The Company provides debt, including loans, equipment financings and asset based lending to growth-oriented companies, including institutional investor-backed companies, primarily in the United States. The Company’s investment strategy includes making investments consisting primarily of term loans and equipment financings, and, to a lesser extent, working capital loans, equity, and equity-related investments. In addition, the Company may obtain warrants or contingent exit fees at funding from many of its portfolio companies.

Debt Securities

The Company’s debt securities primarily consist of direct investments in interest-bearing secured loans and equipment financings to privately held companies based in the United States. Secured loans are generally secured by a blanket first lien or a blanket second lien on the assets of the portfolio company. Equipment financings typically include a specific asset lien on mission-critical assets as well as a second lien on the assets of the portfolio company. These debt securities typically have a term of between three and five years from the original investment date. Certain of the debt securities are “covenant-lite” loans, which generally are loans that do not have a complete set of financial maintenance covenants and have covenants that are incurrence-based, meaning they are only tested and can only be breached following an affirmative action of the borrower rather than by a deterioration in the borrower’s financial condition. The equipment financings in the investment portfolio generally have fixed interest rates. The secured loans in the investment portfolio generally have floating interest rates subject to interest rate floors. Both equipment financings and secured loans generally include an EOT payment.

The specific terms of each debt security vary depending on the creditworthiness of the portfolio company and the projected value of the financed assets. Companies with stronger creditworthiness may receive an initial period of lower financing factor, which is analogous to an interest-only period on a traditional term loan. Equipment financings may include upfront interim payments and security deposits. Equipment financing arrangements have various structural protections, including customary default penalties, information and reporting rights, material adverse change or investor abandonment provisions, consent rights for any additions or changes to senior debt, and, as needed, intercreditor agreements with cross-default provisions to protect the Company’s second lien positions.

Warrant Investments

In connection with the Company’s debt investments, the Company may receive warrants in the portfolio company. Warrants received in connection with a debt investment typically include a potentially discounted contract price to exercise, and thus, as a portfolio company appreciates in value, the Company may achieve additional investment return from this equity interest. The warrants typically contain provisions that protect the Company as a minority-interest holder, as well as secured or unsecured put rights, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In certain cases, the Company may also obtain follow-up rights in connection with these equity interests, which allow the Company to participate in future financing rounds.

Equity Investments

In specific circumstances, the Company may seek to make direct equity investments in situations where it is appropriate to align the interests of the Company with key management and stockholders of the portfolio company, and to allow for participation in the appreciation in the equity values of the portfolio company. These equity investments are generally made in connection with debt investments. The Company seeks to maintain fully diluted equity positions in its portfolio companies of 5% to 50% and may have controlling equity interests in some instances.

Portfolio Composition

The Company’s portfolio investments are in companies conducting business in a variety of industries. Industry classifications have been updated to a preferred presentation and the prior year has been amended to conform with the new preferred presentation. The following table summarizes the composition of the Company’s portfolio investments by industry at cost and fair value and as a percentage of the total portfolio as of September 30, 2026 and December 31, 2025 (dollars in thousands):


	September 30, 2026										December 31, 2025
	Cost					Fair Value					Cost					Fair Value
Industry	Amount		%			Amount		%			Amount		%			Amount		%
Financial Technology	$	418,058		14.6	%	$	436,330		15.3	%	$	240,871		10.1	%	$	257,327		10.6	%
SaaS		343,261		12.1	%		345,789		12.1	%		222,706		9.3	%		222,659		9.2	%
Medical Devices		320,499		11.3	%		319,046		11.2	%		240,457		10.0	%		242,014		10.0	%
AI Infrastructure		189,156		6.7	%		189,387		6.6	%		22,524		0.9	%		22,650		0.9	%
Other Healthcare Services		165,282		5.8	%		165,259		5.8	%		218,862		9.1	%		221,332		9.2	%
Space Technology		145,717		5.1	%		157,006		5.5	%		123,244		5.1	%		135,903		5.6	%
AI, Automation, & Robotics		147,772		5.2	%		149,915		5.2	%		125,986		5.3	%		127,573		5.3	%
Energy & Resource Technology		132,757		4.7	%		145,305		5.1	%		153,732		6.4	%		173,367		7.2	%
Multi-Sector Holdings(1)		127,517		4.5	%		139,769		4.9	%		43,890		1.8	%		54,602		2.3	%
Marketing, Media, and Entertainment		102,508		3.6	%		100,885		3.5	%		99,642		4.2	%		98,515		4.1	%
Healthcare Technology		107,922		3.8	%		98,538		3.4	%		137,083		5.7	%		127,390		5.3	%
Consumer Products & Services		80,999		2.9	%		96,268		3.4	%		59,153		2.5	%		62,237		2.6	%
Real Estate Technology		111,380		3.9	%		96,021		3.4	%		139,631		5.8	%		127,550		5.3	%
Transportation Technology		90,382		3.2	%		90,731		3.2	%		82,958		3.5	%		80,281		3.2	%
Biotechnology		90,005		3.2	%		90,430		3.2	%		119,343		5.0	%		121,015		5.0	%
Supply Chain Technology		88,170		3.1	%		82,829		2.9	%		99,462		4.1	%		93,897		3.9	%
Insurance Technology		60,289		2.1	%		58,540		2.0	%		107,265		4.5	%		107,749		4.5	%
Connectivity		50,463		1.8	%		44,446		1.6	%		78,500		3.3	%		72,475		2.9	%
Diagnostics & Tools		20,933		0.7	%		19,448		0.7	%		14,156		0.6	%		14,309		0.6	%
Education Technology		16,389		0.6	%		15,302		0.5	%		26,152		1.1	%		19,991		0.8	%
Food and Agriculture Technologies		1,621		0.1	%		9,992		0.3	%		6,419		0.3	%		14,711		0.6	%
Digital Assets		5,985		0.2	%		6,186		0.2	%		5,917		0.2	%		5,917		0.2	%
Construction Technology		4,660		0.2	%		302		—	%		9,444		0.4	%		1,947		0.1	%
Industrials		347		—	%		7		—	%		2,266		0.1	%		1,252		0.1	%
Human Resource Technology		17,220		0.6	%		1		—	%		17,220		0.7	%		11,412		0.5	%
Total	$	2,839,292		100.0	%	$	2,857,732		100.0	%	$	2,396,883		100.0	%	$	2,418,075		100.0	%

(1)

Multi-Sector Holdings generally invest or manage investments in secured loans and equipment financings to growth-oriented companies that have been originated by the Company. The portfolio companies held by the Multi-Sector Holdings represent a diverse set of industry classifications, which are similar to those in which the Company invests directly.

The geographic composition of the Company's investment portfolio is determined by the location of the corporate headquarters of the portfolio company. The following table summarizes the composition of the Company’s portfolio investments by geographic region of the United States and other countries at cost and fair value and as a percentage of the total portfolio as of September 30, 2026 and December 31, 2025 (dollars in thousands):


	September 30, 2026										December 31, 2025
	Cost					Fair Value					Cost					Fair Value
Geographic Region	Amount		%			Amount		%			Amount		%			Amount		%
United States:
West	$	683,397		24.0	%	$	708,881		24.7	%	$	675,896		28.2	%	$	710,369		29.4	%
Northeast		609,746		21.5	%		602,876		21.1	%		619,019		25.8	%		610,521		25.2	%
Mountain		345,917		12.2	%		355,245		12.4	%		207,573		8.7	%		213,305		8.8	%
South		352,305		12.4	%		348,673		12.2	%		309,040		12.9	%		307,262		12.7	%
Southeast		252,826		8.9	%		241,622		8.5	%		189,725		7.9	%		183,232		7.6	%
Midwest		227,805		8.0	%		222,630		7.8	%		184,707		7.7	%		172,917		7.2	%
Multi-Sector Holdings (1)		98,217		3.5	%		110,552		3.9	%		43,270		1.8	%		54,016		2.2	%
International:
Western Europe		161,114		5.7	%		160,829		5.7	%		109,616		4.6	%		111,261		4.6	%
Canada		107,965		3.8	%		106,424		3.7	%		58,037		2.4	%		55,192		2.3	%
Total	$	2,839,292		100.0	%	$	2,857,732		100.0	%	$	2,396,883		100.0	%	$	2,418,075		100.0	%

(1)

Multi-Sector Holdings generally invest or manage investments in secured loans and equipment financings to growth-oriented companies that have been originated by the Company. The portfolio companies held by the Multi-Sector Holdings represent a diverse set of geographical classifications, which are similar to those in which the Company invests directly.

The following table summarizes the composition of the Company’s portfolio investments by investment type at cost and fair value and as a percentage of the total portfolio as of September 30, 2026 and December 31, 2025 (dollars in thousands):


	September 30, 2026										December 31, 2025
	Cost					Fair Value					Cost					Fair Value
Investment	Amount		%			Amount		%			Amount		%			Amount		%
Secured Loans	$	2,043,308		72.0	%	$	2,017,459		70.6	%	$	1,874,010		78.1	%	$	1,863,200		77.1	%
Equipment Financings		471,937		16.6	%		470,676		16.5	%		337,368		14.1	%		336,764		13.9	%
Equity		268,078		9.4	%		288,384		10.1	%		131,066		5.5	%		140,185		5.8	%
Warrants		55,969		2.0	%		81,213		2.8	%		54,439		2.3	%		77,926		3.2	%
Total	$	2,839,292		100.0	%	$	2,857,732		100.0	%	$	2,396,883		100.0	%	$	2,418,075		100.0	%

Certain Risk Factors

In the ordinary course of business, the Company manages a variety of risks, including market risk, credit risk and liquidity risk. The Company identifies, measures and monitors risk through various control mechanisms, including investment limits and diversifying exposures and activities across a variety of instruments, markets and counterparties.

Market risk is the risk of potential adverse changes to the value of financial instruments because of changes in market conditions, including as a result of changes in the credit quality of a particular issuer, credit spreads, interest rates, and other movements and volatility in security prices or commodities. In particular, the Company may invest in issuers that are experiencing or have experienced financial or business difficulties (including difficulties resulting from the initiation or prospect of significant litigation or bankruptcy proceedings), which involves significant risks. The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques.

The Company’s investments are generally comprised of securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

The Company’s investments consist of growth-oriented companies, many of which have relatively limited operating histories and may experience variation in operating results. Many of these companies conduct business in regulated industries and could be affected by changes in government regulations. Most of the Company’s borrowers will need additional capital to satisfy their continuing working capital needs and other requirements, and in many instances, to service the interest and principal payments on the debt.

The Company enters into forward currency contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.

Note 3. Investments

Debt Securities

Warrant Investments

Equity Investments

Portfolio Composition

Certain Risk Factors