UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, ~~2020~~2021

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

For the transition period from to

Commission file number: 814-01154

AUDAX CREDIT BDC INC.

(Exact name of registrant as specified in its charter)

DELAWARE

47-3039124

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)


101 HUNTINGTON AVENUE
BOSTON, MASSACHUSETTS		02199
(Address of principal executive office)		(Zip Code)

(617) 859-1500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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

None.

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

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

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

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

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

The registrant had ~~38,343,577~~39,961,405 shares of common stock, par value $0.001 per share, outstanding as of November ~~13, 2020.~~11, 2021.

AUDAX CREDIT BDC INC.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION:

Item 1.	Financial Statements

	Statements of Assets and Liabilities as of September 30, ~~2020~~2021 (unaudited) and December 31, ~~2019~~2020	2
	Statements of Operations for the three and nine months ended September 30, ~~2020~~2021 (unaudited) and ~~2019~~2020 (unaudited)	3
	Statements of Changes in Net Assets for the nine months ended September 30, ~~2020~~2021 (unaudited) and ~~2019~~2020 (unaudited)	4
	Statements of Cash Flows for the nine months ended September 30, ~~2020~~2021 (unaudited) and ~~2019~~2020 (unaudited)	5
	Schedules of Investments as of September 30, ~~2020~~2021 (unaudited) and December 31, ~~2019~~2020	6
	Notes to Financial Statements (unaudited)	1516

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3437

	Overview	3538
	Results of Operations	3740
	Financial Condition, Liquidity and Capital Resources	3942

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4649

Item 4.	Controls and Procedures	4750

PART II.	OTHER INFORMATION:	47

Item 1.	Legal Proceedings	4751

Item 1A.	Risk Factors	4751

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4852

Item 3.	Defaults Upon Senior Securities	4852

Item 4.	Mine Safety Disclosures	4852

Item 5.	Other Information	4852

Item 6.	Exhibits	4952

SIGNATURES		5053

Audax Credit BDC Inc.

Statements of Assets and Liabilities

September 30, ~~2020~~2021 and December 31, ~~2019~~2020

(Expressed in U.S. Dollars)

	September 30, 2020			December 31, 2019			September 30, 2021				December 31, 2020
	(unaudited)						(unaudited)
Assets
Investments, at fair value
Non-Control/Non-Affiliate investments (Cost of $350,068,000 and $332,722,006, respectively)	$	341,488,783		$	330,874,911
Non-Control/Non-Affiliate investments (Cost of $364,703,003 and $358,990,792, respectively)							$	363,441,460		$	355,359,843
Cash and cash equivalents		24,955,930			5,506,217			13,397,892			4,289,122
Interest receivable		1,031,575			942,329			1,065,822			954,012
Receivable from investments sold		-			1,993,379			3,714,278			-
Receivable from bank loan repayment		21,569			80,161			35,553			-
Other assets		49,265			-			48,750			-

Total assets	$	367,547,122		$	339,396,997		$	381,703,755		$	360,602,977

Liabilities
Accrued expenses and other liabilities	$	224,959		$	297,938		$	286,122		$	316,522
Fee due to administrator^(a)		66,250			66,250			66,250			66,250
Fees due to investment advisor, net of waivers^(a)		603,868			688,136			641,794			614,844
Payable for investments purchased		8,957,495			6,945,000			2,988,750			2,722,500

Total liabilities	$	9,852,572		$	7,997,324		$	3,982,916		$	3,720,116
Commitments and contingencies^(b)

Net Assets
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 38,343,577 and 35,109,246 shares issued and outstanding, respectively	$	38,343		$	35,110
Common stock, $0.001 par value per share, 100,000,000 shares authorized, $ 39,961 $38,343 39,961,405 and 38,343,580 shares issued and outstanding, respectively
Capital in excess of par value		364,092,201			334,095,408			378,779,189			363,826,108
Total distributable earnings		(6,435,994	)		(2,730,845	)		(1,098,311	)		(6,981,590)
Total Net Assets	$	357,694,550		$	331,399,673		$	377,720,839		$	356,882,861
Net Asset Value per Share of Common Stock at End of Period	$	9.33		$	9.44		$	9.45			$9.31

Shares Outstanding		38,343,577			35,109,246			39,961,405			38,343,580

	^(a)	Refer to Note 4-Related Party Transactions for additional information.

	^(b)	Refer to Note 8-Commitments and Contingencies for additional information.

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

Audax Credit BDC Inc.

Statements of Operations

(Expressed in U.S. Dollars)

(unaudited)

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended			Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019			September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Investment Income
Interest income
Non-Control/Non-Affiliate	$	4,721,470		$	5,347,398		$	14,885,290		$	15,433,946		$	4,924,039		$	4,721,470		$	14,455,194		$	14,885,290
Other		1,058			28,722			31,053			122,237			477			1,058			1,107			31,053
Total interest income		4,722,528			5,376,120			14,916,343			15,556,183			4,924,516			4,722,528			14,456,301			14,916,343
Other income
Non-Control/Non-Affiliate		14,577			5,214			153,950			38,364			20,772			14,577			83,774			153,950
Total income		4,737,105			5,381,334			15,070,293			15,594,547			4,945,288			4,737,105			14,540,075			15,070,293

Expenses
Base management fee^(a)	$	874,188		$	820,094		$	2,697,570		$	2,367,188		$	947,361		$	874,188		$	2,810,141		$	2,697,570
Incentive fee^(a)		356,461			680,250			1,641,419			1,939,486			260,092			356,461			647,839			1,641,419
Administrative fee^(a)		66,250			66,250			198,750			198,750			66,250			66,250			198,750			198,750
Directors' fees		52,500			52,500			157,500			157,500			56,250			52,500			168,750			157,500
Professional fees		132,514			136,660			369,572			524,791			108,251			132,514			345,947			369,572
Other expenses		83,232			58,388			191,422			246,441			108,702			83,232			314,632			191,422

Expenses before waivers from investment adviser and administrator		1,565,145			1,814,142			5,256,233			5,434,156			1,546,906			1,565,145			4,486,059			5,256,233
Base management fee waivers^(a)		(305,966	)		(287,033	)		(944,150	)		(828,516	)		(331,576	)		(305,966	)		(983,548	)		(944,150	)
Incentive fee waivers^(a)		(320,815	)		(543,178	)		(1,437,466	)		(1,553,628	)		(234,083	)		(320,815	)		(583,056	)		(1,437,466	)
Total expenses, net of waivers		938,364			983,931			2,874,617			3,052,012			981,247			938,364			2,919,455			2,874,617
Net Investment Income		3,798,741			4,397,403			12,195,676			12,542,535			3,964,041			3,798,741			11,620,620			12,195,676

Realized and Unrealized Gain (Loss) on Investments
Net realized loss on investments		(1,039,704	)		(826,185	)		(1,043,096	)		(724,454	)
Net realized gain (loss) on investments														183,204			(1,039,704	)		(450,168	)		(1,043,096	)
Net change in unrealized appreciation (depreciation) on investments		6,436,468			182,576			(6,732,122	)		(479,160	)		94,068			6,436,468			2,369,406			(6,732,122	)
Net realized and unrealized gain (loss) on investments		5,396,764			(643,609	)		(7,775,218	)		(1,203,614	)		277,272			5,396,764			1,919,238			(7,775,218	)

Net Increase in Net Assets Resulting from Operations	$	9,195,505		$	3,753,794		$	4,420,458		$	11,338,921		$	4,241,313		$	9,195,505		$	13,539,858		$	4,420,458

Basic and Diluted per Share of Common Stock:
Net investment income	$	0.10		$	0.13		$	0.32		$	0.39		$	0.10		$	0.10		$	0.30		$	0.32
Net increase in net assets resulting from operations	$	0.24		$	0.11		$	0.12		$	0.36		$	0.11		$	0.24		$	0.34		$	0.12

Weighted average shares of common stock outstanding basic diluted		38,265,852			33,504,019			37,528,161			31,856,849			39,909,673			38,265,852			39,295,800			37,528,161

^(a)

Refer to Note 4-Related Party Transactions for additional information

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

Audax Credit BDC Inc.

Statements of Changes in Net Assets

(Expressed in U.S. Dollars)

(unaudited)

	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Operations
Net investment income	$	12,195,676		$	12,542,535		$	11,620,620		$	12,195,676
Net realized loss on investments		(1,043,096	)		(724,454	)		(450,168	)		(1,043,096	)
Net change in unrealized depreciation on investments		(6,732,122	)		(479,160	)
Net change in unrealized appreciation (depreciation) on investments								2,369,406			(6,732,122	)
Net increase in net assets resulting from operations		4,420,458			11,338,921			13,539,858			4,420,458

Distributions:
Distributions to common stockholders		(8,125,607	)		(8,246,864	)		(7,656,579	)		(8,125,607	)
Return of capital to common stockholders		-			(60,025	)		(145,326	)		-
Total distributions		(8,125,607	)		(8,306,889	)		(7,801,905	)		(8,125,607	)

Capital Share Transactions:
Issuance of common stock		30,000,000			50,000,000			15,100,000			30,000,000
Reinvestment of common stock		26			30			25			26
Net increase in net assets from capital share transactions		30,000,026			50,000,030			15,100,025			30,000,026

Net Increase in Net Assets		26,294,877			53,032,062			20,837,978			26,294,877

Net Assets, Beginning of Period		331,399,673			267,423,235			356,882,861			331,399,673

Net Assets, End of Period	$	357,694,550		$	320,455,297		$	377,720,839		$	357,694,550

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

Audax Credit BDC Inc.

Statements of Cash Flows

(Expressed in U.S. Dollars)

(unaudited)

	Nine Months Ended			Nine Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2021			September 30, 2020
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	4,420,458		$	11,338,921		$	13,539,858		$	4,420,458
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
Net realized loss on investments		1,043,096			724,452			450,168			1,043,096
Net change in unrealized depreciation on investments		6,732,122			479,160
Net change in unrealized (appreciation) depreciation on investments								(2,369,406	)		6,732,122
Accretion of original issue discount interest and payment-in-kind interest		(357,873	)		(199,813	)		(538,786	)		(357,873	)
Decrease in receivable from investments sold		1,993,379			-
(Increase) decrease in receivable from investments sold								(3,714,278	)		1,993,379
Increase in interest receivable		(89,246	)		(409,770	)		(111,810	)		(89,246	)
Decrease (increase) in receivable from bank loan repayment		58,592			(34,133	)
(Increase) decrease in receivable from bank loan repayment								(35,553	)		58,592
Increase in other assets		(49,265	)		(45,000	)		(48,750	)		(49,265	)
Decrease in accrued expenses and other liabilities		(72,979	)		(89,937	)		(30,400	)		(72,979	)
(Decrease) increase in fees due to investment advisor^(a)		(84,268	)		134,219
Increase (decrease) in payable for investments purchased		2,012,495			(514,807	)
Increase (decrease) in fees due to investment advisor^(a)								26,950			(84,268	)
Increase in payable for investments purchased								266,250			2,012,495
Investment activity:
Investments purchased		(52,376,341	)		(110,656,983	)		(89,312,556	)		(52,376,341	)
Proceeds from investments sold		6,437,456			5,017,964			17,331,786			6,437,456
Repayment of bank loans		27,907,668			46,240,554			66,357,177			27,907,668
Total investment activity		(18,031,217	)		(59,398,465	)		(5,623,593	)		(18,031,217	)

Net cash used in operating activities		(2,424,706	)		(48,015,173	)
Net cash provided by (used in) operating activities								1,810,650			(2,424,706	)

Cash flows from financing activities:
Issuance of shares of common stock		30,000,000			50,000,000			15,100,000			30,000,000
Distributions paid to common stockholders		(8,125,581	)		(8,306,859	)		(7,801,880	)		(8,125,581	)

Net cash provided by financing activities		21,874,419			41,693,141			7,298,120			21,874,419

Net increase (decrease) in cash and cash equivalents		19,449,713			(6,322,032	)
Net increase in cash and cash equivalents								9,108,770			19,449,713

Cash and cash equivalents:
Cash and cash equivalents, beginning of period		5,506,217			17,715,145			4,289,122			5,506,217

Cash and cash equivalents, end of period	$	24,955,930		$	11,393,113		$	13,397,892		$	24,955,930

Supplemental non-cash information
Issuance of common shares in connection with dividend reinvestment plan	$	26		$	30		$	25		$	26
Payment-in-kind ("PIK") interest income	$	75,144		$	32,822		$	200,382		$	75,144

^(a)

~~Refer to Note 4-~~~~Related Party Transactions~~ ~~for additional information~~

^(a) Refer to Note 4-Related Party Transactions for additional information

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

Audax Credit BDC Inc.

Schedule of Investments

As of September 30, ~~2020~~2021

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (95.2%)^(g)(h):

Healthcare & Pharmaceuticals
Radiology Partners, Senior Secured Term B Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/25⁽ⁱ⁾ $ 4,215,792 $ 4,345,712 $ 4,081,429
Advarra, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26 3,909,806 3,873,848 3,909,805
Tecomet, Senior Secured 2017 Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/1/24⁽ⁱ⁾ 3,928,827 3,914,207 3,860,072
Young, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/7/24 3,804,669 3,795,542 3,757,109
Specialty Care, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 9/1/23 3,317,371 3,320,262 3,309,076
Veritext, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 8/1/25 3,161,388 3,147,073 3,113,966
Zest Dental, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/14/25 3,247,592 3,265,442 2,955,308
Confluent Health, Senior Secured Initial Term Loan, 5.23% (Libor + 5.00%), maturity 6/24/26 2,962,500 2,938,237 2,955,094
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 8/18/23 2,887,958 2,870,561 2,794,100
Waystar, Senior Secured Term Loan B, 4.23% (Libor + 4.00%), maturity 10/22/26 2,487,500 2,477,839 2,487,500
PharMedQuest, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 10/31/24 2,481,250 2,452,364 2,481,250
MedRisk, Senior Secured Initial Term Loan (First Lien), 2.98% (Libor + 2.75%), maturity 12/27/24 2,431,250 2,435,776 2,431,250
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 9/23/24 2,427,643 2,410,238 2,415,505
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/1/24 2,316,088 2,306,941 2,316,088
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 7/10/25 2,312,092 2,318,760 2,312,092
MedRisk, Senior Secured Initial Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 12/29/25 2,100,000 2,077,798 2,100,000
Packaging Coordinators, Senior Secured Term Loan, 9.75% (Libor + 8.75%), maturity 10/1/27⁽ⁱ⁾ 2,000,000 1,992,500 2,000,000
Zelis RedCard, Senior Secured Initial Term Loan, 4.98% (Libor + 4.75%), maturity 9/30/26⁽ⁱ⁾ 1,950,004 1,935,858 1,943,542
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 12/22/25 1,965,000 1,950,929 1,930,613
Press Ganey, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾ 1,980,000 1,973,551 1,927,953
CareCentrix, Senior Secured Initial Term Loan, 4.73% (Libor + 4.50%), maturity 4/3/25⁽ⁱ⁾ 1,875,000 1,868,441 1,802,578
Alpaca, Senior Secured Term Loan, 7.75% (Libor + 6.75%), maturity 4/19/24^(j) 1,661,508 1,640,127 1,615,816
Upstream Rehabilitation, Senior Secured Term Loan, 4.73% (Libor + 4.50%), maturity 11/20/26 1,492,500 1,490,402 1,481,306
CPS, Unitranche, 6.50% (Libor + 5.50%), maturity 2/28/25 1,481,331 1,464,014 1,451,704
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24 1,472,873 1,466,532 1,450,780
Ensemble, Senior Secured Closing Date Term Loan, 3.98% (Libor + 3.75%), maturity 8/3/26⁽ⁱ⁾ 990,000 985,710 985,317
Veritext, Senior Secured Initial Term Loan (Second Lien), 7.23% (Libor + 7.00%), maturity 7/31/26 1,000,000 995,998 985,000
Athena, Senior Secured Term B Loan (First Lien), 4.73% (Libor + 4.50%), maturity 2/11/26⁽ⁱ⁾ 989,956 981,393 982,969
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/30/23⁽ⁱ⁾ 977,041 981,570 977,041
Alcami, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 7/14/25 980,000 976,396 948,150
Dermatologists of Central States, Senior Secured Term Loan, 7.50% (Libor + 6.50%), maturity 4/20/22 969,861 969,861 943,190
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 6.50% (Libor + 5.50%), maturity 5/9/25 980,000 969,429 940,800
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾ 914,856 918,723 880,549
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 9/1/24 850,000 844,216 850,000
Waystar, Senior Secured 2020 Incremental Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/22/26⁽ⁱ⁾ 500,000 498,750 498,750
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/6/25 433,366 432,651 433,366
Alpaca, Senior Secured Revolver, 7.75% (Libor + 6.75%), maturity 4/19/24^(j) 258,852 254,969 251,734
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26 - (7,619 ) -

High Tech Industries
Qlik, Senior Secured 2019 Incremental Term Loan, 4.48% (Libor + 4.25%), maturity 4/26/24⁽ⁱ⁾ 3,950,000 3,928,594 3,923,465
Netsmart, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/1/27⁽ⁱ⁾ 3,500,000 3,484,375 3,500,000
Masergy, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/16/24 3,428,571 3,421,397 3,428,571
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/12/25⁽ⁱ⁾ 3,424,943 3,436,190 3,410,505
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.48% (Libor + 6.25%), maturity 8/16/24⁽ⁱ⁾ 3,395,700 3,374,769 3,360,917
EverCommerce, Senior Secured Initial Term Loan, 5.73% (Libor + 5.50%), maturity 8/23/25 3,130,180 3,084,621 3,130,180
Jaggaer, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾ 3,130,629 3,126,018 3,109,327
McAfee, Senior Secured Term B USD Loan, 3.98% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾ 2,842,676 2,852,276 2,828,873
Idera, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/28/24⁽ⁱ⁾ 2,625,742 2,624,087 2,625,742
Infogroup, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 4/3/23⁽ⁱ⁾ 2,897,419 2,878,026 2,567,475
ECi Software, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 9/27/24⁽ⁱ⁾ 2,444,677 2,435,896 2,444,677
ECi Software, Senior Secured Term Loan, 4.50% (Libor + 3.75%), maturity 9/30/27⁽ⁱ⁾ 2,000,000 1,992,500 1,992,500
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 3/5/27^(i)(q) 1,995,000 1,878,459 1,963,707
QuickBase, Senior Secured Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 4/2/26 1,975,000 1,966,886 1,960,188
Intermedia , Senior Secured New Term Loan (First Lien), 7.00% (Libor + 6.00%), maturity 7/21/25 1,965,000 1,952,993 1,950,263
Flexera Software, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/26/25⁽ⁱ⁾ 1,950,000 1,955,844 1,945,125
GlobalLogic, Senior Secured Initial Term Loan, 2.98% (Libor + 2.75%), maturity 8/1/25 1,719,688 1,712,086 1,719,688
Bomgar, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 4/18/25⁽ⁱ⁾ 1,710,625 1,719,334 1,697,795
Corsair, Senior Secured Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 8/28/24 1,598,987 1,588,670 1,598,987
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 5/4/26⁽ⁱ⁾ 1,571,241 1,571,186 1,564,433
OEConnection, Senior Secured Initial Term Loan, 5.00% (Libor + 4.00%), maturity 9/25/26⁽ⁱ⁾ 1,530,207 1,523,837 1,518,730
Liaison, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 12/20/26 1,488,750 1,485,119 1,488,750
Navex Global, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾ 1,470,000 1,457,569 1,441,426
Unison, Senior Secured 2020 Term Loan, 8.00% (Libor + 7.00%), maturity 6/25/26^(j) 997,500 973,344 990,019
Insurity, Senior Secured Closing Date Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 7/31/26 992,500 988,209 987,538

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (96.1%)^(g)(h):

Healthcare & Pharmaceuticals
Radiology Partners, Senior Secured Term B Loan (First Lien), 4.38% (Libor + 4.25%), maturity 7/9/25⁽ⁱ⁾	6/28/2018	$	4,215,792	$	4,351,973		$	4,215,908
Advarra, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26	6/26/2019		4,156,221		4,126,286			4,156,220
Young, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/7/24	11/6/2017		3,765,354		3,757,689			3,737,113
American Vision Partners, Senior Secured Term Loan, 6.50% (Libor + 5.75%), maturity 9/22/28⁽ⁱ⁾	9/22/2021		3,546,512		3,482,414			3,493,313
InHealth Medical Alliance, Senior Secured Initial Term Loan, 7.00% (Libor + 6.00%), maturity 6/28/28	6/25/2021		3,500,000		3,465,451			3,456,250
Confluent Health, Senior Secured Initial Term Loan, 5.13% (Libor + 5.00%), maturity 6/24/26⁽ⁱ⁾	6/24/2019		3,427,437		3,402,527			3,427,436
PharMedQuest, Senior Secured Initial Term Loan, 6.50% (Libor + 5.50%), maturity 10/31/24	11/6/2019		3,293,398		3,263,022			3,268,697
Zest Dental, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 3/14/25⁽ⁱ⁾	5/30/2018		3,239,110		3,252,724			3,169,121
Veritext, Senior Secured Initial Term Loan (First Lien), 3.38% (Libor + 3.25%), maturity 8/1/25⁽ⁱ⁾	8/14/2018		3,129,147		3,114,927			3,103,325
Waystar, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 10/22/26⁽ⁱ⁾	9/19/2019		2,957,481		2,949,800			2,963,825
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 8/18/23	8/18/2016		2,860,177		2,846,238			2,838,726
Packaging Coordinators, Senior Secured Term B Loan (First Lien), 4.25% (Libor + 3.50%), maturity 11/30/27⁽ⁱ⁾	9/25/2020		2,475,031		2,466,743			2,481,073
Zelis RedCard, Senior Secured Term B-1 Loan, 3.63% (Libor + 3.50%), maturity 9/30/26⁽ⁱ⁾	9/27/2019		2,426,753		2,415,735			2,421,715
Soliant, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 3/31/28	3/26/2021		2,337,500		2,320,016			2,337,500
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 7/10/25	8/15/2018		2,288,499		2,293,906			2,288,499
Advanced Diabetes Supply, Senior Secured Term Loan December 2020, 6.25% (Libor + 5.25%), maturity 12/30/26	7/13/2021		1,994,975		1,975,125			1,985,000
Upstream Rehabilitation, Senior Secured August 2021 Incremental Term Loan (First Lien), 4.38% (Libor + 4.25%), maturity 11/20/26⁽ⁱ⁾	10/24/2019		1,976,297		1,973,317			1,979,594
Press Ganey, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾	7/23/2019		1,960,000		1,954,590			1,949,584
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 4.63% (Libor + 4.50%), maturity 12/22/25	12/19/2018		1,945,000		1,933,592			1,906,100
Alpaca, Senior Secured Term Loan, 6.25% (Libor + 5.25%), maturity 4/19/24^(j)	4/19/2019		1,875,061		1,856,728			1,837,560
CareCentrix, Senior Secured Initial Term Loan, 4.63% (Libor + 4.50%), maturity 4/3/25	4/2/2018		1,825,000		1,819,864			1,825,000
Gastro Health, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 7/3/28	7/2/2021		1,672,000		1,662,000			1,659,460
Symplr, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 12/22/27⁽ⁱ⁾	11/23/2020		1,492,500		1,470,300			1,499,362
nThrive, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.75%), maturity 1/29/29	1/21/2021		1,500,000		1,470,300			1,492,500
Therapy Brands, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 5/18/28	5/12/2021		1,500,000		1,492,650			1,492,500
CPS, Unitranche, 6.50% (Libor + 5.50%), maturity 2/28/25	3/1/2019		1,465,886		1,452,108			1,462,221
Stepping Stones, Unitranche, 7.25% (Libor + 6.25%), maturity 3/9/27	3/5/2021		1,431,844		1,416,216			1,431,844
Tecomet, Senior Secured 2017 Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/1/24⁽ⁱ⁾	1/10/2019		1,158,945		1,156,135			1,146,262
Solis Mammography, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.75%), maturity 4/17/28⁽ⁱ⁾	4/1/2021		1,063,333		1,053,633			1,065,992
Wedgewood Pharmacy, Senior Secured Initial Term Loan, 5.25% (Libor + 4.50%), maturity 3/31/28	2/24/2021		1,000,000		990,150			1,000,000
nThrive, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 1/28/28	1/15/2021		997,500		992,650			999,636
Veritext, Senior Secured Initial Term Loan (Second Lien), 6.88% (Libor + 6.75%), maturity 7/31/26	8/14/2018		1,000,000		996,540			997,500
Allied Benefit Systems, Senior Secured Initial Term B Loan, 5.50% (Libor + 4.50%), maturity 11/18/26	10/21/2020		992,500		979,588			992,500
UDG, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 4.25%), maturity 8/19/28^(q)	8/6/2021		1,000,000		990,000			990,000
Solis Mammography, Senior Secured Term Loan (Second Lien ), 8.75% (Libor + 8.00%), maturity 4/16/29	4/1/2021		1,000,000		985,300			992,500
Athena, Senior Secured Term B-1 Loan (First Lien), 4.38% (Libor + 4.25%), maturity 2/11/26⁽ⁱ⁾	9/18/2019		982,506		975,746			986,664
Alcami, Senior Secured Initial Term Loan (First Lien), 4.38% (Libor + 4.25%), maturity 7/14/25	7/12/2018		970,000		967,090			938,475
Dermatologists of Central States, Senior Secured Term Loan, 9.50% (Libor + 8.50%), maturity 4/20/22	3/12/2020		959,936		959,936			935,938
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 6.50% (Libor + 5.50%), maturity 5/9/25⁽ⁱ⁾	5/4/2018		789,913		783,021			781,027
MedRisk, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 5/10/28⁽ⁱ⁾	4/1/2021		500,000		495,075			500,307
Press Ganey, Senior Secured 2020 Incremental Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 7/24/26⁽ⁱ⁾	10/1/2020		497,503		493,123			499,700
AccentCare, Senior Secured 2021 Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 6/22/26⁽ⁱ⁾	6/15/2021		498,750		498,750			499,284
RMP & MedA/Rx, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 2/6/25	3/22/2021		493,750		488,870			492,516
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 2/6/25	2/27/2017		422,325		422,106			421,269
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾	6/28/2016		344,706		345,480			337,385
Alpaca, Senior Secured Revolver, 6.25% (Libor + 5.25%), maturity 4/19/24^(j)	9/30/2019		178,608		174,725			175,036
AmeriVet, Senior Secured Incremental Delayed Draw Term Loan, 5.75% (Libor + 4.75%), maturity 6/5/24⁽ⁱ⁾	8/27/2021		116,000		104,840			114,840
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/24	6/26/2019		-		(7,619	)		-

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/23/25	9/26/2019		3,920,000		3,893,105			3,920,000
RevSpring, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 10/11/25⁽ⁱ⁾	10/5/2018		3,890,000		3,886,850			3,882,649
Addison, Senior Secured Initial Term Loan, 4.88% (Libor + 4.75%), maturity 4/15/26	4/4/2019		2,932,500		2,895,000			2,932,500
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 3.88% (Libor + 3.75%), maturity 2/9/26⁽ⁱ⁾	1/16/2019		2,932,424		2,916,826			2,924,623
Fleetwash, Senior Secured Incremental Term Loan, 5.75% (Libor + 4.75%), maturity 10/1/24	9/25/2018		2,910,506		2,894,340			2,895,954
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 3.88% (Libor + 3.75%), maturity 2/2/26⁽ⁱ⁾	1/17/2019		2,930,200		2,923,102			2,881,421
CoolSys, Senior Secured Closing Date Initial Term Loan, 5.50% (Libor + 4.75%), maturity 8/11/28⁽ⁱ⁾	8/4/2021		2,500,000		2,469,444			2,512,246
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/9/27⁽ⁱ⁾	3/6/2020		2,468,750		2,448,678			2,478,773
HireRight, Senior Secured Initial Term Loan (Second Lien), 7.38% (Libor + 7.25%), maturity 7/10/26	7/2/2018		2,500,000		2,485,363			2,468,750
Newport Group, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 9/12/25⁽ⁱ⁾	8/9/2018		2,427,437		2,418,215			2,425,066
Vistage, Senior Secured Term B Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/10/25	2/6/2018		2,329,686		2,326,569			2,329,686
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 6/19/24	6/30/2017		2,325,836		2,325,836			2,325,836
Service Logic, Senior Secured Closing Date Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/29/27	10/23/2020		2,139,654		2,116,711			2,123,606
Veregy, Senior Secured Initial Term Loan, 7.00% (Libor + 6.00%), maturity 11/3/27	11/2/2020		1,985,000		1,931,756			1,970,113
Quantum Health, Senior Secured Amendment No. 1 Refinancing Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 12/22/27	12/18/2020		1,496,250		1,473,975			1,488,769

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

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, ~~2020~~2021

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

High Tech Industries (continued)
LANDesk, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 1/20/24⁽ⁱ⁾ $ 971,501 $ 964,055 $ 971,501
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 12/2/22 827,884 824,687 817,536
Sparta, Senior Secured New Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/21/24 789,937 790,250 780,062
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 13.25% (Libor + 12.25%), maturity 1/20/22^(i)(m) 1,000,000 996,979 600,000
McAfee, Senior Secured Initial Loan (Second Lien), 9.50% (Libor + 8.50%), maturity 9/29/25⁽ⁱ⁾ 500,000 492,791 505,805
Idera, Senior Secured Loan (Second Lien), 10.00% (Libor + 9.00%), maturity 6/28/27 500,000 504,806 500,000
MultiPlan, Senior Secured Initial Term Loan, 3.75% (Libor + 2.75%), maturity 6/7/23⁽ⁱ⁾ 500,000 495,975 500,000
HelpSystems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/19/26⁽ⁱ⁾ 497,500 496,297 497,500
DigiCert, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 4.00%), maturity 10/16/26⁽ⁱ⁾ 497,500 469,866 495,013
Imperva, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/12/26⁽ⁱ⁾ 498,737 495,620 493,063
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/15/23⁽ⁱ⁾ 481,158 479,909 472,150
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 4.75% (Libor + 3.75%), maturity 2/9/23⁽ⁱ⁾ 397,529 396,977 397,070

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/23/25 3,960,000 3,927,931 3,950,100
RevSpring, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 10/11/25⁽ⁱ⁾ 3,930,000 3,926,168 3,851,400
Addison, Senior Secured Initial Term Loan, 4.98% (Libor + 4.75%), maturity 4/15/26 2,962,500 2,915,513 2,955,094
Fleetwash, Senior Secured Incremental Term Loan, 5.75% (Libor + 4.75%), maturity 10/1/24 2,940,281 2,919,253 2,918,229
Service Logic, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/31/24⁽ⁱ⁾ 2,914,675 2,905,911 2,914,675
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 3.98% (Libor + 3.75%), maturity 2/2/26⁽ⁱ⁾ 2,960,100 2,951,626 2,694,154
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/9/27⁽ⁱ⁾ 2,493,750 2,469,721 2,490,774
HireRight, Senior Secured Initial Term Loan (Second Lien), 7.48% (Libor + 7.25%), maturity 7/10/26 2,500,000 2,481,901 2,475,000
Allied Universal, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 7/10/26⁽ⁱ⁾ 2,472,349 2,455,710 2,466,168
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 2/9/26⁽ⁱ⁾ 2,462,500 2,465,533 2,450,188
Newport Group, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 9/12/25⁽ⁱ⁾ 2,452,462 2,441,096 2,378,888
Vistage, Senior Secured Term B Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/10/25 2,335,958 2,331,041 2,330,118
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 6/19/24⁽ⁱ⁾ 2,375,801 2,375,801 2,157,464
Eliassen Group, Senior Secured Initial Term B Loan, 4.48% (Libor + 4.25%), maturity 11/5/24 1,487,495 1,481,968 1,487,495
OSG Billing Services, Senior Secured Term B Loan (First Lien), 4.73% (Libor + 4.50%), maturity 3/27/24 1,463,141 1,459,225 1,446,681
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 9.00%), maturity 2/2/26 1,268,604 1,268,604 1,268,604
WCG, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾ 997,500 987,877 997,500
Diversified, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 12/23/23 985,056 979,702 980,131
First Advantage, Senior Secured Term Facility (First Lien), 3.48% (Libor + 3.25%), maturity 1/31/27⁽ⁱ⁾ 997,500 992,694 978,797
Franklin Energy, Senior Secured Term B Loan (First Lien), 4.23% (Libor + 4.00%), maturity 8/14/26 990,000 987,704 920,700
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 6/3/26 494,987 491,520 493,750

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/15/25⁽ⁱ⁾ 3,930,000 3,873,595 3,875,963
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/30/24 3,401,368 3,390,285 3,316,334
DuBois Chemicals, Senior Secured Term Loan (Second Lien), 8.73% (Libor + 8.50%), maturity 9/30/27 3,000,000 2,967,566 2,977,500
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 10/4/21 2,788,959 2,785,926 2,677,401
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 1/31/25⁽ⁱ⁾ 2,661,750 2,669,856 2,418,296
Unifrax, Senior Secured USD Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾ 2,457,481 2,437,202 2,184,320
Q Holding, Senior Secured Term B Loan (2019), 6.00% (Libor + 5.00%), maturity 12/29/23 1,980,000 1,971,899 1,957,725
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.73% (Libor + 4.50%), maturity 9/30/26 1,799,928 1,760,713 1,786,428
Zep, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/12/24⁽ⁱ⁾ 1,941,216 1,939,534 1,832,327
Boyd Corp, Senior Secured Initial Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 9/6/26⁽ⁱ⁾ 2,000,000 2,002,020 1,768,186
Spartech, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 10/17/25 992,500 979,001 992,500
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/31/25⁽ⁱ⁾ 975,000 971,594 900,870
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 10/28/24⁽ⁱ⁾ 979,849 965,297 887,235
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 9/6/25⁽ⁱ⁾ 498,728 463,728 467,142

Services: Consumer
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 6/3/24⁽ⁱ⁾ 5,382,541 5,367,814 3,983,080
A Place For Mom, Senior Secured Term Loan, 4.75% (Libor + 3.75%), maturity 8/10/24 2,645,687 2,645,188 2,586,159
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 12/18/25 2,456,210 2,358,273 2,456,210
Weld North, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 2/15/25⁽ⁱ⁾ 2,444,868 2,425,614 2,438,756
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 5/14/26⁽ⁱ⁾ 2,074,250 2,070,043 1,977,290
LegalShield, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 5/1/25⁽ⁱ⁾ 1,927,000 1,915,817 1,876,187
Ned Stevens, Senior Secured Term A Loan, 6.75% (Libor + 5.75%), maturity 9/30/25^(j) 1,515,033 1,491,945 1,503,670
Smart Start, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 8/19/27 1,000,000 990,000 992,500
Spring Education, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 7/30/25⁽ⁱ⁾ 980,000 978,196 934,739
LegalShield, Senior Secured Incremental Term Loan, 0.00%, maturity 5/1/25⁽ⁱ⁾ 500,000 492,500 492,500
StubHub, Senior Secured USD Term B Loan, 3.73% (Libor + 3.50%), maturity 2/12/27⁽ⁱ⁾ 496,250 493,847 440,687
LegalShield, Senior Secured Initial Term Loan (Second Lien), 7.73% (Libor + 7.50%), maturity 5/1/26 27,778 27,778 27,639
Ned Stevens, Senior Secured Revolver, 5.75% (Libor + 4.75%), maturity 9/30/25^(j) - (2,614 ) -

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Services: Business (continued)
Eliassen Group, Senior Secured Initial Term B Loan, 4.38% (Libor + 4.25%), maturity 11/5/24	10/19/2018	$	1,479,992	$	1,475,717		$	1,479,992
Insight Global, Senior Secured Initial Term Loan, 6.75% (Libor + 6.00%), maturity 9/22/28⁽ⁱ⁾	9/22/2021		1,500,000		1,467,316			1,470,000
OSG Billing Services, Senior Secured Term B Loan (First Lien), 5.50% (Libor + 4.50%), maturity 3/27/24	3/26/2018		1,448,141		1,445,248			1,437,280
Epic Staffing Group, Senior Secured Initial Term Loan, 7.00% (Libor + 6.00%), maturity 2/5/27⁽ⁱ⁾	2/3/2021		1,250,473		1,220,773			1,244,221
First Advantage, Senior Secured Term B-1 Loan (First Lien), 2.88% (Libor + 2.75%), maturity 1/31/27⁽ⁱ⁾	1/23/2020		1,100,312		1,088,542			1,101,039
eResearch (ERT), Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 2/4/27⁽ⁱ⁾	12/1/2020		992,469		992,469			998,689
WCG, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾	12/13/2019		987,500		979,406			992,869
Divisions Maintenance Group, Senior Secured Term B Loan, 5.50% (Libor + 4.75%), maturity 5/27/28	5/21/2021		1,000,000		990,300			992,500
Franklin Energy, Senior Secured Term B Loan (First Lien), 4.13% (Libor + 4.00%), maturity 8/14/26	8/14/2019		980,000		978,042			955,500
Diversified, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 12/23/23	4/19/2019		899,347		895,564			890,353
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 6/3/26	10/31/2019		539,719		536,864			539,719
ImageFirst, Senior Secured Initial Term Loan, 5.25% (Libor + 4.50%), maturity 4/27/28⁽ⁱ⁾	4/26/2021		526,023		523,105			527,338
Therma Holdings, Senior Secured Term Loan, 4.50% (Libor + 3.75%), maturity 12/16/27⁽ⁱ⁾	9/29/2021		500,000		498,750			501,250
System One, Senior Secured Initial Term Loan, 5.25% (Libor + 4.50%), maturity 3/2/28	1/28/2021		498,867		496,517			497,620
Therma Holdings, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 12/16/27⁽ⁱ⁾	12/11/2020		416,210		412,166			416,210
Insight Global, Senior Secured Initial Revolving Loan, 6.75% (Libor + 6.00%), maturity 9/22/27⁽ⁱ⁾	9/23/2021		-		-			-

High Tech Industries
Qlik, Senior Secured 2021 Refinancing Term Loan, 4.13% (Libor + 4.00%), maturity 4/26/24⁽ⁱ⁾	3/29/2019		3,910,450		3,894,625			3,914,238
Netsmart, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/1/27⁽ⁱ⁾	9/29/2020		3,482,500		3,468,906			3,500,426
Masergy, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/16/24⁽ⁱ⁾	12/14/2016		3,428,571		3,423,218			3,428,571
Jaggaer, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾	8/9/2019		3,099,006		3,095,040			3,101,503
Ivanti Software, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 12/1/27⁽ⁱ⁾	11/20/2020		2,985,000		2,946,264			2,997,986
Infogroup, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 4/3/23	3/28/2017		2,867,393		2,855,087			2,845,888
Planview, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 12/17/27⁽ⁱ⁾	12/11/2020		2,638,937		2,613,470			2,650,250
Idera, Senior Secured Term B-1 Loan (First Lien), 4.50% (Libor + 3.75%), maturity 3/2/28⁽ⁱ⁾	6/27/2017		2,605,864		2,604,928			2,608,756
Precisely, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 4/24/28⁽ⁱ⁾	3/19/2021		2,500,000		2,487,800			2,500,181
Flexera Software, Senior Secured Term B-1 Loan (First Lien), 4.50% (Libor + 3.75%), maturity 3/3/28⁽ⁱ⁾	2/16/2020		2,396,779		2,396,779			2,402,554
ECi Software, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 11/9/27⁽ⁱ⁾	9/17/2020		1,985,000		1,977,294			1,988,468
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 3/5/27^(i)(o)	1/16/2020		1,975,009		1,877,720			1,966,904
QuickBase, Senior Secured Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 4/2/26	3/29/2019		1,955,000		1,948,442			1,945,225
Intermedia , Senior Secured New Term Loan (First Lien), 7.00% (Libor + 6.00%), maturity 7/21/25	7/13/2018		1,945,000		1,935,554			1,910,963
Bomgar, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 4/18/25⁽ⁱ⁾	5/25/2018		1,645,554		1,652,358			1,646,658
OEConnection, Senior Secured Initial Term Loan, 4.13% (Libor + 4.00%), maturity 9/25/26	9/24/2019		1,611,776		1,606,427			1,603,718
Navex Global, Senior Secured Initial Term Loan (First Lien), 3.38% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾	8/15/2018		1,455,000		1,444,951			1,446,365
Infoblox, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 12/1/27⁽ⁱ⁾	10/7/2020		997,500		993,196			1,000,574
Mediaocean, Senior Secured 2021 Incremental Term Loan, 4.13% (Libor + 4.00%), maturity 8/18/25⁽ⁱ⁾	8/2/2021		1,000,000		997,500			997,500
Barracuda, Senior Secured 2020 Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 2/12/25⁽ⁱ⁾	3/2/2018		990,000		990,000			993,988
SmartBear, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.25%), maturity 3/3/28	11/20/2020		997,500		987,800			992,513
Imperva, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/12/26⁽ⁱ⁾	9/23/2020		988,624		980,785			991,371
Veracode, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 11/5/27	10/30/2020		995,000		986,318			990,025
Unison, Unitranche, 8.00% (Libor + 7.00%), maturity 6/25/26	6/25/2020		987,500		966,850			987,500
Insurity, Senior Secured Closing Date Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 7/31/26⁽ⁱ⁾	7/18/2019		982,999		979,388			983,079
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 12/2/22	5/2/2018		819,386		816,986			815,290
Cloudera, Senior Secured Term Loan, 4.25% (Libor + 3.75%), maturity 8/10/28⁽ⁱ⁾	8/10/2021		500,000		495,000			495,000
HelpSystems, Senior Secured Seventh Amendment Refinancing Loan (First Lien), 4.75% (Libor + 4.00%), maturity 11/19/26⁽ⁱ⁾	12/19/2019		492,500		491,492			494,013
DigiCert, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 4.00%), maturity 10/16/26⁽ⁱ⁾	3/13/2020		492,500		469,417			493,184
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/15/23⁽ⁱ⁾	12/14/2016		476,158		475,272			476,158

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured 2021-1 Refinancing Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 12/15/25⁽ⁱ⁾	12/12/2018		3,890,450		3,843,668			3,898,897
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/30/24	5/11/2017		3,361,813		3,353,691			3,269,363
DuBois Chemicals, Senior Secured Term Loan (Second Lien) - 2019, 8.63% (Libor + 8.50%), maturity 9/30/27	10/8/2019		3,000,000		2,973,785			2,985,000
Vertellus, Senior Secured Initial Term Loan, 7.00% (Libor + 6.00%), maturity 12/22/27	12/18/2020		2,979,750		2,906,250			2,964,851
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 1/31/25⁽ⁱ⁾	1/26/2018		2,634,450		2,641,017			2,582,011
Unifrax, Senior Secured USD Term Loan (First Lien), 3.88% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾	11/5/2018		2,432,469		2,413,505			2,406,281
Boyd Corp, Senior Secured Initial Loan (Second Lien), 6.88% (Libor + 6.75%), maturity 9/6/26⁽ⁱ⁾	8/16/2018		2,000,000		2,001,744			1,997,471
Meridian Adhesives Group, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 7/24/28	7/16/2021		2,000,000		1,980,150			1,985,000
Q Holding, Senior Secured Term B Loan (2019), 6.00% (Libor + 5.00%), maturity 12/29/23	8/20/2019		1,960,000		1,953,268			1,937,950
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.63% (Libor + 4.50%), maturity 9/30/26	10/8/2019		1,781,888		1,748,755			1,772,979
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/31/25⁽ⁱ⁾	3/22/2018		965,000		962,289			960,085
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 10/28/24⁽ⁱ⁾	11/30/2018		969,773		958,504			952,896
Polytek, Senior Secured Term Loan, 5.75% (Libor + 4.75%), maturity 9/20/24	12/23/2020		496,254		491,404			495,013
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 9/6/25⁽ⁱ⁾	11/7/2018		493,639		465,229			487,882
Vertellus, Senior Secured Revolving Credit Loan, 7.00% (Libor + 6.00%), maturity 12/22/25	12/18/2020		-		(12,156	)		-

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

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, ~~2020~~2021

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):
Aerospace & Defense
CPI International, Senior Secured Second Amendment Incremental Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 7/26/24 $ 5,288,580 $ 5,237,621 $ 5,275,359
StandardAero, Senior Secured 2020 Term B-1 Loan, 3.73% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾ 3,541,154 3,531,095 3,182,096
Whitcraft, Unitranche, 7.00% (Libor + 6.00%), maturity 4/3/23 1,987,466 1,977,854 1,962,623
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 4/30/26 2,000,000 2,008,648 1,955,000
StandardAero, Senior Secured 2020 Term B-2 Loan, 3.73% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾ 1,903,846 1,898,438 1,710,804
Tronair, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 9/8/23 1,444,848 1,439,841 1,309,033
Amentum, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 1/29/27⁽ⁱ⁾ 997,500 966,227 990,604
API Technologies, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 5/9/26 992,462 963,556 980,057
Eton, Senior Secured Initial Term Loan (Second Lien), 8.23% (Libor + 8.00%), maturity 5/1/26 500,000 495,169 496,250
Eton, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 5/1/25⁽ⁱ⁾ 496,193 496,193 494,759
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 4/30/25 493,923 491,668 485,279
Novaria Group, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 1/27/27 481,818 477,007 478,205

Banking, Finance, Insurance & Real Estate
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 4/30/23 2,500,000 2,506,203 2,493,750
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 3/18/27⁽ⁱ⁾ 2,392,651 2,377,248 2,380,688
Kestra Financial, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 6/3/26⁽ⁱ⁾ 1,980,000 1,963,363 1,965,150
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 6.75% (Libor + 5.75%), maturity 10/31/22 1,966,333 1,943,176 1,956,501
Orion, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 9/24/27⁽ⁱ⁾ 1,500,000 1,485,000 1,492,602
Advisor Group, Senior Secured Initial Term B Loan, 5.23% (Libor + 5.00%), maturity 7/31/26⁽ⁱ⁾ 1,488,750 1,475,807 1,450,891
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 9/6/24 1,458,750 1,456,670 1,444,163
Mitchell International, Senior Secured Amendment No. 2 New Term Loan Facility (First Lien), 4.75% (Libor + 4.25%), maturity 11/29/24⁽ⁱ⁾ 1,000,000 946,074 982,081
Aperio, Senior Secured Initial Commitment, 5.23% (Libor + 5.00%), maturity 10/25/24 933,889 930,216 933,889
Sedgwick Claims, Senior Secured Initial Term Loan, 3.48% (Libor + 3.25%), maturity 12/31/25⁽ⁱ⁾ 496,212 495,611 481,834

Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾ 2,425,000 2,425,000 2,205,711
BAS, Senior Secured Repricing Term Loan, 4.75% (Libor + 3.75%), maturity 5/21/24 1,954,438 1,956,545 1,949,551
Excelitas, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/1/25⁽ⁱ⁾ 1,500,000 1,478,374 1,479,674
Edward Don, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 7/2/25 1,467,538 1,462,577 1,394,161
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 11/4/26⁽ⁱ⁾ 995,000 990,968 992,513
TriMark, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/28/24⁽ⁱ⁾ 986,153 885,776 601,297
Restaurant Technologies, Senior Secured Initial Loan (Second Lien), 6.73% (Libor + 6.50%), maturity 10/1/26 500,000 503,629 495,000
Duravant, Senior Secured Incremental Amendment No. 2 Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/19/24 496,212 496,212 492,491
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/2/24 489,924 493,185 486,250

Construction & Building
Tangent, Senior Secured Closing Date Term Loan (First Lien), 4.98% (Libor + 4.75%), maturity 11/30/24 1,815,789 1,803,401 1,802,171
PlayPower, Senior Secured Initial Term Loan, 5.73% (Libor + 5.50%), maturity 5/8/26 1,863,667 1,863,667 1,733,210
PlayCore, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 9/29/25 1,500,000 1,468,498 1,492,500
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 6/3/24⁽ⁱ⁾ 1,463,492 1,453,459 1,448,857
PlayCore, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 9/30/24 969,417 967,793 964,570
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 7/29/22 623,533 619,423 623,533
Hoffman Southwest, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 8/14/23 527,876 525,262 523,917
DiversiTech Corporation, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 6/2/25 500,000 489,324 497,500
Acuren, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 1/23/27⁽ⁱ⁾ 497,500 495,097 496,878

Containers, Packaging & Glass
ProAmpac, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 11/20/23⁽ⁱ⁾ 2,977,335 2,991,226 2,977,335
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 7/18/26 2,416,597 2,407,887 2,416,597
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 7/31/26⁽ⁱ⁾ 992,500 990,395 982,575
Tank Holding, Senior Secured 2020 Refinancing Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 3/26/26⁽ⁱ⁾ 990,000 986,352 972,876
Berlin Packaging, Senior Secured Initial Term Loan (First Lien), 3.00% (Libor + 3.00%), maturity 11/7/25⁽ⁱ⁾ 496,193 474,701 484,221
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 11/30/23⁽ⁱ⁾ 483,602 483,602 480,048
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 7.00% (Libor + 6.00%), maturity 11/12/21 483,212 482,776 479,588

Consumer Goods: Non-durable
Manna Pro, Senior Secured Term Loan, 7.00% (Libor + 6.00%), maturity 12/8/23 3,412,500 3,378,463 3,395,438
Augusta Sportswear Group, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 10/26/23 2,209,019 2,197,476 1,988,118
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/11/23 1,906,766 1,897,523 1,863,864
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾ 979,869 985,476 831,872

Automotive
Mavis, Senior Secured Closing Date Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 3/20/25⁽ⁱ⁾ 3,839,353 3,826,741 3,682,216
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 4/21/25 1,800,000 1,798,681 1,800,000
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 2/3/25 975,849 954,599 963,651
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 2/2/26 500,000 489,187 492,500
IXS, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 3/5/27⁽ⁱ⁾ 303,492 300,636 300,780

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 3/20/25 3,905,783 3,906,232 3,876,490
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 8/19/22 1,900,184 1,884,522 1,748,170
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 6/15/23 1,443,627 1,442,406 1,403,927

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Aerospace & Defense
CPI International, Senior Secured Second Amendment Incremental Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 7/26/24	10/1/2019	$	5,235,562	$	5,192,995		$	5,196,295
HDT Global, Senior Secured Initial Term Loan, 6.50% (Libor + 5.75%), maturity 7/8/27	6/30/2021		3,456,250		3,351,250			3,430,328
StandardAero, Senior Secured 2020 Term B-1 Loan, 3.63% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾	1/24/2019		3,279,521		3,272,196			3,213,697
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 4/30/26	5/10/2018		2,000,000		2,007,340			1,935,000
Whitcraft, Unitranche, 7.00% (Libor + 6.00%), maturity 4/3/23	3/6/2020		1,967,412		1,959,383			1,923,145
StandardAero, Senior Secured 2020 Term B-2 Loan, 3.63% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾	1/24/2019		1,763,183		1,759,245			1,727,794
Eton, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 5/1/25⁽ⁱ⁾	2/5/2020		1,486,177		1,481,953			1,486,177
Tronair, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%) cash, 0.50% PIK, maturity 9/8/23	9/30/2016		1,370,407		1,367,238			1,293,664
Amentum, Senior Secured Tranche 2 Term Loan (First Lien), 5.50% (Libor + 4.75%), maturity 1/29/27⁽ⁱ⁾	10/29/2020		995,000		977,784			1,005,282
Peraton, Senior Secured Term B Loan (First Lien), 4.50% (Libor + 3.75%), maturity 2/1/28⁽ⁱ⁾	2/23/2021		995,000		990,300			997,610
Amentum, Senior Secured Tranche 1 Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 1/29/27⁽ⁱ⁾	1/24/2020		987,500		961,261			988,722
API Technologies, Senior Secured Initial Term Loan (First Lien), 4.38% (Libor + 4.25%), maturity 5/9/26⁽ⁱ⁾	1/15/2020		982,412		957,941			957,063
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/30/25⁽ⁱ⁾	7/18/2019		489,105		487,248			476,607
Novaria Group, Senior Secured Initial Term Loan, 6.50% (Libor + 5.50%), maturity 1/27/27	1/24/2020		481,818		477,777			466,159

Banking, Finance, Insurance & Real Estate
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 3/18/27⁽ⁱ⁾	2/6/2020		2,469,063		2,455,373			2,469,539
American Beacon Advisors, Senior Secured Tranche D Term Loan (Second Lien), 9.00% (Libor + 8.00%), maturity 4/30/25	10/31/2017		2,117,133		2,122,223			2,117,133
Confluence, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 7/31/28⁽ⁱ⁾	7/22/2021		2,000,000		1,990,000			1,997,500
Kestra Financial, Senior Secured Initial Term Loan, 4.38% (Libor + 4.25%), maturity 6/3/26⁽ⁱ⁾	4/29/2019		1,960,000		1,946,087			1,958,835
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 6.75% (Libor + 5.75%), maturity 10/31/22	10/9/2015		1,937,653		1,934,907			1,889,212
Orion, Senior Secured 2021 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 9/24/27⁽ⁱ⁾	8/4/2020		1,488,769		1,473,769			1,492,116
EPIC Insurance, Unitranche, 6.00% (Libor + 5.25%), maturity 9/30/28⁽ⁱ⁾	8/27/2021		1,500,000		1,470,000			1,470,000
Advisor Group, Senior Secured Term B-1 Loan, 4.63% (Libor + 4.50%), maturity 7/31/26⁽ⁱ⁾	1/31/2020		1,032,059		1,026,793			1,035,151
LERETA, Senior Secured Initial Term Loan, 6.00% (Libor + 5.25%), maturity 7/30/28	7/27/2021		1,000,000		990,000			995,000
SIAA, Unitranche, 7.25% (Libor + 6.25%), maturity 4/28/28	4/21/2021		1,000,000		981,704			992,500
Mitchell International, Senior Secured Amendment No. 2 New Term Loan Facility (First Lien), 4.75% (Libor + 4.25%), maturity 11/29/24⁽ⁱ⁾	7/6/2020		990,000		944,203			990,000
Sedgwick Claims, Senior Secured Initial Term Loan, 3.38% (Libor + 3.25%), maturity 12/31/25⁽ⁱ⁾	2/12/2020		491,162		490,660			487,857
EPIC Insurance, Senior Secured Revolving Loan, 6.00% (Libor + 5.25%), maturity 9/30/27⁽ⁱ⁾	8/27/2021		-		-			-

Containers, Packaging & Glass
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 7/18/26	7/17/2019		2,887,062		2,875,132			2,872,627
Resource Label Group, Senior Secured Closing Date Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 7/7/28⁽ⁱ⁾	7/2/2021		1,632,911		1,623,663			1,637,324
TricorBraun, Senior Secured Closing Date Initial Term Loan (First Lien), 3.75% (Libor + 3.25%), maturity 3/3/28⁽ⁱ⁾	1/29/2021		1,611,238		1,603,757			1,604,610
Potters Industries, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 12/14/27⁽ⁱ⁾	11/19/2020		1,492,500		1,479,588			1,496,231
Technimark, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 7/7/28⁽ⁱ⁾	6/30/2021		1,496,250		1,488,900			1,493,537
Tekni-Plex, Senior Secured Tranche B-3 Initial Term Loan, 4.50% (Libor + 4.00%), maturity 9/15/28⁽ⁱ⁾	7/29/2021		1,000,000		997,500			1,002,500
Lacerta, Senior Secured Term Loan, 6.25% (Libor + 5.50%), maturity 12/30/26	2/8/2021		992,500		982,500			990,019
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 7/31/26⁽ⁱ⁾	7/25/2019		982,500		980,733			984,766
Tank Holding, Senior Secured 2020 Refinancing Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 3/26/26⁽ⁱ⁾	3/21/2019		980,000		977,014			977,241
Pregis Corporation, Senior Secured Third Amendment Refinancing Term Loan (First Lien), 4.50% (Libor + 4.00%), maturity 7/31/26	12/9/2020		500,000		497,848			496,250
Applied Adhesives, Senior Secured Term A Loan, 5.75% (Libor + 5.00%), maturity 3/12/27	3/12/2021		497,500		491,941			495,013
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 7.00% (Libor + 6.00%), maturity 5/12/22⁽ⁱ⁾	7/7/2017		465,186		464,773			465,186
Applied Adhesives, Senior Secured Revolving Loan, 5.75% (Libor + 5.00%), maturity 3/12/27	3/12/2021		26,311		25,600			26,180

Services: Consumer
A Place For Mom, Senior Secured Term Loan, 4.75% (Libor + 3.75%), maturity 8/10/24	7/28/2017		2,618,412		2,618,133			2,598,774
Weld North, Senior Secured 2020 Term Loan, 4.75% (Libor + 4.00%), maturity 12/21/27⁽ⁱ⁾	12/21/2020		2,426,531		2,426,531			2,433,586
LegalShield, Senior Secured Initial Term Loan (First Lien), 3.38% (Libor + 3.25%), maturity 5/1/25⁽ⁱ⁾	11/21/2018		1,927,000		1,918,180			1,922,379
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 3.13% (Libor + 3.00%), maturity 5/14/26⁽ⁱ⁾	5/8/2019		1,532,172		1,529,651			1,529,245
Ned Stevens, Senior Secured Term A Loan, 6.75% (Libor + 5.75%), maturity 9/30/25^(j)	9/30/2019		1,421,211		1,402,976			1,417,658
Teaching Strategies, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.25%), maturity 8/31/28⁽ⁱ⁾	8/19/2021		1,000,000		990,000			997,500
Smart Start, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 8/19/27⁽ⁱ⁾	8/14/2020		990,025		981,503			993,165
Spring Education, Senior Secured Initial Term Loan (First Lien), 4.38% (Libor + 4.25%), maturity 7/30/25⁽ⁱ⁾	7/26/2018		970,000		968,532			944,870
LegalShield, Senior Secured New Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 5/1/25	9/11/2020		495,000		488,430			492,525
StubHub, Senior Secured USD Term B Loan, 3.63% (Libor + 3.50%), maturity 2/12/27⁽ⁱ⁾	1/31/2020		491,250		489,243			481,250
Ned Stevens, Senior Secured Revolving Loan, 5.75% (Libor + 4.75%), maturity 9/30/25^(j)	9/30/2019		-		(2,614	)		-

Transportation: Cargo
Evans Network, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 8/19/28⁽ⁱ⁾	8/6/2021		3,673,469		3,633,469			3,659,694
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 10/12/24⁽ⁱ⁾	11/20/2018		3,581,120		3,578,151			3,544,454
Capstone Logistics, Senior Secured Closing Date Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/12/27	11/12/2020		1,985,000		1,965,991			1,980,038
Worldwide Express, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 7/26/28⁽ⁱ⁾	7/23/2021		1,500,000		1,488,750			1,506,666

Construction & Building
Tangent, Senior Secured Closing Date Term Loan (First Lien), 4.88% (Libor + 4.75%), maturity 11/30/24	10/2/2019		1,797,413		1,787,360			1,792,920
PlayPower, Senior Secured Initial Term Loan, 5.63% (Libor + 5.50%), maturity 5/8/26	5/10/2019		1,761,778		1,761,778			1,704,520
PlayCore, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 9/29/25	2/7/2020		1,500,000		1,473,840			1,496,250
DiversiTech Corporation, Senior Secured Tranche B-2 Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/2/24⁽ⁱ⁾	2/23/2018		1,448,494		1,440,951			1,450,064
Aegion, Senior Secured Initial Term Loan, 5.50% (Libor + 4.75%), maturity 5/17/28	4/1/2021		1,000,000		995,150			997,500
PlayCore, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾	9/18/2017		959,423		958,097			957,154
CHI Overhead Doors, Senior Secured Third Amendment Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 7/31/25⁽ⁱ⁾	7/28/2015		617,298		617,619			618,601
DiversiTech Corporation, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 6/2/25	2/5/2020		500,000		491,687			500,000
Acuren, Senior Secured Initial Term Loan, 4.13% (Libor + 4.00%), maturity 1/23/27⁽ⁱ⁾	1/17/2020		479,999		477,992			481,726
Hoffman Southwest, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 8/14/23	5/16/2019		446,460		446,317			440,879

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

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, ~~2020~~2021

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost		Value		Acquisition Date	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):
Transportation: Cargo
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 10/12/24⁽ⁱ⁾	$	3,614,314	$	3,610,514	$	3,425,590
Transplace, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 10/7/24		2,448,360		2,442,858		2,442,239
Capstone Logistics, Senior Secured Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 10/7/21⁽ⁱ⁾		1,160,469		1,160,608		1,160,469
Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 3.88% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾							4/20/2018	$	2,037,185	$	2,037,185	$	1,992,319
Excelitas, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/1/25⁽ⁱ⁾							2/19/2020		1,500,000		1,481,935		1,504,755
Edward Don, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 7/2/25							6/26/2018		1,370,943		1,367,622		1,302,395
Flow Control Group, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 3/31/28⁽ⁱ⁾							3/17/2021		1,179,520		1,176,872		1,179,901
Cole-Parmer, Senior Secured Term B-1 Loan (First Lien), 3.88% (Libor + 3.75%), maturity 11/4/26⁽ⁱ⁾							10/29/2019		985,000		981,755		986,121
TriMark, Senior Secured Initial Term Loan (First Lien), 3.63% (Libor + 3.50%), maturity 8/28/24							6/13/2018		975,988		899,104		595,353
Restaurant Technologies, Senior Secured Initial Loan (Second Lien), 6.63% (Libor + 6.50%), maturity 10/1/26							2/11/2020		500,000		503,133		498,750
Infinite Electronics, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 3/2/28							2/24/2021		498,750		497,575		496,256
Duravant, Senior Secured Incremental Amendment No. 5 Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 5/19/28⁽ⁱ⁾							3/5/2020		492,424		492,424		492,715
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/2/24⁽ⁱ⁾							10/24/2018		484,887		487,447		487,131
Flow Control Group, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 3/31/28⁽ⁱ⁾							7/27/2021		145,469		145,469		145,516

Automotive
Highline, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 11/9/27⁽ⁱ⁾							10/29/2020		2,856,477		2,788,689		2,867,352
Rough Country, Senior Secured Term Loan B, 4.25% (Libor + 3.50%), maturity 7/28/28							7/26/2021		2,000,000		1,995,000		1,985,000
Truck Hero, Senior Secured Initial Term Loan, 4.00% (Libor + 3.25%), maturity 1/31/28⁽ⁱ⁾							1/20/2021		1,492,500		1,492,500		1,490,342
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 2/3/25							11/28/2018		970,000		952,451		962,725
IXS, Senior Secured Initial Term Loan, 5.00% (Libor + 4.25%), maturity 3/5/27⁽ⁱ⁾							2/27/2020		796,490		794,425		795,879
Wheel Pros, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 5/11/28⁽ⁱ⁾							4/23/2021		500,000		495,300		500,489
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 7.75% (Libor + 6.75%), maturity 2/2/26							2/7/2020		500,000		490,968		496,250

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 3/20/25							3/16/2018		3,859,581		3,860,102		3,820,986
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 8/19/22							9/2/2015		1,880,184		1,872,587		1,819,078
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 6/15/23							6/14/2016		1,428,589		1,428,954		1,396,446

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 6/8/28⁽ⁱ⁾							6/8/2021		2,200,022		2,200,022		2,207,071
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 8/25/25							8/22/2018		1,940,000		1,934,789		1,915,750
Dessert Holdings, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 6/9/28							6/7/2021		1,500,000		1,488,900		1,488,750
Monogram Foods, Senior Secured Cov-Lite Term Loan B, 4.50% (Libor + 4.00%), maturity 8/31/28							8/13/2021		997,500		987,500		990,019

Forest Products & Paper
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/21/23⁽ⁱ⁾		2,904,644		2,894,898		2,488,009	11/9/2016		2,400,069		2,394,883		2,314,317
Loparex, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 7/31/26		1,485,000		1,472,127		1,473,863
Loparex, Senior Secured Initial Term Loan (First Lien), 4.63% (Libor + 4.50%), maturity 7/31/26							7/29/2019		1,470,000		1,459,156		1,466,325
Hoffmaster Group, Senior Secured Initial Term Loan (Second Lien), 10.50% (Libor + 9.50%), maturity 11/21/24		1,250,000		1,250,000		1,209,375	2/7/2020		1,250,000		1,250,000		1,209,375

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (2018), 4.98% (Libor + 4.75%), maturity 11/20/25		1,965,000		1,949,614		1,965,000
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 4.75% (Libor + 3.75%), maturity 8/25/25		1,960,000		1,953,448		1,945,300
Consumer Goods: Non-durable
Augusta Sportswear Group, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 10/26/23							11/2/2016		2,087,472		2,079,793		2,035,285
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.50%), maturity 9/11/23							9/29/2016		1,898,373		1,892,117		1,879,389
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾							10/17/2018		969,803		974,281		953,397

Media: Advertising, Printing & Publishing
Ansira, Unitranche, 7.50% (Libor + 6.50%), maturity 12/20/24		1,976,306		1,966,499		1,581,046
Northstar, Senior Secured Term Loan, 7.25% (Libor + 6.25%), maturity 6/7/22		1,402,843		1,402,843		1,385,308
Vestcom International, Senior Secured L/C Collaterilized, 5.00% (Libor + 4.00%), maturity 12/19/23		781,751		784,077		773,933
Ansira, Unitranche, 7.50% (Libor + 6.50%) PIK, maturity 12/20/24							12/20/2016		2,129,402		2,122,728		1,362,818
Northstar, Senior Secured Term Loan, 6.75% (Libor + 6.25%) cash, 1.00% PIK, maturity 6/7/24							5/8/2017		1,373,356		1,373,356		1,328,722

Consumer Goods: Durable
Strategic Partners, Senior Secured Initial Term Loan, 4.75% (Libor + 3.75%), maturity 6/30/23⁽ⁱ⁾		2,291,799		2,289,275		2,280,340
Environmental Industries
Denali Water Solutions, Senior Secured Closing Date Term Loan, 5.00% (Libor + 4.25%), maturity 3/27/28							3/18/2021		1,995,000		1,975,000		1,972,556
Culligan, Senior Secured Initial Term B Loan, 4.50% (Libor + 4.00%), maturity 7/31/28⁽ⁱ⁾							6/17/2021		500,000		497,500		502,301

Retail
Grocery Outlet, Senior Secured 2020 Term Loan (First Lien), 2.98% (Libor + 2.75%), maturity 10/22/25⁽ⁱ⁾		1,269,483		1,267,497		1,253,955
Telecommunications
ORBCOMM, Senior Secured Closing Date Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 9/1/28⁽ⁱ⁾							6/17/2021		1,000,000		995,000		1,000,845

Utilities: Electric
Systems Control, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 3/28/25							6/15/2021		994,845		989,933		989,871

Metals & Mining
Dynatect, Senior Secured Term B Loan, 5.50% (Libor + 4.50%), maturity 9/30/22		990,317		989,788		972,987	8/16/2019		939,483		938,954		920,694

Hotel, Gaming & Leisure
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.00% (Libor + 5.00%), maturity 10/21/23		1,119,231		1,112,450		951,346	10/19/2016		1,119,231		1,114,576		895,385

Health Care Equipment & Services
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾		581,851		576,553		556,479
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.38% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾							8/2/2019		528,047		524,160		527,913

Consumer Goods: Durable
Careismatic Brands, Senior Secured Initial Term Loan (First Lien), 3.75% (Libor + 3.25%), maturity 1/6/28⁽ⁱ⁾							1/22/2021		498,750		497,575		498,480

Total Bank Loans			$	348,947,419	$	340,683,844				$	364,195,915	$	362,965,687

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)^(g)(h):

Services: Business
DBi Services, Class A-1 Preferred Units (800.53 units)^(k) $ 800,535 $ 576,385
DBi Services, Class B Common Shares (169,362.31 shares)^(l)(m) - -

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $220,135)^(j)(m)(n)(o) 261,438 220,135

Healthcare & Pharmaceuticals
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $8,419)^(j)(m)(o)(p) 58,608 8,419

Total Equity and Preferred Shares $ 1,120,581 $ 804,939

Total Portfolio Investments^(r) $ 350,068,000 $ 341,488,783

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

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, 2021

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par	Cost		Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.1%)^(g)(h):

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $251,476)^(j)(k)(l)(m)	9/30/2019		$	261,438	$	251,476

Chemicals, Plastics & Rubber
Vertellus, Series A Units (1,651 Series A units, Fair value of $169,327)^(k)(m)(p)	12/22/2020			165,138		169,327

Healthcare & Pharmaceuticals
Alpaca, Class A Units (45,746 Class A Units, Fair value of $54,970)^(j)(k)(m)(n)	4/19/2019			80,512		54,970

Total Equity and Preferred Shares			$	507,088	$	475,773

Total Portfolio Investments^(r)			$	364,703,003	$	363,441,460

	(a)	All companies are located in the United States of America, unless otherwise noted.
	(b)	Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject to interest rate floors which can vary based on the contractual agreement with the borrower. Due dates represent the contractual maturity date.
	(c)	All loans are income-producing, unless otherwise noted.
	(d)	All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
	(e)	All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
	(f)	Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(g)	Percentages are calculated using fair value of investments over net assets.
	(h)	As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
	(i)	Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(j)	Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., 'co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
	(k)	~~Represents an investment owned by APD Dbi Preferred, Inc., a holding company for the investment in DBi.~~
	~~(l)~~	~~Represents an investment owned by APD Dbi Common, Inc., a holding company for the investment in DBi.~~

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

~~Audax Credit BDC Inc.~~

~~Schedule of Investments (Continued)~~

~~As of September 30, 2020~~

~~(Expressed in U.S. Dollars)~~

~~(unaudited)~~

	~~(m)~~	Investment is non-income producing.
	~~(n)~~(l)	Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	~~(o)~~(m)	Other net assets of $0 at the aggregator levels are included in the fair value of the investments when using the net asset value as a practical expedient.
	~~(p)~~(n)	Represents an investment in APD ALP Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	~~(q)~~(o)	The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom.
(p)	Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(q)	The borrower for UDG Healthcare, Congachant Limited, is located in Ireland.
(r)	At September 30, ~~2020,~~2021, the cost of investments for income tax purposes was ~~$350,068,000~~$364,703,003, the gross unrealized depreciation for federal tax purposes was ~~$9,547,748,~~$3,082,368, the gross unrealized appreciation for federal income tax purposes was ~~$968,531,~~$1,820,825, and the net unrealized depreciation was ~~$8,579,217.~~$1,261,543.

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

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, ~~2019~~2020

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (99.6%)^(g)(h):

Healthcare & Pharmaceuticals
Radiology Partners, Senior Secured Term B Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/9/25⁽ⁱ⁾ $ 5,187,469 $ 5,149,488 $ 5,211,316
Pathway, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/20/24 4,956,161 4,911,269 4,943,769
Tecomet, Senior Secured 2017 Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/24 3,959,391 3,942,690 3,949,491
Advarra, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26^(j) 3,939,427 3,899,562 3,909,879
Young, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/7/24 3,834,156 3,823,748 3,805,398
Specialty Care, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 9/1/23 3,342,954 3,346,536 3,334,596
Zest Dental, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/14/25⁽ⁱ⁾ 3,333,213 3,356,177 3,199,884
Veritext, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 8/1/25 3,187,891 3,173,500 3,171,951
Confluent Health, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 6/24/26 2,985,000 2,957,225 2,962,613
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/18/23 2,906,775 2,886,868 2,874,073
PharMedQuest, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 10/31/24 2,500,000 2,463,488 2,481,250
Waystar, Senior Secured Term Loan B, 5.91% (Libor + 4.00%), maturity 10/22/26 2,500,000 2,487,836 2,481,250
MedRisk, Senior Secured Initial Term Loan (First Lien), 4.66% (Libor + 2.75%), maturity 12/27/24 2,450,000 2,455,219 2,450,000
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 9/23/24 2,446,014 2,426,873 2,421,554
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/1/24 2,316,088 2,305,375 2,316,088
MedRisk, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 12/29/25 2,100,000 2,074,832 2,100,000
Zelis RedCard, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 9/30/26⁽ⁱ⁾ 2,000,000 1,980,688 2,014,889
Press Ganey, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾ 1,995,000 1,987,841 2,011,774
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/22/25 1,980,000 1,962,728 1,957,725
CareCentrix, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 4/3/25 1,912,500 1,904,900 1,912,500
Premise Health, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/10/25 1,829,786 1,838,127 1,825,212
Alpaca, Senior Secured Term Loan, 6.16% (Libor + 4.25%), maturity 4/19/24^(j) 1,674,127 1,650,502 1,669,942
CPS, Unitranche, 7.16% (Libor + 5.25%), maturity 2/28/25 1,492,500 1,472,625 1,488,769
Stepping Stones, Unitranche, 7.41% (Libor + 5.50%), maturity 12/12/24 1,484,409 1,477,320 1,467,709
Ensemble, Senior Secured Closing Date Term Loan, 5.66% (Libor + 3.75%), maturity 8/3/26⁽ⁱ⁾ 997,500 992,719 1,006,949
Veritext, Senior Secured Initial Term Loan (Second Lien), 8.91% (Libor + 7.00%), maturity 7/31/26 1,000,000 995,613 995,000
Upstream Rehabilitation, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/20/26 1,000,000 995,045 992,500
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/30/23⁽ⁱ⁾ 984,694 990,391 978,540
Alcami, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/14/25 987,500 983,389 972,688
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 7.41% (Libor + 5.50%), maturity 5/9/25 987,500 975,453 960,344
Dermatologists of Central States, Senior Secured Term Loan, 8.41% (Libor + 6.50%), maturity 4/20/22 977,310 970,785 960,207
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾ 922,022 926,900 920,657
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 9/1/24 850,000 843,325 850,000
Athena, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/11/26⁽ⁱ⁾ 497,494 495,129 500,973
RMP & MedA/Rx, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 3/2/22 441,647 440,553 441,647
Injured Workers Pharmacy, Senior Secured Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/22/20 378,724 375,038 375,883
Alpaca, Senior Secured Revolver, 6.16% (Libor + 4.25%), maturity 4/19/24^(j) 134,215 130,332 133,879
Advarra, Senior Secured Initial Revolving Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26^(j) - (7,619 ) -

High Tech Industries
Qlik, Senior Secured 2019 Incremental Term Loan, 6.16% (Libor + 4.25%), maturity 4/26/24 3,980,000 3,954,501 3,950,150
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 2/12/25⁽ⁱ⁾ 3,451,222 3,464,246 3,477,852
Masergy, Senior Secured Initial Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 12/16/24 3,428,571 3,420,116 3,411,429
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 8/16/24 3,421,688 3,397,118 3,387,471
Sparta, Senior Secured New Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/21/24 3,421,250 3,423,008 3,344,272
Jaggaer, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾ 3,154,345 3,150,077 3,166,174
Infogroup, Senior Secured Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 4/3/23 2,919,937 2,895,405 2,890,738
McAfee, Senior Secured Term B USD Loan, 5.66% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾ 2,864,431 2,875,358 2,883,023
eResearch (ERT), Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 5/2/23⁽ⁱ⁾ 2,538,022 2,538,022 2,538,022
ECi Software Solutions, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 9/27/24⁽ⁱ⁾ 2,463,579 2,451,402 2,468,662
EverCommerce, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 8/23/25 2,184,679 2,142,420 2,179,217
Idera, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/28/24 2,146,089 2,145,337 2,146,089
Intermedia , Senior Secured New Term Loan (First Lien), 7.91% (Libor + 6.00%), maturity 7/21/25⁽ⁱ⁾ 1,980,000 1,963,699 1,985,107
Flexera Software, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 2/26/25⁽ⁱ⁾ 1,965,000 1,970,591 1,973,626
QuickBase, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/2/26 1,990,000 1,981,139 1,970,100
GlobalLogic, Senior Secured Initial Term Loan, 5.16% (Libor + 3.25%), maturity 8/1/25⁽ⁱ⁾ 1,728,438 1,719,948 1,728,438
Bomgar, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/18/25 1,723,750 1,733,891 1,702,203
Liaison, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 12/20/26⁽ⁱ⁾ 1,500,000 1,496,250 1,496,250
OEConnection, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/25/26 1,496,250 1,488,267 1,485,028
Navex Global, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾ 1,481,250 1,467,074 1,484,310
Compusearch Software Systems, Senior Secured Term Loan C, 6.16% (Libor + 4.25%), maturity 5/8/23 1,432,979 1,432,391 1,425,814
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 5/4/26⁽ⁱ⁾ 1,080,625 1,082,379 1,089,829
Insurity, Senior Secured Closing Date Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26 1,000,000 995,219 997,500
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 12.16% (Libor + 10.25%), maturity 1/20/22 1,000,000 995,441 988,750
LANDesk, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 1/20/24⁽ⁱ⁾ 978,627 969,988 981,924
Corsair, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/28/24 982,444 978,622 967,707
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 12/2/22 834,254 830,477 825,912
HelpSystems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/19/26⁽ⁱ⁾ 500,000 498,750 498,750
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 12/15/23 484,908 483,405 482,484
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 5.66% (Libor + 3.75%), maturity 2/9/23⁽ⁱ⁾ 404,507 403,788 401,013

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (99.3%)^(g)(h):

Healthcare & Pharmaceuticals
Advarra, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26	6/26/2019	$	4,188,729	$	4,154,267	$	4,188,728
Radiology Partners, Senior Secured Term B Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/25⁽ⁱ⁾	6/28/2018		4,215,792		4,347,260		4,176,926
Tecomet, Senior Secured 2017 Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/1/24	1/10/2019		3,918,622		3,904,639		3,879,434
Young, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/7/24	11/6/2017		3,794,840		3,786,074		3,737,916
Confluent Health, Senior Secured Initial Term Loan, 5.24% (Libor + 5.00%), maturity 6/24/26	6/24/2019		3,453,734		3,424,590		3,453,733
Specialty Care, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 9/1/23	8/23/2017		3,308,843		3,311,499		3,308,842
Zest Dental, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 3/14/25⁽ⁱ⁾	5/30/2018		3,247,592		3,264,389		3,125,437
Veritext, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 8/1/25⁽ⁱ⁾	8/14/2018		3,153,327		3,139,037		3,090,261
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 6.50% (Libor + 5.50%), maturity 8/18/23	8/18/2016		2,880,590		2,864,047		2,786,971
Packaging Coordinators, Senior Secured Term B Loan (First Lien), 4.50% (Libor + 3.75%), maturity 11/30/27⁽ⁱ⁾	9/25/2020		2,500,000		2,490,762		2,511,458
Waystar, Senior Secured Term Loan B, 4.24% (Libor + 4.00%), maturity 10/22/26	9/19/2019		2,481,250		2,472,081		2,462,641
MedRisk, Senior Secured Initial Term Loan (First Lien), 2.99% (Libor + 2.75%), maturity 12/27/24	1/31/2018		2,425,000		2,429,293		2,425,000
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 9/23/24	10/26/2017		2,421,519		2,404,861		2,409,412
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/1/24	8/8/2017		2,316,088		2,307,504		2,316,088
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 7/10/25	8/15/2018		2,306,194		2,312,549		2,306,194
PharMedQuest, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 10/31/24^(j)	11/6/2019		2,298,398		2,272,767		2,298,398
MedRisk, Senior Secured Initial Loan (Second Lien), 6.99% (Libor + 6.75%), maturity 12/29/25	12/18/2018		2,100,000		2,078,820		2,100,000
Press Ganey, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾	7/23/2019		1,975,000		1,968,810		1,967,793
Zelis RedCard, Senior Secured Initial Term Loan, 4.99% (Libor + 4.75%), maturity 9/30/26⁽ⁱ⁾	9/27/2019		1,945,092		1,931,721		1,955,747
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 4.74% (Libor + 4.50%), maturity 12/22/25	12/19/2018		1,960,000		1,946,588		1,937,950
CareCentrix, Senior Secured Initial Term Loan, 4.74% (Libor + 4.50%), maturity 4/3/25⁽ⁱ⁾	4/2/2018		1,862,500		1,856,296		1,831,763
Alpaca, Senior Secured Term Loan, 7.75% (Libor + 6.75%), maturity 4/19/24^(j)	4/19/2019		1,657,302		1,636,678		1,591,010
Symplr, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 12/22/27⁽ⁱ⁾	11/23/2020		1,500,000		1,477,500		1,488,750
Upstream Rehabilitation, Senior Secured Term Loan, 4.74% (Libor + 4.50%), maturity 11/20/26⁽ⁱ⁾	10/24/2019		1,488,750		1,486,743		1,473,863
CPS, Unitranche, 6.50% (Libor + 5.50%), maturity 2/28/25^(j)	3/1/2019		1,477,608		1,461,164		1,444,361
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24^(j)	7/15/2019		1,469,147		1,463,066		1,436,091
Allied Benefit Systems, Senior Secured Term Loan B, 5.50% (Libor + 4.75%), maturity 11/18/26	10/21/2020		1,000,000		985,273		992,500
Ensemble, Senior Secured Closing Date Term Loan, 3.99% (Libor + 3.75%), maturity 8/3/26⁽ⁱ⁾	7/24/2019		987,500		983,378		990,414
Athena, Senior Secured Term B Loan (First Lien), 4.74% (Libor + 4.50%), maturity 2/11/26⁽ⁱ⁾	9/18/2019		987,443		979,417		989,278
Veritext, Senior Secured Initial Term Loan (Second Lien), 7.24% (Libor + 7.00%), maturity 7/31/26	8/14/2018		1,000,000		996,131		987,500
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 6.50% (Libor + 5.50%), maturity 5/9/25	5/4/2018		977,423		967,355		955,431
Alcami, Senior Secured Initial Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 7/14/25	7/12/2018		977,500		974,068		945,731
Dermatologists of Central States, Senior Secured Term Loan, 8.00% (Libor + 7.00%), maturity 4/20/22^(j)	3/12/2020		967,378		967,378		935,938
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾	6/28/2016		912,467		915,992		902,122
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 9/1/24	3/19/2018		850,000		844,525		850,000
Press Ganey, Senior Secured 2020 Incremental Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 7/24/26⁽ⁱ⁾	10/1/2020		500,000		495,149		498,750
Waystar, Senior Secured 2020 Incremental Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/22/26	9/15/2020		498,750		497,500		495,009
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/6/25	2/27/2017		430,606		430,014		430,606
Alpaca, Senior Secured Revolver, 7.75% (Libor + 6.75%), maturity 4/19/24^(j)	9/30/2019		232,967		229,084		223,648
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/24	6/26/2019		114,286		106,667		114,286
Stepping Stones, Senior Secured COVID-19 Revolving Loan, 6.75% (Libor + 5.75%), maturity 6/30/21^(j)	11/5/2020		30,537		30,537		29,850

High Tech Industries
Qlik, Senior Secured 2019 Incremental Term Loan, 4.49% (Libor + 4.25%), maturity 4/26/24	3/29/2019		3,940,000		3,919,979		3,910,450
Netsmart, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/1/27⁽ⁱ⁾	9/29/2020		3,500,000		3,484,841		3,513,749
Masergy, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/16/24	12/14/2016		3,428,571		3,421,842		3,428,571
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.49% (Libor + 6.25%), maturity 8/16/24⁽ⁱ⁾	9/11/2017		3,387,038		3,367,343		3,385,883
Jaggaer, Senior Secured Initial Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾	8/9/2019		3,122,723		3,118,268		3,128,371
Ivanti Software, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 12/1/27⁽ⁱ⁾	11/20/2020		3,000,000		2,955,819		3,009,205
EverCommerce, Senior Secured Initial Term Loan, 5.74% (Libor + 5.50%), maturity 8/23/25	8/19/2019		2,978,453		2,920,009		2,978,453
Infogroup, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 4/3/23⁽ⁱ⁾	3/28/2017		2,889,912		2,872,270		2,737,616
Idera, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/28/24⁽ⁱ⁾	6/27/2017		2,618,959		2,617,482		2,622,683
ECi Software, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 11/9/27⁽ⁱ⁾	9/17/2020		2,000,000		1,991,387		2,004,324
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 3/5/27^(i)(q)	1/16/2020		1,990,000		1,878,212		1,983,324
Flexera Software, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/26/25⁽ⁱ⁾	1/25/2018		1,945,000		1,950,930		1,953,467
QuickBase, Senior Secured Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 4/2/26	3/29/2019		1,970,000		1,962,273		1,950,300
Intermedia , Senior Secured New Term Loan (First Lien), 7.00% (Libor + 6.00%), maturity 7/21/25	7/13/2018		1,960,000		1,948,624		1,945,300
Planview, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 12/17/27⁽ⁱ⁾	12/11/2020		1,750,000		1,732,500		1,750,000
GlobalLogic, Senior Secured Initial Term Loan, 2.99% (Libor + 2.75%), maturity 8/1/25	7/27/2018		1,715,313		1,708,011		1,702,448
Bomgar, Senior Secured Initial Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 4/18/25⁽ⁱ⁾	5/25/2018		1,706,250		1,714,482		1,693,453
OEConnection, Senior Secured Initial Term Loan, 4.24% (Libor + 4.00%), maturity 9/25/26	9/24/2019		1,617,452		1,611,336		1,609,365
Liaison, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 12/20/26	12/13/2019		1,485,000		1,481,489		1,485,000
Navex Global, Senior Secured Initial Term Loan (First Lien), 3.49% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾	8/15/2018		1,466,250		1,454,411		1,448,683
Corsair, Senior Secured Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 8/28/24	3/29/2018		1,386,885		1,377,896		1,386,885

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

Audax Credit BDC Inc.

Schedule of Investments(Continued)

As of December 31, ~~2019 (Continued)~~2020

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/23/25 $ 3,990,000 $ 3,950,952 $ 3,970,050
RevSpring, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/11/25 3,960,000 3,955,758 3,950,100
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 5.66% (Libor + 3.75%), maturity 2/2/26 2,982,525 2,973,315 2,975,069
Addison, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 4/15/26 2,985,000 2,931,090 2,962,613
Fleetwash, Senior Secured Incremental Term Loan, 6.66% (Libor + 4.75%), maturity 10/1/24 2,962,613 2,938,051 2,947,799
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 6/19/24⁽ⁱ⁾ 2,894,218 2,894,218 2,883,365
Allied Universal, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/10/26⁽ⁱ⁾ 2,613,149 2,591,810 2,635,788
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/9/26⁽ⁱ⁾ 2,481,250 2,484,662 2,497,618
HireRight, Senior Secured Initial Term Loan (Second Lien), 9.16% (Libor + 7.25%), maturity 7/10/26 2,500,000 2,479,365 2,481,250
Newport Group, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/12/25 2,471,231 2,458,304 2,452,697
First Advantage, Senior Secured Term Loan (First Lien), 7.16% (Libor + 5.25%), maturity 6/30/22 2,000,000 1,996,094 1,990,000
Vistage, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/10/25 1,965,000 1,961,739 1,960,088
Service Logic, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/31/24 2,339,998 2,333,703 2,316,598
Eliassen Group, Senior Secured Initial Term B Loan, 6.41% (Libor + 4.50%), maturity 11/5/24 1,493,123 1,486,683 1,489,390
OSG Billing Services, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 3/27/24 1,474,855 1,470,192 1,467,481
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 8.00%), maturity 2/2/26 1,268,869 1,268,869 1,268,869
Diversified, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 12/23/23 992,500 986,007 990,019
WCG, Senior Secured Term Loan, 5.91% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾ 1,000,000 990,000 990,000
Franklin Energy, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26 997,500 995,123 987,525
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/3/26⁽ⁱ⁾ 498,747 494,694 498,747

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/15/25 3,960,000 3,896,852 3,920,400
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/30/24 3,427,599 3,413,966 3,341,909
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 10/4/21 2,811,462 2,806,249 2,741,176
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 1/31/25 2,682,225 2,691,463 2,615,169
Unifrax, Senior Secured USD Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾ 2,476,241 2,454,997 2,286,895
Q Holding, Senior Secured Term B Loan (2019), 6.91% (Libor + 5.00%), maturity 12/29/23 1,995,000 1,985,388 1,985,025
Boyd Corp, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 9/6/26 2,000,000 2,002,217 1,985,000
DuBois Chemicals 2019, Senior Secured Term Loan (Second Lien), 10.41% (Libor + 8.50%), maturity 9/30/27 2,000,000 1,950,862 1,985,000
Borchers, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/1/24 1,910,136 1,905,332 1,900,585
Zep, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/12/24 1,956,225 1,954,251 1,584,542
DuBois Chemicals 2019, Senior Secured Term Loan B (First Lien), 6.41% (Libor + 4.50%), maturity 9/30/26 1,560,865 1,516,107 1,549,159
Spartech, Senior Secured Term Loan, 6.91% (Libor + 5.00%), maturity 10/17/25 1,000,000 985,134 992,500
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/28/24 987,406 970,460 967,657
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/31/25⁽ⁱ⁾ 982,500 978,584 892,145

Services: Consumer
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 6/3/24 5,424,266 5,407,341 5,370,023
A Place For Mom, Senior Secured Term Loan, 5.66% (Libor + 3.75%), maturity 8/10/24 2,666,144 2,665,484 2,599,490
Weld North, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 2/15/25 2,463,674 2,441,530 2,463,674
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/18/25 2,475,000 2,365,058 2,462,625
Smart Start, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/21/22 2,417,625 2,417,625 2,399,493
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/14/26⁽ⁱ⁾ 1,990,000 1,985,439 2,002,726
SMG, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 1/23/25⁽ⁱ⁾ 1,976,118 1,963,737 1,976,118
Valet Living, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/28/25 1,983,718 1,979,195 1,973,800
LegalShield, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/25 1,940,510 1,927,273 1,935,659
Ned Stevens, Senior Secured Term A Loan, 7.66% (Libor + 5.75%), maturity 9/30/25^(j) 1,603,824 1,572,794 1,591,795
Spring Education, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/30/25 987,500 985,450 982,563
Ned Stevens, Senior Secured Revolver, 6.66% (Libor + 4.75%), maturity 9/30/25^(j) - (2,614 ) -

Aerospace & Defense
CPI International, Senior Secured TL, 6.66% (Libor + 4.75%), maturity 7/26/24 4,000,000 3,960,000 3,970,000
StandardAero, Senior Secured Initial Term B-1 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26⁽ⁱ⁾ 3,567,981 3,556,378 3,599,650
StandardAero, Senior Secured Initial Term B-2 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26⁽ⁱ⁾ 1,918,269 1,912,031 1,935,296
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 9.66% (Libor + 7.75%), maturity 4/30/26 1,500,000 1,514,877 1,485,000
Tronair, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 9/8/23 1,459,899 1,453,639 1,427,051
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 4/30/25⁽ⁱ⁾ 497,481 495,124 494,358

Banking, Finance, Insurance & Real Estate
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 4/30/23 2,000,000 2,000,000 1,995,000
Kestra Financial, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 6/3/26 1,995,000 1,976,368 1,990,013
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 7.66% (Libor + 5.75%), maturity 10/31/22 1,989,457 1,951,565 1,939,721
Advisor Group, Senior Secured Initial Term B Loan, 6.91% (Libor + 5.00%), maturity 7/31/26⁽ⁱ⁾ 1,490,625 1,465,245 1,478,349
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 9/6/24 1,470,000 1,467,280 1,458,975
AmeriLife Group, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/12/26 978,070 973,369 970,735
Aperio, Senior Secured Loan, 6.91% (Libor + 5.00%), maturity 10/25/24 933,889 929,619 933,889

Consumer Goods: Non-durable
Manna Pro, Senior Secured Term Loan, 7.91% (Libor + 6.00%), maturity 12/8/23 3,438,750 3,399,412 3,412,959
Augusta Sportswear Group, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 10/26/23 2,228,517 2,214,540 2,211,804
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/11/23 1,906,766 1,895,349 1,873,398
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾ 987,418 993,636 973,861

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

High Tech Industries (continued)

Infoblox, Senior Secured Term Loan, 4.50% (Libor + 3.75%), maturity 12/1/27⁽ⁱ⁾	10/7/2020	$	1,000,000	$	995,091		$	1,002,861
SmartBear, Senior Secured Term Loan, 4.75% (Libor + 4.25%), maturity 11/20/27⁽ⁱ⁾	11/20/2020		1,000,000		990,000			1,000,000
Imperva, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/12/26⁽ⁱ⁾	9/23/2020		996,209		987,170			999,433
Barracuda, Senior Secured 2020 Term Loan (First Lien), 4.50% (Libor + 3.75%), maturity 2/12/25⁽ⁱ⁾	3/2/2018		997,500		997,500			999,242
Veracode, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 11/5/27	10/30/2020		1,000,000		990,167			992,500
Unison, Senior Secured 2020 Term Loan, 8.00% (Libor + 7.00%), maturity 6/25/26^(j)	6/25/2020		995,000		971,706			990,025
Insurity, Senior Secured Closing Date Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 7/31/26⁽ⁱ⁾	7/18/2019		990,000		985,877			978,863
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 12/2/22	5/2/2018		825,760		822,759			815,438
Sparta, Senior Secured New Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/21/24⁽ⁱ⁾	8/11/2017		787,901		788,125			787,901
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 13.25% (Libor + 12.25%), maturity 1/20/22^(i)(m)	9/10/2015		1,000,000		997,516			600,000
Idera, Senior Secured Loan (Second Lien), 10.00% (Libor + 9.00%), maturity 6/28/27	2/10/2020		500,000		504,610			500,000
DigiCert, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 4.00%), maturity 10/16/26⁽ⁱ⁾	3/13/2020		496,250		469,743			497,274
HelpSystems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/19/26⁽ⁱ⁾	12/19/2019		496,250		495,095			496,786
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/15/23	12/14/2016		479,908		478,749			479,908
MultiPlan, Senior Secured Initial Term Loan, 3.75% (Libor + 2.75%), maturity 6/7/23⁽ⁱ⁾	12/12/2018		431,919		428,247			431,919
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 4.75% (Libor + 3.75%), maturity 2/9/23⁽ⁱ⁾	6/8/2017		386,371		385,875			386,675

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/23/25	9/26/2019		3,950,000		3,919,209			3,940,125
RevSpring, Senior Secured Initial Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 10/11/25	10/5/2018		3,920,000		3,916,337			3,880,800
Addison, Senior Secured Initial Term Loan, 4.99% (Libor + 4.75%), maturity 4/15/26	4/4/2019		2,955,000		2,910,360			2,947,613
Fleetwash, Senior Secured Incremental Term Loan, 5.75% (Libor + 4.75%), maturity 10/1/24	9/25/2018		2,932,838		2,913,011			2,918,173
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 3.99% (Libor + 3.75%), maturity 2/9/26⁽ⁱ⁾	1/16/2019		2,954,981		2,937,415			2,900,853
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 3.99% (Libor + 3.75%), maturity 2/2/26⁽ⁱ⁾	1/17/2019		2,952,625		2,944,493			2,812,180
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/9/27⁽ⁱ⁾	3/6/2020		2,487,500		2,464,451			2,505,517
Allied Universal, Senior Secured Initial Term Loan, 4.49% (Libor + 4.25%), maturity 7/10/26⁽ⁱ⁾	6/27/2019		2,466,122		2,450,635			2,468,305
HireRight, Senior Secured Initial Term Loan (Second Lien), 7.49% (Libor + 7.25%), maturity 7/10/26	7/2/2018		2,500,000		2,482,759			2,462,500
Newport Group, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 9/12/25⁽ⁱ⁾	8/9/2018		2,446,206		2,435,371			2,391,166
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 6/19/24	6/30/2017		2,369,662		2,369,662			2,343,003
Vistage, Senior Secured Term B Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/10/25	2/6/2018		2,335,958		2,331,487			2,335,958
Service Logic, Senior Secured Closing Date Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/29/27	10/23/2020		2,030,769		2,005,370			2,015,538
Veregy, Senior Secured Incremental Term Loan, 7.00% (Libor + 6.00%), maturity 11/3/27⁽ⁱ⁾	11/2/2020		2,000,000		1,940,783			1,980,000
Eliassen Group, Senior Secured Initial Term B Loan, 4.49% (Libor + 4.25%), maturity 11/5/24	10/19/2018		1,485,620		1,480,402			1,485,620
First Advantage, Senior Secured Term Facility (First Lien), 3.49% (Libor + 3.25%), maturity 1/31/27⁽ⁱ⁾	1/23/2020		1,493,747		1,480,164			1,481,489
Quantum Health, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 5.00%), maturity 12/22/27⁽ⁱ⁾	12/18/2020		1,500,000		1,477,500			1,477,500
OSG Billing Services, Senior Secured Term B Loan (First Lien), 5.50% (Libor + 4.50%), maturity 3/27/24	3/26/2018		1,459,391		1,455,728			1,442,973
DBi Services, Senior Secured Term B Loan (Second Lien), 9.00% PIK, maturity 2/2/26	3/26/2019		1,379,149		1,379,149			1,379,149
WCG, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾	12/13/2019		995,000		985,758			1,000,060
Diversified, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 12/23/23	4/19/2019		982,575		977,610			980,119
Franklin Energy, Senior Secured Term B Loan (First Lien), 4.24% (Libor + 4.00%), maturity 8/14/26	8/14/2019		987,500		985,288			970,219
eResearch (ERT), Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 2/4/27⁽ⁱ⁾	12/1/2020		498,747		498,747			498,231
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 6/3/26	10/31/2019		493,734		490,417			493,734
Therma Holdings, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 12/16/27⁽ⁱ⁾	12/11/2020		419,355		415,161			419,355

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/15/25⁽ⁱ⁾	12/12/2018		3,920,000		3,865,981			3,919,776
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/30/24	5/11/2017		3,392,624		3,382,274			3,316,290
DuBois Chemicals, Senior Secured Term Loan (Second Lien), 8.74% (Libor + 8.50%), maturity 9/30/27	10/8/2019		3,000,000		2,969,107			2,977,500
Vertellus, Senior Secured Term Loan Facility, 7.00% (Libor + 6.00%), maturity 12/21/27⁽ⁱ⁾	12/18/2020		3,000,000		2,925,000			2,925,000
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 10/4/21	10/9/2015		2,731,078		2,728,788			2,642,318
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 1/31/25⁽ⁱ⁾	1/26/2018		2,654,925		2,662,649			2,533,273
Unifrax, Senior Secured USD Term Loan (First Lien), 3.99% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾	11/5/2018		2,451,228		2,431,275			2,272,229
Boyd Corp, Senior Secured Initial Loan (Second Lien), 6.99% (Libor + 6.75%), maturity 9/6/26	8/16/2018		2,000,000		2,001,952			1,980,000
Q Holding, Senior Secured Term B Loan (2019), 6.00% (Libor + 5.00%), maturity 12/31/23	8/20/2019		1,975,000		1,967,237			1,925,625
Zep, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/12/24⁽ⁱ⁾	8/11/2017		1,936,212		1,934,630			1,904,232
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.74% (Libor + 4.50%), maturity 9/30/26	10/8/2019		1,795,385		1,757,677			1,781,919
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/31/25	3/22/2018		972,500		969,266			962,775
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 10/28/24⁽ⁱ⁾	11/30/2018		977,330		963,591			933,996
Spartech, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 10/17/25	11/5/2019		823,333		812,351			823,333
Polytek, Senior Secured Term Loan, 6.00% (Libor + 5.00%), maturity 9/20/24⁽ⁱ⁾	12/23/2020		500,000		495,000			495,000
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 9/6/25⁽ⁱ⁾	11/7/2018		497,455		464,093			485,309
Vertellus, Senior Secured Revolving Facility, 7.00% (Libor + 6.00%), maturity 12/22/25⁽ⁱ⁾	12/18/2020		-		(12,156	)		-

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

Audax Credit BDC Inc.

Schedule of Investments(Continued)

As of December 31, ~~2019~~2020

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Containers, Packaging & Glass
ProAmpac, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 11/20/23⁽ⁱ⁾ $ 3,000,535 $ 3,017,391 $ 2,972,870
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/18/26 1,995,000 1,985,448 1,995,000
Tank Holding, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 3/26/26⁽ⁱ⁾ 997,500 993,032 1,003,416
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26 1,000,000 997,605 995,000
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 11/30/23⁽ⁱ⁾ 494,901 494,901 491,978
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 6.16% (Libor + 4.25%), maturity 5/12/20 488,837 488,275 483,338

Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24 2,443,750 2,443,750 2,419,313
BAS, Senior Secured Repricing Term Loan, 5.66% (Libor + 3.75%), maturity 5/21/24 1,969,661 1,971,159 1,959,812
Edward Don, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/2/25 1,478,769 1,472,799 1,452,890
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 11/4/26 1,000,000 995,111 992,500
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/2/24 493,703 497,366 490,000
TriMark, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/28/24⁽ⁱ⁾ 491,207 492,665 406,376

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 3/20/25 3,935,671 3,936,089 3,906,153
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 8/19/22 1,915,184 1,893,658 1,891,245
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 6/15/23 1,454,906 1,452,426 1,422,170

Transportation: Cargo
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/12/24 3,615,344 3,611,340 3,588,229
Transplace, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 10/7/24⁽ⁱ⁾ 2,466,458 2,459,768 2,460,292
Capstone Logistics, Senior Secured Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 10/7/21 1,161,707 1,161,868 1,144,282

Construction & Building
PlayPower, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 5/8/26 1,934,722 1,934,722 1,920,212
Tangent, Senior Secured Closing Date Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/30/24 1,496,238 1,480,815 1,488,757
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 6/3/24 1,474,832 1,462,983 1,460,084
PlayCore, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾ 976,912 975,059 964,701
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 7/29/22⁽ⁱ⁾ 628,442 623,246 630,799
Hoffman Southwest, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 8/14/23 527,876 523,556 525,237

Automotive
Mavis, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 3/20/25⁽ⁱ⁾ 3,592,566 3,578,510 3,516,090
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 4/21/25 1,800,000 1,798,507 1,795,500
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 2/3/25 987,500 963,545 982,563

Media: Advertising, Printing & Publishing
Ansira, Unitranche, 7.66% (Libor + 5.75%), maturity 12/20/22 1,905,523 1,893,460 1,872,177
Northstar, Senior Secured Term Loan, 8.16% (Libor + 6.25%), maturity 6/7/22 1,449,510 1,449,510 1,438,639
Imagine! Print Solutions, Senior Secured Term B-1 Loan (First Lien), 6.66% (Libor + 4.75%), maturity 6/21/22 1,458,750 1,451,152 1,035,712
Vestcom International, Senior Secured L/C Collaterilized, 5.91% (Libor + 4.00%), maturity 12/19/23 783,878 786,703 777,999

Forest Products & Paper
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/21/23 2,927,277 2,915,319 2,898,005
Loparex, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 7/31/26 1,496,250 1,481,906 1,481,288

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (2018), 6.91% (Libor + 5.00%), maturity 11/20/25 1,980,000 1,962,677 1,960,200
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 5.66% (Libor + 3.75%), maturity 8/25/25 1,975,000 1,966,820 1,970,063

Hotel, Gaming & Leisure
On Location, Senior Secured Second Amendment Term Loan, 6.91% (Libor + 5.00%), maturity 9/29/21 2,396,566 2,384,489 2,384,584
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.91% (Libor + 5.00%), maturity 10/21/23 1,119,231 1,110,756 1,119,231

Consumer Goods: Durable
Strategic Partners, Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 6/30/23 2,309,428 2,306,211 2,309,428

Retail
Grocery Outlet, Senior Secured 2019 Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/22/25⁽ⁱ⁾ 1,269,483 1,266,905 1,286,070

Metals & Mining
Dynatect, Senior Secured Term B Loan, 6.41% (Libor + 4.50%), maturity 9/30/22 997,579 990,633 987,604

Health Care Equipment & Services
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾ 525,311 519,256 526,851

Total Bank Loans $ 331,601,425 $ 330,155,654

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Aerospace & Defense
CPI International, Senior Secured Second Amendment Incremental Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 7/26/24	10/1/2019	$	5,275,326	$	5,226,445		$	5,248,949
StandardAero, Senior Secured 2020 Term B-1 Loan, 3.74% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾	1/24/2019		3,304,620		3,295,719			3,180,284
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 4/30/26	5/10/2018		2,000,000		2,008,327			1,945,000
Whitcraft, Unitranche, 7.00% (Libor + 6.00%), maturity 4/3/23	3/6/2020		1,982,452		1,973,233			1,942,803
StandardAero, Senior Secured 2020 Term B-2 Loan, 3.74% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾	1/24/2019		1,776,677		1,771,892			1,709,830
Tronair, Senior Secured Initial Term Loan (First Lien), 4.99% (Libor + 4.75%), maturity 9/8/23	9/30/2016		1,441,086		1,436,497			1,305,624
Amentum, Senior Secured Tranche 2 Term Loan (First Lien), 5.50% (Libor + 4.75%), maturity 1/29/27⁽ⁱ⁾	10/29/2020		1,000,000		980,364			1,010,710
Eton, Senior Secured Initial Term Loan (First Lien), 4.74% (Libor + 4.50%), maturity 5/1/25⁽ⁱ⁾	2/5/2020		993,645		990,088			997,154
Amentum, Senior Secured Tranche 1 Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 1/29/27⁽ⁱ⁾	1/24/2020		995,000		964,975			995,630
API Technologies, Senior Secured Initial Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 5/9/26	1/15/2020		989,950		962,144			978,813
Eton, Senior Secured Initial Term Loan (Second Lien), 8.24% (Libor + 8.00%), maturity 5/1/26	2/5/2020		500,000		495,340			498,750
Novaria Group, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 1/27/27	1/24/2020		481,818		477,197			477,000
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/30/25⁽ⁱ⁾	7/18/2019		492,718		490,562			464,492

Banking, Finance, Insurance & Real Estate
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 4/30/23	10/31/2017		2,500,000		2,506,156			2,500,000
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 3/18/27⁽ⁱ⁾	2/6/2020		2,487,768		2,472,789			2,468,652
Kestra Financial, Senior Secured Initial Term Loan, 4.49% (Libor + 4.25%), maturity 6/3/26	4/29/2019		1,975,000		1,959,039			1,970,063
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 6.75% (Libor + 5.75%), maturity 10/31/22	10/9/2015		1,959,163		1,941,037			1,944,469
Orion, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 9/24/27⁽ⁱ⁾	8/4/2020		1,496,250		1,481,250			1,505,340
Advisor Group, Senior Secured Initial Term B Loan, 5.24% (Libor + 5.00%), maturity 7/31/26⁽ⁱ⁾	1/31/2020		1,485,000		1,473,076			1,478,274
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 9/6/24	10/5/2017		1,455,000		1,453,049			1,447,725
HighTower, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 1/31/25	10/14/2020		1,254,919		1,234,708			1,245,507
Mitchell International, Senior Secured Amendment No. 2 New Term Loan Facility (First Lien), 4.75% (Libor + 4.25%), maturity 11/29/24⁽ⁱ⁾	7/6/2020		997,500		945,583			1,001,159
Aperio, Senior Secured Initial Commitment, 5.24% (Libor + 5.00%), maturity 10/25/24	12/12/2018		933,889		930,413			933,889
Sedgwick Claims, Senior Secured Initial Term Loan, 3.49% (Libor + 3.25%), maturity 12/31/25⁽ⁱ⁾	2/12/2020		494,949		494,373			489,808

Services: Consumer
A Place For Mom, Senior Secured Term Loan, 4.75% (Libor + 3.75%), maturity 8/10/24	7/28/2017		2,638,868		2,638,424			2,586,091
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 4.74% (Libor + 4.50%), maturity 12/18/25⁽ⁱ⁾	12/18/2018		2,449,960		2,356,145			2,449,996
Weld North, Senior Secured Term Loan B (First Lien), 4.75% (Libor + 4.00%), maturity 12/21/27⁽ⁱ⁾	12/21/2020		2,444,868		2,444,868			2,438,756
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 3.49% (Libor + 3.25%), maturity 5/14/26⁽ⁱ⁾	5/8/2019		2,069,000		2,064,997			2,032,545
LegalShield, Senior Secured Initial Term Loan (First Lien), 3.49% (Libor + 3.25%), maturity 5/1/25⁽ⁱ⁾	11/21/2018		1,927,000		1,916,403			1,916,690
Ned Stevens, Senior Secured Term A Loan, 6.75% (Libor + 5.75%), maturity 9/30/25^(j)	9/30/2019		1,501,961		1,480,069			1,486,941
Smart Start, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 8/19/27	8/14/2020		997,500		987,865			995,006
Spring Education, Senior Secured Initial Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 7/30/25⁽ⁱ⁾	7/26/2018		977,500		975,779			932,975
LegalShield, Senior Secured New Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 5/1/25	9/11/2020		498,750		491,474			495,009
StubHub, Senior Secured USD Term B Loan, 3.74% (Libor + 3.50%), maturity 2/12/27	1/31/2020		495,000		492,695			475,200
Ned Stevens, Senior Secured Revolver, 5.75% (Libor + 4.75%), maturity 9/30/25^(j)	9/30/2019		-		(2,614	)		-

Automotive
Mavis, Senior Secured Closing Date Term Loan (First Lien), 3.49% (Libor + 3.25%), maturity 3/20/25⁽ⁱ⁾	3/15/2018		3,829,530		3,817,514			3,788,854
Highline, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 11/9/27	10/29/2020		2,863,636		2,786,320			2,849,318
Les Schwab Tire, Senior Secured Initial Term Loan, 4.25% (Libor + 3.50%), maturity 11/2/27	10/26/2020		2,000,000		1,990,162			1,985,000
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 4/21/25⁽ⁱ⁾	5/23/2017		1,800,000		1,798,743			1,800,000
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 2/3/25	11/28/2018		975,849		955,515			961,212
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 7.75% (Libor + 6.75%), maturity 2/2/26	2/7/2020		500,000		489,628			492,500
IXS, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 3/5/27⁽ⁱ⁾	2/27/2020		302,710		300,050			302,710

Containers, Packaging & Glass
ProAmpac, Senior Secured 2020-1 Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/3/25	11/2/2020		2,977,335		2,977,335			2,955,005
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 4.24% (Libor + 4.00%), maturity 7/18/26⁽ⁱ⁾	7/17/2019		2,909,213		2,895,839			2,880,121
Potters Industries, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 12/14/27⁽ⁱ⁾	11/19/2020		1,500,000		1,485,273			1,498,125
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 3.99% (Libor + 3.75%), maturity 7/31/26	7/25/2019		990,000		987,979			990,000
Tank Holding, Senior Secured 2020 Refinancing Term Loan (First Lien), 3.49% (Libor + 3.25%), maturity 3/26/26⁽ⁱ⁾	3/21/2019		987,500		984,017			972,735
Pregis Corporation, Senior Secured Incremental Amendment No. 2 Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 7/31/26⁽ⁱ⁾	12/9/2020		500,000		497,546			497,500
Berlin Packaging, Senior Secured Initial Term Loan (First Lien), 3.00% (Libor + 3.00%), maturity 11/7/25⁽ⁱ⁾	3/11/2020		494,924		474,388			490,252
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 11/30/23⁽ⁱ⁾	3/26/2019		482,347		482,347			481,141
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 7.00% (Libor + 6.00%), maturity 11/12/21	7/7/2017		480,087		479,657			478,887

Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 3.99% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾	4/20/2018		2,037,185		2,037,185			1,951,145
BAS, Senior Secured Repricing Term Loan, 4.75% (Libor + 3.75%), maturity 5/21/24	11/7/2017		1,949,363		1,951,659			1,944,490
Excelitas, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/1/25	2/19/2020		1,500,000		1,479,256			1,496,250
Edward Don, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 7/2/25	6/26/2018		1,463,794		1,459,176			1,378,894
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 11/4/26	10/29/2019		992,500		988,663			987,538
TriMark, Senior Secured Initial Term Loan (First Lien), 3.74% (Libor + 3.50%), maturity 8/28/24	6/13/2018		983,612		889,075			600,003
Restaurant Technologies, Senior Secured Initial Loan (Second Lien), 6.74% (Libor + 6.50%), maturity 10/1/26	2/11/2020		500,000		503,507			496,250
Duravant, Senior Secured Incremental Amendment No. 2 Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/19/24	3/5/2020		494,949		494,949			493,712
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/2/24	10/24/2018		488,665		491,752			486,222

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, ~~2019~~2020

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)} Par Cost Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)^(g)(h):

Services: Business
DBi Services, Class A-1 Preferred Units (800.53 units)^(k) $ 800,535 $ 400,267
DBi Services, Class B Common Shares (169,362.31 shares)^(l)(m) - -

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $261,438)^{(f)(j)(m)(n)(o)} 261,438 261,438

Healthcare & Pharmaceuticals
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $57,552)^{(f)(i)(j)(m)(o)(p)} 58,608 57,552

Total Equity and Preferred Shares $ 1,120,581 $ 719,257

Total Portfolio Investments^(q) $ 332,722,006 $ 330,874,911

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Construction & Building
PlayPower, Senior Secured Initial Term Loan, 5.74% (Libor + 5.50%), maturity 5/8/26	5/10/2019	$	1,858,806	$	1,858,806	$	1,826,277
Tangent, Senior Secured Closing Date Term Loan (First Lien), 4.99% (Libor + 4.75%), maturity 11/30/24	10/2/2019		1,811,195		1,799,386		1,802,139
PlayCore, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 9/29/25	2/7/2020		1,500,000		1,469,821		1,488,750
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 6/3/24⁽ⁱ⁾	2/23/2018		1,459,711		1,450,295		1,456,062
PlayCore, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 9/30/24	9/18/2017		966,918		965,369		959,666
CHI Overhead Doors, Senior Secured Third Amendment Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 7/31/25	7/28/2015		621,975		618,961		621,975
Hoffman Southwest, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 8/14/23	5/16/2019		517,526		515,491		513,645
DiversiTech Corporation, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 6/2/25	2/5/2020		500,000		489,906		498,750
Acuren, Senior Secured Initial Term Loan, 4.49% (Libor + 4.25%), maturity 1/23/27⁽ⁱ⁾	1/17/2020		496,250		493,945		496,809

Transportation: Cargo
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 10/12/24⁽ⁱ⁾	11/20/2018		3,608,953		3,605,359		3,551,633
Transplace, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 10/7/24⁽ⁱ⁾	4/10/2018		2,441,354		2,436,251		2,437,864
Capstone Logistics, Senior Secured Closing Date Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/12/27	11/12/2020		2,000,000		1,978,572		1,985,000

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 3/20/25	3/16/2018		3,895,820		3,896,287		3,866,602
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 8/19/22	9/2/2015		1,895,184		1,881,515		1,847,805
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 6/15/23	6/14/2016		1,439,868		1,439,074		1,407,471

Consumer Goods: Non-durable
Augusta Sportswear Group, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 10/26/23⁽ⁱ⁾	11/2/2016		2,202,584		2,191,908		2,040,686
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.25% (Libor + 5.00%), maturity 9/11/23	9/29/2016		1,906,766		1,898,262		1,885,315
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾	10/17/2018		977,352		982,680		942,014

Forest Products & Paper
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/21/23⁽ⁱ⁾	11/9/2016		2,418,968		2,411,531		2,162,916
Loparex, Senior Secured Initial Term Loan (First Lien), 4.74% (Libor + 4.50%), maturity 7/31/26⁽ⁱ⁾	7/29/2019		1,481,250		1,468,881		1,470,141
Hoffmaster Group, Senior Secured Initial Term Loan (Second Lien), 10.50% (Libor + 9.50%), maturity 11/21/24	2/7/2020		1,250,000		1,250,000		1,209,375

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (2018), 4.99% (Libor + 4.75%), maturity 11/20/25	11/16/2018		2,458,728		2,442,754		2,458,728
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 4.75% (Libor + 3.75%), maturity 8/25/25	8/22/2018		1,955,000		1,948,780		1,935,450

Media: Advertising, Printing & Publishing
Ansira, Unitranche, 7.50% (Libor + 6.50%) PIK, maturity 12/20/24	12/20/2016		2,014,998		2,005,963		1,611,999
Northstar, Senior Secured Term Loan, 6.75% (Libor + 6.25%) cash, 1.00% PIK, maturity 6/7/24	5/8/2017		1,394,653		1,394,653		1,349,327
Vestcom International, Senior Secured L/C Collaterilized, 5.00% (Libor + 4.00%), maturity 12/19/23	12/16/2016		779,751		781,907		773,903

Consumer Goods: Durable
Strategic Partners, Senior Secured Initial Term Loan, 4.75% (Libor + 3.75%), maturity 6/30/23⁽ⁱ⁾	7/29/2016		2,285,922		2,283,635		2,285,922

Retail
Grocery Outlet, Senior Secured 2020 Term Loan (First Lien), 2.99% (Libor + 2.75%), maturity 10/22/25⁽ⁱ⁾	10/17/2018		1,269,483		1,267,698		1,270,891

Metals & Mining
Dynatect, Senior Secured Term B Loan, 5.50% (Libor + 4.50%), maturity 9/30/22	8/16/2019		987,897		987,367		968,139

Hotel, Gaming & Leisure
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.00% (Libor + 5.00%), maturity 10/21/23	10/19/2016		1,119,231		1,112,979		895,385

Health Care Equipment & Services
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.49% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾	8/2/2019		532,087		527,684		526,939

Total Bank Loans				$	357,702,705	$	354,395,516

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2020

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Acquisition Date	Par	Cost		Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.3%)^(g)(h):

Services: Business
DBi Services, Class A-1 Preferred Units (800.53 units)^(k)	3/26/2019		$	800,535	$	576,385
DBi Services, Class B Common Shares (169,362.31 shares)^(l)(m)	3/26/2019			-		-

Chemicals, Plastics & Rubber
Vertellus, Series A Units (1,651 Series A units, Fair value of $165,138)^(i)(m)(r)	12/22/2020			165,138		165,138

Healthcare & Pharmaceuticals
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $3,679)^(j)(m)(o)(p)	4/19/2019			60,976		3,679

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $2,191)^(j)(m)(n)(o)	9/30/2019			261,438		219,125

Total Equity and Preferred Shares			$	1,288,087	$	964,327

Total Portfolio Investments^(s)			$	358,990,792	$	355,359,843

	(a)	All companies are located in the United States of America, unless otherwise noted.
	(b)	Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject to interest rate floors which can vary based on the contractual agreement with the borrower. Due dates represent the contractual maturity date.
	(c)	All loans are income-producing, unless otherwise noted.
	(d)	All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
	(e)	All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
	(f)	Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(g)	Percentages are calculated using fair value of investments over net assets.
	(h)	As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
	(i)	Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(j)	Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P.," 'co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
	(k)	Represents an investment owned by APD Dbi Preferred, Inc., a holding company for the investment in DBi.
	(l)	Represents an investment owned by APD Dbi Common, Inc., a holding company for the investment in DBi.
	(m)	Investment is non-income producing.
	(n)	Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(o)	Other net assets of $0 at the aggregator levels are included in the fair value of the investments when using the net asset value as a practical expedient.
	(p)	Represents an investment in APD ALP Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(q)	The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom.
	(r)	Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(s)	At December 31, ~~2019,~~2020, the cost of investments for income tax purposes was ~~$332,722,006~~$358,990,792 the gross unrealized depreciation for federal tax purposes was ~~$2,951,506,~~$5,143,320, the gross unrealized appreciation for federal income tax purposes was ~~$1,104,411,~~$1,512,371, and the net unrealized depreciation was ~~$1,847,095.~~$3,630,949.

Audax Credit BDC Inc.

Notes to Financial Statements

September 30, ~~2020~~ 2021

(unaudited)

Note 1. Organization

Audax Credit BDC Inc. (the “Company”) is a Delaware corporation that was formed on January 29, 2015. The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, effective with the Company’s taxable year ended December 31, 2015, the Company has elected to be treated for federal income tax purposes and intends to comply with the requirements to qualify annually as a regulated investment company (“RIC”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

The Company commenced business operations on July 8, 2015, the date on which the Company made its first investment. The Company ~~has been~~was formed for the purpose of investing primarily in the debt of leveraged, non-investment grade middle market companies, with the principal objective of generating income and capital appreciation. The Company’s investment strategy is to invest primarily in first lien senior secured loans and selectively in second lien loans to middle market companies. During the period prior to July 8, 2015, the Company was a development stage company, as defined in Paragraph 915-10-05, Development Stage Entity, of the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standards Codification, as amended (“ASC”). During this time, the Company was devoting substantially all of its efforts to establishing its business and its planned principal operations had not commenced. All losses incurred during the period prior to July 8, 2015 have been considered a part of the Company’s development stage activities.

Audax Management Company (NY), LLC (the “Adviser”) is the investment adviser of the Company. The Adviser is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended.

Note 2. Significant Accounting Policies

Basis of Presentation

As an investment company, the accompanying financial statements of the Company are prepared in accordance with the investment company accounting and reporting guidance of ASC Topic 946, “Financial Services – Investment Companies,” as amended (“ASC Topic 946”), which incorporates the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X, as well as generally accepted accounting principles in the United States of America (“GAAP”).

Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management of the Company, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair presentation of financial statements for the interim period included herein. The current period’s results of operations are not necessarily indicative of the operating results to be expected for future periods. The accounting records of the Company are maintained in U.S. dollars.

Use of Estimates

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

Cash and Cash Equivalents

Cash and cash equivalents are stated at fair value. The Company considers all highly liquid investments purchased with maturities of three months or less and money market mutual funds to be cash equivalents. No cash equivalent balances were held aton September 30, ~~2020~~2021 and December 31, ~~2019.~~2020. At such dates, cash was not subject to any restrictions on withdrawal.

Expenses

The Company is responsible for investment expenses, legal expenses, auditing fees and other expenses related to the Company’s operations. Such fees and expenses, including expenses initially incurred by the Adviser, may be reimbursed by the Company.

Investment Valuation Policy

The Company conducts the valuation of the Company’s investments, pursuant to which the Company’s net asset value is determined, at all times consistent with GAAP and the 1940 Act. The Company’s Board of Directors (the “Board of Directors”), with the assistance of the Company’s Audit Committee (the “Audit Committee”), determines the fair value of the Company’s investments, for investments with a public market and for investments with no readily available public market, on at least a quarterly basis, in accordance with the terms of ASC Topic 820, “Fair Value Measurement,” (“ASC 820”). The Company’s valuation procedures are set forth in more detail below.

ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same – to estimate the price when an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

ASC 820 establishes a hierarchal disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value.

The three-level hierarchy for fair value measurement is defined as follows:

Level 11 —

Inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. The Company does not adjust the quoted price for these instruments, even in situations where the Company holds a large position, and a sale could reasonably be expected to impact the quoted price.

Level2 —

Inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.

Level3 —

Inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Pursuant to the framework set forth above, the Company values securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of its investments from pricing services, brokers or dealers’ quotes, or counterparty marks in order to value liquid assets that are not traded in active markets.

Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, the Company determines whether the quote obtained is sufficient in accordance with GAAP to determine the fair value of the security. If determined adequate, the Company uses the quote obtained.

Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of the Board of Directors, does not represent fair value, are each valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data are available. These valuation techniques vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Inputs for these valuation techniques include relative credit information, observed market movement, industry sector information, and other market data, which may include benchmarking of comparable securities, issuer spreads, reported trades, and reference data, such as market research publications, when available. The process used to determine the applicable value is as follows:

(i) Each portfolio company or investment is initially valued by the investment professionals of the Adviser responsible for the portfolio investment using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs. Additionally, as a part of the Company’s valuation process, the Adviser may employ the services of one or more independent valuation firms engaged by the Company;

(ii) Preliminary valuation conclusions are documented and discussed with the Company’s senior management and members of the Adviser’s valuation team;

(iii) The Audit Committee reviews the assessments of the Adviser or independent valuation firm (to the extent applicable) and provides the Board of Directors with recommendations with respect to the fair value of the investments in the Company’s portfolio; and

(iv) The Board of Directors discusses the valuation recommendations of the Audit Committee and determines the fair value of the investments in the Company’s portfolio in good faith based on the input of the Adviser, the independent valuation firm (to the extent applicable) and in accordance with the Company’s valuation policy.

The Audit Committee’s recommendation of fair value is generally based on its assessment of the following factors, as relevant:

the nature and realizable value of any collateral;

call features, put features and other relevant terms of debt;

the portfolio company’s ability to make payments;

the portfolio company’s actual and expected earnings and discounted cash flow;

prevailing interest rates for like securities and expected volatility in future interest rates;

the markets in which the portfolio company does business and recent economic and/or market events; and

comparisons to publicly traded securities.

Investment performance data utilized are the most recently available as of the measurement date, which in many cases may reflect up to a one quarter lag in information.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include the following:

private placements and restricted securities that do not have an active trading market;

securities whose trading has been suspended or for which market quotes are no longer available;

debt securities that have recently gone into default and for which there is no current market;

securities whose prices are stale; and

securities affected by significant events.

The Board of Directors is responsible for the determination, in good faith, of the fair value of the Company’s portfolio investments.

Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the

Company’s financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the Company’s financial statements.

Security transactions are recorded on the trade date (the date the order to buy or sell is executed or, in the case of privately issued securities, the closing date, which is when all terms of the transactions have been defined).

Realized gains and losses on investments are determined based on the identified cost method.

In addition, on December 3, 2020, the SEC announced that it adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The adopted rule clarifies how fund boards can satisfy their valuation obligations in light of recent market developments. The rule permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform the fair value determinations. The Company will continue to review the adopted rule and its impact on the Company and its valuation policies and intends to comply with such requirements on or before the SEC’s required compliance date in 2022.

Refer to Note 3 — Investments for additional information regarding fair value measurements and the Company’s application of ASC 820.

Interest Income Recognition

Interest income, adjusted for amortization of premium, acquisition costs, and amendment fees and the accretion of original issue discount (“OID”), are recorded on an accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 120 days or more past due, or if the Company’s qualitative assessment indicates that the debtor is unable to service its debt or other obligations, the Company will place the loan on non-accrual status and cease recognizing interest income on that loan for financial reporting purposes until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, the Company will remain contractually entitled to this interest. Interest payments received on non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current or, due to a restructuring, the interest income is deemed to be collectible. As of September 30, 2021, the Company did not hold any investment on non-accrual. As of December 31, 2020, the Company had one investment on non-accrual which ~~totaled~~represented 0.28% and ~~0.18%~~0.17% of its total portfolio at cost and fair market value, respectively. ~~The Company did not have any investments on non-accrual as of December 31, 2019.~~

The Company currently holds loans in the portfolio that contain OID and ~~expects to hold loans in the future that contain~~ payment-in-kind (“PIK”) provisions. ~~The~~The Company recognizes OID for loans originally issued at a discount and recognizes the income over the life of the obligation based on an effective yield calculation. PIK interest, computed at the contractual rate specified in a loan agreement, is added to the principal balance of a loan and recorded as income over the life of the obligation. Therefore, the actual collection of PIK income may be deferred until the time of debt principal repayment. To maintain the ability to be taxed as a RIC, the Company may need to pay out of both OID and PIK non-cash income amounts in the form of distributions, even though the Company has not yet collected the cash on either.

As of September 30, 2021, the Company held 213 investments in loans with OID. The Company accrued OID income of $109,095 and $338,404 for the three and nine months ended September 30, 2021, respectively. The unamortized balance of OID on debt investments as of September 30, 2021, totaled $2,413,162. As of December 31, 2020, the Company held ~~186~~197 investments in loans with OID. The Company accrued OID income of $102,083 and $282,729 for the three and nine months ended September 30, 2020, respectively. The unamortized balance of OID ~~on debt~~ investments as of December 31, 2020, totaled $2,299,058.

As of September 30, ~~2020, totaled $1,901,454. As of December 31, 2019,~~2021, the Company held ~~162~~three investments ~~in loans with OID.~~which had a PIK interest component. The Company ~~accrued OID~~recorded $49,599 and $200,382 of PIK interest income ~~of $64,494 and $199,813~~ for ~~the~~ three and nine months ended September 30, ~~2019,~~2021, respectively. ~~The unamortized balance of OID investments as of December 31, 2019, totaled $1,733,632.~~

As of September 30, 2020, the Company held three investments which had a PIK interest component. The Company recorded $39,222 and $75,145 of PIK interest income for the three and nine months ended September 30, 2020, respectively. As of September 30, 2019, the Company held one investment which had a PIK interest component. The Company recorded $0 and $32,822 of PIK interest income for the three and nine months ended September 30, 2019, respectively.

As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company held ~~$24,955,930~~$13,397,892 and ~~$5,506,217~~$4,289,122 in cash and cash equivalents, respectively. For the three and nine months ended September 30, ~~2020,~~2021, the Company earned ~~$1,058~~$477 and ~~$31,053,~~$1,107, respectively, of interest income related to cash, which is included in other interest income within the accompanying statement of operations. For the three and nine months ended September 30, ~~2019,~~2020, the Company earned ~~$28,722~~$1,058 and ~~$122,237,~~$31,053, respectively, of interest income related to cash, which is included in other interest income within the accompanying statement of operations.

Other Income Recognition

The Company generally records prepayment fees and amendment fees upon receipt of cash or as soon as the Company becomes aware of the prepayment or amendment.

Dividend income on equity investments is accrued to the extent that such amounts are expected to be collected and if the Company has the option to collect such amounts in cash.

Prepayment fees, amendment fees and dividend income are accrued in other income in the accompanying statements of operations.

For the three and nine months ended September 30, ~~2020,~~2021, the Company accrued ~~$14,577~~$20,772 and ~~$153,950~~$83,774 of other income, respectively, related to amendment fees. For the three and nine months ended September 30, ~~2019,~~2020, the Company accrued ~~$5,214~~$14,577 and ~~$38,364~~$153,950 of other income, respectively, related to amendment ~~and documentation~~ fees.

New Accounting Pronouncements

In ~~August 2018, the~~March 2020, FASB issued Accounting Standards Update ~~2018-13, Fair Value Measurement~~No. 2020-04 (“ASU 2020-04”), “Reference Rate Reform (Topic ~~820) - Disclosure Framework - Changes~~848)”. In response to concerns about structural risks of interbank offered rates, and particularly the ~~Disclosure Requirements~~risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for ~~Fair Value Measurement ("~~a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU ~~2018-13") which introduces new fair value disclosure requirements~~2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective as ~~well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after~~of March 12, 2020 through December ~~15, 2019, and interim periods within those fiscal years. The adoption~~31, 2022. Management is currently evaluating the impact of ~~ASU~~ ~~2018-13~~ ~~did not have a material impact on~~ the ~~Company’s disclosures.~~guidance.

Note 3. Investments

Investments

The Company’s investments, at any time, may include syndicated loans, securities, structured products and other financial instruments, including, without limitation, corporate and government bonds, convertible securities, term loans, equity securities (both common and preferred), various debt securities (both secured and unsecured), dividend-paying equity, royalties, collateralized loan obligations, and warrants (collectively, the “investments”).

Fair Value

In accordance with ASC 820, the fair value of the Company’s investments is determined to be the price that would be received for an investment in a current sale, assuming an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date as described in ~~Note–~~Note 2 – Significant Accounting Policies.

As of September 30, ~~2020, $182,630,994~~2021, $171,713,920 of the Company’s investments were valued using unobservable inputs, and ~~$158,857,789~~$191,727,540 were valued using observable inputs. During the nine months ended September 30, 2021, $21,840,607 transferred into Level 3 due to a decrease in observable prices in the market and $46,432,486 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

As of December 31, 2020, $199,000,205 of the Company’s investments were valued using unobservable inputs, and $156,359,638 were valued using observable inputs. During the nine months ended September 30, 2020, $15,434,694 transferred into Level 3 due to a decrease in observable prices in the market and $74,210,909 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

As of December 31, 2019, $249,452,590 of the Company’s investments were valued using unobservable inputs, and $81,422,321 were valued using observable inputs. During the nine months ended September 30, 2019, $61,185,683 into Level 3 due to a decrease in observable prices in the marker and $20,300,196 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

The following table presents the Company’s investments carried at fair value as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, by caption on the Company’s accompanying statements of assets and liabilities and by security type.

Assets at Fair Value as of September 30, 2020
Level 1 Level 2 Level 3 Total
First lien debt $ - $ 154,504,124 $ 156,281,866 $ 310,785,990
Second lien debt - 4,353,665 25,544,189 29,897,854
Equity and Preferred Shares - - 804,939 804,939
Total $ - $ 158,857,789 $ 182,630,994 $ 341,488,783

Assets at Fair Value as of December 31, 2019
Level 1 Level 2 Level 3 Total
First lien debt $ - $ 81,422,321 $ 227,392,535 $ 308,814,856
Second lien debt - - 21,340,798 21,340,798
Equity and Preferred Shares - - 719,257 719,257
Total $ - $ 81,422,321 $ 249,452,590 $ 330,874,911

	Assets at Fair Value as of September 30, 2021
	Level 1		Level 2		Level 3		Total
First lien debt	$	-	$	184,796,743	$	154,049,139	$	338,845,882
Second lien debt		-		6,930,797		17,189,008		24,119,805
Equity and Preferred Shares		-		-		475,773		475,773
Total	$	-	$	191,727,540	$	171,713,920	$	363,441,460

	Assets at Fair Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
First lien debt	$	-	$	153,794,500	$	170,910,171	$	324,704,671
Second lien debt		-		2,400,000		27,290,845		29,690,845
Equity and Preferred Shares		-		165,138		799,189		964,327
Total	$	-	$	156,359,638	$	199,000,205	$	355,359,843

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of September 30, ~~2020.~~2021. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

As of September 30, 2020

As of September 30, 2021

Fair

Valuation

Unobservable

Weighted

Fair

Valuation

Unobservable

Weighted

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

First lien debt

143,094,935

Matrix Pricing

Senior Leverage

2.80x - 10.54x

5.12x

148,573,197

Matrix Pricing

Senior Leverage

2.68x - 16.65x

5.12

Total Leverage

2.80x - 10.54x

6.20x

Interest Coverage

0.87x - 5.22x

2.31x

Debt Service Coverage

0.80x - 4.04x

1.93x

TEV Coverage

0.78x - 6.88x

2.42x

Liquidity

33.77% - 333.00%

154.79%

Spread Comparison

275bps - 700bps

449bps

12,235,585

Market Analysis

Senior Leverage

5.39x - 18.12x

7.64x

Total Leverage

5.70x - 19.75x

9.21x

Total Leverage

3.07x - 16.65x

5.98

Interest Coverage

0.26x - 2.34x

1.57x

Interest Coverage

(0.83)x - 7.55x

2.64

Debt Service Coverage

0.26x - 2.34x

1.27x

Debt Service Coverage

(0.77)x - 5.31x

2.11

TEV Coverage

0.44x - 1.82x

1.47x

TEV Coverage

0.54x - 4.99x

2.47

Liquidity

33.06% - 226.94%

133.59%

Liquidity

36.37% - 604.32%

160.52

Spread Comparison

350bps - 650bps

478bps

Spread Comparison

300bps - 700bps

465bps

Second lien debt

24,275,585

Matrix Pricing

Senior Leverage

4.61x - 8.99x

6.10x

17,189,008

Matrix Pricing

Senior Leverage

3.06x - 10.88x

6.69

Total Leverage

4.61x - 8.99x

6.10x

Total Leverage

3.06x - 10.88x

6.69

Interest Coverage

1.17x - 3.19x

2.13x

Interest Coverage

0.81x - 6.62x

2.82

Debt Service Coverage

1.01x - 2.83x

1.82x

Debt Service Coverage

0.65x - 5.69x

2.36

TEV Coverage

0.87x - 2.51x

1.77x

TEV Coverage

0.74x - 4.28x

2.20

Liquidity

85.32% - 257.41%

151.86%

Liquidity

79.34% - 260.86%

157.17

Spread Comparison

650bps - 950bps

773bps

Spread Comparison

650bps - 950bps

785bps

Total

179,606,105

165,762,205

(1)

For any portfolio company, the unobservable input "Liquidity" is a fraction, expressed as a percentage, the numerator of which is the sum of the company's undrawn revolving credit facility capacity plus cash, and the denominator of which is the total amount that may be borrowed under the company's revolving credit facility. The unobservable input "Spread Comparison" is a comparison of the spread over LIBOR for each investment to the spread over LIBOR for general leveraged loan transactions.


	(2)	Each range represents the variance of outputs from calculating each statistic for each portfolio company within a specific credit seniority. The range may be a single data point when there is only one company represented in a specific credit seniority.


	(3)	Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include ~~$3,024,889~~$5,951,715 of debt, equity and preferred shares which management values using other unobservable inputs, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA multiples, as well as other qualitative information, including company specific information.

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of December 31, ~~2019.~~2020. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

As of December 31, 2019

As of December 31, 2020

Fair

Valuation

Unobservable

Weighted

Fair

Valuation

Unobservable

Weighted

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

First lien debt

224,772,281

Matrix Pricing

Senior Leverage

2.33x - 7.55x

4.89x

165,118,266

Matrix Pricing

Senior Leverage

1.92x - 28.58x

5.22

Total Leverage

3.10x - 9.79x

6.07x

Total Leverage

1.92x - 32.80x

6.31

Interest Coverage

1.14x - 4.80x

2.10x

Interest Coverage

0.46x - 5.97x

2.38

Debt Service Coverage

0.93x - 3.68x

1.76x

Debt Service Coverage

0.42x - 5.75x

1.98

TEV Coverage

1.27x - 5.70x

2.42x

TEV Coverage

0.58x - 7.42x

2.44

Liquidity

5.75% - 587.90%

141.43%

Liquidity

34.64% - 675.62%

173.68

Spread Comparison

275bps - 650bps

435bps

Spread Comparison

275bps - 700bps

442bps

Second lien debt

20,071,929

Matrix Pricing

Senior Leverage

4.60x - 7.06x

5.87x

25,911,696

Matrix Pricing

Senior Leverage

4.40x - 11.03x

6.29

Total Leverage

4.60x - 7.06x

5.88x

Total Leverage

4.40x - 11.03x

6.29

Interest Coverage

1.54x - 3.21x

2.17x

Interest Coverage

0.88x - 3.10x

2.15

Debt Service Coverage

1.38x - 2.86x

1.89x

Debt Service Coverage

0.77x - 2.75x

1.82

TEV Coverage

1.52x - 2.44x

1.98x

TEV Coverage

0.74x - 3.10x

1.98

Liquidity

52.00% - 347.60%

149.91%

Liquidity

100.90% - 326.75%

162.79

Spread Comparison

675bps - 1025bps

764bps

Spread Comparison

650bps - 950bps

761bps

Total

244,844,210

191,029,962

(1)


	(2)	Each range represents the variance of outputs from calculating each statistic for each portfolio company within a specific credit seniority. The range may be a single data point when there is only one company represented in a specific credit seniority.


	(3)	Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include ~~$4,608,380~~$7,970,243 of debt, equity and preferred shares which management values using other unobservable inputs, such as EBITDA and EBITDA multiples, as well as other qualitative information, including company specific information.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in market yields, discounts rate, leverage, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase or decrease in market yields, discount rates or leverage or an increase/decrease in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a corresponding decrease or increase, respectively, in the fair value of certain of the Company’s investments.

The following tables provide the changes in fair value, broken out by security type, during the nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 for all investments for which the Company determines fair value using unobservable (Level 3) factors.

Nine Months Ended September 30, 2020	First lien debt			Second lien debt			Equity and Preferred Shares		Total
Fair Value as of December 31, 2019	$	227,392,535		$	21,340,798		$	719,257	$	249,452,590
Nine Months Ended September 30, 2021												First lien debt			Second lien debt			Equity and Preferred Shares			Total
Fair Value as of December 31, 2020												$	170,910,171		$	27,290,845		$	799,189		$	199,000,205
Transfers into Level 3		15,434,694			-			-		15,434,694			21,675,469			-			165,138			21,840,607
Transfers out of Level 3		(71,237,159	)		(2,973,750	)		-		(74,210,909	)		(39,527,665	)		(6,904,821	)		-			(46,432,486	)
Total gains:
Net realized loss^(a)		(1,221,555	)		-			-		(1,221,555	)
Net unrealized (depreciation) appreciation^(b)		(1,110,239	)		(76,159	)		85,682		(1,100,716	)
Net realized gain (loss)^(a)													132,085			23,900			(383,174	)		(227,189	)
Net unrealized appreciation (depreciation)^(b)													270,405			20,291			292,445			583,141
New investments, repayments and settlements:^(c)
Purchases		13,199,175			7,709,688			-		20,908,863			35,132,968			2,455,000			19,536			37,607,504
Settlements/repayments		(21,689,548	)		(472,222	)		-		(22,161,770	)		(33,348,782	)		(4,332,867	)		-			(37,681,649	)
Net amortization of premiums, PIK, discounts and fees		253,400			15,834			-		269,234			300,738			82,430			-			383,168
Sales		(4,739,437	)		-			-		(4,739,437	)		(1,496,250	)		(1,445,770	)		(417,361	)		(3,359,381	)
Fair Value as of September 30, 2020	$	156,281,866		$	25,544,189		$	804,939	$	182,630,994
Fair Value as of September 30, 2021												$	154,049,139		$	17,189,008		$	475,773		$	171,713,920

	(a)	Included in net realized ~~loss~~gain on the accompanying Statement of Operations for the nine months ended September 30, ~~2020.~~2021.

	(b)	Included in net change in unrealized ~~depreciation~~appreciation on the accompanying Statement of Operations for the nine months ended September 30, ~~2020.~~2021.

(c)

Includes increases in the cost basis of investments resulting from portfolio investments, the amortization of discounts, and PIK, as well as decreases in the costs basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.

Nine Months Ended September 30, 2019	First lien debt			Second lien debt			Equity and Preferred Shares			Total
Fair Value as of December 31, 2018	$	124,975,467		$	17,044,607		$	-		$	142,020,074
Nine Months Ended September 30, 2020													First lien debt			Second lien debt			Equity and Preferred Shares		Total
Fair Value as of December 31, 2019													$	227,392,535		$	21,340,798		$	719,257	$	249,452,590
Transfers into Level 3		59,681,933			1,503,750			-			61,185,683			15,434,694			-			-		15,434,694
Transfers out of Level 3		(18,817,071	)		(1,483,125	)		-			(20,300,196	)		(71,237,159	)		(2,973,750	)		-		(74,210,909	)
Total gains:
Net realized gain^(a)		99,771			5,476			-			105,247
Net realized loss^(a)														(1,221,555	)		-			-		(1,221,555	)
Net unrealized (depreciation) appreciation^(b)		(267,439	)		44,955			(400,268	)		(622,752	)		(1,110,239	)		(76,159	)		85,682		(1,100,716	)
New investments, repayments and settlements:^(c)
Purchases		41,582,955			2,192,231			800,535			44,575,721			13,199,175			7,709,688			-		20,908,863
Settlements/repayments		(26,036,040	)		(2,000,000	)		-			(28,036,040	)		(21,689,548	)		(472,222	)		-		(22,161,770	)
Net amortization of premiums, PIK, discounts and fees		170,738			7,891			-			178,629			253,400			15,834			-		269,234
Sales		(499,500	)		-			-			(499,500	)		(4,739,437	)		-			-		(4,739,437	)
Fair Value as of September 30, 2019	$	180,890,814		$	17,315,785		$	400,267		$	198,606,866
Fair Value as of September 30, 2020													$	156,281,866		$	25,544,189		$	804,939	$	182,630,994

	(a)	Included in net realized ~~gain~~loss on the accompanying Statement of Operations for the nine months ended September 30, ~~2019.~~2020.

	(b)	Included in net change in unrealized depreciation on the accompanying Statement of Operations for the nine months ended September 30, ~~2019.~~2020.

(c)

The change in unrealized value attributable to investments still held at September 30, 2021 and 2020 was $354,876 and ~~2019 were~~ $(1,542,355) ~~and $(949,494)~~, respectively.

Investment Activities

The Company held a total of ~~202~~233 investments with an aggregate fair value of ~~$341,488,783~~$363,441,460 as of September 30, 2021. During the nine months ended September 30, 2021, the Company invested in 68 new investments for a combined $81,669,043 and in existing investments for a combined $7,643,513. The Company also received $66,357,177 in repayments from investments and $17,331,786 from investments sold during the nine months ended September 30, 2021.

The Company held a total of 216 investments with an aggregate fair value of $355,359,843 as of December 31, 2020. During the nine months ended September 30, 2020, the Company invested in 40 new investments for a combined $39,542,336 and in existing investments for a combined $12,834,005. The Company also received $27,907,668 in repayments from investments and $6,437,456 from investments sold during the nine months ended September 30, 2020.

The Company held a total of 176 investments with an aggregate fair value of $330,874,911 as of December 31, 2019. During the nine months ended September 30, 2019, the Company invested in 54 new investments for a combined $90,412,665 and in existing investments for a combined $20,244,318. The Company also received $46,240,554 in repayments from investments and $5,017,964 from investments sold during the nine months ended September 30, 2019.

Investment Concentrations

As of September 30, 2021, the Company’s investment portfolio consisted of investments in 203 companies located in 35 states across 24 different industries, with an aggregate fair value of $363,441,460. The five largest investments at fair value as of September 30, 2021 totaled $21,402,661, or 5.89%, of the Company’s total investment portfolio as of such date. As of September 30, 2021, the Company’s average investment was $1,565,249 at cost.

As of December 31, 2020, the Company’s investment portfolio consisted of investments in ~~174~~186 companies located in 35 states across 22 different industries, with an aggregate fair value of $341,488,783. The five largest investments at fair value as of September 30, 2020 totaled $21,213,433 or 6.21% of the Company’s total investment portfolio as of such date. As of September 30, 2020, the Company’s average investment was $1,733,010 at cost.

As of December 31, 2019, the Company’s investment portfolio consisted of investments in 164 companies located in 33 states across 22 different industries, with an aggregate fair value of $330,874,911.$355,359,843. The five largest investments at fair value as of December 31, ~~2019~~2020 totaled ~~$21,465,158~~$21,474,504, or ~~7.16%~~6.04%, of the Company’s total investment portfolio as of such date. As of December 31, ~~2019,~~2020, the Company’s average investment was ~~$2,028,793~~$1,661,994 at cost.

The following table outlines the Company’s investments by security type as of September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	September 30, 2020										December 31, 2019
			Percentage of					Percentage of					Percentage					Percentage
			Total					Total					of Total					of Total				September 30, 2021								December 31, 2020
	Cost		Investments			Fair Value		Investments			Cost		Investments			Fair Value		Investments				Cost	Percentage of Total Investments			Fair Value	Percentage of Total Investments			Cost	Percentage of Total Investments			Fair Value	Percentage of Total Investments
First lien debt	$	318,377,852		90.95	%	$	310,785,990		91.01	%	$	310,257,401		93.25	%	$	308,814,856		93.33	%	$	340,038,539	93.24	%	$	338,845,882	93.23	%	$	327,535,610	91.24	%	$	324,704,671	91.37	%
Second lien debt		30,569,567		8.73	%		29,897,854		8.76	%		21,344,024		6.41	%		21,340,798		6.46	%		24,157,376	6.62	%		24,119,805	6.64	%		30,167,095	8.40	%		29,690,845	8.36	%
Total Debt Investments		348,947,419		99.68	%		340,683,844		99.77	%		331,601,425		99.66	%		330,155,654		99.79	%		364,195,915	99.86	%		362,965,687	99.87	%		357,702,705	99.64	%		354,395,516	99.73	%
Equity and Preferred Shares		1,120,581		0.32	%		804,939		0.23	%		1,120,581		0.34	%		719,257		0.21	%		507,088	0.14	%		475,773	0.13	%		1,288,087	0.36	%		964,327	0.27	%
Total Equity Investments		1,120,581		0.32	%		804,939		0.23	%		1,120,581		0.34	%		719,257		0.21	%		507,088	0.14	%		475,773	0.13	%		1,288,087	0.36	%		964,327	0.27	%
Total Investments	$	350,068,000		100.00	%	$	341,488,783		100.00	%	$	332,722,006		100.00	%	$	330,874,911		100.00	%	$	364,703,003	100.00	%	$	363,441,460	100.00	%	$	358,990,792	100.00	%	$	355,359,843	100.00	%

Investments at fair value consisted of the following industry classifications as of September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	September 30, 2020					December 31, 2019
			Percentage of					Percentage of				September 30, 2021				December 31, 2020
Industry	Fair Value		Total Investments			Fair Value		Total Investments				Fair Value	Percentage of Total Investments			Fair Value	Percentage of Total Investments
Healthcare & Pharmaceuticals	$	72,569,221		21.25	%	$	76,108,451		23.00	%	$	82,801,247	22.78	%	$	76,049,509	21.40	%
Services: Business												53,604,572	14.75			50,490,828	14.21
High Tech Industries		64,178,581		18.79			58,327,844		17.63			53,168,849	14.63			61,586,355	17.33
Services: Business		45,402,430		13.30			44,376,771		13.41
Chemicals, Plastics & Rubber		28,042,227		8.21			28,747,162		8.69			28,865,006	7.94			31,878,575	8.97
Services: Consumer		19,709,417		5.77			25,757,966		7.78
Aerospace & Defense		19,320,069		5.66			12,911,355		3.90			25,097,543	6.91			20,755,039	5.84
Banking, Finance, Insurance & Real Estate		15,581,549		4.56			10,766,682		3.25			17,894,843	4.92			16,984,886	4.78
Containers, Packaging & Glass												14,541,484	4.00			11,243,766	3.16
Services: Consumer												14,062,428	3.87			15,809,209	4.45
Transportation: Cargo												10,690,852	2.94			7,974,497	2.24
Construction & Building												10,439,614	2.87			9,664,073	2.72
Capital Equipment		10,096,648		2.96			7,720,891		2.33			9,681,212	2.66			9,834,504	2.77
Construction & Building		9,583,136		2.81			6,989,790		2.11
Containers, Packaging & Glass		8,793,240		2.57			7,941,602		2.40
Consumer Goods: Non-durable		8,079,292		2.37			8,472,022		2.56
Automotive		7,239,147		2.12			6,294,153		1.90			9,098,037	2.50			12,179,594	3.43
Wholesale		7,028,587		2.06			7,219,568		2.18			7,036,510	1.94			7,121,878	2.00
Transportation: Cargo		7,028,298		2.06			7,192,803		2.17
Beverage, Food & Tobacco												6,601,590	1.82			4,394,178	1.24
Forest Products & Paper		5,171,247		1.51			4,379,293		1.32			4,990,017	1.37			4,842,432	1.36
Beverage, Food & Tobacco		3,910,300		1.15			3,930,263		1.19
Consumer Goods: Non-durable												4,868,071	1.34			4,868,015	1.37
Media: Advertising, Printing & Publishing		3,740,287		1.10			5,124,527		1.55			2,691,540	0.74			3,735,229	1.05
Consumer Goods: Durable		2,280,340		0.67			2,309,428		0.70
Retail		1,253,955		0.37			1,286,070		0.39
Environmental Industries												2,474,857	0.68			-	-
Telecommunications												1,000,845	0.28			-	-
Utilities: Electric												989,871	0.27			-	-
Metals & Mining		972,987		0.28			987,604		0.31			920,694	0.25			968,139	0.27
Hotel, Gaming & Leisure		951,346		0.27			3,503,815		1.06			895,385	0.25			895,385	0.26
Health Care Equipment & Services		556,479		0.16			526,851		0.17			527,913	0.15			526,939	0.15
Consumer Goods: Durable												498,480	0.14			2,285,922	0.64
Retail												-	-			1,270,891	0.36
	$	341,488,783		100.00	%	$	330,874,911		100.00	%	$	363,441,460	100.00	%	$	355,359,843	100.00	%

Investments at fair value were included in the following geographic regions of the United States as of September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	September 30, 2020					December 31, 2019
			Percentage of					Percentage of
			Total					Total			September 30, 2021					December 31, 2020
Geographic Region	Fair Value		Investments			Fair Value		Investments			Fair Value		Percentage of Total Investments			Fair Value		Percentage of Total Investments
Northeast	$	85,824,540		25.13	%	$	87,146,010		26.34	%	$	84,085,099		23.14	%	$	89,419,521		25.16	%
Midwest		74,389,638		21.78			68,357,102		20.66			81,480,616		22.42	%		78,184,041		22.00
West		56,500,337		16.55			52,320,288		15.81			52,568,540		14.46			55,600,298		15.65
Southwest		39,668,478		11.62			42,469,487		12.84			48,877,034		13.45			42,906,177		12.07
Southeast												48,714,046		13.40			41,633,230		11.72
East		39,469,099		11.56			39,053,575		11.80			36,446,108		10.03			37,063,003		10.43
Southeast		37,089,380		10.86			35,674,150		10.78
South												4,267,973		1.17			2,550,476		0.72
Northwest		4,027,586		1.18			4,083,800		1.23			4,045,140		1.11			6,019,773		1.69
South		2,556,018		0.75			1,770,499		0.54
Other^(a)		1,963,707		0.57			-		-			2,956,904		0.82			1,983,324		0.56
Total Investments	$	341,488,783		100.00	%	$	330,874,911		100.00	%	$	363,441,460		100.00	%	$	355,359,843		100.00	%

~~(a)~~

~~The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom.~~

(a) The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom. The borrower for UDG Healthcare, Congachant Limited, is located in Ireland.

The geographic region indicates the location of the headquarters of the Company’s portfolio companies. A portfolio company may have a number of other business locations in other geographic regions.

Investment Principal Repayments

The following table summarizes the contractual principal repayments and maturity of the Company’s investment portfolio by fiscal year, assuming no voluntary prepayments, as of September 30, ~~2020:~~2021:

For the Fiscal Years Ending December 31:	Amount			Amount
2020	$	754,813
2021		8,813,633		$	932,798
2022		21,775,107			14,225,869
2023		46,356,875			24,969,709
2024		80,285,522			55,006,964
2025					71,860,510
Thereafter		192,862,923			199,613,227
Total contractual repayments		350,848,873			366,609,077
Adjustments to cost basis on debt investments^(a)		(1,901,454	)		(2,413,162	)
Total Cost Basis of Debt Investments Held at September 30, 2020:	$	348,947,419

Total Cost Basis of Debt Investments Held at September 30, 2021:				$	364,195,915

~~(a)~~

~~Adjustment to cost basis related to unamortized balance of OID investments.~~

(a) Adjustment to cost basis related to unamortized balance of OID investments.

COVID-19 Developments

During the ~~three and~~ nine months ended September 30, ~~2020~~2021 and subsequent to September 30, ~~2020,~~2021, the COVID-19 pandemic ~~has had~~continues to have a significant impact on the U.S. economy. Certain of the Company's portfolio companies ~~have been~~were adversely impacted by the effects of the COVID-19 pandemic, which ~~have~~ resulted in a material adverse impact on the Company's net asset value, net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies and may continue to adversely affect the Company’s future net asset value, net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies.

Note 4. Related Party Transactions

Investment Advisory Agreement

The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Adviser. In accordance with the Investment Advisory Agreement, the Company pays the Adviser certain fees as compensation for its services, such fees consisting of a base management fee and an incentive fee (the “Incentive Fee”). The services the Adviser provides to the Company, subject to the overall supervision of the Board of Directors, include managing the day-to-day operations of, and providing investment services to, the Company. The Company also entered into a management fee waiver agreement with the Adviser (the “Waiver Agreement”), which the Company or the Adviser may terminate upon 60 days’ prior written notice.

Management Fee

The base management fee is calculated at an annual rate of 1.0% of the Company’s average gross assets including cash and any temporary investments in cash-equivalents, including U.S. government securities and other high-quality investment grade debt investments that mature in 12 months or less from the date of investment, payable quarterly in arrears on a calendar quarter basis.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive the base management fee to the extent necessary so that the base management fee payable under the Investment Advisory Agreement equals, and is calculated in the same manner as if, the base management fee otherwise payable by the Company were calculated at an annual rate equal to 0.65% (instead of an annual rate of 1.00%).

For the three and nine months ended September 30, 2021, the Company recorded base management fees of $947,361 and $2,810,141, respectively, and waivers to the base management fees of $331,576 and $983,548, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2020, the Company recorded base management fees of $874,188 and $2,697,570, respectively, and waivers to the base management fees of $305,966 and $944,150, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2019, the Company recorded base management fees of $820,094 and $2,367,188, respectively, and waivers to the base management fees of $287,033 and $828,516, respectively, as set forth within the accompanying statements of operations.

Incentive Fee

The Incentive Fee has two parts, as follows: the first part of the Incentive Fee is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means 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 Administration Agreement (as defined below) and any interest expense on any credit facilities or outstanding debt and dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee).

The Company determines pre-incentive fee net investment income in accordance with GAAP, including, in the case of investments with a deferred interest feature, such as debt instruments with PIK interest, OID securities and accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 1.0% per quarter (4.0% annualized). The Company determines its average gross assets during each fiscal quarter and calculates the base management fee payable with respect to such amount at the end of each fiscal quarter. As a result, a portion of the Company’s net investment income is included in its gross assets for the period between the date on which such income is earned and the date on which such income is distributed. Therefore, the Company’s net investment income used to calculate part of the Incentive Fee is also included in the amount of the Company’s gross assets used to calculate the 1.0% annual base management fee. The Company pays its Adviser an Incentive Fee with respect to its pre-incentive fee net investment income in each calendar quarter as follows:

	·	no amount is paid on the income-portion of the Incentive Fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle of 1.0% (4.0% annualized);

	·	100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 1.1765 % in any calendar quarter (4.706% annualized). The Company refers to this portion of its pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 1.1765%) as the “catch-up” provision. The catch-up is meant to provide the Adviser with 15.0% of the pre-incentive fee net investment income as if a hurdle rate did not apply if net investment income exceeds 1.1765% in any calendar quarter (4.706% annualized); and

	·	15.0% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 1.1765% in any calendar quarter (4.706% annualized) is payable to the Adviser.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive its right to receive the Incentive Fee on pre-incentive fee net investment income to the extent necessary so that such Incentive Fee equals, and is calculated in the same manner as, the corresponding Incentive Fee on pre-incentive fee net investment income, if such Incentive Fee (i) were calculated based upon the Adviser receiving 10.0% (instead of 15.0%) of the applicable pre-incentive fee net investment income and (ii) did not include any “catch-up” feature in favor of the Adviser.

The second part of the Incentive Fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 15.0% of the Company’s realized capital gains, if any, on a cumulative basis from June 16, 2015, the effective date of the Company’s registration statement on Form 10 (file no. 000-55426), through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain Incentive Fees with respect to each of the investments in the Company’s portfolio.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive the Incentive Fee on capital gains to the extent necessary so that such portion of the Incentive Fee equals, and is calculated in the same manner as, the corresponding Incentive Fee on capital gains, if such portion of the Incentive Fee were calculated based upon the Adviser receiving 10.0% (instead of 15.0%).

In addition, pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive both components of the Incentive Fee to the extent necessary so that it does not receive Incentive Fees which are attributable to income and gains of the Company that exceed an annualized rate of 12.0% in any calendar quarter.

The waivers from the Adviser will remain effective until terminated earlier by either party upon 60 days’ prior written notice.

Under the Investment Advisory Agreement, we do not pay any Capital Gains Incentive Fee in respect of unrealized capital appreciation in our portfolio. However, under U.S. generally accepted accounting principles, or GAAP, we are required to accrue for the Capital Gain Incentive Fee on a quarterly basis as if such unrealized capital appreciation were realized in full at the end of each period. If the Capital Gain Incentive Fee Base, adjusted as required by GAAP to include unrealized appreciation, is positive at the end of a period, then GAAP and the terms of the Investment Advisory Agreement require us to accrue a capital gain incentive fee equal to 20% of such amount, less the aggregate amount of actual capital gain incentive fees paid or capital gain incentive fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The resulting accrual under GAAP for a capital gain incentive fee payable in any period will result in additional expense if such cumulative amount is greater than in the prior period, or in a reversal of previously recorded expense if such cumulative amount is less than in the prior period. We can offer no assurance that any unrealized capital appreciation will be realized in the future.

For the three and nine months ended September 30, 2021, the Company recorded incentive fees related to net investment income of $260,092 and $647,839, respectively. Offsetting the incentive fees were waivers of the incentive fees of $234,083 and $583,056 for the three and nine months ended September 30, 2021, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2020, the Company recorded incentive fees related to net investment income of $356,461 and $1,641,419, respectively. Offsetting the incentive fees were waivers of the incentive fees of $320,815 and $1,437,466 for the three and nine months ended September 30, 2020, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2019, the Company recorded incentive fees related to net investment income of $680,250 and $1,939,486, respectively. Offsetting the incentive fees were waivers of the incentive fees of $543,178 and $1,553,628 for the three and nine months ended September 30, 2019, respectively, as set forth within the accompanying statements of operations.

Administration Agreement and Administrative Fee

The Company has also entered into an administration agreement (the “Administration Agreement”) with Audax Management Company, LLC (the “Administrator”) pursuant to which the Administrator provides administrative services to the Company. ~~Under~~Under the Administration Agreement, the Administrator performs, or oversees the performance of administrative services necessary for the operation of the Company, which include being responsible for the financial records which the Company is required to maintain and prepare reports filed with the SEC. In addition, the Administrator assists in determining and publishing the Company’s net asset value, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. The Company reimburses the Administrator for its allocable portion of the costs and expenses incurred by the Administrator for overhead in performance by the Administrator of its duties under the Administration Agreement, including the cost of facilities, office equipment and the Company’s allocable portion of cost of compensation and related expenses of its Chief Financial Officer and Chief Compliance Officer and their respective staffs, as well as any costs and expenses incurred by the Administrator relating to any administrative or operating services provided by the Administrator to the Company. Such costs are reflected as an administrative fee in the accompanying statements of operations.

The Company has also entered into a fee waiver agreement with the Administrator, pursuant to which the Administrator may waive, in whole or in part, its entitlement to receive reimbursements from the Company.

The Company accrued administrative fees of $66,250 and $198,750 for the three and nine months ended September 30, ~~2020,~~2021, respectively, as set forth within the accompanying statements of operations. The Company accrued administrative fees of $66,250 and $198,750 for the three and nine months ended September 30, ~~2019,~~2020, respectively, as set forth within the accompanying statements of operations.

Related Party Fees

Fees due to related parties as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 on the Company’s accompanying statements of assets and liabilities were as follows:

	September 30, 2020		December 31, 2019		September 30, 2021		December 31, 2020
Net base management fee due to Adviser	$	568,222	$	569,600	$	615,785	$	597,141
Net incentive fee due to Adviser		35,646		118,536		26,009		17,703
Total fees due to Adviser, net of waivers		603,868		688,136		641,794		614,844
Fee due to Administrator, net of waivers		66,250		66,250		66,250		66,250
Total Related Party Fees Due	$	670,118	$	754,386	$	708,044	$	681,094

Note 5. Net Increase in Net Assets Resulting from Operations Per Share of Common Stock:

The following table sets forth the computation of basic and diluted net increase in net assets resulting from operations per weighted average share of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for the three and nine months ended September 30, ~~2020~~2021 and ~~2019:~~2020:

Three Months Ended
September 30, 2020 Three Months Ended
September 30, 2019 Nine Months Ended
September 30, 2020 Nine Months Ended
September 30, 2019
Numerator for basic and diluted net increase in net assets resulting from operations per common share $ 9,195,505 $ 3,753,794 $ 4,420,458 $ 11,338,921
Denominator for basic and diluted weighted average common shares 38,265,852 33,504,019 37,528,161 31,856,849
Basic and diluted net increase in net assets resulting from operations per common share $ 0.24 $ 0.11 $ 0.12 $ 0.36

	Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Numerator for basic and diluted net increase in net assets resulting from operations per common share	$	4,241,313	$	9,195,505	$	13,539,858	$	4,420,458
Denominator for basic and diluted weighted average common shares		39,909,673		38,265,852		39,295,800		37,528,161

Basic and diluted net increase in net assets resulting from operations per common share	$	0.11	$	0.24	$	0.34	$	0.12

Note 6. Income Tax

The Company has elected to be regulated as a BDC under the 1940 Act, as well as elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company generally is not subject to corporate-level U.S. federal income taxes on any ordinary income or capital gains that it timely distributes as dividends for U.S. federal income tax purposes to its stockholders. To qualify to be treated as a RIC, the Company is required to meet certain source of income and asset diversification requirements, and to timely distribute dividends out of assets legally available for distributions to its stockholders of an amount generally equal to at least 90% of the sum of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any (i.e., “investment company taxable income,” determined without regard to any deduction for dividends paid), for each taxable year. The amount to be paid out as distributions to the Company’s stockholders is determined by the Board of Directors and is based on management’s estimate of the fiscal year earnings. Based on that estimate, the Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from corporate-level U.S. federal income taxes. Although the Company currently intends to distribute its net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, recognized in respect of each taxable year as dividends out of the Company’s assets legally available for distribution, the Company in the future may decide to retain for investment and be subject to entity-level income tax on such net capital gains. Additionally, depending on the level of taxable income earned in a taxable year, the Company may choose to carry forward taxable income in excess of current year distributions into the next taxable year and incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company will accrue an excise tax, if any, on estimated excess taxable income as such excess taxable income is earned.

The Company had aggregate distributions declared and paid to its stockholders for the year ended December 31, 2020 of $16,177,757, or $0.43 per share. The tax character of the distributions declared and paid represented $15,911,638 from ordinary income and $266,119 from tax return of capital. The Company had aggregate distributions declared and paid to its stockholders for the year ended December 31, 2019 of $17,084,202, or $0.52 per share. The tax character of the distributions declared and paid represented $16,941,968 from ordinary income and $142,234 from tax return of capital. ~~The~~

During the nine months ended September 30, 2021, the Company ~~had aggregate distributions~~ declared and paid ~~to its stockholders for the year ended December 31, 2018~~distributions of ~~$13,002,172,~~$7,801,905, or ~~$0.52~~$0.20 per share. The tax character of the distributions declared and paid represented ~~$12,537,786~~$7,656,579 from ordinary income ~~$450,049 capital gains,~~ and ~~$14,337~~$145,326 from tax return of capital.

During the nine months ended September 30, 2020, the Company declared and paid distributions of $8,125,607, or $0.215 per share. The tax character of the distributions declared and paid represented $8,125,607 from ordinary income. During the nine months ended September 30, 2019, the Company declared and paid distributions of $8,306,889, or $0.26 per share. The tax character of the distributions declared and paid represented $8,246,864 from ordinary income and $60,025 from capital gains.

The determination of the tax attributes of the Company’s distributions is made annually at the end of the

Company’s taxable year, based upon the Company’s taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full taxable year. The actual tax characteristics of distributions to stockholders will be reported to the Company’s stockholders subject to information reporting after the close of each calendar year on Form 1099-DIV.

AsGAAP requires adjustments to certain components of net assets to reflect permanent differences between financial and tax reporting. These adjustments have no effect on net asset value per share. For the years ended December 31, 2020 and 2019, the Company recorded the following adjustments for permanent book to tax differences to reflect their tax characteristics. The adjustments only change the classification in net assets in the statements of assets and liabilities. During the years ended December 31, 2020 and 2019, the Company reclassified for book purposes amounts arising from permanent book/tax differences primarily related to distribution redesignations and return of capital distributions.

	Year Ended December 31, 2020			Year Ended December 31, 2019
Capital in excess of par value	$	-		$	(1,583	)
Accumulated net investment income		(37,662	)		(49,515	)
Accumulated net realized gain (loss)		37,662			51,098

At December 31, 2020 and 2019, the components of ~~accumulated net unrealized appreciation on investments and net investment losses and losses on a tax basis~~distributable taxable earnings as detailed below differ from the amounts reflected in the Company’s statements of assets and liabilities by temporary book/tax differences primarily arising from amortization of organizational expenditures.

	As of December 31, 2019			As of December 31, 2020			As of December 31, 2019
Other temporary book/tax differences	$	(213,307	)	$	(192,992	)	$	(213,307	)
Net tax basis unrealized depreciation		(1,847,095	)		(1,261,543	)		(1,847,095	)
Accumulated net realized loss		(670,443	)		(3,157,649	)		(670,443	)
Components of tax distributable deficit at period end	$	(2,730,845	)
Components of tax distributable (deficit) earnings at period end				$	(4,612,184	)	$	(2,730,845	)

Certain losses incurred by the Company after October 31 of a taxable year are deemed to arise on the first business day of the Company’s next taxable year. The Company did not incur such losses after October 31 of the Company’s taxable year ended December 31, ~~2019.~~2020.

Capital losses are generally eligible to be carried forward indefinitely and retain their status as short-term or long-term in the manner originally incurred by the Company. ~~The Company did not maintain any capital losses as~~As of December 31, ~~2019.~~2020, the Company has long-term capital loss carryforward of $3,157,649. The Company has evaluated tax positions it has taken, expects to take, or that are otherwise relevant to the Company for purposes of determining whether any relevant tax positions would “more-likely-than-not” be sustained by the applicable tax authority in accordance with ASC Topic 740, “Income Taxes,” as modified by ASC Topic 946. The Company has analyzed such tax positions and has concluded that no unrecognized tax benefits should be recorded for uncertain tax positions for taxable years that may be open. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Company’s U.S. federal tax returns for fiscal years ~~2017,~~ 2018, 2019, and ~~2019~~2020 remain subject to examination by the Internal Revenue Service. The Company records tax positions that are not deemed to meet a more-likely-than-not threshold as tax expenses as well as any applicable penalties or interest associated with such positions. During each of the ~~three~~years ended December 31, 2020, 2019, and ~~nine months ended September 30, 2020 and 2019,~~2018, no tax expense or any related interest or penalties were incurred.

Note 7. Equity

~~On June 23, 2015, an~~An investor made ~~a $140,000,000~~ capital ~~commitment~~commitments to the ~~Company. On December 2, 2016,~~Company in the ~~same investor made an additional~~amounts set forth below as of the date opposite each capital commitment of $50,000,000. On December 7, 2017, the same investor made an additional capital commitment of $100,000,000. On March 22, 2019, the same investor made an additional capital commitment of $40,000,000. On September 23, 2019, the same investor made an additional capital commitment of $30,000,000. On March 20, 2020, the same investor made an additional capital commitment of $11,200,000. commitment:

Amount		Date
$	140,000,000	June 23, 2015
$	50,000,000	December 2, 2016
$	100,000,000	On December 7, 2017
$	40,000,000	March 22, 2019
$	30,000,000	September 23, 2019
$	11,200,000	March 20, 2020
$	8,900,000	May 28, 2021

As of September 30, ~~2020, $6,200,000 of total~~2021, all capital commitments ~~remained unfunded~~have been funded by the Company’s investors.

The number of shares of Common Stock issued and outstanding as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, were ~~38,343,577~~39,961,405 and ~~35,109,246,~~38,343,580, respectively.

The following table details the activity of Stockholders’ Equity for the three and nine months ended September 30, ~~2020~~2021 and ~~2019:~~2020:

Three Months Ended September 30, 2020 Common Stock Capital in Excess
of Par Value Total
Distributable
(Loss) Earnings Total
Stockholders'
Equity
Balance as of June 30, 2020 $ 37,793 $ 359,092,751 $ (15,631,499 ) $ 343,499,045
Net investment income - - 3,798,741 3,798,741
Net realized losses from investment transactions - - (1,039,704 ) (1,039,704 )
Net change in unrealized appreciation on investments - - 6,436,468 6,436,468
Issuance of shares 550 4,999,450 - 5,000,000
Balance as of September 30, 2020 $ 38,343 $ 364,092,201 $ (6,435,994 ) $ 357,694,550

Three Months Ended September 30, 2021	Common Stock		Capital in Excess of Par Value		Total Distributable (Loss) Earnings			Total Stockholders' Equity
Balance as of June 30, 2021	$	39,009	$	369,880,141	$	(5,339,624	)	$	364,579,526
Net investment income		-		-		3,964,041			3,964,041
Net realized gain from investment transactions		-		-		183,204			183,204
Net change in unrealized appreciation on investments		-		-		94,068			94,068
Issuance of shares		952		8,899,048		-			8,900,000
Balance as of September 30, 2021	$	39,961	$	378,779,189	$	(1,098,311	)	$	377,720,839

Three Months Ended September 30, 2019 Common Stock Capital in Excess
of Par Value Total
Distributable
(Loss) Earnings Total
Stockholders'
Equity
Balance as of March 31, 2019 $ 31,950 $ 304,182,330 $ (2,512,777 ) $ 301,701,503
Net investment income - - 4,397,403 4,397,403
Net realized losses from investment transactions - - (826,185 ) (826,185 )
Net change in unrealized appreciation on investments - - 182,576 182,576
Issuance of shares 1,589 14,998,411 - 15,000,000
Balance as of June 30, 2019 $ 33,539 $ 319,180,741 $ 1,241,017 $ 320,455,297

Three Months Ended September 30, 2020	Common Stock		Capital in Excess of Par Value		Total Distributable (Loss) Earnings			Total Stockholders' Equity
Balance as of June 30, 2020	$	37,793	$	359,092,751	$	(15,631,499	)	$	343,499,045
Net investment income		-		-		3,798,741			3,798,741
Net realized loss from investment transactions		-		-		(1,039,704	)		(1,039,704	)
Net change in unrealized appreciation on investments		-		-		6,436,468			6,436,468
Issuance of shares		550		4,999,450		-			5,000,000
Balance as of September 30, 2020	$	38,343	$	364,092,201	$	(6,435,994	)	$	357,694,550

Nine Months Ended September 30, 2020 Common Stock Capital in Excess
of Par Value Total
Distributable
(Loss) Earnings Total
Stockholders'
Equity
Balance as of December 31, 2019 $ 35,110 $ 334,095,408 $ (2,730,845 ) $ 331,399,673
Net investment income - - 12,195,676 12,195,676
Net realized losses from investment transactions - - (1,043,096 ) (1,043,096 )
Net change in unrealized depreciation on investments - - (6,732,122 ) (6,732,122 )
Issuance of shares 3,233 29,996,767 - 30,000,000
Distributions to Stockholders - - (8,125,607 ) (8,125,607 )
Reinvested Dividends - 26 - 26
Balance as of September 30, 2020 $ 38,343 $ 364,092,201 $ (6,435,994 ) $ 357,694,550

Nine Months Ended September 30, 2019 Common Stock Capital in Excess
of Par Value Total
Distributable
(Loss) Earnings Total
Stockholders'
Equity
Balance as of December 31, 2018 $ 28,270 $ 269,246,005 $ (1,851,040 ) $ 267,423,235
Net investment income - - 12,542,535 12,542,535
Net realized losses from investment transactions - - (724,454 ) (724,454 )
Net change in unrealized depreciation on investments - - (479,160 ) (479,160 )
Issuance of shares 5,269 49,994,731 - 50,000,000
Distributions to Stockholders - (60,025 ) (8,246,864 ) (8,306,889 )
Reinvested Dividends - 30 - 30
Balance as of September 30, 2019 $ 33,539 $ 319,180,741 $ 1,241,017 $ 320,455,297

Nine Months Ended September 30, 2021	Common Stock		Capital in Excess of Par Value			Total Distributable (Loss) Earnings			Total Stockholders' Equity
Balance as of December 31, 2020	$	38,343	$	363,826,108		$	(6,981,590	)	$	356,882,861
Net investment income		-		-			11,620,620			11,620,620
Net realized loss from investment transactions		-		-			(450,168	)		(450,168	)
Net change in unrealized appreciation on investments		-		-			2,369,406			2,369,406
Issuance of shares		1,618		15,098,382			-			15,100,000
Distributions to Stockholders		-		(145,326	)		(7,656,579	)		(7,801,905	)
Reinvested Dividends		-		25			-			25
Balance as of September 30, 2021	$	39,961	$	378,779,189		$	(1,098,311	)	$	377,720,839

Nine Months Ended September 30, 2020	Common Stock		Capital in Excess of Par Value		Total Distributable (Loss) Earnings			Total Stockholders' Equity
Balance as of December 31, 2019	$	35,110	$	334,095,408	$	(2,730,845	)	$	331,399,673
Net investment income		-		-		12,195,676			12,195,676
Net realized loss from investment transactions		-		-		(1,043,096	)		(1,043,096	)
Net change in unrealized depreciation on investments		-		-		(6,732,122	)		(6,732,122	)
Issuance of shares		3,233		29,996,767		-			30,000,000
Distributions to Stockholders		-		-		(8,125,607	)		(8,125,607	)
Reinvested Dividends		-		26		-			26
Balance as of September 30, 2020	$	38,343	$	364,092,201	$	(6,435,994	)	$	357,694,550

Note 8. Commitments and Contingencies

The Company may enter into certain credit agreements that include loan commitments where all or a portion of such commitment may be unfunded. The Company is generally obligated to fund the unfunded loan commitments at the borrowers’ discretion. Funded portions of credit agreements are presented on the accompanying schedule of investments. Unfunded loan commitments and funded portions of credit agreements are fair valued and unrealized appreciation or depreciation, if any, have been included in the accompanying statements of assets and liabilities and statements of operations.

The following table summarizes the Company’s significant contractual payment obligations as of September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

Investment Industry September 30, 2020 December 31, 2019
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26 Healthcare & Pharmaceuticals $ 761,905 $ 761,905
Service Logic, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/31/24 Services: Business 540,000 136,667
EverCommerce, Senior Secured Initial Term Loan, 5.73% (Libor + 5.50%), maturity 8/23/25 High Tech Industries 498,632 464,713
Advarra, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26 Healthcare & Pharmaceuticals 288,796 288,796
Ned Stevens, Senior Secured Revolver, 5.75% (Libor + 4.75%), maturity 9/30/25 Services: Consumer 130,719 130,719
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24 Healthcare & Pharmaceuticals 101,130 9,519
OEConnection, Senior Secured Initial Term Loan, 5.00% (Libor + 4.00%), maturity 9/25/26(i) High Tech Industries 96,860 142,180
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 6/3/26 Services: Business 50,125 50,125
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 8/31/26 Health Care Equipment & Services 37,278 98,225
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 3/18/27 Banking, Finance, Insurance & Real Estate - -
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 7/18/26 Containers, Packaging & Glass - 437,500
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 7/10/25 Healthcare & Pharmaceuticals - 147,052
Mavis, Senior Secured Closing Date Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 3/20/25 Automotive - 345,141
Tangent, Senior Secured Closing Date Term Loan (First Lien), 4.98% (Libor + 4.75%), maturity 11/30/24 Construction & Building - 333,333
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.73% (Libor + 4.50%), maturity 9/30/26 Chemicals, Plastics & Rubber - 252,692
Alpaca, Senior Secured Term Loan, 7.75% (Libor + 6.75%), maturity 4/19/24 Healthcare & Pharmaceuticals - 124,637
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 5/14/26 Services: Consumer - 100,000
Ansira, Unitranche, 7.50% (Libor + 6.50%), maturity 12/20/24 Media: Advertising, Printing & Publishing - 38,214
AmeriLife Group, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/12/26 Banking, Finance, Insurance & Real Estate - 17,544

$ 2,505,445 $ 3,878,962

Investment	Industry	September 30, 2021		December 31, 2020
AmeriVet, Senior Secured Incremental Delayed Draw Term Loan, 5.75% (Libor + 4.75%), maturity 6/5/24	Healthcare & Pharmaceuticals	$	884,000	$	-
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/24	Healthcare & Pharmaceuticals		761,905		1,100,952
CoolSys, Senior Secured Closing Date Initial Term Loan, 5.50% (Libor + 4.75%), maturity 8/11/28	Services: Business		555,556		-
Vertellus, Senior Secured Revolving Credit Loan, 7.00% (Libor + 6.00%), maturity 12/22/25	Chemicals, Plastics & Rubber		486,239		486,239
Service Logic, Senior Secured Closing Date Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/29/27	Services: Business		426,923		546,154
Therapy Brands, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 5/18/28	Healthcare & Pharmaceuticals		382,979		-
Capstone Logistics, Senior Secured Closing Date Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/12/27	Transportation: Cargo		358,491		358,491
EPIC Insurance, Unitranche, 6.00% (Libor + 5.25%), maturity 9/30/28	Banking, Finance, Insurance & Real Estate		344,828		-
Gastro Health, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.50%), maturity 7/3/28	Healthcare & Pharmaceuticals		328,000		-
Evans Network, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.25%), maturity 8/19/28	Transportation: Cargo		326,531		-
Dessert Holdings, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 6/9/28	Beverage, Food & Tobacco		281,250		-
Epic Staffing Group, Senior Secured Initial Term Loan, 7.00% (Libor + 6.00%), maturity 2/5/27	Services: Business		243,243		-
TricorBraun, Senior Secured Closing Date Initial Term Loan (First Lien), 3.75% (Libor + 3.25%), maturity 3/3/28	Containers, Packaging & Glass		222,118		-
Flow Control Group, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.75%), maturity 3/31/28	Capital Equipment		188,333		-
SIAA, Unitranche, 7.25% (Libor + 6.25%), maturity 4/28/28	Banking, Finance, Insurance & Real Estate		175,439		-
Insight Global, Senior Secured Initial Revolving Loan, 6.75% (Libor + 6.00%), maturity 9/22/27	Services: Business		134,177		-
Stepping Stones, Unitranche, 7.25% (Libor + 6.25%), maturity 3/9/27	Healthcare & Pharmaceuticals		131,390		-
Ned Stevens, Senior Secured Revolving Loan, 5.75% (Libor + 4.75%), maturity 9/30/25	Services: Consumer		130,719		130,719
Applied Adhesives, Senior Secured Term A Loan, 5.75% (Libor + 5.00%), maturity 3/12/27	Containers, Packaging & Glass		129,870		-
EPIC Insurance, Senior Secured Revolving Loan, 6.00% (Libor + 5.25%), maturity 9/30/27	Banking, Finance, Insurance & Real Estate		125,909		-
ImageFirst, Senior Secured Initial Term Loan, 5.25% (Libor + 4.50%), maturity 4/27/28	Services: Business		86,364		-
Solis Mammography, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.75%), maturity 4/17/28	Healthcare & Pharmaceuticals		20,000		-
Therma Holdings, Senior Secured Initial Term Loan, 4.75% (Libor + 4.00%), maturity 12/16/27	Services: Business		80,645		80,645
Alpaca, Senior Secured Revolver, 6.25% (Libor + 5.25%), maturity 4/19/24	Healthcare & Pharmaceuticals		80,244		51,770
Culligan, Senior Secured Initial Term B Loan, 4.50% (Libor + 4.00%), maturity 7/31/28	Environmental Industries		62,500		-
Applied Adhesives, Senior Secured Revolving Loan, 5.75% (Libor + 5.00%), maturity 3/12/27	Containers, Packaging & Glass		34,133		-
Planview, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 12/17/27	High Tech Industries		-	��	408,879
HighTower, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 1/31/25	Banking, Finance, Insurance & Real Estate		-		241,935
EverCommerce, Senior Secured Initial Term Loan, 5.65% (Libor + 5.50%), maturity 8/23/25	High Tech Industries		-		144,200
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.13% (Libor + 4.00%), maturity 6/3/26	Services: Business		-		50,125
Stepping Stones, Senior Secured COVID-19 Revolving Loan, 6.75% (Libor + 5.75%), maturity 6/30/21	Healthcare & Pharmaceuticals		-		36,644
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24	Healthcare & Pharmaceuticals		-		33,949
OEConnection, Senior Secured Initial Term Loan, 4.13% (Libor + 4.00%), maturity 9/25/26	High Tech Industries		-		5,865
		$	6,981,786	$	3,676,567

Unfunded commitments ~~represent~~represented all amounts unfunded as of September 30, ~~2020~~2021 and December 31, ~~2019.~~2020. These amounts may or may not be funded to the borrowing party now or in the future.

Note 9. Financial Highlights

	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Per Share Data:
Net asset value, beginning of period	$	9.09		$	9.44		$	9.44		$	9.46		$	9.35		$	9.09		$	9.31		$	9.44
Net investment income^(a)		0.10			0.13			0.32			0.39			0.10			0.10			0.30			0.32
Net realized (loss) gain on investments and change in unrealized depreciation on investments^(a)(b)		0.14			(0.02	)		(0.22	)		(0.04	)
Net realized gain (loss) on investments and change in
unrealized appreciation (depreciation) on investments^(a)(b)(c)														0.00			0.14			0.04			(0.22	)
Net increase (decrease) in net assets resulting from operations	$	0.24		$	0.11		$	0.10		$	0.35		$	0.10		$	0.24		$	0.34		$	0.10

Effect of equity capital activity
Distributions to stockholders from net investment income		-			-			(0.21	)		(0.25	)		-			-			(0.20	)		(0.21	)
Distributions to stockholders from return of capital		-			-			-			(0.01	)
Distributions to stockholders from return of capital^(c)														-			-			0.00			-
Net asset value at end of period	$	9.33		$	9.55		$	9.33		$	9.55		$	9.45		$	9.33		$	9.45		$	9.33
Total return^(c)(g)		2.64	%		1.17	%		1.16	%		3.69	%
Total return^(d)(h)														1.07	%		2.64	%		3.65	%		1.16	%
Shares of common stock outstanding at end of period		38,343,577			33,538,562			38,343,577			33,538,562			39,961,405			38,343,577			39,961,405			38,343,577

Statement of Assets and Liabilities Data:
Net assets at end of period	$	357,694,550		$	320,455,297		$	357,694,550		$	320,455,297		$	377,720,839		$	357,694,550		$	377,720,839		$	357,694,550
Average net assets^(d)		353,156,796			319,461,535			348,029,571			308,451,516
Average net assets^(e)														376,129,598			353,156,796			370,187,593			348,029,571

Ratio/Supplemental Data:
Ratio of gross expenses to average net assets- annualized^(e)		1.76	%		2.25	%		2.02	%		2.36	%
Ratio of net expenses to average net assets- annualized^(f)		1.06	%		1.22	%		1.10	%		1.32	%
Ratio of net investment income to average net assets- 4.28% 5.46% 4.68% 5.44% annualized
Portfolio turnover^(g)		0.21	%		1.58	%		1.95	%		1.64	%
Ratio of gross expenses to average net assets-annualized^(f)														1.63	%		1.76	%		1.62	%		2.02	%
Ratio of net expenses to average net assets-annualized^(g)														1.04	%		1.06	%		1.05	%		1.10	%
Ratio of net investment income to average net assets-annualized														4.18	%		4.28	%		4.20	%		4.68	%
Portfolio turnover^(h)														1.38	%		0.21	%		4.80	%		1.95	%

(a)

Based on weighted average basic per share of Common Stock data.

	(b)	The per share amount varies from the net realized and unrealized gain (loss) for the period because of the timing of sales
	of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(c)	~~(c)~~For the three and nine months ended September 30, 2021, the 0.00 is due to rounding.
(d)	Total return is based on the change in net asset value during the respective periods. Total return also takes into account
	dividends and distributions, if any, reinvested in accordance with the Company's dividend reinvestment plan.

~~(d)~~(e)

Average net assets are computed using the average balance of net assets at the end of each month of the reporting period.

~~(e)~~(f)

Ratio of gross expenses to average net assets is computed using expenses before waivers from the Adviser and Administrator.

~~(f)~~(g)

Ratio of net expenses to average net assets is computed using total expenses net of waivers from the Adviser and Administrator.

~~(g)~~(h)

Not annualized.

Note 10. Indemnification

In the normal course of business, the Company may enter into certain contracts that provide a variety of indemnities. The Company’s maximum exposure under these indemnities is unknown. The Company does not consider it necessary to record a liability in this regard.

Note 11. Subsequent Events

~~COVID-19~~Subsequent to September 30, 2021, the Company invested $4,381,567 at cost in 16 portfolio companies.

The Company is continuing to assess the adverse financial and operational consequences that have resulted and may in the future result from the COVID-19 pandemic and the associated economic turbulence. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of the COVID-19 pandemic, including the consequences resulting from another wave of infections and the actions taken by authorities and other entities to contain the spread of COVID-19, prevent another wave of infections or reduce its impact, all of which are beyond our control. As such, the Company cannot predict the extent to which its financial condition and results of operations will continue to be affected, and the magnitude of such consequences remains uncertain as of the filing of this quarterly report.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In this quarterly report on Form 10-Q, except where the context suggests otherwise, the terms “we,” us,” our” and the “Company” refer to Audax Credit BDC Inc. The information contained in this section should be read in the conjunction with the financial statements and notes to the financial statements appearing elsewhere in this quarterly report.

This quarterly report and other statements contain forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

our future operating results;

our business prospects and the prospects of our portfolio companies;

our ability to continue to effectively manage our business due to COVID-19 and similar pandemics;

the ability of our portfolio companies to achieve their objectives;

the timing of cash flows, if any, from the operations of our portfolio companies;

the ability of our Adviser to locate suitable investments for us and to monitor and administer our investments;

changes in the general economy;

risk associated with possible disruptions in our operations or the economy generally;

the effect of investments that we expect to make;

our contractual arrangements and relationships with third parties;

actual and potential conflicts of interest with Adviser and its affiliates;

the dependence of our future success on the general economy and its effect on the industries in which we invest;

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

the adequacy of our financing sources and working capital;

the ability of our Adviser and its affiliates to attract and retain highly talented professionals;

our ability to qualify and maintain our qualification as a BDC and as a RIC; and

the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K filed on March ~~17, 2020~~19, 2021 (file no. 814-01154) (the “Annual Report”) ~~and our Current Report on Form 8-K filed on May 18, 2020 (file no. 814-01154) (“Form 8-K”)~~.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this quarterly report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled “Item 1A. Risk Factors” of this quarterly report and our Annual Report as well as risk factors described or identified in other filings we may make with the ~~Form 8-K.~~SEC from time to time. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this quarterly report. Moreover, we assume no duty and do not undertake to update the forward-looking statements. The forward-looking statements and projections contained in this quarterly report are excluded from the safe harbor protection provided by Section 27A of the Securities Act and provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

OVERVIEW

Audax Credit BDC Inc. is a Delaware corporation that was formed on January 29, 2015. We are an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a BDC under the 1940 Act. In addition, we have elected to be treated for U.S. federal income tax purposes and intend to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code.

Our investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. We intend to meet our investment objective by investing primarily in senior secured debt of privately owned U.S. ~~middle-~~middle market companies. We intend to invest at least 80% of our net assets plus the amount of any borrowings in “credit instruments,” which we define as any fixed income instruments. We may also invest, at any time and from time to time, in syndicated loans, securities, structured products and other financial instruments, including, without limitation, corporate and government bonds, convertible securities, term loans, equity securities (both common and preferred), various debt securities (both secured and unsecured), dividend-paying equity, royalties, collateralized loan obligations, and warrants.

Although we have no present intention of doing so, we may decide to incur leverage. If we do incur leverage, however, we anticipate that it will be used in limited circumstances and on a short-term basis for purposes such as funding distributions. As a BDC, we are limited in our use of leverage under the 1940 Act. Under the 1940 Act, a BDC generally is required to maintain asset coverage of 200% for senior securities representing indebtedness (such as borrowings from banks or other financial institutions) or stock (such as preferred stock). The Small Business Credit Availability Act (the “SBCAA”), which was signed into law on March 23, 2018, provides that a BDC's required asset coverage under the 1940 Act may be reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). This reduction in asset coverage permits a BDC to double the amount of leverage it may utilize, subject to certain approval, timing and reporting requirements, including either stockholder approval or approval of a majority of the directors who are not “interested persons” (as defined in the 1940 Act) of the BDC and who have no financial interest in the arrangement. In addition, as a non-traded BDC, if we receive the relevant approval to increase our authorized leverage, we will be required to offer our stockholders the opportunity to sell their shares of Common Stock over the next year following the calendar quarter in which the approval was obtained. In determining whether to use leverage, we will analyze the maturity, covenants and interest rate structure of the proposed borrowings, as well as the risks of such borrowings within the context of our investment outlook and the impact of leverage on our investment portfolio. The amount of any leverage that we will employ as a BDC will be subject to oversight by our Board of Directors.

We generate revenue in the form of interest on the debt securities that we hold in our portfolio companies. The senior debt we invest in generally has stated terms of three to ten years. Our senior debt investments generally bear interest at a floating rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, some of our investments may provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally will become due at the maturity date. In addition, we may generate revenue in the form of commitment and other fees in connection with transactions, although we do not expect to do so. OID as well as market discount and premium are accreted and amortized in determining our interest income. We record any prepayment premiums on loans and debt securities as income.

COVID-19 Developments

The market disruptions caused by the ongoing COVID-19 pandemic ~~have continued~~may continue to adversely affect the business operations of some ~~if not all,~~ of our portfolio companies ~~and have affected,~~ and may continue to affect our operations and the operations of our Adviser. While we are closely monitoring this situation, we cannot predict the impact of COVID-19 on our future financial condition with any level of certainty. However, we expect that the COVID-19 pandemic will continue to have a material adverse impact on our future net asset value, net investment income, the fair value of our portfolio investments, and the results of operations and financial condition of our portfolio companies. For more information, see “~~Recent Developments—COVID-19 Developments~~~~” below.~~

~~PORTFOLIO COMPOSITION AND INVESTMENT ACTIVITY~~

~~Portfolio Composition~~

The fair value of our investments, comprised of syndicated loans and equity, as of September 30, 2020, was approximately $341,488,783 and held in 174 portfolio companies as of September 30, 2020. The fair value of our investments, comprised of syndicated loans and equity, as of December 31, 2019, was approximately $330,874,911 and held in 164 portfolio companies as of December 31, 2019.

During the nine months ended September 30, 2020, we invested in 40 new syndicated investments for a combined $39,542,336 and in existing investments for a combined $12,834,005. We also received $27,907,668 in repayments from investments and $6,437,456 from investments sold during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, we invested in 54 new syndicated investments for a combined $90,412,665 and in existing investments for a combined $20,244,318. We also received $46,240,554 in repayments from investments and $5,017,964 from investments sold during the nine months ended September 30, 2019. The decrease in the value of our investments during the nine months ended September 30, 2020 as compared to the same period during the previous year was primarily due to the adverse impact of the COVID-19 pandemic impact on market conditions.

In addition, for the three and nine months ended September 30, 2020, we had a change in unrealized appreciation (depreciation) of approximately $6,436,468 and $(6,732,122), respectively, and realized losses of $1,039,704 and $1,043,096, respectively. In addition, for the three and nine months ended September 30, 2019, we had a change in unrealized appreciation (depreciation) of approximately $182,576 and $(479,160), respectively, and realized losses of $826,185 and $724,454, respectively.

~~Our investment activity for the nine months ended September 30, 2020 and 2019, is presented below:~~

Nine Months Ended
September 30, 2020 Nine Months Ended
September 30, 2019
Beginning investment portfolio, at fair value $ 330,874,911 $ 264,662,881
Investments in new portfolio investments 39,542,336 90,412,665
Investments in existing portfolio investments 12,834,005 20,244,318
Principal repayments (27,907,668 ) (46,240,554 )
Proceeds from investments sold (6,437,456 ) (5,017,964 )
Change in premiums, discounts and amortization 357,873 199,813
Net change in unrealized depreciation on investments (6,732,122 ) (479,160 )
Realized loss on investments (1,043,096 ) (724,452 )
Ending portfolio investment activity, at fair value $ 341,488,783 $ 323,057,547
Number of portfolio investments 202 168
Average investment amount, at cost $ 1,733,010 $ 1,935,441
Percentage of investments at floating rates 99.41 % 100.00 %

~~As of September 30, 2020 and December 31, 2019, our entire portfolio consisted of non-controlled/non-affiliated investments.~~

~~RECENT DEVELOPMENTS~~

~~Subsequent to September 30, 2020 and through November 13, 2020, we invested $2,453,983 at cost in eight portfolio companies.~~

~~COVID-19 Developments~~

As the COVID-19 outbreak ~~continues~~ to evolve, we cannot ~~reasonably~~ predict its ~~full~~continuing impact on our business operations, including its duration in the United States and worldwide, the uncertainty surrounding the various vaccination mandates as more contagious strains of the virus emerge in various countries, including the United States (particularly the “Delta variant”). Such contagious variants, in conjunction with more frequent and concentrated social gatherings, including the re-opening of many schools and colleges across the country, and more relaxed mask requirements and social distancing norms have resulted in surges in the rates of COVID-19 infections worldwide. Furthermore, large portions of the population in the United States and elsewhere remain unvaccinated due to limited access to vaccines, the politicization of the vaccine mandates, the general public distrust of the safety and efficacy of the vaccine and the ~~magnitude of the economic impact of the outbreak, including with respect~~potential future adverse reactions to the travel restrictions, business closures and other quarantine measures imposed on service providers and other individuals by various local, state, and federal governmental authorities, as well as non-U.S. governmental authorities in response to another wavevaccine. Such developments may increase the risk that the pandemic will continue for a prolonged period of ~~infections.~~time. As such, the extent to which COVID-19 and/or other health pandemics may ~~continue to~~affect negatively ~~affect~~ our operating results and financial condition and the operating results and financial condition of some of our portfolio companies, oras well as the duration of any potential business or supply-chain disruption for ~~us, our Adviser and/or~~ our portfolio companies, is uncertain.

We will continue to monitor ~~the rapidly evolving~~ developments relating to the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health officials and may take additional actions based on their recommendations. In these circumstances, there may be developments beyond our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impacts of COVID-19 on our financial condition, results of operations or cash flows in the future. However, we do expect that it ~~will~~may continue to have ~~a material~~an adverse impact on our future net asset value, net investment income, the fair value of our portfolio investments, and the results of operations and financial condition of some of our portfolio companies, and that such adverse effects ~~will~~may persist for the duration of the pandemic and potentially for some time thereafter.

PORTFOLIO COMPOSITION AND INVESTMENT ACTIVITY

Portfolio Composition

The fair value of our investments, comprised of syndicated loans and equity, as of September 30, 2021, was approximately $363,441,460 and held in 203 portfolio companies. The fair value of our investments, comprised of syndicated loans and equity, as of December 31, 2020, was approximately $355,359,843 and held in 186 portfolio companies.

During the nine months ended September 30, 2021, we invested in 68 new investments for a combined $81,669,043 and in existing investments for a combined $7,643,513. We also received $66,357,177 in repayments from investments and $17,331,786 from investments sold during the nine months ended September 30, 2021. During the nine months ended September 30, 2020, we invested in 40 new syndicated investments for a combined $39,542,336 and in existing investments for a combined $12,834,005. We also received $27,907,668 in repayments from investments and $6,437,456 from investments sold during the nine months ended September 30, 2020.

In addition, for the three and nine months ended September 30, 2021, we had a change in unrealized appreciation of approximately $94,068 and $2,369,406, respectively, and realized gains (losses) of $183,204 and $(450,168), respectively. For the three and nine months ended September 30, 2020, we had a change in unrealized appreciation (depreciation) of approximately $6,436,468 and $(6,732,122), respectively, and realized losses of $1,039,704 and $1,043,096, respectively.

Our investment activity for the nine months ended September 30, 2021 and 2020, is presented below:

	Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Beginning investment portfolio, at fair value	$	355,359,843		$	330,874,911
Investments in new portfolio investments		81,669,043			39,542,336
Investments in existing portfolio investments		7,643,513			12,834,005
Principal repayments		(66,357,177	)		(27,907,668	)
Proceeds from investments sold		(17,331,786	)		(6,437,456	)
Change in premiums, discounts and amortization		538,786			357,873
Net change in unrealized appreciation (depreciation) on investments		2,369,406			(6,732,122	)
Realized loss on investments		(450,168	)		(1,043,096	)
Ending portfolio investment activity, at fair value	$	363,441,460		$	341,488,783
Number of portfolio investments		233			202
Average investment amount, at cost	$	1,565,249		$	1,733,010
Percentage of investments at floating rates		99.42	%		99.41	%

As of September 30, 2021 and December 31, 2020, our entire portfolio consisted of non-controlled/non-affiliated investments.

RECENT DEVELOPMENTS

Subsequent to September 30, 2021 and through November 11, 2021, we invested $4,381,567 at cost in 16 portfolio companies.

RESULTS OF OPERATIONS

The net increase or decrease in net assets from operations may vary substantially from period to period as a result of various factors, including the recognition of realized gains and/or losses and net change in unrealized appreciation and depreciation. This “Results of Operations” section should be read in conjunction with the “COVID-19 Developments” section above.

Revenue

Total investment income for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 is presented in the table below.

	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019		Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Total interest income from non-controlled/non- affiliated investments	$	4,721,470	$	5,347,398	$	14,885,290	$	15,433,946
Total interest income from non-controlled/non-affiliated investments									$	4,924,039	$	4,721,470	$	14,455,194	$	14,885,290
Total other interest income		1,058		28,722		31,053		122,237		477		1,058		1,107		31,053
Total other income		14,577		5,214		153,950		38,364		20,772		14,577		83,774		153,950
Total investment income	$	4,737,105	$	5,381,334	$	15,070,293	$	15,594,547	$	4,945,288	$	4,737,105	$	14,540,075	$	15,070,293

Total investment income for the three months ended September 30, ~~2020 decreased~~2021 increased to ~~$4,737,106~~$4,945,288 from ~~$5,381,334~~$4,737,106 for the three months ended September 30, ~~2019,~~2020, and was driven by our increasing investment balance which was partially offset by a decrease in LIBOR over the ~~period which was partially offset by our increasing investment balance.~~period. Total investment income for the nine months ended September 30, ~~2020~~2021 decreased to ~~$15,070,293~~$14,540,075 from ~~$15,594,547~~$15,070,293 for the nine months ended September 30, ~~2019,~~2020, and was driven by a decrease in LIBOR over the period which was partially offset by our increasing investment balance. As of September 30, ~~2020~~2021 and ~~2019,~~2020, the size of our debt portfolio was ~~$348,947,419~~$364,195,915 and ~~$324,033,544~~$348,947,419 at amortized cost, respectively, with total debt principal amount outstanding of ~~$350,848,873~~$366,609,077 and ~~$325,653,783,~~$350,848,873, respectively.

Expenses

Total expenses net of waivers for the three and nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, were as follows:

	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Base management fee^(a)	$	874,188		$	820,094		$	2,697,570		$	2,367,188		$	947,361		$	874,188		$	2,810,141		$	2,697,570
Incentive fee^(a)		356,461			680,250			1,641,419			1,939,486			260,092			356,461			647,839			1,641,419
Administrative fee^(a)		66,250			66,250			198,750			198,750			66,250			66,250			198,750			198,750
Directors' fees		52,500			52,500			157,500			157,500			56,250			52,500			168,750			157,500
Professional fees		132,514			136,660			369,572			524,791			108,251			132,514			345,947			369,572
Other expenses		83,232			58,388			191,422			246,441			108,702			83,232			314,632			191,422
Total expenses		1,565,145			1,814,142			5,256,233			5,434,156			1,546,906			1,565,145			4,486,059			5,256,233
Base management fee waivers^(a)		(305,966	)		(287,033	)		(944,150	)		(828,516	)		(331,576	)		(305,966	)		(983,548	)		(944,150	)
Incentive fee waivers^(a)		(320,815	)		(543,178	)		(1,437,466	)		(1,553,628	)		(234,083	)		(320,815	)		(583,056	)		(1,437,466	)
Total expenses, net of waivers	$	938,364		$	983,931		$	2,874,617		$	3,052,012		$	981,247		$	938,364		$	2,919,455		$	2,874,617

^{(a) Refer to Note 4-Related Party Transactions within the financial statements for a description of the relevant fees.}

The increase in base management fees before waivers for the three months ended September 30, ~~2020~~2021 in comparison to the three months ended September 30, ~~2019~~2020 was driven by our increasing invested balance. For the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we accrued gross base management fees before waivers of ~~$874,188~~$947,361 and ~~$820,094,~~$874,188, respectively. Offsetting those fees, we recognized base management fee waivers of $331,576 and $305,966, ~~and $287,033,~~ respectively. For the three months ended September 30, 2021, we accrued incentive fees related to net investment income before waivers of $260,092, offset by incentive fee waivers of $234,083. For the three months ended September 30, 2020, we accrued incentive fees related to net investment income before waivers of $356,461, offset by incentive fee waivers of $320,815. ~~For the three months ended September 30, 2019, we accrued incentive fees related to net investment income before waivers of $680,250, offset by incentive fee waivers of $543,178.~~ Additionally, we accrued $66,250 of administrative fees for both the three months ended September 30, ~~2020~~2021 and ~~2019.~~2020. Refer to Note 4 — Related Party Transactions in the notes accompanying our financial statements for more information related to base management fees, incentive fees and waivers.

During the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we incurred professional fees of ~~$132,514~~$108,251 and ~~$136,660,~~$132,514, respectively, related to audit fees, tax fees, and legal ~~fees.~~expenses. The decrease in professional fees was driven by a decrease in legal expenses during the three months ended September 30, 2021

During the three months ended September 30, 2021 and 2020, we incurred other expenses of $108,702 and $83,232, respectively, related to subscription fees, operating fees, custody fees, and other company expenses. The increase in other expenses was driven by an increase in the Delaware state franchise tax applicable to the Company for the three months ended September 30, 2021. We also incurred expenses related to fees paid to our independent directors of $56,250 and $52,500 for ~~both~~each of the ~~three months~~three-month period ended September 30, 2021 and 2020, ~~and 2019.~~respectively.

The increase in base management fees before waivers for the nine months ended September 30, ~~2020~~2021 in comparison to the nine months ended September 30, ~~2019~~2020 was driven by our increasing invested balance. For the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we accrued gross base management fees before waivers of ~~$2,697,570~~$2,810,141 and ~~$2,367,188,~~$2,697,570, respectively. Offsetting those fees, we recognized base management fee waivers of $983,548 and $944,150, ~~and $828,516,~~ respectively. For the nine months ended September 30, 2021, we accrued incentive fees related to net investment income before waivers of $647,839, offset by incentive fee waivers of $583,056. For the nine months ended September 30, 2020, we accrued incentive fees related to net investment income before waivers of $1,641,419, offset by incentive fee waivers of $1,437,466. ~~For the nine months ended September 30, 2019, we accrued~~The decrease in incentive fees related to net investment income ~~before waivers~~for the nine months ended September 30, 2021 in comparison to the nine months ended September 30, 2020 was driven by the decrease in LIBOR which decreased the yield of ~~$1,939,486, offset by incentive fee waivers of $1,553,628.~~our variable rate debt investments. Additionally, we accrued $198,750 of administrative fees for both the nine months ended September 30, ~~2020~~2021 and ~~2019.~~2020. Refer to Note 4 — Related Party Transactions in the notes accompanying our financial statements for more information related to base management fees, incentive fees and waivers.

During the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we incurred professional fees of ~~$369,572~~$345,947 and ~~$524,791,~~$369,572, respectively, related to audit fees, tax fees, and legal ~~fees.~~expenses. The decrease in professional fees was driven by a decrease in legal expenses during the nine months ended September 30, ~~2020 as compared to~~2021

During the nine months ended September 30, ~~2019.~~2021 and 2020, we incurred other expenses of $314,632 and $191,422, respectively, related to subscription fees, operating fees, custody fees, and other company expenses. The increase in other expenses was driven by an increase in the Delaware state franchise tax applicable to the Company during the nine months ended September 30, 2021. We also incurred expenses related to fees paid to our independent directors of $168,750 and $157,500 for ~~both~~each of the ~~nine months~~nine-month period ended September 30, 2021 and 2020, ~~and 2019.~~respectively.

Realized and Unrealized Gains and Losses

We recognized ~~$1,039,704~~$183,204 and ~~$826,185~~$(1,039,704) in net realized ~~losses~~gains (losses) for the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, respectively. We recognized ~~$1,043,096~~$450,168 and ~~$724,454~~$1,043,096 in net realized losses ~~gains~~ for the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

Net change in unrealized appreciation (depreciation) on investments for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 was as follows:

Type	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019			Three Months Ended September 30, 2021		Three Months Ended September 30, 2020			Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
First Lien Debt	$	6,103,810		$	232,811		$	(6,149,319	)	$	89,811		$	25,297	$	6,103,810		$	1,638,283	$	(6,149,319	)
Second Lien Debt		381,273			(50,235	)		(668,484	)		(168,705	)		20,633		381,273			438,678		(668,484	)
Equity and Preferred Shares		(48,615	)		-			85,681			(400,266	)		48,138		(48,615	)		292,445		85,681
Net change in unrealized appreciation (depreciation) on investments	$	6,436,468		$	182,576		$	(6,732,122	)	$	(479,160	)	$	94,068	$	6,436,468		$	2,369,406	$	(6,732,122	)

Net change in unrealized appreciation ~~(depreciation)~~ on investments during the three and nine months ended September 30, ~~2020~~2021 was primarily due to the change in the results and financial position of the portfolio companies. Net change in unrealized ~~depreciation~~appreciation (depreciation) on investments during the three and nine months ended September 30, ~~2019~~2020 was primarily due to the change in the results and financial position of the portfolio companies.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We generate cash primarily from the net proceeds of any offering of shares of our Common Stock, ~~(“Shares”),~~ from cash flows from interest and fees earned from our investments, and from principal repayments and proceeds from sales of our investments. Our primary ~~use~~uses of cash isare investments in portfolio companies, payments of our expenses and cash distributions to our stockholders. As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, we had cash of ~~$24,955,930~~$13,397,892 and ~~$5,506,217,~~$4,289,122, respectively. This “Financial Condition, Liquidity and Capital Resources” section should be read in conjunction with the “COVID-19 Developments” section above.

Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2021 was $1,810,650. This was primarily driven by repayment of bank loans and sales of investments totaling $66,357,177 and $17,331,786, respectively, and was partially offset by investments in portfolio companies. Net cash used in operating activities for the nine months ended September 30, 2020 was $2,424,706. The primary operating activities during this period were investments in portfolio companies. This was partially offset by repayments of bank loans. Net cash used in operating activities for the nine months ended September 30, 2019 was $48,015,173. The primary operating activities during this period were investments in portfolio companies. This was partially offset by repayments of bank loans.

As of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, we had ~~nine~~26 and ~~eighteen~~14 investments, respectively, with unfunded commitments of ~~$2,505,445~~$6,981,786 and ~~$3,878,962,~~$3,676,567, respectively. We believe that, as of both September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, we had sufficient assets to adequately cover any obligations under our unfunded commitments.

The following table summarizes our total portfolio activity during the nine months ended September 30, ~~2020~~2021 and ~~2019:~~2020:

	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Beginning investment portfolio	$	330,874,911		$	264,662,881		$	355,359,843		$	330,874,911
Investments in new portfolio investments		39,542,336			90,412,665			81,669,043			39,542,336
Investments in existing portfolio investments		12,834,005			20,244,318			7,643,513			12,834,005
Principal repayments		(27,907,668	)		(46,240,554	)		(66,357,177	)		(27,907,668	)
Proceeds from sales of investments		(6,437,456	)		(5,017,964	)		(17,331,786	)		(6,437,456	)
Net change in unrealized depreciation on investments		(6,732,122	)		(479,160	)
Net change in unrealized appreciation (depreciation) on investments								2,369,406			(6,732,122	)
Net realized loss on investments		(1,043,096	)		(724,452	)		(450,168	)		(1,043,096	)
Net change in premiums, discounts and amortization		357,873			199,813			538,786			357,873
Investment Portfolio, at Fair Value	$	341,488,783		$	323,057,547		$	363,441,460		$	341,488,783

Financing Activities

Net cash provided by our financing activities for the nine months ended September 30, ~~2020~~2021 was ~~$21,874,419~~$7,298,120 which consisted of $15,100,000 from issuances of ~~3,234,331 Shares~~1,617,822 shares of Common Stock to our stockholders, in connection with our capital calls ~~and our dividend reinvestment program~~ during the period. This was partially offset by ~~$8,125,581~~$7,801,880 of distributions paid to our common stockholders. Net cash provided by our financing activities for the nine months ended September 30, ~~2019~~2020 was ~~$41,693,141 from~~$21,874,419, which consisted of issuances of ~~5,268,913 Shares~~3,234,331 shares of Common Stock to our stockholders, in connection with our capital calls and our dividend reinvestment ~~program~~plan during the period. This was partially offset by ~~$8,306,859~~$8,125,581 of distributions paid to our common stockholders.

Equity Activity

~~On June 23, 2015, an~~An investor made ~~a $140,000,000~~ capital ~~commitment~~commitments to us in the ~~Company. On December 2, 2016,~~amounts set forth below as of the ~~same investor made an additional~~date opposite each capital commitment of $50,000,000. On December 7, 2017, the same investor made an additional capital commitment of $100,000,000. On March 22, 2019, the same investor made an additional capital commitment of $40,000,000. On September 23, 2019, the same investor made an additional capital commitment of $30,000,000. On March 20, 2020, the same investor made an additional capital commitment of $11,200,000. commitment:

Amount		Date
$	140,000,000	June 23, 2015
$	50,000,000	December 2, 2016
$	100,000,000	On December 7, 2017
$	40,000,000	March 22, 2019
$	30,000,000	September 23, 2019
$	11,200,000	March 20, 2020
$	8,900,000	May 28, 2021

As of September 30, ~~2020, $6,200,000 of total~~2021, all the capital commitments ~~remained unfunded~~have been funded by ~~the Company’s~~our investors.

The number of ~~Shares~~shares of our Common Stock issued and outstanding as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, were ~~38,343,577~~39,961,405 and ~~35,109,246,~~38,343,580, respectively.

Distributions to Stockholders – Common Stock Distributions

We have elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC for U.S. federal income tax purposes. As a RIC, we generally are not subject to corporate-level U.S. federal income taxes on ordinary income or capital gains that we timely distribute as dividends for U.S. federal income tax purposes to our stockholders. To qualify to be taxed as a RIC and thus avoid corporate-level income tax on the income that we distribute as dividends to our stockholders, we are required to distribute dividends to our stockholders each taxable year generally of an amount at least equal to 90% of our investment company taxable income, determined without regard to the deduction for any dividends paid. To avoid a 4% excise tax on undistributed earnings, we are required to distribute dividends to our stockholders in respect of each calendar year of an amount at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections) for such calendar year, (ii) 98.2% of our capital gain net income, adjusted for certain ordinary losses, for the one-year period ending October 31 of that calendar year and (iii) any income or capital gains recognized, but not distributed, in preceding calendar years and on which we incurred no federal income tax. We intend to make distributions to stockholders on an annual basis of substantially all of our net investment income. Although we intend to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by our Board of Directors and will largely be driven by portfolio specific events and tax considerations.

We may fund our cash distributions from any sources of funds available, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to us on account of preferred and common equity investments in portfolio companies and fee waivers from our Adviser. Our distributions may exceed our earnings, especially during the period before we have substantially invested the proceeds from an offering. As a result, a portion of the distributions may represent a return of capital for U.S. federal income tax purposes. Thus the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a BDC under the 1940 Act. We declared and paid distributions of $7,801,905, or $0.200 per share during the nine months ended September 30, 2021. We declared and paid distributions of $8,125,607, or $0.215 per share during the nine months ended September 30, 2020. ~~We declared and paid distributions of $8,306,889, or $0.26 per share during the nine months ended September 30, 2019.~~

The determination of the tax attributes of our distributions is made annually at the end of our taxable year, based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, estimates made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. The actual tax characteristics of distributions to stockholders will be reported to stockholders subject to information reporting after the close of each calendar year on Form 1099-DIV.

Related Party Fees

For the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we recorded base management fees of ~~$874,188~~$947,361 and ~~$820,094,~~$874,188, respectively. Offsetting these fees were waivers to the base management fees of ~~$305,966~~$331,576 and ~~$287,033,~~$305,966, respectively, as set forth within the accompanying statements of operations.

For the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we recorded base management fees of ~~$2,697,570~~$2,810,141 and ~~$2,367,188,~~$2,697,570, respectively. Offsetting those fees were waivers to the base management fees of ~~$944,150~~$983,548 and ~~$828,516,~~$944,150, respectively, as set forth within the accompanying statements of operations.

For the three and nine months ended September 30, 2021, we recorded incentive fees of $260,092 and $647,839, respectively. Offsetting these fees were waivers to the incentive fees of $234,083 and $583,056, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2020, we recorded incentive fees of $356,461 and $1,641,419, respectively. Offsetting these fees were waivers to the incentive fees of $320,815 and $1,437,466, respectively, as set forth within the accompanying statements of operations. For the three and nine months ended September 30, 2019, we recorded incentive fees of $680,250 and $1,939,486, respectively. Offsetting these fees were waivers to the incentive fees of $543,178 and $1,553,628, respectively, as set forth within the accompanying statements of operations.

For both the three months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we recorded administrative fees of $62,500, ~~respectively,~~ as set forth within the accompanying statements of operations. For both the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, we recorded administrative fees of $198,750 as set forth within the accompanying statements of operations.

Fees due to related parties as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 on our accompanying statements of assets and liabilities were as follows:

September 30, 2020 December 31, 2019
Net base management fee due to Adviser $ 568,222 $ 569,600
Net incentive fee due to Adviser 35,646 118,536
Total fees due to Adviser, net of waivers 603,868 688,136
Fee due to Administrator, net of waivers 66,250 66,250
Total Related Party Fees Due $ 670,118 $ 754,386

	September 30, 2021		December 31, 2020
Net base management fee due to Adviser	$	615,785	$	597,141
Net incentive fee due to Adviser		26,009		17,703
Total fees due to Adviser, net of waivers		641,794		614,844
Fee due to Administrator, net of waivers		66,250		66,250
Total Related Party Fees Due	$	708,044	$	681,094

Tender Offers

We do not currently intend to list shares of our Common Stock on any securities exchange, and we do not expect a public market for them to develop in the foreseeable future. Therefore, stockholders should not expect to be able to sell their shares of our Common Stock promptly or at a desired price. To provide our stockholders with limited liquidity, we may, in the absolute discretion of our Board of Directors, conduct an annual tender offer. Our tenders for the shares of Common Stock, if any, would be conducted on such terms as may be determined by our Board of Directors and in accordance with the requirements of applicable law, including Section 23(c) of the 1940 Act and Regulation M under the Exchange Act. We have not commenced any tender offers, and we do not currently intend to conduct any tender ~~offers.~~offers in the near future.

CRITICAL ACCOUNTING POLICIES

This discussion of our operations is based upon our financial statements, which are prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. In addition to the discussion below, we describe our critical accounting policies in the notes to our financial statements.

Valuation of Investments

We conduct the valuation of our investments, pursuant to which our net asset value is determined, at all times consistent with GAAP and the 1940 Act. Our Board of Directors, with the assistance of our Audit Committee, determines the fair value of our investments, for investments with a public market and for investments with no readily available public market, on at least a quarterly basis, in accordance with the terms of ASC 820. Our valuation procedures are set forth in more detail below.

The three-level hierarchy for fair value measurement is defined as follows:

Level 1 — Inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. We do not adjust the quoted price for these instruments, even in situations where we hold a large position, and a sale could reasonably be expected to impact the quoted price.

Level 2 — Inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.

Level 3 — Inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs.

Pursuant to the framework set forth above, we value securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. We may also obtain quotes with respect to certain of our investments from pricing services, brokers or dealers’ quotes, or counterparty marks in order to value liquid assets that are not traded in active markets.

Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, we determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, we use the quote obtained.

Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of ~~the~~ our Board of Directors, does not represent fair value, are each valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data are available. These valuation techniques vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Inputs for these valuation techniques include relative credit information, observed market movement, industry sector information, and other market data, which may include benchmarking of comparable securities, issuer spreads, reported trades, and reference data, such as market research publications, when available. The process used to determine the applicable value is as follows:

(i) Each portfolio company or investment is initially valued by the investment professionals of the Adviser responsible for the portfolio investment using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs. Additionally, as a part of our valuation process, the Adviser may employ the services of one or more independent valuation firms engaged by us;

(ii) Preliminary valuation conclusions are documented and discussed with our senior management and members of the Adviser’s valuation team;

(iii) Our Audit Committee reviews the assessments of the Adviser or independent valuation firm (to the extent applicable) and provides our Board of Directors with recommendations with respect to the fair value of the investments in our portfolio; and

(iv) Our Board of Directors discusses the valuation recommendations of our Audit Committee and determines the fair value of the investments in our portfolio in good faith based on the input of the Adviser, the independent valuation firm (to the extent applicable) and in accordance with our valuation policy.

Our Audit Committee’s recommendation of fair value is generally based on its assessment of the following factors, as relevant:

the nature and realizable value of any collateral;

call features, put features and other relevant terms of debt;

the portfolio company’s ability to make payments;

the portfolio company’s actual and expected earnings and discounted cash flow;

prevailing interest rates for like securities and expected volatility in future interest rates;

the markets in which the portfolio company does business and recent economic and/or market events; and

comparisons to publicly traded securities.

Investment performance data utilized are the most recently available as of the measurement date, which in many cases may reflect up to a one quarter lag in information.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include the following:

private placements and restricted securities that do not have an active trading market;

securities whose trading has been suspended or for which market quotes are no longer available;

debt securities that have recently gone into default and for which there is no current market;

securities whose prices are stale; and

securities affected by significant events.

Our Board of Directors is responsible for the determination, in good faith, of the fair value of our portfolio investments.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.

In addition, on December 3, 2020, the SEC announced that it adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The adopted rule clarifies how fund boards can satisfy their valuation obligations in light of recent market developments. The rule permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform the fair value determinations. We will continue to review the adopted rule and its impact on us and our valuation policies and intend to comply with such requirements on or before the SEC’s required compliance date in 2022.

Refer to Note 3 — Investments in the notes to our accompanying financial statements included elsewhere in this quarterly report for additional information regarding fair value measurements and our application of ASC 820.

Revenue Recognition

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, which represents contractual interest accrued and added to the principal balance, we generally will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities for accounting purposes if we have reason to doubt our ability to collect such interest. OID, market discounts or premiums are accreted or amortized using the effective interest method as interest income. We record prepayment premiums on loans and debt securities as interest income.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

We measure net realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

PIK Interest

We may have investments in our portfolio that contain a PIK interest provision. Any PIK interest will be added to the principal balance of such investments and is recorded as income if the portfolio company valuation indicates that such PIK interest is collectible. In order to maintain our status as a RIC, substantially all of this income must be included in the amounts paid out by us to stockholders in the form of dividends, even if we have not collected any cash.

U.S. Income Taxes

We have elected to be subject to tax as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to incur any corporate-level U.S. federal income taxes on any ordinary income or capital gains that we distribute as dividends to our stockholders. To qualify and maintain our qualification as a RIC, we must meet certain source-of-income and asset diversification requirements as well as distribute dividends to our stockholders each taxable year of an amount generally at least equal to 90% of our investment company taxable income, determined without regard to any distributions paid.

Depending on the level of taxable income earned in a taxable year, we may choose to retain taxable income in excess of current year distributions into the next taxable year. We would then incur a 4% excise tax on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year distributions, we will accrue an excise tax, if any, on estimated excess taxable income as taxable income is earned. We did not accrue any excise tax for the fiscal years ended December 31, 2020, 2019, ~~2018,~~ and ~~2017.~~2018.

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

We evaluate tax positions taken or expected to be taken in the course of preparing our financial statements to determine whether ~~the~~any relevant tax positions ~~are~~would “more-likely-than-not” ~~of being~~be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reversed and recorded as a tax benefit or ~~expense~~expensed in the current fiscal year. All penalties and interest associated with any income taxes accrued are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax law, regulations and interpretations thereof. Our accounting policy on income taxes is critical because if we are unable to qualify, or once qualified, maintain our tax status as a RIC, we would be required to record a provision for corporate-level U.S. federal income taxes, as well as any related state or local taxes which may be significant to our financial results.

COMMITMENTS AND CONTINGENCIES

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

Unfunded commitments to provide funds to portfolio companies are not reflected in our accompanying statements of assets and liabilities. Our unfunded commitments may be significant from time to time. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. We use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments. As of September 30, ~~2020,~~2021, we had ~~nine~~26 investments with unfunded commitments of ~~$2,505,445.~~$6,981,786. As of December 31, ~~2019,~~2020, we had ~~eighteen~~14 investments with unfunded commitments of ~~$3,878,962.~~$3,676,567. We believe that, as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, we had sufficient assets to adequately cover any obligations under our unfunded commitments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including changes in interest rates. During the period covered by our financial statements, many of the loans in our portfolio had floating interest rates, and we expect that many of our loans to portfolio companies in the future will also have floating interest rates based on LIBOR or an equivalent risk-free index rate. Interest rate fluctuations may have a substantial negative impact on our investments, the value of our Common Stock and our rate of return on invested capital. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities held by us. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. ~~As of September 30, 2020 and December 31, 2019, all of our investments included variable rates with a minimum guaranteed rate, or floor, and bore interest at the minimum guaranteed rate.~~

In addition, the COVID-19 pandemic has resulted in a decrease in LIBOR and a general reduction of certain interest rates by the U.S. Federal Reserve and other central banks. A continued decline in interest rates, including LIBOR, could result in a reduction of our gross investment income.

Change in interest rates	Increase (decrease) in investment income
Down 300 basis points		(~~208,207~~94,010	)
Down 200 basis points		(~~208,207~~94,010	)
Down 100 basis points		(~~208,207~~94,010	)
Up 100 basis points		~~1,736,360~~1,680,396
Up 200 basis points		~~5,244,849~~5,346,486
Up 300 basis points		~~8,753,338~~9,012,577

Although we believe that this measure is indicative of our sensitivity to interest rate changes, it does not reflect potential changes in the credit market, credit quality, size and composition of the assets on the Consolidated Statements of Assets and Liabilities and other business developments that could affect our net increase in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

In addition, any investments we make that are denominated in a foreign currency will be subject to risks associated with changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market. These risks will vary depending upon the currency or currencies involved.

We may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the period covered by quarterly this report, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness and design and operation of our disclosure controls and procedures. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at a reasonable assurance level in timely alerting management, including the Chief Executive Officer and Chief Financial Officer, of material information about us required to be included in periodic SEC filings. However, in evaluation of the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Changes in Internal Control Over Financial Reporting

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

PART II–OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not currently subject to any material legal proceeding, nor, to our knowledge, is any material legal proceeding threatened against us.

From time to time, we, our Adviser or Administrator may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

From time to time, we are involved in various legal proceedings, lawsuits and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us.

ITEM 1A. RISK FACTORS

In addition to the risks discussed below, important risk factors that could cause results or events to differ from current expectations are described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 filed with the SEC on March ~~17, 2020 as well as our Current Report on Form 8-K filed with the SEC on May 18, 2020.~~19, 2021.

Legislation passed in 2018 allows us to incur additional leverage and would require us to offer liquidity to our stockholders.

Under the 1940 Act, a BDC generally is required to maintain asset coverage of 200% for senior securities representing indebtedness (such as borrowings from banks or other financial institutions) or stock (such as preferred stock). The ~~Small Business Credit Availability Act,~~SBCAA, which was signed into law on March 23, 2018, provides that a BDC’s required asset coverage under the 1940 Act may be reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). This reduction in asset coverage permits a BDC to double the amount of leverage it may utilize, subject to certain approval, timing and reporting requirements, including either stockholder approval or approval of a majority of the directors who are not “interested persons” (as defined in the 1940 Act) of the BDC and who have no financial interest in the arrangement. As a result, if we receive the relevant approval and we comply with the applicable disclosure requirements, we would be able to incur additional leverage, which may increase the risk of investing in us. In addition, since our base management fee is payable based upon our average adjusted gross assets, which includes any borrowings for investment purposes, our base management fee expenses may increase if we incur additional leverage.

We have not commenced any tender offers, and we do not currently intend to conduct any tender offers. As a non-traded BDC, however, if we receive the relevant approval to increase our authorized leverage, we will be required to offer our stockholders the opportunity to sell their ~~Shares~~shares of Common Stock over the next year following the calendar quarter in which the approval was obtained. The timing and method for such offers has not been determined at this time.

Global capital markets could enter a period of severe disruption and instability due to future recessions, political instability, geopolitical turmoil and foreign hostilities, disease pandemics and other serious health events. These market disruptions have historically had and could again have a materially adverse effect on debt and equity capital markets in the United States, which could have a materially adverse impact on our business and financial condition.

The U.S. capital markets have experienced extreme volatility and disruption following the global outbreak of COVID-19. Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets and valuation impacts. Such disruptions are adversely affecting our business, and future market disruptions and/or illiquidity could continue to impact us negatively. These events have limited, and could continue to limit, our investment opportunities, may limit our ability to grow and could negatively impact our operating results and the fair values of our investments.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

~~Not applicable.~~Refer to our Current Report on Form 8-K filed on July 6, 2021 for issuances of our Common Stock during the quarter ended September 30, 2021. Such issuances were exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of the Securities Act and Regulation D thereunder.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

3.1

Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form 10 (File no. 000-55426), filed on April 17, 2015).

3.2

Form of Bylaws (Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form 10 (File no. 000-55426), filed on April 17, 2015).

31.1*

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

31.2*

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.

32.1*

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended (18 U.S.C. 1350).

32.2*

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended (18 U.S.C. 1350).

99.1	Code of Ethics (Incorporated by reference to Exhibit 99.1 to Pre-Effective Amendment No. 1 to the Registration Statement on Form 10, File No. 000-55426, filed on June 5, 2015).

* Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused ~~thisreport~~this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Audax Credit BDC Inc.

Date: November ~~13, 2020~~	12, 2021	By:	/s/ Michael P. McGonigle
			Michael P. McGonigle
			Chief Executive Officer

Date: November ~~13, 2020~~	12, 2021	By:	/s/ Richard T. Joseph
			Richard T. Joseph
			Chief Financial Officer

Three Months Ended September 30, 2019	Common Stock		Capital in Excess of Par Value		Total Distributable (Loss) Earnings			Total Stockholders' Equity
Balance as of March 31, 2019	$	31,950	$	304,182,330	$	(2,512,777	)	$	301,701,503
Net investment income		-		-		4,397,403			4,397,403
Net realized losses from investment transactions		-		-		(826,185	)		(826,185	)
Net change in unrealized appreciation on investments		-		-		182,576			182,576
Issuance of shares		1,589		14,998,411		-			15,000,000
Balance as of June 30, 2019	$	33,539	$	319,180,741	$	1,241,017		$	320,455,297

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company