INVESTMENTS

9 Months Ended

Sep. 30, 2026

(4) INVESTMENTS

Fair Value Measurement and Disclosures

The following table shows the composition of the Company’s investment portfolio as of September 30, 2026, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾
First Lien Secured Debt	$	449,969	$	449,031	$	—	$	2,941	$	446,090	$	—
Second Lien Secured Debt		8,718		7,898		—		—		7,898		—
Equity		194		213		—		—		213		—
Investment in Joint Ventures		25,908		25,850		—		—		—		25,850
Total Investments	$	484,789	$	482,992	$	—	$	2,941	$	454,201	$	25,850

⁽¹⁾	In accordance with ASC 820, the Company’s investment in JV is measured using the net asset value (or its equivalent) as a practical expedient for fair value and has not been classified in the fair value hierarchy.

The following table shows the composition of the Company’s investment portfolio as of December 31, 2025, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾
First Lien Secured Debt	$	290,356	$	291,011	$	—	$	3,483	$	287,528	$	—
Second Lien Secured Debt		8,695		8,730		—		—		8,730		—
Equity		110		110		—		—		110		—
Investments in Joint Venture		18,756		18,764		—		—		—		18,764
Total Investments	$	317,917	$	318,615	$	—	$	3,483	$	296,368	$	18,764

⁽¹⁾	In accordance with ASC 820, the Company’s investment in SBLA II JV is measured using the net asset value (or its equivalent) as a practical expedient for fair value and has not been classified in the fair value hierarchy.

The following table presents changes in the fair value of the Company’s investments for which Level 3 inputs were used to determine the fair value for the nine months ended September 30, 2026:

	For the nine months ended September 30, 2026
	First Lien Secured Debt			Second Lien Secured Debt			Equity
Fair value, beginning of period	$	287,528		$	8,730		$	110
Purchases		283,616			—			84
Payment-in-kind interest income capitalized		381			—			—
Sales and repayments		(125,506	)		—			—
Net (amortization) accretion on investments		1,046			22			—
Net realized gains (losses) on investments		85			—			—
Net change in unrealized gains (losses) on investments		(1,060	)		(854	)		19

	For the nine months ended September 30, 2026
	First Lien Secured Debt			Second Lien Secured Debt			Equity
Transfers out of Level 3⁽¹⁾	$	—		$	—		$	—
Transfers into Level 3⁽¹⁾		—			—			—
Fair value, end of period	$	446,090		$	7,898		$	213
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2026	$	(747	)	$	(855	)	$	19

⁽¹⁾	For the nine months ended September 30, 2026 there were no transfers out of/into Level 3.

The following table presents changes in the fair value of the Company’s investments for which Level 3 inputs were used to determine the fair value for the nine months ended September 30, 2025:

	For the nine months ended September 30, 2025
	First Lien Secured Debt			Second Lien Secured Debt
Fair value, beginning of period	$	43,714		$	—
Purchases, including capitalized PIK		195,549			8,685
Sales and repayments		(20,626	)		—
Net (amortization) accretion on investments		370			3
Net realized gains (losses)		—			—
Net change in unrealized gains (losses)		425			—
Transfers out of Level 3⁽¹⁾		—			—
Transfers into Level 3⁽¹⁾		—			—
Fair value, end of period	$	219,432		$	8,688
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2025	$	502		$	—

⁽¹⁾	For the nine months ended September 30, 2025 there were no transfers out of/into Level 3.

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of September 30, 2026 and December 31, 2025. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of September 30, 2026, were as follows:

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

Fair Value

Valuation
Techniques/
Methodologies

Unobservable
Input

Range

Weighted
Average⁽¹⁾

First Lien Secured Debt

390,645

Income Approach

Discount Rate

8.03% - 12.85%

9.97%

First Lien Secured Debt

55,445

Market Approach

Transaction Price

n/a

Second Lien Secured Debt

7,898

Income Approach

Discount Rate

13.18% - 14.18%

13.68%

Equity

129

Market Approach

EBITDA Multiple

10.5x - 12.5x

11.5x

Equity

Market Approach

Transaction Price

n/a

Total Level 3 Investments

454,201

⁽¹⁾	Weighted averages are calculated based on fair value of investments.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of December 31, 2025, were as follows:

Quantitative Information about Level 3 Fair Value Measurements

Asset Category

Fair Value

Valuation
Techniques/
Methodologies

Unobservable
Input

Range

Weighted

Average⁽¹⁾

First Lien Secured Debt

233,458

Income Approach

Discount Rate

6.65% - 10.41%

8.46%

First Lien Secured Debt

54,070

Market Approach

Transaction Price

N/A

Second Lien Secured Debt

8,730

Income Approach

Discount Rate

9.94% - 10.44%

10.19%

Equity

110

Market Approach

Transaction Price

N/A

Total Level 3 Investments

296,368

⁽¹⁾	Weighted averages are calculated based on fair value of investments.

The significant unobservable input used in the market approach is the transaction price to acquire the position. There has been no change to the valuation based on the underlying assumptions used at the closing of such transaction. The significant unobservable inputs used in the income approach is the discount rate. The discount rate is used to discount the estimated future cash flows, which include both future principal and interest payments expected to be received from the underlying investment. An increase/decrease in the discount rate would result in a decrease/ increase, respectively, in the fair value. There have been no material changes to the valuation approaches utilized during the nine months ended September 30, 2026 or the year ended December 31, 2025.

Joint Venture

On May 6, 2025, the Company entered into a joint venture with Stifel Bank & Trust. The joint venture is called SBLA Private Credit II LLC. On March 11, 2025, the SBLA II JV established SBLA Private Credit II Funding, LLC, a wholly-owned subsidiary of the SBLA II JV and a Delaware limited liability company that is a disregarded entity for tax purposes, to hold investment collateral in connection with a credit facility.

The Company and the JV partner have $60 million and $8.6 million, respectively, in total commitments to SBLA II JV, with targeted member ownership interests of approximately 87.5% and 12.5%, respectively. The Company and the JV partner have equal voting rights with respect to the SBLA II JV and the SBLA II JV’s general partner. The SBLA II JV will not be consolidated in the Company’s Consolidated Financial Statements. As of September 30, 2026 and as of December 31, 2025, the Company had commitments of $60 million and $60 million to the SBLA II JV, respectively, of which $34 million and $41 million, respectively, were unfunded.

The following table presents the consolidated schedule of investments of the SBLA II JV as of September 30, 2026.

SBLA Private Credit II LLC
Consolidated Schedule of Investments
September 30, 2026
(in thousands, except share amounts, per share data, percentages, and as otherwise noted)

Investments⁽¹⁾	Reference Rate and Spread⁽²⁾	Interest Rate⁽²⁾	Maturity Date	Par Amount/ Common Units		Cost⁽³⁾		Fair Value		% of Net Assets
Investments—non-controlled/non-affiliated
First Lien Secured Debt^{(4) (5)}
Aerospace & Defense
Accel International Holdings Inc (Term Loan)	1M S + 4.25%	8.15%	4/26/2032	$	12,000	$	12,000	$	12,000	40.62	%
							12,000		12,000	40.62
Automobile Components
ATCDT Corp (Term Loan)	1M S + 3.25%	7.25%	1/25/2028		5,581		5,551		5,581	18.89
							5,551		5,581	18.89
Chemicals
Lenticular Holdings Inc (Term Loan)	3M S + 4.75%	8.79%	9/19/2033		5,089		5,038		5,038	17.05
							5,038		5,038	17.05
Commercial Services & Supplies
KDV Label (Term Loan)	1M S + 3.85%	7.53%	4/30/2029		3,398		3,398		3,372	11.41

Investments⁽¹⁾	Reference Rate and Spread⁽²⁾	Interest Rate⁽²⁾	Maturity Date	Par Amount/ Common Units		Cost⁽³⁾			Fair Value			% of Net Assets
KDV Label (Delayed Draw)⁽⁶⁾	1M S + 3.85%	7.53%	4/30/2029	$	232	$	232		$	221			0.75	%
Meridian Waste Acquisitions, LLC (Revolver)⁽⁶⁾	3M S + 3.38%	7.25%	8/30/2029		1,003		1,003			1,003			3.40
Meridian Waste Acquisitions, LLC (Term Loan)	3M S + 3.88%	7.84%	8/30/2029		7,637		7,637			7,637			25.85
Meridian Waste Acquisitions, LLC (Delayed Draw 2026 Term Loan)⁽⁶⁾	3M S + 3.88%	7.61%	8/30/2029		530		530			530			1.79
							12,800			12,763			43.20
Containers & Packaging
Accord Buyer LLC (Term Loan)	1M S + 4.50%	8.50%	5/19/2028		3,423		3,404			3,354			11.35
Accord Buyer LLC (Term Loan B)⁽⁶⁾	1M S + 4.50%	8.50%	5/19/2028		568		568			548			1.86
Schoeneck Containers, LLC (Term Loan)	1M S + 4.10%	8.12%	5/7/2028		3,015		3,015			3,015			10.21
Schoeneck Containers, LLC (Delayed Draw)	1M S + 4.10%	8.12%	5/7/2028		1,540		1,540			1,540			5.21
							8,527			8,457			28.63
Financial Services
Forge Borrower, LLC (Term Loan)	3M S + 4.25%	8.32%	1/31/2033		1,750		1,734			1,750			5.93
MAI Capital Management Intermediate LLC (Term Loan)	3M S + 4.75%	8.82%	8/29/2031		4,759		4,757			4,741			16.05
Trimont Holdings LLC (Term Loan)	3M S + 2.50%	6.32%	2/28/2030		10,200		10,163			10,149			34.35
							16,654			16,640			56.33
Health Care Equipment & Supplies
StateServ Acquisition, Inc. (Term Loan)	3M S + 4.50%	8.25%	7/18/2033		5,749		5,693			5,693			19.27
							5,693			5,693			19.27
Machinery
Iris Acquisition, LLC (Term Loan)	1M S + 5.00%	8.77%	6/9/2033		12,500		12,378			12,375			41.89
LR Purchaser LLC (Term Loan)	1M S + 4.25%	7.93%	3/19/2031		10,841		10,693			10,692			36.19
Rental Equipment Investment Co. (Term Loan)	6M S + 5.00%	8.85%	10/8/2030		12,406		12,277			12,282			41.57
							35,348			35,349			119.65
Pharmaceuticals
MRO Maryruth LLC (Term Loan A 1st Amendment)	3M S + 3.75%	7.80%	9/30/2030		4,174		4,153			4,153			14.06
							4,153			4,153			14.06
Real Estate Management & Development
Royal Property Company Borrower LLC (Term Loan A)	1M S + 3.75%	7.65%	5/1/2030		5,914		5,883			5,899			19.97
Royal Property Company Borrower LLC (Term Loan B)	1M S + 5.25%	9.15%	5/1/2031		1,534		1,521			1,520			5.14
Royal Property Company Borrower LLC (Delayed Draw)⁽⁶⁾	1M S + 3.75%	N/A	5/1/2031		—		(10	)		(19	)		(0.06	)
							7,394			7,400			25.05
Specialty Retail
Alliance Mobile Inc (Revolver)⁽⁶⁾	3M S + 3.50%	N/A	8/17/2031		—		(2	)		—			—
Alliance Mobile Inc (Term Loan 2026 6th Amendment)	3M S + 3.50%	7.24%	8/17/2031		8,680		8,680			8,680			29.38
							8,678			8,680			29.38
Textiles, Apparel & Luxury Goods
Colorescience Inc (Term Loan)	3M S + 4.25%	8.32%	1/23/2032		1,581		1,566			1,581			5.35
							1,566			1,581			5.35
Total First Lien Secured Debt						$	123,402		$	123,335			417.48	%
Total Investments at fair value						$	123,402		$	123,335			417.48	%

⁽¹⁾	Unless otherwise indicated, debt investments held by the SBLA II JV are denominated in U.S. dollars and are income producing. All investments are pledged as collateral under a credit facility, unless otherwise indicated.

⁽²⁾	Unless otherwise indicated, each loan contains a variable rate structure, and may be subject to an interest rate floor. Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”), which generally resets periodically. For each loan, the SBLA II JV has indicated the reference rate used (including any adjustments per the loan agreements), and provided the spread and interest rate in effect as of September 30, 2026.

⁽³⁾	The cost represents the original cost adjusted for the accretion of discounts and amortization of premiums, as applicable, on debt investments using the effective interest method in accordance with U.S. GAAP.

⁽⁴⁾	Unless otherwise indicated, issuers of debt held by the SBLA II JV are domiciled in the United States.

⁽⁵⁾	All investments are valued using unobservable inputs (Level 3), unless otherwise noted (see “Note 2 - Summary of Significant Accounting Policies” and “Note 4 - Investments”).

⁽⁶⁾	Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may be subject to unused commitment fees. Negative cost and fair value result from the unfunded commitment being valued below par and/or unamortized fees, which are capitalized to the investment cost. As of September 30, 2026, the total unfunded loan commitment was approximately $9.8 million.

The following table presents the consolidated schedule of investments of the SBLA II JV as of December 31, 2025.

(in thousands, except share amounts, per share data, percentages, and as otherwise noted)

Investments⁽¹⁾	Reference Rate and Spread⁽²⁾	Interest Rate⁽²⁾	Maturity Date	Par Amount/ Common Shares		Cost⁽³⁾			Fair Value			% of Net Assets
Investments—non-controlled/non-affiliated
First Lien Secured Debt^{(4) (5)}
Aerospace & Defense
Unical Aviation Inc (Term Loan)	1M S + 3.75%	7.47%	10/31/2029	$	3,404	$	3,373		$	3,385			15.78	%
							3,373			3,385			15.78
Automobile Components
ATCDT Corp (Term Loan)	1M S + 3.50%	7.32%	1/25/2028		5,924		5,875			5,895			27.49
							5,875			5,895			27.49
Beverages
King Juice (Term Loan)	1M S + 4.35%	7.22%	3/25/2027		694		690			694			3.24
King Juice (Revolver)⁽⁶⁾	1M S + 4.35%	7.22%	3/25/2027		27		20			27			0.13
							710			721			3.37
Commercial Services & Supplies
KDV Label (Term Loan)	1M S + 3.85%	8.04%	4/30/2029		3,578		3,565			3,555			16.58
KDV Label (Delayed Draw)⁽⁶⁾	1M S + 3.85%	N/A	4/30/2029		—		(2	)		(9	)		(0.05	)
Meridian Waste Acquisitions, LLC (Term Loan)	3M S + 3.38%	7.81%	8/30/2029		7,598		7,598			7,598			35.43
Meridian Waste Acquisitions, LLC (Delayed Draw)⁽⁶⁾	3M S + 3.88%	7.88%	8/30/2029		3,081		3,081			3,081			14.37
Meridian Waste Acquisitions, LLC (Revolver)⁽⁶⁾	3M P + 2.25%	9.00%	8/30/2029		842		842			842			3.93
							15,084			15,067			70.26
Construction & Engineering
Discovery Marketing And Distributing, LLC (Term Loan)	3M S + 4.00%	7.91%	8/10/2027		7,368		7,313			7,340			34.23
							7,313			7,340			34.23
Containers & Packaging
Accord Buyer LLC (Term Loan)	1M S + 4.50%	8.32%	5/19/2028		3,738		3,708			3,645			17.00
Accord Buyer LLC (Term Loan)⁽⁶⁾	1M S + 4.50%	8.32%	5/19/2028		590		590			564			2.63
							4,298			4,209			19.63
Financial Services
Trimont Holdings LLC (Term Loan)	1M S + 2.75%	6.47%	3/1/2030		11,100		11,017			10,988			51.24
							11,017			10,988			51.24
Industrials
Fairbank Equipment (Term Loan)	3M S + 3.90%	7.72%	12/23/2026		3,883		3,849			3,854			17.97
Madison Safety & Flow LLC (Revolver)⁽⁶⁾	3M S + 2.75%	N/A	9/26/2029		—		—			—			—
							3,849			3,854			17.97
Leisure Products
Buffalo Games LLC (Term Loan)	1M S + 2.50%	6.32%	8/31/2027		1,146		1,137			1,146			5.34
							1,137			1,146			5.34
Machinery
Rental Equipment Investment Co. (Term Loan)	3M S + 4.50%	8.17%	10/8/2030		12,500		12,350			12,344			57.56
Seakeeper Technologies LLC (Term Loan)	3M S + 3.25%	7.09%	7/19/2027		7,702		7,645			7,673			35.78
							19,995			20,017			93.34

Investments⁽¹⁾	Reference Rate and Spread⁽²⁾	Interest Rate⁽²⁾	Maturity Date	Par Amount/ Common Shares		Cost⁽³⁾		Fair Value		% of Net Assets
Professional Services
Investor Group Services LLC (Term Loan)	1M S + 3.25%	7.04%	10/21/2027	$	5,108	$	5,067	$	5,064		23.61
							5,067		5,064		23.61
Real Estate Management & Development
Royal Property Company Borrower LLC (Term Loan)	1M S + 3.75%	7.47%	2/2/2028		6,033		5,984		6,018		28.06
							5,984		6,018		28.06
Specialty Retail
Alliance Mobile Inc (Term Loan)	3M S + 3.50%	7.32%	8/1/2028		6,410		6,375		6,378		29.74
Alliance Mobile Inc (Term Loan)	3M S + 3.50%	7.32%	8/1/2028		965		957		960		4.48
Alliance Mobile Inc (Delayed Draw)	3M S + 3.50%	7.32%	8/1/2028		598		598		595		2.77
M&M Thrift Management Company LLC (Term Loan)	3M S + 2.25%	6.02%	12/1/2026		4,392		4,366		4,370		20.38
							12,296		12,303		57.37
Total First Lien Secured Debt						$	95,998	$	96,007		447.69	%
Total Investments at Fair Value						$	95,998	$	96,007		447.69	%

⁽¹⁾	Unless otherwise indicated, debt investments held by the SBLA II JV are denominated in USD and are income producing. All investments are pledged as collateral under a credit facility, unless otherwise indicated.

⁽²⁾	Unless otherwise indicated, loan contains a variable rate structure, and may be subject to an interest rate floor. Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”), which generally resets periodically. For each loan, the SBLA II JV has indicated the reference rate used (including any adjustments per the loan agreements), and provided the spread and interest rate in effect as of December 31, 2025.

⁽³⁾	The cost represents the original cost adjusted for the accretion of discounts and amortization of premiums, as applicable, on debt investments using the effective interest method in accordance with U.S. GAAP.

⁽⁴⁾	Unless otherwise indicated, issuers of debt held by the SBLA II JV are domiciled in the United States.

⁽⁵⁾	All investments are valued using unobservable inputs (Level 3), unless otherwise noted (see “Note 2 - Summary of Significant Accounting Policies” and “Note 4 - Investments”).

⁽⁶⁾	Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion, although the investment may be subject to unused commitment fees. Negative cost and fair value result from the unfunded commitment being valued below par and/or unamortized fees, which are capitalized to the investment cost. As of December 31, 2025, the total unfunded loan commitment was approximately $7.2 million.

The following table presents the selected statements of assets and liabilities information of the SBLA II JV as of September 30, 2026 and December 31, 2025.

SBLA Private Credit II LLC
Consolidated Financial Statements
(in thousands, except share amounts, per share data, percentages, and as otherwise noted)

	September 30, 2026		December 31, 2025
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (cost $123,402 and $95,998, respectively)	$	123,335	$	96,007
Cash and cash equivalents		4,125		6,099
Interest receivable from non-controlled/non-affiliated investments		968		410
Receivable for investments sold		76		—
Total assets	$	128,504	$	102,516

LIABILITIES
Debt (net of deferred financing costs $1,013 and $1,181, respectively)	$	96,237	$	78,919
Interest payable		1,537		1,361
Distribution payable		846		559
Professional fees payable		189		123
Due to affiliate		90		72

	September 30, 2026		December 31, 2025
Administration fees payable	$	47	$	37
Accrued expenses and other liabilities		15		—
Total liabilities	$	98,961	$	81,071
MEMBERS’ EQUITY
Members’ equity	$	29,543	$	21,445
Total members’ equity	$	29,543	$	21,445
Total liabilities and members’ equity	$	128,504	$	102,516

SBLA Private Credit II LLC
Consolidated Financial Statements
(in thousands, except share amounts, per share data, percentages, and as otherwise noted)

The following table presents the selected consolidated statements of operations information of the SBLA II JV for the three and nine months ended September 30, 2026, as well as the three months ended September 30, 2025, and the period from May 6, 2025 (commencement of operations) to September 30, 2025:

	For the three months ended September 30, 2026		For the three months ended September 30, 2025		For the nine months ended September 30, 2026			For the period from May 06, 2025 (commencement of operations) to September 30, 2025
Investment income
Non-controlled/non-affiliated investments:
Interest income	$	2,550	$	1,902	$	6,924		$	2,536
Fee income		53		27		109			14
Total investment income	$	2,603	$	1,929	$	7,033		$	2,550

Expenses
Interest expense	$	1,608	$	1,378	$	4,459		$	1,799
Professional fees		74		37		166			71
Administration fees		47		31		127			41
Other general & administrative		30		—		100			—
Total expenses	$	1,759	$	1,446	$	4,852		$	1,911
Net expenses	$	1,759	$	1,446	$	4,852		$	1,911
Net investment income (loss)	$	844	$	483	$	2,181		$	639

Net realized gain (loss) and change in unrealized appreciation (depreciation)
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	$	80	$	98	$	(76	)	$	98
Net change in unrealized appreciation (depreciation)	$	80	$	98	$	(76	)	$	98
Net realized gain (loss) and change in unrealized appreciation (depreciation)	$	80	$	98	$	(76	)	$	98
Net increase (decrease) in net assets resulting from operations	$	924	$	581	$	2,105		$	737