%)

Decrease

Second lien senior secured term loans

4,454,058

Discounted cash flow

Discount rate

15.3% - 16.4% (15.7%)

Decrease

Equity

666,668

Recent transaction

N/A

N/A

N/A

2,400,000

Market Approach

N/A

N/A

N/A

Warrants

7,831,680

Market approach

Revenue Multiples

0.75 - 17.74 (4.75)

Increase

          
         Market approach

         Volatility

         37.5% - 137.5% (86.8%)

         Increase

          
         Market approach

         Estimated time to exit (in years)

         1.2 - 5.0 (4.69)

         Decrease

1,307,168

Market approach

Revenue Multiples

1.28 - 9.17 (2.32)

Increase

2,121,625

Market approach

EBITDA Multiples

10.00 - 10.00 (10.00)³

Increase

Total

235,487,656

The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

This range relates to one single investment valued using the market approach and EBITDA multiples as its unobservable input.

         Investment
Type

         Fair Value as of December 31, 2025

         Valuation
Techniques/
Methodologies

         Unobservable
Input

         Range
(Weighted
Average)1

         Impact to
Valuation
from an
Increase in
Input2

First lien senior secured term loans

137,688,421

Discounted cash flow

Discount rate

10.8% - 27.0% (14.8%)

Decrease

First lien senior secured term loans

29,615,436

Recent transaction

N/A

N/A

N/A

Second lien senior secured term loans

9,605,804

Discounted cash flow

Discount rate

14.3% - 17.5% (15.5%)

Decrease

Warrants

5,403,712

Market approach

Revenue Multiples

1.05 - 17.74 (3.97)

Increase

          
         Market approach

         Volatility

         40% - 75% (60.5%)

         Increase

          
         Market approach

         Estimated time to exit (in years)

         2.0 - 4.0 (3.34)

         Decrease

1,178,880

Market approach

Revenue Multiples

1.60 - 2.88 (2.86)

Increase

2,121,625

Market approach

EBITDA Multiples

7.75 - 7.75 (7.75)³

Increase

Total

185,613,878

The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

This range relates to one single investment valued using the market approach and EBITDA multiples as its unobservable input.

Note 6. Commitments and Contingencies

Unfunded Commitments

the funded portion of the investment, as presented within the Consolidated Schedule of Investments. As of June 30, 2026, the Company had the following commitments to fund delayed draw term loans and revolvers.


Investments	Industry	Type of Investment	Total Committed		Funded		Unfunded1
Clean Connect AI	Application Software	Delayed draw term loan	$	1,500,000	$	-	$	1,500,000
SER Holdco, Inc. d/b/a SE Ranking	Application Software	Delayed draw term loan		3,000,000		2,400,000		600,000
Stress Free Auto Care, Inc.	Automotive Services	Delayed draw term loan		14,800,000		800,000		14,000,000
ADG Technology Inc dba Carry 1st	Business Services	Delayed draw term loan		1,950,000		-		1,950,000
CoreX, Inc.	Business Services	Revolver		12,500		409		12,091
SNA, Inc. dba Safety Net Access	Business Services	Delayed draw term loan		700,000		-		700,000
Koala Eco Company	Consumer Discretionary	Delayed draw term loan		1,940,000		-		1,940,000
Koala Eco Company	Consumer Discretionary	Revolver		12,500		13		12,487
Atlas Exploration, Inc.	Consumer Finance	Delayed draw term loan		18,000,000		6,000,000		12,000,000
Nickey Kehoe Inc.	Consumer Discretionary	Revolver		25,000		-		25,000
Milk + Honey Holdings LLC	Consumer Services	Delayed draw term loan		1,600,000		-		1,600,000
Cleveland Kitchen	Food & Beverage	Delayed draw term loan		2,440,000		-		2,440,000
Cleveland Kitchen	Food & Beverage	Revolver		12,500		7,535		4,965
Epigenetics Labs d/b/a Organixx	Food & Beverage	Delayed draw term loan		500,000		-		500,000
Slate Milk, Inc	Food & Beverage	Delayed draw term loan		3,992,000		-		3,992,000
Slate Milk, Inc	Food & Beverage	Revolver		12,500		4,167		8,333
Happy Head, Inc.	Health & Wellness	Delayed draw term loan		2,000,000		-		2,000,000
Fortem Technologies, Inc.	Technology – Aerospace	Delayed draw term loan		5,000,000		2,000,000		3,000,000
CamoAg Inc.	Technology – Agriculture	Delayed draw term loan		700,000		-		700,000
Hearth Display, Inc.	Technology – Consumer	Delayed draw term loan		16,000,000		2,000,000		14,000,000
Predictive Fitness, Inc.	Technology – Health & Wellness	Delayed draw term loan		3,000,000		-		3,000,000
Tapestry Management Services Inc.	Technology – Health & Wellness	Delayed draw term loan		3,500,000		-		3,500,000
Stake Network Inc	Technology – Property	Delayed draw term loan		2,450,000				2,450,000
Spotter Labs Inc.	Transportation	Delayed draw term loan		10,500,000		3,500,000		7,000,000
Total			$	93,647,000	$	16,712,124	$	76,934,876

The unfunded delayed draw term loans and revolvers may or may not be funded to the borrowing party in the future. These unfunded contractual commitments are generally at the Company's discretion and/or are dependent on the portfolio company meeting certain performance obligations before the debt commitment becomes available to be drawn. Furthermore, the Company’s credit agreements contain customary lending provisions that allow the Company relief from funding obligations for previously made commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the Company. As of June 30, 2026, $12.6 million, in aggregate, was available to be drawn upon by eight portfolio companies at their discretion.

As of December 31, 2025, the Company had the following commitments to fund delayed draw term loans and a revolver.


Investments	Industry	Type of Investment	Total Committed		Funded		Unfunded1
SER Holdco, Inc. d/b/a SE Ranking	Application Software	Delayed draw term loan	$	1,800,000	$	-	$	1,800,000
Stress Free Auto Care, Inc.	Automotive Services	Delayed draw term loan		14,800,000		-		14,800,000
CoreX, Inc.	Business Services	Revolver		12,500		-		12,500
SNA, Inc. dba Safety Net Access	Business Services	Delayed draw term loan		700,000		-		700,000
Atlas Exploration, Inc.	Consumer Finance	Delayed draw term loan		18,000,000		2,000,000		16,000,000
Milk + Honey Holdings LLC	Consumer Services	Delayed draw term loan		1,600,000		-		1,600,000
Epigenetics Labs d/b/a Organixx	Food & Beverage	Delayed draw term loan		500,000		-		500,000
Happy Head, Inc.	Health & Wellness	Delayed draw term loan		2,666,667		-		2,666,667
CamoAg Inc.	Technology – Agriculture	Delayed draw term loan		700,000		-		700,000
Kudo, Inc.	Technology – Communication	Delayed draw term loan		1,200,000		-		1,200,000
Hearth Display, Inc.	Technology – Consumer	Delayed draw term loan		16,000,000		2,000,000		14,000,000
1touch.IO Inc.	Technology – Cybersecurity	Delayed draw term loan		1,600,000		-		1,600,000
Predictive Fitness, Inc.	Technology – Health & Wellness	Delayed draw term loan		3,000,000		-		3,000,000
Tapestry Management Services Inc.	Technology – Health & Wellness	Delayed draw term loan		3,500,000		-		3,500,000
Spotter Labs Inc.	Transportation	Delayed draw term loan		10,500,000		-		10,500,000
Total			$	76,579,167	$	4,000,000	$	72,579,167

The unfunded delayed draw term loans may or may not be funded to the borrowing party in the future. These unfunded contractual commitments are generally at the Company's discretion and/or are dependent on the portfolio company meeting certain performance obligations before the debt commitment becomes available to be drawn. Furthermore, the Company’s credit agreements contain customary lending provisions that allow the Company relief from funding obligations for previously made commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the Company. As of December 31, 2025, $4.8 million, in aggregate, was available to be drawn upon by two portfolio companies at their discretion.

Additionally, from time to time, the Investment Adviser may commit to an investment on behalf of the investment vehicles it manages, including the Company. Certain terms of these investments are not finalized at the time of the commitment and the Company’s allocation may change prior to the date of funding.

The Company will fund its unfunded commitments, if any, from the same sources it uses to fund its investment commitments at the time they are made (which are typically through existing cash and cash equivalents and borrowings under its KeyBank Credit Facility) and maintains adequate liquidity to fund its unfunded commitments through these sources.

In the ordinary course of its business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications as of June 30, 2026 or December 31, 2025.

See Note 3 – Agreements and Related Party Transactions for further information on the Company’s Expense Reimbursement Agreement with the Investment Adviser.

Note 7. Borrowings

The Company has entered into a Loan and Security Agreement with the KeyBank National Association (the "KeyBank Credit Agreement"), under which the Company established a $125,000,000 revolving line of credit to provide leverage to the Company. The line of credit has a maturity date of February 28, 2030. Borrowings under the KeyBank Credit Agreement generally bear interest at a rate equal to Term SOFR plus 3.25% to 4.00%, subject to the number of eligible loans in the collateral pool. Under the terms of the credit agreement, the Company is subject to several covenants. As of June 30, 2026 and December 31, 2025, the Company was in compliance with these covenants. The line of credit provides for advances that range from 45% to 55%, subject to the number of eligible loans in the collateral pool, on eligible loans held by the Company, as defined under KeyBank Credit Agreement.

As part of the Formation Transaction, the Company paid $1,275,142 of debt issuance costs to underwrite this credit agreement. The Company paid $0 and $41,365 of debt issuance costs for the three and six months ended June 30, 2026, respectively, and $10,582 and $1,285,724 for the three months ended June 30, 2025 and period from the Commencement of Operations through June 30, 2025, respectively. As of June 30, 2026, the Company had $92,903,869 of gross outstanding borrowings under the line of credit, incurring $1,144,896 of interest expense with a weighted average interest rate of 6.89% for the three months ended June 30, 2026, and interest expense of $2,085,426 with a weighted average interest rate of 6.91% for six months ended June 30, 2026. As of June 30, 2025, the Company had $25,000,000 of gross outstanding borrowings under the line of credit, incurring $25,344 of interest expense with a weighted average interest rate of 8.07% for the three months ended June 30, 2025, and interest expense of $39,864 with a weighted average interest rate of 8.07% for the period from the Commencement of Operations through June 30, 2025.

The Company had average gross outstanding borrowings of $65,718,572 and $60,010,192 for the three and six months ended June 30, 2026, respectively. The Company had average gross outstanding borrowings of $1,241,758 and $1,449,383 for the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, respectively. Additionally, the Company incurred unused borrowing fees of $108,048, at a rate of 0.70%, and $240,645, at a rate of 0.72%, for the three and six months ended June 30, 2026, respectively. The Company incurred unused borrowing fees of $139,833 and $188,484, at a rate of 0.75%, for the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, respectively. During the three and six months ended June 30, 2026, the Company incurred $99,524 and $208,796 of debt financing costs, respectively. During the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, the Company incurred $63,757 and $21,252 of debt financing costs, respectively. The interest expense, unused borrowing fees, and debt financing costs are included in interest expense and other debt fees on the Consolidated Statement of Operations.

Note 8. Net Assets

The Company has the authority to issue an unlimited number of Shares. The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, at an offering price of $25.00 per Share for an aggregate purchase price of $25,000.

On March 3, 2025, the Company completed the Formation Transaction and the equity interests of the Legacy Fund held by the Legacy Fund Members were exchanged for Shares. The Company issued 2,722,631 Shares for total proceeds of $68,065,767 as payment for such Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members.

The following table summarizes the assets and liabilities acquired from the Legacy Fund in the Formation Transaction:


	March 3, 2025
Assets
Investments
Non-controlled / non-affiliated investments, at fair value (cost of $41,412,298)	$	41,412,298
Cash and cash equivalents		27,586,601
Interest receivable		416,919
Total assets	$	69,415,818
Liabilities
Management fees payable	$	179,955
Incentive fees payable		248,448
Accrued audit and tax fees		74,000
Accrued expenses and other liabilities		15,000
Distribution payable		832,648
Total liabilities	$	1,350,051
Net assets acquired	$	68,065,767

The following tables summarize transactions in Shares for the three months ended June 30, 2026 and 2025:


	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
	Shares		Amount		Shares		Amount
Shares
Subscriptions		406,092	$	10,395,950		650,150	$	16,260,250
Net increase (decrease)		406,092	$	10,395,950		650,150	$	16,260,250

The following tables summarize transactions in Shares for the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025:


	Six Months Ended June 30, 2026				For the period from the Commencement of Operations through June 30, 2025
	Shares		Amount		Shares		Amount
Shares
Issuance of shares related to Formation Transaction1		-	$	-		2,722,631	$	68,065,767
Subscriptions		944,482		24,076,450		650,150		16,260,250
Net increase (decrease)		944,482	$	24,076,450		3,372,781	$	84,326,017

Net Asset Value per Share and Offering Price

The Company is conducting the Private Offering, in reliance on exemptions from the registration requirements of the Securities Act. At each closing, an investor purchases Shares pursuant to a subscription agreement entered into with the Company.

Subscriptions will be accepted on a continuous basis and Shares will be issued at periodic closings at a per-share price generally equal to the Company’s NAV per Share as determined by the Board (or its appropriate committee) 48 hours prior to closing. The Company intends to issue Shares on a quarterly basis, subject to consideration of the investment opportunities that arise.

The following table summarizes each NAV per Share at which subscription closings occurred during the life-to-date period for Shares of beneficial interest as of the dates listed below:


	NAV Per Share
As of
December 31, 2024	$	25.00
March 3, 2025	$	25.00
March 31, 2025	$	25.01
June 30, 2025	$	25.27
September 30, 2025	$	25.31
December 31, 2025	$	25.41
March 31, 2026	$	25.60
June 30, 2026	$	25.37

Distributions

The Company's Board expects to declare quarterly distributions. The following table summarizes distributions declared by the Company during the period from the Commencement of Operations through June 30, 2026:


Declaration Date	Type	Record Date	Payment Date	Per Share Amount		Dividend Paid
March 3, 2025	(a)	March 3, 2025	March 20, 2025	(a)		$	832,648
March 27, 2025	Quarterly	March 31, 2025	April 15, 2025	$	0.14	$	381,308
June 27, 2025	Quarterly	June 30, 2025	July 16, 2025	$	0.50	$	1,686,890
September 29, 2025	Quarterly	September 30, 2025	October 16, 2025	$	0.68	$	2,631,251
December 23, 2025	Quarterly	December 31, 2025	January 13, 2026	$	0.84	$	3,937,553
March 30, 2026	Quarterly	March 31, 2026	April 16, 2026	$	0.92	$	4,807,876
June 30, 2026	Quarterly	June 30, 2026	July 15, 2026	$	0.87	$	4,899,879

The Company acquired a distribution payable of $832,648 in association with the Formation Transaction.

No other distributions were made to Shareholders during the three and six months ended June 30, 2026, the three months ended June 30, 2025, or the period from the Commencement of Operations through June 30, 2025.

Share Repurchase Program

The Company does not intend to list its Shares on a securities exchange and does not expect there to be a public market for its shares. As a result, investors’ ability to sell Shares will be limited.

Two years after the date on which the Company commenced the Private Offering, and at the discretion of the Board, the Company intends to commence a share repurchase program in which it intends to repurchase annually up to 10% of outstanding Shares (by number of Shares). Under the share repurchase program, to the extent the Company offers to repurchase Shares during an annual period, the Company expects to repurchase Shares pursuant to tender offers as of the applicable quarter-end using a purchase price equal to the NAV per Share as of the last calendar day of the applicable quarter, except that Shares that have not been outstanding for at least one year will be repurchased at 98% of such NAV (an “Early Repurchase Deduction”). Any early Repurchase Deduction will be retained by the Company for the benefit of remaining shareholders.

The Board may amend or suspend the share repurchase program if, in its reasonable judgment, it deems such action to be in the Company’s best interest and the best interest of its shareholders, such as when a repurchase offer would place an undue burden on liquidity, adversely affect operations or risk having an adverse impact on the Company that would outweigh the benefit of the repurchase offer. As a result, Share repurchases may not be available annually. Should the Board suspend the share repurchase program, the Board will consider whether the continued suspension of the program is in the best interests of the Company and shareholders on a quarterly basis. The Company intends to conduct such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Exchange Act and the 1940 Act.

The Company did not make any share repurchases for the three and six months ended June 30, 2026, the three months ended June 30, 2025, or the period from the Commencement of Operations through June 30, 2025.

Note 9. Financial Highlights

The financial highlights for the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025 are as follows:


	For the Six Months Ended June 30, 2026			For the period from the Commencement of Operations through June 30, 2025
Per Share Activity
Net asset value, beginning of period	$	25.41		$	25.00
Net investment income (loss)1		2.22			0.59
Net realized and unrealized gain (loss)1		(0.47	)		0.32
Net increase (decrease) in net assets resulting from operations		1.75			0.91
Distribution paid (declared) to shareholders2
Distributions paid (declared) from net investment income		(1.79	)		(0.64	)
Net increase (decrease) in net assets resulting from distributions		(1.79	)		(0.64	)
Net asset value, end of period	$	25.37		$	25.27
Total return3		6.89	%		3.64	%
Number of Shares outstanding at end of period		5,632,045			3,373,781
Ratios to Average Net Assets:
Net assets, end of period	$	142,909,694		$	85,245,678
Ratio of net investment income (loss) to average net assets4		16.39	%		9.08	%
Ratio of total expenses to average net assets4		9.81	%		5.06	%
Ratio of total expenses, excluding incentive fees4		7.14	%		4.33	%
Portfolio turnover5		11.16	%		0.00	%

Calculated based on weighted average Shares outstanding during the period.

Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s shareholders. The tax character of distributions is determined at the end of the fiscal year.

Total return is not annualized and represents the total return for the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025. Total return displayed is net of all fees, including all operating expenses such as management fees, incentive fees, and general and administrative expenses. Total return is calculated as the change in NAV per Share during the period plus declared distributions per Share during the period, divided by the beginning NAV per Share (which for the purposes of this calculation is equal to the net offering price in effect at that time).

The ratio reflects an annualized amount, except in the case of non-recurring fees and expenses (i.e., capital gains incentive fees, reimbursement of organizational expenses paid by the Investment Adviser, business licenses and permits fees).

Portfolio turnover is calculated by dividing the lesser of total investment purchases or sales by the average value of the investment portfolio for the period. Sales include principal amortization, partial paydowns, and full payoffs, in addition to dispositions. As a result, turnover may vary from period to period based primarily on repayment activity rather than trading volume.

Note 10. Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the filing of this Quarterly Report on Form 10-Q. Except as noted below, there have been no subsequent events that occurred during such period that would require recognition or disclosure.

Share Issuance

Effective July 1, 2026, the Company sold 666,496 Shares at a price per Share of $25.37 (with the final number of shares being determined on July 16, 2026) to accredited investors in a private placement of Shares for an aggregate offering price of $16,909,000.

Distributions

On July 15, 2026, the Company paid a distribution of $0.87 per Share to shareholders of record as of June 30, 2026, for a total amount of $4,899,879.

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 “Item 1. Financial Statements.” This discussion contains forward-looking statements, which relate to future events, our future performance or financial condition and involves numerous risks and uncertainties. Actual results could differ materially from those implied or expressed in any forward-looking statements.

Overview

LAGO Evergreen Credit (the “Company,” “we,” “us,” or “our”), a Delaware statutory trust formed on October 30, 2024, is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (the “BDC”) under the Investment Company Act of 1940 (the “1940 Act”). The Company also qualifies and has elected to be treated, for U.S. federal income tax purposes, and intends to qualify annually thereafter, as a regulated investment company (the “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a BDC that has qualified as a RIC, the Company is required to comply with certain regulatory requirements. For example, as a BDC, at least 70% of the Company’s total assets must be assets of the type listed in Section 55(a) of the 1940 Act.

The Company is externally managed by LAGO Asset Management, LLC (the “Investment Adviser”). The Investment Adviser is a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act). The Company entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company’s Board, manages the day-to-day operations of, and provides investment advisory services to the Company.

The Company was formed to serve as a direct lender to primarily U.S.-based lower middle market companies that the Company believes have the potential to expand their respective enterprise value through organic growth, acquisitions, market expansion, new product innovation, and/or achieving operational efficiencies, among other potential growth stimulants. The Company defines “lower middle market” as the segment of the economy comprised of those companies with annual revenues of between $10 million and $250 million. The Company considers a company to be U.S.-based if it is organized under the laws of, and has its principal place of business in, the United States. The Company’s borrowers typically use capital to support such growth initiatives including, but not limited to, working capital needs, product or market expansion initiatives, acquisitions, refinancings and recapitalizations. The Company’s aim is to invest primarily in floating rate senior secured term loans used to finance the continued growth and expansion of predominantly U.S.-based companies that are likely to be sponsored by venture capital, private equity or family office firms.

We intend to achieve our investment objectives by investing at least 70% of the Company’s net assets (plus the amount of borrowings for investment purposes) in portfolio companies that qualify as eligible portfolio companies under the 1940 Act, with our core focus on investments in U.S.-based lower middle market companies that are engaged in disrupting the status quo in their native industries or creating de novo markets through the offering of innovative products, services or technologies, or by creating technology-enabled business models aimed at enhancing efficiency, customer experience, and/or speed to market. Furthermore, under normal circumstances, we expect to invest at least 80% of our net assets in “credit”, which we define as debt investments made in exchange for regular interest payments. The Company serves as a direct lender of predominantly senior secured loans to innovative companies typically generating annual revenue between $10 million and $250 million, which the Company considers the lower middle market.

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 common shares of beneficial interest, par value of $0.01 per share (the “Shares”), of the Company, for an aggregate purchase price of $25,000. On March 3, 2025, prior to electing to be regulated as a BDC, the Company completed a series of transactions pursuant to which LAGO Evergreen Credit, LLC (the "Legacy Fund") merged with and into the Company with the Company continuing as the surviving entity (the "Formation Transaction"). As a result of the Formation Transaction, the equity interests of the Legacy Fund held by LAGO Evergreen Credit-QP, LP and LAGO Evergreen Credit-AI, LP (the “Legacy Fund Members”) were exchanged for Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members as part of the dissolution and liquidation of the Legacy Fund Members. The Company issued 2,722,631 Shares at a price of $25.00 per Share to the Legacy Fund for total merger consideration of $68,065,767 as part of this Formation Transaction.

The Company is currently conducting a continuous private offering (the "Private Offering"). Subscriptions will be effective only upon our acceptance, and we reserve the right to reject any subscription in whole or in part. All purchases will be made at a purchase price equal to the then-current net asset value (the “NAV”) per Share, as determined by the Board or its appropriate committee 48 hours prior to closing.

Key Components of Our Results of Operations

Investments

We invest primarily in floating rate senior secured term loans used to finance the continued growth and expansion of predominantly U.S.-based companies that are likely to be sponsored by venture capital, private equity or family office firms.

The Company’s level of investment activity can and is expected to vary substantially from period to period depending on many factors, including the amount of capital available to target portfolio companies, the general economic environment, and the competitive environment for the type of investments we make.

Revenues

The Company generates revenue primarily in the form of current income from its debt investments as well as capital appreciation from equity and equity-related securities, such as warrants.

Expenses

Operating Expenses

The Investment Adviser shall bear its own costs incurred in providing investment advisory services to the Company, including all personnel expenses. The Company will be responsible for all costs and expenses relating to the Company’s activities, investments and ongoing business, including:

•

all costs and expenses attributable to acquiring or originating, holding, and disposing of investments (including, without limitation, the fees and expenses of outside counsel, accountants, consultants, experts and other third party service providers);

•

the actual costs incurred by the Investment Adviser on behalf of the Company for office space rental, office equipment, utilities and other non-compensation related overhead allocable to performance of investment advisory services, including the costs and expenses of monitoring performance of the Company’s investments, serving as directors and officers of portfolio companies, enforcing the Company’s rights in respect of its investments, valuation, pricing and monitoring services, research expenses (including market data, research analytics and news feeds), rating expenses, origination fees, loan servicing, loan administration, due diligence expenses, investment banking and finders’ fees, appraisal fees, clearing and settlement charges, brokerage fees, custodial fees, stamp and transfer taxes, hedging costs, travel expenses, broken deal expenses, and expenses associated with developing, licensing, implementing, maintaining or upgrading web portal, website, extranet tools, computer software (including accounting, investor tracking, investor reporting, ledger systems, financial management and cybersecurity) or other administrative or reporting tools (including subscription-based services) for the benefit of the Company;

•

legal, accounting, auditing, banking, consulting, and other fees and expenses, including reimbursement to the Investment Adviser for the cost of specific services provided by the Investment Adviser or its affiliates, which would otherwise be provided by third party experts such as tax and legal services;

•

all reasonable out-of-pocket fees and expenses incurred by the Company, the Investment Adviser, or their respective affiliates, partners, agents, officers, and employees relating to the investigation of investment, syndication, and investment repayment opportunities for the Company, whether or not consummated, and the fees and expenses of due diligence associated therewith;

•

the fees payable to the Investment Adviser, or any of their respective affiliates for services provided, including the base management fee and incentive fee;

•

fees and expenses related to the Company’s borrowings;

•

any taxes, fees, and other governmental charges levied against the Company; and

•

all other expenses incurred by the Investment Adviser or any of its affiliates in connection with administering the Company’s business, including expenses incurred by the Investment Adviser, or any of its affiliates in performing administrative services for the Company, the allocable portion of the compensation and overhead of administrative personnel of the Investment Adviser or any of its affiliates or paid by the Investment Adviser or any of its affiliates, and the cost of any third-party service providers engaged to assist the Investment Adviser or any of its affiliates with the provision of administrative services for the Company or on the Company’s behalf.

Expense Support and Conditional Reimbursement Agreement

The Company has entered into an expense support and conditional reimbursement agreement (the “Expense Support Agreement”) with the Investment Adviser. The Expense Support Agreement provides that, at such times as the Investment Adviser determines, the Investment Adviser may pay certain expenses of the Company, provided that no portion of the payment will be used to pay any interest expense of the Company (each, an “Expense Payment”). Such Expense Payment will be made in any combination of cash or other immediately available funds no later than forty-five days after a written commitment from the Investment Adviser to pay such expense, and/or by an offset against amounts due from the Company to the Investment Adviser or its affiliates related to expenses that are reimbursable by the Company pursuant to the Investment Advisory Agreement. Any payments required to be made by the Company pursuant to the Expense Support Agreement is referred to as a “Reimbursement Payment.”

The reimbursement of any Expense Payments by the Company shall be based on capital raised, and will be payable at four separate milestones, subject to certain conditions. Once $100 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $125 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $150 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Once $175 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Notwithstanding the foregoing, in no event shall the aggregate amount to be reimbursed to the Investment Adviser exceed $500,000. Any Expense Payment in excess of $500,000 will be borne by the Investment Adviser. The Investment Adviser may waive its right, in its sole discretion, to receive the Reimbursement Payment in any calendar month in which such Reimbursement Payment obligation is accrued.

As of June 30, 2026 and December 31, 2025, the Investment Adviser has incurred $344,874 of organization costs and $155,126 of offering costs prior to the Commencement of Operations that will be payable by the Company when the Company has reached the milestones of capital raised from external subscribers as described above. Milestone 1 was achieved as of October 1, 2025. Milestone 2 was achieved as of January 2, 2026. The offering costs are deferred and will be amortized over 12 months beginning October 1, 2025 and January 1, 2026 for the achievement of Milestone 1 and Milestone 2, respectively. As of June 30, 2026, achievement of Milestone 3 was deemed probable based on subscriptions from external subscribers. Accordingly, reimbursement of organization and offering costs was deemed probable as of June 30, 2026, and therefore, the Company has recorded a liability of $150,000 payable to the Investment Adviser as of June 30, 2026. As of and for the period ended June 30, 2026, $31,025 of deferred offering costs has been amortized and $69,807 remains recorded in prepaid expenses and other assets on the consolidated statement of assets and liabilities. As of and for the period from the Commencement of Operations through June 30, 2025, no deferred offering costs were amortized or recorded in prepaid expenses and other assets on the consolidated statements of assets and liabilities. No organizational and offering costs were incurred by the Company during the three and six months ended June 30, 2026 and the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025.

Portfolio and Investment Activity

As of June 30, 2026, the fair value of our investments was approximately $235,487,656. For the three and six months ended June 30, 2026, the Company acquired $55.8 million and $67.0 million aggregate principal amount of investments, which includes $2.4 million and $3.1 million of equity investments, respectively.

For the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, the Company acquired $21.8 million and $34.8 million aggregate principal amount of investments.

The composition of the acquired investment portfolio at cost and fair value was as follows:


	March 3, 2025
	Cost		Fair Value		% of Total Investments at Fair Value
First lien senior secured term loans	$	38,604,265	$	38,604,265		93.2	%
Warrants		2,808,033		2,808,033		6.8	%
Total	$	41,412,298	$	41,412,298		100.0	%

The industry composition of the acquired investment portfolio at cost and fair value was as follows:


	March 3, 2025
	Cost		Fair Value		% of Total Investments at Fair Value
Education	$	5,894,685	$	5,894,685		14.2	%
Food & Beverage		2,971,281		2,971,281		7.2	%
Health & Wellness		12,652,726		12,652,726		30.5	%
Technology – Aerospace		4,458,657		4,458,657		10.8	%
Technology – Business		8,485,437		8,485,437		20.5	%
Technology – Consumer		4,009,478		4,009,478		9.7	%
Technology – Health & Wellness		2,940,034		2,940,034		7.1	%
Total	$	41,412,298	$	41,412,298		100.0	%

Our investment activity for the three months ended June 30, 2026 and 2025 is presented below:


	June 30, 2026			June 30, 2025
Investments:
Total fair value of investments, beginning of period	$	187,979,431		$	54,305,939
Payments for purchases of investments in portfolio companies		55,793,563			21,800,000
Principal increase related to MOIC rollover		—			—
Paid-in-kind interest income		106,197			9,050
Proceeds from loan repayments on investments in portfolio companies		(7,441,048	)		(1,009,375	)
Proceeds from deferred loan fees		(833,738	)		(307,000	)
Amortization of deferred loan fees and prepaid agency fees		404,239			104,638
Accretion of warrant discount		799,017			399,032
Net change in unrealized (gain) loss on non-controlled / non-affiliated investments		(1,240,281	)		1,086,380
Net change in unrealized (gain) loss on non-controlled / affiliated investments		(79,724	)		—
Total Fair Value of Investments, End of Period	$	235,487,656		$	76,388,664

Number of portfolio companies		45			15

Our investment activity for the six months ended June 30, 2026 and the period from the Commencement of Operations through June 30, 2025 is presented below:


	For the Six Months Ended June 30, 2026			For the period from the Commencement of Operations through June 30, 2025
Investments:
Total fair value of investments, beginning of period	$	185,613,878		$	-
Investments acquired from the Legacy Fund		—			41,412,298
Payments for purchases of investments in portfolio companies		67,010,231			34,800,000
Principal increase related to MOIC rollover		720,000			—
Paid-in-kind interest income		220,217			10,566
Proceeds from loan repayments on investments in portfolio companies		(18,448,217	)		(1,118,750	)
Proceeds from deferred loan fees		(956,738	)		(469,500	)
Amortization of deferred loan fees and prepaid agency fees		825,400			140,573
Accretion of warrant discount		3,067,914			538,406
Net change in unrealized (gain) loss on non-controlled / non-affiliated investments		(2,485,305	)		1,075,071
Net change in unrealized (gain) loss on non-controlled / affiliated investments		(79,724	)		—
Total Fair Value of Investments, End of Period	$	235,487,656		$	76,388,664

Number of portfolio companies		45			15

The composition of the investment portfolio at cost and fair value consisted of the following:


	June 30, 2026							December 31, 2025
	Cost		Fair Value		% of Total Investments at Fair Value			Cost		Fair Value		% of Total Investments at Fair Value
First lien senior secured term loans	$	217,529,477	$	216,706,457		92.0	%	$	165,755,050	$	167,303,857		90.1	%
Second lien senior secured term loans		4,454,058		4,454,058		1.9	%		9,605,804		9,605,804		5.2	%
Equity		3,066,668		3,066,668		1.3	%		-		-		—
Warrants		11,146,573		11,260,473		4.8	%		8,397,115		8,704,217		4.7	%
Total	$	236,196,776	$	235,487,656		100.0	%	$	183,757,969	$	185,613,878		100.0	%

The industry composition of investments at cost and fair value was as follows:


	June 30, 2026							December 31, 2025
	Cost		Fair Value		% of Total Investments at Fair Value			Cost		Fair Value		% of Total Investments at Fair Value
Application Software	$	17,071,053	$	16,943,281		7.2	%	$	10,201,918	$	10,184,487		5.5	%
Automotive Services		1,994,498		1,994,498		0.8	%		1,193,420		1,193,420		0.6	%
Business Services		29,207,036		28,929,319		12.3	%		22,648,734		22,648,734		12.2	%
Consumer Discretionary		6,637,392		6,655,955		2.8	%		-		-		—
Consumer Finance		7,974,939		8,057,603		3.4	%		3,985,680		3,996,494		2.2	%
Consumer Services		2,436,855		2,436,855		1.0	%		2,393,090		2,393,090		1.3	%
Data Processing		8,941,795		9,562,163		4.1	%		18,393,085		19,558,615		10.6	%
Ecommerce – CPG		17,961,916		18,392,534		7.8	%		17,618,056		17,618,056		9.5	%
Ecommerce – Apparel		11,142,420		11,068,166		4.7	%		11,100,234		11,100,234		6.0	%
Education		7,934,672		7,886,663		3.3	%		7,892,849		7,854,920		4.2	%
Food & Beverage		15,380,250		15,443,900		6.6	%		2,983,750		3,047,400		1.6	%
Health & Wellness		15,751,903		16,353,350		7.1	%		13,025,430		14,062,825		7.6	%
Technology – Aerospace		5,125,238		5,397,884		2.3	%		3,354,590		3,377,019		1.8	%
Technology – Agriculture		3,124,189		3,124,189		1.3	%		3,118,623		3,118,623		1.7	%
Technology – Business		18,521,090		18,238,736		7.7	%		15,529,561		15,554,042		8.4	%
Technology – Communication		3,946,463		3,946,463		1.7	%		2,750,038		2,750,038		1.5	%
Technology – Consumer		13,832,005		12,617,905		5.4	%		6,264,345		6,020,281		3.2	%
Technology – Cybersecurity		5,786,947		5,985,296		2.5	%		9,552,539		9,552,539		5.1	%
Technology – Health & Wellness		15,236,778		14,894,759		6.3	%		9,249,642		9,080,676		4.9	%
Technology – Marketplace		13,436,621		12,805,421		5.4	%		13,198,711		13,198,711		7.1	%
Technology – Property		4,386,304		4,386,304		1.9	%		2,402,326		2,402,326		1.3	%
Transportation		10,366,412		10,366,412		4.4	%		6,901,348		6,901,348		3.7	%
Total	$	236,196,776	$	235,487,656		100.0	%	$	183,757,969	$	185,613,878		100.0	%

The geographic composition of investments at cost and fair value was as follows:


	June 30, 2026									December 31, 2025
	Cost				Fair Value		% of Total Investments at Fair Value			Cost		Fair Value		% of Total Investments at Fair Value
United States
Mid-Atlantic	$	13,737,611	$	—	$	13,762,092		5.8	%	$	13,586,398	$	13,610,879		7.3	%
Midwest		35,585,072	$	—		36,713,421		15.6	%		28,817,443		30,926,505		16.7	%
Mountain		19,399,312	$	—		19,665,317		8.4	%		14,996,337		15,082,416		8.1	%
Northeast		53,274,457	$	—		52,277,269		22.2	%		27,953,166		27,709,102		14.9	%
Southwest		30,042,655	$	—		29,422,920		12.5	%		23,974,471		23,805,505		12.8	%
West		68,062,007	$	—		67,857,810		28.8	%		61,942,639		61,991,956		33.4	%
International
British Virgin Islands		666,668				666,668		0.3	%		0		0		—
Canada		1,033,472				1,033,472		0.4	%		1,018,769		1,018,769		0.5	%
Germany		14,395,522				14,088,687		6.0	%		11,468,746		11,468,746		6.2	%
Total	$	236,196,776			$	235,487,656		100	%	$	183,757,969	$	185,613,878		100	%

Portfolio Asset Quality

Portfolio management and reporting.

The Investment Adviser monitors our portfolio companies on an ongoing basis, including financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action with respect to each portfolio company. In connection with evaluating and monitoring the performance and fair value of our investments, the Investment Adviser may take one or more of the following actions, among others:

•

assessment of success of the portfolio company in adhering to its business plan, underwriting expectations, and financial projections;

•

periodic and regular contact with portfolio company management to discuss financial position, requirements and accomplishments;

•

participation at Board meetings through a designated seat or as an observer;

•

comparisons to other companies in the portfolio company’s industry; and

•

review of monthly or quarterly financial statements and financial metrics for portfolio companies.

The Company will maintain a “hands on” approach to communication with the portfolio companies. At least quarterly, and often monthly, the Company will receive financial reports from the portfolio companies and track performance relative to prior periods. Using this data, the Company will use a credit rating system to analyze the quality of its debt investments on a quarterly basis. Each portfolio company will be rated on a scale between 1 and 5. A rating of 4 represents the rating for a standard level of risk; this rating will be assigned to all portfolio companies at inception of the initial investment. A rating of 5 represents an improved and better credit quality than existed at the time of its original underwriting. A rating of 3 indicates that the borrower is exhibiting some underperformance in one or more key operating metrics but the overall credit quality and risk of loss of principal is deemed low. The Company expects most portfolio companies to be rated a 4 or a 3 while active borrowers. A rating of 2 or 1 represents a deteriorating credit quality and an increased risk of loss of principal.

The Company will closely monitor all portfolio companies, but especially those rated a 1 or 2, for adverse developments. In addition, the Company will maintain regular contact with the management, board of directors, and/or major equity holders of these portfolio companies in order to discuss strategic initiatives to correct the deterioration of the portfolio company.

LAGO Proprietary Credit Rating System

The borrower is outperforming revenue milestones, operating milestones and other operating metrics, or has achieved a size in considerable excess relative to that at position inception, or has raised, or is expected to raise, additional capital in excess of the Company’s underwriting assumptions. Generally, when a borrower is in this category, its enterprise value likely greatly exceeds its loan balance (LTV <= 20%), it may have cash flow positive operations or sufficient cash resources to cover the remaining balance of the loan, there is strong potential for warrant gains, and there is a high likelihood that the borrower will receive favorable future financing to support operations. There is no principal loss expected.

The borrower is a new portfolio company, and/or it is achieving revenue milestones, operating milestones and other operating metrics generally as expected, or has raised, or is expected to raise, additional capital as expected, if deemed necessary. Generally, when a borrower is in this category, its enterprise value likely comfortably exceeds its loan balance (LTV <= 40%), it has sufficient cash resources over the near to medium term or has the ability to raise additional capital as needed, and there continues to be potential for warrant gains. There is no principal loss expected.

The borrower has repeated material underperformance in achieving revenue milestones, operating milestones and other operating metrics, or has materially delayed or underperformed in raising additional capital as expected, if deemed necessary. Generally, when a borrower is in this category, its enterprise value likely still comfortably exceeds its loan balance (LTV <=60%), it has sufficient cash resources over the near to medium term or has the ability to raise additional capital as needed, and there continues to be some potential for warrant gains. There is no principal loss expected.

The borrower has significantly underachieved expected revenue milestones, operating milestones and other operating metrics, or has raised, or is expected to raise, less capital than expected under less desirable terms, if deemed necessary. Generally, when a borrower falls in this category, its enterprise value likely exceeds its loan balance, but with a higher variance and a level with significantly lower equity cushion than expected (LTV <=80%), its liquidity and ability to raise additional capital is significantly less than desired, and it is unlikely that there will be warrant gains. There is no or minimal current loss expected and low-to-moderate potential for future principal loss.

The borrower’s performance is well below expectations across revenue and operating metrics; its ability to arrest declining performance is doubtful; and has likely not raised sufficient capital to operate effectively or retire its debt obligation to the Company. Generally, when a borrower falls in this category, its enterprise value may not exceed its loan balance (LTV > 80%), it is likely to have insufficient cash to operate according to its plan over the near to medium term and its ability to raise additional capital is questionable, and there is no potential for warrant gains. There is a high degree of risk of principal loss.

The following table shows the distribution of our loan investments on the 1 to 5 investment risk rating scale range at fair value:


	June 30, 2026					December 31, 2025
Investment Risk Rating	Fair Value		% of Total Debt Investments at Fair Value			Fair Value		% of Total Debt Investments at Fair Value
1	$	—		—		$	—		—
2		5,169,677		2.3	%		—		—
3		2,596,602		1.2	%		—		—
4		169,668,445		76.7	%		176,909,661		100.0	%
5		43,725,791		19.8	%		—		—
Total	$	221,160,515		100.0	%	$	176,909,661		100.0	%

Debt Investments on Non-Accrual Status

When a debt security becomes 90 days or more past due, and/or if our management otherwise does not expect that principal, interest, and other obligations due will be collected in full, we will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or we believe the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, we may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection.

As of June 30, 2026 and December 31, 2025, no loans to portfolio companies were on non-accrual status.

Results of Operations

The following table represents the operating results for the three months ended June 30, 2026 and 2025:


	For the Three Months Ended June 30, 2026			For the Three Months Ended June 30, 2025
Total investment income	$	8,436,961		$	2,848,020
Net expenses		3,467,936			1,383,201
Net investment income		4,969,025			1,464,819
Net change in unrealized gain (loss)		(1,320,005	)		1,086,380
Net realized gain (loss)		-			-
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,649,020		$	2,551,199

The following table represents the operating results for the six months ended June 30, 2026 and the period from the Commencement of Operations through June 30, 2025:


	For the Six Months Ended June 30, 2026			For the period from the Commencement of Operations through June 30, 2025
Total investment income	$	18,681,635		$	3,695,789
Net expenses		6,702,810			1,808,001
Net investment income		11,978,825			1,887,788
Net change in unrealized gain (loss)		(2,565,029	)		1,075,071
Net realized gain (loss)		-			-
Net Increase (Decrease) in Net Assets Resulting from Operations	$	9,413,796		$	2,962,859

Net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including the level and type of new investment commitments, expenses, the recognition of realized gains and losses, and changes in unrealized gains and losses on the investment portfolio. As a result, comparisons may not be meaningful.

Investment Income

Investment income for the three months ended June 30, 2026 and 2025 was as follows:


	June 30, 2026		June 30, 2025
From non-controlled / non-affiliated investments:
Interest income	$	6,533,265	$	2,106,894
OID accretion		402,550		98,908
PIK interest		106,197		9,048
Fee income		128,750		-
Warrant accretion		787,526		399,032
Amendment fee accretion		7,924		5,731
Total from non-controlled / non-affiliated investments:		7,966,212		2,619,613
From non-controlled / affiliated investments:
Interest income		410,990		-
OID accretion		4,560		-
Warrant accretion		11,491		-
Total from non-controlled / affiliated investments:		427,041		-
Other interest income		43,708		228,407
Total Investment Income	$	8,436,961	$	2,848,020

Investment income for the six months ended June 30, 2026 and the period from the Commencement of Operations through June 30, 2025 was as follows:


	For the Six Months Ended June 30, 2026		For the period from the Commencement of Operations through June 30, 2025
From non-controlled / non-affiliated investments:
Interest income	$	13,208,526	$	2,739,409
OID accretion		832,914		132,752
PIK interest		220,217		10,564
Fee income		848,750		-
Warrant accretion		3,056,423		538,406
Amendment fee accretion		15,845		7,822
Total from non-controlled / non-affiliated investments:		18,182,675		3,428,953
From non-controlled / affiliated investments:
Interest income		410,990		-
OID accretion		4,560		-
Warrant accretion		11,491		-
Total from non-controlled / affiliated investments:		427,041		-
Other interest income		71,919		266,836
Total Investment Income	$	18,681,635	$	3,695,789

For the three months ended June 30, 2026 and 2025, total investment income was $8,436,961 and $2,848,020, respectively, the majority of which was driven by interest income on the senior secured term loan investments.

For the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025, total investment income was $18,681,635 and $3,695,789, respectively, the majority of which was driven by interest income on the senior secured term loan investments.

For the three months ended June 30, 2026 and 2025, total investment income excluding accretion from warrant investments and non-recurring fee income was $7,594,236 and $2,220,581, respectively, which represents an effective cash yield of 15.2% and 7.5%, respectively, on the weighted average unpaid principal of investments during the period. For the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025, total investment income excluding accretion from warrant investments and non-recurring fee income, was $14,821,802 and $2,890,547, respectively, which represents an effective cash yield of 15.6% and 10.0%, respectively, on the weighted average unpaid principal of investments during the periods. The effective cash yield excludes the impact of warrant accretion and non-recurring fee income, and is annualized for the quarter. The effective cash yield of our income producing investments is not the same as a return on investment for our shareholders but, rather, relates to our investment portfolio and is calculated before the payment of all of our fees and expenses. There can be no assurance that the effective yield will remain at its current level.

Expenses

Total expenses for the three months ended June 30, 2026 and 2025 were as follows:


	June 30, 2026			June 30, 2025
Interest expense	$	1,352,468		$	228,934
Base Management Fees		802,436			247,544
Income Incentive Fees		855,326			295,924
Capital Gains Incentive Fees		(122,177	)		212,085
Professional fees		263,671			264,547
Board of Trustees’ expense		38,000			39,322
Administration fees		60,717			65,510
Reimbursement of organizational expenses paid by the Investment Adviser		103,462			—
Amortization of deferred offering costs		15,513			—
Other general and administrative expenses		98,520			29,335
Total expenses	$	3,467,936		$	1,383,201

Total expenses for the six months ended June 30, 2026 and for the period from the Commencement of Operations through June 30, 2025 were as follows:


	For the Six Months Ended June 30, 2026			For the period from the Commencement of Operations through June 30, 2025
Interest expense	$	2,534,867		$	313,357
Base Management Fees		1,510,453			305,002
Income Incentive Fees		2,048,484			370,164
Capital Gains Incentive Fees		(371,182	)		209,823
Professional fees		502,768			403,643
Board of Trustees’ expense		77,580			77,322
Administration fees		112,785			88,839
Reimbursement of organizational expenses paid by the Investment Adviser		103,462			—
Amortization of deferred offering costs		31,025			—
Other general and administrative expenses		152,568			39,851
Total expenses	$	6,702,810		$	1,808,001

Pursuant to the Investment Advisory Agreement with the Investment Adviser, the Company pays the Investment Adviser a fee for its services under the Investment Advisory Agreement consisting of two components – a base management fee (“Base Management Fee”) and an incentive fee (the “Incentive Fee”). The cost of both the base Management Fee and the Incentive Fee will ultimately be borne by the shareholders.

Management Fees

For the three and six months ended June 30, 2026, Base Management Fees were $802,436 and $1,510,453, respectively. For the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, Base Management Fees were $247,544 and $305,002, respectively. Management fees are payable quarterly in arrears at an annual rate of 1.50% of the Company’s average adjusted gross assets. The average adjusted gross asset balance will be the average of the Company’s total gross assets (including assets acquired with leverage but adjusted to exclude cash and cash equivalents) at the end of the two most recently completed calendar quarters.

Incentive Fees

For the three and six months ended June 30, 2026, Incentive Fees were $733,149 and $1,677,302, respectively. For the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, Incentive Fees were $508,008 and $579,987, respectively. Pursuant to the Investment Advisory Agreement, the Company pays the Investment Adviser an Incentive Fee consisting of two parts: (i) an income incentive fee, determined and paid quarterly, based on pre-incentive fee net investment income of the Company (the “Income Incentive Fee”) and (ii) a capital gains incentive fee, determined and paid in arrears, based on net capital gains as of the end of each calendar year or upon the termination of the Investment Advisory Agreement (the “Capital Gains Incentive Fee”), which are described in more detail at Note 3 – Agreements and Related Party Transactions.

Other Expenses

Professional fees include legal, audit, tax, and valuation fees incurred related to the management and reporting of the Company. Administration fees include transfer agent and legal administration services. Other general and administrative expenses include custody fees and insurance costs.

The Company entered into an Expense Support and Conditional Reimbursement Agreement with the Investment Adviser. For additional information, see Note 3 – Agreements and Related Party Transactions.

Income Taxes

The Company qualifies and has elected to be treated as a RIC under Subchapter M of the Code. To qualify and be subject to tax as a RIC for U.S. federal income tax purposes, the Company will need to ensure that (among other things) it satisfies certain sources of income and asset diversification requirements and distributes to its shareholders annually an amount equal to at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess, if any, of its realized net short-term capital gains over its realized net long-term capital losses. If we do not distribute (or are not deemed to have distributed) at least 98% of our annual ordinary income and 98.2% of our capital gain net income for the 1-year period ending on October 31 of such calendar year, we will generally be required to pay excise tax equal to 4% of the amount by which 98% of our annual ordinary income and 98.2% of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated undistributed taxable income.

For the three and six months ended June 30, 2026, the six months ended June 30, 2025, and for the period from the Commencement of Operations through June 30, 2025, the Company did not incur any U.S. federal income taxes.

Net Change in Unrealized Gain (Loss)

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. Net change in unrealized gain (loss) was composed of the following:


	June 30, 2026			June 30, 2025
Net change in unrealized gain (loss) on non-controlled / non-affiliated investments	$	(1,240,281	)	$	1,086,380
Net change in unrealized gain (loss) on non-controlled / affiliated investments		(79,724	)		—
Net Change in Unrealized Gain (Loss) on Investments	$	(1,320,005	)	$	1,086,380


	For the Six Months Ended June 30, 2026			For the period from the Commencement of Operations through June 30, 2025
Net change in unrealized gain (loss) on non-controlled / non-affiliated investments	$	(2,485,305	)	$	—
Net change in unrealized gain (loss) on non-controlled / affiliated investments		(79,724	)		1,075,071
Net Change in Unrealized Gain (Loss) on Investments	$	(2,565,029	)	$	1,075,071

The net change in unrealized gains (losses) for the three and six months ended June 30, 2026 was due to the depreciation of value in the Company’s portfolio investments. The net change in unrealized gains (losses) for the six months ended June 30, 2026 included the reversal of a previously recorded $1.2 million unrealized gain related to the Company's first lien senior secured term loan investment in AI Software, LLC d/b/a/ Capacity, which paid off in February 2026. The The net change in unrealized gains (losses) for the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025 was due to the appreciation of value in the Company’s portfolio investments.

Financial Condition, Liquidity and Capital Resources

The Company generates cash primarily from the proceeds of any offering of Shares and from cash flows from proceeds from sales of its investments. It may also fund a portion of its investments with borrowings under the KeyBank Credit Facility, and issuances of senior securities, including before it has fully invested the proceeds of the Private Offering. The primary use of cash will be investments in portfolio companies, payments of expenses and payment of cash distributions to shareholders. As of June 30, 2026, $11,927,804 was available to be drawn under the KeyBank Credit Facility.

Net Assets

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, which represented all of the issued and outstanding Shares of the Company, at an offering price of $25.00 per Share for an aggregate purchase price of $25,000. On March 3, 2025, as a result of the Formation Transaction, the equity interests of the Legacy Fund held by the Legacy Fund Members were exchanged for Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members.

The following table sets forth Share issuances life-to-date through the period ended June 30, 2026.


	NAV		Shares		Amount
December 31, 2024	$	25.00		1,000	$	25,000
March 3, 2025	$	25.00		2,722,631	$	68,065,767
April 1, 2025	$	25.01		650,150	$	16,260,250
July 1, 2025	$	25.27		495,706	$	12,526,500
October 1, 2025	$	25.31		818,076	$	20,705,500
January 2, 2026	$	25.41		538,390	$	13,680,500
April 1, 2026	$	25.60		406,092	$	10,395,950
July 1, 2026	$	25.37		666,496	$	16,909,000

Distributions


Declaration Date	Type	Record Date	Payment Date	Per Share Amount		Dividend Paid
March 3, 2025	(a)	March 3, 2025	March 20, 2025	(a)		$	832,648
March 27, 2025	Quarterly	March 31, 2025	April 15, 2025	$	0.14	$	381,308
June 27, 2025	Quarterly	June 30, 2025	July 16, 2025	$	0.50	$	1,686,890
September 29, 2025	Quarterly	September 30, 2025	October 16, 2025	$	0.68	$	2,631,251
December 23, 2025	Quarterly	December 31, 2025	January 13, 2026	$	0.84	$	3,937,553
March 30, 2026	Quarterly	March 31, 2026	April 16, 2026	$	0.92	$	4,807,876
June 30, 2026	Quarterly	June 30, 2026	July 15, 2026	$	0.87	$	4,899,879

The Company acquired a distribution payable of $832,648 in association with the Formation Transaction.

See Note 8 – Net Assets.

Share Repurchase Program

Two years after the date on which the Company commences the Private Offering, and at the discretion of the Board, the Company intends to commence a share repurchase program in which it intends to repurchase annually up to 10% of outstanding Shares (by number of Shares). Under the share repurchase program, to the extent the Company offers to repurchase Shares during an annual period, the Company expects to repurchase Shares pursuant to tender offers as of the applicable quarter-end using a purchase price equal to the NAV per Share as of the last calendar day of the applicable quarter, except that Shares that have not been outstanding for at least one year will be repurchased at 98% of such NAV (an “Early Repurchase Deduction”). Any early Repurchase Deduction will be retained by the Company for the benefit of remaining shareholders.

The Company did not make any Share repurchases for the three and six months ended June 30, 2026, the three months ended June 30, 2025, or from the period from the Commencement of Operations through June 30, 2025.

Borrowings

Reduced Asset Coverage Requirements

In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock, if immediately after the borrowing or issuance, the ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. On February 27, 2025, our Board of Trustees, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) and our initial shareholder approved the application to us of the 150% minimum asset coverage ratio set forth in Section 61(a)(2) of the 1940 Act. As a result, we are permitted to potentially borrow $2 for investment purposes of every $1 of investor equity. As of June 30, 2026, our asset coverage ratio was approximately 254%. Our asset coverage ratio per unit, which is calculated by multiplying the asset coverage ratio by one thousand, was approximately $2,538.

The Company has entered into a Loan and Security Agreement with the KeyBank National Association, as syndication agent, as agent for the lenders and as the lender, (the "KeyBank Credit Agreement"), under which the Company established a $125,000,000

revolving line of credit to provide leverage to the Company. The line of credit has a maturity date of February 28, 2030. Borrowings under the KeyBank Credit Agreement generally bear interest at a rate equal to Term SOFR plus 3.25% to 4.00%, subject to the number of eligible loans in the collateral pool. Under the terms of the credit agreement, the Company is subject to several covenants. As of June 30, 2026 and December 31, 2025, the Company was in compliance with these covenants. The line of credit provides for advances that range from 45% to 55%, subject to the number of eligible loans in the collateral pool, on eligible loans held by the Company, as defined under KeyBank Credit Agreement.

The Company had average gross outstanding borrowings of $65,718,572 and $60,010,192 for the three and six months ended June 30, 2026, respectively. The Company had average gross outstanding borrowing of $1,241,758 and $1,449,383 for the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, respectively. Additionally, the Company incurred $108,048, at a rate of 0.70%, and $240,645, at a rate of 0.72%, for the three and six months ended June 30, 2026, respectively. The Company incurred unused borrowing fees of $139,833 and $188,484, at a rate of 0.75%, for the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, respectively. During the three and six months ended June 30, 2026, the Company incurred $99,524 and $208,796 of debt financing costs, respectively. During the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, the Company incurred $63,757 and $21,252 of debt financing costs, respectively. The interest expense, unused borrowing fees, and debt financing costs are included in interest expense and other debt fees on the Consolidated Statement of Operations.

The Company had $92.9 million of gross outstanding borrowings as of June 30, 2026 and did not have any preferred shares issued and outstanding as of June 30, 2026. As of June 30, 2026, the Company was in compliance with the 150% asset coverage requirement under the 1940 Act.

Commitments and Off-Balance Sheet Arrangements

The Company's commitments and contingencies consist primarily of unfunded commitments to extend credit in the form of loans to the Company’s portfolio companies. The Company considers the unfunded commitment in the determination of fair value of the funded portion of the investment, as presented within the Consolidated Schedule of Investments. As of June 30, 2026, the Company had the following commitments to fund delayed draw term loans and revolvers.


Investments	Industry	Type of Investment	Total Committed		Funded		Unfunded1
Clean Connect AI	Application Software	Delayed draw term loan	$	1,500,000	$	-	$	1,500,000
SER Holdco, Inc. d/b/a SE Ranking	Application Software	Delayed draw term loan		3,000,000		2,400,000		600,000
Stress Free Auto Care, Inc.	Automotive Services	Delayed draw term loan		14,800,000		800,000		14,000,000
ADG Technology Inc dba Carry 1st	Business Services	Delayed draw term loan		1,950,000		-		1,950,000
CoreX, Inc.	Business Services	Revolver		12,500		409		12,091
SNA, Inc. dba Safety Net Access	Business Services	Delayed draw term loan		700,000		-		700,000
Koala Eco Company	Consumer Discretionary	Delayed draw term loan		1,940,000		-		1,940,000
Koala Eco Company	Consumer Discretionary	Revolver		12,500		13		12,487
Atlas Exploration, Inc.	Consumer Finance	Delayed draw term loan		18,000,000		6,000,000		12,000,000
Nickey Kehoe Inc.	Consumer Discretionary	Revolver		25,000		-		25,000
Milk + Honey Holdings LLC	Consumer Services	Delayed draw term loan		1,600,000		-		1,600,000
Cleveland Kitchen	Food & Beverage	Delayed draw term loan		2,440,000		-		2,440,000
Cleveland Kitchen	Food & Beverage	Revolver		12,500		7,535		4,965
Epigenetics Labs d/b/a Organixx	Food & Beverage	Delayed draw term loan		500,000		-		500,000
Slate Milk, Inc	Food & Beverage	Delayed draw term loan		3,992,000		-		3,992,000
Slate Milk, Inc	Food & Beverage	Revolver		12,500		4,167		8,333
Happy Head, Inc.	Health & Wellness	Delayed draw term loan		2,000,000		-		2,000,000
Fortem Technologies, Inc.	Technology – Aerospace	Delayed draw term loan		5,000,000		2,000,000		3,000,000
CamoAg Inc.	Technology – Agriculture	Delayed draw term loan		700,000		-		700,000
Hearth Display, Inc.	Technology – Consumer	Delayed draw term loan		16,000,000		2,000,000		14,000,000
Predictive Fitness, Inc.	Technology – Health & Wellness	Delayed draw term loan		3,000,000		-		3,000,000
Tapestry Management Services Inc.	Technology – Health & Wellness	Delayed draw term loan		3,500,000		-		3,500,000
Stake Network Inc	Technology – Property	Delayed draw term loan		2,450,000				2,450,000
Spotter Labs Inc.	Transportation	Delayed draw term loan		10,500,000		3,500,000		7,000,000
Total			$	93,647,000	$	16,712,124	$	76,934,876

The unfunded delayed draw term loans may or may not be funded to the borrowing party in the future. These unfunded contractual commitments are generally at the Company's discretion and/or are dependent upon the portfolio company meeting certain performance obligations before the debt commitment becomes available to be drawn. Furthermore, the Company’s credit agreements contain customary lending provisions that allow the Company relief from funding obligations for previously made commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the Company. As of June 30, 2026, $12.6 million, in aggregate, was available to be drawn upon by eight portfolio companies at their discretion.

As of December 31, 2025, the Company had the following commitments to fund delayed draw term loans, a revolver and an uncommitted accordion.


Investments	Industry	Type of Investment	Total Committed		Funded		Unfunded1
SER Holdco, Inc. d/b/a SE Ranking	Application Software	Delayed draw term loan	$	1,800,000	$	-	$	1,800,000
Stress Free Auto Care, Inc.	Automotive Services	Delayed draw term loan		14,800,000		-		14,800,000
CoreX, Inc.	Business Services	Revolver		12,500		-		12,500
SNA, Inc. dba Safety Net Access	Business Services	Delayed draw term loan		700,000		-		700,000
Atlas Exploration, Inc.	Consumer Finance	Delayed draw term loan		18,000,000		2,000,000		16,000,000
Milk + Honey Holdings LLC	Consumer Services	Delayed draw term loan		1,600,000		-		1,600,000
Epigenetics Labs d/b/a Organixx	Food & Beverage	Delayed draw term loan		500,000		-		500,000
Happy Head, Inc.	Health & Wellness	Delayed draw term loan		2,666,667		-		2,666,667
CamoAg Inc.	Technology – Agriculture	Delayed draw term loan		700,000		-		700,000
Kudo, Inc.	Technology – Communication	Delayed draw term loan		1,200,000		-		1,200,000
Hearth Display, Inc.	Technology – Consumer	Delayed draw term loan		16,000,000		2,000,000		14,000,000
1touch.IO Inc.	Technology – Cybersecurity	Delayed draw term loan		1,600,000		-		1,600,000
Predictive Fitness, Inc.	Technology – Health & Wellness	Delayed draw term loan		3,000,000		-		3,000,000
Tapestry Management Services Inc.	Technology – Health & Wellness	Delayed draw term loan		3,500,000		-		3,500,000
Spotter Labs Inc.	Transportation	Delayed draw term loan		10,500,000		-		10,500,000
Total			$	76,579,167	$	4,000,000	$	72,579,167

The Company will fund future unfunded commitments, if any, from the same sources it uses to fund its investment commitments at the time they are made (which are typically through existing cash and cash equivalents and borrowings under its KeyBank Credit Facility) and maintains adequate liquidity to fund its unfunded commitments through these sources.

From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of our business. As of June 30, 2026 and December 31, 2025, management was not aware of any pending or threatened litigation.

Related Party Transactions

We have entered into business relationships with affiliated or related parties, including the following:


Delaware		33-1867642
(State or other jurisdiction of incorporation or registration)		(I.R.S. Employer Identification No.)

10 S. Wacker Drive, Suite 3540 Chicago, Illinois		60606
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A


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

Consolidated Statements of Assets and Liabilities

Consolidated Statements of Operations

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Item 1. Legal Proceedings

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

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits.

SIGNATURES


Exhibit Number		Description
3.1		Agreement and Declaration of Trust (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 10, filed on March 3, 2025).
3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form 10, filed on March 3, 2025).
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
104		Cover Page Interactive Data File (embedded within the XBRL document)


	LAGO Evergreen Credit

	By:	/s/ Tim Gottfried
		Name: Tim Gottfried
		Title: Chief Executive Officer and Chairman of the Board of Trustees
Date: August 10, 2026


	LAGO Evergreen Credit

	By:	/s/ Todd Knudsen
		Name: Todd Knudsen
		Title: Chief Financial Officer
Date: August 10, 2026